Berenberg & Goldman Sachs Ninth German Corporate Conference - Dr Marc Al-Hames & Markus Scheuermann 22 September 2020
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Berenberg & Goldman Sachs Ninth German Corporate Conference Dr Marc Al-Hames & Markus Scheuermann 22 September 2020
The HolidayCheck Group Online travel brands in the DACH market Core business: Growth driver: Start-up: Leading German hotel Innovative tour operator International car rental review and booking platform portals Business model: Online Business model: Dynamic Business model: Online price travel agency composition of package comparison of rental cars tours (no inventory risk) and Revenue: Commissions from hotel only offers Revenue: Commissions from sale of package tours and rental car brokerage hotels, supplemented by Revenue: Sale of package advertising revenues tours and hotel beds via USP: Successful HolidayCheck internationalization due to USP: High organic traffic scalable technology USP: Advanced technology and pricing model Berenberg & Goldman German Corporate Conference 2020 4
Our business model: High organic traffic combined with unique inventory to accelerate growth Conversion optimization and Wide range of third-party and holidaymaker-oriented sales and own inventory with competitive marketing to accelerate bookings. pricing to accelerate bookings CUSTOMERS Content Offers Traffic Booking Traffic, Users fly-wheel Bookings fly-wheel Procurement & Customers Higher traffic to push advertising revenues CRM measures, trusted Higher booking volumes to improve brand and quality content to procurement conditions push usage and traffic Berenberg & Goldman German Corporate Conference 2020 5
German-speaking holiday travel market Holiday trips in German-speaking market Package travel is the most by pre-booked component, 2019 in EUR billion important way of travelling in the 68 Active market of HolidayCheck German-speaking holiday travel market. It accounted for ~40% 27 (EUR ~27 billion) of the total holiday travel market* (EUR 68.2 billion) in 2019. 23 Package travel is the preferred form of holiday travel across all age groups. Mostly because of 10 security and budget reasons. 3 5 Total Package Hotel-only Ticket-only Modular Other Travel Tours *Holiday travel +5 days of German speaking population over the age of 14, Travel analysis 2020 FUR – Forschungsgemeinschaft Urlaub und Reisen e.V.. Berenberg & Goldman German Corporate Conference 2020 6
Online penetration in package holiday The travel market is constantly shifting online. In 2019 more holiday trips were booked online than offline. Online penetration in package holiday is still low in comparison to other ways of travel and also in comparison to other countries (e.g. UK ~ 60%) Sales channels for holiday bookings >5 days, in percent 2009 2019 Online penetration German-speaking 4 Letter & Fax 1 holiday travel market, 2019 in percent 48 Offline agency 39 Package Travel 33 26 Phone 15 Hotel-only 66 5 eMail 10 Other 70 22 Online 44 Ø44 Source: Travel analysis 2020 Forschungsgemeinschaft Urlaub und Reisen e.V ; Holiday travel +5 days of German speaking population over the age of 14; with pre-booking of at least one component; multiple answers possible. Berenberg & Goldman German Corporate Conference 2020 7
Current demand for holiday trips during COVID-19 crisis • Demand for package tours remains significantly down yoy, however demand for hotel bookings (with own travel) has recovered to levels close to those of previous years • Strong demand for destinations in DACH, subdued demand for destinations in the Mediterranean • Holidaymakers mainly book last minute • Offline travel agencies are hit harder by the crisis. Many brick-and-mortar travel agencies discontinue their business operations (TUI, Karstadt, STA, etc.). Market consolidation and further online shift expected. • Overall, it is to be expected that the clearly subdued demand will continue until a functioning vaccination comes to market. Average sales requests per day:* Offline travel agencies: 1.3 (-86% vs. PY); Online travel agencies/day: 23,891 (-73% vs. PY); *Trevotrend glassball, data based on week 34 (17.08.2020 - 23.08.2020); Berenberg & Goldman German Corporate Conference 2020 9
HolidayCheck during COVID-19 • Many trips that were booked in 2019 and Q1 Visits on holidaycheck.de, 2020 had to be cancelled or rebooked in Q2 in million (IVW) (already reflected largely in our Q1 figures) 24 22 • Recovering demand for the top 4 package 20 travel destinations will have significant impact. 18 • Despite continuous booking restraint, interest 16 in holidays trips is coming back which shows 14 in recovering traffic. Also incoming reviews of 12 holidaymakers who travelled during COVID-19 were mainly positive. 10 8 6 4 2 0 Nov.-19 Dec 19 Jan.-20 Febr.-20 Mar 20 Apr.-20 May 20 Juni-20 Juli-20 Berenberg & Goldman German Corporate Conference 2020 10
Current measures: Reduction of costs and complexity • Structural reduction of all costs (personnel and non- personnel) planned and implemented for the core brand HolidayCheck. • Full focus on the core market DACH and significant reduction of complexity: Withdrawal from the Dutch market. Zoover and WeerOnline have been sold in July. • Launch of new products to adapt to the new booking behaviour and demand of our customers. Berenberg & Goldman German Corporate Conference 2020 11
Comprehensive measures for sustainable and more cost-efficient organizational structure Personnel costs Current staff cuts lead to sustainable reduction of personnel costs: • Approx. 100 employees affected; this corresponds to approx. 30% of the DACH business • Full effect of structural savings to start in the next months, latest 2021 • Termination of short-time-work (Kurzarbeit) for remaining employees to adjust the product and capture opportunities Marketing Marketing activities still at a low level; quickly adaptable to demand situation Other expenses Structured review and streamlining of all cost positions to reduce short- term cash drain and improve overall cost position Berenberg & Goldman German Corporate Conference 2020 12
Sale of Dutch subsidiaries WeerOnline and Zoover in July To focus on the DACH region, the management sold its Dutch subsidiaries WeerOnline and Zoover Sale of MeteoVista B.V. to Infoplaza B.V.: • With effect to 31.07.2020 • Closing mid August 2020 • The purchase price corresponds approximately to the book value of the company Sale of Zoover B.V. to Vakantie.nl B.V.: • With effect to 31 July 2020 Total net cash-in of approx. EUR 14 million supports liquidity situation, full focus of team and management on DACH region and reduction of complexity Berenberg & Goldman German Corporate Conference 2020 13
HolidayCheck Flex HolidayCheck Reisen offers new package holiday product with full cancellation flexibility HolidayCheck Reisen offers customers package tours that fulfil current needs • Cancellation up to 6 days prior departure free of charge • Payment 6 days prior departure; no upfront payment required Berenberg & Goldman German Corporate Conference 2020 14
Financials 15
Financials Q2 2020 In EUR million Q2 2020 Q2 2019 Revenue 6.0 32.7 Gross margin 5.9 32.6 Marketing expenses -0.6 -16.3 Personnel expenses -8.8 -10.3 Other expenses -4.1 -6.6 EBITDA -4.0 1.3 Operating EBITDA -3.2 1.5 Depreciation -4.1 -2.6 EBIT -8.0 -1.3 Financial result -0.1 -0.1 EBT -8.2 -1.4 Consolidated net result -7.9 -1.5 EPS (in EUR) -0.14 -0.03 Berenberg & Goldman German Corporate Conference 2020 16
Financials HY1 2020 In EUR million HY1 HY1 2020 HY1 2019 2020 adjusted* Revenue 0.8 16.0 74.9 Gross margin -0.8 14.4 74.9 Marketing expenses -8.5 -13.4 -37.5 Personnel expenses -19.5 -19.5 -21.0 Other expenses -11.9 -11.9 -12.8 EBITDA -33.5 -23.7 5.3 Operating EBITDA -32.9 -23.1 5.8 Depreciation -35.3 -4.8 -5.0 EBIT -68.8 -28.5 0.3 Financial result -0.2 -0.2 -0.2 EBT -69.0 -28.7 0.2 Consolidated net result -66.8 -28.3 -0.5 EPS (in EUR) -1.16 -0.49 -0.01 . * adjustments to the previous year’s recognized revenues for travel in 2020 and directly related costs and impairments Berenberg & Goldman German Corporate Conference 2020 17
Financials 2019 Continued revenue growth pre COVID-19 In EUR million 2016 2017 2018 2019 2020 2% 24% 6% 4% 11% 11% 41.4 42.2 13% 8% 2% 7% 35.6 37.6 25% 11% 33.4 31.4 32.7 32.0 29.6 30.5 31.2 30.1 28.4 27.7 24.9 22.7 10,2* 6.0 Q1 Q2 Q3 Q4 *adjustments for previous year’s recognized revenues for travel in 2020 Berenberg & Goldman German Corporate Conference 2020 18
Liquidity and new financing options • Cash and cash equivalents at EUR 28.0 million as of 30 June 2020 (compared with EUR 27.5 million as of 31 December 2019) • This includes working capital credit instrument of around EUR 20 million • Sale of MeteoVista and Zoover resulted in a further cash inflow of EUR 14 million (not included in above mentioned cash position as of 30 June) • We received a long-term loan in Q3 of EUR 12.5 million from the Swiss government (also not included in cash position as of 30 June) • Additional long-term financing options currently being evaluated Berenberg & Goldman German Corporate Conference 2020 19
Outlook 2020 & 2021 20
Outlook 2020 & 2021 Outlook 2020 – our guess • The willingness of holidaymakers to travel will remain at a low level, especially regarding package holidays and mid-/long-haul-destinations • Short-term booking behavior of customers expected • Initial market shakeout among online and offline competitors • Constant changes with short-term notice in market (e.g., new corona hotspots or quarantine rules) will continue to add complexity to the business and drive customer behavior Outlook 2021 – our guess • A return to normal travel behavior and full hotel capacity might only be possible when a vaccine becomes available. Until then, the slow recovery might continue, bookings will happen; yet return to 2019 booking levels is not expected. Furthermore uncertainty in the market and among customers will persist. Further market concentration ahead. • Lean cost structure will make HolidayCheck better prepared for upcoming challenges, earlier profitability and to capture upcoming opportunities. Beyond • HolidayCheck had a full functioning business model pre COVID-19, that can come back to full performance when demand recovers. Berenberg & Goldman German Corporate Conference 2020 21
Outlook 2020 Guidance 2020 • Based on our planning scenarios, we expect a significant decline in gross margin (vs. EUR 141.9 MM in 2019) and a clearly negative operating EBITDA (vs. EUR 7.0 MM in 2019). • Despite further effects of COVID-19, we manage our business to safeguard liquidity and ensure continued business operations. • The impact of a much longer-lasting crisis can only be estimated to a limited extent and could trigger liquidity risks. Berenberg & Goldman German Corporate Conference 2020 22
Our long-term objectives Foster a profitable growth culture and create value for our customers and HolidayCheck • We leverage our content and our position as trusted authority to expand our industry leading position in traffic • We build-out our Tour Operator to the best in the market in order to guarantee the best Urlaub for all our users. Berenberg & Goldman German Corporate Conference 2020 23
Our vision We want to build the most Urlauber-friendly company in the world! Berenberg & Goldman German Corporate Conference 2020 24 *German term for holidaymaker, vacationer
Appendix
Financial calendar 2020* 11/09 Interim report Q3 2020 Nov 11/16 German Equity Forum 2020 (virtual conference) Nov *Provisional dates Berenberg & Goldman German Corporate Conference 2020 26
Contact Dr. Marc Al-Hames Markus Scheuermann Armin Blohmann CEO CFO Director Group Comm. & Investor Relations +49 89 357 680 911 +49 89 357 680 917 +49 89 357 680 901 marc.al-hames@holidaycheckgroup.com markus.scheuermann@holidaycheckgroup.com armin.blohmann@holidaycheckgroup.com www.holidaycheckgroup.com HolidayCheck Group @HolidayCheckGrp Berenberg & Goldman German Corporate Conference 2020 27
Disclaimer This presentation contains 'forward looking statements' regarding HolidayCheck Group AG, including opinions, estimates and projections regarding HolidayCheck Group AG’s financial position, business strategy, plans and objectives of management and future operations. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of HolidayCheck Group AG to be materially 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 or accuracy 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 information concerning 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 of new information, future events or otherwise. Berenberg & Goldman German Corporate Conference 2020 28
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