Edreams Odigeo · BME:EDR
Edreams Odigeo — H1 FY2017 Earnings Presentation
32 slides from Edreams Odigeo's earnings presentation, Nov 18, 2016
Slide 1: First Half Results
First Half Results Fiscal Year 2017 H1 Results, ending September 30th 2016 November 18th 2016
Slide 2: Disclaimer
FY 2017 First Half Results Disclaimer Certain statements included or incorporated by reference within this presentation may constitute “forward-looking statements” in respect of the Group’s operations, performance, prospects and/or financial condition and the industry in which the Group operates.
Slide 3: 6 Months Results Highlights
6 Months Results Highlights • Financial Analysis • Strategy Update and Outlook • Appendix
Slide 4: Results Highlights
FY 2017 H1 Results Presentation RESULTS HIGHLIGHTS Solid results with growth in bookings, revenue margin & adjusted EBITDA, all in line with full year guidance Successful debt refinancing $ ▪ Group successfully refinanced 2018 and 2019 Notes Solid cash flow ▪ Cash position stood at €110million, up 3
Slide 5: Solid Results
FY 2017 H1 Results Presentation SOLID RESULTS Bookings Revenue Margin Adjusted EBITDA In thousands In € million In € million +8% +4% +22% 5,826 230.8 241.0 44.4 54.1 5,381 6M 6M 6M 6M 6M 6M SEPT 2015 SEPT 2016 SEPT 2015 SEPT 2016 SEPT 2015 SEPT 2016 | Source: Consolidated financial statements, audit
Slide 6: Strategy Delivering Good Growth in Adjusted EBITDA
FY 2017 H1 Results Presentation STRATEGY DELIVERING GOOD GROWTH IN ADJUSTED EBITDA Adjusted EBITDA evolution YoY variation 30% Change in +22% H1 Management +12% +8% 20% 10% +6% Bookings +4% 0% -10% % Growth normalised for no bonus payment FY 2015. 100% accrual Revenue Margin in FY 2016 -20% -30% -24
Slide 7: Flight and Non-Flight Bookings
FY 2017 H1 Results Presentation FLIGHT AND NON-FLIGHT BOOKINGS Solid Growth in Flight Business and Non flight Improving Flight - Bookings Flight In ‘000 5,328 +9% 4,896 ▪ Progress in strategic initiatives has delivered solid growth in bookings. 2,516 2,655 +6% ▪ Softening in booking growth in Q2 FY
Slide 8: Flight and Non-Flight Revenue Margin
FY 2017 H1 Results Presentation FLIGHT AND NON-FLIGHT REVENUE MARGIN Revenue diversification strategy driving growth in non-flight products Flight – Revenue Margin Flight In € million 183.5 189.0 +3% ▪ Revenue margin performance driven by: – Bookings, already explained in previous slide. 92.7 -2% 90
Slide 9: Core and Expansion Bookings
FY 2017 H1 Results Presentation CORE AND EXPANSION BOOKINGS Solid performance in all our Core markets Core- Bookings Core In ‘000 3,027 +10% 2,748 ▪ Solid performance in the Core bookings in the first half of FY 2017, growth driven by: +8% 1,392 1,510 – Solid growth rates in flight business – Growth
Slide 10: Core and Expansion Revenue Margin
FY 2017 H1 Results Presentation CORE AND EXPANSION REVENUE MARGIN Positive growth in all our Core markets Core – Revenue Margin Core In € million 127.6 136.4 +7% ▪ Solid performance in the Core revenue margin in the first half of FY 2017, growth driven by: 63.4 66.1 +4% – All 3 markets, and in parti
Slide 11: Financial Analysis
Financial Analysis • 6 Months Results Highlights • Financial Analysis • Strategy Update and Outlook • Appendix 11
Slide 12: Income Statement
FY 2017 H1 Results Presentation INCOME STATEMENT Q2 Q2 H1 H1 Key highlights YTD Var. Var. Sep-15 Sep-16 Sep-15 Sep-16 (In € million) Over the second quarter, main YoY evolutions reflect: Revenue margin 116.9 116.8 (0)% 230.8 241.0 4% ▪ Variable Costs decrease by 5% despite the Variable costs (77.5)
Slide 13: Adjusted Net Income
FY 2017 H1 Results Presentation ADJUSTED NET INCOME Q2 Q2 H1 H1 Var. Var. Sep-15 Sep-16 Sep-15 Sep-16 (In € million) Net income 4.2 4.3 0% 4.9 11.9 143% Non-recurring items 1.7 2.6 55% 4.2 3.9 (6)% Impairment of Corporate Travel assets - 1.5 N.A. - 1.5 N.A. Impact of the change of UK income tax rate
Slide 14: Cash Flow Statement
FY 2017 H1 Results Presentation CASH FLOW STATEMENT Q2 Q2 H1 H1 Key highlights (In € million) Sep-15 Sep-16 Sep-15 Sep-16 Over the quarter, main YoY evolutions reflect: Adjusted EBITDA 22.0 25.1 44.4 54.1 ▪ Cash flow from operations increased by €11.3 million: Non recurring items (2.1) (2.2) (5.5) (
Slide 15: Successful Debt Refinancing
FY 2017 H1 Results Presentation SUCCESFUL DEBT REFINANCING Pro Forma Total Debt Coverage Ratio Refinancing highlights (Total Gross Debt1 / LTM EBITDA) ▪ Refinancing closed in October 2016 7 6 ▪ Full repayment of 2018 Notes and 2019 Notes, issuance x LTM Adj. EBITDA 5 2.0x of 2021 Notes 4 ▪ Increase
Slide 16: Strategy Update and Outlook
Strategy Update and Outlook • 6 Months Results Highlights • Financial Analysis • Strategy Update and Outlook • Appendix 16
Slide 17: Performance Driven by a Successful Transformation
FY 2017 H1 Results Presentation OUR VISION OUR PERFORMANCE OVER THE PAST 18 MONTHS HAS BEEN DRIVEN BY A SUCCESSFUL TRANSFORMATION JOURNEY FOCUSED ON THE CUSTOMER AND DEVELOPING SCALE Change in Management Phase III (FY18-20) Leverage market leadership Now (FY16-17) with sustainable revenue Accelerate
Slide 18: Transformation Put Foundations in Place for Customer Experience at Scale
FY 2017 H1 Results Presentation OUR VISION OUR TRANSFORMATION PUT FOUNDATIONS IN PLACE TO DELIVER A STRONG CUSTOMER EXPERIENCE, AT SCALE From To • Highly dependent on Google • Large reduction in Google reliance Marketing • Insufficient focus on world-class efficiency • Dramatic improvement in non-pa
Slide 19: The Market Is Evolving As Customer Needs Change
FY 2017 H1 Results Presentation OUR VISION THE MARKET IS EVOLVING AS CUSTOMER NEEDS CHANGE 36% see transparency as a key decision factor Clear and transparent pricing 53% abandon bookings upon seeing final price Rest of market Access to a wide range 65% want to buy on a single online platform of pro
Slide 20: We Are One of the First to Change in Response to These Needs
FY 2017 H1 Results Presentation OUR VISION WE ARE ONE OF THE FIRST TO CHANGE IN RESPONSE TO THESE NEEDS Our response Evolving our pricing and the communication Clear and of that pricing transparent pricing Rest of market Access to a wide range Offering an exciting of products and services range of i
Slide 21: We Expect a Short-Term Softening of Topline Performance
FY 2017 H1 Results Presentation OUR VISION WE EXPECT A SHORT-TERM SOFTENING OF TOPLINE PERFORMANCE Now Future Traffic Conversion Repeat rate Attach rate Marketing spend per booking Decrease in traffic Increase in conversion Uplift in repeat rate as Increase in attach rate Reduction in marketing as s
Slide 22: Our Financial Strategy Is in Line with These Choices
FY 2017 H1 Results Presentation OUR VISION 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 robust revenue profil
Slide 23: Outlook 2016-17 Reiterated
FY 2017 H1 Results Presentation OUTLOOK 2016-17 REITERATED Outlook Targets for 2016-17 ▪ Focus on increasing the profitability of the business Bookings – Reduce areas in which we are not as profitable and not strategic to long term success In excess of 10.7 million ▫ We recently sold the corporate t
Slide 24: Appendix
Appendix • 6 Months Results Highlights • Financial Analysis • Strategy Update and Outlook • Appendix 24
Slide 25: KPI Historic Evolution – eDreams ODIGEO
FY 2017 H1 Results Presentation KPI HISTORIC EVOLUTION – eDreams ODIGEO PF FY PF PF PF PF FY FY YTD YTD 2013/14 jun-14 sep-14 dec-14 mar-15 2014/15 jun-15 sep-15 dic-15 mar-16 2015/16 jun-16 sep-16 Sep-15 Sep-16 Number of bookings (in '000) Total 9,834 2,510 2,453 2,133 2,629 9,724 2,618 2,763 2,437
Slide 26: Variable and Fixed Costs
FY 2017 H1 Results Presentation VARIABLE AND FIXED COSTS Variable costs per booking 35 ▪ Variable costs lower compared to last year as a result of our 29.0 28.5 30 28.0 26.8 27.6 pricing and marketing optimization strategies in € per booking 25 26.0 ▪ Fixed costs per booking slightly below last year
Slide 27: Balance Sheet - Highlights
FY 2017 H1 Results Presentation BALANCE SHEET - HIGHLIGHTS (In € million) Sep-15 Sep-16 Key Highlights Goodwill 727.2 721.4 Main changes vs. Sep15 to: Other fixed assets 297.0 305.9 Total fixed assets ▪ Assets related to the Corporate Travel Business in Nordics 1,024.3 1,027.3 and Germany have been
Slide 28: Working Capital - Highlights
FY 2017 H1 Results Presentation WORKING CAPITAL - HIGHLIGHTS Quarterly working capital Sep.15 Dec.15 Mar.16 Jun.16 Sep.16 - (50) (100) (189.7) (236.1) in € million (250.4) (251.9) (249.2) (150) (200) (28.5) (218.2) (250) (29.5) (26.2) (25.2) (24.1) (265.6) (276.6) (277.1) (273.3) (300) Working capit
Slide 29: Net Debt Information
FY 2017 H1 Results Presentation NET DEBT INFORMATION Net debt excl. capitalization of financing costs Sep.15 Dec.15 Mar.16 Jun.16 Sep.16 ▪ Undrawn revolving credit facility end of September - (50) 2016 (100) In € million (150) (200) (250) (300) (350) (329.7) (339.3) (331.3) (400) (362.2) (450) (408.
Slide 30: Net Debt Analysis
FY 2017 H1 Results Presentation NET DEBT ANALYSIS PF Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Sep-16 2021 Notes - - - - - (435.0) 2019 Notes (129.0) (129.0) (129.0) (129.0) (129.0) - 2018 Notes (325.0) (325.0) (325.0) (295.0) (295.0) - Revolving Credit Facilities - - - - 0.0 - Accrued interest (9.6) (12.4
Slide 31: Non-Recurring Items Breakdown
FY 2017 H1 Results Presentation NON-RECURRING ITEMS BREAKDOWN Q2 Q2 H1 H1 Sep-15 Sep-16 Sep-15 Sep-16 LTI plan 0.6 1.9 1.2 3.6 Exceptional consultancy fee - - 1.3 - 0.5 - 0.8 0.0 Restructuring costs 0.6 0.2 1.0 0.4 Selective termination contracts - - - - Other expenses 0.4 0.1 1.1 0.1 Non recurring
Slide 32: First Half Results FY 2017
First Half Results FY 2017 32