Slide 1: Results Presentation FY 2023
Results Presentation FY 2023 25th May 2023 1
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 presentation is extracted from the audite
Slide 3: Results Highlights
1. Results Highlights 2. Subscription company focused on leisure travel: eDO benefits from positive characteristics of both 3. Prime model proven to be a success - Another year of strategic delivery - Excellent FY23 Results 4. eDO investment highlights 5. Longer term - eDO has strong fundamental gro
Slide 4: Prime proven to be a success, delivering significant uplifts in profit margins
Prime proven to be a success, delivering significant uplifts in profit 1. margins, and record year in Bookings(1) and Revenues. Subscription company focused on leisure travel: eDO benefits from positive characteristics of both • Subscription business: a well proven growth model. • Leisure travel mar
Slide 5: Subscription company focused on leisure travel
Subscription company focused on leisure travel: eDO 2. benefits from positive characteristics of both 3. Prime model proven to be a success - Another year of strategic delivery - Excellent FY23 Results 4. eDO investment highlights 5. Longer term - eDO has strong fundamental growth potential well bey
Slide 6: Subscription models prove to show high growth
2. Subscription models prove to show high growth “ • A feature of subscription companies is that they show high growth and penetration over many years. • Companies like Costco have shown over 30 years of growth, Netflix over 20 years, Spotify over 13 years. • In addition, major subscription business
Slide 7: Leisure travel market: strong despite economic concerns
2. Leisure travel market: strong despite economic concerns, with good growth prospects SOLID GLOBAL DEMAND FOR AIR TRAVEL PASSENGER TICKET SALES BY PURCHASE DATE VS 2019 “ The air industry closed 2022 stronger than previous year. Once travel restrictions were lifted people have confirmed the strong
Slide 8: Consumers are prioritising travel over other discretionary spending
2. Consumers are prioritising travel over other types of discretionary spending “ CHANGES IN CONSUMER BUDGETS OVER THE NEXT 6 MONTHS 77% of Europeans plan to travel between January-June 2023, representing a 16% surge over the same period last year. Furthermore, Travelling (domestic or international)
Slide 9: Prime model proven to be a success – Another year of strategic delivery
Prime model proven to be a success – Another year of 3. strategic delivery 4. eDO investment highlights 5. Longer term - eDO has strong fundamental growth potential well beyond FY25 6. Appendix 9
Slide 10: Record Cash Revenue Margin and Marginal Profit uplift
Strong growth with record year in Cash Revenue Margin(*) and significant 3. Marginal Profit (*) uplift as maturity of Prime Members (*) increases Cash Revenue Margin (€M) (*) Cash Marginal Profit (€M) (*) +47% +54% 621 165 92 284 56% 46% 424 107 171 53 337 50% 40% 73 253 54 FY22 FY23 FY22 FY23 Non-P
Slide 11: Prime members: on track to reach 7.25 million
3. Prime members(*): on track with our guidance to reach 7.25 million by FY25 eDO ahead of implied run rate needed to achieve target. Prime net adds(**) are influenced by seasonality intra-year Implied Prime Member(*) quarterly run rate needed Quarterly Net Adds(**) Run Rate to achieve target (in 00
Slide 12: Household penetration needed in Top 6 markets
3. Prime members(*): on track with our guidance to reach 7.25 million by FY25 Only 4.5% average household penetration needed in Top 6 markets(**) to achieve our FY25 target: lower than current penetration of Prime in France at 4.6% GAGR FY18-FY23: Household Penetration (**) EDO FY19 EDO FY20 EDO FY2
Slide 13: Cash EBITDA: on track to meet target of over €180 million in FY25
Cash EBITDA(*): We are well on track to meet our self-imposed target of 3. over €180 million in FY25 Prime delivers significant uplifts in profit margins as the Prime member(*) base matures CASH MARGINAL PROFIT MARGIN (*) CONTINUED TO CASH EBITDA MARGIN (*) ALSO ACHIEVED VERY IMPROVE AS MATURITY OF
Slide 14: Strong growth in Cash EBITDA and improved margins
Strong growth in Cash EBITDA(*) and substantial improvement in margins as 3. the maturity of Prime members(*) increases P&L with increase in Prime Deferred Revenue Highlights FY23 1. Success of Prime clear on our total Bookings (*). Cash Revenue Margin (*) is at record levels 9% above pre COVID-19 (
Slide 15: Income Statement
3. Income Statement Highlights FY23 VAR. VAR. 1. Revenue Margin (*) increased by 49%, to €569.6 million, due to the 29% increase in Bookings (*) and 16% increase in Revenue Margin per Booking (*). 4Q FY23 4Q FY23 (IN EUROS MILLION) FY23 VS FY22 FY22 FY23 VS FY22 FY22 2. Variable costs (*) increased
Slide 16: Cash Flow Statement
3. Cash Flow Statement 4Q 4Q (IN EUROS MILLION) FY23 FY22 FY23 FY22 Highlights FY23 1. Net cash from operating activities decreased by €16.6 million, mainly ADJUSTED EBITDA (*) 15.7 2.9 33.0 3.0 reflecting: ADJUSTED ITEMS (*) 1.1 (3.2) (8.8) (10.9) • Working capital inflow of €69.4 million compared
Slide 17: eDO investment highlights
4. eDO investment highlights 5. Longer term - eDO has strong fundamental growth potential well beyond FY25 6. Appendix 17
Slide 18: Ability to capture new customers through the Prime programme
eDO has demonstrated the ability to capture new customers through the Prime 4. programme, despite further COVID-19 waves and recent political and macroeconomic context, more so as market recovers Delta Omicron Ukraine War + High Inflation 4.3 Share of new Prime 3.9 customers within Members(*) 3.6 Pr
Slide 19: In pole position in an attractive market
4. In pole position in an attractive market SIZEABLE MARKET AND ONE OF THE ATTRACTIVE GROWTH PROSPECTS EDO IS POSITIONED IN THE RIGHT LARGEST E-COMMERCE VERTICAL AFTER THE PANDEMIC SEGMENTS (ONLINE AND LEISURE) European Travel Market Size European Leisure Travel Market Online (€Bn) penetration (% ov
Slide 20: Within travel, eDO is the Global Flight Leader, Ex China
4. Within travel, eDO is the Global Flight Leader, Ex China #2 PLAYER IN FLIGHTS GLOBALLY GLOBAL FLIGHT REVENUE CY 2022 (€M) 1,139 #1 482 #2 345 #3 Source: Company data, Cash Revenue Margin (*) for eDO. Financial Releases published by Trip.com and Expedia. (*) Definitions of Non-GAAP measures on pag
Slide 21: eDO is unique in terms of profitability and growth
4. eDO is unique in terms of profitability and growth Revenues CAGR 2022-25E EBITDA (*) CAGR 2022-25E eDO 28% 58% Global OTAs (1) 21% 37% Global B2C Subscription (2) 11% 27% (*) Definitions of Non-GAAP measures on page 36-38 (1) Companies included: Booking Holding, Trip.com, Despegar, Expedia, lastm
Slide 22: Business model and track record position us to outperform
4. Regardless of economic environment, our business model and track record positions us to perform better than the industry These are the reasons why we think we will outperform the market: 1 2 Through Prime we We meet customer offer best prices, needs/preferences better value and customer than comp
Slide 23: A recognised leader in AI in Europe
4. eDreams ODIGEO, a recognised leader in AI in Europe: Always being a step ahead We have a proven track record of being a leader in AI in travel since 2014… 2014 2015 2016 2017 2019 2020-22 2023 Establishing one of Adopting an AI first Adopting AI driven At-scale deployment Early adopter of a Deplo
Slide 24: Lead in AI for customer and shareholders leveraging Prime
4. Our strategy over the past many years: lead in AI for customer and shareholders leveraging unique advantages of Prime AI DrivenTeams Unique Consumer Proposition i Superior Insights • All development teams i Across the entire user journey, we are leveraging utilise AI for greater the most advanced
Slide 25: Well positioned, well financed, on track to meet FY25 targets
4. Well positioned, well financed, on track to meet self-set FY25 targets Prime Members (*) >7.25M eDO Prime ARPU (*) “ eDO large potential: superior returns for shareholders and customers while transforming and revolutionising the FY25 ~€80 ” industry TARGETS Cash EBITDA (*) >€180M (*) See definiti
Slide 26: eDO on track to meet FY25 targets: Prime members
4. eDO has ample room for valuation to expand 1. eDO is on track to meet its FY25 targets a) eDO ahead of the run rate needed to achieve 7.25 million subscribers by FY25 +364k Run Rate 7.25 +421k +403k +323k +444k +399k +560k 4.3 3.9 +482k 3.6 +442k 3.2 +513k 2.7 +336k 2.2 1.7 1.2 1Q FY22 2Q FY22 3Q
Slide 27: eDO on track to hit Cash EBITDA FY25 target
4. eDO has ample room for valuation to expand 1. eDO is on track to meet its FY25 targets a) eDO on track to hit the Cash EBITDA (*) FY25 target of 180 million, of which 84% will be derived from the subscription business €180M 84% €84M €44M 59% 52% FY22 FY23 FY24E FY25E Prime weight Source: Company
Slide 28: Fastest growing in top line and EBITDA in the industry
4. eDO has ample room for valuation to expand 2. eDO is unique in terms of profitability and growth eDO is the fastest growing in top line and EBITDA(*) in the industry, well in excess of our peer groups Revenues CAGR 2022-25E 28% eDO EBITDA(*) CAGR 2022-25E 58% Source: Company data and FY25 targets
Slide 29: Strong positioning relative to peers creates value upside
4. eDO has ample room for valuation to expand 3. eDO’s strong positioning relative to peers creates significant opportunity for value upside eDO is trading at a meaningful discount vs eDO is the fastest growing in top line and consensus average valuations for Global OTAs EBITDA (*) in the industry a
Slide 30: Longer term growth potential well beyond FY25
Longer term - eDO has strong fundamental growth 5. potential well beyond FY25 6. Appendix 30
Slide 31: Strong fundamental growth potential from FY25 onwards
5. eDO has from FY25 onwards strong fundamental growth potential Increase household penetration on those countries in which we are present Three dimensions where we can capitalise on: Add new countries Customer segments Strong future growth 31
Slide 32: Appendix
6. Appendix 1. Results highlights 2. Subscription company focused on leisure travel: eDO benefits from both 3. Prime model proves to be a success - Another year of strategic delivery - Excellent FY23 Result 4. eDO investment highlights 5. Longer term - eDO has from FY25 onwards strong fundamental gr
Slide 33: ARPU: On track to meet FY25 guidance
6. ARPU: On track to meet FY25 guidance Our average revenue per user (ARPU), as guided, is trending towards mid €70s and then will converge with our FY25 guidance of €80 per member PRIME ARPU (*) EVOLUTION Prime Cash Revenue Margin (*) Prime members (*) (in euros) (million euros) (million) 284 4.3 8
Slide 34: Classic customer revenue outgrowing diversification
6. Classic Customer outgrowing Diversification revenue, which continues to grow, due to the strong growth in subscription fees from new members Revenue Margin Diversification 37% (In euros million) FY23 Var. FY23 vs FY22 FY22 386.4 Diversification 386.4 37% 281.0 281.0 Classic customer 97.5 158% 37.
Slide 35: Rest of the World grows more than Top 6
6. Rest of the World grows more than our Top 6 due to the success of Prime international expansion Revenue Margin TOP 6 46% (In euros million) FY23 Var. FY23 vs FY22 FY22 415.3 Top 6 415.3 46% 284.8 284.8 Rest of the world 154.3 58% 97.8 Total 569.6 49% 382.6 FY22 FY23 Rest of the World 12% 26% 27%
Slide 36: Glossary of Definitions
Glossary of Definitions Non-reconcilable to GAAP measures 1. Gross Bookings refers to the total amount paid by our customers for travel products and services booked through or with us (including the part that is passed on to, or transacted by, the travel supplier), including taxes, service fees and
Slide 37: Glossary of Definitions
Glossary of Definitions 15. EBITDA means operating profit/loss before depreciation and amortisation, impairment and profit/loss on disposals of non-current assets. This measure, although it is not specifically defined in IFRS, is generally used in the financial markets and is intended to facilitate
Slide 38: Glossary of Definitions
Glossary of Definitions 25. Revenue Margin means the IFRS revenue less cost of supplies. The Group's management uses Revenue Margin to provide a measure of its revenue after reflecting the deduction of amounts payable to suppliers in connection with the revenue recognition criteria used for products