Edreams Odigeo · BME:EDR
Edreams Odigeo — FY2020 Earnings Presentation
32 slides from Edreams Odigeo's earnings presentation, Jul 9, 2020
Slide 1: Results Presentation FY 2020
RESULTS PRESENTATION FY 2020 9th July 2020
Slide 2: Disclaimer
Disclaimer 1 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 aud
Slide 3: 1. Overview
1. Overview FY20 results update Adaptability of the business, strategy & innovation Closing remarks Appendix
Slide 4: Overview
1 OVERVIEW During FY20 we have made continued progress, performing well and growing strongly pre COVID-19 impact SOLID RESULTS, DESPITE COVID-19 IMPACT Bookings 4% below the previous year, a highly respectable result considering a reduction in Bookings of 53% in the last 5 weeks of FY20, once the pa
Slide 5: 2. FY20 results update
Overview 2. FY20 results update Adaptability of the business, strategy & innovation Closing remarks Appendix
Slide 6: Revenue diversification on track and the largest contributor to revenues
2 REVENUE DIVERSIFICATION ON TRACK AND THE LARGEST CONTRIBUTOR TO REVENUES Revenue diversification ratio (**) Revenue evolution (**) 5% +26 14% Diversification Classic customer 53% 44% 44% FY19 Classic suppliers 27% Advertising & meta FY15 FY19 FY20 37% Product diversification ratio (**) 3% +60 14%
Slide 7: Continued strategic progress as evidenced by our KPIs
2 CONTINUED STRATEGIC PROGRESS AS EVIDENCED BY OUR KPIS Mobile bookings as share of flight bookings (*) Acquisition cost per booking index (*) +26 -28 44% 39% 100 18% 81 72 FY15 FY19 FY20 Customer repeat booking rate (annualized)(**) FY15 FY19 FY20 +7 pp 58% (***) 55% 51% 46% FY15 FY19 FY20 (*) Defi
Slide 8: Income Statement Highlights FY20
2 INCOME STATEMENT Highlights FY20 1. Revenue Margin decreased by 1%, principally due to VAR VAR increase of revenue margin per booking but offset by lower 4Q 4Q 12M 12M (IN EUROS MILLION) FY20 FY20 bookings of -4% following a 53% reduction in the last 5 FY20 FY19 FY20 FY19 VS FY19 VS FY19 weeks of
Slide 9: Cash Flow Statement Highlights FY20
2 CASH FLOW STATEMENT Highlights FY20 1. Net cash from operating activities decreased by €176.8 million. mainly reflecting: 4Q 4Q 12M 12M (IN EUROS MILLION) Working capital outflow of €207.4 million was due to FY20 FY19 FY20 FY19 significant decrease of Bookings in March 2020 vs. March 2019 ADJUSTED
Slide 10: Adjusted EBITDA – Assessing COVID-19 impacts
2 ADJUSTED EBITDA – ASSESING COVID-19 IMPACTS WITHOUT COVID-19 WE WOULD HAVE EXPECTED TO END THE YEAR WITH AN ADJUSTED EBITDA OF €134.9 MILLION. 13% INCREASE YEAR-ON-YEAR 160 9.2 12.3 (9.3) 7.6 140 120 134.9 100 115.1 80 60 40 20 0 FY20 Reported Volumes Cancellations Bad debt and Fixed cost Implied
Slide 11: Update on COVID-19 impacts
2 UPDATE ON COVID-19 IMPACTS Despite solid pre coronavirus (COVID-19) high single to double digit growth rates for bookings, the COVID-19 outbreak has inevitably resulted in a meaningful reduction of demand ASSESING COVID-19 IMPACTS IMPACT IN BOOKINGS ● In response to the pandemic. many countries ha
Slide 12: Business model that has proven a strong cash generation up until COVID-19 effect
2 BUSINESS MODEL THAT HAS PROVEN A STRONG CASH GENERATION UP UNTIL COVID-19 EFFECT (IN EUROS MILLION) FY15 FY16 FY17 FY18 FY19 FY20 FY20E* 1. The consolidated financial statements have been prepared on a going concern basis, as Management ADJUSTED EBITDA 90.5 95.8 107.3 118.3 119.6 115.1 134.9 consi
Slide 13: 3. Adaptability of the business, strategy & innovation
Overview FY20 results update 3. Adaptability of the business, strategy & innovation Closing remarks Appendix
Slide 14: Adaptability of the Business Model
3 ADAPTABILITY OF THE BUSINESS MODEL 1. Solid Revenue and eDreams ODIGEO delivered solid compound annual growth rates over the past 5 years, EBITDA growth Revenue margin and Adjusted EBITDA, grew 4% and 5%, respectively. Revenue Margin (€ in millions) Adjusted EBITDA (€ in millions) 2. PRIME subscri
Slide 15: Adaptability of the Business Model
3 ADAPTABILITY OF THE BUSINESS MODEL 3. More than 80% of our costs are variable with ability to adapt and rapidly reduce fixed costs & CAPEX (*) Full detail on note 3.2 to the Consolidated Financial Statements Note: Already implemented measures which are expected to decrease our annualized FY21 fixe
Slide 16: Adaptability of the Business Model
3 ADAPTABILITY OF THE BUSINESS MODEL 4. Increasing diversification contributing to adaptability 5.Brand strength allow non-reliance on expensive paid channels Evolution of revenue geography Evolution of Revenue by source eDreams has the most branded queries among main flight OTAs in % of total Reven
Slide 17: Adaptability of the Business Model: Strong balance sheet
3 ADAPTABILITY OF THE BUSINESS MODEL 6. Strong balance sheet – Robust deleveraging profile Net leverage reduced by 49% over the past 5 years if we exclude COVID-19 impact in FY20. This shows eDreams ODIGEO robust deleveraging profile while creating an option for substantial long-term growth through
Slide 18: Strategy & Innovation – Scale really does matter
3 STRATEGY & INNOVATION – SCALE REALLY DOES MATTER Scale translating to advantages in classic flights and diversification 18
Slide 19: Strategy & Innovation: Large growth opportunities capitalize on our scale advantages
3 STRATEGY & INNOVATION: LARGE GROWTH OPPORTUNITIES CAPITALIZE ON OUR SCALE ADVANTAGES Vision “YOUR TRUSTED TRAVEL COMPANION” Strengthen and grow online Leverage strong travel Goals flights offering to build strong travel relationships relationships to serve customers’ full travel needs #1 #2 #3 #4
Slide 20: eDreams ODIGEO will adapt to meeting demand with products and services fit for purpose
EDREAMS ODIGEO WILL ADAPT TO MEETING DEMAND WITH PRODUCTS AND 3 SERVICES FIT FOR PURPOSE AND CUSTOMERS’ NEEDS HOW DO WE SEE THE TRAVEL INDUSTRY CHANGING? ▪ Strong long-term underlying growth fundamentals of the holiday industry customers are beginning to look to the future with searches remain Risin
Slide 21: What is winning in post COVID-19 world
3 WHAT IS WINNING IN POST COVID-19 WORLD CUSTOMER DEMAND HOW WE WIN CUSTOMER SEGMENT • Leisure, not corporate GEOGRAPHY • Certain markets are likely to manage better COVID-19 and thus show greater growth • Europe • Need to be able to identify and seize these • Expansion markets opportunities PRODUCT
Slide 22: What have we been doing since lockdown
3 WHAT HAVE WE BEEN DOING SINCE LOCKDOWN PRIME CUSTOMER CONTENT GEOGRAPHY SERVICE • Rolled out PRIME for • Servicing • Creating • Developing hotels to all 4 key automation and multi-content improved offering markets omni channel - platform for several • Testing new 10% complete • Integrated countrie
Slide 23: 4. Closing remarks
Overview Adaptability of the business, strategy & innovation FY20 results update 4. Closing remarks Appendix
Slide 24: In Summary
4 IN SUMMARY Our business will emerge strongly and well positioned from the crisis. We will have sufficient funding available to increase marketing spend to meet the anticipated increase in demand. We have a liquidity position Pro-Forma of €142 million at the end of June, which could be used if need
Slide 25: Why eDreams ODIGEO? Winner in Europe
4 2 #1 1 Winner in Europe 32% Significant revenue European 2 diversification OTA flight 1 market share 1 2 World leading capabilities 1 1 1 Why eDreams ODIGEO? RoW Top 6 Market position Source: Internal analysis; Amadeus bookings data; Phocuswright European Travel Overview 2019 25
Slide 26: 5. Appendix
Overview FY20 results update Adaptability of the business, strategy & innovation Closing remarks 5. Appendix 26
Slide 27: Diversification revenue continues with strong growth
5 DIVERSIFICATION REVENUE CONTINUE WITH STRONG GROWTH AND 78% LARGER THAN OUR CLASSIC CUSTOMER REVENUE REVENUE MARGIN Diversification (In € million) FY15 FY19 FY20 CAGR +19% Diversification CAGR 116.4 236.5 278.0 19% +18% Classic customer 230.1 195.1 156.5 -7% Classic supplier 66.3 74.3 76.3 3% 236.
Slide 28: Revenue diversification drives growth in the rest of the world markets
5 REVENUE DIVERSIFICATION DRIVES GROWTH IN THE REST OF THE WORLD MARKETS. 21% CAGR OVER THE PAST 5 YEARS REVENUE MARGIN Rest of the world (In € million) FY15 FY19 FY20 CAGR +18% TOP 6 CAGR 381.7 418.1 405.2 1% +7% Rest of the world 54.2 114.9 123.4 18% Total 436.0 533.0 528.7 4% 114.9 123.4 CAGR pre
Slide 29: Bonus Shares Issue
5 BONUS SHARES ISSUE On 7th July 2020, in the context of its relocation to Spain, the Board of Directors has resolved to issue 8,318,487 new shares, corresponding to the maximum amount of shares available pursuant to the authorized capital included in the current Articles of Association of the Compa
Slide 30: 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 31: 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 32: 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