On The Beach Group Plc · LSE:OTB
On The Beach — H1 2022 Earnings Presentation
22 slides from On The Beach's earnings presentation, May 24, 2022
Slide 1: H1 22 Results Presentation
H1 22 RESULTS PRESENTATION Our vision is to become Europe’s leading online retailer of beach holidays 24 May 2022
Slide 2: Agenda and Cautionary Statement
AGENDA H1 22 Financial Performance CAUTIONARY STATEMENT Shaun Morton - CFO This presentation may contain certain forward-looking statements with respect to the financial condition, results, operations and businesses of the Company. Forward looking statements are sometimes, but not always, identified
Slide 3: HY Financial Performance
Shaun Morton Chief Financial Officer HY Financial Performance
Slide 4: H1 FY22 Overview
H1 FY22 Overview ➢ Early H1 trading heavily disrupted by the emergence of the Omicron variant of COVID-19 ➢ Significant strengthening of traffic and booking volumes since restrictions were eased mid-Jan ➢ Strong sales momentum across core and expansion areas including premium, long haul and B2B ➢ De
Slide 5: The premium segment of the market has recovered more quickly
The premium segment of the market has recovered more quickly Overall Sales vs FY19 80% ➢ Sales for the six months are up 6% vs FY19, despite heavily disrupted 60% trading for the majority of the period 40% 20% ➢ Sales for premium holidays with 5* hotels vs FY19 are up 95% and 0% 151% in the 10 weeks
Slide 6: Monthly sales by departure month
Monthly sales by departure month Winter 21/22 down (2%) v FY19 Summer 22, up +22% v FY19 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct FY19 FY22 6
Slide 7: 30% growth in average booking value vs H1 19
30% growth in average booking value vs H1 19 Customers Strategic areas of spending more to growth get more Package Holiday Mix B2B Ancillary uptake Premium (4/5*) Duration & party size Destination (incl LH) Other Inflation 7
Slide 8: Profit and Loss Account – Group
Profit and Loss Account – Group H1 22 H1 21 H1 19 3 YoY ➢ Bookings +297% YOY and (19%) vs FY19 % Bookings '000 219.0 55.2 270.6 (19%) ➢ The majority of the period was disrupted by COVID-19 Booked Sales £'m 385.8 91.5 365.4 6% ➢ The market started to recover in January H1 22 H1 21 H1 19 3 YoY ➢ Booke
Slide 9: Profit and Loss Account – OTB Segment
Profit and Loss Account – OTB Segment H1 22 H1 21 H1 19 3 YoY ➢ Revenue of £36.7m, +266% YOY % Bookings '000 207.6 52.7 261.0 (20%) ➢ £0.1m adjustment to revenue for COVID cancellations (H1 21: £6.8m) Booked Sales £'m 342.8 80.4 332.8 3% ➢ Revenue stated net of holiday perks costs H1 22 H1 21 H1 19
Slide 10: Profit and Loss Account – B2B segments
Profit and Loss Account – B2B segments H1 22 H1 21 H1 19 3 YoY % Classic Collection Holidays (Classic) Bookings '000 4.2 1.1 7.0 (41%) Booked Sales £'m 27.8 8.2 29.1 (4%) ➢ As a principal Classic accounts for revenue on a "travelled" basis and reports revenue on a gross basis £m £m £m Statutory Reve
Slide 11: Balance Sheet
Balance Sheet H1 22 H1 21 ➢ Seasonal cash flow requirements are covered by a revolving credit facility (RCF) £m £m which is drawn down as required Intangible assets 73.3 76.8 ➢ At 31 March 2022, Cash was £16.8m (31 March 2021: £30.0m) Tangible assets 9.5 9.0 Investment Property - 0.6 ➢ Trade and oth
Slide 12: Cash Flow
Cash Flow H1 22 H1 21 Change ➢ At 31 March 2022, Cash was £16.8m (31 March 2021: £30.0m) £m £m % ➢ Total cash balances including amounts held in trust of £115.9m Loss before Tax (7.0) (21.6) (68%) Adjustments for: ➢ Group has committed, undrawn facilities of £75m Depreciation and amortisation 6.0 5.
Slide 13: Simon Cooper – Strategy
Simon Cooper Chief Executive Officer Strategy
Slide 14: OTB Growth Strategy
OTB Growth Strategy Post Covid, a huge opportunity exists to grow share of core and adjacent markets. 4 United Kingdom (uk) To attract the widest possible audience of beach holidaymakers Europe To support the integration and revenue expansion of beach focused brands Long Haul Growth Beach +4m pax —|
Slide 15: Executive Summary
Executive Summary Strategy to capture share in key segments of core market and identified expansion areas 1. BRAND. Materially invest to enhance the proposition and build the brand: Capture share in the core value segment Increase penetration of premium segment Evolve brand positioning from se
Slide 16: Brand activity
Brand activity Grow brand traffic and consideration OTB Trust Pilot score Enhanced Proposition: Investment in airport fast track for all customers Free lounge for customers booking premium holidays in S22 £5m of investment in COVID tests, airport lounges and airport security fast track Bra
Slide 17: Hotel supply
Hotel supply Leverage existing capabilities to further optimise supply Direct contracting – share of hotel sales 100% Direct bookings now > 90%: 90% 80% ― Margin benefit vs those reliant on bedbanks 70% ― Closer to the hotel and the customer 60% ― Ability to build and develop hotelier relationship
Slide 18: Flight supply
Flight supply Build and diversify access to flight supply Capacity by beach leisure destination (m seats) 35 +3% 30 Summer capacity to beach leisure destinations surpasses pre pandemic levels 25 -3% 20 LCCs / Tour Ops layering on incremental capacity for S22 relative to S19: 15 +19% 10 New ent
Slide 19: Invest in talent and technology to extend core capabilities
Invest in talent and technology to extend core capabilities Evolving our platform will allow us to take advantage of opportunities post COVID Create conditions to support the attraction, development and retention of talent across the organisation Enable colleagues to work securely from anywhere
Slide 20: Expansion opportunities: B2B, Long haul and International
Expansion opportunities: B2B, Long haul and International B2B TTV A huge opportunity exists to attract a wider audience of beach holidaymakers B2B: ― Slower recovery of the B2B market since the emergence of Omicron ― Yet total B2B sales in the YTD are up 43% on FY19 Long haul: ― LH has benefitte
Slide 21: Outlook
Outlook Strong sales momentum has continued into early H2, however visibility remains limited Current trading ― Sales have remained resilient and are 33% ahead of FY19 in the 8 weeks to 22 May 2022 ― Visibility of the near term outlook for the UK outbound travel industry is limited ― Customers are
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