Final Results 2018 - holidaycheckgroup.com · Final Results 2018 12 • We invested in people and scalability. 20 percent increase in service center personnel since 2017 and two new

Final Results 2018Georg Hesse, Nate Glissmeyer & Markus Scheuermann

27 March 2019

Overview FY 2018

Financials 2018

Investment areas 2018

Outlook 2019

Appendix

Agenda

1

2

3

4

5

2

1. Overview FY 2018

3

1. Overview FY 2018We delivered on all key milestones

Final Results 2018 4

New growth processsuccessfullyimplemented

Invested in superior, personal customerservice

220,000 sharesissued to employees

Improved userexperience, especially on booking platform

Cruise Platform & Couple‘s Search launched

Set up own Tour Operator

Data protection regulation& travel package directivesuccessfully implemented

Aided brandawareness of HolidayCheck improved

People Product Brand

Exceeded revenueguidance

Exceeded op. EBITDA guidance

Positive free cash flow

Financials


1. Overview FY 2018: Strong growth, especially in HY1

Market segment development

• Central-European package travel industry grew approx. by 2 to 5%

• Online Travel (OTA) outperformed traditional channels

Financials

• HolidayCheck Group revenue up 14.2% in FY 2018, strongly outperforming initial revenue guidance of 8 to 13% growth

• Operating EBITDA of EUR 10.7 million in FY 2018, stronglyoutperforming initial guidance of EUR 2.5 to 6.5 million

• Revenue growth of 7% in Q4 2018 despite strong 2017 comparable

• Topline growth continues to increase scale effects

• Free cash flow of more than EUR 7 million

• Dividend proposal of EUR 0.04 per share

2. Financials 2018

6

2. Financials 2018: Invest in brand marketing and product


In EUR million 2018 2017 Change in% / EUR million

Q4 2018 Q4 2017 Change in% / EUR million

Revenue 138.9 121.6 +14% / +17.3 30.5 28.4 +7% / +2.1

Marketing expenses -67.0 -60.7 +10% / -6.3 -14.0 -12.5 +12% / -1.5

Personnel expenses -39.1 -38.0 +3% / -1.1 -9.9 -9.6 +3% / -0.3

Other expenses -27.4 -27.4 +/-0.0 -7.4 -7.2 +3% / -0.2

EBITDAEBITDA margin

10.07.2%

0.20.2%

>100% / +9.8 0.20.7%

0.31.1%

-33% / -0.1

Operating EBITDAOperating EBITDA margin

10.77.7%

1.61.3%

>100% / +9.1 0.30.9%

0.31.1%

+/-0.0

Depreciation -7.0 -5.9 +19% / -1.1 -2.2 -1.7 +29% / -0.5

EBITEBIT margin

3.02.1%

-5.7-4.7%

>100% / +8.7 -2.0-6.4%

-1.2-4.2%

+67% / -0.8

Financial result -0.2 -0.2 +/-0.0 0.0 0.0 +/-0.0

EBTEBT margin

2.82.0%

-5.9-4.9%

>100% / +8.7 -2.0-6.6%

-1.3-4.6%

-54% / -0.7

Consolidated net result of continued operations 1.9 -6.3 >100% / +8.2 -1.5 -1.4 +7% / -0.1

Consolidated net result 1.9 -5.9 >100% / +7.9 -1.5 -1.4 +7% / -0.1

EPS of continued operations (in EUR) 0.03 -0.11 +0.14 -0.03 -0.02 -0.01

EPS (in EUR) 0.03 -0.10 +0.13 -0.03 -0.02 -0.01

2. Financials 2018: Quarterly revenue growth 2016 - 2018

In MEUR


Continuous topline growth over the last 2 years; Q4/17 and Q1/18 with very strong growth, thus high benchmark for subsequent growth in Q4/2018 and in the coming Q1 period

29.632.0

Q2

30.1

Q1 Q3

27.7

Q4

35.633.4

24.9

30.531.4

22.7

28.4

41.4

11%

24%

11%

13% 8%

11%

25%7%

2016 20182017

3. Investment areas 2018

9

3. Investment areas 2018: Create a culture where the best excel


• Company values are the basisfor an attractive companyculture

• Leadership essentials ensureexcellence in management

• Elaborate recruiting processfor optimum employee fit

• Growth Management processfor ideal development oftalent

3. Investment areas 2018: Become the best team in the industry


• We don‘t just hire from the travelindustry, we hire the best talentfrom all industries.

• 136 new employees entered the company since 2017 from companies like Amazon, McKinsey & Company, eBay, Rewe Group, Sapient Razorfish orLimango….

3. Investment areas 2018: Invested in superior, personal customer service


• We invested in people and scalability. 20 percent increase in service center personnel since 2017 and two new service providers.

• Our service center is both a relevant sales channel, as well as a support center

• Calls to our team result in higher average selling price vs. online

• Implemented new OTA Chat function, with very high-customer satisfaction rate (>94%)

It’s one of our strategic pillars to connect real people with real people


3. Investment areas 2018: Continuous product improvement

Numerous product optimizations lead to a significant improvement of conversion rates

• Reduced „empty Listings“ - providingalternative offers

• Made finding the right flight significantly easier

• Launch of Total Price Display

• Possibility to book multiple rooms and extended room information

3. Investment areas 2018: Defining Future Urlauber Experience


• New forward-thinking approaches like

• New user flow

• Passion search

• Use of latest technologies like artificialintelligence to make use of the enormousamount of valuable data withinHolidayCheck

• Enlarge valuable content for Urlaubers byacquiring assets of beach-inspector.com.


3. Investment areas 2018: Successful brand marketing campaign

Brand campaign was displayed on selected TV stations and Amazon Fire TV, leading news portals, YouTube and digital out of home.

Goal: Strengthen brand awareness and draw particular attention to booking opportunity

Results: • Strong rise in aided brand awareness• Positive growth in Google Brand Search above industry

level

May 2017 Jan 2019

Aided brand awareness HolidayCheck in %

55

67

3. Investment areas 2018: Continuous increase of customer satisfaction


• High customer satisfaction: >50% of our customers rate HolidayCheck with 5 of 5 points.

• Increased our user feedback about website quality by 7%.

HolidayCheck asks every visitor and caller, „Did we accomplish what you wanted?“

4. Outlook 2019

17


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

4. Outlook 2019:Growth options within the relaxing holidays market


Urlauber-friendliness

Tour Operator

Community Expert Advice Artificial Intelligence

ShortTrips

PackageHolidays

CruisePackagedRound-

trips

HotelOnly

RentalHomes

Based on expertise in our core segment, further market segments can be tackled in the mid- to long-term


4. Outlook 2019+Continue profitable growth of core business and investments in long-term growth to deliver on our vision

Investments in long-term growth:

• Set Long Term Seeds

Establishing own Tour Operator to improve inventory.

HC Touristk GmbH was founded on 8th December 2018

• Invest in the best team

HR initiatives resulted in culture that attracts talent.

Possibility of hiring highly skilled developers in 2019

• Invest in product to drive loyalty

Continue to invest in product development to improve

Urlauber-experience

Deliver on our vision


4. Outlook 2019Our guidance

Our guidance 2019:

• 7 to 12 % growth in revenues (net revenues)

• Hence op. EBITDA EUR 8.5 million to EUR 13.5 million, thereof EUR 2.5 million positive IFRS 16 impact

• Invest in future growth: further improvements in package holidays, building our own tour operator, expansion of cruise platform, improve customer loyalty

• Brand campaign continues

• Continuous invest in people

• Convert a higher percentage of traffic to sales

• So far weak industry development in Q1

Our long-term ambition:

• Sustainable double-digit growth

• Operating EBITDA margin of 15% (max.)

4. Outlook 2019: Extension of contracts with Georg Hesse and Nate Glissmeyer


CEO Georg Hesse

• Extension of contractuntil 30 June 2023

CPO/CTO Nate Glissmeyer

• Extension of contractuntil 31 December 2022

Thank you for yourattention!


Appendix

Our eco system: a unique combination of a platform & pipelinebusiness


European package travel market segment


Package travel is a multi-billion Euro market with relatively low online penetration

• 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%

0

5

10

15

20

TTV in € bn Online penetration rate in %*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 homes

Cruise Packaged roundtrips Other*gross revenue 2017; own estimate based on travel industry data

Financial calendar 2019*


MayMay05/08 Interim statement Q1 2019

JunJun06/04 Annual General Meeting 2019 – Munich, Germany

AugAug08/08 Interim report HY1 2019

NovNov11/08 Interim report Q1-3 2019

*Provisional dates

www.holidaycheckgroup.com HolidayCheck Group @HolidayCheckGrp

Contact

Georg Hesse

CEO

+49 89 357 680 911

[email protected]

28

Nate Glissmeyer

CPO/CTO

+49 89 357 680 916

[email protected]

Armin Blohmann

Director Group Comm. & Investor Relations

+49 89 357 680 901

[email protected]

Final Results 2018

Markus Scheuermann

CFO

+49 89 357 680 917

[email protected]

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.

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Final Results 2018 - holidaycheckgroup.com · Final Results 2018 12 • We invested in people and scalability. 20 percent increase in service center personnel since 2017 and two new