eDreams ODIGEO · BME:EDR
eDreams ODIGEO — Q1 2015-16 Earnings Presentation
37 slides from eDreams ODIGEO's earnings presentation, Aug 27, 2015
Slide 1: Investor presentation - Quarter ended June 30th 2015
Quarter ended June 30th 2015 Investor presentation August 27th 2015
Slide 2: Disclaimer
Disclaimer Certain statements included or incorporated by reference within this presentation may constitute “forward-looking statements” in respect of the Group’s operations, performance, prospects and/or financial condition and the industry in which the Group operates. By their nature, forward-look
Slide 3: Agenda
AGENDA First quarter results highlights Strategic developments Outlook Financial analysis Appendix 2 Q1 2015-16 Results Presentation
Slide 4: Q1 Results Highlights
Q1 Results Highlights Good start to the year with performance in line with guidance Growth in bookings and revenue per booking drove 6% increase in revenue margin Stabilization of Adjusted EBITDA, up +1% Strong Cash Flow Performance Making progress in strategic initiatives, in particular: • Mobile •
Slide 5: Key financial highlights
Key financial highlights Bookings grew +4% vs last year Revenue margin up +6% vs last year* Adjusted EBITDA grew +1% vs last year Adjusted net income reached €3.4 million, increasing 24% vs last year Cash at the end of the period stood at €123.3 million** Q1 14-15 Q1 15-16 % YoY Performance vs (In €
Slide 6: Revenue margin
Revenue margin Revenue margin evolution In € million 113.8 107.3 +6% Revenue margin continue showing the positive trend experienced in Q4 2014- 15 Revenue margin stood at €113.8 million, Jun.14 Jun.15 Restated up 6% vs last year Growth in bookings 4% in the quarter Revenue margin per booking while t
Slide 7: Flight vs Non flight Revenue margin
Flight vs Non flight Revenue margin Revenue margin - Flight In € million 90.8 85.8 +6% Revenues in the Flight business continue improving in Q1 and grew 6% reflecting an increase in bookings of 5% and higher revenue margin per booking (+1% YoY) Jun.14 Jun.15 Non flight business continue to show Rest
Slide 8: Core vs Expansion Revenue margin
Core vs Expansion Revenue margin Revenue margin - Core Core segment – Optimization of near term In € million performance delivering results. 66.2 64.2 Inflection in booking trend confirmed. -3% Improvement in booking trend continued in Q2 The expansion segment continues to drive growth with a 21% in
Slide 9: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA In € million 22.2 22.4 Adjusted EBITDA at €22.4 million, +1% up 1% vs last year Phase I – Optimization near term performance plan starting to show results Flight bookings: +5% Jun.14 Jun.15 Restated Flight revenues: +6% Adjusted EBITDA in line with yearly guidance Adj
Slide 10: Agenda
AGENDA First quarter results highlights Strategic developments Outlook Financial analysis Appendix 9 Q1 2015-16 Results Presentation
Slide 11: Mobile development program
Mobile development program… Increase focus on mobile, continues to attract a large share of our customers BRANDS New search and flight notifications +29% Increase y-o-y of share of mobile bookings from 15% in June 2014 to 20% June 2015 +38% Search Latest searches Filters Flight status notifications
Slide 12: One Front: 80% of total bookings now coming from One Front
One Front: 80% of total bookings now coming from One Front With One Front implemented, rate of innovation accelerating and conversion rates improving One Front Coverage Opodo – 100% - July 2015 Go Voyages - 100% - April 2015 Edreams – All except Spain and France – Expected FQ2 Conversion >6% Opodo a
Slide 13: One front: Rate of innovation and functionalities accelerating
One front: Rate of innovation and functionalities accelerating Latest searches Functionality Fastest Flights Elapse Time Functionality 12 Q1 2015-16 Results Presentation
Slide 14: Dynamic Packages: Migration to central platform delivering results
Dynamic Packages: Migration to central platform delivering results Migration of central platform content to power Dynamic Packages booking engines drives growth Coverage 77% Central Platform connectivity up from 23% in Q4 to 77% in Q1* Conversion >10% Opodo sites conversion improvement following con
Slide 15: Agenda
AGENDA First quarter results highlights Strategic developments Outlook Financial analysis Appendix 14 Q1 2015-16 Results Presentation
Slide 16: Outlook 2015-16
OUTLOOK 2015-16 Q1 results in line with guidance Phocuswright expects the gross bookings for European OTAs Online flight business to be flat in 2015 and to grow by 2.2% in 2016 2015-16 fiscal year should be a year of transition We will reinvest into the business market share and revenue growth pocke
Slide 17: Agenda
AGENDA First quarter results highlights Strategic developments Outlook Financial analysis Appendix 16 Q1 2015-16 Results Presentation
Slide 18: Income statement - Highlights
Income statement - Highlights Q1 Q1 Var In March 2015, we changed revenue recognition from Q1 Jun-14 Jun-14 (vs departure date to booking date on Car, Hotels and Dynapacks – Jun-15 restated) (In € million) Old Restated more details on page 24 in Appendix Over the quarter, main YoY evolutions reflect
Slide 19: Adjusted Net income
Adjusted Net income Q1 Q1 Q1 Var Jun-14 Jun-14 Jun-15 (vs Old Restated restated) (In € million) Net income (2.6) (2.9) 0.7 N.A. Non-recurring items 0.4 0.4 2.5 N.A. Cancellation of amortized financing fees following 2019 Notes partial redemption 1.7 1.7 - N.A. Interest expense penalty related to 201
Slide 20: Cash flow statement - Highlights
Cash flow statement - Highlights Q1 Q1 Jun-14 Over the full year, main YoY evolutions reflect: Restated Jun-15 Operating cash inflow of €16.6 million (In € million) − Positive change in working capital mainly reflecting higher Adjusted EBITDA 22.2 22.4 increase in regular bookings combined with work
Slide 21: Covenants
Covenants TOTAL DEBT COVER RATIO (TOTAL NET DEBT / LTM EBITDA) 6 5 x LTM Adj. EBITDA 1.87x 4 Total Net Debt(1) 3 5.50x 3.63x 2 LTM EBITDA 3.63x 1 - Jun.15 Headroom Ratio cap Total debt cover ratio seasonality 5 x LTM Adj. EBITDA 4 3 2 3.63x 3.18x 3.19x 1 - Jun.13 Sept.13 Dec.13 Mar.14 Jun.14 Sep.14
Slide 22: Closing Remarks
Closing Remarks Good start to the year with performance in line with guidance Growth in bookings and revenue per booking drove 6% increase in revenue margin Stabilization of Adjusted EBITDA, up +1% Strong Cash Flow Performance Making progress in strategic initiatives, in particular: • Mobile • Custo
Slide 23: Agenda
AGENDA First quarter results highlights Strategic developments Outlook Financial analysis Appendix 22 Q1 2015-16 Results Presentation
Slide 24: KPI historic evolution – eDreams ODIGEO
KPI historic evolution – eDreams ODIGEO Before change in revenue After change in revenue recognition recognition FY FY PF FY PF PF PF PF FY 2013/14 Jun-14 Sep-14 Dec-14 Mar-15 2014/15 2013/14 Jun-14 Sep-14 Dec-14 Mar-15 2014/15 Jun-15 Number of bookings (in '000) Total 9,797 2,518 2,471 2,129 2,587
Slide 25: Quarterly impact of change in revenue recognition
Quarterly impact of change in revenue recognition Revenue margin 500.0 428.6 429.5 436.2 436.0 140.0 450.0 118.8 121.2 400.0 87.9 87.6 112.3 110.3 80.8 81.8 120.0 107.6 107.3 22.2 350.0 97.4 97.2 19.9 100.0 21.9 21.5 26.3 24.3 300.0 in € million 19.8 19.6 in € million 80.0 250.0 60.0 200.0 347.8 347
Slide 26: Variable and fixed costs
Variable and fixed costs Variable costs per booking Variable costs slightly increased compared to 35 30.7 last year though YoY gap is reducing 30.4 30.0 30 27.9 29.0 compared to previous months in € per booking 29.1 27.9 Fixed costs per booking remained stable 25 25.7 25.0 compared to last year 20 2
Slide 27: Balance sheet - Highlights
Balance sheet - Highlights Jun-14 Versus last year, main changes relate to: (In € million) Jun-15 Restated The impairment of €178m which occurred in Goodwill 877.9 728.7 March 2015 which impacted both Goodwill and brand Other fixed assets 309.8 293.9 Other changes deal with: Total fixed assets 1,187
Slide 28: Working capital - Highlights
Working capital - Highlights Quarterly working capital Jun.14 Sep.14 Dec.14 Restated Old Old Mar.15 Jun.15 - (50) (100) (184.6) (223.9) (224.4) in € million (246.9) (247.6) (150) (200) (33.4) (250) (34.3) (35.0) (218.0) (31.8) (30.7) (258.2) (259.4) (300) (278.6) (278.3) Working capital Non current
Slide 29: Net debt information
Net debt information Undrawn revolving credit Net debt excl. capitalization of financing costs facilities end of June 2015 GEO Travel Finance June 2015 net debt excl. Jun.14 Sep.14 Dec.14 Mar.15 Jun.15 Jun.14 Sep.14 Dec.14 Mar.15 Jun.15 - capitalization of financing costs lower by €13.4 million (100
Slide 30: Net debt analysis
Net debt analysis Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 2019 Notes (129.0) (129.0) (129.0) (129.0) (129.0) 2018 Notes (325.0) (325.0) (325.0) (325.0) (325.0) Revolving Credit Facilities - - - - - Accrued interest (12.4) (9.6) (12.4) (9.6) (12.4) Other debts (finance lease, overdrafts, etc.) (4.1) (5.5)
Slide 31: Non recurring items
Non recurring items Q1 Q1 Jun-14 Jun-15 LTI plan - 0.6 Exceptional consultancy fee - 1.3 Selective contract termination 0.6 0.7 Other non recurring items 0.0 0.7 Non recurring items 0.6 3.4 Note: Unaudited 30 Q1 2015-16 Results Presentation
Slide 32: Geo Travel Finance (1/2)
Geo Travel Finance (1/2) INCOME STATEMENT BALANCE SHEET Q1 (In € million) Q1 Jun-14 Jun-14 Var Jun-15 Jun-15 (In € million) Restated Restated Bookings 2,510 2,618 4% Goodwill 877.9 728.7 Other fixed assets 315.9 300.0 Revenue margin 107.3 114.0 6% Total fixed assets 1,193.7 1,028.7 Variable costs (7
Slide 33: Geo Travel Finance (2/2)
Geo Travel Finance (2/2) CASH FLOW STATEMENT COVENANT CALCULATION Q1 (In € million) Q1 Jun-14 TOTAL DEBT COVER RATIO (TOTAL NET DEBT / LTM Jun-15 Restated Adj. EBITDA) Adjusted EBITDA 22.4 22.8 Non recurring items (0.4) (3.2) Total Net Debt(*) 3.63x Non operating / non cash items (0.5) (0.7) LTM Adj
Slide 34: Consolidated financial statements – Profit & Loss
Consolidated financial statements – Profit & Loss eDreams eDreams eDreams Geo Travel Geo Travel Geo Travel Consolidated Income statement ODIGEO ODIGEO ODIGEO Finance Finance Finance YTD YTD YTD Jun. 2014 YTD YTD Jun. 2014 YTD In € thousand Jun. 2015 RestatedRestated Jun. 2014 Jun. 2015 Restated Jun.
Slide 35: Consolidated financial statements – Balance Sheet
Consolidated financial statements – Balance Sheet eDreams eDreams Geo Travel Geo Travel eDreams eDreams Geo Travel Geo Travel Consolidated balance sheet Consolidated balance sheet ODIGEO ODIGEO Finance Finance ODIGEO ODIGEO Finance Finance 30 Jun. 2014 30 Jun. 2014 30 Jun. 2014 30 Jun. 2014 In € tho
Slide 36: Consolidated financial statements – Cash Flow
Consolidated financial statements – Cash Flow eDreams eDreams eDreams Geo Travel Geo Travel Geo Travel Consolidated statement of cash flows ODIGEO ODIGEO ODIGEO Finance Finance Finance YTD YTD YTD Jun. 2014 YTD YTD Jun. 2014 YTD In € thousand Jun. 2015 Restated Jun. 2014 Jun. 2015 Restated Jun. 2014
Slide 37: eDreams ODIGEO
eDreams ODIGEO