Board meeting notes - eDreams ODIGEO€¦ · Key Post IPO events & actions taken AGENDA H1 2015-16 Results Roadshow H1 Results Highlights Outlook . BRANDS ... Worldwide Business to

Investors Presentation

January 2016

1

Overview

Strategy

Key Post IPO events & actions taken

AGENDA

H1 2015-16 Results Roadshow

H1 Results Highlights

Outlook

BRANDS

eDreams ODIGEO has built a highly successful travel business over the past 15 years

325M monthly searches

139 Web sites1

44 countries where we

operate

16M customers served

last year

#1 Flight retailer

in Europe

2

1 Includes sites across all markets, brands, and devices


Online travel is a large and growing market with untapped opportunities

3

Worldwide Business to consumer eCommerce spending (US$bn, 14-15E)

324

152 134

329

174

151

LeisureTravel

Apparel Consumerelectronics

1.9x

2.2x

Online travel penetration of total travel

42%

25% 20%

43% 45%

31%

23%

45%

EU APAC LatAm US

2013A 2015E

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

Passenger traffic growth vs. world GDP growth

1 2 3

OTA share of online travel evolution

39% 37%

41%

35%

40% 41%

40%

36%

EU APAC LatAm US

2013A 2015E

Source: Euromonitor Source: IATA 2010, Economist Intelligence Unit (EIU), ICAO

Source: PhoCusWright European Online Travel Overview 10th Edition (2015), PhoCusWright U.S. Online Travel Overview 14th Edition (2015), PhoCusWright Asia 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; 4 2015E for LatAm; 5 2015E for US and LatAm

2014 A

2015E

1

2

3

4

5

Last 10 years average ratio

of 1.9x2

1.0x

1.2x

1.4x

1.6x

1.8x

2.0x

2.2x

2.4x

2.6x

2.8x

3.0x

100

200

300

400

500

600

1980 1985 1990 1995 2000 2005 2010 2015

Passenger traffic growth

World GDP growth

Travel/GDP Ratio

eDreams ODIGEO has a strong presence in the most attractive geographic markets worldwide

8%

9%

13%

13%

16%

20%

20%

25%

25%

25%

33%

36%

36%

47%

50%

110%

France

Scandinavia

UK

ANZ

Germany

US

Japan

Italy

Chile

Spain

Mexico

Brazil

India

Peru

Colombia

China

Online travel gross bookings 2013 growth by market in increasing order of 2015 gross bookings8

eDreams ODIGEO presence

eDreams ODIGEO has strong presence in the fragmented and complex European travel market which is highly attractive to OTAs

Number of airlines1

Market share of top 4 airlines1

US Europe

c. 120 c. 60

29% 75%

Proportion of domestic vs. International

travel1

Fragmentation of flight routes1,2

Domestic 20%

Int’l 80%

Int’l 23%

Domestic 77%

Supply

Custo

mer

habits

Dis

trib

ution

Oth

er

Top 3 players4

80%

Other 20%

Top 3 players 63%

Other 37%

Number of countries

/ /

Languages 235 26

Currencies 117 1

OTA market concentration

Service fee by airlines/OTAs

50 1

3

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

c. 6% c. 24%

Multi-legged segments Many Fewer

Airline brand recognition Low High

Legal, Tax, Payment methods Many Fewer

# of affiliates Large Large

4

eDreams ODIGEO is present & growing in 15 out of 16 largest online travel markets identified by PhoCusWright


SOURCE: Capital IQ

NOTE: ROC = EBIT/Ave (FY, FY-1)

25

18

55

15

15

15

0

1

2

3

4

5

6

7

8

9

10

11

12

0 5 10 15 20 25 30 35 40 45 50 55

Revenue CAGR, FY’95-’14, %

Cruise Ships

Hotels

Tour Operators

Motor Vehicle Rental and Leasing

Online Travel Agencies

Airlines

Average ROC, FY’95-’14, Percent

Online intermediary players successfully link customers to products and thereby capturing above market-average value

15-25% 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)

Average EBIT margin, FY’95-’14, %

5 H1 2015-16 Results Roadshow

6

Overview



AGENDA

Strategy


Outlook

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 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

Change in Management (26th 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

EARLY RESULTS

− 4 earnings releases meeting or exceeding guidance

− Return to growth in

• Bookings

• Revenue margin

• and Adjusted EBITDA

Actions Taken: Change in Management, New Strategy and New Organisation

Positive trends in Adjusted EBITDA

(29.2)% (21.5)%

(29.5)%

(10.8)%

0.7% 1.4%

(35)%

(25)%

(15)%

(5)%

+5%

June-14Old

Sep-14Old

Dec-14Old

Mar-15Old

Jun-15Restated

Sep-15Restated

YoY variation

Top line growth trend improving

+2%

(4)% (3)%

+2%

+4%

+13%

+5%

+2%

(2)%

+2%

+6%

+6%

(5)%

+5%

+10%

+15%

June-14Old

Sep-14Old

Dec-14Old

Mar-15Old

Jun-15 Sept-15

Bookings growthRevenue Margin growth

YoY variation


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

9

Overview



AGENDA

Strategy


Outlook

Management reorganisation, team in place to significantly improve the business

10

Building one “eDreams ODIGEO” (brand agnosticism)

Focus on empowerment and aligning incentives

Strong senior management team with diverse industry experience

Review of employee engagement

CEO

Dana Philip Dunne

Chief Operating

Office & Chief Technology

Officer

Philippe Vimard

Chief Financial Officer

David Elizaga

Chief Marketing

Officer

Jerome Laurent

Chief Vacation Products Officer

Juan Uribe

Chief Revenue Officer

Sophie Bernard

Chief Customer Services Officer

Gerrit Goedkoop

Chief People Officer

Blandine Kouyaté


New

New New New New

http://www.codere.es/

11

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


30.6

2.6

28.0

-

5

10

15

20

25

30

35

Sep.15 Reduction Sep-16

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 costs per booking lower compared

to last year as strategic initiatives start to

pay off on our marketing costs


In Euros

-8%

Variable cost per booking

12

BRANDS

13

+55% Flight mobile

bookings increase y-o-y

+44% y-o-y increase of quarterly Mobile

downloads, reaching 5.3 million

15%

18% 18% 18%

20%

24%

10%

15%

20%

25%

Q1

Jun-14

Q2

Sep-14

Q3

Dec-14

Q4

Mar-15

Q1

Jun-15

Q2

Sep-15

eDreams Opodo Go Voyages iOS Apps Live

Android launch across all brands

One Front + New Functionalities


As a % of flight bookings Flight Mobile bookings

Mobile development program: Strong growth in Mobile Bookings

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.

BRANDS

Mobile New Product & Services - Increase focus on mobile, continues to attract a large share of our customers

14

New search and flight notifications

My trips


Search Latest searches Filters Flight status notifications

15

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


New Product and Services - One Front faster product development, customer experience improving

16

With One Front implemented, rate of innovation accelerating and conversion rates improving


Fastest Flights Elapse Time Functionality

Latest searches Functionality

New Product and Services - One Front faster product development, customer experience improving

1 Ebookers 8.1 1 eDreams 8.2

2 Bravofly 7.6 2 Ebookers 8.1

3 eDreams 7.1 3 Go Voyages 8.0

4 Go Voyages 6.9 4 Lastminute 7.9

5 Travelgenio 6.3 5 Travelgenio 5.8

6 Opodo 5.6 6 Bravofly 5.0

7 Lastminute 4.6 7 Opodo 4.8

8 AirFrance 4.1 8 Ryanair 4.3

9 easyJet 3.5 9 Lufthasa 4.0

10 Expedia 3.4 10 AirFrance 3.7

11 Ryanair 3.3 11 Norwegian 3.4

12 BA 3.2 12 Expedia 3.0

13 Vueling 2.4 13 BA 2.7

14 Alitalia n.a 14 easyJet 2.5

15 Air Berlin n.a 15 Alitalia 2.1

16 Lufthasa n.a 16 Vueling 2.0

17 Norwegian n.a 17 Air Berlin 1.6

Significant improvement in Customer Experience and client satisfaction

Trustpilot average scores continues to improve

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

Opodo.co.uk won 2 British Travel Awards

1st Price Best Flight Booking Website

3rd Place Best Online/Call Centre Travel Agent

The most prestigious consumer-voted travel awards in the UK

Over 300K people voting

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

Ranking Nov-14 Ranking Nov-15

17

18

Overview



AGENDA

Strategy


Outlook

First Half Results Highlights

Bookings trend continues to improve (+8%) and revenue margin growth stabilizing at (+6%)

Adjusted EBITDA, up +1%

Strategic initiatives on track

Good results in line with guidance

Cash Flow in line with historical seasonality pattern; cash at €106.9* million

19

Guidance maintained for the full year


Note: Cash and cash equivalent net of overdrafts

4,963 5,381

H1 Sep-14Restated

H1 Sep-15

20

Optimization strategy around traffic mix delivering positive results

In € thousands Bookings Adjusted EBITDA Revenue Margin

Positive trends in Adjusted EBITDA quarterly evolution continue… 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



Source: Consolidated financial statements. unaudited.

(21.5)%

(29.5)%

(10.8)%

0.7% 1.4%

(35)%

(25)%

(15)%

(5)%

+5%

Q2Sep-14

Old

Q3Dec-14

Old

Q4Mar-15

Old

Q1Jun-15

Restated

Q2Sep-15

Restated

YoY variation

217.6 230.8

H1 Sep-14Restated

H1 Sep-15

43.9 44.4

H1 Sep-14Restated

H1 Sep-15

In € million In € million +1% +8% +6%

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 Growth in Dynamic Packages does not offset the

decline in packaged tours and relative stability in other products

Packaged tours business starting fundamental transformation

21

Positive results in the flight business


Flight bookings trend continues improving

In € million Flight - Revenue Margin

In € million Non Flight - Revenue Margin

+8%

+7%

(4)% (4)%

+3% +5%

+15%

(3)%

+2%

(9)%

(4)%

(8)% (15)%

(10)%

(5)%

+5%

+10%

+15%

+20%

Sep-14

Restated

Dec-14

Restated

Mar-15

Restated

Jun-15 Sept-15

Flight bookings growthNon-Flight bookings growth

86.0 92.7

171.8 183.5

Q2Sep-14

Restated

Q2Sep-15

H1Sep-14

Restated

H1Sep-15

24.3 24.3

45.8 47.2

Q2Sep-14

Restated

Q2Sep-15

H1Sep-14

Restated

H1Sep-15

+3%

+0%

YoY variation



22

Expansion markets drive overall growth with Core back to positive growth in bookings

Core markets booking trend continue improving

(13)% (15)%

(12)% (10)%

+3%

+10% +14%

+21%

+26% +25%

(20)%

(10)%

+10%

+20%

+30%

Sep-14Restated

Dec-14Restated

Mar-15Restated

Jun-15 Sept-15

Core bookings growth

Expansion bookings growth


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

With volume growth and market share growing, focus is on improving revenue trajectory

In € million Core Markets - Revenue Margin

Expansion Markets - Revenue Margin

66.8 63.4

132.9 127.6

Q2Sep-14

Restated

Q2Sep-15

H1Sep-14

Restated

H1Sep-15

43.5 53.5

84.7 103.2

Q2Sep-14

Restated

Q2Sep-15

H1Sep-14

Restated

H1Sep-15

In € million +22%

+23%

-5%

-4%



YoY variation

23

3.77x

1.73x

5.50x

-

1

2

3

4

5

6

Sep.15 Headroom Ratio cap

x LT

M A

dj.

EBIT

DA

2.6 2.4 2.2 2.2 2.1 2.2 2.2

0.0

1.0

2.0

3.0

Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16

Robust and steady interest coverage ratio

Total Debt Coverage Ratio (Total Net Debt (1) / LTM EBITDA)

Debt and Financial Expenses evolution Comparison Pre and Post IPO

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 cover ratio leave us plenty of headroom, debt reduced and stable interest coverage ratio

(million euros)

March 14 Pre-IPO

March 15 Post-IPO

Change

Financial Debt 499.4 457.5 (-41.9)

Net Financial Debt

353.3 335.7 (-17.6)

Financial Expenses paid

44.9 43.1 (-1.8)

24

Overview



AGENDA

Strategy


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: €91-94 million


(*) Source: Phocuswright European Online Overview 10th Edition, December 2014

OUTLOOK 2015-16

25

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

Next Important Dates

26

Documents

Board meeting notes - eDreams ODIGEO€¦ · Key Post IPO events & actions taken AGENDA H1 2015-16 Results Roadshow H1 Results Highlights Outlook . BRANDS ... Worldwide Business to