eDreams ODIGEO S.A.

Ladies and gentlemen, hello and welcome to the eDreams Q1 fiscal year 2022 results presentation. My name is Maxine and I'll be coordinating the call today. If you would like to ask a question, you can type your questions via the webcast. I will now hand you over to your host, David Delarose, Director of Investor Relations to begin. David, please go ahead when you're ready.

Good afternoon, everyone, and thank you all for joining us today for our first quarter year-end fiscal year 2022 results presentation for the three months ending 30th of June 2021. I'm David Leroy, the Director of Investor Relations at the DreamSolidio. 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, and good afternoon, everyone, and thank you for joining us. I'm pleased to share with you today our excellent results and our strong prospects for the future. When the pandemic hit, it was a once-in-a-lifetime event. As a company, it's a point of inflection. And as I said to you back then, we will use this moment to make us better, stronger, and emerge a clear winner. We have been seeing the fruits of these efforts and our latest set of results continue to highlight this. For the past few months, we have actually been performing above pre-COVID-19 levels for bookings and outperforming our peers. In addition, our unique subscription proposition has been going from strength to strength and bodes very well for our future growth prospects. Our subscription product, Prime, has grown 50% over the last three months to 1.5 million members now. And we've returned to positive cash EBITDA of 3.1 million, including the full contribution of Prime. In total, we are confident that as a global travel market opens more fully in the future and gets to a more post-COVID world, we will be a clear winner and we have a bright future. I'll now take you in more detail through some of the key points of our most recent results and then hand over to David Garcielos. who will discuss in more detail the performance of our consolidated financial statements. I will then finish with some closing remarks. So, please turn now to slide four, in which I give a summary of our performance to date. Overall, bookings are ahead of pre-COVID-19 levels since the month of June, and Prime has added another half a million members And we've returned to EBITDA positive, including prime fees. Some of the key highlights for today's presentation are, one, bookings are well ahead of pre-COVID levels. June bookings surpassed pre-COVID levels, and July and August accelerated and strengthened further on 2019. August bookings were 27% ahead of 2019 levels. Results are encouraging. Despite COVID-19 impact, the first quarter of this new financial year has shown encouraging signs of market recovery, particularly in leisure travel, where we, as Adrian Zedigio, had the leading market position. Revenue margin in the first quarter increased 313% versus the same period last year. This is due to bookings being up 491% and reduction in revenue margin per booking driven by lower average basket value of bookings due to the COVID-19 effect on travel. The effect of COVID-19 induced restrictions resulted in revenue margin being 48% below pre-COVID-19 levels, including the full contribution from Prime. Cash EBITDA. was 3.1 million positive, which is the first time positive since the beginning of the pandemic back in March 2020. Marginal profit stood at 13.4 million euros positive, which is 11 times the amount of the first quarter of the last financial year, FY21. And our strong liquidity position was maintained at 136 million euros at the end of July. And as I have stressed previously, our liquidity was never at list, and we were an exception in the industry. The third highlight of today is that Prime. Prime continues to reinvent travel and travel provision. And let me tell you why. First, we're the leader and inventor. of Prime, and it's a highly successful subscription-based model that is now in travel. We grew our Prime members by 116% in the 12 months through June 2021, and that would bring us to about 1.2 million subscribers. And we've now reached over 1.5 million Prime members in August. This means we added 500,000 or a half a million members in just three months, whereas the addition of the previous 500,000 members took 15 months to achieve. We will continue to grow Prime through product innovation, through geographic expansion, and we expect to achieve our target of 2 million Prime members over one year ahead of schedule. The already revised target was newly set for before the end of summer 2022, but very likely we will move forward yet again this self-imposed target that we set last May by yet another three to six months. Fourth highlight, we strongly believe we will be a clear winner in the post-COVID world because we have a unique relationship model with customers. We have an unrivaled scale advantage and now number two in the world in retailing flights. Our market share, in fact, grew in Europe by 6 percentage points to 37% last year. And we have a balanced business with diversification revenues of 63%, which is up 10 percentage points year on year, and booking through mobile devices, remain market leading in excess of 50%, while the industry average is still around 37%. Now I will go through the points I've just mentioned in more detail in the following slides. Please turn to slide five, in which I will update you on current trading. Our current trading demonstrates our strong performance and rapid turnaround experience. during the summer period due to the strong desire for our customers to travel, with bookings surpassing pre-COVID levels, even when the market has not fully recovered. As we have repeatedly said, consumers want to travel. The pandemic has not affected this, but instead only reconfirmed this. As and when restrictions are lifted, uncertainty eased, consumers return with confidence and that we want to be ready for them and take market share through superior strategy, business model, and consumer proposition. We have seen exactly this in our numbers. The company's booking levels over the past quarter have shown continuous improvement. Bookings in April were minus 51% compared to the same period of 2019. May showed strong improvement with bookings going to minus 22%. In June, bookings improved further to, in fact, surpass pre-COVID-19 levels with positive single-digit average growth rate of 2%. And in July and August, trading has accelerated further with the company now seeing strong growth levels, plus 27% in August versus pre-COVID levels. I do want to point out that I do believe that the 27% growth rate in August is an extraordinary result since we experienced pent-up demand for last-minute bookings due to the increasing in restrictions, sorry, due to the easing in restrictions in some countries, which in a normalized year, many of those bookings would have taken place in the fourth quarter or the first quarter of the new fiscal year instead of happening in August. Nonetheless, all indicators we have is that we outperform the market, which is a good indicator of our future growth prospects. Please turn to slide six, where, as evidenced by IATA's public data, you can see that we do continue to outperform the market. Our trading suggested an overperformance against the airline industry, both regular and low-cost carriers, and growth of market share versus supplier direct due to better quality, more comprehensive content and flexibility, and a focus on leisure travel. This slide shows EDU's overall performance versus IATA in Europe. where on average during fiscal year 2021, EDU has been 13 percentage points ahead of supplier direct in Europe. The most recent IATA numbers from Q1 FY22 suggest that our overperformance has extended to 52 percentage points. While there may be some seasonality and time differences between booking date and departure date, The message is clear. We do outperform the market. If you please turn to slide five, I believe it's important to highlight that the market is still recovering. And we still have some effects of COVID-19 affecting the market and our performance as we journey towards a post COVID-19 world. These COVID-19 effects are, firstly, restrictions. There are still significant restrictions from free travel, including bans, forms filling, tests, uncertainty of rules, and disparate vaccination levels. This leads to an influence on demand, meaning consumers are choosing to stay closer to home. such as taking shorter haul flights with shorter lead times to booking. And this, in turn, has an impact on revenue margin per booking. It leads to lower average basket value, which is 35% below 2019 levels. All in all, what is clear is that despite all of the above impacts, EDU results demonstrate a very strong performance in the current market and show how EDU will continue to prosper as the market transitions to a post-COVID-19 market. Please turn to slide eight. In this slide, I'm pleased to share with you the very positive results we've achieved in our subscription program, PRIME. If you remember in late May, I shared with you an important milestone. EDU has surpassed the 1 million mile mark. In less than three months from then, EDU has surpassed 1.5 million members, which means that we added over 500,000 members in less than three months. As you know, eDreams of Digital is the leader and the inventor of the first subscription-based model and travel. Over the past four years, we have invested a lot of time and resources in developing and testing our unique subscription offering into the successful product that it is today. During the pandemic, while others were cutting back, we have continued to invest and develop Prime and have seen remarkable results. In total, you can see the customer take-up is very strong, and it has large future potential. And we transition our business from a more risky transaction-based business to a much more appealing relationship subscription-based business that has strong growth prospects. In the past 12 months, our membership grew by 116%. to 1.2 million at the end of the first quarter of this financial year. Thirty-nine percent of our flight bookings are now from Prime members, indicating the benefit that members accrue from the program. And we are ahead of schedule to hit our 2 million subscriber target. This target was initially set to be achieved in 2023. As you know, we revised the target to be a full year ahead of schedule before the end of summer 2022. It is most likely that we will hit this self-imposed target yet another three to six months in advance. Let me put in context the achievement of the additional 500,000 members we just realized. Prior to this, it took us 15 months to achieve the last 500,000 members, while we now achieved it in just three months. As I said, the future is bright, and when the market returns, we have a strong proposition for customers. Please turn to slide nine. The group continues to have a strong balance sheet with a strong liquidity position of $136 million at the end of July. We are the only global 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 extension on the 30th of April until the 30th of June 2022. This liquidity position is a solid starting point for the low seasonality period in the coming months, as naturally the level of bookings decreases from September to December. Please turn to slide 10, in which we cover our diversification revenue KPIs. Overall, diversification revenue continued to improve, and this is the largest contributor to revenues. Product diversification ratio and revenue diversification ratio have both improved. The product diversification ratio increased from 76% in the first quarter of 2020 to 89% in the first quarter of 2022 financial year. That's a 13 percentage point improvement in two years. Similarly, the revenue diversification ratio increased from 46% to 63% in the first quarter FY22, a 17 percentage point improvement again in two years. We continue to believe that Prime is a key consumer offering in which we continue to evolve to a full-service, one-stop shop, towards the consumer, and this allows us to further grow our share of wallet in the future. Please turn to slide 11, which demonstrates the progress made against our two other KPIs that we disclosed. We continue to lead the travel industry in mobile innovation and have again stood out in mobile, which serves us well for the future. In the last two years, booking through mobile, a top priority for us, a major focus, has risen exponentially from 40% of our total bookings to 52%. The shift to online and specific to mobile, accelerated by the pandemic, leaves us in an optimal position to take advantage of future demand as the leader in mobile for travel. Let's now look at the changes to the acquisition cost per booking index. which deteriorated by 22 percentage points year-on-year. This is due to the adaptability and flexibility of our business. As guided, the very low level we had in the past 12 months was not sustainable for the long term. As travel restrictions ease and consumer demand increases, we expected to spend more on online marketing, and therefore this ratio would trend back to a more normalized level. However, if we compare the first quarter of FY22 with the first quarter of FY20, we still show an improvement of 11 percentage points. Now I'll pass you to David, who will discuss in more detail our financial results.