Lastminute.com N.v. · SIX:LMN
Lastminute.com — Investor Presentation (May 2023)
48 slides from Lastminute.com's investor presentation, May 23, 2023
Slide 1: lastminute.com Investor Relations Presentation
lastminute.com Investor Relations Presentation
Slide 2: Safe Harbour Statement
Safe Harbour Statement The material in this presentation has been prepared by lastminute.com N.V. and reports general background information about lastminute.com activities as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information
Slide 3: Agenda
Agenda 01 lastminute.com Overview 02 Investment Highlights 03 FY22 Update 04 Appendix 3
Slide 4: lastminute.com is the European Travel-Tech leader in Dynamic Holiday Packages
lastminute.com is the European Travel-Tech leader in Dynamic Holiday Packages 4
Slide 5: Our Mission
Our Mission Over its history, lastminute.com has built an enviable position in the European travel space, To lead the travel industry becoming one of the leading players in the by leveraging technology to European travel tech arena. simplify, personalise, and Our unique positioning gives us a strong
Slide 6: lastminute.com at a glance
lastminute.com at a glance Sale of travel services at the heart of our business complemented with a Metasearch activity META Cruise & Other Online Travel Metasearch Agency (OTA) Business (META) Advertising & Other OTA OT services A Sale of Holiday Packages Search engine for Flights and other travel
Slide 7: History
History End of 2022 welcomed a new era which followed years of strong organic and non-organic growth and resilience during unexpected events IPO 2019 2022 2018 2017 Covid-19 New 2015 Governance Transition to new era 2014 2012 2007 €145m €341m €305m 2004 Revenue Revenue Revenue 10 FTE 643 FTE 1,417 F
Slide 8: European footprint in largest travel markets
European footprint in largest travel markets Well-established brand setup in 5 core markets and growth market development International brands Focus market brands IFRS Revenues 2022 lastminute.com IR presentation | 8
Slide 9: Group structure
Group structure Dutch holding with an operational European footprint headquartered in Chiasso, Switzerland HEADCOUNTS DISTRIBUTION [Country’s HCs / Total HCs] GB 3% HEADCOUNTS DISTRIBUTION DE BY PROFESSIONAL FAMILY 4% DEPARTMENTS HC PL IN 3% 18% Business Units 405 Customer Care 500 CH IT Technology
Slide 10: Market positioning
Market positioning lastminute.com is active in the travel industry and competes with local and global online and offline players Revenue Core Dynamic Static Accommo- Examples 2022 Markets Packages Packages Flights dation Cruises Metasearch €15.4B US and Europe players Global €10.5B US and Europe €7.6B
Slide 11: lastminute.com customer or traffic acquisition
lastminute.com customer or traffic acquisition Traffic can be sourced via paid or unpaid channels and under different bilateral agreements Paid marketing channels POTENTIAL CUSTOMER (e.g. Search Engine Marketing, Social Media, Metasearch, Affiliations) Desktop Unpaid marketing channels (e.g. direct traffic,
Slide 12: OTA payment flows
OTA payment flows lastminute.com uses mostly a merchant approach where the travel value flows through the company MERCHANT MODEL AGENCY MODEL 1 LM 2 1 2 LM Customer Provider Customer Provider 1. Customer pays the total amount of service to 1. Customer pays the total amount of service to lastminute.com
Slide 13: OTA business unit comprises two very different business models
OTA business unit comprises two very different business models Travel organizer and intermediary in a combined offering towards the customer SALE OF STAND-ALONE SALE OF HOLIDAY PACKAGE TRAVEL SERVICE dynamic/real-time static/ Hotel Flight Vacation Experiences Cruise ** rental combination prepackaged F
Slide 14: Meta business unit monetizes traffic with a global outreach
Meta business unit monetizes traffic with a global outreach Global blue chip client base adds unlimited inventory and revenue diversification Core Partners: Media Partners: OTAs - Aggregators - OTAs - Ad Networks - Airlines - Hotel chains Hotel chains Consumer Service traffic fees Metasearch brands Core
Slide 15: Agenda
Agenda 01 lastminute.com Overview 02 Investment Highlights 03 FY22 Update 04 Appendix 15
Slide 16: Investment Highlights: lastminute.com's unique value proposition
Investment Highlights: lastminute.com’s unique value proposition 1 Online Leisure Travel Market Addressing a huge, fast-growing, online-driven and very fragmented demand Unique distinctive Dynamic Holiday Package technology, ensuring 2 Dynamic Holiday Package technology access to millions of combina
Slide 17: We address a huge and very fragmented market
We address a huge and very fragmented market 1 Online Leisure Travel Market 30% 300 billion TTV Fragmented supply Fragmented distribution that needs to be organised and distributed There is a huge space Travel market in Europe 300+ airlines and 1M+ hotels to capture opportunities out there 50% onlin
Slide 18: Dynamic Holiday Packages bring value in the distribution chain
Dynamic Holiday Packages bring value in the distribution chain 2 Dynamic 1 Online Leisure Holiday Travel Market Package technology SUPPLIERS CONSUMERS lastminute.com is seen as a Access to a virtually unlimited What’s our channel distribution “Raison d'etre”? not a competitor inventory of travel sol
Slide 19: Our Distinctive Advantages
Our Distinctive Advantages 2 Dynamic 1 Online Leisure Holiday Travel Market Package technology Proprietary Dynamic Packages Engine which seamlessly creates tailored experiences by combining flights & accommodations on every customer search 1 Regulatory Advantage Unique Supply with extensive being a p
Slide 20: Growing B2B2C partnerships boost Holiday Package distribution
Growing B2B2C partnerships boost Holiday Package distribution 2 Dynamic 1 Online Leisure Holiday Travel Market Package technology 21% 38% 46% 2019 5 markets 2021 11 markets 2022 18 markets 79% 62% 54% DYNAMIC PACKAGES REVENUES White Labels Other Channels* (*) “Other Channels” includes SEM, Direct, S
Slide 21: Resilience from flexible cost base and light asset structure
Resilience from flexible cost base and light asset structure 3 Resilience 1 2 Online Leisure Dynamic Holiday through Travel Market Package diversification technology 9% 18% No inventory Analysis based on No fixed assets 2022 figures 72% Overall fix costs ~28% LOW OPERATING LEVERAGE ASSETS LIGHT BUSINESS
Slide 22: Agenda
Agenda 01 lastminute.com Overview 02 Investment Highlights 03 FY22 Update 04 Appendix 22
Slide 23: Market Update
Market Update Recovery curve has flattened from June 2022 onwards, but slightly picking up momentum recently Commercial Flight Activity*, indexed to 2019 levels 2019 Steep recovery path -16% -16% from January to May... -16% -16% … followed by slow- down due to capacity disruptions Rising fuel prices
Slide 24: Operational & strategic highlights 2022
Operational & strategic highlights 2022 Board change in December 2022 opens a new growth chapter Growth of the Holiday Significant customer care efforts Package Business: to improve booking experience: 7 new European markets launched Customer hub in Bangalore ramped up and during 2022, now coverage of
Slide 25: Board change in December 2022 opens a new growth chapter
Board change in December 2022 opens a new growth chapter Series of initiatives started since governance change ● On 21 December 2022, the EGM of lastminute.com N.V. approved the appointment of 5 new directors, including Luca Concone as new CEO and Sole Executive Director ● New Board immediately star
Slide 26: Freesailors transaction null and investigation provision audited
Freesailors transaction null and investigation provision audited Pending transaction was voided and investigation impact has been confirmed The annulment of the contracts has been considered based on accounting principles as a subsequent event in the Financial Purchase from minority investors in Stat
Slide 27: Key communication milestone: Integrated Annual Report 2022
Key communication milestone: Integrated Annual Report 2022 Comprehensive document on all aspects of the business and performance including ESG New communication reference for stakeholders combining different reports with financial and non-financial information into one single document. First Integrated
Slide 28: FY 2022 | Overview
FY 2022 | Overview Market recovery and mix shift to Holiday Packages translated into very strong 2022 results HOLIDAY NET FINANCIAL PACKAGES ADJ. EBITDA* BOOKINGS GTV REVENUE* Contribution Margin share** POSITION* +84% vs. 2021 +145% vs. 2021 +103% vs. 2021 62% in 2022 +98% vs. 2021 +43% vs. 2021 St
Slide 29: Bookings almost doubled vs. 2021 with all-time record GTV
Bookings almost doubled vs. 2021 with all-time record GTV Bookings growth higher than market recovery; GTV reflects increasing mix effect of holiday packages as well as inflation BOOKINGS GROSS TRAVEL VALUE (GTV) k €m lastminute.com IR presentation | 29
Slide 30: Revenues more than doubled vs 2021; Gross Profit +62% vs '21
Revenues more than doubled vs 2021; Gross Profit +62% vs ‘21 OTA Revenues almost in line with 2019, Gross Profit growth impacted by higher marketing spend to drive volume recovery REVENUES GROSS PROFIT €m €m lastminute.com IR presentation | 30
Slide 31: HR Fixed Costs reflect latest hirings, Running Costs show lasting improvements
HR Fixed Costs reflect latest hirings, Running Costs show lasting improvements Gross* HR costs back to 2019 levels mainly due to Tech talent acquisition plan Running costs still 17% below 2019 thanks to improved efficiency HR FIXED COSTS* RUNNING COSTS €m €m * Gross of Working Hour Reduction (WHR) mech
Slide 32: Full Year 2022 | KPI Overview
Full Year 2022 | KPI Overview €36.5m Adjusted EBITDA vs. breakeven in 2021 (net of government subsidies) FY FY % FY % 2022 2021 22 vs. 21 2019 22 vs. 19 Strong Booking growth, with an Bookings (k) 4,299 2,340 +84% 5,184 -17% all-time high GTV GTV (€m) 3,216 1,314 +145% 2,876 +12% Strong Revenue grow
Slide 33: IFRS EBITDA of €4.7m despite the provision for the investigation in CH
IFRS EBITDA of €4.7m despite the provision for the investigation in CH Without the impact from subsidies and provision, IFRS EBITDA would have been €38.5m €m Repayment of government subsidies plus legal expenses * Net of government subsidies and provision/expense for investigation lastminute.com IR
Slide 34: Full Year 2022 YTD | Net Results
Full Year 2022 YTD | Net Results Pre-investigation EBITDA and Net Result close to 2019 levels One-off costs leads to €15m Net Loss, but Net of the Provision Net Result would have been €17.2m €m % % 2022 2021 2019 Government subsidies of €14.9m in 2021 and 22 vs. 21 22 vs. 19 €1.2m in 2022 IFRS EBITDA
Slide 35: Temporary accounting effect of the Freesailors transaction on Net Equity and Net Financial Position
Temporary accounting effect of the Freesailors transaction on Net Equity and Net Financial Position have been restated upon the related annulments €m Net Equity Net Financial Position Balance as of 31.12.2022 including transaction 11.9 41.7 Subsequent event effect from transaction annulment 24.7 24.7
Slide 36: Cash Curve reflects a year end position stronger than previous year
Cash Curve reflects a year end position stronger than previous year (*) CHF 7M (EUR 7.1M) has been restricted by the Swiss Prosecutor Office in relation to the investigation in Switzerland and they have been presented as financial assets. lastminute.com IR presentation | 36
Slide 37: Solid cash generation during 2022 with comfortable net cash at year end
Solid cash generation during 2022 with comfortable net cash at year end Approx. €78m Operating Cash, €11m net debt repayments (*) EBITDA IFRS net of IFRS 16 effect of €4.1m and €35m related to extraordinary costs for the investigation on Swiss WHR compensation that is net by €0.8m of forex exchange b
Slide 38: Increasing contribution of our Holiday Package Business
Increasing contribution of our Holiday Package Business OTA CONTRIBUTION MARGIN BY CATEGORY lastminute.com IR presentation | 38
Slide 39: Current trading in Q1 2023
Current trading in Q1 2023 Promising start to the year Strong demand throughout the Revenues growth first entirely driven by quarter Holiday Packages (+ 76% vs. LY) Revenue growth even higher IFRS EBITDA primarily lower due to mix vs. towards shifts LY due to higher cancellations Holiday Packages + l
Slide 40: Key Takeaways
Key Takeaways Summary of the results and current situation Strong topline performance in Q1 2023 driven by Holiday Packages paired with solid profitability Board and CEO change in December 2022 started a new era Governance strengthened and series of further initiatives already launched New organisati
Slide 41: Agenda
Agenda 01 lastminute.com Overview 02 Investment Highlights 03 FY22 Update 04 Appendix 41
Slide 42: Management Team
Management Team Experienced management team at the head of the leading travel tech company in Europe Luca Sergio Signoretti Concone CEO CFO ● CEO since December 2022 ● CFO since 2017 ● Over a decade of experience as entrepreneur, angel investor ● CEO of CartaLis ELMI (2007-2014) and advisor to techn
Slide 43: Board of Directors
Board of Directors One-tier board structure compliant with section 5 of the Dutch Corporate Governance Code Luca Yann Maria Teresa Massimo Cyril Ranque Concone Rousset Rangheri Pedrazzini CEO and Chairman and Non-Executive Non-Executive Non-Executive Executive Non-Executive Director Director Directo
Slide 44: Shareholder Structure
Shareholder Structure As of May 2023 44.58% Freesailors 46.15% Coöperatief U.A.* 11,664,219 shares Freefloat Ticker: LMN ISIN: NL0010733960 SIX Zurich 6.25% 3.02% Treasury stock OTUS Capital** (729,109 shares) * Freesailors Coöperatief U.A. (“Freesailors”) membership’s structure results to be compose
Slide 45: Five year KPI overview
Five year KPI overview 2022 2021 2020 2019 2018 Bookings (k) 4,299 2,340 2,275 5,184 4,519 GTV (€m) 3,216 1,314 1,096 2,876 2,395 Revenues (€m)* 304.9 150.0 133.5 340.7 281.8 Thereof: OTA 279.8 136.8 118.4 299.0 237.5 Thereof: META 25.1 13.2 16.8 41.7 49.4 Gross Profit (€m)** 111.5 68.8 58.8 148.9 11
Slide 46: Financial Calendar 2023
Financial Calendar 2023 7 February 2023 Announcement of preliminary unaudited FY 22 results 13 April 2023 Publication of the Annual Report 2022 17 May 2023 Q1 Trading Update 30 June 2023 Annual General Meeting 3 August 2023 Publication of the half-yearly report 2023 9 November 2023 Q3 Trading Update
Slide 47: Investor Relations Contact
Investor Relations Contact Silvia Sanchez Investor Relations Officer [email protected] +34 678 166 563 [email protected]
Slide 48: thanks
thanks lmgroup.lastminute.com