Edreams Odigeo · BME:EDR
Edreams Odigeo — 3Q FY2022 Earnings Presentation
24 slides from Edreams Odigeo's earnings presentation, Feb 25, 2022
Slide 1: Results Presentation 3Q FY2022
RESULTS PRESENTATION 3Q FY2022 25th February 2022
Slide 2: Disclaimer
Disclaimer This presentation is to be read as an introduction to the unaudited condensed consolidated interim financial statements of the Group and contains key information presented in a concise manner on the Group and its financial condition. The information contained in this presentation is extra
Slide 3: 1. Overview
1. Overview 3Q FY22 Results Update Closing remarks Appendix
Slide 4: eDO achieves strong performance even with Omicron
eDO ACHIEVES STRONG PERFORMANCE EVEN WITH OMICRON 1 eDO STRONG BOOKINGS GROWTH & AHEAD OF PRE-COVID LEVELS ▪ In 3Q FY22, Bookings 26% above pre-COVID levels (in 9M FY22, Bookings already 7% above pre-COVID) ▪ Despite softening of trading due to Omicron variant, trading continued to be in line or abo
Slide 5: eDO strong bookings growth, despite Omicron and a not fully recovered market
eDO STRONG BOOKINGS GROWTH, DESPITE OMICRON AND A NOT FULLY RECOVERED MARKET 1 eDO BOOKINGS GROWTH VS 2019 Impacted by Omicrom variant STRONG DESIRE FOR CONSUMERS TO 44% TRAVEL 32% 31% 33% 30% 6% 2% PRIME PROGRAM DRIVING STRONG BOOKINGS GROWTH -2% -11% -26% STRONG eDO PERFORMANCE -51% April '21 May
Slide 6: eDO superior value proposition leading to outperforming the industry
eDO SUPERIOR VALUE PROPOSITION LEADING TO OUTPERFORMING THE INDUSTRY 1 Trading evolution vs. pre-COVID, % eDO +67pp vs. IATA +52pp vs. Low Cost 6
Slide 7: Pent-up demand - European consumers have saved almost 1 trillion euros
PENT-UP DEMAND - EUROPEAN CONSUMERS HAVE SAVED ALMOST 1 TRILLION EUROS DURING 1 THE PANDEMIC (*) In ordinary times, Europeans save around 12 percent of their income. But as families stayed at home and furlough schemes supported income during the pandemic, this savings rate increased sharply to almos
Slide 8: 3 in 5 Europeans plan to travel in the next six months despite Omicron
3 IN 5 EUROPEANS (*) PLAN TO TRAVEL IN THE NEXT SIX MONTHS DESPITE OMICRON 1 Likely/ very likely to travel* per main eDO country The European Travel Commission initiated a market research in September 2020 to monitor sentiment and Spain France short-term intentions for domestic and intra-European 76
Slide 9: Prime continues to grow strongly even with Omicron, reaching 2.4 million
PRIME CONTINUES TO GROW STRONGLY EVEN WITH OMICRON. IN FEBRUARY WE 1 REACHED 2.4 MILLION MEMBERS EVOLUTION OF PRIME MEMBERS AND ARPU eDO is inventor and leader of subscription in IN ● travel with over 4 years of investment FEBRUARY (*) ● In the 12 months to December 2021 our subscribers grew by 186%
Slide 10: Revenue diversification on track and continued mobile leadership
REVENUE DIVERSIFICATION ON TRACK AND THE LARGEST CONTRIBUTOR TO REVENUES 1 AND WE CONTINUE TO LEAD IN MOBILE REVENUE DIVERSIFICATION RATIO (*) (**) MOBILE BOOKINGS AS SHARE OF FLIGHT BOOKINGS (*) (**) +20 +12 pp pp 54% 71% 51% 42% 55% 51% 3Q FY20 3Q FY21 3Q FY22 3Q FY20 3Q FY21 3Q FY22 (*) Definitio
Slide 11: 2. 3Q FY22 Results Update
Overview 2. 3Q FY22 Results Update Closing remarks Appendix
Slide 12: Highlights 3Q FY22 - Income Statement
INCOME STATEMENT 2 Highlights 3Q FY22 VAR. VAR. 3Q 3Q 9M 9M 1. Revenue Margin increased by 218%, to €95.4 million, due to the (IN EUROS MILLION) FY22 FY22 FY22 VS FY21 FY21 FY22 VS FY21 FY21 264% increase in Bookings which was partly offset by a decrease in Revenue Margin per Booking of 13%. REVENUE
Slide 13: New KPIs disclosed: Prime cash revenue margin and marginal profit
NEW KPIS DISCLOSED: STRONG GROWTH IN PRIME CASH REVENUE MARGIN AND MARGINAL 2 PROFIT IN THE LAST 12 MONTHS DUE TO STRONG GROWTH IN PRIME MEMBERS AND ARPU ARPU LTM (€) (*) Cash Revenue Margin LTM (€M) (*) Cash Marginal Profit LTM (€M) (*) 329 88.5 89 133 +58% 40% +41% 47 53% 208 63 57.6 19 18% 37 196
Slide 14: eDO cash EBITDA also accelerating due to strong growth in Prime members
eDO CASH EBITDA ALSO ACCELERATING DUE TO STRONG GROWTH IN PRIME MEMBERS 2 P&L WITH INCREASE IN PRIME DEFERRED REVENUE ● In FY21, the increase in deferred revenue driven by Prime amounted to €10.7 million euros, a 91% increase year-on-year. In FY22 this growth has accelerated driven by strong growth
Slide 15: Highlights 3Q FY22 - Cash Flow Statement
CASH FLOW STATEMENT 2 Highlights 3Q FY22 3Q 3Q 9M 9M (IN EUROS MILLION) 1. Net cash from operating activities decreased by €43.1 million, FY22 FY21 FY22 FY21 mainly reflecting: ADJUSTED EBITDA (*) (0.7) (10.4) 0.0 (27.3) • Working capital outflow of only €22.9 million, despite Omicron, compared to a
Slide 16: Successfully executed on the optimisation of our capital structure
SUCCESSFULLY EXECUTED ON THE OPTIMISATION OF OUR CAPITAL STRUCTURE 2 FINANCIAL STABILITY TO EXECUTE ON OUR BUSINESS PLAN AND DELIVER ON FY25 TARGETS EQUITY DEBT • Raised €75 million of primary equity • Reduced the size of the existing bond from enabled by inbound investor demand €425 to €375 million
Slide 17: 3. Closing remarks
Overview 3Q FY22 Results Update 3. Closing remarks Appendix
Slide 18: Closing remarks
CLOSING REMARKS 3 Overall we continue to outperform the market, gaining market share. In the past 3 months we remain 52 to 67pp ahead of the LCCs and IATA, respectively. Even with Omicron our Q3 bookings were 26% increased vs pre COVID-19 levels, and in February to date we have had our strongest eve
Slide 19: 4. Appendix
Overview 3Q FY22 Results Update Closing remarks 4. Appendix
Slide 20: Diversification revenue continues as the largest contributor
DIVERSIFICATION REVENUE CONTINUES AS THE LARGEST CONTRIBUTOR 4 DIVERSIFICATION REVENUE MARGIN Var. (IN EUROS MILLION) 9M FY22 9M FY21 FY22 vs FY21 DIVERSIFICATION 190.8 304% 47.3 304% CLASSIC CUSTOMER 190.8 28.1 16% 24.3 CLASSIC SUPPLIER 39.2 516% 6.4 ADVERTISING & META 5.6 83% 3.0 47.3 TOTAL 263.7
Slide 21: Revenue diversification continues to expand beyond top 6
REVENUE DIVERSIFICATION CONTINUES TO EXPAND BEYOND TOP 6 4 TOP 6 REVENUE MARGIN Var. (IN EUROS MILLION) 9M FY22 9M FY21 FY22 vs FY21 TOP 6 198.1 218% 62.4 218% 198.1 REST OF THE WORLD 65.6 252% 18.6 TOTAL 263.7 226% 81.0 62.4 9M FY21 9M FY22 REST OF THE WORLD 12% 23% 25% 9M 9M 9M 252% FY15 FY21 FY22
Slide 22: Glossary of Definitions
Glossary of Definitions Non-reconcilable to GAAP measures 1. Gross Bookings refers to the total amount paid by our customers for travel products and services booked through or with us (including the part that is passed on to, or transacted by, the travel supplier), including taxes, service fees and
Slide 23: Glossary of Definitions
Glossary of Definitions 15. Cash Revenue Margin means the IFRS revenue less cost of supplies, plus the variation of the Prime deferred revenue corresponding to the Prime fees that have been collected and that are pending to be accrued. The Prime fees pending to be accrued are non-refundable and will
Slide 24: Glossary of Definitions
Glossary of Definitions 19. Revenue Margin means the IFRS revenue less cost of supplies. The Group's management uses Revenue Margin to provide a measure of its revenue after reflecting the deduction of amounts payable to suppliers in connection with the revenue recognition criteria used for products