company presentation september 2018 · 2018-09-25 · corporate presentation 4 we are the most...
TRANSCRIPT
HOLIDAYCHECK GROUPCOMPANY PRESENTATION
Who we are
Drivers of growth
Financials
Outlook
Appendix
Agenda
12345
2
Who we are
3
Corporate Presentation 4
We are the most Urlauber*-friendly company in the world!Our vision
We make our Urlauber’s* experience better every day!We offer the most trustworthy platform for holidays. With us Urlaubers find the perfect holiday in a fast, easy and inspiring way and can instantly book it!
Our mission
*German term for holidaymaker, vacationer
Corporate Presentation 5
The HolidayCheck Group
Four leading portals with a strategic focus on local marketsDACH and BENELUX
We focus on secured relaxing holidays
DACH• HolidayCheck
Hotel review and booking platform
• Driveboo Car rental comparison
BENELUX• Zoover
Hotel review platform• Meteovista
Weather platform
Our eco system: a unique combination of a platform & pipeline businessThe successful combination of both platform and pipeline business is unique to HolidayCheck and provides a sustainable competitive advantage in the market
Corporate Presentation 6
Our eco system: a unique combination of a platform & pipeline business
Corporate Presentation 7
European package travel market
Corporate Presentation 8
Package travel is a multi-billion Euro market
• European package travel is a EUR 55bn market (of which DACH EUR 18.5bn)• Including related fields, the DACH market is EUR 45bn• Germany: 66% of German package travel bookings still offline• Benelux: high online penetration and high market share of tour operators
DACH EUR 45bn market segment for package and related*Market segment size and online penetration for package travel*
0%
20%
40%
60%
80%
100%
02468101214161820
TTV in € bn Online penetration rate*gross revenue 2017; own estimate based on travel industry data
18,5
3,09,0
4,8
9,0
0,6
Package holidays Short-trip, Wellness Rental homesCruise Packaged roundtrips Other
*gross revenue 2017; own estimate based on travel industry data
Drivers of growth
9
Drivers of growthNew cruise platform live
Corporate Presentation 10
• New cruise sector complements our existing portfolio very well
• Strong focus on booking your first cruise• Combines the technical advantages of the internet
with the personal touch of a travel agency• There are 54,000 cruise-ship ratings and 130,000
passenger photographs on HolidayCheck• In 2017, around two million Germans embarked on
a cruise, totalling around EUR 4 billion
Drivers of growthHelping couples find the perfect vacation
Corporate Presentation 11
• New couples trip finder: launched in February 2018• New standard for saving Urlaubers time• Choices based on combination of user generated
content and recommendations of our travel experts• Introduced Echt-Preise based on actual bookings
instead of showing “ab-Preise” (“as low as”)• Blueprint for all other parts of the HolidayCheck user
experience
Drivers of growthAnd we continuously deliver additional improvements…
Corporate Presentation 12
• New vacancy checks• Direct flight filter• Passion search• Empty offer list• Golden profile• …
Corporate Presentation 13
Investment in brand marketing in HY1, 2018Brand marketing campaign to be continued
Successful brand marketing campaign Buch Dein Ding! (Book it your way!)
• Successful brand campaign on selected TV stations, leading news portals, YouTube and outdoor advertising
• Goal: Strengthen brand awareness and draw particular attention on booking opportunity
• Campaign to be continued in HY2, 2018
• Important note: Apples-to-apples comparison of brand marketing costs only possible Q3, 2018 and beyond
Drivers of growthDelivering superior, personal customer service
Corporate Presentation 14
It’s one of our strategic pillars to connect real people with real people• We invested in people and scalability• Our service center with 150 skilled travel agents is a
sales channel, not a call center• Calls to our team result in higher average selling price vs.
online
Corporate Presentation 15
Attract the best Talents• We don‘t just hire from the best travel
companies, but the best companies anywhere
Motivate Talents• We have a system to make all our employees
shareholders of HCG; company shares are partof the salary package
Talent Investments• 2017 step change investment into headcount
in customer-facing service center, software developers and data science experts
• Going forward, no longer need to investahead of growth
Drivers of growthThe best team in the travel industry
Corporate Presentation 16
Recognized as best in class – but never satisfied
HOLIDAYCHECK
MIETWAGENCHECK
Financials
17
Corporate Presentation 18
Overview HY1 2018: strong early booking season
Market development• Central-European package travel industry grew by approx. 5-10%• Online Travel (OTA) outperformed traditional channels
Financials• HolidayCheck Group revenue up 19.0% yoy in HY1 2018• Operating EBITDA of EUR 7.8m in HY1 2018 (+212% yoy)• Pleased with top line development making it through to our bottom
line, despite re-initiated investments in brand marketing in HY1 2018• Financial guidance upgraded
Financials HY1 and Q2: invest in brand marketing
Corporate Presentation 19
In EUR million HY1 2018 HY1 2017 Change in % / EUR million
Q2 2018 Q2 2017 Change in % / EUR million
Revenue 72.8 61.2 +19% / +11.6 31.4 27.7 +13% / +3.7
Marketing expenses -34.8 -29.5 +18% / +5.3 -15.0 -14.6 +3% / +0.4
Personnel expenses -19.6 -19.4 +1% / +0.2 -9.9 -9.9 +/-0% / +/-0.0
Other expenses -13.5 -13.2 +2% / +0.3 -6.4 -6.9 -7% / -0.5
EBITDAEBITDA margin
7.29.9%
1.52.5%
+>100% / +5.7 1.23.8%
-2.7-9.7%
- / +3.9
Operating EBITDAOperating EBITDA margin
7.810.7%
2.54.1%
+>100% / +5.3 1.65.1%
-1.9-6.9%
- / +3.5
Depreciation -3.1 -3.0 +7% / +0.2 -1.6 -1.6 +/-0% / +/-.00
EBITEBIT margin
4.15.5%
-1.5-2.5%
- / +5.5 -0.4-1.3%
-4.3-15.5%
-91% / -3.9
Financial result -0.1 -0.1 +/-0% / +/-0.0 0.0 0.0 +/-0%+/-0.0
EBTEBT margin 4.0 -1.6 - / +5.6 -0.4
-1.3%-4.3
-15.5%-91% / -3.9
Consolidated net result 3.0 -1.8 -/ +4.8 -0.4 -3.7 -89% / -3.3
EPS (in EUR) 0.05 -0.03 - / +0.08 -0.01 -0.06 -89% / -0.05
Financials HY1 2018: Quarterly revenue growth 2016 - 2018
In EUR million
Corporate Presentation 20
30,1
25,0
29,6
22,6
33,4
27,732,0
28,4
41,4
31,4
Q1 Q2 Q3 Q4
2016 2017 2018
+10.9%+25.6%
+11.1%
+8.2%
+24.0%
+13.4%
HolidayCheck Group is debt free
Corporate Presentation 21
Equity ratio of 83% and net cash position of EUR 25m
41.3 52.1
53.776.3 86.1 83.2
58.7 47.9
46.323.7 13.9 16.8
12/2013 12/2014 12/2015 12/2016 12/2017 06/2018
Equity ratio vs. debt ratio 2013 – Q2 2018in percent
Equity ratio Debt ratio
100%
Corporate Presentation 22
Upgraded financial guidance
Our new guidance 2018:• 10 to 14% growth in revenues (old: 8 to 13%)• Hence op. EBITDA EUR 7.0 million to EUR 10.0 million
(old: EUR 2.5 million to 6.5 million)• Brand campaign continues• Convert a higher percentage of traffic to sales• Focus on marketing efficiency
Outlook
23
Corporate Presentation 24
Outlook 2018:Our vision & mission remain unchanged
Our vision:
We are the most Urlauber*-friendly company in the world
Our mission:
We make our Urlauber’s experience better every day!
* Urlauber [uːɐlaʊbɐ] is the German term for vacationer, holiday-maker
Corporate Presentation 25
Outlook 2018:The year of differentiation
Transforma-tion Delivery Differentia-
tion Leverage
2016 2017 2018 2019
Tech Excellence
Marketing Efficiency
Customer Experience
Team Quality
Strategic areasof development
Diversify
2020
Options for further growth within the relaxing holidays market
Corporate Presentation 26
HolidayCheck has room to grow beyond its current core market
• HolidayCheck has significant room to grow beyond its current core market
• We have made a successful first move into adjacent markets through our cruise portal launched in 2018
• Integration of an own tour operator could be considered• HolidayCheck model: “make it work, then scale it up”
Customization
Adjacent markets with similar characteristicsHorizontal expansion
Focus
Capital allocation framework & long-term ambition
Corporate Presentation 27
We continue to prudently re-invest
• Adjacent fields we fully understand, with similar characteristics
• Vertical integration to offer own product
1 Buy or build2 RoI3
• We apply the same thresholds for M&A that we apply to organic investment
• We do not seek to buy market share
• We expect investments to generate returns higher than our cost of capital after five years
• Ability to leverage our technology and expertise
HolidayCheck is a growth company, and we continue to re-invest into growth opportunities.Prudent capital allocation policy and intention to maintain a healthy balance sheet.
Our long-term ambition: A sustainable double-digit revenue growth and an operating EBITDA margin of 15% (max.)
Appendix
28
Our unique DNA allows us to focus on local unserved customer needs: trust & convenience
Corporate Presentation 29 *German term for holidaymaker, vacationer
• Today booking a package holiday online is still way too complex
• There is a lack of convenience as well as and a lack of trust into online players.
• 2/3 of all vacation packages in DACH are booked offline
• We aim to change that!
• Both HolidayCheck and Zoover were founded as hotel review portals
• Both are local champions in their market
• Therefore it’s in our DNA to create transparency first, and connect Urlaubers* with Urlaubers in order to find the perfect holiday
• Therefore we are always on the side of the Urlaubers
Our focus on secured relaxing holidays allows us to deliver to specific local customer needs
Corporate Presentation 30 *German term for holidaymaker, vacationer
• Therefore we focus on secured relaxing holidays (warm water short-haul)
• Therefore we focus on our customers from DACH, Benelux & Poland
• Therefore our target group is customers who wish to know what to expect on their holiday
• We have a focus on predictable travel e.g. Package travel
Corporate Presentation 31
Review of 2017 Focus Topics:Delivered on all key milestones
• Improve product and data experience• e.g. Passion search, new vacancy checks,
direct flight filter…
• Improve quality of data & content• Golden profile• Passion search
• Strengthen brand awareness• Successful brand marketing campaign
• Scale service center
• New products• New cruise platform• New couples trip finder
Financials 2017: Invest in brand marketing and new hires
Corporate Presentation 32
In EUR million 2017 2016 Change in% / EUR million
Revenue 121.6 107.3 +13% / +14.3
Marketing expenses -60.7 -54.0 +12% / +6.7
Personnel expenses -38.0 -32.4 +17% / +5.6
EBITDAEBITDA margin
0.20.2%
2.82.6%
-2.6
Operating EBITDAOperating EBITDA margin
1.61.3%
2.72.5%
-41% / -1.1
Depreciation -5.9 -5.8 +2% / +0.1
EBITEBIT margin
-5.7-4.7%
-3.0-2.8%
+90% / -2.7
Financial result -0.2 0.2 -0.4
EBTEBT margin
-5.9-4.9%
-2.8-0.7%
>100% / -3.1
Consolidated net result of continued operations -6.3 -2.5 >100% / -3.8
Consolidated net result -5.9 -2.9 >100% / -3.0
EPS of continued operations (in EUR) -0.11 -0.04 -0.07
EPS (in EUR) -0.10 -0.05 -0.05
33
Share data
Segment Prime Standard
ISIN DE0005495329
Security ID number 549532
Symbol HOC
Type of stock No-par-value bearer shares
Current share capital EUR 58,313,628 subdivided into 58,313,628 shares
Treasury shares; 2,20%
Free float; 40,10%
Burda Digital; 57,00%
Management; 0,70%
Corporate Presentation
Financial calendar 2018*
Corporate Presentation 34
OctOct
10/10 Roadshow Amsterdam + Brussels10/15 Roadshow London10/24 Roadshow Zurich
NovNov11/08 Interim statement Q1-3 2018
NovNov11/26 German Equity Forum – Frankfurt, Germany
*Provisional dates
www.holidaycheckgroup.com HolidayCheck Group @HolidayCheckGrp
Contact
Georg HesseCEO
+49 89 357 680 [email protected]
35
Nate GlissmeyerCPO/CTO
+49 89 357 680 [email protected]
Armin BlohmannDirector Group Comm. & Investor Relations
+49 89 357 680 [email protected]
Corporate Presentation
Markus ScheuermannCFO
+49 89 357 680 [email protected]
Disclaimer
36
This presentation contains 'forward looking statements' regarding HolidayCheck Group AG, including opinions, estimates and projections regarding HolidayCheckGroup AG’s financial position, business strategy, plans and objectives of management and future operations. Such forward looking statements involve known andunknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of HolidayCheck Group AG to bematerially different from future results, performance or achievements expressed or implied by such forward looking statements.These forward looking statements speak only as of the date of this presentation and are based on numerous assumptions which may or may not prove to be correct.No representation or warranty, express or implied, is made by HolidayCheck Group AG with respect to the fairness, completeness, correctness, reasonableness oraccuracy of any information and opinions contained herein.The information in this presentation is subject to change without notice, it may be incomplete or condensed, and it may not contain all material informationconcerning HolidayCheck Group AG.HolidayCheck Group undertakes no obligation to publicly update or revise any forward looking statements or other information stated herein, whether as a result ofnew information, future events or otherwise.
Corporate Presentation