January Investors Presentation

Transcription

1 January 2016 Investors Presentation

2 AGENDA Overview Key Post IPO events & actions taken Strategy H1 Results Highlights Outlook 1

3 edreams ODIGEO has built a highly successful travel business over the past 15 years #1 Flight retailer in Europe 16M customers served last year 44 countries where we operate 325M monthly searches 139 Web sites 1 BRANDS 1 Includes sites across all markets, brands, and devices 2

4 Online travel is a large and growing market with untapped opportunities Online Leisure Travel is the largest ecommerce category with untapped segments Improving world economy, with air travel historically growing faster than GDP Online travel gaining share from offline, with OTAs gaining share vs. supplier direct Worldwide Business to consumer Passenger traffic growth vs. world ecommerce spending (US$bn, 14-15E) GDP growth Online travel penetration of total travel A 2015E Passenger traffic growth World GDP growth 2 Travel/GDP Ratio 3 3.0x 2.8x 2.6x 2013A 2015E 4 45% 42% 25% 31% 20% 23% 43% 45% x x Last 10 years average ratio of 1.9x 2 2.4x 2.2x 2.0x 1.8x 1.6x EU APAC LatAm US OTA share of online travel evolution A 2015E 41% 39% 40% 41% 40% 37% 35% 36% x 1.2x x Leisure Apparel Consumer EU APAC LatAm US Source: PhoCusWright European Online Travel Overview 10th Edition (2015), Travel electronics PhoCusWright U.S. Online Travel Overview 14th Edition (2015), PhoCusWright Asia Source: Euromonitor Source: IATA 2010, Economist Intelligence Unit (EIU), ICAO Pacific Online Travel Overview 8th Edition (2015); PhoCusWright Latin America Second Edition Online Travel Overview (2014) 1 ICAO/IATA for scheduled passenger traffic figures indexed to 1980 (IATA forecast for 2015); 2 Economist Intelligence Unit GDP in constant US$ (2005) indexed to 1980; 3 Calculated as passenger traffic growth index divided by World GDP growth index; E for LatAm; E for US and LatAm 3

5 Other Distribution Customer habits Supply edreams ODIGEO has a strong presence in the most attractive geographic markets worldwide edreams ODIGEO has strong presence in the fragmented and complex European travel market which is highly attractive to OTAs edreams ODIGEO is present & growing in 15 out of 16 largest online travel markets identified by PhoCusWright Number of airlines 1 Market share of top 4 airlines 1 Europe US c. 120 c % 75% Airline brand recognition Low High Proportion of domestic vs. International travel 1 Fragmentation of flight routes 1,2 OTA market concentration Service fee by airlines/otas Number of countries Int l 80% c. 6% Other Top 3 37% players 63% / Domestic 20% Other 20% Int l 23% Domestic 77% Top 3 players 4 80% / Languages Currencies c. 24% Multi-legged segments Many Fewer # of affiliates Large Large 50 1 Legal, Tax, Payment methods Many Fewer Online travel gross bookings 2013 growth by market in increasing order of 2015 gross bookings 8 edreams ODIGEO presence China Colombia Peru India Brazil Mexico Spain Chile Italy Japan US Germany ANZ UK Scandinavia 1 Industry research; 2 Top 10 from-to city pairs - % of total passengers; 3 Priceline, Expedia and edreams ODIGEO, based on gross bookings as reported and defined in PhoCusWright reports; 4 Expedia, Orbitz and Travelocity, based on gross bookings as reported and defined in PhoCusWright reports; 5 European Union designated by agreement with member states; 6 English and Spanish taken into account; 7 Includes Norway, Switzerland and 9 countries belonging to the EU but not to the Eurozone; 8 Asia Pacific Online Travel Overview Eighth Edition, European Online Travel Overview Tenth Edition, Latin America Online Travel Overview Second Edition, U.S. Online Travel Overview Fourteenth Edition France 9% 8% 16% 13% 13% 25% 25% 25% 20% 20% 36% 36% 33% 50% 47% 4 110%

6 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, % Hotels Cruise Ships Tour Operators Motor Vehicle Rental and Leasing 15 Airlines Online Travel Agencies % Typical OTA commission per booking charged to hotels Priceline has a current market capitalization of $66 billion. This is more than the three largest hotel chains combined: Hilton ($26b), Marriott ($19b), Starwood ($13b) NOTE: ROC = EBIT/Ave (FY, FY-1) SOURCE: Capital IQ Revenue CAGR, FY 95-14, % 5

7 AGENDA Overview Key Post IPO events & actions taken Strategy H1 Results Highlights Outlook 6

8 Key Post IPO Events: Changes in business environment and PR by suppliers 1 Disappointed the market in two occasions last year: FY Results (20th of June 2014) and Q Results (29th of August 2014), with changes in the Outlook for fiscal year, driven by a change in Google Algorithm and higher competition from smaller players in France & Italy: From: Business to grow revenue margin close to 10% and stable Adjusted EBITDA margins (last fiscal year 27%) To: Flat revenue margin and 90 million of Adjusted EBITDA (21% margin) 2 BA/Iberia Announcement (24th of October 2014) to remove their fares from 3 out of our 67 branded websites: Huge overreaction by the market on something that it was really small for the company only 3 out of 67 websites were fares removed. We sell over 400 other airlines so saw no impact on our bookings. Bookings theoretically at risk at the time only represented 1,4% of our total flight bookings, and in less than 24 hours represented only 0,2% as BA/IB reassumed fares in most of our websites. 7

9 Actions Taken: Change in Management, New Strategy and New Organisation Change in Management (26 th of January 2015) - The Board of Directors of edreams ODIGEO announced the appointment of Dana Dunne as New Chief Executive Officer NEW STRATEGY AND ORGANISATION New strategy More customer focus Management reorganization to become more lean and nimble Top line growth trend improving YoY variation +15% +10% +5% (5)% +5% +2% Bookings growth Revenue Margin growth +2% (2)% (4)% (3)% June-14 Sep-14 Dec-14 Old Old Old +2% +2% Mar-15 Old +6% +4% Jun % +6% Sept-15 EARLY RESULTS 4 earnings releases meeting or exceeding guidance Return to growth in Bookings Revenue margin and Adjusted EBITDA Positive trends in Adjusted EBITDA YoY variation +5% (5)% (15)% (25)% (35)% (29.2)% (29.5)% (21.5)% June-14 Old Sep-14 Old Dec-14 Old (10.8)% Mar-15 Old 0.7% 1.4% Jun-15 Sep-15 Note: Following a change in revenue recognition in Q4 of fiscal year ending March 2015, from departure date to booking date for hotels, cars and dynamic packages, figures of fiscal year ending March 2015 have been restated 8

10 AGENDA Overview Key Post IPO events & actions taken Strategy H1 Results Highlights Outlook 9

11 Management reorganisation, team in place to significantly improve the business CEO Dana Philip Dunne New Strong senior management team with diverse industry experience New Chief Operating Office & Chief Technology Officer Philippe Vimard Chief Financial Officer David Elizaga New Chief Marketing Officer Jerome Laurent Chief Vacation Products Officer Juan Uribe New Chief Revenue Officer Sophie Bernard New Chief Customer Services Officer Gerrit Goedkoop Chief People Officer Blandine Kouyaté Review of employee engagement Building one edreams ODIGEO (brand agnosticism) Focus on empowerment and aligning incentives 10

12 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; Quarterly mobile downloads increased 44% y-o-y 3 Customer experience One Front roll-out completed for all our brands (except Travellink) Customer satisfaction significantly increasing 4 Lean and nimble, with enhanced product quality 36% of our engineers already in the new agile product development methodology Faster product development - Significant number of new functionalities launched for both Mobile and Desktop 5 Revenue diversification Meta business growing 54% The proportion of bookings with service options growing by 64% in calendar year 6 Culture and talent Skills level in Middle management increasing Empowering management in the organization to deliver results in a more agile way 11

13 Channel Mix Optimization Successful shift in mix to less expensive traffic sources Focus on lower cost channels and customer retention Change in mix to less expensive traffic sources and improved individual channel performance 15% growth in bookings in Q2 in our flight business coupled with reduction of our variable costs per booking Variable cost per booking In Euros % Sep.15 Reduction Sep-16 Variable costs per booking lower compared to last year as strategic initiatives start to pay off on our marketing costs 12

14 Mobile development program: Strong growth in Mobile Bookings Flight Mobile bookings As a % of flight bookings 25% edreams Opodo Android launch across all brands One Front + New Functionalities BRANDS 24% 20% Go Voyages ios Apps Live 18% 18% 18% 20% 15% 15% 10% Q1 Jun-14 Q2 Sep-14 Q3 Dec-14 Q4 Mar-15 Q1 Jun-15 Q2 Sep % Flight mobile bookings increase y-o-y +44% y-o-y increase of quarterly Mobile downloads, reaching 5.3 million Note: On previous presentations, data was based on flight orders since past data were not available for bookings. Information is now available for the quarters mentioned. Note that the difference between an order and a booking is the fact that a booking has tickets issued and is invoiced to the customers whereas the orders, due to different reasons, may not finalize into a booking. Source: Management information. unaudited. 13

15 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

16 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 customers in their purchase decision Fully re-designed checkout path has been deployed across our mobile web 15

17 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

18 Significant improvement in Customer Experience and client satisfaction Trustpilot average scores continues to improve Ranking Nov-14 Ranking Nov-15 1 Ebookers edreams Bravofly Ebookers edreams Go Voyages Go Voyages Lastminute Travelgenio Travelgenio Opodo Bravofly Lastminute Opodo AirFrance Ryanair easyjet Lufthasa Expedia AirFrance Ryanair Norwegian BA Expedia Vueling BA Alitalia n.a 14 easyjet Air Berlin n.a 15 Alitalia Lufthasa n.a 16 Vueling Norwegian n.a 17 Air Berlin 1.6 Source: Trustpilot, average scores France, Italy, Spain, Germany & UK Note: Not weighted by country n.a: Not available Recent awards Best customer service company award voted by Die Welt (one of the biggest daily German newspapers) In the category OTAs, Opodo.de came #1 for 2015/16 A large-scale customer survey, with approximately one million participants, took into account 1,998 companies in Germany Best Online Travel Partner (global award for edreams ODIGEO). CFI has more than 110,000 readers and provides insights into some areas of international finance and development issues both in print and online Opodo.co.uk won 2 British Travel Awards 1 st Price Best Flight Booking Website 3 rd Place Best Online/Call Centre Travel Agent The most prestigious consumer-voted travel awards in the UK Over 300K people voting 17

19 AGENDA Overview Key Post IPO events & actions taken Strategy H1 Results Highlights Outlook 18

20 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 maintained for the full year Note: Cash and cash equivalent net of overdrafts 19

21 Optimization strategy around traffic mix delivering positive results Bookings In thousands 4,963 5,381 Revenue Margin +8% In million +6% Adjusted EBITDA In million % H1 Sep-14 H1 Sep-15 H1 Sep-14 H1 Sep-15 H1 Sep-14 H1 Sep-15 Competitive landscape stabilising Mobile channel bookings growing Successful shift in mix to less expensive traffic sources Individual channel improvement and micro pricing actions paying off Growing market share Positive trends in Adjusted EBITDA quarterly evolution continue YoY variation +5% (5)% (15)% (25)% (35)% (21.5)% Q2 Sep-14 Old (29.5)% Q3 Dec-14 Old (10.8)% Q4 Mar-15 Old 0.7% 1.4% Q1 Jun-15 Q2 Sep-15 Note: Following a change in revenue recognition in Q4 of fiscal year ending March 2015, from departure date to booking date for hotels, cars and dynamic packages, figures of fiscal year ending March 2015 have been restated Source: Consolidated financial statements. unaudited. 20

22 Positive results in the flight business Flight - Revenue Margin In million % % Flight Progress in strategic initiatives delivering very strong growth in bookings, +15% in Q2. First time in 7 quarters of double-digit growth Revenue margin per booking decreasing as a result of channel mix being optimized for profitability Non-Flight Q2 Sep-14 Q2 Sep-15 H1 Sep-14 H1 Sep-15 Growth in Dynamic Packages does not offset the decline in packaged tours and relative stability in other products Packaged tours business starting fundamental transformation Non Flight - Revenue Margin In million Q2 Sep-14 Q2 Sep-15 +0% H1 Sep-14 H1 Sep-15 +3% Flight bookings trend continues improving YoY variation +20% +15% +10% +5% (5)% (10)% (15)% (3)% +2% (4)% (4)% Sep-14 Flight bookings growth Non-Flight bookings growth Dec-14 +3% (9)% Mar-15 +5% (4)% Jun % (8)% Sept-15 Note: Following a change in revenue recognition in Q4 of fiscal year ending March 2015, from departure date to booking date for hotels, cars and dynamic packages, figures of fiscal year ending March 2015 have been restated Source: Consolidated financial statements. unaudited. 21

23 Expansion markets drive overall growth with Core back to positive growth in bookings Core Markets - Revenue Margin In million % Expansion markets continue to drive overall growth, both in bookings and in revenue margin % Core markets back to positive booking growth for first time since December 2013 All 3 markets within Core growing in bookings Q2 Sep-14 Q2 Sep-15 Expansion Markets - Revenue Margin In million +22% % H1 Sep H1 Sep With volume growth and market share growing, focus is on improving revenue trajectory Core markets booking trend continue improving YoY variation +30% +20% +10% +10% Core bookings growth Expansion bookings growth +14% +21% +26% +25% +3% Q2 Sep-14 Q2 Sep-15 H1 Sep-14 H1 Sep-15 (10)% (20)% (13)% Sep-14 (15)% Dec-14 (12)% Mar-15 (10)% Jun-15 Sept-15 Note: Following a change in revenue recognition in Q4 of fiscal year ending March 2015, from departure date to booking date for hotels, cars and dynamic packages, figures of fiscal year ending March 2015 have been restated Source: Consolidated financial statements. unaudited. 22

24 Debt cover ratio leave us plenty of headroom, debt reduced and stable interest coverage ratio Total Debt Coverage Ratio (Total Net Debt (1) / LTM EBITDA) x LTM Adj. EBITDA x 1.73x 5.50x Sep.15 Headroom Ratio cap Note : Covenants figures presented above are unaudited and at GEO Travel Finance level 1 IFRS net debt is calculated after deducting the financing fees capitalized Debt and Financial Expenses evolution Comparison Pre and Post IPO (million euros) March 14 Pre-IPO March 15 Post-IPO Change Financial Debt (-41.9) Net Financial Debt Financial Expenses paid (-17.6) (-1.8) Robust and steady interest coverage ratio Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q

25 AGENDA Overview Key Post IPO events & actions taken Strategy H1 Results Highlights Outlook 24

26 OUTLOOK 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 Guidance maintained for the year as a whole: Bookings: >9.7 million Revenue Margin: > 436 million Adjusted Ebitda: million (*) Source: Phocuswright European Online Overview 10 th Edition, December

27 Next Important Dates 25 th of February Q3 results Outlook Update for the FY th of June Full Year Results Outlook (*) Source: Phocuswright European Online Overview 10 th Edition, December

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