eDreams ODIGEO S.A.

Good afternoon, everyone, and thank you all for joining us today for our fiscal year 2021 results presentation for the 12 months ending 31st of March, 2021. I'm David de la Roth, the Director of Investor Relations at the Ibrimsa region. As always, you can find the results materials, including the presentation and our results 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 the excellent progress and achievements eDreams Adigio has made despite the pandemic. Following this, David Alitaga, our CFO, will take you through the performance of our consolidated financial statements in more detail and the early signs of market recovery we are experiencing in the first quarter of the new financial year, FY22. I will then continue with why we believe EDU will be a clear winner after the crisis, and we'll conclude with our view going forward and our ambition to reinvent travel. Please turn to slide four. Here I give you a summary of our performance to date. We are pleased to say that after a difficult year, the market is beginning to return, and eDreams Adigio's resumption is even stronger. We are gaining market share, and now we have over 1 million prime members. I'd like to outline briefly to you some of the key highlights in today's presentation. First, as expected, FY21 was heavily affected by travel restrictions. The COVID-19 led to 79% reduction in revenue margins. We managed well our adjusted EBITDA, demonstrating the adaptability and strength of our business model. Our marginal profit was 25 million euros positive in FY21, despite COVID-19, and us investing in our call center to help our customers through this period. And, as you all know, the liquidity of EDU was never at risk. During the first quarter of FY22, we are seeing clear signs of improvement. For example, the US market as a lead indicator has reached 12% below its 2019 levels as of mid-May. In Europe, vaccination rollout continues to improve and is expected to follow the US trend. and our own bookings numbers already show strong improvements. In the month of May until the 22nd of May, we were already at minus 28% versus pre-COVID-19 levels. Three, we will also talk to you about why we strongly believe EDU will be a clear winner after the crisis, because we're structurally well-positioned. Our market share in Europe is growing 6 percentage points just in one year to just over 37%. Prime now has 1 million members and accounts for 39% of our flight bookings. And we are way ahead of schedule to hit our 2 million subscriber target, which we will likely meet a year ahead of schedule, latest by the end of summer 2022. Point four, we will be concluding this presentation by looking forward with our ambition to reinvent travel. And this will have four components, the continuing the growth of Prime, creating a leading-edge transportation platform, building a customer-centric retailing platform, and delivering an effortless omni-channel customer service. We'll talk you through all of these in more detail. But for now, let me hand you over to David Elizaga, who will take you through our FY21 consolidated results.

Thank you, Dana, and good afternoon, everyone. You may have noticed that last year's annual results were in July, but this year we have brought our reporting forward by over a month, demonstrating significant improvement in our reporting and our commitment to delivering our financial information in a timely way. If you could all please turn to slide six of the presentation, I will take you through the financial results in more detail. Unsurprisingly, fiscal 21 was heavily affected by travel restrictions and COVID-19 led to a 79% revenue margin decrease. This was due to a decrease in bookings of 70% and lower revenue margin to booking driven by lower average basket value of our bookings. Due to COVID-19 travel restrictions, customers booked on average with fewer passengers per trip and to destinations closer to home, so basket values were lower than usual before the pandemic. As a result, the revenue received from providers is smaller, and the classic and diversification revenue we get from customers is also lower during this COVID period. When travel patterns return to normal, we expect the revenue margin for booking to increase from its current level. In fiscal 21, our focus has been on what we can control to continually build and further enhance a high-quality and adaptable business model. This is demonstrated by a marginal profit in fiscal 21 being 25 million positive, despite the investment in our call center to help our customers. Adjusted EBITDA was a loss of 38.1 million in fiscal 21, and adjusted net income was a loss of 86.8 million euros. Turning now to slide seven, I will take you through the cash flow statement. In fiscal 21, despite continued travel restrictions, net cash from operating activities improved by 101.8 million, and we ended the year with positive cash flow from operations of 0.4 million, mainly due to a working capital inflow of 65 million euros. This was driven by high variability of our costs and good fixed cost management. working capital inflows from stronger volume in the last two weeks of fiscal 21 than the same period of fiscal 20, better collection from suppliers, refunds collected, and increased prime deferred revenue. We also benefited from lower income tax pay. The group continues to have a strong balance sheet, maintaining a robust liquidity position of $106 million at the end of March, including $94 million undrawn from a super senior revolving credit facility. This undoubtedly places us in a position of strength where no more trading conditions return. We have used cash for investments of 21.7 million in fiscal 21, decreased by 14.5 on fiscal 20 to minimize the temporary impact of COVID-19, while the comparison as well affected by the completion payment for the acquisition of way low in the previous year. Cash used in financing reduced to 69.5 million compared to 74.9 in the same period of last year. The variation by 144 million in financing activities mainly relates to the reimbursement of 54.5 million under the RCF, offset by the drawdown of 15 million under the government-sponsored loan, and the drawdown of 109.5 under the RCF in the previous year, offset by the net payments for acquisition of treasury shares for 6 million. As we have pointed out in the third quarter, There is a cash inflow through the incremental deferred revenues generated from the subscriptions at the time of subscription renewal. Currently, the increase in the deferred revenue from prime is included within the working capital movement, but it does not have the same dynamics as the rest of the working capital. Our working capital presents an inflow or outflow mainly due to an increase or decrease in bookings from one period to another. On the other hand, the increase in deferred revenue from prime reflects a cash-in which will not flow out, and it's just a matter of time that it is recognized as revenue in the P&L. In fiscal 21, prime deferred revenue reached 22 million euros, which was an increase of 95% versus fiscal 20, even under COVID travel restrictions. If you can now turn to slide eight, please. A key point of our adaptability is our cost structure. More than 80% of our volume of costs pre-pandemic are variable, and we have the ability to adapt and rapidly reduce fixed costs of capex if needed as well. This is proven by the decrease of 79% in our fiscal 21 revenue margin, coupled with a reduction in variable costs of 75%. In addition, The measures rapidly put in place post the outbreak of the pandemic resulted in 32 million euros of cash savings decreasing our fiscal 21 fixed cost and cash needs versus the levels that we had before the pandemic on the third quarter of fiscal 20. Let's turn to slide nine. Diversification also contributed to adaptability. Another element of our adaptability is our ability to diversify geographically. We knew early on that the pandemic was going to disproportionately affect certain travel markets more than others. Thus, we focused on several markets in order to benefit. For example, we relaunched our U.S. proposition and localized websites in Arabic to better serve travelers in the Middle East region, as well as invested in our Australian websites as well. We have therefore expanded internationally. Bookings outside the top six markets now account for around 34% of our total bookings versus 25% in fiscal 20. We will continue to focus on this, leveraging our scale to improve performance. Our revenue diversification initiatives continue to develop. Product diversification ratio and revenue diversification ratio continue to grow and have increased to 88% and 57% in the fourth quarter, up from 85 and 53 in the fourth quarter of last year, rising 3 and 4 percentage points respectively in just one year, and up 63 and 30 percentage points since fiscal 15. Mobile bookings reached 56% of our total flight bookings in fiscal 21, up 12 percentage points from the same period of last year. Mobile has always been a top priority and a major focus for us. The shift online, and specifically mobile, accelerated by the pandemic, leaves us in a very strong position to take advantage of future demand. Please turn to slide 10. The group continues to have a strong balance sheet with a solid liquidity position of $106 million at the end of March. The average liquidity of the group was $116 million since September 20, despite a temporary softening of trading. This places us in a position of strength for when normal activity resumes. We are the only OTA that did not require a capital or debt raise to navigate through the pandemic. So the liquidity of eDreams was never at risk, which is amply demonstrated by the again unanimously approved covenant waiver extensions on 30th of April, which is valid until the end of June of 2022. Let's move now to trading and the recent signs of market recovery we are experiencing in the first quarter of fiscal 22. as evidenced by industry data, our booking growth, and vendor demand. If you can please now turn to slide 12, let me start by saying that there is no uncertainty that there will be recovery. There is only uncertainty about how quick it will come. Key U.S. data supports a strong travel recovery. In the U.S., air traffic continues to improve with daily TSA screenings in mid-May, just 12% below 2019 levels. Moreover, if you look at the chart on the right-hand side, what it tells you is that there is a direct correlation between vaccination level and bookings in the United States. In the U.S., the reproduction factor of COVID-19 has been less than one since the 21st of December 2020, and the regression analysis proves that as more people are vaccinated, travel activity picks up. Please move to slide 13. While the data points from previous slide are U.S.-focused, let's now turn to Europe. As Europe improves its vaccine rollout, it is expected to follow the U.S. trend. While Europe started slower than the U.S. in speed of vaccination, it has been catching up and even surpassing the U.S. And on the right, in our core countries, 36% of the population have received their first vaccine dose, a number that has tripled since March. Please turn to slide 14. With many traditional travel agencies impacted by the last year and being closed, Europeans are increasingly choosing online booking channels. Online travel penetration advanced three percentage points in 2020 to 55%, and the online share of travel bookings is expected to climb to 60% by 2024. We strongly believe the shift online will benefit OTAs versus supply direct. A modern digital consumer wants to search the market into things and be in control of options between price, convenience, et cetera, in a state-of-the-art, easy-to-use service. This is the expectation of a modern digital consumer. Our trading suggests an outperformance against the airline industry, both regular and low-cost carriers, and growth of market share versus supply direct. This is due to better quality, more comprehensive content, flexibility, and a focus on leisure travel. We also continue to lead the travel industry in mobile innovation, which is another undisputable trend of the modern digital consumer. In the last six years, bookings through the mobile channel have risen exponentially from 10% of adult bookings three percentage points below the industry average, to now 56%, which is 19 percentage points ahead of the European industry average. Mobile has always been a top priority for us and continues to be 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. If you can please now turn to slide 15, our booking numbers already show strong improvements. Bookings in March were 9 percentage points better than February. April showed a further 11 percentage point improvement from March. And by the first three weeks of May, we were already at minus 28 percent, which is another 23 percentage point improvement versus April. Our numbers are solid signs of increasing travel demand. The improvement shows that travel demand is there. as more people are vaccinated and travel restrictions are lifted. Travel activity has picked up quickly and meaningfully, and our proposition to customers is superior. Please turn to slide 16. We are in great shape. Inventive demand is evidenced by our searches data, where we have seen a substantial increase in searches for long-dated departures, almost doubled since November-December. If you can please now turn to slide 17, you can also see that our most recent bookings data also show a clear recovery towards pre-COVID levels, both in advance bookings as well as bookings for two or more passengers. I will now turn the presentation back to Dana, who will take you through why we believe EDU will be a clear winner after the crisis and our view going forward.