OneSpaWorld Holdings Limited · NASDAQ:OSW
OneSpaWorld — Investor Presentation (June 2021)
24 slides from OneSpaWorld's investor presentation, June 2021
Slide 1: The Global Health and Wellness Company
– The Global Health and Wellness Company – INVESTOR PRESENTATION | JUNE 2021
Slide 2: Disclosure & Forward Looking Statements
OneSpaWorld Holdings Limited has filed a registration statement on Form S-3 (File No. 333-239628) (including the prospectus and prospectus supplement that form a part of such registration statement, the “Registration Statement”) with the U.S. Securities and Exchange Commission (the “SEC”) for the of
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: Today's OneSpaWorld Presenters
TODAY’S ONESPAWORLD PRESENTERS Leonard Fluxman Stephen Lazarus Executive Chairman & Chief Operating Officer & Chief Executive Officer Chief Financial Officer 30+ Years with OSW 18+ Years with OSW PRIVILEGED, PROPRIETY AND CONFIDENTIAL 4
Slide 5: The Proposed Common Stock Offering
ISSUER: OneSpaWorld Holdings Limited (“OSW” or the “Company”) TICKER / EXCHANGE: OSW / NASDAQ THE PROPOSED SECURITY: Registered common shares COMMON STOCK OFFERING OFFERING SIZE: $80 million COMPOSITION: 100% secondary OVERALLOTMENT 15% by Selling Shareholders OPTION: SELLING Steiner Leisure Limited
Slide 6: Key Investment Highlights
• 90+% outsourced spa market share on cruise ships INDUSTRY • Nearly 20x larger than nearest maritime competitor LEADER • ~20M annual captive audience • 20+ consecutive years of global passenger growth MEGA • Strong population and demographic trends KEY INVESTMENT TRENDS • Emphasis on health, wellne
Slide 7: We Are Ready to Return to Sailing
We Are Ready to Return to Sailing! 1 Return to Service Safely, #1 Priority • Institute protection and sanitization culture and standards ELEVATED SPA • Align staffing with return dates and load SAFETY, CUSTOMER factors, stress test for ship board readiness EXPERIENCE AND • Implement technology enhan
Slide 8: Safety & Recovery: Increasing Optimism & Momentum for Return to Sailing in 2021
Safety & Re-Opening Momentum Recovery in Process & Optimism • The CDC’s Conditional • The CDC approved eight • Many large cruise line Sailing Order in place ships for simulated partners have reported INCREASING through October 2021 cruises, two ships for 2022 bookings and • Color-coding system to re
Slide 9: OneSpaWorld Financial Highlights
UND IS P UT E D L E AD E R IN A HIG HL Y AT T R AC T IV E IND US T R Y G L O B AL ME G A T R E ND S D R IV ING R O B US T S E C T O R G R O WT H C O MP L E X B US INE S S MO D E L NO T E AS IL Y R E P L IC AT E D ONESPAWORLD, HIG HL Y V IS IB L E , UNIQ UE L Y P R E D IC T AB L E G R O WT H THE PREE
Slide 10: More Than 20 Consecutive Years of Global Passenger Growth
GLOBAL CRUISE SHIP PASSENGERS (M) Recession Recession 29.7 28.5 26.7 25.2 MORE THAN 20 23.1 22.3 CONSECUTIVE 20.5 20.9 21.3 YEARS OF GLOBAL 17.8 19.1 17.2 PASSENGER 15.9 16.6 14.8 GROWTH 13.9 12.6 11.5 The global cruise 9.6 9.9 8.4 industry has proven 7.1 7.8 6.3 6.6 resilient through recessions wit
Slide 11: Global Cruise Capacity Growth: 2020 – 2027
MULTIPLE MEGA ROBUST CAPACITY GROWTH IN CRUISING ACROSS TRENDS DRIVE GEOGRAPHIES POSITIVE OUTLOOK Global Cruise Capacity Growth: 2020 – 2027 GLOBAL TRENDS AGING GLOBAL TO DRIVE SECTOR POPULATIONS GROWTH 38.7M + Multiple long-term PERSISTENT HEALTH & 29.5M mega trends underlie a WELLNESS TRENDS compe
Slide 12: "Category of One" Market Share
Outsourced Spa Cruise Market Share 7% OTHES Other 9% <10% #2 PLAYER ONESPAWORLD, A “CATEGORY OF ONE” OneSpaWorld is the undisputed leader in OneSpa maritime health and 84%World >90% wellness services with MARKET 90+% market share and unmatched global SHARE capabilities (AND GROWING) UND IS P UT E D
Slide 13: Unmatched Service and Product Breadth Onboard
UNMATCHED SERVICE AND PRODUCT BREADTH Broad Offering of Cruise Passengers an 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% HEALTH YEARS OLD MAR
Slide 14: 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 Asia Cruise Line Other Relationship Total Ships OSW Ships Banner Australia 28 Years 24 24 LONG-TERM AGREEMENTS WITH Europe NORTH 28 Years 23 23 EUROP North America AMERICA THE LARGEST E 22 Ye
Slide 15: Revenue Sharing Contracts Offer Compelling Value
Onboard Health & Wellness Products and Services ONESPAWORLD CRUISE LINES REVENUE SHARING CONTRACTS OFFER RESPONSIBILITY RESPONSIBILITY COMPELLING Recruit, train and manage VALUE FOR Fund multi-million dollar buildout worldwide onboard staff ONESPAWORLD & Offer comprehensive and Dependably fill ships
Slide 16: Global Cruise Operations Are Highly Complex
Global Passenger Routes GLOBAL CRUISE OPERATIONS ARE HIGHLY COMPLEX In 2019, OneSpaWorld… VISITED EMBARKED ON REQUIRED 1,221 7,951 5,614 GLOBAL PORTS OF CALL VOYAGES STAFF TO FILL OPEN POSITIONS MADE PLACED SENT STAFF ON MORE THAN 3,047 18,988 8,271 MANGEMENT VISITS TO SHIPS PURCHASE ORDERS TO FLIGH
Slide 17: End-to-End Logistics Capabilities
End-to-End Logistics Capabilities BACK-END PLATFORM & FRONT-END PLATFORM & KNOW-HOW KNOW-HOW ONESPAWORLD Global recruiting, training and Yield and revenue HAS THE ONLY human logistics management PLATFORM WITH Exceptional pre through PROCESSES AND Product supply chain facility post-cruise experience
Slide 18: Predictable New Ship Orderbook
Public Global Cruise Orderbook Outlines History of On-Time Future New Ships Cruise Ship Builds Orderbook in Ships and Berths ( 000s) 2,500+ Berth Ships Delivered On-Time as of 2-Year Forward Orderbook 8 Long-Term Orderbook Will Continue to Grow 2019 8 PREDICTABLE NEW 8 Each Block is a Ship on Order
Slide 19: 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 94 99 ATTRACTIVE 86 86 75 66 GLOBAL FLEET ROLLOUT 55 62 47 CHANNEL FOR HIGH 34 110 VESS
Slide 20: Cruise Lines Increasingly Aligned with Us to Drive Onboard Revenue
Onboard Spend as a % of Cruise Operator Revenue 1 Historical Collaboration SIDE ENGAGEMENT ISOLATED SHORE- 29.8% Health & Wellness Center Branding & Design CRUISE LINES ARE INCREASINGLY Signage & Limited Marketing ALIGNED WITH US 24.2% TO DRIVE ONBOARD New Areas of Collaboration REVENUE 2011 2019 We
Slide 21: Strong, Visible and Consistent Revenue & Adjusted EBITDA Growth
Historical Revenue Historical PF Adj. EBITDA 1 ($M, FYE Dec.) ($M, FYE Dec.) $562 $541 $507 $59 $476 $56 $453 $53 STRONG, $49 $45 VISIBLE AND CONSISTENT REVENUE & ADJUSTED EBITDA GROWTH WITH 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 EXCEPTIONAL FREE CASH FLOW Ship Count 152 156 157 163 170 E
Slide 22: Asset Light Business Model & Superior Level of After-Tax Free Cash Flow
Exceptional Unlevered After-Tax Free Cash Flow Conversion Before Covid-19 1 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 center
Slide 23: OneSpaWorld, the Preeminent Global Health and Wellness Services Company
ONESPAWORLD, THE PREEMINENT GLOBAL HEALTH AND WELLNESS SERVICES COMPANY UND IS P UT E D L E AD E R IN A HIG HL Y AT T R AC T IV E IND US T R Y G L O B AL ME G A T R E ND S D R IV ING R O B US T S E C T O R G R O W T H C O MP L E X B US INE S S MO D E L NO T E AS IL Y R E P L IC AT E D HIG HL Y V IS
Slide 24: Thank You
THA NK 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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