eDreams ODIGEO S.A.

Good morning, everyone, and thank you all for joining us today for our first quarter fiscal year 2026 results presentation for the three months ending 30th of June, 2025. I'm David Alarod, the Director of Investment Relations at ITU Solillo. As always, you can find the results of the leaders, including the presentation and our results report, on the Investment 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, David. And good morning, everyone. Thank you for joining us. Today, I'd like to walk you through the key highlights from our Q1 results. Last year, eDreams of Yo-Yo delivered an exceptional FY25, not only achieving, but actually surpassing its ambitious 3.5-year targets. Building on the strategy from our January 2025 Capital Markets Day, we have launched tests into new markets, and are testing innovative new products, for example, monthly subscription fees for a subset of our customers. Our momentum has carried us into the first quarter of the financial year 26, and we're proud to report that we're again met in the first quarter of this financial year all our targets and are on a clear path to achieving our goals of prime numbers and cash evictions for the full year. Today we'll take you through the key points of our strong performance. This will include, first, EGO results highlights. Second, that the private subscription model is the engine of growth and continues to drive excellent performance. And we'll review our strong Q1 FY26 results as a result. three, we'll conclude today's presentation with some closing remarks about our attractive investment highlights. You now please turn to slide four, which is a summary of our performance for Q1 fiscal year 2026. Our prime business is financially strong and our overall profitability continues to improve and delivers outstanding margins. Building on the strategy from our January 2025 Capital Markets Day, this momentum has carried through the first quarter of FY26. I'm proud to report that we've met all of our targets and are on a clear path to achieving our goals as prime members and cash EBITDA for the full year. I'd like to now walk you through the key highlights from today's presentation. First, performance highlights. Prime subscription model continues to be the engine for growth. Our prime subscription model remains the core driver of our success. We've grown our membership to 7.5 million members, adding over 1.2 million new members in the past year alone, and added 205,000 in the first quarter, which is at the high end of our guidance, which was 190,000 to 210,000. Subscriber growth is translating directly to our bottom line. Cash EBITDA increased by 8% to $39 million, hitting our target. The revenue from Prime members is now very significant. 72% of our cash revenue margin it accounts for, and that's a 5 percentage point increase in the quarter year on year. Our Prime business has a robust model, is delivering growing profitability and achieving outstanding margins. We saw a three-point increase in our cash EBITDA margin in the quarter year-on-year, and this was driven by the increasing maturity of our time numbers, which leads to improved profitability and margins. The free cash flow excluding non-prime working capital adjusted for playoffs stood at 11.4 million euros, and that's from 20.4 million euros in the first quarter of FY25. The reduction is due to an increase in taxes paid during the quarter, which increased mainly due to higher profits and a change in Spanish regulation on advanced tax payments, as well as an Italian tax litigation. Other highlights from the quarter include We report a net income of 13.6 million euros. That's a major improvement from a loss in the previous year. However, our adjusted net income was even better at 23.6 million euros, which we believe is a more reflective measure of our business's performance. Second, we covered the focus on shareholder value. I'd like to take a moment to discuss our recent actions related to capital allocation and shareholder value. We're committed to not only growing the business, but also ensuring that our shareholders benefit directly from our success. So in terms of capital allocation and liquidity, I want to highlight a couple of things. First, we are excited to announce that as of last Friday, we have already repurchased 80% of the 20 million euro program we announced just last May. Now, this has contributed to a significant increase in our average daily trading volume, which now stands at 2.5 million euros in the European Composite Index. Given the success of this program and our strong financial position, Our board of directors approved the new additional share purchase program of another 20 million. The start date of such new program will be announced upon expiration of the current share purchase program. This is a clear sign of our confidence in the company's value. Second, we've made remarkable progress in improving the liquidity of our equity. During 2025, our 10 day Rolling average liquidity in the European Composite Index increased by a staggering 492%. Our average daily trading volume in 2025 is 2.5 million euros per day. And in August, we reached 3.9 million euros average daily trading volume. This is a dramatic improvement that makes our stock far more accessible and attractive to investors. In terms of remuneration to shareholders, at our annual general meeting on the 9th of July, our shareholders unanimously approved a multi-stage capital reduction plan. The first stage involved the redemption of nearly 3 million shares, Those are shares that we have previously acquired through our buyback program. These actions demonstrate our strong financial position and our proactive approach to managing capital, improving liquidity, and providing tangible returns to our shareholders. Third, a positive outlook. Looking ahead, our outlook is very positive. For the full year, we project to add 1 million new prime numbers and generate cash in the range of 215 to 220 million. We're also confident in our ability to generate between 103 and 108 million in positive free cash flow, including non-prime working capital. We have revised the guidance to include the changes in taxes mentioned above, and this is partially compensated by interest savings from the refinancing year. Our long-term growth fundamentals are strong, and we believe we are well-positioned to continue our momentum into fiscal years 2027 and 2020, whereas we expect high numbers to grow in excess of 10%. ETO is significantly under-penetrated in its main markets, excepting new markets and products online, and has strong fundamentals as well. In sum, prior to model continues to drive very strong revenue and profit growth. And simultaneously has delivered a significant uplift in profit margins. We believe we've got the right model, the right people, and the right structure to seize and deliver on the exciting shareholder value creating opportunities ahead of us. Now that we've passed it over to David, we'll take you through some of the KPIs of our prime model and the strong growth and significant profit improvements in the first quarter of the financial year of 526.

Thank you, Nathan. If you could all please turn to slide 6 of the presentation, I will take you through the prime model. This slide clearly and visually demonstrates the growth and financial strength of our prime business and its impact on our overall profitability. Our prime business as a robust model is delivering growing profitability and achieving outstanding margins. On the left, you can see how our cash margin or profit margin for prime has consistently increased over the last five quarters. Our cash margin or profit margin for prime started at 42% in the first quarter of fiscal 25 and has now reached 49% in the first quarter of fiscal 26. This represents an impressive 7 percentage point increase over the last 12 months. This trend shows that as our Prime members become more established and engaged with our services, the profitability of each transaction improves significantly. This strong performance for Prime has a direct and positive effect on our company's overall profitability, as shown on the cash with a margin on the right-hand side. Our cash with a margin has also improved consistently, mirroring the success of our Prime business. Cash with a margin has increased from 19% in the first quarter of 25% to 26% in the first quarter of 26%, also a 7% point improvement over the last year. This correlation demonstrates clearly that the maturity of our prime membership base is a direct driver of our improved overall markets. In conclusion, our prime business is not just growing, but it is also becoming increasingly profitable. improved efficiency and profitability from our prime lenders are directly contributing to the significant growth we see in our company's overall cash dividend margin. If you please turn to slide 7, this slide illustrates our strategic shift to a subscription-based model and highlights how our strong prime growth is successfully offsetting planned decline in the traditional non-subscription side of our business. This trend shows that we are successfully shifting our business model, and that Prime is without doubt now the dominant revenue source. Today, Prime accounts for 72% of our local cash revenue margin, and that's a significant jump from 63% last year. The shift to Prime is not just about revenue, it's also about profitability, as shown on the right. Our total last four months cash margin of profit increased by a notable 27%, from 225 million to 287 million euros over the last 12 months. This is a direct result of the high profitability of our prime members as their maturity increases. While our non-prime marginal profit declined, the prime profit surged, giving a substantial improvement in our overall profitability. Consequently, prime now accounts for 87% of our total cash marginal profit, proving that our subscription model is not only growing our top line, but also radically improving our bottom line too. Our strategy is working. The strong and profitable growth of our prime business is more than compensating for the anticipated decline in our non-subscription business, proving our model is sustainable, effective, and set up for further growth. If you grow, please turn to slide eight of the presentation. I will take you through the financial results in more detail. In the first quarter of fiscal 26, the prime model continued to show that it is the engine of our growth and we saw significant improvements in profitability driven primarily by the increasing maturity of our primary base. Looking at prime's impact on profitability and the drivers behind that growth, cash marginal profit, which is a key measure of profitability, grew by 8%, reaching 65.1 million euros. This shows that our business is not They're growing, but each transaction is becoming more profitable. The improvement is due to the maturity of our primary base. As members stay with us longer, the profitability grows, which is evident in the 10% increase in cash marginal profit per prime and its margin increasing by 4 percentage points over the past year. This is having a positive ripple effect on our entire business, as our overall cash EBITDA margin improves by 3 percentage points. from 21% in the first quarter of 2025 to 24% in the first quarter of 2026. Cash EBITDA for the quarter reached 39 million euros within our target range of 38 to 40 million, marking an 8% year-on-year increase. Looking at revenue performance, in the first quarter of fiscal 2026, we have observed a few key changes in our revenue market. While our overall revenue margin increased by 8% compared to the same period last year, our cash revenue margin saw a 6% decrease. This shift is primarily due to a 23% growth in prime revenue margin, driven by a 20% increase in prime members, but this growth has largely been offset by a 20% flat reduction in the non-prime revenue margin. Cash revenue margin for the prime segment remain in line with the first quarter of the previous fiscal year. While member growth was a positive factor, it was offset by a test of monthly subscription fees for a subset of our customers. As mentioned in our Capital Markets Day in January, we're very focused on consumer feedback on the overall proposition, and we'll continue to explore and test new propositions over the coming years, As a result of research we have done, some customers tell us they prefer monthly subscriptions, which in turn may lead to higher engagement and higher customer satisfaction. We are testing this to see if it can be attractive to us economically in the longer term. In the meantime, it has an impact on deferred revenue while we assess what is best for the business long term. Let me explain briefly. or the portions of our traffic where we test the monthly subscription, we have the negative economic effect of cashing in the subscription fee gradually, as opposed to the yearly fee in advance. This is the reason for the negative change in deferred revenue over the first quarter. In summary, the maturity and retention of our prime members are the most significant drivers of our profitability, leading to strong and tangible improvements in our financial performance. Please turn to slide 9 of the presentation. Revenue margin, excluding adjusted revenue items, increased by 8% versus the first quarter of fiscal 25, to €172.6 million. The increase was achieved through growth of 23% in revenue margin for prime, resulting from expansion of our front-end base. The growth in revenue per prime, as anticipated, was partly offset by the planned reduction in non-prime business, and more generally to the focus on the prime side of the business. Variable costs decreased by 14%, despite revenue margin being 8% above the first quarter of the previous year, and the increase in maturity of prime members reduces acquisition costs. Fixed costs increased by 2.1 million euros, mainly driven by higher personal costs associated with an increase in the number of employees. As a result, adjusted EBITDA more than doubled to 49.3 million euros, that's 39 million including the full contribution of prime, from 22.6 in the first quarter of 2015. We reported a net income gain of 13.6 million euros, That's a major improvement from a loss of 1.2 million in the previous year. Moreover, our adjusted net income was even more impressive, standing at 23.6 million euros in the first quarter of 26, and this is a better measure over businesses' health. Turning now to slide 10, I will take you through the cash flow statement. In the first quarter of fiscal 26, we end with positive net cash from operating activities of 23.9 million euros following the successful expansion of the prime member base, which resulted in higher adjusted EBITDA. In the first quarter of fiscal 26, we had a working capital outflow of 15.3 million euros compared to an inflow of 6.8 million in the same period of the previous year, impacted by a lower average basket size and the decrease in prime deferred revenue due to the test of monthly subscription fees, partially offset by an improved hotel working capital. Income tax paid increased from 100,000 euros to 11.6 million. There are three main reasons for this increase. Firstly, we have started to generate positive profit before tax, which generates a need to pay more taxes. Secondly, the Spanish regulation has limited to 50% the amount of in-year losses of legal entities within a tax group and will reimburse in cash the remaining 50% over a 10-year period. And thirdly, in order to appeal in a taxification in Italy, we have paid 2 million euros in a tax. We have invested 15.5 million euros in the first quarter of fiscal 26, an increase of 0.8 million as we capitalize our software. Cash used in financing amounted to 33 million euros compared to 6.2 million euros from financing activities in the fiscal quarter of fiscal 25. The variation of 26.8 million in financing activities is mostly due to the impact of a recent refinancing. At the end of June, we refinanced our 2027 notes, expanding the maturity by three years, and lowering the coupon from the previous 5.5% to 4.875%. This is the lowest coupon of any Euro issuer in a credit rating of B-plus in the last four years. Additionally, we refinanced a supersedial reward and credit facility, increasing the size from €180 million to €185 million, and initiated dialogue with additional relevant banks in Europe, which may increase the size by another 20. Due to the refinancing, we show in our cash flow a number of one-off effects. These are detailed in slide 22 in the appendix. We paid 5.2 million euros for the early redemption of the 2027 notes. We paid in aggregate 6.5 million euros in fees for the refinancing. Please be aware that there are another 5 million euros in fees pending to be paid in future quarters. And we advanced payment of the interest of the 2027 notes. of 9.2 million euros, which we would have normally paid in the second quarter of the year. During this first quarter, we also invested 10.4 million in February purchases, which is more than double what we invested in the same period of last year. I will now turn the presentation back to Dana to do some closing remarks.