Slide 1: Introduction to Hostelworld
Introduction to Hos t elw orld
Slide 2: Today's presenters
Introduction to Hostelworld | Slide 1 Today’s presenters Gary Morrison Caroline Sherry Chief Executive Officer Chief Financial Officer
Slide 3: Who we are
Introduction to Hostelworld | Slide 2 Who we are Our global footprint • Online Travel Agent focussed on the hostelling category • 13.7 million reviews and a loyal customer base built up over 22 years • ~17k hostels on our platform across 180 countries • Web (PWA), iOS and Android Apps available in 1
Slide 4: What we do
Introduction to Hostelworld | Slide 3 What we do • Provide a platform for Hostel owners to list their inventory with flexible and non-refundable rate plans • Provide hostellers with a trusted platform to book hostels and to find people to hangout with while travelling o Trustpilot score : 4.7/5 (Exc
Slide 5: We have a highly differentiated growth strategy
Introduction to Hostelworld | Slide 4 We have a highly differentiated growth strategy capitalising on the unique needs of the hostelling category Mainstream OTA customers Hosteller OTA customers HWG Strategy Find/book a hotel as a Find/book a hostel as a means to meet Build differentiated features i
Slide 6: Launching highly differentiated Social features
Introduction to Hostelworld | Slide 5 We are launching a set of highly differentiated Social features to help hostellers find people to hangout with User Profiles “See who else is going” Interest based Chats Linkups - Q2
Slide 7: Substantial progress on rightsizing our cost base
Introduction to Hostelworld | Slide 6 Substantial progress on rightsizing our cost base ... • Headcount reduced from 331 as at March 2020 to 230 in June 2022 -12% vs. FY-19 • Maintained spend in technology and product -25% vs. FY-19 -15% vs. FY-20 enhancements Costs €’M • Modest increase in opex wil
Slide 8: Steps taken to strengthen our balance sheet
Introduction to Hostelworld | Slide 7 … and steps taken to strengthen our balance sheet • FY ‘21 monthly average operating cost cash burn €1.3m • €1.2m AIB short term invoice financing facility repaid in Q1 2021 • €30 million 5-year term facility signed in February 2021: o €28.8m net of arrangement
Slide 9: Confidence returning and pent up demand being released
Introduction to Hostelworld | Slide 8 Clear evidence that confidence is returning and pent up demand is being released Weekly net revenue1, net bookings and net direct margin2 (as a % of 20193) 1 Net revenue excludes the impact of deferred revenue and other adjustments. 2 Net direct margin equals ne
Slide 10: Regional recovery progressing as restrictions ease
Introduction to Hostelworld | Slide 9 Regional recovery progressing as travel restrictions continue to ease Weekly net bookings by destination (as a % of 20191) 1 2019 figures used as pre-covid comparable
Slide 11: All travel segments seeing positive trends
Introduction to Hostelworld | Slide 10 All travel segments seeing positive trends as restrictions are eased Weekly net bookings by trip type (as a % of 20191) 1 2019 figures used as pre-covid comparable Long-haul: source IP continent does not equal destination continent Short-haul: source IP contine
Slide 12: Differentiated business model drives profitable growth as travel recovers
Introduction to Hostelworld | Slide 11 Highly differentiated business model coupled with tight cost control drives profitable growth as travel recovers FY 2019 Trajectory Drivers GMV1 €546m Targeting high LTV customers Net Revenue2 €81.1m Reduced commission rates for hostel partners Increased spend
Slide 13: Clear strategic priorities for FY22
Introduction to Hostelworld | Slide 12 We have clear strategic priorities for FY22 … • Continued investment in our core business through focused investments in marketing capabilities, user experience improvements, inventory competitiveness and platform modernisation • Iterating on Social features –
Slide 14: Summary and outlook
Introduction to Hostelworld | Slide 13 Summary and outlook • Strong brand recognition across hostellers and hostel owners • Asset light and highly cash generative business model • Highly differentiated growth strategy in place, capitalising on the unique needs of the hostelling category to grow reve
Slide 15: Key upcoming dates
Introduction to Hostelworld | Slide 14 Key upcoming dates • Trading update July 12th • Interim results August 10th • Investor day Q4 ‘22
Slide 16: FY 2021 Financial Information
Introduction to Hos t elw orld FY 2021 Financial Information
Slide 17: FY 2021 – Financial Summary
Introduction to Hostelworld | Slide 16 FY 2021 – Financial Summary Net Bookings Operating Costs1 1.5m +0% VS FY20 €20.9m -15% VS FY20 -79% VS FY19 -25% VS FY19 Net Revenue EBITDA €16.9m +10% VS FY20 - €17.3m FY20: -€17.3M -79% VS FY19 FY19: +€20.5M Net ABV Cash2 €12.11 +30% VS FY20 €25.3m Dec’20: €1
Slide 18: Income Statement
Introduction to Hostelworld | Slide 17 Income Statement •Net revenue increased by 10% to €16.9m (FY20: €15.4m). The Group's net booking volumes for FY21 were in line with FY20. •Within administration expenses: o Direct marketing costs increased to €12.8m (2020: €7.5m) o Remaining administration expe
Slide 19: Balance Sheet
Introduction to Hostelworld | Slide 18 Balance Sheet • Property, plant and equipment decrease from €4.5m to €0.3m, Group exited long-term lease commitments in Dublin and London offices, decrease in related current and non- current lease liabilities. • Reduced carrying value of Investment in associat
Slide 20: Cash Flow Statement
Introduction to Hostelworld | Slide 19 Cash Flow Statement •Adjusted EBITDA loss €17.3m in line year on year. • €4.8m increase in working capital movement due to: o €5.1m increase in trade and other payables (Irish payroll taxes payable has increased by €4.1m in 2021 and €0.8m increase in deferred r
Slide 21: Disclaimer
Introduction to Hostelworld | Slide 20 Disclaimer • NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO ANY JURISDICTION IN WHICH SUCH DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL. • This presentation has been prepared by Hostelworld Group plc (the “Company") for informatio