Edreams Odigeo · BME:EDR
Edreams Odigeo — H1 FY2018 Earnings Presentation
35 slides from Edreams Odigeo's earnings presentation, Nov 29, 2017
Slide 1: First Half Results Presentation
First Half Results Presentation Fiscal Year 2018 H1 Results, ending September 30th 2017 November 29th 2017
Slide 2: Disclaimer
First Half FY 2018 Results Presentation Disclaimer This presentation is to be read as an introduction to the unaudited 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 th
Slide 3: First Half Results Highlights
First Half Results Highlights • H1 Results Highlights • KPIs • Strategy Update • Financial Results • Outlook • Appendix
Slide 4: Results Highlights
First Half FY 2018 Results Presentation Results Highlights Solid performance ▪ Driven by accelerated investments in mobile, change of our revenue model and revenue diversification as well as leveraging our scale H1 performance was driven by: ▪ Solid growth in Revenue Margin* (+6%) and Adjusted EBITD
Slide 5: Results on track to meet raised FY 2018 guidance
First Half FY 2018 Results Presentation Results on track to meet raised FY 2018 guidance Bookings (*) Revenue Margin (*) Adjusted EBITDA (*) In thousands +3% In € million In € million 58.7 5,826 5,873 254.5 241.0 54.1 230.8 5,381 +22% +8% 44.4 +8% +1% +4% +6% H1 H1 H1 H1 H1 H1 H1 H1 H1 FY 16 FY 17 F
Slide 6: KPIs
KPIs • H1 Results Highlights • KPIs • Strategy Update • Financial Results • Outlook • Appendix 6
Slide 7: Revenue diversification strategy tracked through performance indicators
First Half FY 2018 Results Presentation Success in our revenue diversification strategy is tracked through a series of performance indicators Revenue diversification ratio Product diversification ratio Acquisition cost per booking index Repeat booking Share of mobile bookings 77
Slide 8: Growing share of revenues coming from our diversification strategy
First Half FY 2018 Results Presentation Growing share of revenues coming from our diversification strategy Revenue diversification ratio (*) Revenue split Diversification revenue Classic Supplier revenue Revenue diversification ratio Classic customer revenue Advertising & Meta 32% 28% 6% 14% 32% 48%
Slide 9: Increasing ability to add value to customers, more attachments
First Half FY 2018 Results Presentation Increasing ability to add value to customers, booking with more attachments Product diversification ratio 48% Product diversification ratio (*) 44% Q2 ‘17 Q2 ‘18 (*) Definitions of Non-GAAP measures on page 33-35 9
Slide 10: Decreasing acquisition cost versus index of Q4 FY15
First Half FY 2018 Results Presentation Decreasing acquisition cost v. index of Q4 FY 15 before start of transformation Acquisition cost per booking Index 100 -6 percentage points 86 80 Acquisition cost per booking index (*) Q4 ’15 Q2 ’17 Q2 ‘18 Baseline (*) Definitions of Non-GAAP measures on page
Slide 11: Stable repeat rates with positive YoY
First Half FY 2018 Results Presentation Stable repeat rates with positive YoY Customer repeat booking rate; Annualised view 44% 45% Repeat booking (*) Q2 ‘17 Q2 ‘18 (*) Definitions of Non-GAAP measures on page 33-35 11
Slide 12: Strong growth in Mobile Bookings, beating industry average
First Half FY 2018 Results Presentation Strong growth in Mobile Bookings, beating industry average Mobile as share of flight bookings 37% EU industry average 29% +13pp Gap vs Industry +8pp Average 24% 21% (**) (*) Q2 FY 2017 Q2 FY 2018 Share of mobile bookings (*) Source: Phocuswright European Onlin
Slide 13: Strategy Update
Strategy Update • H1 Results Highlights • KPIs • Strategy Update • Financial Results • Outlook • Appendix 13
Slide 14: Short-term softening of topline driven by price transparency changes
STRATEGY UPDATE – CHANGE IN REVENUE MODEL As expected a short-term softening of topline performance was driven by price transparency changes Now Future Traffic Conversion Repeat rate Marketing spend Attach rate per booking Decrease in traffic Increase in conversion Uplift in repeat rate as Reduction
Slide 15: Change in revenue model proved successful through price transparency
First Half FY 2018 Results Presentation STRATEGY UPDATE – CHANGE IN REVENUE MODEL Change in revenue model proved to be successful, through initial results from price transparency initiatives introduced from September 2016 – Case study Price transparency initiative has increased loyalty through great
Slide 16: Mobile investments on track and delivering desired results
First Half FY 2018 Results Presentation STRATEGY UPDATE - MOBILE Mobile investments on track and delivering the desired results, committed to long term vision WHERE ARE WE TODAY NEXT SETPS PRE-BOOKING POST-BOOKING PRE-BOOKING POST-BOOKING Mobile platform We do not offer Launch ancillary NOW offers a
Slide 17: Dynamic packages: improvements in traffic, conversion and revenue margin
First Half FY 2018 Results Presentation STRATEGY UPDATE – REVENUE DIVERSIFICATION Dynamic packages (DP) - Improvements in traffic, conversion and revenue margin per booking have led to strong results, significantly ahead flight business performance x2 A/B Meta ACHIEVED IN vs flight booking H1 FY 18
Slide 18: New dynamic packages mobile web front and meta result page
STRATEGY UPDATE – REVENUE DIVERSIFICATION New dynamic packages (DP) mobile web front and meta result page making hotel content accessible when booking a flight Old DP front New DP front New Dynamic Package content for customers coming from Meta, who had searched for a flight only 18
Slide 19: Financial Results
Financial Results • H1 Results Highlights • KPIs • Strategy Update • Financial Results • Outlook • Appendix 19
Slide 20: Income statement
First Half FY 2018 Results Presentation Income statement 3M Sept 3M Sept 6M Sept 6M Sept FY17 FY18 Var. FY17 FY18 Var. Key highlights H1 FY 2018 (In € million) ▪ Revenue margin up 6% Revenue margin 116.8 129.2 11% 241.0 254.5 6% ▪ Variable Costs grew in line with bookings. Reductions in Variable cos
Slide 21: Cash flow statement
First Half FY 2018 Results Presentation Cash flow statement 3M Sept 3M Sept 6M Sept 6M Sept Key highlights Q2 FY 2018 (In € million) FY17 FY18 FY17 FY18 Adjusted EBITDA (*) ▪ Cash flow from operations increased by €14.3 million: 25.1 31.6 54.1 58.7 – Increase adj. EBITDA by €6.5m Non recurring items
Slide 22: Debt and leverage
First Half FY 2018 Results Presentation Debt ▪ Gross Leverage ratio was down to 3.84x in September 2017 Gross Leverage Ratio (*) vs 4.09x in September 2016, which gives us ample headroom (Total Gross Financial Debt / LTM Adjusted EBITDA ) vs our covenant ratio. 7 6 x LTM Adj. EBITDA ▪ Despite cash o
Slide 23: Outlook
Outlook • H1 Results Highlights • KPIs • Strategy Update • Financial Results • Outlook • Appendix 23
Slide 24: Reiterate full year Outlook
First Half FY 2018 Results Presentation FY 2018 TARGETS Reiterate full year Outlook Outlook Statement Outlook for FY 2018 We will continue to invest to build a long-term highly attractive business: Bookings ▪ Evolving our pricing and communication of that pricing ▪ Offering an exciting range of inno
Slide 25: Financial policy in line with strategy
First Half FY 2018 Results Presentation OUR VISION - LONGER TERM TARGETS Financial policy in line with strategy We will control the transformation pace to continue Increased long-term target of EUR to grow absolute EBITDA 130-145m EBITDA by 2020 We expect a period of softer top-line performance
Slide 26: In summary…
First Half FY 2018 Results Presentation In summary… World-class product Customer value Growing market Industry structure and technology Mobile leader Scale Market leadership Investment Results 26
Slide 27: Appendix
Appendix • H1 Results Highlights • KPIs • Strategy Update • Financial Results • Outlook • Appendix 27
Slide 28: Flight and Non-Flight Bookings
First Half FY 2018 Results Presentation FLIGHT AND NON-FLIGHT BOOKINGS Revenue diversification drives growth in Flight Business Flight - Bookings Flight In ‘000 +2% ▪ As guided to the market, H1 result was driven by: +2% 5,328 5,431 – Accelerated investment in the transition to mobile and evolution
Slide 29: Flight and Non-Flight Revenue Margin
First Half FY 2018 Results Presentation FLIGHT AND NON-FLIGHT REVENUE MARGIN Revenue diversification drives growth in Flight Business Flight – Revenue Margin Flight In € million +8% ▪ In H1 FY 2018, revenue margin performance driven by: +12% 189.0 203.7 – Bookings, already explained in previous slid
Slide 30: Core and Expansion Bookings
First Half FY 2018 Results Presentation CORE AND EXPANSION BOOKINGS Revenue diversification drives growth in the Expansion Markets Core- Bookings Core In ‘000 -2% ▪ In FY 2018, strategic initiatives on track and delivering the desired result, as guided to 3,027 2,965 the market at our full year resu
Slide 31: Core and Expansion Revenue Margin
First Half FY 2018 Results Presentation CORE AND EXPANSION REVENUE MARGIN Revenue diversification drives growth in the Expansion Markets Core – Revenue Margin Core In € million +0% ▪ In H1 FY 2018, revenue margin performance driven by: – Bookings, already explained in previous slide. +2% 136.4 136.7
Slide 32: eDreams ODIGEO
eDreams ODIGEO
Slide 33: Glossary of Definitions
First Half FY 2018 Results Presentation Glossary of Definitions Non-reconcilable to GAAP measures "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
Slide 34: Glossary of Definitions
First Half FY 2018 Results Presentation Glossary of Definitions Other Defined Terms “Bookings” refers to the number of transactions under the agency model and the principal model as well as transactions made under white label arrangements. One Booking can encompass one or more products and one or
Slide 35: Glossary of Definitions
First Half FY 2018 Results Presentation Glossary of Definitions Other defined terms Classic Customer Revenue represents customer revenue other than Diversification Revenues earned through flight service fees, cancellation and modification fees, tax refunds and mobile application revenue. Our manag