eDreams ODIGEO S.A.

Good morning everyone and thank you all for joining us today for our fiscal year 2025 resource presentation for the 12 months ending 31st of March 2025. I'm David de la Roth, the Director of Investor Relations at the Dream Studio. As always, you can find the resource materials including the presentation and our integrated annual 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, Debbie. Good morning, everyone. And thank you for joining us. Fiscal year 2025 has been a truly remarkable year for EDU. This past financial year marked the culmination of our ambitious 3.5 year strategic roadmap that we launched in November of 2021. I'm incredibly proud to report today that we have successfully achieved our long-term targets. If you recall, we set our targets to achieve 7.25 million prime members and 180 million euros of cash EBITDA when we had only 1.9 million members and only 2.9 million cash EBITDA. Despite a number of significant global headwinds, including Omicron variant, invasion of Ukraine, conflict in the Middle East, broader geopolitical instability, double-digit inflation, high consumer interest rates, and significant increases energy prices during this period, nevertheless, we still achieved those targets. Importantly, this was our first strategic roadmap guided entirely by our subscription-first vision. Therefore, successfully meeting these long-term targets represents more than just continued execution. It serves as another powerful, undeniable validation of our unique prime model. We now have over eight years of experience with Prime subscription. And what we have clearly demonstrated is that this model is a proven enabler for sustainable long-term value creation and sets us apart from other travel players. It's clear that the model is a proven success and has a long-term growth potential. Today, we'll take you through the key points of our strong performance. This will include, firstly, EDU results highlights, second, EDU results and key achievements, third, review of our strong FY25 results in which the prime model continues to drive very strong growth, fourth, EDU's strong foundation for future success, and fifth, concluding today's presentation with EDU's investment highlights. With that, please turn to slide four, which is a summary of our performance for the first nine months of the fiscal year 2025. In FY25, our three key metrics have grown significantly. Our prime members grew by 25%, Kashibate grew by 49%, and free cash flow grew by 122%. In fact, we've beaten our 3.5 years ago self-imposed targets. And we have beaten our FY25 free cash flow target even more, exceeding it by 11% due to the strength of our prime model and the increasing maturity of prime members. Some of the key highlights for today's presentation are, firstly, let's look at the key achievements in FY25. Well, EdoMeets, it's 180 million cash cheap at the target. In fact, we delivered 180.4 million. Meets its prime numbers target was 7.25 million. We achieved 7.26 million numbers. and exceeded our FY25 free cash flow target of over $90 million. We exceeded it by 11%. As guided in the first quarter FY25, we saw better year-on-year comparatives in the second half of the fiscal year as we continued to increase our member base and the maturity of our prime members further increased. As a result of the strong free cash flow, the company generated, Edo already repurchased in FY25 80 million euros of its treasury shares. This is due to our belief that our shares are undervalued, and given we are cash generative, we expect to continue to buy more shares, taking advantage of how undervalued we think our shares are. In addition, EDU plans to reduce the capital stock by redeeming 3.5 million shares acquired not needed to fulfill the company's obligations under the existing incentive plan, of course, subject to the approval of the general shareholders meeting. The second highlight. In FY25, the strength of the prime model, growth, significant growth, and has guided additional improvements in profitability. Prime members grew 25% year-on-year, reaching 7.3 million members, with net ads at 1.4 million, which more than met our three-and-a-half-year-old self-imposed FY25 target of 7.25 million members. Also, cash margin profit for FY25 was 282 million euros. That's a 30% increase year on year. And the margin had a seven percentage point improvement reaching 39%. And in the fourth quarter of FY25, it reached 44%. And that's ahead of the guidance of 42 to 43% for the second half of fiscal year 2025. Cash EBITDA for FY25 was 180.4 million euros. That's a 49% increase year-on-year, exceeding our target with year-on-year, and cash EBITDA margins improving seven percentage points versus FY24. Most importantly, free cash flow excluding non-prime working capital more than doubled to 100 million in FY25, versus 45 million in FY24. That's a 55 million Euro improvement year on year, a remarkable increase of 123%, and that's 11% ahead of our guidance. Third highlight, the prime model continues to deliver strong growth. The growth in prime more than offset the anticipated decline in the non-prime side of the business and resulted in significant improvements in overall EDU profitability. Prime cash revenue margin for FY25 grew by 24%, following the strong growth in members and as guided, partially offset by a lower ARPU. Prime Cash Marginal Profit for FY25 grew 49%, with the margin improving by 8 percentage points year-in-year. And Prime Cash EBITDA, with strong top-line growth, grew 62%, reflecting a margin improvement of 8 percentage points. The fourth highlight is our outlook. Looking into the future, For FY26, we announced that our capital markets state three new targets. The first one, prime members, which is over 1 million new members. Second, cash even in the range of 215 to 220 million euros. And three, generation of free cash flow, excluding non-prime working capital, to over 120 million euros. Similar to the guidance given for the first quarter of FY25, we expect a softer first quarter of FY26. Prime member net ads are expected to be in the range of 190 to 210,000 and cash EBITDA in the range of about 38 to 40 million euros. And growing year-on-year comparatives in the second half of the fiscal year as the member base increases and the maturity of our prime members increases. Longer term, we have said, that Prime members will grow in excess of 10% in FY27 and FY28, which shows once again EDU has strong fundamental growth potential beyond FY25, being significantly under-penetrated in our main markets. Furthermore, the Board of Directors has approved a new share repurchase program of €20 million, This is due to the success of our prior share repurchase, which has resulted in daily trading activity and liquidity for the company shares increasing by 302% from 0.7 million euros on the 12th of November 2024 to 2.6 million euros per day on the 25th of April in 2025. That reaches an average of 2.4 million euros in 2025 on the European Composite Index. This action is supported by strong financial performance and robust free cash flow generation. The Board believes this proactive measure underscores its commitment to supporting shareholder value and reflects confidence in the company's growth prospects as the world's first and largest travel subscription company. In sum, Prime's proven model continues to drive very strong revenue and profit growth and has delivered a 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-creating opportunities ahead of us. Please turn now to slide six. Let me briefly go through some of the key achievements we've had in F525. As I said, despite unforeseen macro events, Edo achieved its ambitious objectives. Three years ago, Edo established internal ambitious targets. The 7.25 million prime members, the 180 million euros of cash EBITDA. During this period, Prime membership has achieved impressive and rapid growth, quadrupling from 2 million members to 7.26 million members with ongoing momentum. Moreover, IDO delivered sustained quarter and quarter growth in cash from 2.9 million in the second quarter of FY22, that's on the last 12 months basis, to 180.4 million euros in FY25. We're also so proud to have achieved our overall goals, demonstrating the effectiveness of our model, the attractiveness of our customer proposition, and our ability to execute effectively our strategy and plans. you could all turn to slide seven of the presentation since the capital markets day back in november of 2021 when either set its targets a number of unexpected events impacted the industry in setting our targets the industry has faced unexpected macroeconomic headwinds while 2021 saw some easing of COVID restrictions and the beginning of economic recovery, the emergence of Omicron significantly hampered this progress. During 2022 and 2023, geopolitical instability, double-digit inflation, high consumer interest rates, and significant increases in energy prices, among other factors, further jeopardized economic and market recovery. Please turn to slide eight. In fact, EDU has outperformed the sector over the past three years. Since 2021, EDU's cash EBITDA tagger of 47% has significantly outpaced the industry. This exceptional growth positions EDU as a top performer relative to its competitors. Please turn to slide nine. and EDREAM maintained targets while other travel companies lowered their guidance several times and issued profit warnings. In stark contrast, EDREAM Studio has steadfastly maintained and met its ambitious targets throughout the entire period. Now, let me pass it over to Davide Lethaga, who will take you through some of our KPIs of the PRIME model and the strong growth and significant profit improvements in FY25 results. and Edo's strong foundation for future success.

Thank you, Dana. If you could all please turn to slide 10 of the presentation, I will take you through the prime model. Edo profitability rose significantly due to strong growth in numbers of prime members in the year two of subsequent years and growth in the prime cash margin or profit margin. Cash EBITDA also increased significantly. In fiscal 25, our prime cash margin or profit margin increased to 48% from 40% in fiscal 24. That's an 8 percentage points improvement. Group cash EBITDA also improved substantially. In fiscal 25, cash EBITDA margin reached 25% versus 18% in the third quarter of fiscal 24. That's an improvement of 7 percentage points. If you please turn to slide 12, let me remind you that when looking at prime versus not 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. Gas marginal profit was up 30% over the last 12 months, and that reflects more year 2 plus numbers of prime. Also, Prime's strong growth more than offset the anticipated and planned decline in the non-Prime business as we focus on Prime. We continue to be careful and selective on marketing spend, focusing more on Prime products versus developing products and services for the non-Prime side of the business. On this basis, in the fourth quarter, we have been selective on marketing investments and concentrated our efforts on the higher margin prime side of the business, which represents today around 90% of our profits, leading to a planned greater reduction compared to previous quarters on the non-prime side of the business. The fourth quarter of fiscal 25 is down in that respect 32% compared to the same quarter of the previous year, and it's a 22% reduction over the full fiscal year, 12 months. This evolution in the non-prime side of the business contributed to a consolidated 6% increase in revenue margin and cash revenue margin in fiscal 25. As a result, Edo is fundamentally a subscription business focused on travel. Over the last 12 months, Prime delivered 71% share of group cash revenue margin, while it was 61% just a year ago. Over the last 12 months, Prime delivered 87% share of group cash marginal profit versus 76% a year ago. There is no doubt now that we are a subscription-based business in which almost 90% of our group cash marginal profit is subscription-based. And subscription is the driver of our results and our future. As a result, we should achieve evaluation of such since we have inherent characteristics of subscription, a much more stable and predictable revenue stream. Also, we now have a much larger proportion of our prime members who have renewed their subscription for a second year and third, fourth, et cetera. So the level of profitability for prime improves. If you could all please turn to slide 13 of the presentation, I'm gonna take you through the financial results in more detail. In fiscal 25, we delivered strong growth in cash EBITDA and substantial improvement in margin as the maturity of the prime numbers increases. Fiscal 25 revenue margin was 6% higher than fiscal 24 and up 8% in the quarter. Cash marginal profit and cash EBITDA improved by 30% and 49% respectively. And if we look at the evolution quarter on quarter, cash marginal profit improved by 37% and cash EBITDA by 73%. Over the past year, our subscribers have grown by 25% to 7.26 million, and our ARPU was reduced by 2.2 euros. It's now standing at just under 76, at 75.9. As guided in the first quarter of past fiscal year, we have given more discounts to our Prime members as our algorithms indicate that that is better for lifetime value. As a result of the above, we do expect in fiscal 26 that the ARPU will be in a range between 70 and 75. Cash margin or profit margin increased to 39% for fiscal 25 versus 32% in fiscal 24. That's a seven percentage points improvement. And that is an overachievement of the guidance of 42 or 43% that we gave for the second half of fiscal 25. Cash EBITDA margin in fiscal 25 also achieved very substantial improvement, and it stood at 25% versus 18% in the previous fiscal year. Cash EBITDA, 180.4 million. That's up almost 50%, 49% year-on-year. Please turn to slide 14 of the presentation. Revenue margin, excluding adjusted revenue items, improved 4% compared to the previous year and 8% in the quarter. The strong growth of primary margin, which for fiscal 25 grew by 23%, was partially offset as guided by lower output. And this strong growth in the primary margin was partly offset by that non-prime revenue margin, which has been decreased by 22% versus fiscal 24. following the switching of customers that used to be non-prime to become non-prime, and more generally due to the focus that we have on the prime side of the business. Now, if we go down the income statement and the variable cost line, those decreased by 5% in fiscal 25, despite the higher revenues, driven as the maturity of the prime members. The fixed cost increased by 500 euros, driven by higher personal costs, and to a lesser extent, higher IT costs. And as a result, adjusted dividend for fiscal 25 was 133.7. That is an increase from 87.8 million in fiscal 24. And adjusted net income stood at 51.2 million in fiscal 25. Turning now to slide 10, I'm going to take you through the cash flow statement. We closed fiscal 25 with a positive net cash from operating activities of 146.4 million. Net cash for operating activities increased by 7.5 million, mainly reflecting a working capital inflow of 15.4 million compared to an inflow of 49 million euros in the previous year, mainly driven by a decrease in the average basket value of the bookings, as well as a change in the IATA payment scheme in two of the countries in which we operate, and the aforementioned decrease in the non-prime side of the business. We have continued to invest in our business with 55.6 million euros of capex in fiscal 25, an increase of 6.8 million euros as we capitalize our software. Cash used in financing amounted to 105.6 million compared to 31 million euros from financing activities in fiscal 24. The variation is mainly related to the acquisition of treasury shares for 79.9 million euros during the 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 March, 2025, the liquidity position was strong at 222 million euros. If you could please turn to slide 17, let me briefly go through some of the key highlights from our capital markets day of four months ago and the strong foundations that we have for success at EDU. The first one is that we have successfully achieved the transformation of our business model. Today, eDreams is a subscription led company. Since fiscal 22, we have witnessed a significant expansion of our prime member base. And consequently, due to the program's strong profitability upon the renewals of those subscriptions, the cash management profit has substantially increased. These figures underscore the company's transition to a subscription-driven business model, a trend that will further enhance revenue and profitability. Please turn now to slide 17, sorry, 18. In that one, you can see that since fiscal 22, when we announced the shift to a subscription-based model, we have increased penetration while at the same time maintaining a stable LTV2CAC. This is a very important thing. We grow the base, but we keep the discipline on the returns that we require from our growth. In the next page, you have the third element to flag, which is that we have a growing cash EBITDA, but we have an even higher growth of free cash flow. As EBITDA continues to grow, we are expected to have the free cash flow growing more and outperforming cash EBITDA in 2026 and onwards. Please turn now to slide 20. Then you have the fourth element to flag. Our plans is to keep the current NPV2 cap ratio within the same range. So again, keeping the discipline on how we invest in marketing. And as a result, we will continue to expand the base according to this discipline. We are targeting 1 million new prime members in fiscal 26. After that, the company expects to sustain stronger near growth of over 10% in prime partnership. Today's ongoing expansion will be driven by a number of factors, including to expanding the current markets to further broaden the product range and launching a fully functional prime program in more markets than the 10 in which it is today operational. If you turn to the following page, we will continue to invest to further grow beyond fiscal 25. To maximize the opportunities we have to expand our business, we will invest in increasing our software development capabilities. The company is a strong employer brand, positions us well to attract top talent. We expect to add with this additional talent, the extra million members and reach 215, 220 million of cash in fiscal 26. And with this new additional software development capacity, we will also fuel the increase in the prime member base by over 10% for years fiscal 27 and fiscal 28. If you please turn to slide 22, that will show that we are a cash-generated business and we have begun to use the available resources to remunerate shareholders. If you turn to slide 23, You can see how the strong cash flow generation, as well as the increase in the EBITDA, the profitability, is enabling us to do a very significant deleveraging and opens the opportunity for bond refinancing. The optimal window for that refinancing would be normally between two years to maturity and one year to maturity. That's between virtually now and next summer. And please turn to slide 24, in which I'm going to do some closing remarks on my side. As guided, we are expecting free cash flow for fiscal 26 in excess of 120 million euros, a CAGR of 63% between fiscal 24 and fiscal 26. Whilst generating a strong free cash flow, the free cash flow yield is significantly higher than our peers. We achieve free cash flow yields of between 11% and 13%, compared to a range of 4% to 8% for different sets of comparable companies in sectors like hotels, airlines, global OTAs, or other B2C subscriptions. We believe this undervaluation presents a compelling investment opportunity when combined together with our strong fundamentals and our growth prospects. And with that, I'm going to turn now the presentation back to Dana to do some closing remarks. Thank you, David.