OneSpaWorld Holdings Limited · NASDAQ:OSW
OneSpaWorld — Investor Presentation (May 2023)
22 slides from OneSpaWorld's investor presentation, May 3, 2023
Slide 1: The Global Health and Wellness Company – Investor Presentation
– The Global Health and Wellness Company – INVESTOR PRESENTATION | May 3rd, 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: Financial Highlights: Exceptional Performance in Q1 2023
ONESPAWORLD OVERVIEW Exceptional Performance in Q1 2023 • The first quarter saw better-than-expected performance across key financial metrics driven by the power of our operating platform and the successful ONESPAWORLD, THE execution of our strategy by our team. PREEMINENT • Q1 was highlighted by se
Slide 7: FY22 and FY23 Guidance
FY22 and FY23 Guidance Q2 2023 ONESPAWORLD, THE PREEMINENT GLOBAL HEALTH & WELLNESS SERVICES $185m-$190m $18m-$20m Revenue EBITDA COMPANY FY 2023 $710m-$730m $70m-$76m Revenue EBITDA Growth of 32% at Mid-Point Growth of 46% at Mid-Point versus FY2022 versus FY 2022 Increased from $660m-$680m Increas
Slide 8: Long-Term Agreements with the Largest and Most Reputable Cruise Lines
We Operate on All Global Long-Term C-Level Relationships Across Routes and Ship Classes 1 our Entire Fleet 3 Cruise Line Other Asia Relationship Total Ships OSW Ships Banner Australia 29 Years 26 26 LONG-TERM AGREEMENTS WITH Europe NORTH 29 Years 24 24 EUROPE North America THE LARGEST AMERICA 23 Yea
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 worldwide FOR ONESPAWORLD & Fund multi-million dollar buildout onboard staff CRUISE LINES Offer comprehensive and innovati
Slide 10: End-to-End Logistics Capabilities
End-to-End Logistics Capabilities BACK-END PLATFORM & FRONT-END PLATFORM & KNOW- KNOW-HOW HOW ONESPAWORLD HAS THE ONLY PLATFORM Global recruiting, training and Yield and revenue human logistics management WITH PROCESSES AND Exceptional pre through INFRASTRUCTURE Product supply chain facility post-cr
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 BRANDS MEDI-SPA AVERAGE INCOME SOLD TO AN * FITNESS ATTRACTIVE CAPTIVE AUDIENCE 49 84% HEALTH YEARS OLD MAR
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 IN PURCHASE ORDERS TO VEN
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 YEARS 25.2 OF GLOBAL PASSENGER 23.1 22.3 GROWTH 21.3 20.9 20.5 19.1 17.8 17.2 The global cruise industry 16.6 15.9 has proven resilient 14.8 13.9 through recessions with 12.6 passenger counts 11.5 growing c
Slide 14: Uniquely Visible and Predictable Growth
UNIQUELY VISIBLE AND PREDICTABLE GROWTH ONESPAWORLD T SEA, ON LAND. Growth Strategy Built on the Following Key Drivers: Capture Highly Visible New Ship Growth with Current Cruise Line Partners Cruise capacity growth is highly visible and predictable with published global orderbooks reflecting 5+ yea
Slide 15: Global Trends to Drive Sector Growth
MULTIPLE MEGA TRENDS DRIVE POSITIVE ROBUST CAPACITY GROWTH IN CRUISING ACROSS GEOGRAPHIES OUTLOOK Global Cruise Capacity Growth: 2020 – 2027 GLOBAL TRENDS TO AGING GLOBAL DRIVE SECTOR POPULATIONS GROWTH 38.7M + PERSISTENT HEALTH & Multiple long-term mega 29.5M WELLNESS TRENDS trends underlie a compe
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: Vessel INNOVATION Count by Year ACUPUNCTURE 1ST VESSEL EXCLUSIVE & HIGHLY ATTRACTIVE GLOBAL 2005 94 99 CHANNEL FOR HIGH 86 86 75 66 MARGIN SPA SERVICES FLEET ROLLOUT
Slide 17: Cruise Lines Increasingly Aligned and Onboard Collaboration
Onboard Spend as a % of Cruise Operator Revenue 1 Historical Collaboration Health & Wellness Center Branding & SIDE ENGAGEMENT 29.8% ISOLATED SHORE- Design CRUISE LINES ARE INCREASINGLY ALIGNED Signage & Limited Marketing WITH US TO DRIVE 24.2% ONBOARD REVENUE New Areas of Collaboration 2011 2019 We
Slide 18: Strong, Visible and Consistent Revenue & Adjusted EBITDA Growth
Historical Revenue Historical PF Adj. EBITDA 1 ($M, FYE Dec.) ($M, FYE Dec.) +32% $720 +36% STRONG, $541 $562 $543 $73 $507 VISIBLE AND $453 $476 $53 $56 $59 $49 $50 $45 CONSISTENT REVENUE Pandemic & ADJUSTED EBITDA $144 $121 GROWTH WITH EXCEPTIONAL 2015 2016 2017 2018 2019 2020 2021 2022 2023 2015
Slide 19: Asset Light Business Model & Superior After-Tax Free Cash Flow
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 BUSINESS OneSpaWorld does not own any of its maritime health and wellness centers – all major maint
Slide 20: Sustainability and Social Responsibility
PLANET PEOPLE INTEGRITY Sustainability and Social Responsibility For over half a century, we have been innovators in the spa and wellness industry; bringing our premier services to passengers around the world on cruise ships and in resort spas. Our commitment to the environment is unwavering. We con
Slide 21: 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 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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