Edreams Odigeo · BME:EDR
Edreams Odigeo — 9M FY2020 Earnings Presentation
22 slides from Edreams Odigeo's earnings presentation, Feb 27, 2020
Slide 1: Results Presentation 9M FY 2020
RESULTS PRESENTATION 9M FY 2020 27th February 2020
Slide 2: Disclaimer
Disclaimer 1 This presentation is to be read as an introduction to the unaudited condensed consolidated interim 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 ex
Slide 3: Overview
Overview 9M Results FY20 Current trading & FY20 update Appendix 3
Slide 4: Overview: Solid results, 9M FY20 in line with guidance
1 OVERVIEW Solid results, 9M FY20 in line with our guidance PERFORMANCE IN LINE WITH OUR GUIDANCE Bookings, following the completion of our strategic revenue model shift, started to show faster growth, in line with our guidance. In 3Q FY20 Bookings grew by 5% year-on-year, and reached 8.3 million in
Slide 5: Coronavirus (COVID-19) Update
1 Coronavirus (COVID-19) UPDATE DESPITE SOLID HIGH SINGLE-DIGIT GROWTH RATES FOR BOOKINGS IN JANUARY, FEBRUARY HAS BE CATEGORIZED BY INCREASING CONCERNS ABOUT THE CORONAVIRUS (COVID-19) OUTBREAK WHICH HAS INEVITABLY RESULTED IN A SLOWING OF DEMAND ASSESING PERFORMANCE AND POTENTIAL IMPACTS IMPACT IN
Slide 6: We Have a Resilient Business Model
1 WE HAVE A RESILIENT BUSINESS MODEL WHY BUSINESS MODEL RESILIENT 1. The majority of our costs are Variable Cost Economic crisis (circa 80%) China devaluates currency Air Berlin Rusia intervenes Syria bankruptcy Arab Spring 2. The business is diversified by geography. ISIS 4 Terrorist Attacks We do
Slide 7: Revenue Diversification on Track and Largest Contributor to Revenues
1 REVENUE DIVERSIFICATION ON TRACK AND THE LARGEST CONTRIBUTOR TO REVENUES REVENUE DIVERSIFICATION RATIO (**) REVENUE EVOLUTION (**) +8 43% pp 5% Diversification 13% 43% 51% Classic customer 33% Classic supplier 3Q FY19 Advertising & Meta 3Q FY18 3Q FY19 3Q FY20 38% PRODUCT DIVERSIFICATION RATIO 4%
Slide 8: Continued Strategic Progress as Evidenced by Our KPIs
1 CONTINUED STRATEGIC PROGRESS AS EVIDENCED BY OUR KPIS MOBILE BOOKINGS AS SHARE OF FLIGHT BOOKINGS (*) ACQUISITION COST PER BOOKING INDEX (*) +5 pp 39% 44% 36% -31pp 100 3Q FY18 3Q FY19 3Q FY20 77 CUSTOMER REPEAT BOOKING RATE (ANNUALISED)(**) 69 +2 pp 41% 39% 38% 3Q FY18 3Q FY19 3Q FY20 FY15 3Q FY1
Slide 9: 9M Results FY20
Overview 9M Results FY20 Current trading & FY20 update Appendix 9
Slide 10: Highlights 9M FY20: Income Statement
2 INCOME STATEMENT (IN EUROS MILLION) 3Q VAR FY20 3Q 9M VAR FY20 9M Highlights 9M FY20 FY20 FY19 FY20 FY19 VS FY19 VS FY19 1. Revenue Margin increased by 8%, principally due to an REVENUE MARGIN 131.7 16% 114.0 412.9 8% 381.6 increase in Revenue Margin per booking of 6%. 2. Variable costs grew 8% dr
Slide 11: Highlights 9M FY20: Cash Flow Statement
2 CASH FLOW STATEMENT (IN EUROS MILLION) 3Q FY20 3Q FY19 9M FY20 9M FY19 Highlights 9M FY20 1. Net cash from operating activities improved by €40.0 ADJUSTED EBITDA (*) 29.6 26.5 86.8 79.1 million, mainly reflecting: NON RECURRING ITEMS -3.8 -1.9 -14.0 -3.1 In 9M, the lower outflow in working capital
Slide 12: Debt
2 DEBT 1. Benefits from the refinancing coming through. GROSS LEVERAGE RATIO (*) (Total Gross Financial debt / LTM Adjusted EBITDA) Interest expense on Notes and RCF decreased by 26% compared to the same period of last year, a reduction of €6.9 million in financial expenses, 4.4x -0.8x as a result o
Slide 13: Current Trading & FY20 Update
Overview 9M Results FY20 CURRENT TRADING & FY20 UPDATE Appendix 13
Slide 14: Current Trading & FY20 Update
3 CURRENT TRADING & FY20 UPDATE Bookings, following the completion of our strategic revenue model shift, have shown improving performance in the first three quarters of our fiscal year. This is as anticipated and guided to the market. This growth in bookings has accelerated during the third fiscal q
Slide 15: #1 Winner in Europe
3 #1 Winner in Europe 2 1 32% Significant revenue European diversification OTA flight market 2 share 1 World leading capabilities 1 2 1 WHY EDREAMS ODIGEO? 1 1 RoW Top 6 # Market position SOURCE: Internal analysis; Amadeus bookings data; Phocuswright European Travel Overview 2018 15
Slide 16: Appendix
Overview 9M Results FY20 Current trading & FY20 update APPENDIX 16
Slide 17: Diversification Revenue Continues Strong Growth
4 DIVERSIFICATION REVENUE CONTINUE WITH STRONG GROWTH AND 86% LARGER THAN OUR CLASSIC CUSTOMER REVENUE DIVERSIFICATION REVENUE MARGIN (IN € MILLION) +17% (IN EUROS MILLION) 9M FY15 9M FY19 9M FY20 CAGR CAGR +29% DIVERSIFICATION 89.2 169.2 217.9 17% CLASSIC CUSTOMER 165.8 145.5 117.2 -7% 217.9 CLASSI
Slide 18: Revenue Diversification Drives Growth in Rest of World Markets
4 REVENUE DIVERSIFICATION DRIVES GROWTH IN THE REST OF THE WORLD MARKETS, 21% CAGR OVER THE PAST 5 YEARS REST OF THE WORLD REVENUE MARGIN (IN € MILLION) +21% (IN EUROS MILLION) 9M FY15 9M FY19 9M FY20 CAGR CAGR +23% TOP 6 276.6 300.4 313.0 3% 99.9 REST OF THE WORLD 81.1 38.2 81.1 99.9 21% TOTAL 314.
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Slide 20: Glossary of Definitions
Glossary of Definitions Non-reconcilable to GAAP measures 1. Acquisition Cost per Booking Index refers to the most relevant marketing expenses incurred to acquire new customers (encompassing Paid search, Metasearch and Affiliates), divided by the total number of Bookings. For any given period, the r
Slide 21: Glossary of Definitions
Glossary of Definitions Other Defined Terms 15. Advertising and Metasearch Revenue represents revenue from other ancillary sources, such as advertising on our websites and revenue from our metasearch activities. Our management believes that the presentation of the Advertising and Metasearch Revenue
Slide 22: Glossary of Definitions
Glossary of Definitions Other Defined Terms 25. Fixed Costs per Booking means fixed costs divided by the number of bookings. See definitions of "Fixed costs" and "Bookings". 26. Non-recurring Items refers to share-based compensation, restructuring expenses and other income and expense items which ar