eDreams ODIGEO S.A.

Good morning, everyone, and thank you all for joining us today for our Q3 fiscal year 2024 results presentations for the nine months ending 31st of December, 2023. I'm David Alarro, the Director of Investor Relations at E3 Sogegio. As always, you can find the results materials, including the presentation and our results report on the Investor Relations section of our website. I would like to remind you that today's presentation will be shorter than the half and full year results, since in the quarterly results, we just have a limited financial review. I will now pass you over to Dana Dunn, our CEO, who will take you through our results highlights.

Thank you, David. Good morning, everyone. Thank you for joining us. I'm pleased to be here today and to tell you that the prime model continues to be super successful. with our results speaking for themselves. Once again, profit margins and profits are up significantly due to the strong Prime subscriber growth. Prime members are up 38%. We've achieved record-breaking revenues and a remarkable 54% growth in cash EBITDA over the last 12 months. In addition, cash EBITDA margin further improved five percentage points versus the nine months of FY23. Consequently, our cash EBITDA margin improved from 12.5% in the nine months 23 to 17.5% in the nine months of our financial year 24. We also added 3.2 million subscribers in the last 24 months. We are on target to meet our self-set targets for FY25. And in light of the ongoing growth and reconfirmation of our self-imposed FY25 guidance, we are pleased to announce a share repurchase program of 5.5 million shares of up to 50 million euros. If you can now please turn to slide four, which is a summary of our performance for the first nine months of our fiscal year, 2024. In the nine months of FY24, the strength of the prime model drove strong growth and significant profit improvements again, with record-breaking revenues surpassing the 500 million mark in cash revenue margin for the first time and hitting an all-time nine-month peak of 158.9 million euros in cash marginal profit. We continue to remain confident that we are well on track to meet our FY25 guidance. Some of the key highlights for today's presentation are one, In the nine months of FY24, the strength of the prime model continues to drive strong growth and profit improvements. Specifically, cash EBITDA was up 54% to 88.6 million euros, and cash EBITDA margin gained five percentage points in just one year. Cash marginal profit was up 34% year on year to a record 158.9 million euros. with the cash marginal profit improving by six percentage points over the last year. Prime's percentage share of cash marginal profit reached 78% of the group's total. Our results are mostly driven by subscription. And our free cash flow, excluding non-prime working capital movements, more than doubled from 20 million euros in FY23 to 41 million euros over the 12 months of the third quarter of FY24. The second highlight is that the EDA prime model is now firmly established as a success. In the nine months of FY24, we reached 5.4 million members. That's a 34% increase versus the same period of last year. Prime cash revenue margins significantly improved, which resulted in the prime share of total cash revenue margin increasing from 45% in the nine months of FY23 to 62% in the nine months of FY24. And the growth in cash marginal profit for prime outstripped cash revenue margin. With the increased maturity of our prime member base, cash marginal profit for prime increased by 82% versus the nine months of FY23. And the prime share of the group's total cash marginal profit reached 78% with the marginal profit improved by seven percentage points since the nine months of FY23. The third highlight, year-end guidance and our FY25 guidance. For FY24, we anticipate further growth in prime membership to end the financial year FY24 between 5.75 and 5.9 million members and a range of cash EBITDA between 120 and 122 million euros closing in on our self-set guidance. Today, more than two years on from when the guidance was announced, we continue to be on track or slightly exceed all those targets. Fourth, longer term and beyond 25, we do have strong fundamental growth potential. And that's why the attractiveness of our segment of triageal leisure, that we continue to benefit from the strong consumer demand for leisure. in which there's a clear structural shift from offline to online. Also, we'll benefit from EDO's ability to further increase household membership penetration from low levels in the markets in which we currently offer Prime. And we'll expand Prime, of course, into new markets, going well beyond the 10 that we currently operate in. There's also new customer segments, as well as launching new products and services under Prime. The fifth highlight you'll hear about today is the equity buyback. In light of our ongoing growth and reconfirmation of our self-imposed FY25 guidance, we're pleased to announce that the Board of Directors has approved a share repurchase plan of 5.5 million shares in order to fund the LTIP plans for employees until FY27 for a maximum of 50 million euros. Now let me pass it over to David, who will take you through some of the KPIs of our prime model and the strong growth and significant profit improvements in the nine months of FY24.

Thank you, Dana. If you could all please turn to slide six of the presentation, I will take you through some of the KPIs of the prime model and financial results in more detail. As expected, with the third quarter the lowest in travel demand of the year, the net ads were lower than the previous quarter. However, the run rate required for the next five quarters remains in line with that achieved in the past four quarters. In the last 12 months, we have grown the primary base by 38%. Please turn to slide 7. Profit margins were up significantly due to the growing maturity of prime members, resulting in strong improvements in profitability during the last fiscal year. In the third quarter of fiscal 24, cash margin or profit margin in our prime segment improved by 7 percentage points to 38% on a 12-month basis from 31% in the third quarter of fiscal 23. Cash EBITDA also improved substantially by 6 percentage points, increasing to 17.3% on a 12-month basis from 11.6% in the third quarter of fiscal 23. If you please turn to slide 8. Let me remind you that when looking at prime versus non-prime, we still think it makes more sense to look at our business on a last 12-month basis as prime is an annual subscription business and seasonality impacts the pattern of net ads in a particular quarter. The non-prime part is also influenced by seasonality patterns. Our KPIs reported today show strong growth and significant marginal profit uplift as maturity of our prime members increases. We have reached in the last 12 months a 58% share of cash revenue margin and 71% share of cash marginal profit being delivered from Prime members versus 44 and 56 a year ago. We are increasingly more of a subscription-led business. As we now have a much larger proportion of our Prime members in the second and subsequent years of membership cohort, the level of profitability of Prime continually improves. Please turn to slide nine of the presentation. In the nine months of fiscal 24, we delivered a strong growth in cash EBITDA and substantial improvements in margin as prime membership maturity increases. Looking at the first nine months of fiscal 24, already 62% and 78% of our cash revenue margin and cash margin of profit respectively are not from prime members. This is higher than the 58 and 71 we saw previously for the last 12 months, marking a positive tendency. We are every quarter more of a subscription business. In the nine months of fiscal 24, we delivered solid growth in cash revenue margin, increasing 10% versus the same period last year. This was achieved following the continuing successful expansion of the prime level base. Cash revenue margin for prime rose by 51%. resulting from the 38% growth of Prime members, and as expected, because Prime ARPU, as anticipated and guided, increased to 79.5 euros, converging towards our target of 80 euros per user. ARPU is rising because of the increased usage of the program and value per member. This also results in increased revenue margin because there is an increasing amount of the ARPU recognized. Cash marginal profit and cash EBITDA improved 38% and 54%, respectively, between the nine first months of fiscal 23 and the nine first months of fiscal 24. As guided, the maturity of prime members is the key driver for profitability, and significant and constant membership growth has resulted in sharp profitability improvements as increasing members renew membership. Cash margin or profit margin increased six percentage points to 31% from the nine months of fiscal 24 from the 25% that we used to have in the nine months of fiscal 23. Cash EBITDA margin in the nine months of fiscal 24 also achieved very substantial improvements and stood at 17% versus 12% in the period of 23, a five percentage points advance. Cash EBITDA was up 54% year-on-year to €88.6 million, which compares to €57.4 million in the first nine months of fiscal 2023. Please turn to slide 10 of the presentation. Revenue margin, excluding adjusted revenue items, increased by 13% to €474.2 million, mostly driven by an increase in primary revenue margin, up 67%, following the successful expansion of the prime member base. Prime revenue margin growth was somewhat offset by the non-prime revenue margin, which decreased 23% versus the nine months of fiscal 23 due to both the positive impact of a catch-up of Omicron bookings in fiscal 23 and the focus on the prime side of the business. Variable costs were broadly in line with the nine months of fiscal 23, despite higher revenue margins. as the maturity of prime members reduces the member acquisition costs. Overall, the first nine months of fiscal 24 have seen a continuation of improving trends we saw in the fiscal 23, with significant improvements in profitability as more prime members renew. Fixed costs increased by €12.3 million, mainly driven by higher personnel costs as we scale the business. This is as guided and in line with our plan. As a result, adjusted EBITDA at 55.5 million euros more than tripled versus the same period of last year at 17.2 million euros. Adjusted net income was a loss of 0.2 million euros in the nine months of fiscal 24, substantially better than the 25.8 million loss in the nine months of fiscal 23. This improvement was mostly driven by the 38.3 million increase in adjusted EBITDA, which was partially offset by 12.3 million more of the Spanish tax expenses on higher taxable profits. Turning now to slide 11, I will take you through the cash flow statement. In the nine months of fiscal 24, we ended the third quarter with a positive cash flow from operations of 62.5 million euros, following the successful expansion of the prime member base, which resulted in higher EBITDA. In the nine months of fiscal 24, we had a working capital inflow of 5.6 million euros, again driven by the growth of the business. The lower working capital inflow in the nine months of fiscal 24 versus the same period of last year is driven by the higher increase in volumes between March 22 and December 22 associated with a catch-up effect for Omicron bookings. The volumes between March 23 and December 23 have been more stable. We have ample liquidity. and headroom to deliver our plans, a consequence of our strong business model, cash generation, and active management. At the end of December 2023, the liquidity position was strong at €202 million. We have invested €36 million in the nine months of fiscal 2014, an increase of €9.1 million as we capitalized our software. Cash used in financing amounted to 17.9 million euros compared to 33.1 million euros in the first nine months of fiscal 23. The difference of 15.2 relates to the absence in fiscal 24 of two elements in the first nine months of 23. The net repayment of 11 million euros to the revolving credit facility and the payment of the cost associated with the refinancing of 4.9 million. If we look at full 12-month cycles, our free cash flow, including non-prime working capital, more than doubled from €20 million in fiscal 2023 to €41 million over the 12 months through December 2023. I will now turn the presentation over to Dana to do some closing remarks.