eDreams ODIGEO S.A.

Good morning, everyone, and thank you all for joining us today for our full year, fiscal year 2024 results presentation for the 12 months ending 31st of March, 2024. I am David Larrot, the Director of Investor Relations at the Dream Sodillo. As always, you can find the results materials, including the presentation and our results report on the new investor relations section of our website, which includes a number of new functionalities like video recaps of results, presentations, and a new evaluation tool, among other things. I will now pass you over to Dean Adam, our CEO, who will take you through the first part of the presentation.

Thank you. Thank you, David. Good morning, everyone, and thank you for joining us. Today, we believe that, again, we've delivered outstanding results. Outstanding because we continue, each time we report, to deliver or beat our own and market targets. Over the past seven years, We've transformed our company into the leading subscription business operated in the travel segment. And EDU has become, without a doubt, a major player in the global 1.8 trillion euro travel market and the wider e-commerce ecosystem, working with nearly 700 airlines and 1.2 million hotels. We have a truly unique and highly successful subscription offering. However, it's not just the membership growth that we're proud of. We've been innovating rapidly and growing profitably too. More than doubled profitability in two years, which is truly extraordinary, reaffirming the strength of our business model and strategy. the prime model remains a consistent source of long-term value. Rising profitability is driving the free cash flow, excluding non-prime working capital. We take great pride that the ambitious FY25 goals of 7.25 million prime members and a cash EBIT of 180 million euros set back in 2021 are well within reach and that next year will mark a decade of consistently meeting expectations and guidance, something that not many can say. We are confident the growth and profitability manifest in our guidance, and also our belief in our stock is clearly undervalued. As a result, we are announcing today an acceleration of the share repurchase program for the remainder of the original 5.5 million shares targeted. We will consider subsequent share buybacks as we continue to generate free cash flow on an ongoing basis. Today, we'll take you through the key points of our strong set of results. This includes, first, a recap of the EDO results. Second, our financial results and the outstanding growth and delivery we achieved in FY24. That will be done by Depede and Itaga. I'll then take you through our strategic update and conclude today's presentation with some closing remarks about our long-term fundamental growth potential well beyond FY25. So, now please turn to slide four, which is a summary of our performance on fiscal year 2024. In FY24, the strength of the prime model drove strong growth and significant profit improvements again. Hashy, but they grew 44%. And we added 1.5 million new prime members now. Some of the key highlights for today's presentation are, first, We'll cover the highlights just mentioned about our standing growth and delivery in FY24. And this is the prime business continues to grow rapidly and is now at an inflection point financially. Cash EBITDA was up 44% to 121.4 million euros and is expected to grow another 48% in FY25 to 180 million euros. We continue to achieve significant improvement in profitability with cash EBITDA margin up eight percentage points in just two years. That is from FY22. And this equates to a rise to 18% in FY24. The prime members reached 5.8 million in FY24, and that is up 34% year on year. Prime, in fact, is the fastest growing subscription program across all industries, reaching 5.8 million FY24, a compounded growth rate of 177% over the past six years. And cash marginal profit is up 32% to 217.3 million euros in FY24. And the margin has improved six percentage points over the last year as well. Our free cash flow excluding non-prime working capital more than doubled from 20 million euros in FY23 to 45 million euros in FY24. And it's expected to double yet again in the next year. Second highlight. Edo's subscription model has proven to be effective. Edo has the highest Trustpilot scores among its peers at 4.4. This is 2.2 times greater than the average OTAs and 2.9 times greater than the average airlines. This metric has had a 26% improvement since our capital markets day back in November, 2021. Also, our NPS continues to improve, 52% improvement for prime members since our capital markets day, with 87% of our prime customers day scoring us a seven or above. Prime members book more, 3.8 times more than a non-prime customer, and that is a 41% improvement since our capital markets day. Churn rates continue to improve. Prime churn reduced 12% for prime members that are year two plus and 1% for year one prime members. And that's all since our capital markets day back in November of 2021. Today, EDU is a much more stable and predictable subscription-based business. Now 76% of our cash marginal profit is from Prime, and that's a 26% improvement in just two years, i.e. since FY22. The percent of Year 2 Plus members continues to grow, which is a key driver for improvement and profitability. 66% of total cash revenue margin comes from Year 2 Plus members. That's a 44% increase sorry, 44 percentage point improvement since FY22. And it continues to improve year on year. The third highlight is about our FY25 guidance. For FY25, we remain on track to meet our 180 million euro cash EBITDA target. So our prime members, obviously in excess of 7.25 million prime members and a free cash flow generation, excluding non-prime working capital to over 90 million euros, more than doubling versus FY24. The fourth highlight, we are announcing today an acceleration of the share repurchase program for the remainder of the original 5.5 million shares targeted. We will request authorization from the Spanish Stock Exchange Regulator to launch a tender offer for 4.5 million shares at a price of 6.9 euros. We believe our stock is undervalued, we generate cash, and we want to buy it back quicker than under the original share or purchase program. The fifth highlight, longer term and beyond 2025, Edo has strong fundamental growth potential. The attractiveness of our segment of travel is leisure, and we will continue to benefit from the strong consumer demand for leisure travel in which there's a clear structural shift from offline to online. We'll also benefit from EDO's ability to further increase household membership penetration from low levels in the markets in which we currently offer products. We'll expand Prime into new markets, moving well beyond the 10 markets in which we currently operate. And we'll enter new customer segments and further launch additional products and services under Prime. With that summary, let me highlight, sorry, let me pass this 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 FY24 results.

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. Please turn to slide six. Profit margins were up significantly. This was due to the growing maturity of the prime members, resulting in strong improvements in profits during the last fiscal year. In fiscal 24, cash margin or profit margin in our prime segment improved by eight percentage points to 40% on a 12-month basis from 32% in fiscal 23. Cash EBITDA also improved substantially by four percentage points, increasing to 18% on the margin on a 12-month basis from 14% in fiscal 23. If you please turn to slide seven, you see that we are a subscription business focus on travel and not a transaction-based business. 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. We have reached in the last 12 months a 61% share of cash revenue margin and 76% share of cash marginal profit being delivered from prime members versus 46% and 56% a year ago. We are definitely a subscription-led business. Please turn to slide eight of the presentation. In fiscal 24, we deliver a strong growth in cash EBITDA and substantial improvements in margin as prime membership maturity increases. In fiscal 24, we delivered solid growth in cash revenue margin, increasing it by 9% versus the same period last year. This was achieved following the continued successful expansion of the prime member base. Cash revenue margin for prime rose by 63%, resulting from the 34% growth of prime members and because prime output increased to 78.1 euros. Cash margin of profit and cash EBITDA improved 32% and 44% respectively between fiscal 23 and 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 numbers renew membership. Cash margin or profit margin increased six percentage points to 32% from fiscal 24 from 27% in fiscal 23. Cash EBITDA margin in fiscal 24 also achieved very substantial improvements and stood at 18% versus 14% in fiscal 23. That's a four percentage points advance. Our business is making a faster transition towards subscription and with higher margins than we anticipated back in our investor day of November 21. Back then, we expected to have cash marginal profit margins of 34% in fiscal 25, that is in a year from now. We now believe that these margins should reach 38% instead of 34%, and that's an increase of six percentage points from the results we are publishing today for fiscal 24. And this would be as a result of more of our business being prime and also generating better margins within prime. Cash EBITDA was up 44% year on year to 121.4 million, which compares to 84.4 million euros in fiscal 23. And it's expected to grow another 48% in fiscal 25 to 180 million euros. Please turn to slide 11 of the presentation. Revenue margin excluding adjusted revenue items increased by 13% to 642.6 million euros, mostly driven by an increase in prime revenue margin of 63% following the successful expansion of the prime member base. Prime revenue margin growth was somewhat offset by the non-prime revenue margin, which decreased 21% versus fiscal 23, due to the focus on the prime side of the business. Variable costs were probably in line with fiscal 23, despite higher revenue margin, as maturity of prime members increases and reduces member acquisition costs. Overall, fiscal 24 has made an outstanding growth and delivery, with a continued rapid revenue margin growth and significant improvements in profitability as more prime members renew. Fixed costs increased by 15.7 million euros, 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 87.8 million euros almost tripled versus the same period of last year at 33 million euros. Adjusted net income was a profit of 22.9 million in fiscal 24, significant improvement from the 34.7 million euro loss in fiscal 23. This improvement was mostly driven by the 54.8 million increase in adjusted EBITDA and the recognition of a deferred tax asset for prior year Spanish tax source carry-forwards. Turning now to slide 10, I will take you through the cash flow statements. In fiscal 24, we ended the fourth quarter with a positive cash flow from operations of 138.9 million euros, following the successful expansion of the prime member base, which resulted in higher EBITDA. In fiscal 24, we had a working capital inflow of 49.1 million, again driven by the growth of our business. The lower working capital inflow in fiscal 24 versus the same period of last year is a result of higher increase in volumes between March 22 and March 23, associated with a catch-up effect for Omicron bookings. The volumes between March 23 and March 24 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 March 24, the liquidity position was strong at 251 million euros. We have invested 48.8 million euros in fiscal 24, an increase of 10.7 million as we capitalize our software. Cash used in financing amounted to 31 million euros compared to 67.7 in fiscal 23. The difference of 36.7 million relates to the outflows in fiscal 23 of the reimbursement of the revolver by 30 million euros and the government-sponsored loan by 3.8 million. If we look at fiscal 24, our free cash flow excluding non-prime working capital more than doubled from 20 million euros in fiscal 23 to 45 million euros in fiscal 24, and will double in the next year to hit 90 million. included in our estimates are 54 million euros of capex for fiscal 25 which includes our normal ongoing capex previously anticipated of 50 million and 4 million extra in a new back office system we will invest in total 6 million in this system between fiscal 25 and fiscal 26 and it will generate savings of 2 million euros annually in opex from fiscal 26 onwards as a result of this investment. On the 28th of February, 2024, we announced a share repurchase plan of 5.5 million shares in order to fund the LTIP plans for employees until fiscal 27. And that was for a maximum of 50 million euros. As of 29th of May, the company acquired 986,235 shares. for a total amount of 6.4 million euros. We are confident in the growth and profitability manifested in our guidance and also believe our stock is clearly undervalued. As a result, we are announcing today an acceleration of the share repurchase program for the remainder of the original 5.5 million shares targeted. we will request authorization from the Spanish Stock Exchange Regulator to launch a tender offer for 4.5 million shares at a price of 6.9 euros. We will consider subsequent share buybacks as we continue to generate free cash flow on an ongoing basis. I will now turn the presentation back to Dana to go through our strategic update.