eDreams ODIGEO S.A.

Good afternoon, everyone, and thank you all for joining us today for our full year 2023 results presentation for the 12 months ending 31st of March, 2023. I'm David de la Roque, the Director of Investor Relations at the Grimms 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, David. And good morning, everyone. Thank you for joining us today. In our 20-plus year history, FY23 was a record year for edu across many of our important KPIs, such as revenue margin, cash revenue margin, bookings, mobile bookings, and many, many more. The key takeaway from these results is that we continued our rapid sales growth with equally sharply improved margins. In fact, our cashing for the margins improved eight percentage points since the start of FY23, moving from 9% to now 17% in Q4. And overall, we are on target to meet or exceed our self-set targets for FY25. Today, we'll take you through the key points of our strong set of results. This will include, one, EVU benefits from being a subscription company focused on leisure travel. Two, the prime model, another year of strategic success and our excellent FY23 results.

Three, our investment highlights.

And four, to conclude today's presentation with some closing remarks about our long-term fundamental growth potential well beyond FY25. Please now turn to slide four, which is a summary of our performance of our fiscal year 2023 results. As mentioned, in FY23, eDreams to Digital continued rapid revenue margin growth and sharply improved margins resulting in rising profitability. Most importantly, we are on track to meet or exceed our self-set targets for FY25. As guided, the maturity of Prime members is the most important driver for profitability. This has resulted in strong improvements in margins as we have more and more Prime members reviewing their memberships. Some of the key highlights for today's presentation are, first, Eater is a subscription company focused on leisure travel, and we benefit from the very positive characteristics of both. That means subscription business. It's a well-proven growth model, which achieves superior economic returns. And there's a leisure travel market, an extremely large, growing, and resilient market with attractive fundamentals. The second highlight, in FY23, EDU had rapid growth with significant improvements in profitability, driven by the maturity of prime members. And we have hit records across many KPIs in our 20-plus year history, including bookings being 29% above and FY22 and 42% above pre-COVID. Also, cash margin profit and EBITDA margin had a 9% point and 8% point improvement since the start of the financial year FY23. Third highlight. The prime model has proven to be a success with yet another year of impressive results. EDU is ahead of implied run rate needed to achieve FY25 target, meaning we are on track to reach our self-imposed target of 7.25 million numbers. Furthermore, a key feature of subscription companies is that they show high growth and penetration. In FY23, we reached 4.3 million subscribers. and added 1.7 million new subscribers. This is a 64% increase versus the same period last year. In addition, there is significant upside since Edo still only penetrates 2.7% of households in the top six markets in which Prime was launched. We currently have 4.6 million subscribers in total, and Edo has demonstrated the ability to capture new customers through the Prime program. In fact, 67% of Prime members are new customers, and Prime is the main driver in the rest of the world for us. Fourth, long-term and beyond FY25, Edo has strong fundamental growth potential. This is due to the attractiveness of our area of travel. We will continue to benefit from the strong online consumer leisure travel in which there is a structural shift from offline to online convenience and desire to travel. Also, we will benefit from EDU's ability to further increase household penetration in the markets in which we currently operate, given the current low penetration levels. And we will expand into new markets, moving from 10 markets to many more. Also, enter new customer segments and further launch products and services enterprise. In sum, Prime has proven to be a success. It delivered significant uplifts in profit margins, which will continue, and helped us to deliver a record year in subscribers, bookings, and revenues. We believe we have the right model, right people, and right structure to seize and deliver on the exciting shareholder value-creating opportunities ahead of us. Now I'll take you through more details about why a subscription company focused on leisure has such positive fundamentals.

Please turn to slide six.

First reason, subscription models have proven to have high growth. A feature of subscription companies is that they show high growth and penetration over many years. Companies like Costco have shown over 30 years of growth, Netflix over 20 years, Spotify over 13. In addition, major subscription businesses continue to grow their members in the last 12 to 24 months, even after the strong growth during COVID-19. If we look at edu, we have achieved the fastest growth among subscription companies. In other words, we have grown faster between year one and year five than Costco, Netflix, Spotify, or other major subscription companies. In addition, we believe there's because we only reached 2.7% household penetration in the top six markets in which Prime was launched, while other subscription-based products achieved in Europe 20 to 60% household penetration.

Please turn to slide seven.

The second reason, leisure travel is attractive. We are operating in a strong growing marketplace despite economic concerns with good growth prospects. Based on latest data published by IATA, the air industry closed 2022 stronger than the previous year. Once travel restrictions were lifted, people have confirmed a strong desire to travel. Furthermore, according to IATA, it is expected this momentum to continue in 2023. Please turn to slide eight. Consumers are prioritizing travel over other types of discretionary spending. 77% of Europeans plan to travel between January and June 2023, representing a 16% surge over the same period last year. Furthermore, 58% of respondents intend to take multiple trips in the next six months. The majority of the 6,000 respondents have said that they would be prioritizing their discretionary spending in leisure travel and food and home supplies, the two things that they can't live without. Moreover, 75% of Europeans interviewed say they will spend about the same or much more in travel over the next six months. In sum, as a subscription-based business, which is focused on travel, we have excellent fundamentals in a huge and attractive market. Now let me pass it over to Debbie, who will take you through Prime Model and our excellent FY23 results. Thank you, Dana. And if you could all please turn to slide 10 of the presentation, I will take you through the financial results in more detail. Our KPIs reported today show strong growth with record year in prime cash revenue margin and significant marginal profit uplift as maturity of prime members increases. Strong growth in cash revenue margin and cash marginal profit has led to 46% casualty margin and 56% cash one year profit in fiscal year 23 now being delivered from prime members versus 40% and 50% a year ago. You will recall that prime membership profitability increases substantially from the second year onwards as customer acquisition costs reduced very significantly. As we have a larger proportion of our prime members in the second year cohort and subsequent years of membership, the level of profitability of prime continually improves. Please turn to slide 11. On a run rate basis, we are well ahead of the required pace to achieve our target. Please note that net ads of prime members are influenced by seasonality. For example, the net ads of prime members like in the third quarter of fiscal 23, were negatively influenced by seasonality, as less people are looking to book travel at this time of the year. And net ads increased in the higher volume seasonality period, such as the fourth quarter, in which the seasonality positively influenced versus the prior quarter. While on the topic of seasonality, let me say a few words about what to expect for the period of April to June 2023, our first fiscal quarter of fiscal 24. Last fiscal year, we had an abnormally high seasonality as customers made bookings in that period that they would have normally done in the January to March period, but were not able to do because of the Omicron wave. Therefore, we do expect to have in April to June 23, a lower number of bookings than we had last year, and also a lower number of net prime member ads. But remember that the main driver of the financial results is the absolute number of prime members and the proportion of those which are in their second and subsequent years. Therefore, we do expect to have a materially better financial results in the upcoming quarter than we did one year ago, despite the fact of having a lower number of bookings. We now are truly a subscription-driven business with the majority of our revenues and profits from subscription. Thus, the actual transactions or bookings in our case is less important. And the most important KPI is truly the number of prime members. Coming back now to our target of prime members for fiscal year 25. With the excellent progress made, the figure needed to hit on a quarterly basis from now to March 25 is absolutely achievable. We will continue to improve our prime addressable market, launching prime in new countries to accelerate our run rate further. These factors give us full confidence in exceeding our fiscal 25 targets. Please turn now to slide 12. as established previously Prime Minister on track to reach or exceed the 7.25 million by fiscal 25. As you can see, our forecast implies eGREENS would reach an average 4.5% household penetration in our top six markets. In France, we already have met that goal with 4.6%. So we are confident that we will meet and or exceed in other territories too. Ever since our investor day of 2021, we have consistently used this measure of penetration over our bigger European historical markets. But since then, we have opened in formal markets and will open even more before March of 25. The target of 7.25 million Prime members will represent a much lower penetration over the households of all markets in which we will have Prime available by then. EDU is the fastest growing subscription company, and over the past five years, we have achieved compound annual growth rates of 220%, which means that we have, on average, doubled the number of prime members every year ever since our first year. Please turn to slide 13. Cash EVDA is on track to meet our target of over $118 million in fiscal 2025. The growing maturity of prime members has resulted in strong improvements in profitability during the last fiscal year. In the fourth quarter of 23, cash margin of profit continued to improve. It increased to 30% the margin from 21% in the first quarter of the year. That's a 9 percentage points improvement. And cash EBITDA also improved substantially. In the fourth quarter, cash EBITDA margin nearly doubled to 17%, versus 8.8% in the first quarter of fiscal 23. This is an improvement of 8 percentage points, well above the first, the second, and the third quarter of fiscal 23 margins. Please turn to slide 14 of the presentation. In fiscal 23, cash revenue margin hit record levels and is 47% above fiscal 22 and above pre-COVID-19 levels by 9%. Cash marginal profit and cash EBITDA have improved again this year due to the large increase of prime members in the year and the increased average maturity of those customers, with more of them being in their second and subsequent years of membership. Consequently, in fiscal 23, deferred revenue growth associated with prime has increased following the subscription of 1.7 million new members over the course of this year. This amounts to 51.4 million euros that's up 25% year on year. cash EBITDA with a full-prime contribution was $84.4 million in fiscal 2023, an impressive improvement of 91% over last year. In the fourth quarter alone, cash EBITDA was $26.9 million. That's a 17% increase versus the third quarter, sequential improvement. And year-on-year improvement, it's a 93% increase versus the first quarter of 2023, which amounts to $23 million and $14 million respectively. Please turn to slide 16 of the presentation. In fiscal 23, revenue margin hit record levels and was above pre-COVID-19 levels by 1% despite the macroeconomic headwinds and industry disruptions. Revenue margin in fiscal 23 increased 49% versus the same period last year due to higher bookings, up 29%, and the increase in revenue margin for booking of 16%, which was driven by increased quality of our business with a biblical subscription and a strong growth in diversification and traffic customer revenue. Variable costs increased by 44%, caused by the rise in the volume of bookings and an increase in variable cost per booking of 12%. Variable cost per booking increased from 25.2 euros in fiscal 22 to 28.3 euros in fiscal 23 because of higher acquisition costs to acquire prime members and a rise in merchant costs which are associated to high gross sales and are strong international expansion. Overall, fiscal 23 have seen the improving trends that we saw in the third quarter, last time we spoke, and significant improvements in profitability as we have more prime members renewing their memberships. Cash margin profit has stood at 164.7 million, an increase of 53% of the amount in fiscal 22. Fixed costs increased by 17 million euros, mainly driven by higher personal costs and external fees, both related to recruitment of new employees, and is offset by 1.1 million euros positive impact of FX for the 12-month period. I would like to remind you that we do not expect the increase in fixed costs from 63 million in fiscal 22 to 100 million in fiscal 25 target to be linear because recruitment is front-end loaded in order to deliver a business plan. As a reminder, In total, we plan to add 500 new employees by March 25, of which 80% have been added since we announced our fiscal 25 target in November of 21. As a result, adjusted EBITDA was 33 million euros. That is an increase of 15.7 million euros in a single quarter. Adjusted net income was 34.7 million lost in fiscal 23. Turning now to slide 16, I will take you to the cash flow statements. In fiscal 23, despite headwinds and normalization in the market, we ended the year with a positive cash flow from operations of 102.5 million euros, mainly due to a working capital inflow of 69.4 million. The inflow in fiscal 23 is mainly reflecting strong growth in prime vendors, The volumes between March 23 and March 22 have increased, as well as the fact that the average basket size has increased between fiscal 22 and fiscal 23. Working capital inflow is smaller than it was in fiscal 22, as the growth versus 21 was abnormally high, even 21 was the main COVID period. We have managed our liquidity position well, a consequence of our strong business model and active management. Liquidity has remained more than sufficient and stable throughout the pandemic. At the end of March 23, the liquidity position was strong at 196 million euros. We have invested 38.1 million in fiscal 23, that is 11.2 million higher than fiscal 22, increasing our development capacity and therefore higher capitalization of software development. Cash used in financing amounted to 67.7 million euros compared to 60.9 from financing activities the previous year. The variation by 16.8 relates to the reimbursement of the Super Senior RCF by 5 million and the repayment of our government-sponsored loan by 3.8. The variation is partly offset by the reduction of 15 million of the senior notes of fiscal 22 and the payment of the cost associated with these transactions for 19.5 million in 22 and 4.9 in 23. I will now turn the presentation back to Dana to go through our investment highlights and some closing remarks about ambitions for Fiscal 25 followers. Thank you, David. In the next 12 slides, I'm going to share some additional data on EU and try to summarize why we are an attractive company for investors and we believe we have ample room for valuation expansion. Please turn to slide 18. EDU has demonstrated the ability to grow its membership base and capture new customers, and we expect that to continue as the market recovers. In FY23, we reached 4.3 million subscribers. This is a 64% increase year-on-year, despite the industry moving to more normalized seasonality patterns. This growth in subscribers has continued, and as of the 15th of May, 2023, We reached 4.6 million Prime members. Also to note, 67% of Prime members are new customers to edu, demonstrating the appeal of our proposition. Secondly, we're in pole position in an attractive market and a first mover advantage. Travel is over 2 trillion euro market, and within e-commerce, travel is one of the largest segments. Within Europe, over 40% of the leisure travel market is still offline, and several percentage points of it moves to online every year. Please turn to slide 20 of the presentation. Third, within travel, EDU is the global flight leader, screen China, and we leverage this for our success and in providing a competitive advantage versus others. Please turn to slide 21 of the presentation. Fourth, EDU is unique in terms of profitability and growth. The subscription model has been proven in other industries to generate both long-term high growth and good profitability. This is the case for subscription companies such as Netflix, Costco, Spotify, amongst many others. At the same time, we're not just copying but innovating, taking the model to new heights and then doing things that no one else has done. Based on our targets and analyst consensus estimates, EDU has the fastest growing top line and EBITDA in the industry. Based upon our FY25 self-imposed targets and comparing these to sell side analyst consensus estimates For global OTAs and subscription companies, EDU is forecasted to grow revenues over the same period of time, 7 percentage points above global OTAs and 17 percentage points above global subscription companies. At cash EBITDA level, EDU CAGR is forecasted to be 21 percentage points above global RTAs, and 31 percentage points above global subscription companies. Please turn to slide 22 of the presentation. Fifthly, I would like to reemphasize that we believe, regardless of the macroeconomic environment, our business model and track record positions us to outperform the industry. We have demonstrated that we are the platform where customers prefer to book their travel. This is driven by prime best prices valuing customer experience. So meeting customer needs better than competitors through depth of choice, the speed of overall experience, after sales service, and so many other things that have taken years for us to perfect. This results in higher customer satisfaction scores than our competitors. Also, customers now in more challenging economic times will focus on price even more.

It plays to our strength and value proposition. No? No? Can you hear us?

As I was saying, if you go back to my first strategic presentation that I gave to you as investors back in 2015, I said that we would distinguish ourselves through leading in technology that would enable great products and customer experiences. While others may be turning their attention now to AI, given that AI is amongst external press, we, however, have been doing this for almost a decade. For us, this is part of our DNA, and we have been repeatedly recognized for this. Most recently, you may have seen from Google Cloud quotes, right, from Google saying, we are thrilled to have eDreams and Digital innovate with our generative AI tools. eDreams and Digital is a global reference in e-commerce. beyond travel, and knows how to best grow its customer experience with technology. Please turn to slide 24 of the presentation. Our strategy over the past years has always been very clear, which is to lead in AI for customers and shareholders by leveraging the unique advantages of pride. Starting with AI-driven teams, with all development teams using AI for greater productivity and using latest generated AI technologies with one of the largest AI teams in Europe. Com gives us a competitive advantage in that we know our customer, their history, and that they are logged in so from the very first moment where they're looking for inspiration for a specific travel plan, we know the individual customer and thus have the unique ability to individualize our entire experience from inspiration to booking to post-booking pre-travel, and all the way through to completion of a member trip. This provides unique competitive advantage for us.

Please turn to slide 25 of the presentation.

Six, we are very well positioned, well financed, and well on our way to meet our self-imposed FY25 targets, which, as you know, are prime members over 7.25 million, arguably around 80 euros, and the cash you could get in excess of 180 million.

Please turn to slide 26 of the presentation. Seven, EDU has ample room for valuation to expand.

This in turn is due to three reasons. The first reason for potential valuation expansion. Well, EDU is on track to meet its FY25 targets and is ahead of the run rate needed to achieve 7.25 million subscribers by FY25. Let's turn to slide 27. And you see, EDO is on track to hit the cash EBITDA of FY25 target of 180 million, of which 84% will be derived from the subscription business.

Now let's turn to slide 28.

The second reason for potential valuation expansion is that EDO is unique. in terms of profitability and growth. Based on the current performance and projected performance, EDU is the fastest growing in top line and EBITDA in the industry, well in excess of our peer groups. Please turn to slide 29. And the third reason for potential valuation expansion is that EDU's strong positioning relative to peers creates a significant opportunity for value upside. because EDU is trading at a meaningful discount versus consensus average valuations for global B2C subscription companies and OTA companies. EDU is also the fastest-growing and top-line in the industry, and EDU valuation applying global subscription and OTA multiples implies EDU has ample room for upside. If you could please turn to slide 31. I would like to conclude by highlighting the strong fundamental growth potential we have beyond FY25. The longer term potential beyond FY25 is huge. Prime is only currently in 10 countries. Yet as a transaction model, we are in 44 countries. Thus, over time, we will continue to expand Prime to many more countries. Also within each country, where Prime is currently offered, we are nowhere near the normalized household penetration of Prime. In other product categories that have had much longer tenure of introduction and subscription, European household penetration can be 20% to 60% depending upon the product. Our current average penetration of our top six markets is 2.7%, and we are growing more rapidly than some other famous subscription companies at a similar stage. Even in our very first market troughs, we are at 4.6% penetration, and this market is nowhere near reaching long-term penetration levels. Therefore, the penetration potential is large, even in existing markets. Third, many successful subscription programs evolve into more segmented offers by customer and product segments. This provides significant market growth opportunities for us as travel is one of the largest e-commerce markets in the world, with the travel market worth 2.1 trillion euros. Overall, ETH is a much higher quality business with a pivot to our subscription model. This delivers loyal and repeating customers, resulting in a more and more profitable and predictable business. and with ever more sustainable relationships with customers. We are delivering high underlying profitability and have huge growth potential. All of this will drive superior returns for shareholders, excellent service for customers, while at the same time transforming and revolutionizing the industry.

Thank you, Dana.

With that, We would now like to take your questions. We will answer the questions sent to us in writing in the webcast. We will take questions on a first-come, first-served basis. We will also try to group questions of similar nature. Should we not have time to respond to questions on the webcast, the investor relations team will make sure those are answered afterwards. So let me now go to the questions that we already have. The first set of questions comes from Guillerme Sampaio from BPI CaixaBank. Congratulations for the results. Could you provide some color on four different things? First thing, I'm going to read them one by one. The first thing is the year-on-year decline in bookings in Northern Europe during the second half of fiscal 23. Okay. Let me first put a context here because I've said this as well in my prepared remarks and I was going over the evolution of the Prime Members and I said and I repeat that the most important driver for our business is the number of subscribers. It is not the number of bookings anymore. When one looks at our business, you have the prime side of the business and the non-prime side of the business. We are focusing more and more and more over the prime side of the business. And in the non-prime side of the business, we are favoring quality over quantity. Now, let's go back to the question of Guillermo. In Northern Europe, we had approximately 1.8 million bookings in the second half of fiscal 23, which was about 4% less than the number of bookings in the same period, six months, in Northern Europe. Over that same period of time, we had 23 million of marginal profit in Northern Europe, which compares with 10 million of marginal profit in the second half of 2022. So that is an increase of 130%. And that reflects two things. One, that prime is getting bigger in Northern Europe and therefore is driving the results in a very significant way. And two, that for the non-prime side of the business, as I just said, we're favoring quality over quantity. So I think the results speak for themselves. The second question from Jeremy says, cover on how are the first quarter of 24 bookings trending versus the fourth quarter of 23? Well, more than versus the fourth quarter of 23, and I also said this during my prepared remarks, when one compares year on year, so first quarter of 24, April to June of 2023, versus the same period of 2022, you are going to see a decline, which was the third question, a decline in the number of bookings versus the previous year. And that is because the previous year was abnormally high due to Omicron period not having people doing bookings and therefore summer bookings being moved from the ones that are usually done in the January to March period to being done in the April to June period. what really matters for the results is the amount of prime members. And we enter this period with 4.3 million bookings when we exited the first quarter of 23 with 3.2 million bookings. So that is going to make for a lot more business coming on the prime side and also a very increased seniority of those same prime numbers. So you're going to see much bigger cash EBITDA in absolute numbers, and you're also going to see much bigger margin when you compare the first quarter of 24 with the first quarter of 23. And the last question, I responded the second and the third from Guillerme, and the fourth is, could you give us more color on the level of CAPEX anticipated for fiscal 24? We expect to have a range of 45 to 50 million euros in the capex. The exact number will depend on the speed at which we are able to recruit. As you know, both the fixed cost and the capex, there is a main driver there, which is the number of employees, and the majority of those employees work in software development, and a portion of that software development is capitalized and shown as capex. And therefore, the driver is the same for both of them. We finished fiscal 23 with 1,440 employees. As guided two years ago, we intend to get to a number of 1,550 employees, so there's still a bit more than 100 that are planning to recruit. The faster we recruit, the closer we will be to the 50 million range. If recruiting goes a bit slower, we will be closer to the 45 million of the range. With that, let me go to the second question, which comes from Pampena of GDC-Gaesco. I would like to ask you about the decision of the French government to ban national flights connected by train in less than two and a half hours. Do you think that it could be replicated in other European countries And what is your view about this decision and its potential impact in the company sector? Absolutely. So let me provide some context in this. So first of all, high-speed rail is quite well developed within Europe. And so actually, if you take within France, most of it has, in a sense, if I can say, between flights and rail, most of it has already migrated. So what do I mean by that? In our results, if we take this law that for any trip that you can do in train in less than two and a half hours should be done by trains or flights, that would mean that the bookings that we currently have for flights would go down by five one-hundredths

of 1%.

Okay? So you see how much has already transferred over because really quite frankly high speed rail has been around for well over in excess of 30 years. Right? And so when you start to think about not only that but then you start to multiply that into other countries where actually Spain is the most densely covered high speed rail network in Europe. you know, you get to something like, you know, let's say 1% of our total bookings on it. Let me turn it around and actually say there is actually potential upside, meaning because in a sense all of those flights, so to speak, have gone to rail already. We could easily offer a rail product, particularly within Prime, that could actually bring it back and capture an actual product, more value on this. David? Okay. Let me go to the next set of questions, which come from Chad Garcia, Schwartz Investment. The first one is, when do you think you'll be in a position to resume share repurchases? Thank you, Chad. We're going to have a meaningful amount of EBITDA being delivered during fiscal 24, and We're also going to have a meaningful amount on top of that of cash creation during fiscal 24. So in the 12 months, we will have that, although I remind everyone that from a cash flow perspective, there is a seasonality to it, and there is a decline in cash in the third quarter, in the three months in December. followed by an increase. So the moment in which we would have, let's say, an amount of discretionary cash to look at would be towards the end of the fiscal year. At that point in time, we will discuss at the Board of Directors what to do with discretionary cash. It will not sit idle in the balance sheet. And depending on the price of the securities at that point in time, the Board will take the best decision in the interest of shareholders. The second question from John Garcia says, on slide 26, you highlight geographic and product expansion will help you achieve your fiscal 25 goal of 7.25 million prime members. Two questions related to that. First, is the geographic expansion contemplated here mostly within Europe? So let me take this. So let me first say, slight reinterpretation of this. Even if we don't expand to any country or countries, you can see our run rate. You get to the 7.25 million on it. Now, yes, we will likely go to additional geographies over the next two years, and we could have product expansion in that. I think the more important thing is longer term. Longer term, you know, we are in 10 countries currently of perfect prime, and we're 44 countries in the transaction-based product. So whether it be this year, next year, the following year, the year after, there is a very rich, rich, large set of countries to still go to and expand to. And every time we do, just the total addressable market, the TAM, goes up. And that provides additional set of growth for us. And so that's very positive. The same thing is about the product as well. The product dimensions, absolutely. We can expand the product. category and set we started as a flight only one we then went to hotels we added cars we added packages as well in there which is important for some European segments and some working countries and it's likely in the future that we will add in additional products and services in there Now, like we always do, we will announce these once we have something that is ready and launched, and there's no point in telling our competition exactly which segment or which country we're actually going to go in. But you've seen our track record of constantly doing this and delivering on it. There is a corollary, if you will, on the question from Chad, which is, do you believe that product which product or geographic expansion will be a larger driver? They're both very meaningful and large over the next many years for us, for growth. Geographic, obviously, the 10 is very, very big and meaningful for us, extremely. But similarly, the 2.1 trillion euro travel market, right? 2.1 trillion euros travel market. provides us also with some unique opportunities that we will absolutely go after. We've shown that Prime is a great, great vehicle, and it can expand along multiple dimensions. And the last question from this investor says, your number of employees increased 40%, obviously to support your outstanding growth. Where are you at with respect to your headcount goals? Let me take this. I actually just responded to this. We finished fiscal 23 with 1,440 employees. We need to get to 1,550, which was our guidance from November 21. So we have roughly covered 80% of the weight that we needed to cover, and there's another 20% stretch left for us to reach our goals. The next set of questions come from Carlos Treviño, the analyst of Santander. The first question says, compared with 2019 calendar year, growth in bookings have decelerated over the last quarters from 50% Q1, 45% Q2, 39% Q3, 35% Q4. When do you expect growth in bookings versus 2019 fixed base to accelerate again? Well, here I have to repeat again the answer that I gave before. What is really important to focus on is the number of subscribers, and that is the driver of our results. Number of subscribers, identity of point in time, and maturity of those subscribers, which influences on the margins. As to the bookings, the bookings are going to become less and less important because, like we've discussed many times before, In prime, it's more important the number of prime members than the bookings that they actually make. We don't make much more money from a prime member that makes three bookings than another one that makes four bookings in a year. It's a marginal difference. And on the non-prime side of the business, like we said, we are going to privilege quality over quantity. And there you have the example before of the other analyst that asked about bookings in Northern Europe in particular. And you saw that in the context of a 4% decline in bookings, we were having 130% more marginal profit. So I think that's the numbers speak for themselves as to what is in the best interest of the business. The second question says, could you elaborate on the reasons behind the significantly higher growth in your classical customer revenues over diversified revenues in the last quarters. And here, I sound like a broken record, but the reason is the prime numbers, because the subscription fees are classified in this breakdown within the classical customer revenues, and therefore, as the number of prime numbers continues to increase and increase, you're going to see higher absolute numbers in the classic customers. The third one, could you give us some references on your evolution in bookings in April and May in a comparison with pre-pandemic levels? The numbers that we're seeing are good, but not as good as you had in the previous quarter, also because what I said before, the effect of Omicron the previous year, and we would be expecting in the first quarter of 24, than on a year-on-year basis. It has less bookings than the first quarter of fiscal 23, which was an absolute record ever, but it was heavily influenced by bookings as they moved in time from the January-March period to the April to June period. So it had a significant catch-up effect from bookings not done earlier in the year. The next set of questions come from Andrew Ross, the analyst from Barclays Bank. The first one says, are you happy with consensus cash VBA of $123 million in fiscal 24 with 5.9 prime numbers? I used to have a teacher in university that said happiness is a positive cash flow. So I can expand it to happiness is a meaningful amount of prime members being added. So I think we will be happy in fiscal 24. Look, we are sitting at 84.4 million of cash UDBA fiscal 23, we have an explicit guidance out there for a two-year term of 180 million, which is more than doubling from today's numbers. In fiscal 24, we're going to cover a good portion of that gap between 84 and 180, but let me just stay prudent on the numbers. only probably to reiterate that this mentioned theme has always met or exceeded every guidance target that we've given, and we have the same intention for the guidance on fiscal 25, even after all of the things that have happened since November of 21 when we gave that target, which include the wars, pandemics, inflations, and all other sorts of macroeconomic shocks, and we continue to deliver. The second question says, can you please talk about any changes to retention or churn rates for prime during fiscal 24? We're not seeing anything different in the last months, last two, three months versus what we were seeing before. So we'll talk about relative stability in that front. And the third one, I'm not going to answer because it's repetitive, because it asks about why bookings are not expected to grow in the Q1. So then I'm going to move on to the next set of questions, which come from from Firewall Advisors. And it says, congrats on the strong set of results. What would you need to see to increase your 2025 guidance? Well, I think I can repeat what I just said to the question of Andrew Ross, which is that we have met or exceeded our guidance every time for many years now, that when we get the guidance of the 7.25 million prime members and the 180 million of cash in the VA, certainly in the plan was nothing of the many things that have happened at the macroeconomic geostrategic level. And then we expect to continue to deliver. Now, on a quarter-by-quarter basis, we will continue to update you. And if there is anything that we need to say additionally to that, we will say it. But at this point in time, this is where we'll stop. The next set of questions come from Fred Sundberg of Trasidor. first one says what percentage of your bookings are related to prime versus non prime and that's not a metric we disclose and anymore what we disclose is a percentage of the category margin and the percentage of the cascading down on casualty margin it is 46% in gasoline is 66% the second question is What are your latest thoughts on the recovery trajectory of the average value per booking? Look, it really depends on customer choice, the average value per booking. We are now sitting at levels of approximately 380 euros. When the standard pre-pandemic was 450 euros, we're much better than a year ago. A year ago, we were sitting at about 300, and there's been... a fair part of the delta between 300 and 450 covered, but there's still about half that is left to recover. I have not seen in the last, let's say, three months or so, an improvement in the main drivers on the basket value, which are the number of average passengers per booking, the number of average days in destination, or the split of those bookings between domestic, short-haul, and long-haul. So it will be driven by consumer choice as we move forward, and this is something that is really difficult to forecast. So we don't really know what's going to happen. The third question from this investor is, could you give us an update on what you are seeing in terms of the unit economics of year one members versus year two members, i.e., variable cost per member, margin of profit? We communicated this once with a lot of detail, and then we gave an update. Afterwards, the last update was six months ago when we published the first half results. Since then, we have not seen meaningful change, which would merit a communication again to the market. So we continue to be probably in the same situation that we were before. The same, sorry, the next set of question is from Arnaud Lopez of Olayan Group. The first one says, from early days, CEDU has focused not on frequent travelers or business travelers, but rather on people that travel once or twice a year and that are more price sensitive. How do you see continued increases in airfares as a threat to your model? This is in the context of airlines having to spend over the next decades to become net zero, reducing routes and increasing prices to offset, et cetera. Yeah, I can take it. And then you can absolutely chip in. But I would say, first of all, a couple of things. One is if your premise is that airfares are going to increase over the next decades, why wouldn't customers be more price sensitive then? And look, I think Prime allows you to see the entire market to feel that you get the comfort of the best value for money, right? So you get the best prices, you get the best customer experience end-to-end for it. And that's what customers have said. We've shared this with you as investors in our Investor Day and a number of other forums where you've seen the level of satisfaction, the reason why people choose Prime. And so it fits very well within that context. If that's your scenario for it, That provides a very good and very attractive situation for consumers liking and continue to liking and supporting the product proposition. The next question is given membership numbers are now a peak API, could you share your thoughts on penetration? Why should an OT membership have similar OTA, I think it is what the investor meant. Remember, you have similar penetration to a streaming service. Not everyone travels every year, but arguably everyone streams. So let me take this again. So I agree with the premise that a streaming service, like let's say Netflix, for example, that people will consume their news on maybe a daily or weekly basis, etc., whereas you may travel, you know, let's say, you know, several times a year, once every three months, et cetera. It depends, right? And some people do travel actually much more than that as well. But the premise is right. So, you know, getting to, let's say, 60% household penetration, we're not trying to imply that at all. But remember, there's a big difference between where we are today, right? Today we have, I think it's around 2.4% penetration of households in our top six countries. That gives us 4.6 million members, right? So just imagine, that's doing it under the basis of, we're trying to just say it's only the, let's spread the entire 4.6 over those six countries. In fact, Prime is in over 10 countries. So the penetration level actually even goes lower for that. Now think about, okay, France is our largest market. It's actually at, I think, around 4.7% household penetration, our largest market. We've had record years in France, right? So we're growing very, very fast. So we're still on the acceleration curve in France in terms of household penetration. So you're at 4.7%, and you're still in the accelerating part. So you're not going to cap at 5%. right, or six or seven or eight. So just think about that. So even if we say, let's say 10%, then just think about 10% to apply that to all of our other markets. You come up to a massively big number on there. Then you think about geographic expansion. We're only in 10 countries, right? Whereas a transaction product, we're in 44 countries. So it does come to, you know, a very meaningful and significant one. So that was all of the questions that we have for today. It's been a nice hour. So with that, thank you everybody for joining us in person and in webcast today. Before we conclude the call, I would like to inform you that on Thursday, the 31st of August, we will be hosting a conference call for the first quarter of fiscal 24 result presentation. And in the meantime, we will be happy to receive your questions via our IR team and or the investor email address, which is investors at irinstrategia.com. Thank you very much. Have a nice day.

Thank you.

Bye.

Yes, yes, that's what happened. And we start recording. Give me a second.

Perfect, no problem. Marcos? Marcos?

Marcos, are you there? Marcos? Yes, we are here. Okay. Okay, so we are ready. So as we have agreed, we are going to read again from, please start to the second of the presentation. Then I will read all the page. Then we go, please start to the presentation. We read all those two pages. And then he's going to say, please start to the presentation, but he's not going to read that page. He's only going to say, let me just read it just in case. Oh, thank you. And then they can add it. Okay, so we're going to read, Marco, to be honest, please start with slide 32, please start with slide 33, and please start with slide 34, and we're going to read the three slices, okay? And then you can package it, okay?

Okay, that sounds good. Thank you.

Okay, so you just tell me how you want to do it, so we do the countdown again of Ten, nine, eight, whatever, and then Bena can start speaking after the countdown, okay?

Okay. Okay, no problem. Thank you. Do the countdown, and then we will start speaking when you tell us. Five, four, three, two, one, whenever you want. Thank you.

Please turn to slide 22 of the presentation. Fifth reason, I would like to reemphasize that we believe, regardless of the macroeconomic environment, our business model and track record positions us to outperform the industry. We have demonstrated that we are the platform where customers prefer to book their travel. This is driven by prime best prices, value, and customer experience. Also, meeting customer needs better than competitors through the depth of choice, to speed of overall experience, the after-sales service, and so many other things that have taken years for us to perfect. This results in higher customer satisfaction scores than our competitors. Also, customers now, in more challenging economic times, will focus on price even more, and this plays to our strength and value propositions. In addition, technological innovation, including an artificial intelligence, AI, where our strategic investments over the past 10 years have positioned us as a recognized leader amongst AI-led companies globally, way beyond just the travel industry. Also, we have scale, predictability, and resilience via Prime, with 4.6 million plus subscribers. which leads to business resilience given the higher loyalty of subscribers, margin expansion after initial acquisition, and giving us a much higher share of wallet of the travel they continue to consume.

Please turn to slide 23 of the presentation.

Since very early days, EDU has been recognized as a leader in AI in Europe, always being a step ahead. If you go back to my first strategic presentation to you as investors, that's back in 2015, I said that we would distinguish ourselves through leading in technology that would enable great product and customer experiences, while others may be turning their attention now to AI, given that AI has so much external press. We, however, have been doing this for almost a decade, For us, this is part of our DNA, and we've been repeatedly recognized for this. Most recently from Google Cloud, and I quote, we are thrilled to have eDreams of Digital innovate with our generative AI tools. eDreams of Digital is a global reference in e-commerce, beyond travel, and knows how to best grow its customers' experience with technology. please turn to slide 24 of the presentation. Our strategy over the past many years has always been very clear, which is to lead in AI for customers and shareholders by leveraging the unique advantages of Prime. Starting with AI-driven teams, with all development teams utilizing AI for greater productivity, and using latest generative AI technologies with one of the largest AI teams in Europe. Prime gives us a competitive advantage in that we know our customers, their history, and that they are logged in. So from the very first moment, whether looking for inspiration or a specific travel plan, we know the individual customer and thus have the unique ability to individualize our entire experience from inspiration to booking to post-booking, pre-travel, all the way through to completion of the member's trip.

This provides unique competitive advantage for us. Thank you very much. We are done.

Everything has been horribly recorded. Thank you so much. Thank you, Marcos. Thank you very much. Thank you. Speak soon. Take care. Speak soon. Take care.