eDreams ODIGEO S.A.

Good morning, everyone, and thank you all for joining us today for our first half fiscal year 2025 results presentation for the six months ending 30th of September 2024. I'm David Alarroz, the Director of Investor Relations at the Dreams of the Year. 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 inform you that this presentation is shorter than usual, so we will not be doing a strategy update. We have our Capital Markets Day coming up on the 31st of January, in which we will be going into great detail on either significant potential opportunity to grow with our unique platform. I will now pass you over to Dean Adam, our CEO, who will take you through the first part of the presentation.

Thank you, David. Good morning, everyone. And thank you for joining us. Edo continues to show very strong growth in the prime subscribers and cash marginal profit margin continues to build as the maturity of prime members increases. In fact, cash marginal profit margin was up nine percentage points over the last year to 44%. In addition, we added 303,000 subscribers in the second quarter of FY25 and are on target to meet our self-set targets for this fiscal year. Today, we'll take you through the key points of our strong performance. This will include, firstly, the EDU results highlights. And then second, we'll move on to reviewing our strong first half of the year results in which the prime model continues to drive very strong growth. And we'll conclude today's presentation with some closing remarks about our long-term fundamental growth potential well beyond FY25. Please turn to slide four, which is a summary of our performance for the first half of fiscal year 2025. As mentioned, our profit margin has increased significantly due to the strength of our prime model and the increasing maturity of prime members. This has resulted in cash EBITDA growing 28% year on year. Some of the key highlights for today's presentation are, first, in the first half of this fiscal year, the strength of the prime model drove significant growth and has guided improvements in profitability. The prime members grew 28% year on year, which is in line with our guidance, and reached 6.5 million members, with net ads at 303,000. Overall, we're on track to reach our three and a half year old self-imposed FY25 target of 7.25 million members. I'd like to remind you as highlighted in the past that we expect some volatility on quarterly net ads. Also cash marginal profit was 131 million euros and that's up 20% year on year. And the margin had a six percentage point improvement reaching 36.2%. That's in line with our guidance. Cash EBITDAs was 81 million euros. That's up 28% year on year. And the cash EBITDA margin improved five percentage points over the last year. More importantly, our free cash flow excluding non-prime working capital grew even more and was 42 million euros versus just 26 million euros in the first half of FY24. It's a 16 million euro improvement year on year and a remarkable increase of 61%. Second set of highlights is that the prime model continues to drive very strong growth. The growth in Prime more than offset the anticipated declines in the non-Prime side of the business and results in significant improvement in profitability. Prime revenue margin grew by 18%, following the strong growth in members and is guided, partially offset by a lower ARPU. Prime cash margin grew 45%, and the margin had a 9 percentage point improvement year in year. Prime cash EBITDA grew even more as we start to leverage a more stable fixed cost base. Together with strong top-line growth, the prime cash EBITDA grew 53%, and the margin expanded 8 percentage points. Third highlight is about our outlook. BIDO is on track to meet the 180 million euro cash cheap at the target. Primary target is in excess of 7.25 million members. And we will achieve it as well as we'll achieve to generate the free cash flow, excluding non-prime working capital, of over 90 million euros. And that's more than double the free cash flow that we generated in FY24. All of this growth has been delivered despite the many industry headwinds over the past three years. As guided in the first quarter of FY25, it's important to highlight that we expect to see better year-on-year comparatives in the second half of the fiscal year as our member base continues to increase and the maturity of our prime members grows. Year-on-year comparatives for the remaining of FY25 are expected to be as follows. Prime members in the second half of the fiscal year are expected to grow around 24% versus March 2024. And cash marginal profit margins are expected to be around 42% to 43% in the second half. This results in around 40% cash marginal profit margin for the group for the full year of FY25. Furthermore, after the successful completion of the 13th of September of the share buyback, EDU has enough treasury shares to fund its LTIP deliveries until FY27. And up to September, we've invested 36 million euros in repurchasing the shares. In addition, the Board of Directors has approved, given the undervaluation of our shares, a new share buyback program, which will start in the coming week. And this share buyback, this new share buyback program, has a double purpose. First is to acquire the company's shares necessary to fulfill its obligations arising for the company from the existing incentive plans in shares. And the second purpose is to reduce the capital stock by redeeming the remaining shares acquired subject to the approval of the general shareholders meeting. The maximum monetary amount of the buyback program is authorized up to 50 million euros. The maximum number of shares to be acquired is 7.8 million, of which 3.4 million shares will be used to fulfill the company's obligations under the FY28 LTIP program, and the remaining shares will be redeemed. Looking into the future, we've been building a long-term sustainable proposition and need to have strong fundamental growth potential beyond FY25. Prime is significantly under-penetrated in main markets and can expand into new markets as well. In sum, Prime's proven model continues to drive very strong growth and profit growth, and it has delivered significant uplift in profit margins. We believe we have the right model, the right people, the right structure to seize and deliver on the exciting shareholder value creation opportunities ahead of us. With that, now let me pass it over to David Elitaga, who will take you through some of the KPIs of our prime model and the strong growth and significant profit improvements in the first half of FY25.

Thank you, Dana. If you could all please turn to slide six of the presentation, I will take you through prime model. The profitability of eDreams was up significantly due to the strong growth of Prime members in year 2+, and the cash margin or profit margin for the Prime segment reached 44%. Cash every day also rose significantly. In the second quarter of fiscal 25, our last 12 months, cash marginal profit margin continued to advance. It increased from 36% in the second quarter of fiscal 24 to 44%, which is a 9 percentage points improvement. Group cash EBITDA last 12 months also improved substantially. In the second quarter of fiscal 25, we reached 20% margins on a last 12-month basis versus 17% on a last 12-month basis a year ago. And that is an improvement of 3 percentage points. If you please turn to slide seven, and let me remind you, and this is applicable to the previous slide as well as this slide, 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. Prime is an annual subscription business, and the non-prime part is quite influenced by seasonality patterns. APIs reported today show a strong growth and a significant uplift in marginal profit. Cash margin of profit was up 20% over the last 12 months as we have more year two plus members of Prime. Also, Prime saw growth more than offset. They anticipated and planned decline in the non-Prime side of the business as we focus on Prime. We continue to be selective on how we spend marketing and we put more focus on Prime products versus developing products and services for the non-Prime side of the business. EDU is fundamentally a subscription business focused on travel. Over the last 12 months, Prime has delivered 66% share of group cash revenue margin and 83% share of group cash marginal profit versus 54% and 64% just a year ago. There should be no dispute now that we are a subscription-based business and should be valued as such. As we now have a much larger proportion of our prime members who have renewed their subscription for a second year, third, fourth, et cetera, the level of profitability of prime continuously improves. Now, if you could all please turn to slide eight, I will take you through the financial results in more detail. In the first half of fiscal 25, we delivered a strong growth in cash EBITDA and substantial improvements in margin as the maturity of the prime member increases. In the first half of 2025, the cash revenue margin was 2% higher than the first half of 2024. Cash marginal profit and cash EBITDA improved 20% and 28%, respectively, between this first semester and the previous first semester of the year 2024. Over the past year, our subscribers have grown by 28% to 6.5 million euros, and our ARPU has been reduced by 4.2 euros. As guided in the first quarter, we have given more discounts to our prime members as our algorithms indicates it is better for lifetime value. As a result of all the above, ARPU is expected to continue at around mid 70s for the remainder of the year. While speaking about our revenues, you will notice in the breakdown by type of revenue that gradual revenue is increasing while transaction date revenue is decreasing. There are three drivers behind this. The most important, already mentioned, is higher prime discounts. But additionally, we are experimenting with higher tiers of prime that include services previously sold as ancillaries. And therefore, we're moving former transaction date revenue to gradual revenue. And lastly, it's important to note that our access to regular content continues to be intermitted. We have been dealing with the intermittent access to Ryanair content now for over 12 months, and our results already reflect all of that for a full year. We have the strength of our subscription business model continuing to deliver on material, cash EBITDA, and cash flow growth. I would like to emphasize strongly the primary rules have remained unaffected as E2M Prime continued to deliver exceptional value across nearly 700 airlines, millions of accommodation options, and thousands of car rental providers. However, we acknowledge that customers solely interested in Ryanair flights are less likely to join Prime. Overall, it's fair to say that excluding this headwind, we would have materially exceeded our target of fiscal 25 Prime members. Coming back to our first half P&L, 68% of our cash revenue margin and 87% of cash margin of profit in the first half of 25 are now from Prime members. These numbers are for the first six months. The previous numbers two slides ago were for the last 12 months basis. As guided, the profitability of our company has been up significantly due to the strong growth of prime members in year two plus. Cash margin or profit margin had a six percentage points improvement. Cash return margin in the first semester achieved very substantial improvement and stood at 22% versus 18% in the first quarter of fiscal 24. Actually, that stood at 81.1 million euros in the first half of fiscal 25, and that is an increase of 28% year-on-year. Please turn to slide nine of the presentation. Revenue margin excluding adjusted revenue items was maintained in line with last year. The strong growth of the prime revenue margin, which grew by 17%, following the strong growth in members, was partially offset as guided by a lower up. The strong growth in prime revenue margin was partly offset by the non-prime revenue margin, which decreased 21% versus the first half of fiscal 24, following the switch of our customers from non-prime to prime, and more generally due to the focus on the prime side of the business. Variable costs decreased by 6% in the first semester, despite the high revenue margin, as the increase in maturity of prime members reduces acquisition costs. Fixed costs increased by 4.3 million, driven by higher personal costs and to a lesser extent, higher IT costs. Now that we have reached our recruiting targets, fixed costs will grow less quickly than they did over the last two years. And as a result, we will see more leverage of a fixed cost for the rest of the fiscal year. As a result of all of my previous comments, adjusted EBITDA was 47.8 million euros from 36.1 in the first half of 24. Adjusted net income stood at 8.1 million euros in the first semester. Turning now to slide 10, I will take you through the cash restatement. We closed the first half with positive net cash from operating activities of 27 million as a result of the successful expansion of the prime member base. In the first half of fiscal 25, we had a working capital outflow of 19.4 million euros compared to an inflow of 31.7 in the first half of 24. This has been mainly driven by a meaningful reduction in the average basket value between June and September 24 and a seasonal reduction in the payables due to hoteliers partially compensated by an increase in volumes between June and September of 24. Should we see similar performance of the average basket value in the second half of 25 to the way it was in fiscal 24, this would result in neutral non-prime working capital in fiscal 25 for the aggregate of fiscal 25. 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 September, The liquidity position was strong at 187 million euros. We have continued to invest in our business to capture future growth with 27.5 million euros spent in the first semester. That's an increase of 4.5 million as we capitalize more software. Cash used in financing amounted to 49.3 million euros compared to 16.7 in the first half of 24. The variation of 32.6 million in financing activities mainly relates to the acquisition of treasury shares for 36.2 million euros during the first half of 25, offset by the payment done in 24 of the government sponsored loan for 3.8. I will now turn the presentation back to Dana to do some closing remarks.