berenberg & goldman sachs ninth german corporate conference€¦ · german-speaking holiday...

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

Berenberg & Goldman German Corporate Conference 2020 4

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


German-speaking holiday travel market


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


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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39

15

10

44

Letter & Fax

Offline agency

Phone

2019

eMail

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


• 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


• 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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10

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14

16

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22

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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)


• 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


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


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


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


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


.* 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


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


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.


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.


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*


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 [email protected]

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Armin BlohmannDirector Group Comm. & Investor Relations


Berenberg & Goldman German Corporate Conference 2020

Markus ScheuermannCFO


Disclaimer


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.

berenberg & goldman sachs ninth german corporate conference€¦ · german-speaking holiday...

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