eDreams ODIGEO S.A.

Good morning, everyone, and thank you all for joining us today for our Q3 fiscal year 2025 results presentation for the nine months ending 31st of December 2024. I'm David de la Roth, the Director of Investor Relations at eDreamSodillo. As always, today's presentation is short and unusual because on quarterly results, we only do a limited financial review, and you can find the results materials, including the presentation and our results report, in the investor relations section of our website. I will now pass you over to 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 today. Edo continues to show very strong growth in Prime subscribers and cash marginal profit margin continues to build as the maturity of Prime members increases. In fact, cash marginal profit margin for Prime in the last 12 months was up 8 percentage points over last year. And that brings it to 46% for the cash margin profit margin for Prime. In addition, we added 305,000 subscribers in the third quarter of FY25. And today, we're already above 7 million members and on track to meet our self-set targets for FY25. Today we'll take you through the key points of our strong performance, and this will include three things. First one is just discussion about the NEO results highlights. Second will be then a review of our strong nine-month results in which the prime model continues to drive very strong growth for us. And then third, we'll conclude today's presentation with some closing remarks. You can all turn now to slide four, which is a summary of our performance for the first nine months of fiscal year FY25. As mentioned, our profit margin has increased significantly due to the strength of our prime model and the increasing maturity of prime members. In turn, this has resulted in cash EBITDA growing 40% year-on-year, and 70% versus the same quarter of the previous year. Some of the key highlights for today's presentation are, first, in the nine months of FY25, the strength of the prime model drove significant growth and has guided improvements in profitability. Specifically, prime members grew 26% year on year, reaching 6.8 million members, with net ads at 305,000. we were on track to reach our three and a half year old self-imposed FY25 target of 7.25 million members. Also cash marginal profit for the nine months of FY25 was 201 million. That's up 27% year on year. And the margin had a six percentage point improvement reaching 38%. It was 41% in the third quarter of FY25, and this makes the progress towards our guidance of 42 to 43% the second half of fiscal year 25. Tashibata for the nine months of FY25 was $124 million. That's up 40%. Year on year and cash, but margin improve 6 percentage points. Versus the 9 months of fiscal 24. More importantly, free cash flow, excluding the non prime working capital. Grew even more and it was 69Million in the 9 months of 25. Versus 36Million in the 9 months of 24. That's a 33Million improvement year on year. And an increase of over 91%. During that period, as a result of the strong free cash flow, the company was already repurchased in the 9 months of this fiscal year, 40.1Million euros of its Treasury shares. As part of our ongoing equity share buyback program for a total amount of around. 90Million euros. And we will continue to buy more, taking advantage of how undervalued we think our shares are. Second highlight is that the prime model continues to drive very strong growth. The growth in prime more than offsets the anticipated decline in the non-prime side of the business and resulted in significant improvements in overall e-new profitability. Prime cash revenue margin for the nine months of FY25 grew by 19%, following this strong growth in numbers and is guided partially offset by the lower RP. Prime cash marginal profit for the nine months of FY25 grew 43%, and the margin had an 8 percentage point improvement year on year. and also prime cash EBITDA for the nine months of FY25 grew even more as we started to leverage a more stable fixed cost base. Together with the strong pipeline growth, prime cash EBITDA grew 52% and the margin expanded by seven percentage points. Third highlight is our outlook. EDU is on track to meet the 180 million cash EBITDA target and prime member target of 7.25 million. We're also on track to achieve our free cash flow, excluding non-prime working capital of over 90 million euros. And that is more than double versus the fiscal year 2024. All of this growth has been delivered despite many industry and other 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 part 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 the cash marginal profit margins are expected to be around 42 to 43% in the second half, resulting in around 40% cash marginal profit margin for the group for the full year of FY25. Looking into the future, for FY26, we've made public at our Capital Markets Day three new targets. The first one is Prime members, over 1 million new members. Second is cash EBITDA in the range of 215 to 220 million. And the third is generation of free cash flow excluding non-prime working capital of over 120 million euros. And longer term, we've also said that prime members will grow in excess of 10% in FY27 and 28, which shows once again EDU has strong fundamental growth potential beyond FY25, being significantly under-penetrated in many markets. In sum, Prime's proven model continues to drive very strong revenue and profit growth, and it has delivered a significant uplift in profit margins. We believe we have the right model, the right people, and the right structure to seize and deliver on the exciting shareholder value-creating opportunities ahead of us. With that, now let me pass it over to David Alitaga, who will take you through some of the KPIs for our Prime model, and the strong growth in significant profit improvements in the first nine months of FY20.

Thank you, Dana. If you could all please turn to slide six of the presentation, I will take you through prime model. Adrian's profitability was up significantly due to strong growth of prime members in the year two plus. Cash margin or profit margin for the prime segment reached 46%. Cash EBITDA also rose significantly. In the third quarter of fiscal 25, our last 12 months, prime cash margin or profit margin continued to advance. It increased to 46% from 38% in the third quarter of fiscal 24, an 8 percentage points improvement. Group cash EBITDA for the last 12 months also improved substantially. In the third quarter of fiscal 25, cash EBITDA margin reached 22% versus 17%, in the third quarter of fiscal 24 that's an improvement of five percentage points if you please turn to slide seven 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 the non-prime part is quite influenced by seasonality patterns our kpis reported today show strong growth and significant marginal profit uplift Past marginal profit was up 25% over the last 12 months as we have more year two plus members of Prime. Also, Prime's strong growth more than offset the 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. As we discussed, our first half results In the third quarter of fiscal 25, we have moved past the one-year period of intermittent access to Ryanair, which had a meaningful impact on the non-prime side of things. This has led to a reduced decline compared to previous quarters, with the third quarter of fiscal 25 down only 6% compared to the third quarter of fiscal 24. That's a notable improvement from the 17% decline of the non-prime side of things in the first nine months. This evolution in the non-prime side of the business contributed to a consolidated 10% increase in revenue margin and cash revenue margin in the third quarter of fiscal 25, compared to a 3% increase during the first nine months. This growth is encouraging, especially considering that the strong growth rates in the prime business were previously offset by the challenges in the non-prime business, partly due to the intermittent access to Ryanair. EDU is fundamentally a subscription business focused on travel. Over the last 12 months, Prime has delivered 67% share of group cash revenue margin and 83% share of group cash marginal profit versus 58 and 71 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 year, the level of profitability of Prime continuously improves. If you could all please turn to slide eight of the presentation, I will take you through the financial results in more detail. In the nine months of fiscal 25, we delivered a strong growth in cash EBITDA and substantial improvements in margin as the maturity of prime members increases. In the nine months of fiscal 25, cash revenue margin was 3% higher than the nine months of fiscal 24 and up 10% in the quarter. Cash marginal profit and cash EBITDA improved by 27% and 40%, respectively, between nine months of fiscal 24 and fiscal 25. If we look at the comps quarter on quarter, cash marginal profit improved by 41% and cash EBITDA by 70%. Over the past year, our subscribers have grown by 26% to 6.8 million and our ARPU was reduced by 5.5 euros. As guided in the first quarter of fiscal 25, we have given more discounts to our prime members as our algorithms indicate it is better for lifetime value. As a result of all the above, our pool is expected to continue at around mid 70s for the remainder of the year. Coming back to our nine month P&L, 70% of our cash revenue margin and 87% of our cash marginal profit in the first nine months are now from prime members. As guided, profitability was up significantly due to strong growth of prime members in year two plus. Cash marginal profit margin increased to 38% for the nine months of fiscal 25 from 31% in the nine months of fiscal 24. That's a six percentage points improvement and 41% in the third quarter of fiscal 25, making good progress towards the guidance of the range of 42 to 43% for the second half of fiscal 25. Cash dividend margin in the nine months of fiscal 25 also achieved very substantial improvement and it stood at 23% versus 17% in the nine months of fiscal 24. Cash EBITDA stood at 124 million in the nine months of fiscal 25, up 40% 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 prime revenue margin, which for the nine months of fiscal 25 grew by 18%, following the strong growth in members, was partially offset as guided by a lower ARPU. This strong growth in prime revenue margin as anticipated was partly offset by the non-prime revenue margin, which decreased 17% versus the nine months 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 5% in the nine months of fiscal 25, despite the higher revenue margin, as an increasing maturity of prime members reduces acquisition costs. Fixed costs increased by 7.4 million euros, 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, adjusted EBITDA for the nine months of fiscal 25 was 79.7 million euros. And that is 123.7, including the full contribution of prime, from 55.5 million in the nine months of fiscal 24. Adjusted net income stood at 14.5 million in the nine months of fiscal 25. Moving now to slide 10, I will take you through the cash flow statement. We closed the nine months of fiscal 25 with a positive net cash from operating activities of 48 million. Net cash from operating activities decreased by 14.5 million versus the nine months of the previous year. while in the third quarter of fiscal 25, we show a very meaningful improvement of 32.5 million, which improves the cash flow year-to-date meaningfully, mainly reflecting, first, the working capital improvements of 18.2 from an outflow of 26 in the third quarter of 24 to an outflow of only 7.9 in the third quarter of 25, driven by a higher increase in prime deferred revenue, higher hotel-related working capital performance and improvement of average basket value in the third quarter of 25 versus the second quarter of 25. And second, while in the nine months of 25, we saw working capital outflow of 27.3 compared to an inflow of 5.6, in the nine months of 24, this difference is primarily attributable to a substantial working capital outflow of 19.4 in the first half. contrasting with a 32 million inflow in the first half of 24, offset by the reversion trend previously described for the third quarter of fiscal 25. We still think that 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. 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 2024, the equity position was strong at 189 million euros. We have continued to invest in our business with 41.6 million euros spent in the nine months of fiscal 25 an increase of 5.6 million as we capitalize our software. Cash used in financing amounted to 54.2 million compared to 17.9 million in the nine months of fiscal 24. The variation of 36.3 in financing activities mainly relates to the acquisition of treasury shares of 40 million euros during the nine months of fiscal 25. I will now turn the presentation back to Dana to do some closing remarks.