Edreams Odigeo · BME:EDR
Edreams Odigeo — H1 2020 Earnings Presentation
41 slides from Edreams Odigeo's earnings presentation, Nov 19, 2019
Slide 1: Results Report 1H FY 2020
RESULTS REPORT 1H FY 2020 19th November 2019 eDreams ODIGEO
Slide 2: Index
eDreams ODIGEO INDEX 1. A brief look at eDreams ODIGEO and KPIs 2. Business Performance 3. Financial Review 4. Other information 5. Condensed Consolidated Interim Financial Statements and Notes 6. Glossary 7. Reconciliation eDreams ODIGEO 2
Slide 3: A brief look at eDreams ODIGEO and KPIs
eDreams ODIGEO 1. A brief look at eDreams ODIGEO and KPIs 1.1 KPIs 1.2 CEO letter 1.3 Results Highlights 1.4 Financial Policy 1.5 Outlook 3
Slide 4: 1.1 KPIs
eDreams ODIGEO 1.1 KPIs €57.2M 5.8M €281.2M €20.1M 48% 80% Bookings Revenue Diversification Product Adjusted YoY +0.4% Margin Adjusted Revenue Diversification EBITDA (From 5.8M) YoY +5% Net Income +7pp Ratio YoY +9% (From €267.6M) YoY +63% (From 41% of total) +16pp (From 64%) (From €52.6M) (From €12
Slide 5: 1.2 CEO Letter
eDreams ODIGEO 1.2 CEO Letter We are using this scale advantage and product development capabilities to successfully deliver additional products and services to our customers beyond flights. Today we now sell 80 additional products for every 100 flights sold whereas just 5 years ago it was 25, growi
Slide 6: 1.3 Results Highlights and 1.4 Financial Policy
eDreams ODIGEO 1.3 RESULTS HIGHLIGHTS 1.4 FINACIAL POLICY Performance in line with our guidance Our overriding objective is to generate value for our shareholders, through both share Bookings returned to growth, following the completion of our strategic revenue model price appreciation and event
Slide 7: 1.5 Outlook
eDreams ODIGEO 1.5 OUTLOOK We expect FY20 to be a much better year than FY19, but it will still not reflect all our underlying potential as we have major markets with less than 12 months with the new revenue model. Our results in 2Q have been in line with the guidance. From 3Q onwards we expect grow
Slide 8: Business Performance
eDreams ODIGEO 2. Business Performance 2.1 Business Review 2.2 Product 2.3 Geography 2.4 Financial KPIs 8
Slide 9: 2.1 Business Review
eDreams ODIGEO Overall, we are delighted by the rapid progress of revenue diversification and product 2.1 BUSINESS REVIEW diversification. We are particularly pleased with dynamic packages and ancillaries as revenues increased over 30% year-on-year in both categories. However, some other areas are n
Slide 10: 2.2 Product
eDreams ODIGEO 2.2 PRODUCT Diversification Revenue continues strong growth, now 69% larger than our Classic Customer Revenue DIVERSIFICATION Revenue Margin (€ million) 1H 1H 1H +18% CAGR 1H 1H FY15 FY19 FY20 CAGR +20% Diversification 116.4 118.0 142.1 0% 142.1 Classic Customer 114.2 101.8 84.3 -6% 1
Slide 11: 2.3 Geography
eDreams ODIGEO 2.3 GEOGRAPHY Revenue diversification drives growth in the Rest of the World markets, 22% CAGR over the past 5 years REST OF THE WORLD Revenue Margin (€ million) 1H 1H 1H +22% CAGR 1H 1H FY15 FY19 FY20 CAGR +22% France 84.9 69.2 74.8 -2% 66.9 Spain + Italy 48.0 60.6 56.6 3% 54.7 Germa
Slide 12: 2.4 Financial KPIs
eDreams ODIGEO 2.4 FINANCIAL KPIs Revenue diversification ratio (*) Customer repeat booking rate (annualised) (**) +7 +2 pp pp 45% 46% 44% 41% 48% 32% 2Q FY18 2Q FY19 2Q FY20 2Q FY18 2Q FY19 2Q FY20 Product diversification ratio (*) Acquisition cost per booking index +16 pp 80% -25pp 64% 50% 100 2Q
Slide 13: Financial Review
3. Financial Review 3.1 Summary Income Statement 3.2 Summary Balance Sheet 3.3 Summary Cash Flow Statement 3.4 Efficient Debt Management
Slide 14: 3.1 Summary Income Statement and 3.2 Summary Balance Sheet
eDreams ODIGEO 3.1 SUMARY INCOME STATEMENT 3.2 SUMMARY BALANCE SHEET 2Q Var 2Q 6M Var 6M 30th Sept 30th Sept FY20 vs FY19 vs (in € million) 2019 2018 FY20 FY19 FY20 FY19 (in € million) FY19 FY18 Total fixed assets 1054.1 1056.4 Revenue margin 139.7 5% 132.9 281.2 5% 267.6 Variable costs -89.3 5% -85
Slide 15: 3.3 Summary Cash Flow Statement and 3.4 Efficient Debt Management
eDreams ODIGEO 3.3 SUMMARY CASH FLOW STATEMENT 3.4 EFFICIENT DEBT MANAGEMENT 2Q 2Q 6M 6M (in € million) FY20 FY19 FY20 FY19 Benefits from the refinancing coming through. Financial loss excluding refinancing costs in FY19 decreased Adjusted EBITDA 29.1 26.5 57.2 52.6 by 29% compared to the same perio
Slide 16: Other information
eDreams ODIGEO 4.1 SHAREHOLDER INFORMATION The subscribed share capital of eDreams ODIGEO at September 2019 is €11,010 thousand divided into 110,098,600 shares with a par value of ten euros cents (€0.10) each, all of which are fully paid. As at 30th September 2019, the Group had 40,559 treasury shar
Slide 17: Condensed Consolidated Interim Financial Statements and Notes
5. Condensed Consolidated Interim Financial Statements and Notes For the six-month period ended 30th September 2019 eDreams ODIGEO 17
Slide 18: Condensed Consolidated Interim Income Statement
eDreams ODIGEO Condensed Consolidated Interim Income Statement Condensed Consolidated Interim Statement of Other (Thousands of euros) Comprehensive Income (Thousands of euros) Unaudited Unaudited Notes Unaudited Unaudited 6 months ended 6 months ended 6 months ended 6 months ended 30 th September 20
Slide 19: Condensed Consolidated Interim Balance Sheet Statement
eDreams ODIGEO Condensed Consolidated Interim Balance Sheet Statement (Thousands of euros) Notes Unaudited Audited Notes Unaudited Audited th st th st ASSETS 30 September 2019 31 March 2019 EQUITY AND LIABILITIES 30 September 2019 31 March 2019 Non-current assets Shareholders' equity Goodwill 12 719
Slide 20: Statement of Changes in Equity and Cash Flow Statement
eDreams ODIGEO Condensed Consolidated Interim Statement of Condensed Consolidated Interim Cash Flow Changes in Equity Statement (Thousands of euros) (Thousands of euros) Notes Unaudited Unaudited 6 months ended 6 months ended th th Notes Share Share Other Treasury Profit & Foreign Total 30 September
Slide 21: Notes to the Condensed Consolidated Interim Financial Statements
eDreams ODIGEO to continue innovating and providing customers with a seamless travel experience as the leading one- Notes to the Condensed Consolidated Interim stop-shop for travel in Europe. Financial Statements In Barcelona, the Group has reached an agreement with an international leader specializ
Slide 22: Basis of Presentation
eDreams ODIGEO 2.6 Authorization to issue shares The accounting policies used in the preparation of these Condensed Consolidated Interim Financial Statements as of and for the six-month period ended 30th September 2019 are the same as those applied in On 30th September 2019, the general meeting of s
Slide 23: Earnings per Share and Seasonality of Business
eDreams ODIGEO 3.4 Changes in consolidation perimeter 5. EARNINGS PER SHARE On 9th July 2019, eDreams SRL merged as absorbing entity with Opodo Italia SRL. The basic earnings per share are calculated by dividing the profit attributable to equity holders of the Company by the average number of shares
Slide 24: Segment Information and Revenue Margin
eDreams ODIGEO Unaudited 6. SEGMENT INFORMATION th 6 months ended 30 September 2018 France Southern Northern Total Top 6 Rest of the TOTAL The Group reports its results in geographical segments based on how the Chief Operating Decision Maker Europe Europe Markets World (CODM) manages the business, m
Slide 25: Personnel Expenses and Depreciation and Amortization
eDreams ODIGEO 8. PERSONNEL EXPENSES 9. DEPRECIATION AND AMORTIZATION 8.1 Personnel expenses Unaudited Unaudited 6 months ended 6 months ended th th Unaudited Unaudited 30 September 2019 30 September 2018 6 months ended 6 months ended th th Depreciation of tangible assets (2,658) (2,834) 30 Septembe
Slide 26: Financial Income and Expense and Goodwill
eDreams ODIGEO A large portion of the other operating expenses is variable costs, directly related to volume of bookings or transactions processed. 12. GOODWILL IT expenses mainly consist of technology maintenance charges and hosting expenses. The increase in IT A detail of the goodwill movement by
Slide 27: Other Intangible Assets and Equity
eDreams ODIGEO 13. OTHER INTANGIBLE ASSETS 15. EQUITY The other intangible assets at 30th September 2019 movement breakdown is as follows: Unaudited Audited st Balance at 31 March 2019 (Audited) 320,038 th 30 September 2019 st 31 March 2019 Acquisitions 13,481 Amortization (see note 9) (11,975) Shar
Slide 28: Share-Based Compensation
eDreams ODIGEO The Financial Intermediary performs the operation regulated by the liquidity contract in the Spanish As at 30th September 2019 5,202,476 rights have been granted since the beginning of the plan under the regulated markets, through the market of orders, according to the contracting rul
Slide 29: Financial Liabilities
eDreams ODIGEO 17. FINANCIAL LIABILITIES The SSRCF Agreement includes a financial covenant, the Consolidated Total Gross Debt Cover ratio, calculated as follows: The Group debt and other financial liabilities at 30th September 2019 and 31st March 2019 are as follows: Total Gross Debt Cover ratio = G
Slide 30: Provisions and Fair Value of Debt
eDreams ODIGEO 17.2 Fair value measurement of debt 18. PROVISIONS Unaudited Total net Level 1 : Level 2 : Level 3 : Fair value th Unaudited Audited 30 September 2019 book value Quoted Internal Internal th st 30 September 2019 31 March 2019 of the class prices and model using model using cash observa
Slide 31: Off-Balance Sheet Commitments and Related Parties
eDreams ODIGEO 19. OFF-BALANCE SHEET COMMITMENTS 20. RELATED PARTIES 19.1 Rental commitments There have been no transactions or balances with related parties during the periods ended on 30th September 2019 and 31st March 2019, other than those detailed below. The Group rentals are mainly composed of
Slide 32: Contingencies and Provisions
eDreams ODIGEO 20.2 Board of Directors 21. CONTINGENCIES AND PROVISIONS During the period ended 30th September 2019 the independent members of the Board received a total remuneration for their mandate of €120 thousand (€120 thousand during the period ended 30th September 21.1 Insurance premium tax 2
Slide 33: Subsequent Events
eDreams ODIGEO 21.4 Payroll tax The Group expects to collect the amount corresponding to fines paid in excess within 1 year, so an account receivable has been recognized for €0.3 million. The Group considers that there is a possible risk of assessment by tax authorities in respect of salary tax (“ta
Slide 34: Consolidation Scope
eDreams ODIGEO 23. CONSOLIDATION SCOPE As at 30th September 2019 the companies included in the consolidation are as follows: Name Location / Registered Office Line of business % interest % control eDreams ODIGEO S.A. 4, rue du Fort Wallis, L-2714 (Luxemburg) Holding Parent 100% 100% company Opodo Li
Slide 35: Glossary
eDreams ODIGEO 6. Glossary 35
Slide 36: Glossary of Definitions
eDreams ODIGEO Gross Financial Debt means total financial liabilities considering financing cost capitalized plus accrued Glossary of definitions interests and overdraft. It includes both non-current and current financial liabilities. This measure offers to the reader a global view of the Financial
Slide 37: Other Defined Terms
eDreams ODIGEO Other defined terms Fixed Costs per Booking means fixed costs divided by the number of bookings. See definitions of "Fixed costs" and "Bookings". Advertising and Metasearch Revenue represents revenue from other ancillary sources, such as advertising on our websites and revenue from ou
Slide 38: Reconciliation
eDreams ODIGEO 7. Reconciliation 38
Slide 39: Reconciliation of APM & Other Defined Terms
eDreams ODIGEO Reconciliation of APM & Other Defined Terms Revenue Margin, Revenue Margin per booking, Diversification (Thousands of euros, figures for the period ended on September 2019 and September 2018) revenue EBIT, EBITDA, Adjusted EBITDA Unaudited Unaudited 6 months ended 6 months ended th th
Slide 40: Gross Financial Debt, Net Financial Debt and Adjusted Net Income
eDreams ODIGEO Gross Financial Debt, Net Financial Debt Adjusted Net Income Unaudited Audited Unaudited Unaudited 6 months ended 6 months ended 30th September 2019 31st March 2019 th th 30 September 2019 30 September 2018 Non-current financial liabilities 421,830 423,274 Current financial liabilitie
Slide 41: Responsibility Statement
eDreams ODIGEO S.A. Luxembourg, 13" November 2019 In representation of The Board of Directors eDreams ODIGEO Societé Anonyme 4, rue du Fort Wallis L- 2714 Luxembourg Grand Duchy of Luxembourg Dana Dunne CEO RESPONSIBILITY STATEMENT We confirm that to the best of our knowledge that: 1. The Condensed