Edreams Odigeo · BME:EDR
Edreams Odigeo — Q1 FY2018 Earnings Presentation
29 slides from Edreams Odigeo's earnings presentation, Aug 25, 2017
Slide 1: Q1 Results Presentation
Q1 Results Presentation Fiscal Year 2018 Q1 Results, ending June 30th 2017 August 25th 2017
Slide 2: Disclaimer
Q1 FY 2018 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 prese
Slide 3: Q1 Results Highlights
Q1 Results Highlights • Q1 Results Highlights • KPIs • Financial Analysis • Outlook • Appendix
Slide 4: Results Highlights
Q1 FY 2018 Results Presentation Results Highlights Solid performance ahead of guidance ▪ Year-on-Year comparisons reflect very strong Q1’ 17 Q1 performance was driven by: ▪ Solid bookings and revenue margin ▪ Accelerated investment in mobile and evolution in change of our revenue model ▪ Adjusting f
Slide 5: Results ahead of Q1 outlook and on track to meet FY 2018 guidance
Q1 FY 2018 Results Presentation Results ahead of Q1 outlook and on track to meet FY 2018 guidance Bookings Revenue Margin Adjusted EBITDA (*) In thousands In € million In € million +6% 29.0 2,916.4 2,933.7 124.2 125.3 27.0 2,618.2 113.8 +30% -7% +11% +1% +9% +1% 22.4 -10 to -14% Q1 Q1 Q1 Q1 Q1 Q1 Q1
Slide 6: KPIs
KPIs • Q1 Results Highlights • KPIs • Financial Analysis • Outlook • Appendix 6
Slide 7: Success in our revenue diversification strategy is tracked through performance indicators
Q1 FY 2018 Results Presentation Success in our revenue diversification strategy is tracked through a series of performance indicators Revenue diversification ratio Product diversification ratio Acquisition cost per booking index Repeat booking Share of mobile bookings 77
Slide 8: Growing share of revenues coming from our diversification strategy
Q1 FY 2018 Results Presentation Growing share of revenues coming from our diversification strategy Revenue diversification ratio (*) Revenue split Diversification revenues Classic Supplier revenues Revenue diversification ratio Classic customer revenues Advertising & Meta 31% 27% 6% 14% 31% 49% Q1 ‘
Slide 9: Increasing ability to add value to customers, booking with more attachments
Q1 FY 2018 Results Presentation Increasing ability to add value to customers, booking with more attachments Product diversification ratio 46% Product diversification ratio (*) 42% Q1 ‘17 Q1 ‘18 (*) Definitions of Non-GAAP measures on page 28-29 9
Slide 10: Decreasing acquisition cost v. index of Q4 FY 15
Q1 FY 2018 Results Presentation Decreasing acquisition cost v. index of Q4 FY 15 before start of transformation Acquisition cost per booking Index 100 -9 percentage points 87 78 Acquisition cost per booking index (*) Q4 ’15 Q1 ’17 Q1 ‘18 Baseline (*) Definitions of Non-GAAP measures on page 28-29 10
Slide 11: Stable repeat rates with positive YoY
Q1 FY 2018 Results Presentation Stable repeat rates with positive YoY Customer repeat booking rate; Annualised view 47% 48% Repeat booking (*) Q1 ‘17 Q1 ‘18 (*) Definitions of Non-GAAP measures on page 28-29 11
Slide 12: Strong growth in Mobile Bookings
Q1 FY 2018 Results Presentation Strong growth in Mobile Bookings Mobile as share of flight bookings EU industry average 32% 26% Gap vs Industry +8pp Average +5pp 24% 21% (**) (*) Q1 FY 2017 Q1 FY 2018 Share of mobile bookings Source: Phocuswright European Online Travel Overview Twelfth Edition (*) 2
Slide 13: Financial Analysis
Financial Analysis • Q1 Results Highlights • KPIs • Financial Analysis • Outlook • Appendix 13
Slide 14: Income statement
Q1 FY 2018 Results Presentation Income statement Q1 Q1 Var. Key highlights Q1 FY 2018 FY 2017 FY 2018 18 vs 17 (In € million) In FY 2018, main YoY evolutions reflect: Revenue margin 124.2 125.3 1% ▪ Revenue margin increase by 1% Variable costs (75.9) (77.2) 2% ▪ Variable Costs grew in line with book
Slide 15: Working Capital evolution
Q1 FY 2018 Results Presentation Working Capital evolution Industry change… … Offset by WC performance program Back in 2015, IATA approved regulations to increase In order to balance the negative effect on our frequency of remittance in two key markets: working capital, we have executed during FY17 a
Slide 16: Cash flow statement
Q1 FY 2018 Results Presentation Cash flow statement Q1 Q1 Key highlights Q1 FY 2018 (In € million) FY 2017 FY 2018 ▪ Cash flow from operations decreased by €61.3 million: Adjusted EBITDA (*) 29.0 27.0 – Decrease adj. EBITDA by €2.0m (2.0) (13.8) – Higher non-recurring items Non recurring items – An
Slide 17: Stable leverage despite IATA change
Q1 FY 2018 Results Presentation Stable leverage despite IATA change ▪ Gross Leverage ratio was flat at 4.2x in June 2017 vs June Gross Leverage Ratio 2016, which gives us ample headroom vs our covenant ratio. (Total Gross Financial Debt1 / LTM Adjusted EBITDA) 7 6 x LTM Adj. EBITDA ▪ Despite cash ou
Slide 18: Outlook
Outlook • Q1 Results Highlights • KPIs • Financial Analysis • Outlook • Appendix 18
Slide 19: Reiterate full year Outlook
Q1 FY 2018 Results Presentation FY 2018 TARGETS Reiterate full year Outlook Outlook Statement Outlook 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
Slide 20: Financial policy in line with strategy
Q1 FY 2018 Results Presentation OUR VISION - LONGER TERM TARGETS Financial policy in line with strategy 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 revenu
Slide 21: In summary…
Q1 FY 2018 Results Presentation In summary… World-class product Customer value Growing market Industry structure and technology Mobile leader Scale Market leadership Investment Results 21
Slide 22: Appendix
Appendix • Q1 Results Highlights • KPIs • Financial Analysis • Outlook • Appendix 22
Slide 23: Flight and Non-Flight Bookings
Q1 FY 2018 Results Presentation FLIGHT AND NON-FLIGHT BOOKINGS Revenue diversification drives growth in Flight Business Flight Flight - Bookings In ‘000 ▪ Progress in strategic initiatives and our revenue diversification have boosted our performance and they have also set us on the path for longer t
Slide 24: Flight and Non-Flight Revenue Margin
Q1 FY 2018 Results Presentation FLIGHT AND NON-FLIGHT REVENUE MARGIN Revenue diversification drives growth in Flight Business Flight Flight – Revenue Margin In € million ▪ Solid Q1 FY 2017 performance was driven by our continued efforts to improve product, re-orient price, and channel performance. +
Slide 25: Core and Expansion Bookings
Q1 FY 2018 Results Presentation CORE AND EXPANSION BOOKINGS Revenue diversification drives growth in the Expansion Markets Core- Bookings Core In ‘000 ▪ In Q1 FY 2017, we had strong growth in bookings due to solid growth rates in all three markets (Spain, Italy and France) and in particular the flig
Slide 26: Core and Expansion Revenue Margin
Q1 FY 2018 Results Presentation CORE AND EXPANSION REVENUE MARGIN Revenue diversification drives growth in the Expansion Markets Core – Revenue Margin Core In € million ▪ In Q1 FY 2017, we had a significant improvement in the revenue trajectory and strong growth rates in bookings due to our flight b
Slide 27: eDreams ODIGEO
eDreams ODIGEO
Slide 28: Glossary of Definitions
Q1 FY 2018 Results Presentation Glossary of Definitions “Bookings” refers to the number of transactions under the agency model and the principal model as well as transactions made under white label arrangements. One Booking can encompass one or more products and one or more passengers. ‘‘Adjuste
Slide 29: Glossary of Definitions
Q1 FY 2018 Results Presentation Glossary of Definitions Diversification Revenue represents revenue other than Classic Customer Revenue, Classic Supplier Revenues or Advertising and Metasearch Revenue, earned through vacation products (including car rentals, hotels and Dynamic Packages), flight anc