Edreams Odigeo · BME:EDR

Edreams Odigeo — SG Hotel, Catering, Leisure & Transport Conference 2019

20 slides from Edreams Odigeo's conference presentation, April 2019

  1. Slide 1: Why eDreams Odigeo?

    Why 2 eDreams Odigeo? 2 1 1 2 1 1 1 April 2019 Established market position 30% European OTA 30% Significant revenue diversification flight market share Market leading capabilities SOURCE: Internal analysis; Amadeus bookings data; Phocuswright European Travel Overview 13th Edition

  2. Slide 2: Disclaimer

    Disclaimer  This presentation is to be read as an introduction to the audited 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 presentations is extracted from the una

  3. Slide 3: Why eDreams

    Why eDreams

  4. Slide 4: Why eDreams ODIGEO? Winner in Europe, revenue diversification, growing markets

    Morgan Stanley Leveraged Finance Conference WHY EDREAMS ODIGEO WHY eDreams ODIGEO? 1 1. Winner in Europe • Number 1 in flights in Europe • Number 1 or 2 in all main European markets • We provide great value to customers vs their alternatives 2. Significant revenue diversification 3. Growing attracti

  5. Slide 5: Why eDreams ODIGEO? Performance management, cash flows, guidance

    Morgan Stanley Leveraged Finance Conference WHY EDREAMS ODIGEO WHY eDreams ODIGEO? 4. Strong performance management and delivery while changing the business model • 16 Consecutive quarters meeting or exceeding guidance • Exploring alternatives of shifting the revenue model with potential to improve

  6. Slide 6: We are a leading player in Europe, unrivalled scale with 1.8x more revenue than #2

    Morgan Stanley Leveraged Finance Conference WHY EDREAMS ODIGEO – WINNER IN EUROPE 1 We are a leading player in Europe, unrivalled scale with 1.8x more European flight revenue than the #2 player Scale advantage European flight revenue Estimated, latest FY (€m) Long-tail of other OTAs (not-exhaustive)

  7. Slide 7: eDreams ODIGEO is the leader in the European online leisure travel market

    Morgan Stanley Leveraged Finance Conference WHY EDREAMS ODIGEO – WINNER IN EUROPE 1 eDreams ODIGEO is the leader in the European online Scale leisure travel market advantage # Market position Expansion Core European OTA flight market share 1 2 30% # 2 1 eDreams ODIGEO: the leading flights 1 2 retail

  8. Slide 8: Customers book with us because we provide strong value and choice

    Morgan Stanley Leveraged Finance Conference WHY EDREAMS ODIGEO – WINNER IN EUROPE 1 Customers book with us because we provide strong value and choice, in the most convenient way We make it <100 seconds for users to book a direct flight easiest to book 8 vs 3 We give They can >6,000 customers the cus

  9. Slide 9: Revenue diversification on track, positive results visible on the KPIs

    Morgan Stanley Leveraged Finance Conference WHY EDREAMS ODIGEO – SIGNIFICANT REVENUE DIVERSIFICATION Revenue diversification on track, positive results visible on the 2 KPIs Revenue diversification ratio (*) Revenue evolution (*) 43% 35% 33% 3Q FY18 3Q FY19 27% 30% 5% 5% 15% 33% 13% 4Q '16 4Q '17 4Q

  10. Slide 10: Our market continues to be a good market from a macro perspective

    Morgan Stanley Leveraged Finance Conference WHY EDREAMS ODIGEO – GROWING ATTRACTIVE MARKETS 3 Our market continues to be a good market from a macro Macro perspective Perspective Improved macro environment creates an …as well as greater continuous shift from attractive environment for OTAs… offline t

  11. Slide 11: Flight market dynamics in Europe make it especially suited to OTAs

    Morgan Stanley Leveraged Finance Conference WHY EDREAMS ODIGEO – GROWING ATTRACTIVE MARKETS Flight market dynamics in Europe make it especially suited 3 to OTAs Market US Europe 120 Number of airlines1 60 Supply 75% Market share of top 4 airlines2 29% Airline brand recognition High Low Domestic 23%

  12. Slide 12: Revenue diversification: capture growth on some fast growing markets

    Morgan Stanley Leveraged Finance Conference WHY EDREAMS ODIGEO – GROWING ATTRACTIVE MARKETS 3 REVENUE DIVERSIFICATION – Capture growth on some fast growing markets Flight ancillaries market We focus on growing Dynamic Packages as well as some key Flight ancillary products 80b€ Dynamic packages Gross

  13. Slide 13: Financial track record, achieving financial objectives while shifting the business model

    Morgan Stanley Leveraged Finance Conference WHY EDREAMS ODIGEO – STRONG PERFORMANCE MANAGEMENT AND DELIVERY Financial track record, achieving financial objectives while shifting 4 the business model Adjusted EBITDA (€Mn) 118.3 115.0 €117m €113m 107.3 105.0 €107m €103m 95.8 92.5 €94m €91m 2016A 2017A

  14. Slide 14: Revenue model on track, successful execution evidenced on our KPIs

    Morgan Stanley Leveraged Finance Conference WHY EDREAMS ODIGEO – STRONG PERFORMANCE MANAGEMENT AND DELIVERY 4 Revenue model on track, we are successful on executing on our strategy as evidenced on our KPIs Customer repeat booking rate (Annualised)(*) Acquisition cost per booking index 56% 59% 50% 10

  15. Slide 15: Strong cash flow generation

    Morgan Stanley Leveraged Finance Conference WHY EDREAMS ODIGEO – STRONG CASH FLOWS 5 Strong cash flow generation € in millions Favourable Easter Seasonality 171.5 143.5 132 134.1 121.8 97% 104.6 108.2 67% 82 79.3 54% 54.3 51.5 21% 19.1 FY 2015 FY 2016 FY 2017 FY 2018 CF Operating Activities CF befor

  16. Slide 16: Deleveraging created an opportunity to reduce cost of debt

    Morgan Stanley Leveraged Finance Conference WHY EDREAMS ODIGEO – STRONG CASH FLOWS 5 Deleveraging created an opportunity to reduce cost of debt Net debt (€m) Net leverage ratio (a) (x) 22.2% 1.3x 331.0 3.4x 285.1 2.7x 257.6 2.1x Q4'16 Q4'17 Q4'18 Q4'16 Q4'17 Q4'18 Gross debt (€m) Gross leverage rati

  17. Slide 17: Significant reduction of debt coupon, 80 basis points below average market yields

    Morgan Stanley Leveraged Finance Conference WHY EDREAMS ODIGEO – STRONG CASH FLOWS Significant reduction of debt coupon and 80 basis points below 5 average market yields for B2 rated bonds Debt markets As a % 8.5% -300 basis points 80 basis points below average 6.3% 5.5% eDreams ODIGEO eDreams ODIGE

  18. Slide 18: FY 2019 raised and 2020 guidance reconfirmed, with a clear path to achieve

    Morgan Stanley Leveraged Finance Conference WHY EDREAMS ODIGEO – FY 20109 RAISED & 2020 GUIDANCE RECONFIRMED 6 FY 2019 raised and 2020 guidance reconfirmed, with a clear path to achieve 16 consecutive quarters meeting or exceeding guidance Outlook FY 2019 - UPDATED Outlook FY 2020 - Reconfirmed Book

  19. Slide 19: Why eDreams Odigeo?

    Why 2 eDreams Odigeo? 2 1 1 2 1 1 1 April 2019 Established market position 30% European OTA 30% Significant revenue diversification flight market share Market leading capabilities SOURCE: Internal analysis; Amadeus bookings data; Phocuswright European Travel Overview 13th Edition

  20. Slide 20: What will drive Q4 growth rates?

    What will drive Q4 growth rates? Volume affected by transition to new price display in majority of our business Bookings (% Year on Year growth) DRIVERS +6% -4 to o Since FY18 the proportion of our +1% +1% -6% +1% -5% -5% -11% business migrated to the new price 1Q '18 2Q '18 3Q '18 4Q '18 1Q '19 2Q

eDreams ODIGEO — SG Hotel, Catering, Leisure & Transport Conference 2019 on 6ix