Company Presentation September 2018 · 2018-09-25 · Corporate Presentation 4 We are the most...

HOLIDAYCHECK GROUPCOMPANY PRESENTATION

Who we are

Drivers of growth

Financials

Outlook

Appendix

Agenda

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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


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


Our eco system: a unique combination of a platform & pipeline business


European package travel market


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

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Drivers of growthNew cruise platform live


• 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


• 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…


• New vacancy checks• Direct flight filter• Passion search• Empty offer list• Golden profile• …


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


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


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


Recognized as best in class – but never satisfied

HOLIDAYCHECK

MIETWAGENCHECK

Financials

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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


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


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


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%


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

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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


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


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


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

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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


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


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

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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*


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]

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Nate GlissmeyerCPO/CTO


Armin BlohmannDirector Group Comm. & Investor Relations



Markus ScheuermannCFO


Disclaimer

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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.


Company Presentation September 2018 · 2018-09-25 · Corporate Presentation 4 We are the most...

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