Slide 1: Full Year Results
Full Year Results Fiscal Year 2017 FY Results, ending March 31st 2017 June 27th 2017
Slide 2: Disclaimer
FY 2017 Results Presentation Disclaimer This presentation is to be read as an introduction to the unaudited consolidated 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 presenta
Slide 3: Full Year Results Highlights
Full Year Results Highlights • Financial Analysis • Strategy Update and Outlook • Appendix
Slide 4: Results Highlights
FY 2017 Results Presentation RESULTS HIGHLIGHTS Solid results with growth in bookings, revenue margin & adjusted EBITDA Strong cash flow Cash position stood at €143.5 million, up 9% y-on-y Group continues to deleverage its business $ Net leverage Ratio reduced from 3.43 to 2.66 times in the past 12
Slide 5: Solid results, above initial and raised guidance
FY 2017 Results Presentation SOLID RESULTS, results above initial and raised guidance Bookings Revenue Margin Adjusted EBITDA In thousands In € million In € million +9% +5% +12% 107.3 +10% +6% +6% 11,653 486.6 95.8 10,675 463.3 90.5 9,724 436.0 FY 2015 FY 2016 FY 2017 FY 2015 FY 2016 FY 2017 FY 2015
Slide 6: Strategy delivering good growth in adjusted EBITDA
FY 2017 Results Presentation STRATEGY DELIVERING GOOD GROWTH IN ADJUSTED EBITDA Adjusted EBITDA evolution +18% YoY variation 15% Change in Management +12% +12% FY 2017 10% +6% 5% 0% +9% Bookings -5% -10% -15% % Growth normalised for no bonus payment FY 2015. 100% accrual in FY 2016 +5% % Growth norm
Slide 7: Flight and non-flight bookings
FY 2017 Results Presentation FLIGHT AND NON-FLIGHT BOOKINGS Revenue diversification drives growth in Flight Business and Non-flight improving Flight - Bookings Flight In ‘000 ▪ Progress in strategic initiatives have boosted our performance and they have also set us the path for longer term growth 9,
Slide 8: Flight and non-flight revenue margin
FY 2017 Results Presentation FLIGHT AND NON-FLIGHT REVENUE MARGIN Positive growth in flight and non-flight products Flight Flight – Revenue Margin ▪ In FY 2016, revenue growth was driven by our continued efforts to improve product, re-orient price and channel performance In € million ▪ In FY 2017, r
Slide 9: Core and expansion bookings
FY 2017 Results Presentation CORE AND EXPANSION BOOKINGS Solid Growth in Core and Expansion markets due to diversification strategy Core- Bookings Core In ‘000 ▪ In FY 2016, bookings trend continued to improve, with growth in flight business mainly in Spain and Italy, trend that continues and improv
Slide 10: Core and expansion revenue margin
FY 2017 Results Presentation CORE AND EXPANSION REVENUE MARGIN Positive growth in our Core and Expansion markets Core – Revenue Margin Core In € million ▪ In FY 2016, we had a significant improvement in the 255.9 255.1 270.1 revenue trajectory toward the end of FY 2016, which continues in FY 2017. ▪
Slide 11: Q4 FY 2017 - Flight and non-flight
FY 2017 Results Presentation Flight Q4 FY 2017 - FLIGHT AND NON-FLIGHT Non-Flight Strategic initiatives on track and delivering results Bookings Flight In ‘000 ▪ Progress in strategic initiatives has boosted our performance and positioned us well for longer term growth 2,626 2,938 ▪ Revenue margin d
Slide 12: Q4 FY 2017 - Core and expansion
FY 2017 Results Presentation Core Q4 FY 2017 – CORE AND EXPANSION Expansion Solid Performance in Core and Expansion Markets Bookings Core In ‘000 ▪ Strategic initiatives on track and delivering results, bookings performance driven by: 1,427 1,579 1,430 1,570 – Our diversification strategy – Investme
Slide 13: Financial Analysis
Financial Analysis • Full Year Results Highlights • Strategy Update and Outlook • Appendix 13
Slide 14: Income statement
FY 2017 Results Presentation INCOME STATEMENT Var. Var. Key highlights FY 2017 FY 2015 FY 2016 FY 2017 16 vs 15 17 vs 16 (In € million) In FY 2017, main YoY evolutions reflect: ▪ Revenue margin increase by 5% Revenue margin 436.0 463.3 486.6 6% 5% ▪ Variable Costs flat despite the increase of bookin
Slide 15: Cash flow statement
FY 2017 Results Presentation CASH FLOW STATEMENT FY 2015 FY 2016 FY 2017 Key highlights FY 2017 (In € million) In FY 2017, main YoY evolutions reflect: Adjusted EBITDA 90.5 95.8 107.3 ▪ Cash flow from operations increased by €53.1 million: Non recurring items (16.0) (10.5) (9.3) – Increased adj. EBI
Slide 16: Working capital evolution
FY 2017 Results Presentation WORKING CAPITAL EVOLUTION Industry change Performance to offset in advance Back in 2015, IATA approved regulations to increase In order to balance the negative effect on our frequency of remittance in 2 markets in which we working capital, we have executed during FY17 a
Slide 17: Successful deleverage of our business and debt refinancing
FY 2017 Results Presentation SUCCESFUL DELEVERAGE OF OUR BUSINESS AND DEBT REFINANCING Gross Leverage Ratio Refinancing highlights (Total Gross Financial Debt1 / LTM Adjusted EBITDA) ▪ Net leverage ratio down from 3.43x in March 2016 to 7 2.66x in March 2017 6 x LTM Adj. EBITDA 5 2.0x – Gross Levera
Slide 18: Strategy Update and Outlook
Strategy Update and Outlook • Full Year Results Highlights • Financial Analysis • Appendix 18
Slide 19: Successful transformation journey focusing on the customer and scale
FY 2017 Results Presentation STRATEGY UPDATE Our performance over the past two years has been driven by a successful transformation journey focusing on the customer and developing scale Dana Dunne Appointed CEO Phase III (FY18-20) Leverage market leadership Phase 2 (FY16-17) with sustainable revenue
Slide 20: Strong improvements as we continue to invest to build a great business
FY 2017 Results Presentation We have shown strong improvements as we continue to invest to build a great business 1 World class product development and technology 6 2 Stronger Marketing customer excellence centric 5 3 Strong Revenue management 4 diversifying Leader in mobile 20
Slide 21: Strong value and choice for customers
FY 2017 Results Presentation STRATEGY UPDATE - CUSTOMER We provide to customers strong value and choice, in the most convenient way We make it <100 seconds for users to book a direct flight easiest to book We give They can 8 vs 3 customers the customize every >1,000 direct flight best choice element
Slide 22: Scale balanced by agility to execute rapidly
FY 2017 Results Presentation STRATEGY UPDATE - TECHNOLOGY Our scale is balanced by a high level of agility to execute on ideas rapidly and cost efficient 50 1,000 15 A/B minutes tests agile teams releases p.a. best case delivery 3,600 simultaneous of top development time from develop- A/B tests poss
Slide 23: Innovation in product and services
FY 2017 Results Presentation STRATEGY UPDATE - PRODUCT Our innovation in product and services is offering a greater booking experience to our customers FY 2017 – Product Launches Inspire Compare Order and Search Pre-travel Travel Post-travel and plan and select confirm Free cancellation Location hea
Slide 24: Machine learning to identify profitable opportunities
FY 2017 Results Presentation STRATEGY UPDATE – CASE STUDY MACHINE BASE LEARNING Through Machine Learning we leverage data assets to better identify & take advantage of profitable opportunities Applying machine learning delivered significant What is machine learning? improvement: Real example Cost pe
Slide 25: Customer database, CRM, mobile and app services
FY 2017 Results Presentation STRATEGY UPDATE - CRM Our large customer database and the use of our CRM, Mobile and app services, including push notifications boosted performance Customer database 15M 15M 78% 78% 4.5x4.5x reachable reachable of customers of customers get get increases increases in boo
Slide 26: Improvements on our mobile apps boosted performance
FY 2017 Results Presentation STRATEGY UPDATE - MOBILE Improvements on our Mobile Apps boosted performance Repeat rate Bookings App rating 75% +30% 4+ +5% Attach Rate +5% conversion +30% usage +0.8 stars Apps improvements boost performance via… Insurance Payment Searches Ratings • Insurance screen •
Slide 27: Revenue diversification: non-flight and ancillary products
FY 2017 Results Presentation REVENUE DIVERSIFICATION Our diversification strategy is delivering positive results through the offering of non-flight and new ancillary products FY 16 FY 17 Ancillaries Products Dynamic +18% +13% Packages DOUBLED DOUBLING -3% +10% IN AGAIN Hotels FY 2017 IN Cars +31% +1
Slide 28: European travel market business opportunity
FY 2017 Results Presentation REVENUE DIVERSIFICATION European travel market offers a €219bn business opportunity for revenue diversification European travel market – Gross Bookings, Billion Euros 354 288 38% €219bn 30% 18% 10% 4% 2014 2020 Flights Hotels Holiday Rail Car rental packages Total SOURCE
Slide 29: Acquisition of budgetplaces.com
FY 2017 Results Presentation REVENUE DIVERSIFICATION In line with our revenue diversification strategy we recently acquired budgetplaces.com to reinforce the building of our dynamic packages Rational of the acquisition Platform: Allows us to accelerate our plan by not Faster time to having to buil
Slide 30: Performance indicators for revenue diversification
FY 2017 Results Presentation PERFORMANCE INDICATORS The results of our revenue diversification strategy are being monitored in a series of performance indicators Revenue diversification ratio Product diversification ratio Acquisition cost per booking index Repeat booking Share of mobile bookings 30
Slide 31: Growing share of revenues from diversification
FY 2017 Results Presentation REVENUE DIVERSIFICATION - PERFORMANCE INDICATORS Growing share of revenues coming from our diversification strategy Revenue diversification ratio Revenue split; Percent Diversification revenues Classic Supplier revenues Revenue diversification ratio; Percent Classic cust
Slide 32: Higher attachments per booking
FY 2017 Results Presentation REVENUE DIVERSIFICATION - PERFORMANCE INDICATORS Increasing ability to add value to a customers booking through higher attachments Product diversification ratio; Percent 45% Product diversification ratio 39% Q4 ‘16 Q4 ‘17 Product Diversification Ratio (%) is a ratio expr
Slide 33: Decreasing acquisition cost
FY 2017 Results Presentation REVENUE DIVERSIFICATION - PERFORMANCE INDICATORS Decreasing acquisition cost v. index of Q4 FY 15 before start of transformation Acquisition cost per booking Index 100 85 78 Acquisition cost per booking index Acquisition Cost per Booking Index refers to the most relevant
Slide 34: Stable repeat rates
FY 2017 Results Presentation REVENUE DIVERSIFICATION - PERFORMANCE INDICATORS Stable repeat rates with positive YoY Customer repeat booking rate; Percent, annualised view 56% 50% Repeat booking Q4 ‘16 Q4 ‘17 Customer Repeat Booking Rate (%) refers to the ratio, expressed on a percentage basis, of Bo
Slide 35: Strong growth in mobile bookings
FY 2017 Results Presentation REVENUE DIVERSIFICATION - PERFORMANCE INDICATORS Strong growth in Mobile Bookings Share of flight Mobile bookings; as a percentage of flight bookings EU industry average 40% 35% 30% 30% 24% Gap vs Industry 25% +9pp Average 18% +7pp 20% 15% +5pp 10% 10% 21% 17% 5% 10% 13%
Slide 36: Outlook Statement Targets for FY 2018
FY 2017 Results Presentation FY 2018 TARGETS Outlook Statement Targets for FY 2018 We will continue to invest to build long-term highly attractive business: ▪ Evolving our pricing and communication of that pricing ▪ Offering an exciting range of innovative products and services as a one-stop Booking
Slide 37: Our financial strategy is in line with these choices
FY 2017 Results Presentation OUR VISION - LONGER TERM TARGETS Our financial strategy is in line with these choices We will control the transformation pace to continue Long-term target of EUR 125-140m to grow absolute EBITDA EBITDA by 2020 We expect a period of softer top-line performance More ro
Slide 38: In summary
FY 2017 Results Presentation In summary… World-class product Customer value Growing market Industry structure and technology Mobile leader Scale Market leadership Investment Results 38
Slide 39: eDreams ODIGEO
eDreams ODIGEO
Slide 40: Strategic progress - FY 2017
FY 2017 Results Presentation Strategic progress - FY 2017 1 2 3 4 5 6 Customer Lean and Revenue Culture and Traffic Source Mobile Experience Nimble diversifica- talent tion Bookings grew Mobile bookings Over 40% 50 agile teams Revenue Acquisition of by 9% while accounted for reduction in diversifica
Slide 41: Quarterly income & cash flow statement
FY 2017 Results Presentation QUARTERLY INCOME & CASH FLOW STATEMENT Income Statement Cash Flow Statement 3M Mar 3M Mar 3M Mar 3M Mar FY16 FY17 Var. (In € million) FY16 FY17 (In € million) Adjusted EBITDA 31.7 31.5 Revenue margin 129.4 136.9 6% Non recurring items (3.4) (2.4) Variable costs (78.8) (8