HomeToGo SE · XETR:HTG
HomeToGo — Investor Day (November 2022)
40 slides from HomeToGo's investor day presentation, Nov 10, 2022
Slide 1: Strategy Update – Capital Markets Day 2022
STRATEGY UPDATE Capital Markets Day 2022 Dr. Patrick Andrae, Co-Founder & CEO 10 November 2022 1
Slide 2: Our Vision
Our Vision making incredible homes easily accessible to everyone I Trulli di Carole (Ostuni, Apulia)
Slide 3: The fragmented vacation rental market
The fragmented vacation rental market consists of 100.000s of different websites and suppliers A pain for travelers A pain for suppliers Lacking access to the right demand, to find the right place to stay standards, technology and data 3 CMD 2022 - Strategy Update
Slide 4: Solving key market pain points with technology
We are solving the key pain points of the market with technology by matching the right travelers with the right suppliers Travelers Partners (demand) (supply) 4 CMD 2022 - Strategy Update
Slide 5: Taking Stock
TAKING STOCK 5
Slide 6: Our journey so far
Our journey so far… “Take Rate” 15+% Subscription & Services Take Rate (around the ~8-15% marketplace) Onsite Onsite Value segments (integrated (integrated marketplace) marketplace) Take Rate ~5-8% Offsite Offsite Offsite (metasearch) (metasearch) (metasearch) Deeper customer relationships Enabling
Slide 7: Self-reinforcing feedback loop
…based on a self-reinforcing feedback loop: more Onsite supply increases repeat bookings, driving long-term growth and margins up - further accelerated by Subscription & Services… More demand More data = better products = more data = higher conversion Demand Supply Higher retention & repeat Higher c
Slide 8: Onsite GBV growing more than 20x in 4 years
…that proves successful with a strong and consistent growth track record, growing our Onsite GBV >20x in 4 years Onsite Onsite GBV GBV growth Q3 YTD EUR million YoY: +45% Outgrown the overall market for alternative accommodation since 2018 with our Onsite business >20x Delivered on our growth ambiti
Slide 9: A healthy business with a strong cash position
We are a healthy business with a strong cash position… We already have the right assets today… …to accomplish our vision Customer reach ~50m monthly visits Our Vision in peak months making incredible homes easily accessible Largest selection to everyone through strong partnerships 60k+ trusted Partn
Slide 10: Global footprint and leading regional positions
…that has built a truly global footprint and leading positions across many of our regions Globally DACH Rest of Europe North America Rest of World* Countries 25 3 12 2 8 ~49% ~34% ~16% ~1% % of 9M/22 Booking Revenues Profitability Adj. EBITDA + Close to break-even Investing-mode Planting the seeds (
Slide 11: First 9M of 2022 a great success
As a result our first 9M of 2022 have again been a great success with a record-high of 126m EUR in IFRS Revenues Our 9-month performance shows strong topline growth …as such we upgraded our FY/2022 guidance and combined with a sizable improvement in profitability… are now expecting… Booking Revenues
Slide 12: Looking Ahead
LOOKING AHEAD 12
Slide 13: Strong company culture and entrepreneurial spirit
We are driven by a strong company culture and entrepreneurial spirit The people at HomeToGo are what really make the difference. Since my first day, I have been working with some of the most driven, committed and brilliant I love all the creativity and learning experiences people in the industry. Yo
Slide 14: Strong company culture and entrepreneurial spirit
We are driven by a strong company culture and entrepreneurial spirit 14 CMD 2022 - Strategy Update
Slide 15: Decisive and transformative steps in executing our strategy
We are taking decisive and transformative steps in executing our strategy to enable our future growth 1 2 3 Travelers Supply Technology + Data Creating an unparalleled Growing our global footprint Further utilizing existing and experience to drive repeat and scaling diversified supply, developing ne
Slide 16: Progress toward the go-to destination for vacation rentals
We see clear progress on our journey to build the go_to destination for vacation rentals 11 Most visited platform for (rural) Growth of visits from Growth of Booking Revenues vacation rentals in Germany direct traffic channels** from repeat customers*** Airbnb* 1.6x 1.6x 2.3x DACH: 3.4x 5.4x DACH: 8
Slide 17: Becoming the go-to destination for travelers
For travelers, we aim to become the go_to destination for vacation rentals 11 By providing travelers with a desirable, unparalleled and highly curated selection of vacation rentals and great customer experience, we pave the way to become the go_to destination for vacation rentals World’s largest sel
Slide 18: Repeat customers' Booking Revenues grew over 5x
Travelers like what we offer which earns trust: Consequently 1 our repeat customers’ Booking Revenues grew >5x in 3 years Booking Revenues Largest selection of vacation rentals from repeat customers and continuously growing EUR million An innovative consumer product leads to great reviews, an NPS* o
Slide 19: Booking Revenues increasingly Onsite
Executing our strategy, our Booking Revenues are increasingly Onsite 22 Onsite Share Growth vs 2019 in % of Booking Revenues* DACH 77% 1.5x Rest of Europe 37% 1.8x Average Onsite Share at 52% Q3 YTD in 2022 North America 17% 12.2x 19 CMD 2022 - Strategy Update *ex. Subscriptions & Services revenues,
Slide 20: Technology, data and AI at the core
Technology, data and AI are at the core of our business 3 removing friction between demand and supply 15+ million Offers in the search database 100+ A/B experiments in from thousands of Partners production at the same time Before & after 3.5+ billion Images processed through our data pipelines AI mo
Slide 21: Solutions to enable the entire alternative accommodation industry
We are providing innovative solutions around our marketplace to 3 enable growth for the entire alternative accommodation industry becoming its operating system Examples Tech, data and Partner solutions for the supply side An all-in-one SaaS solution to connect self-service focused hosts more easily
Slide 22: Whitelabel technologies bring acquisitions onto our marketplace quickly
Our whitelabel technologies also allowed us to bring our acquisitions quickly onto our marketplace tech frontend & lift synergies Fully live ~10 months Fully live ~7 months after acquisition after acquisition 22 CMD 2022 - Strategy Update
Slide 23: A home to go green
1 a home to go green House in Sogndal (Sogndal, Sogn og Fjordane)
Slide 24: Platform enabling more sustainable choices
Building a platform that enables & empowers travelers and Partners to make more sustainable choices 24 CMD 2022 - Strategy Update
Slide 25: The green opportunity
The green opportunity: We are dedicated to being a changemaker in sustainable travel for our industry Incentivizing our Partners Building a product where Fostering an employee to incorporate sustainable travelers can easily choose culture and operation practices and amenities by and be better educat
Slide 26: People Always Travel
PEOPLE ALWAYS TRAVEL 26
Slide 27: Travel is the category where consumers treat themselves
Travel is the category where consumers treat themselves… 27 CMD 2022 - Strategy Update
Slide 28: Vacation rentals fare well in weaker economic periods
…and vacation rentals have traditionally fared well during periods of weaker economic momentum & consumer uncertainty… HomeAway: Revenues CAGR (2007-2010) of 46% During the 2008 Global Financial Crisis (GFC) the vacation rental business proved resilient as it is usually the cheaper option and allows
Slide 29: Resilience observed during the Covid-19 pandemic
…and we’ve observed this firsthand during the Covid-19 pandemic Booking Revenues EUR million Vacation rentals proved resilient during 124 131 Covid-19 as travelers seeked the safety and privacy of a separate rental vs crowded hotels 80 82 Particularly domestic travel boomed, where travelers stayed i
Slide 30: Boomers and Gen X represent over 50% of customers
And with Boomers and Gen X representing more than 50% of our customers, we are well positioned Gen Z 11.0% Baby Boomers 31.9% Millennials 25.7% Gen X 31.4% 30 CMD 2022 - Strategy Update Source: Conversion value segmented by age w.r.t. Google Ads Audience Report; Data pull for 1 January - 31 October
Slide 31: Creating Long-Term Value
CREATING LONG-TERM VALUE 31
Slide 32: Achieve Adjusted EBITDA break-even by FY/23
Near-term milestone: Achieve Adjusted EBITDA break-even by FY/23
Slide 33: Roadmap to profitability by FY/23
We continue on our roadmap of topline growth, cost efficiency and operating measures to foster our path to profitability by FY/23 Drive cost efficiency Operating measures Objective Topline measures across the business & synergy effects Contract Better leverage Tighter steering Scaling of Reviewed Ec
Slide 34: Continuous margin improvement to drive profitable growth
Mid-term milestone: Continuous margin improvement to drive profitable growth
Slide 35: Bringing our profitable growth ambition to reality
Bringing our profitable growth ambition to reality Being the go_to destination for vacation rentals Onsite and our Subscription & Services offering will help us to drive growth through higher share of make our business even more scalable, and wallet from increasing repeat demand at a higher allows u
Slide 36: Self-reinforcing feedback loop driving growth and margins
More Onsite supply increases repeat bookings, a self-reinforcing feedback loop driving long-term growth and margins up - further accelerated by Subscription & Services… More demand More data = better products = more data = higher conversion Demand Supply Higher retention & repeat Higher conversion =
Slide 37: Ambition of 1bn EUR Booking Revenues by 2028/29
…in order to capture our ambition to achieve 1bn EUR in Booking Revenues by 2028/29 We are targeting a huge market opportunity,… …aiming for 1bn EUR in Booking Revenues by 2028/29 EUR trillion EUR million CAGR: 30-35% Total accommodation market >1.7tn EUR by 2030 CAGR: 55% Total accommodation market
Slide 38: Path to profitability: Adjusted EBITDA margin
Path to profitability: Our Adjusted EBITDA margin over the short, medium and long-term 2022 guidance 2023 guidance 2028/29 Adjusted EBITDA margin (14)-(18)% ≥0% ~35% in % of IFRS Revenues 38 CMD 2022 - Strategy Update
Slide 39: Key takeaways Strategy Update
Key takeaways Strategy Update We operate in a resilient growth market, 01 demonstrated our resilience through Covid-19 and are well-positioned for the current macro environment We have built a strong franchise in our market with a global 02 footprint, already the most visited platform in Germany for
Slide 40: Disclaimer
Disclaimer Forward-Looking Statements This Presentation contains certain forward-looking statements, including statements regarding HomeToGo’s future business and financial performance. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate