eDreams ODIGEO S.A.

Good afternoon, everyone, and thank you all for joining us today for our Q1 fiscal year 2021 resource presentation for the three months ending 30th of June 2020. I'm David de la Roth, and I'm the Director of Investor Relations at the Dream Sotillo. As always, you can find the resource materials, including the presentation and our resource report, on the Investor Relations section of our website. I will now pass you over to Dana Dunn, our CEO, who will take you through the first part of the presentation. Thank you.

Thank you, David. Good afternoon, everyone, and thank you for joining us. Today, I'll give you an overview of our Q1 FY21 results and current trading to date. Following this, David Alitaga, our CFO, will take you through the performance of our consolidated financial statements in more detail. I will then do our closing remarks. please turn to slide four in which i give a summary of our performance to date during the first quarter we have seen a continued progress in particular june showing a 20 percentage point improvement in bookings growth versus april which is the bottom of the trough i'm also pleased to confirm that july and august also showed further improvements March to June 2020 was extraordinary for the industry and us. Revenue margin was down 880% year-on-year, 125 million less versus Q1 last financial year, amounting to only 17 million euros in Q1 FY21. All countries were affected. This was driven overall by a decrease in bookings of 88% as a result of COVID-19. Marginal profit, which is revenue margin minus variable costs, stood at 1.1 million positive, which shows our capacity to make profitable bookings even in this unprecedented negative conditions. And adjusted EBITDA resulted in a loss of 15 million euros, 43 million euros less versus the first quarter of last year. But we at EDM's Adigio have managed our liquidity and remain strong throughout this period. Cash development were not much different from the first quarter of FY20. Our liquidity position at the end of July stood at 167 million euros, which is higher than in June, which was at 132 million euros. The main reason for this development is high variability, good fixed cost management, and the improvement in bookings, which creates working capital inflow. and in addition we have no cash risk going forward our only covenant has been waived for the whole of fy21 as we've highlighted in our july results presentation we are using the crisis time to improve our strategic positioning which is visible through our main kpis for example prime the number of prime subscribers continues to increase and in the first quarter of fy21 we reached 564,000 Prime subscribers. That's 289,000 more subscribers than the first quarter of FY20. In other words, up 105% versus only one year ago. And we're on track to reach 2 million subscribers by 2023. Mobile bookings increased to 49% of total flight bookings versus 40 percent in q1 of fy20 diversification revenue has proven to be more resilient than our classic cuff to revenues such as revenue diversification ratio up to 54 percent from 46 percent a year ago and product diversification ratio up to 86 percent from 76 percent a year ago Short-term outlook, largely driven by travel restrictions, July and August is already at around minus 60%. Bookings growth year and year. But after is still uncertain and difficult to predict. Therefore, no guidance. Overall, we've proven we have a solid and robust business model, and we are setting ourselves up to win in the post-COVID-19 world. by seizing the right market segments and improving our product and customer experience please turn now to slide five in which i will update you on current trading current trading is showing gradually improved performance It shows overall month-on-month improved performance every month since April, in which April was the bottom of the trough. Note that European top six markets are recovering faster than rest of world. Specifically, we've seen our trading improving month-on-month since April, from the trough in April at minus 96% year-on-year growth in bookings to now minus 57% which is until the 23rd of August. Furthermore, we have seen this improvement across all our main markets. Also, our top six European markets are the ones that have seen a faster recovery since June versus rest of the world. We're very conscious that COVID-19 has caused an unparalleled level of flight cancellations. Behind each flight cancellation is a customer with unrealized travel plans and in need of a refund in most circumstances. Over the past years, we've prided ourselves as having the number one ranking in customer satisfaction. However, now we are very concerned how slow the airlines have reacted in refunding customers to date, with some customers waiting five months for a refund. We continue to champion our customers towards the airlines and the industry. In addition, for our part, at the beginning of the COVID-19 outbreak, we were inundated with a request from customers for refunds. And given the slowness at which the airlines continue to refund, we are still receiving unprecedented levels of customer queries. As a result, we continue to invest in customer services in the short term and for the longer term, have an ongoing effort to create a unique, omnichannel customer experience. Our goal is to make our customer journey frictionless and pain free. Please turn to slide six. We are pleased to continue to report a strong liquidity which is the consequence of our strong business model and active management of the situation we achieved this through one high variability of the majority of our costs variable costs which were 84 percent of our total costs in first quarter decreased by 84 percent two fixed costs were reduced by 10 percent even after a negative impact of 1.9 million euros in FX in the quarter. Without this negative impact from the FX, we would have seen, in fact, a decrease in our fixed costs of around minus 20%. Three, the gradual recovery of bookings since the trough of April resulted in inflow in working capital. And four, additional financial resources of 15 million euros from a government-sponsored loan due 2020-23. the overall result was an increase from 144 million euros of liquidity in march to 167 million euros in july 2020. please turn to slide seven overall diversification revenue is proven to be more resilient than classic customer revenue And our product diversification ratio and revenue diversification ratios have both improved. The product diversification ratio increased from 76% to 86%, which is a 10 percentage point improvement in one single year. Similarly, the revenue diversification ratio increased from 46% to 54%. Again, an 8 percentage point improvement in one single year. Moving to slide eight, which demonstrates the progress made against our other three KPIs. On an annualized basis, and to be expected, our customer repeat booking rate decreased due to the spread of COVID-19, in which hardly anyone traveled. This is reflected in the stringent way in which we calculate this ratio. However, if we exclude this impact, starting since the last week of February, and we follow the trend from that point until the end of the quarter, Q1 FY21 results in a 51% customer repeat booking rate. That's a one percentage point improvement versus the same time last year. Also, we continue to have further success increasing the number of customers booking through our mobile channel. In the last five years, mobile bookings has risen exponentially from 18% of total bookings to now 49%. We have always prioritized mobile and have had the industry's top ranking for Europe. Now in a post COVID-19 world, we see mobile bookings becoming even more important. And this is reflected in that almost 50% of our bookings are actually made on a mobile device. Lastly, on KPIs, let's look at the changes to the acquisition cost per booking index. This improved by 33 percentage points year on year. And this is due to the adaptability of our business and the fact that over 80% of our costs are variable. However, I do need to emphasize that this very low level is not sustainable. As travel restrictions ease, we expect to spend more in online marketing, and this ratio will trend back to more normalized levels. I will now hand you over to David Elitaga, who will take you through our consolidated results.

Thank you, Dana, and good afternoon, everyone. If you could all please turn to slide 10 of the presentation. I will take you through the financial results in more detail. Clearly, the pandemic had a significant impact in the fourth quarter of last year, and this has continued into the first three months of our current fiscal year. Let's outline how the first quarter of fiscal 21 has been. Looking at the income statement for the first quarter of fiscal 21 on slide 10, revenue margin decreased by 18%. of COVID-19. On the cost side, variable costs decreased by 84%, which is the result of the adaptability of our business model and following the decrease in bookings. Within the variable costs, different cost items have behaved differently. Acquisition costs and merchant costs have decreased on a per booking basis, while call center costs have increased on a per booking basis. which was needed to manage the unprecedented levels of incoming requests driven by the high level of cancellations due to COVID-19. Going forward, we believe it is important that we continue to invest in customer service capacity, as there is still a large amount of refunds pending from the airlines to our customers, and we need to help them in this process. Fixed costs decreased by 10%, even after a negative impact of 1.9 million euros in foreign exchange in the quarter. Without it, we would have seen a decrease in fixed costs of around 20% year on year. As a result, the first quarter adjusted EBITDA amounted to a loss of 14.7 billion euros, which is in line with the expectations that we had for these level of bookings. If we continue down the income statement, you will note that EBITDA amounted to a loss of 15.6 million. This was primarily due to a decrease by 7.8 million in the adjusted items, from 8.7 million to 0.9, mainly due to the absence of the expense in fiscal 20 related to the closing of Milan and Berlin call centers for a total amount of $7. from the fourth quarter of fiscal 2020. Full details of adjusted items can be found in our condensed consolidated interim financial statements and in the Excel file. The DNA and impairment increased by 14% relating to the increase of the capitalized software finalized in March 2020. Our overall financial loss decreased mainly due to the variation of the income from foreign exchange differences by 1.8 billion euros, offset by the increased interest expenses from the use of the super senior revolving credit facility. The income tax line presents an income of 6 million in the first quarter of fiscal 21, which compares with an expense of 2.7 million in the first quarter of fiscal 20, mainly due to the group recognizing a loss in this first quarter, which resulted in the recognition of deferred tax assets amounting to 6 million euros, as the group believes that the first quarter tax losses will be recovered in the same or subsequent years. Finally, adjusted net income stood at a loss of 23.6 million euros. We believe that adjusted net income better reflects the real dated insurance financial statements and notes turning now to slide 11 i will take you through the cash flow statement in the first quarter of fiscal 21 despite a significant reduction in bookings the group continued to have a strong balance sheet this continues to be the case in july and in august our liquidity position at the end of july is 167 million euros including 115 million euros undrawn from a super senior revolving credit facility, placing us in a position of strength despite the subdued level of activity in the market. Cash position stood at 71.2 million at the close of the first quarter of fiscal year. The cash performance during the first quarter was driven by, first, net cash from operating activities decreased 5.7 million lower than the same quarter of last year, mainly reflecting a working capital inflow of 21.6 million euros, which was due to the volume improvement experienced in June with the easing of travel restrictions. In the first fiscal quarter, we usually would have an outflow of working capital due to normal seasonality in our business. However, given we reached the trap of activity in April, and since then we have seen increases in bookings, even if the level of bookings year on year is negative, this results in working capital inflows. Income tax swung by €4.8 million from a payment of €4.7 million to a net collection of 0.1. Decrease in adjusted EBITDA by 42.9 million, following the decrease in bookings. And we experienced an outflow in non-cash items of 13.9 million when last year we had an inflow of 7.7. The driver of this quarter is that costs linked to COVID-19 flight cancellations were provisioned in fiscal 20 year end. But the outflow has happened during the last quarter. We have decreased cash used for investments by 2.8 million from 7.2 million to 4.4 due to the implementation of cost-saving measures to minimize the temporary impact of COVID-19. Cash used in financing amounted to 1.7 million in line with the same period of last year. I will now turn the presentation back to Dana to do the closing remarks.