eDreams ODIGEO S.A.

results presentation. My name is Daisy and I'll be the operator for this call. I will now hand over to your host, David de la Roze from eDreams to begin. So, David, please go ahead.

Thank you. Good afternoon, everyone, and thank you all for joining us for our Q3 fiscal year 2021 resource presentation for the three months ending 31st of December 2020. I am David de la Roze, the Director of Investor Relations at eDreams. As always, you can find resource materials including the presentation and our resource report on the Investor Relations section of our website. I will now pass you over to Dave Nadam, our CEO, who will take you through the first part of the presentation. Thank you.

Thank you, David. And good afternoon, everyone, and thank you for joining us. Today, I'll give you an overview of our Q3 FY21 results and current trading to date. Following this, David Elizaga, our CFO, will take you through our financial performance in more detail. I will then finish with some closing remarks. Please turn to slide four, which gives a summary of our performance during Q3 at Flight 21. During Q3, our short-term trading continued to be affected by travel restrictions. Despite this, we are pleased to report strong liquidity and improved strategic positioning. As you will see later, our trading has outperformed the airline industry, both regular and low-cost carriers, and most of our OTA peers. We have continued to gain market share. Our revenue margin in the third quarter FY21 was down 77% year-on-year, reaching 30 million euros. This was driven by travel restrictions and uncertainty due to COVID-19 situation, which resulted in a decrease in bookings of 65%. Also, revenue margin per booking reduced due to lower average basket value of bookings as a result of the COVID-19 situation, i.e., customers flying shorter distances, fewer passengers, et cetera. also marginal profit, which is revenue margin minus variable costs, with 6 million euros positive for third quarter FY21, despite us investing in the short term in higher call center costs to help our customers due to flight cancellations and uncertainties. And adjusted EBITDA was a loss of 10.4 million euros. Turning to liquidity, we have maintained strong liquidity despite short-term trading challenges. The main reasons for this are the high variability of our cost base, good cost management, and our unique business model. Also, the reduction of our average monthly cash burn, excluding working capital and tax, but adding the increase in prime deferred revenue from 13 million to 7 million euros. Also, working capital inflows due to higher volumes and gross sales, better cash collection from suppliers, and refunds collected. Lastly, we also benefited from lower income taxes paid. This has resulted in positive cash flows and strong liquidity. specifically net cash from operating activities improved by 31.4 million euros. We ended the quarter positively with cash flow before financing of 13 million. This is the first time since the fourth quarter of FY19 that we have achieved this. Remarkably, especially in a weak market with revenues down 77%. Also, we have managed our liquidity position well. It was 125 million euros in December and has remained stable since September 2020, despite short-term softening of trading. As we have highlighted in our July our August and our November results presentations, we are using this period under COVID-19 to improve our strategic positioning. This is demonstrated via Prime, our pioneering travel subscription program, which continues to shine during these tough times, with subscriptions continuing to grow. For example, Prime members, in the third quarter of FY21, we reached 758,000 members. That's a 55% increase versus the same period the previous year. Prime is proving to be a successful and attractive proposition to customers. Even in this current COVID-like market, we achieved an additional 94,000 new subscribers just in one quarter. Also, the prime share of our total bookings continues to expand and reached 37% in the third quarter of FY21 versus 9% the previous year. It is also important to highlight, as we do not believe the market is aware of it, is that prime deferred revenue has reached 20 million euros. That's an increase of 126% versus the third quarter of FY20. This revenue is the prime subscription fees not yet recognized into revenue until the prime customer makes another booking or the renewal date takes place. So, despite revenue margin per booking being impacted in the short term, If we would have included this revenue, revenue margin would have been higher than what we are currently reporting. Also, I'm very pleased to disclose that on Prime, despite all that has happened, we are absolutely on track to exceed 2 million subscribers by 2023. And secondly, in terms of strategic positioning, we continue to outperform the market as our booking performance at minus 65% in the third quarter FY21, continues to beat the overall European market, which is at minus 79%. In terms of current trading, our short-term outlook is largely outside our control and driven by travel restrictions caused by COVID-19. Our January and February are showing minus 76% to minus 73% bookings growth year on year. Due to the uncertainty around COVID-19 and travel restrictions, we continue to offer no guidance for this financial year. Now I will go through the points I have just mentioned in more detail in the following slides. Please turn to slide five in which we cover our diversification revenue KPIs. Overall, diversification revenue continues to improve and is the largest contributor to our revenues. Product diversification ratio and revenue diversification ratio have both improved. The product diversification ratio increased from 82 percent to 89 percent, a seven percentage point improvement in a single year. Similarly, the revenue diversification ratio increased from 51 to 55 percent in the third quarter FY21. That's a four percentage point improvement again in a single year. Please turn to slide six, which demonstrates the progress made against three other KPIs. We continue to lead the travel industry in mobile innovation and have again stood out in mobile, which bodes well for our future. In the last five years, bookings for mobile have risen exponentially from 18% of our total bookings to 58%. Mobile has always been a top priority for us and a major focus. The shift to online and specifically mobile accelerated by the pandemic leaves us in a very strong position to take advantage of future demand. Let's now look at the changes to the acquisition cost per booking index, which improved by 45 percentage points year on year. This is due to the adaptability and flexibility of our business. However, I want to make it clear that this very low level is not sustainable for the long term. As travel restrictions ease, we expect to spend more on online marketing, and therefore this ratio will trend back to more normalized levels. Lastly, on KPIs, I am delighted to talk to you about the success of Prime as a customer proposition. Prime is performing strongly in this weak market. As we have said, we want to transform the travel industry and the way in which consumers interact. We want to create unique relationships with consumers that, again, transform the way in which people think about travel, and travel providers. Prime is a good example of how we achieve this and how we continue to innovate within travel. Even in the pandemic, Prime is performing well. The number of subscribers has continued to improve and has risen by 94,000 in three months. That's from Q2 to Q3 of FY21. As you can see on the right-hand side of the chart, prime subscription rates and the share of prime continues to grow. Specifically, prime members in Q3 FY21 grew 55% versus the same period of last year, growing from 490,000 in Q3 FY20 to 758,000 in FY21. And the prime share of our total bookings quadrupled from 9% in Q3 FY20 to 37% in Q3 FY21. Also, we launched Prime in new markets, the UK, the US, and .com in November. We also launched new products, launching hotels in all of our Prime markets, such as France, Italy, Spain, Germany, UK, US, and .com. If you can now turn to slide eight, let me take you through our current trading. Current trading shows that the short-term outlook is impacted by travel restrictions. However, we continue to outperform the market. Current trading is affected by the wave of travel restrictions imposed due to an increase in COVID-19 cases and hospitalizations during the autumn to winter. After the initial lockdowns of last spring, once restrictions were lifted, consumers quickly came back into the market, and almost 50% of our bookings returned within two months. Now we see the latest wave of restrictions keeping our bookings at the low minus 70%. In comparison to the market, our trading suggested an outperformance against the airline industry, and that is both regular and low-cost carriers, meaning we're gaining market share versus the supplier direct due to better quality, more comprehensive content, and flexibility, and customer focus, unique innovative products and solutions, and of course, a focus on leisure travel. Please turn to slide nine. We are pleased to continue to report strong liquidity, a consequence of our strong business model, and active management of the situation. We have achieved this despite increasing travel restrictions, thus reducing the level of trade. This resulted in a liquidity position of $125 and $122 million at the end of December and January respectively. This is a level at which it has remained stable since September 2020 despite the short-term softening of trading. We have achieved this from three sources. First, working capital inflows, which were due to higher volumes in gross sales, better collection from suppliers, refunds collected, and prime deferred revenue increases. Secondly, lower income taxes paid. And then third, our active management of the situation, which resulted in higher variability of the majority of our costs, also fixed costs and capex reductions, and additional financial resources of $15 million from a government-sponsored loan due in 2023, and the reduction of average monthly cash burn, excluding working capital and taxes, but adding the increase in prime deferred revenue moved from $13 million to $7 million. I will now hand you over to David Elizaga, who will take you through our consolidated results.