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Berenberg & Goldman Sachs Ninth German Corporate Conference
Dr Marc Al-Hames & Markus Scheuermann22 September 2020
Who we are
Financials
Current situation
Outlook
Agenda
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Who we are
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The HolidayCheck Group
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Core business:Leading German hotel review and booking platform
Business model: Online travel agency
Revenue: Commissions from sale of package tours and hotels, supplemented by advertising revenues
USP: High organic traffic
Growth driver: Innovative tour operator
Business model: Dynamic composition of packagetours (no inventory risk) and hotel only offers
Revenue: Sale of packagetours and hotel beds via HolidayCheck
USP: Advanced technologyand pricing model
Start-up: International car rentalportals
Business model: Online pricecomparison of rental cars
Revenue: Commissions from rental car brokerage
USP: Successfulinternationalization due toscalable technology
Online travel brands in the DACH market
Traffic fly-wheel
Bookingfly-wheel
Wide range of third-party and own inventory with competitivepricing to accelerate bookings
Our business model: High organic traffic combined withunique inventory to accelerate growth
Traffic, Users & Customers ProcurementBookings
Higher booking volumes to improveprocurement conditions
CRM measures, trustedbrand and quality content topush usage and traffic
Content Offers
Conversion optimization and holidaymaker-oriented sales and marketing to accelerate bookings.
Higher traffic to push advertising revenues
CUSTOMERS
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German-speaking holiday travel market
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Package travel is the mostimportant way of travelling in theGerman-speaking holiday travelmarket. It accounted for ~40% (EUR ~27 billion) of the total holiday travel market* (EUR 68.2 billion) in 2019.
Package travel is the preferredform of holiday travel across all age groups. Mostly because ofsecurity and budget reasons.
*Holiday travel +5 days of German speaking population over the age of 14, Travel analysis 2020 FUR – Forschungsgemeinschaft Urlaub und Reisen e.V..
68
5
27
23
10
Modular Tours
Total Package Travel
3
Hotel-only Ticket-only Other
Holiday trips in German-speaking marketby pre-booked component, 2019 in EUR billion
Active market of HolidayCheck
Online penetration in package holiday
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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%)
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.
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15
10
44
Letter & Fax
Offline agency
Phone
2019
Online
4
48
26
5
22
2009Sales channels for holiday bookings >5 days, in percent
33
66
70
Package Travel
Hotel-only
Other
Ø44
Online penetration German-speakingholiday travel market, 2019 in percent
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Current situation
Berenberg & Goldman German Corporate Conference 2020
Average sales requests per day:* Offline travel agencies: 1.3 (-86% vs. PY);
Online travel agencies/day: 23,891 (-73% vs. PY);
Current demand for holiday trips during COVID-19 crisis
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• 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.
*Trevotrend glassball, data based on week 34 (17.08.2020 - 23.08.2020);
HolidayCheck during COVID-19
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• Many trips that were booked in 2019 and Q1 2020 had to be cancelled or rebooked in Q2 (already reflected largely in our Q1 figures)
• Recovering demand for the top 4 package travel destinations will have significant impact.
• Despite continuous booking restraint, interest in holidays trips is coming back which shows in recovering traffic. Also incoming reviews of holidaymakers who travelled during COVID-19 were mainly positive.
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Mar 20Dec 19Nov.-19 Jan.-20 Febr.-20 Apr.-20 May 20 Juni-20 Juli-20
Visits on holidaycheck.de, in million (IVW)
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• Structural reduction of all costs (personnel and non-personnel) planned and implemented for the corebrand HolidayCheck.
• Full focus on the core market DACH and significantreduction of complexity: Withdrawal from the Dutchmarket. Zoover and WeerOnline have been sold in July.
• Launch of new products to adapt to the new bookingbehaviour and demand of our customers.
Current measures: Reduction of costs and complexity
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Personnel costsCurrent 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
MarketingMarketing activities still at a low level; quickly adaptable to demand situation
Other expensesStructured review and streamlining of all cost positions to reduce short-term cash drain and improve overall cost position
Comprehensive measures for sustainable andmore cost-efficient organizational structure
Sale of Dutch subsidiaries WeerOnline and Zoover in July
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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
To focus on the DACH region, the management sold its Dutch subsidiaries WeerOnline and Zoover
HolidayCheck Flex
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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
Financials
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Financials Q2 2020
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In EUR million Q2 2020 Q2 2019
Revenue 6.0 32.7Gross margin 5.9 32.6Marketing expenses -0.6 -16.3Personnel expenses -8.8 -10.3Other expenses -4.1 -6.6EBITDA -4.0 1.3Operating EBITDA -3.2 1.5Depreciation -4.1 -2.6EBIT -8.0 -1.3Financial result -0.1 -0.1EBT -8.2 -1.4Consolidated net result -7.9 -1.5
EPS (in EUR) -0.14 -0.03
Financials HY1 2020
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.* adjustments to the previous year’s recognized revenues for travel in 2020 and directly related costs and impairments
In EUR million HY1 2020
HY1 2020 adjusted*
HY1 2019
Revenue 0.8 16.0 74.9Gross margin -0.8 14.4 74.9Marketing expenses -8.5 -13.4 -37.5Personnel expenses -19.5 -19.5 -21.0Other expenses -11.9 -11.9 -12.8EBITDA -33.5 -23.7 5.3Operating EBITDA -32.9 -23.1 5.8Depreciation -35.3 -4.8 -5.0EBIT -68.8 -28.5 0.3Financial result -0.2 -0.2 -0.2EBT -69.0 -28.7 0.2Consolidated net result -66.8 -28.3 -0.5EPS (in EUR) -1.16 -0.49 -0.01
42.2
32.7
37.6
31.2
10,2*
6.0
Financials 2019
In EUR million
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Continued revenue growth pre COVID-19
29.632.0
Q2
30.1
Q1 Q3
27.7
Q4
35.633.4
24.9
30.531.4
22.7
28.4
41.411%
2016 20182017 2019
24% 2%
11%
13% 8%11%
25%7%
4%
6%
2%
2020
*adjustments for previous year’s recognized revenues for travel in 2020
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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
Outlook 2020 & 2021
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Outlook 2020 & 2021Outlook 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.
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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.
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Our long-term objectivesFoster a profitable growth culture and create value for ourcustomers 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.
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We want to build the most Urlauber-friendly company in the world!Our vision
*German term for holidaymaker, vacationerBerenberg & Goldman German Corporate Conference 2020
Appendix
Financial calendar 2020*
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NovNov11/09 Interim report Q3 2020
NovNov11/16 German Equity Forum 2020 (virtual conference)
*Provisional dates
www.holidaycheckgroup.com HolidayCheck Group @HolidayCheckGrp
Contact
Dr. Marc Al-HamesCEO
+49 89 357 680 911marc.al-hames@holidaycheckgroup.com
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Armin BlohmannDirector Group Comm. & Investor Relations
+49 89 357 680 901armin.blohmann@holidaycheckgroup.com
Berenberg & Goldman German Corporate Conference 2020
Markus ScheuermannCFO
+49 89 357 680 917markus.scheuermann@holidaycheckgroup.com
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 becorrect.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 resultof new information, future events or otherwise.
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