Edreams Odigeo · BME:EDR
Edreams Odigeo — Q1 FY2017 Earnings Presentation
32 slides from Edreams Odigeo's earnings presentation, Aug 26, 2016
Slide 1: Fiscal Year 2017 Q1 Results Investor presentation
Fiscal Year 2017 Q1 Results, ending June 30th 2016 Investor presentation August 26th 2016
Slide 2: Disclaimer
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. By their nature, forward-lo
Slide 3: Agenda
AGENDA Q1 Results Highlights Financial Analysis Outlook Appendix 2 FY 2017 Q1 Results Presentation
Slide 4: Results Highlights
Results Highlights Strong results with growth in bookings, revenue margin & adjusted EBITDA Successful debt deleveraging $ Group successfully repurchased €30 million of the 2018 Notes Solid Cash flow Cash position stood at €112 million. Excluding debt repurchase, cash position would have stood a
Slide 5: Strong results with growth in bookings, revenue margin and adjusted EBITDA
Strong results with growth in bookings, revenue margin and adjusted EBITDA Bookings Revenue Margin Adjusted EBITDA In thousands In € million In € million +9% +30% +11% 29.0 124.2 2,916 113.8 2,618 22.4 3M 3M 3M 3M 3M 3M JUNE JUNE JUNE JUNE JUNE JUNE 2015 2016 2015 2016 2015 2016 Source: Consolidated
Slide 6: Strategy delivering good growth in adjusted EBITDA
Strategy delivering good growth in adjusted EBITDA Adjusted EBITDA quarterly evolution % Growth normalised for no Q1 bonus payment FY 2015. YoY variation 100% accrual in FY 2016 40.0% 30.0% 30.0% +11% 18% Bookings 20.0% 13% 13.5% 7% 7% 6.2% +9% 10.0% 0.7% 1.4% 0.0% -10.0% Revenue Margin -10.8% -20.0
Slide 7: Flight and Non-flight bookings
Flight and Non-flight bookings: Continued growth in Flight, and solid performance in non-flight Flight - Bookings Flight In ‘000 +12% Progress in strategic initiatives has 2,674 delivered solid growth in bookings 2,380 − Growth driven by both Core and Expansion markets Non-Flight Non-flight busi
Slide 8: Flight and Non-flight revenue margin
Flight and Non-flight revenue margin: Solid growth rates in flight and non-flight business Flight - Revenue Margin Flight In € million Solid growth due to our continued +9% efforts to improve product, re-orient 98.6 90.8 price and channel performance − Growth driven by both Core and Expansion mark
Slide 9: Core and Expansion bookings
Core and Expansion bookings: Core positive trend continues for fourth consecutive quarter Core - Bookings In ‘000 +12% Core 1,517 1,356 Core bookings positive trend continued − Driven by solid growth rates in all three markets (Spain, Italy and France) and in particular the flight business. Expans
Slide 10: Core and Expansion revenue margin
Core and Expansion revenue margin: Positive performance in all our Core markets Core Markets - Revenue Margin In € million +10% Core 70.3 All 3 markets within Core grew in 64.2 revenue margin for second consecutive quarter. First time since September 2013. − Growth driven by solid growth rates on
Slide 11: Agenda
AGENDA Q1 Results Highlights Financial Analysis Outlook Appendix 10 FY 2017 Q1 Results Presentation
Slide 12: Income statement
Income statement Key highlights Q1 Q1 Var Over the first quarter, main YoY evolutions reflect: Jun-15 Jun-16 (In € million) Revenue margin growth driven by bookings (+11%) and partially offset by decrease in revenue margin per booking (-2%) Revenue margin 113.8 124.2 9% Variable Costs stable des
Slide 13: Adjusted Net Income
Adjusted Net Income Q1 Q1 Var Jun-15 Jun-16 (In € million) Net income 0.7 7.7 N.A. Non-recurring items 2.5 1.3 (47)% Consent fees on change in covenants 0.2 - N.A. Expenses related to 2018 Notes repurchase - 0.2 N.A. Adjusted net income 3.4 9.2 172% Source: Management accounts, unaudited 12 FY 2017
Slide 14: Cash flow statement
Cash flow statement Q1 Jun-15 Q1 Jun-16 Key highlights (In € million) Over the quarter, main YoY evolutions reflect: Adjusted EBITDA 22.4 29.0 Cash flow from operations increased by €6.0 million: − Increased adj. EBITDA by €6.7m Non recurring items (3.4) (2.0) − Lower non recurring items (+€1.4m i
Slide 15: Improving debt metrics provide ample headroom
Improving debt metrics provide ample headroom Total Debt Coverage Ratio (Total Net Debt(1) / LTM EBITDA) Debt Details 6 (million Principal Rating Maturity euros) x LTM Adj. EBITDA 5 Corporate Moodys:B2 2.41x Family S&P: B 4 Rating Outlook: Stable 5.50x 0.54x 2018 295 Moodys:B3 01/08/18 3 3.63x Notes
Slide 16: Agenda
AGENDA 12 Months Results Highlights Industry Overview & Strategic Developments Financial Analysis Outlook Appendix 15 FY 2017 Q1 Results Presentation
Slide 17: Outlook 2016-17
OUTLOOK 2016-17 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 In excess of 10.7 million long term success Mobile bookings accounted for 24% of total Revenue flight bookings Margin (FY
Slide 18: Closing Remarks – Why invest in eDreams
Closing Remarks – Why invest in Edreams Attractive Industry Online Leisure Travel is the #1 Flight Retailer in Europe largest e-Commerce category Significant product growth opportunities FasterOptimise Europeanpricing Online & Travel penetration Growing market share marketing strategy Co
Slide 19: Agenda
AGENDA Q1 Results Highlights Financial Analysis Outlook Appendix 18 FY 2017 Q1 Results Presentation
Slide 20: KPI historic evolution – eDreams ODIGEO
KPI historic evolution – eDreams ODIGEO PF FY PF PF PF PF FY FY 2013/14 Jun-14 Sep-14 Dec-14 Mar-15 2014/15 Jun-15 Sep-15 Dec-15 Mar-16 2015/16 Jun-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 2,857 10,675 2,916 By product: Flight 8,859 2,261 2,186 1,91
Slide 21: Variable and fixed costs
Variable and fixed costs Variable costs per booking Variable costs lower compared to last year as our pricing and marketing optimization strategies start to 35 pay off on our marketing costs 30.6 30.0 30.2 29.0 29.0 Fixed costs per booking slightly above last year 30 in € per booking mainly due
Slide 22: Balance sheet - Highlights
Balance sheet - Highlights Jun-15 Jun-16 Key Highlights (In € million) Main changes relate to: Goodwill 728.7 727.3 Increase of other fixed assets mainly related to software developed internally Other fixed assets 293.9 306.5 Total fixed assets 1,022.6 1,033.8 Working capital in line with previo
Slide 23: Working capital - Highlights
Working capital - Highlights Quarterly working capital Jun.15 Sep.15 Dec.15 Mar.16 Jun.16 - (50) (100) (189.7) in € million (247.6) (236.1) (250.4) (251.9) (150) (200) (28.5) (250) (29.5) (218.2) (30.7) (26.2) (25.2) (300) (265.6) (278.3) (276.6) (277.1) Working capital Non current deferred income S
Slide 24: Net debt information
Net debt information Undrawn revolving credit facility Net debt excl. capitalization of financing costs end of June 2016 GEO Travel Finance Jun.15 Sep.15 Dec.15 Mar.16 Jun.16 Jun.15 Sep.15 Dec.15 Mar.16 Jun.16 - (100) In € million (200) (300) (400) (348.2) (362.4) (339.3) (331.3) (348.1) (362.2) (
Slide 25: Net debt analysis
Net debt analysis Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 2019 Notes (129.0) (129.0) (129.0) (129.0) (129.0) 2018 Notes (325.0) (325.0) (325.0) (325.0) (295.0) Revolving Credit Facilities - - - - - Accrued interest (12.4) (9.6) (12.4) (9.6) (11.4) Other debts (finance lease, overdrafts, etc.) (5.1) (5.6)
Slide 26: Non recurring items breakdown
Non recurring items breakdown Q1 Q1 Jun-15 Jun-16 LTI plan 0.6 1.7 Exceptional consultancy fee 1.3 - Restructuring costs 0.4 0.0 Selective termination contracts 0.4 0.2 Other expenses 0.7 0.0 Non recurring items 3.4 2.0 Note: Unaudited 25 FY 2017 Q1 Results Presentation
Slide 27: Geo Travel Finance (1/2)
Geo Travel Finance (1/2) INCOME STATEMENT BALANCE SHEET (In € million) Q1 Q1 Var Jun-15 Jun-16 Jun-15 Jun-16 (In € million) Bookings 2,618 2,916 11% Goodwill 728.7 727.3 Other fixed assets 300.0 313.6 Revenue margin 114.0 124.5 9% Total fixed assets 1,028.7 1,040.9 Variable costs (75.9) (75.9) 0% To
Slide 28: Geo Travel Finance (2/2)
Geo Travel Finance (2/2) CASH FLOW STATEMENT COVENANT CALCULATION Q1 Q1 (In € million) Jun-15 Jun-16 TOTAL DEBT COVER RATIO (TOTAL NET DEBT / LTM Adj. EBITDA) Adjusted EBITDA 22.8 29.5 Non recurring items (3.2) (2.0) Total Net Debt(1) Non operating / non cash items (0.7) (1.4) 3.09x LTM Adjusted EBI
Slide 29: Consolidated financial statements – Profit & Loss
Consolidated financial statements – Profit & Loss eDreams eDreams Geo Travel Geo Travel Consolidated Income statement ODIGEO ODIGEO Finance Finance Q1 Q1 Q1 Q1 In € thousand Jun. 2016 Jun. 2015 Jun. 2016 Jun. 2015 Revenue 126,861 119,895 127,138 120,114 Supplies (2,637) (6,066) (2,637) (6,066) Reven
Slide 30: Consolidated financial statements – Balance Sheet
Consolidated financial statements – Balance Sheet eDreams eDreams Geo Travel Geo Travel eDreams eDreams Geo Travel Geo Travel Consolidated balance sheet Consolidated balance sheet ODIGEO ODIGEO Finance Finance ODIGEO ODIGEO Finance Finance In € thousand 30 Jun. 2016 30 Jun. 2015 30 Jun. 2016 30 Jun.
Slide 31: Consolidated financial statements – Cash Flow
Consolidated financial statements – Cash Flow eDreams eDreams Geo Travel Geo Travel Consolidated statement of cash flows ODIGEO ODIGEO Finance Finance Q1 Q1 Q1 Q1 In € thousand Jun. 2016 Jun. 2015 Jun. 2016 Jun. 2015 Net Profit / (Loss) 7,675 662 8,047 1,506 Depreciation and amortization 3,849 4,297
Slide 32: eDreams ODIGEO
eDreams ODIGEO