Edreams Odigeo · BME:EDR
Edreams Odigeo — H1 2015-16 Earnings Presentation
28 slides from Edreams Odigeo's earnings presentation, January 2016
Slide 1: Investors Presentation January 2016
January 2016 Investors Presentation
Slide 2: Agenda
AGENDA Overview Key Post IPO events & actions taken Strategy H1 Results Highlights Outlook 1 H1 2015-16 Results Roadshow
Slide 3: eDreams ODIGEO has built a highly successful travel business over the past 15 years
eDreams ODIGEO has built a highly successful travel business over the past 15 years BRANDS #1 Flight retailer in Europe 325M monthly searches 16M customers served last year 139 Web sites1 44 countries where we operate 1 Includes sites across all markets, brands, and devices 2 H1 2015-16 Results Road
Slide 4: Online travel is a large and growing market with untapped opportunities
Online travel is a large and growing market with untapped opportunities 1 Online Leisure Travel is the 2 Improving world economy, with 3 Online travel gaining share from largest eCommerce category with air travel historically growing offline, with OTAs gaining share untapped segments faster than GDP
Slide 5: Strong presence in the most attractive geographic markets worldwide
eDreams ODIGEO has a strong presence in the most attractive geographic markets worldwide eDreams ODIGEO has strong presence in the fragmented and eDreams ODIGEO is present & growing in 15 out of 16 complex European travel market which is highly attractive to OTAs largest online travel markets identi
Slide 6: Online intermediary players successfully link customers to products
Online intermediary players successfully link customers to products and thereby capturing above market-average value Average ROC, FY’95-’14, Percent Average EBIT margin, FY’95-’14, % 12 15-25% Typical OTA 11 commission per 15 Hotels Online Travel booking charged to 10 Agencies hotels 9 Priceline
Slide 7: Agenda
AGENDA Overview Key Post IPO events & actions taken Strategy H1 Results Highlights Outlook 6 H1 2015-16 Results Roadshow
Slide 8: Key Post IPO Events: Changes in business environment and PR by suppliers
Key Post IPO Events: Changes in business environment and PR by suppliers 1 Disappointed the market in two occasions last year: FY 2013-14 Results (20th of June 2014) and Q1 2014-15 Results (29th of August 2014), with changes in the Outlook for 2014-15 fiscal year, driven by a change in Google Algori
Slide 9: Actions Taken: Change in Management, New Strategy and New Organisation
Actions Taken: Change in Management, New Strategy and New Organisation Change in Management (26th of Top line growth trend improving January 2015) - The Board of Directors YoY variation of eDreams ODIGEO announced the +15% Bookings growth +13% Revenue Margin growth appointment of Dana Dunne as New
Slide 10: Agenda
AGENDA Overview Key Post IPO events & actions taken Strategy H1 Results Highlights Outlook 9 H1 2015-16 Results Roadshow
Slide 11: Management reorganisation, team in place to significantly improve the business
Management reorganisation, team in place to significantly improve the business New CEO Dana Philip Dunne New New New New Strong senior Chief management Operating Chief Chief Chief Chief Chief Customer Chief People team with Office & Chief Financial Marketing Vacation Revenue Services Officer Technol
Slide 12: New Strategy – Strategic progress – Overview
New Strategy – Strategic progress – Overview 1 Traffic source (channel mix) Successful shift in mix to less expensive traffic sources Improved individual channel performance 2 Mobile Mobile bookings now accounting for 24% of total eDreams ODIGEO bookings Mobile bookings increased 55% y-o-y;
Slide 13: Channel Mix Optimization
Channel Mix Optimization Successful shift in mix to less expensive Variable cost per booking In Euros traffic sources 35 Focus on lower cost channels and 30 2.6 customer retention 25 Change in mix to less expensive traffic -8% 20 sources and improved individual channel 30.6 15 28.0 performance
Slide 14: Mobile development program: Strong growth in Mobile Bookings
Mobile development program: Strong growth in Mobile Bookings Flight Mobile bookings BRANDS As a % of flight bookings Android launch across One Front + New Functionalities eDreams all brands 25% 24% Opodo Go Voyages 20% 20% iOS Apps Live 18% 18% 18% 15% 15% 10% Q1 Q2 Q3 Q4 Q1 Q2 Jun-14 Sep-14 Dec-14
Slide 15: Mobile New Product & Services
Mobile New Product & Services - Increase focus on mobile, continues to attract a large share of our customers BRANDS New search and flight notifications Search Latest searches Filters Flight status notifications My trips 14 H1 2015-16 Results Roadshow
Slide 16: New Product and Services - One Front
New Product and Services - One Front faster product development, customer experience improving 100% of the bookings via One Front (excluding Travelink) Completely redesigned start to finish booking experience For the first time ever persuasive messages through booking process that help the cus
Slide 17: New Product and Services - One Front
New Product and Services - One Front faster product development, customer experience improving With One Front implemented, rate of innovation accelerating and conversion rates improving Latest searches Functionality Fastest Flights Elapse Time Functionality 16 H1 2015-16 Results Roadshow
Slide 18: Significant improvement in Customer Experience and client satisfaction
Significant improvement in Customer Experience and client satisfaction Trustpilot average scores continues Recent awards to improve Best customer service company Ranking Nov-14 Ranking Nov-15 award voted by Die Welt (one of the biggest daily German newspapers) 1 Ebookers 8.1 1 eDreams 8.2 In the
Slide 19: Agenda
AGENDA Overview Key Post IPO events & actions taken Strategy H1 Results Highlights Outlook 18 H1 2015-16 Results Roadshow
Slide 20: First Half Results Highlights
First Half Results Highlights Good results in line with guidance Bookings trend continues to improve (+8%) and revenue margin growth stabilizing at (+6%) Adjusted EBITDA, up +1% Cash Flow in line with historical seasonality pattern; cash at €106.9* million Strategic initiatives on track Guidance mai
Slide 21: Optimization strategy around traffic mix delivering positive results
Optimization strategy around traffic mix delivering positive results Bookings Revenue Margin Adjusted EBITDA In € thousands In € million In € million +8% +6% +1% 5,381 217.6 230.8 43.9 44.4 4,963 H1 Sep-14 H1 Sep-15 H1 Sep-14 H1 Sep-15 H1 Sep-14 H1 Sep-15 Restated Restated Restated Positive trends i
Slide 22: Positive results in the flight business
Positive results in the flight business Flight - Revenue Margin Flight In € million +7% Progress in strategic initiatives delivering very strong 171.8 183.5 growth in bookings, +15% in Q2. First time in 7 quarters of double-digit growth +8% Revenue margin per booking decreasing as a result of 86
Slide 23: Expansion markets drive overall growth with Core back to positive growth in bookings
Expansion markets drive overall growth with Core back to positive growth in bookings Core Markets - Revenue Margin Expansion markets continue to drive overall In € million -4% growth, both in bookings and in revenue margin 132.9 127.6 Core markets back to positive booking growth for -5% first ti
Slide 24: Debt cover ratio leaves plenty of headroom
Debt cover ratio leave us plenty of headroom, debt reduced and stable interest coverage ratio Total Debt Coverage Ratio Debt and Financial Expenses evolution (Total Net Debt (1) / LTM EBITDA) Comparison Pre and Post IPO 6 (million March 14 March 15 euros) Pre-IPO Post-IPO Change 5 x LTM Adj. EBITDA
Slide 25: Agenda
AGENDA Overview Key Post IPO events & actions taken Strategy H1 Results Highlights Outlook 24 H1 2015-16 Results Roadshow
Slide 26: Outlook 2015-16
OUTLOOK 2015-16 Q2 results in line with guidance European OTAs Online flight business forecast* to be flat in 2015 and to grow by 2.2% in 2016 Strategic initiatives on track and delivering results Profits generated by strategic optimization reinvested to drive market share and revenue growth
Slide 27: Next Important Dates
Next Important Dates 25th of February – Q3 results − Outlook Update for the FY 2015-16 20th of June – Full Year 2015-16 Results − Outlook 2016-17 (*) Source: Phocuswright European Online Overview 10th Edition, December 2014 26 H1 2015-16 Results Roadshow
Slide 28: eDreams ODIGEO
eDreams ODIGEO