OneSpaWorld Holdings Limited · NASDAQ:OSW
OneSpaWorld — Investor Presentation (January 2023)
22 slides from OneSpaWorld's investor presentation, Jan 9, 2023
Slide 1: Investor Presentation January 9, 2023
– The Global Health and Wellness Company – INVESTOR PRESENTATION | JANUARY 9, 2023
Slide 2: Disclosure & Forward Looking Statements
Forward-Looking Statements This Investor Presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the “safe harbor” provisions of the Private Securities Litigatio
Slide 3: Disclosure, Continued
Use of Projections This Investor Presentation contains financial forecasts, including with respect to estimated revenues, net income, Adjusted Net Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Unlevered After-Tax Free Cash Flow, Levered After-Tax Free Cash Flow and Unlevered After-Tax Fre
Slide 4: Examples of world class facilities at sea, on land
Examples of world class facilities at sea, on land
Slide 5: Key Investment Highlights
• 90+% outsourced spa market share on cruise ships PREEMINENT LEADER • Nearly 20x larger than nearest maritime competitor • ~20M annual captive audience FAVORABLE INDUSTRY • 20+ consecutive years of global passenger growth KEY INVESTMENT DYNAMICS • Strong population and demographic trends • Emphasis
Slide 6: OneSpaWorld Overview and Financial Highlights
ONESPAWORLD OVERVIEW Exceptional Performance Since Return to Service • Record Demand with Key Operating Metrics Above 2019 (Average Guest Spend and Revenue Per Staff Per Day ONESPAWORLD, above 2019) THE PREEMINENT • Second Half 2022 Revenue and adjusted EBITDA above GLOBAL HEALTH & 2019 second half
Slide 7: FY22 and FY23 Guidance
FY22 and FY23 Guidance FY2022 ONESPAWORLD, THE PREEMINENT GLOBAL HEALTH & WELLNESS $540m- $44m-$47m SERVICES $545m EBITDA COMPANY Revenue FY2023 $660m- $64m-$70m $680m EBITDA Revenue Growth of 47.3% at Mid- Point versus FY 2022 Growth of 23.5% at Mid- Point versus FY2022 PRIVILEGED, PROPRIETY AND CO
Slide 8: Long-Term Agreements with the Largest and Most Reputable Cruise Lines
We Operate on All Global Long-Term C-Level Relationships Routes and Ship Classes 1 Across our Entire Fleet 3 Cruise Line Other Asia Relationship Total Ships OSW Ships Banner O TH Australia AS ER IA A 29 Years 26 26 U ST LONG-TERM RL IA AGREEMENTS WITH Europe NORTH 29 Years 24 24 EUROPE North America
Slide 9: Revenue Sharing Contracts Offer Compelling Value
Onboard Health & Wellness Products and Services ONESPAWORLD CRUISE LINES REVENUE SHARING CONTRACTS OFFER RESPONSIBILITY RESPONSIBILITY COMPELLING VALUE Recruit, train and manage FOR Fund multi-million dollar buildout worldwide onboard staff ONESPAWORLD & Offer comprehensive and Dependably fill ships
Slide 10: End-to-End Logistics Capabilities
End-to-End Logistics Capabilities BACK-END PLATFORM & FRONT-END PLATFORM & KNOW-HOW KNOW-HOW ONESPAWORLD HAS THE ONLY Global recruiting, training and Yield and revenue human logistics management PLATFORM WITH Exceptional pre through PROCESSES AND Product supply chain facility post-cruise experience
Slide 11: Unmatched Service and Product Breadth
UNMATCHED SERVICE AND PRODUCT Broad Offering of Cruise Passengers an BREADTH ONBOARD Leading Brands Attractive Demographic * * COMPREHENSIVE SPA & BEAUTY SERVICES SERVICES $114,000 AND CURATED MEDI-SPA AVERAGE INCOME BRANDS SOLD TO * AN ATTRACTIVE CAPTIVE AUDIENCE FITNESS 49 84% YEARS OLD MARRIED HE
Slide 12: Global Cruise Operations Are Highly Complex
Global Passenger Routes GLOBAL CRUISE OPERATIONS ARE HIGHLY COMPLEX In 2022, OneSpaWorld… VISITED EMBARKED ON REQUIRED 1,129 6,661 5,279 GLOBAL PORTS OF CALL VOYAGES STAFF TO FILL OPEN POSITIONS MADE PLACED SENT STAFF ON MORE THAN 1,115 5,378 7,825 MANGEMENT VISITS TO SHIPS PURCHASE ORDERS TO FLIGHT
Slide 13: More Than 20 Consecutive Years of Global Passenger Growth
GLOBAL CRUISE SHIP PASSENGERS (M) Recession Recession 29.7 28.5 MORE THAN 20 26.7 CONSECUTIVE 25.2 YEARS OF GLOBAL 23.1 22.3 PASSENGER .7 % R :6 20.5 20.9 21.3 GROWTH C AG 19 19.1 -20 19 95 17.2 17.8 The global cruise 16.6 15.9 industry has proven 14.8 13.9 resilient through 12.6 recessions with 11.
Slide 14: Uniquely Visible and Predictable Growth
Growth Strategy Built on the Following Key Drivers: 1 Capture Highly Visible New Ship Growth with Current Cruise Line Partners Cruise capacity growth is highly visible and 3 Focus on Enhancing Health and Wellness Center Productivity Increase pre-booking and pre-payment UNIQUELY VISIBLE predictable w
Slide 15: Global Trends to Drive Sector Growth
MULTIPLE MEGA ROBUST CAPACITY GROWTH IN CRUISING ACROSS TRENDS DRIVE GEOGRAPHIES POSITIVE OUTLOOK Global Cruise Capacity Growth: 2020 – 2027 GLOBAL TRENDS TO AGING GLOBAL DRIVE SECTOR POPULATIONS GROWTH 38.7M + CA GR :4 .0% PERSISTENT HEALTH & Multiple long-term 29.5M WELLNESS TRENDS mega trends und
Slide 16: Introduction of High-Value Services Drives Revenue Growth
Introduction of High-Value Services Drives Revenue Growth Across Existing Footprint SERVICE & PRODUCT OneSpaWorld Medi-Spa Rollout: INNOVATION Vessel Count by Year ACUPUNCTURE 1ST VESSEL EXCLUSIVE & HIGHLY 2005 AGR: 2 3 % 99 – 2 01 9 C 94 ATTRACTIVE 2 008 86 86 75 66 GLOBAL FLEET ROLLOUT 55 62 47
Slide 17: Cruise Lines Increasingly Aligned and Onboard Collaboration
Onboard Spend as a % of Cruise Operator Revenue 1 Historical Collaboration SIDE ENGAGEMENT ISOLATED SHORE- 29.8% Health & Wellness Center Branding & Design s bp CRUISE LINES ARE 60 +5 INCREASINGLY Signage & Limited Marketing ALIGNED WITH US 24.2% TO DRIVE ONBOARD New Areas of Collaboration REVENUE 2
Slide 18: Strong, Visible and Consistent Revenue & Adjusted EBITDA Growth
Historical Revenue Historical PF Adj. EBITDA1 ($M, FYE Dec.) ($M, FYE Dec.) +23.5% GR : 5.5% $670 19 C A .0% 201 5-20 GR: 7 +47.3% STRONG, $541 $562 $543 201 9 CA - $67 $507 2015 $453 $476 $53 $56 $59 VISIBLE AND $45 $49 $45 CONSISTENT Pandemic REVENUE & $144 $121 ADJUSTED EBITDA 2015 2016 2017 2018
Slide 19: Exceptional After Tax Free Cash Flow Conversion
Exceptional After Tax Free Cash Flow Conversion MINIMAL NEW HEALTH & WELLNESS CENTER CAPEX Cruise lines fund nearly all maritime health and wellness center buildout costs ASSET LIGHT MODEL ASSET LIGHT OneSpaWorld does not own any of its maritime health and wellness centers – all major maintenance re
Slide 20: OneSpaWorld, the Preeminent Global Health and Wellness Services Company
ONESPAWORLD, THE PREEMINENT GLOBAL HEALTH AND WELLNESS SERVICES COMPANY UNDISPUTED LEADER IN A HIGHLY ATTRACTIVE INDUSTRY GLOBAL MEGA TRENDS DRIVING ROBUST SECTOR GROWTH COMPLEX BUSINESS MODEL NOT EASILY REPLICATED HIGHLY VISIBLE, UNIQUELY PREDICTABLE GROWTH ENHANCED CAPABILITIES ADD TO SALES PRODUC
Slide 21: Our Focus on People
Our Focus on People We believe how we manage our relationships with our employees, with the staff and guests of our cruise and destination resort partners, with the teams of our suppliers, and with the communities where we operate is ONESPAWORLD, fundamental to the success of our operations. And we
Slide 22: Thank You
T H A N K YOU P R I V I L E G E D , P R O P R I E T A R Y A N D C O N F I D E N T I A L 28
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