German Equity Forum 2020 - Dr Marc Al-Hames (CEO) & Markus Scheuermann (CFO) 16 November 2020 - HolidayCheck Group AG
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German Equity Forum 2020
Dr Marc Al-Hames (CEO) & Markus Scheuermann (CFO)
16 November 2020
Agenda
1 Who we are
2 Financials
3 Current situation
4 Outlook
2
Who we are
3
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
German Equity Forum 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
HOLIDAYMAKERS push usage and traffic
German Equity Forum 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 Active markets of
German-speaking holiday travel HolidayCheck 5
market. It accounted for ~40% 3
(EUR ~27 billion) of the total
holiday travel market* (EUR 68.2 10 27
billion) in 2019. Total market size:
EUR 68 billion
Package travel is the preferred
form of holiday travel across all
age groups. Mostly because of
security and budget reasons. 23
Package travel Hotel-only Ticket-only Modula Tours Other
Source: Travel analysis 2020 FUR – Forschungsgemeinschaft Urlaub und Reisen e.V. *Holiday travel defined as 5+ days of German speaking population over the age of 14
German Equity Forum 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 FUR – Forschungsgemeinschaft Urlaub und Reisen e.V. *Holiday travel defined as 5+ days of German speaking population over the age of 14; with pre-booking of at least one component; multiple answers possible
German Equity Forum 2020 7
Current situation German Equity Forum 2020 8
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) at least recovered to levels close to those of previous years during summer season
• 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:
0.4 (-94% vs. PY)
Online travel agencies/day:
13,694 (-79% vs. PY)
Source: TrevoTrend Glassball, data based on week 42 (12 October 2020 – 18 October 2020)
German Equity Forum 2020 9
HolidayCheck during COVID-19
• Many trips that were booked in 2019 and Q1 Visits on HolidayCheck (desktop and mobile)
2020 had to be cancelled or rebooked in Q2 in million (IVW)
25
(already reflected largely in our Q1 figures)
• Recovering demand for the top 4 package
20
travel destinations will have significant impact
• Despite continuous booking restraint, interest 15
in holiday trips came back during summer
season. Also incoming reviews of
holidaymakers who travelled during COVID-1910
were mainly positive
5
0
Nov 19 Dez 19 Jan 20 Feb 20 Mrz 20 Apr 20 Mai 20 Jun 20 Jul 20 Aug 20 Sep 20
German Equity Forum 2020 10Current measures: Reduction of costs and complexity •1 Structural reduction of all costs (personnel and non- personnel) planned and mostly already implemented for the core brand HolidayCheck •2 Full focus on the core market DACH and significant reduction of complexity: Withdrawal from the Dutch market by selling Zoover and WeerOnline •3 Preparation for market recovery: Introduction of new products, e.g. HolidayCheck Flex German Equity Forum 2020 11
1 Comprehensive measures for sustainable and
more cost-efficient organizational structure
Personnel costs
Current staff cuts lead to sustainable reduction of personnel costs:
• Approx. 90 employees affected; this corresponds to approx. 20% of
the DACH business
• One-off effects from severance payments are included in Q3
• Full effect of structural savings to start in the next months, latest 2021
• Expected headcount at year-end: approx. 300
Leaner and more cost efficient organisational structure as a result
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
German Equity Forum 2020 122 Sale of Dutch subsidiaries WeerOnline and Zoover in July
To focus on the DACH region, the management sold the Dutch subsidiaries WeerOnline and Zoover
Sale of MeteoVista B.V. to Infoplaza B.V.:
• With effect to 31 July 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
German Equity Forum 2020 133
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
German Equity Forum 2020 14Financials
15Overview Q3 2020:
moderate recovery in demand during
the summer months
Market segment development
• The worldwide spread of COVID-19 and the associated travel
restrictions were partly lifted in June, particularly within the EU.
Gradual lifting of official travel warnings for countries like Turkey;
however still significant ambiguity
• Demand for package tours remained significantly down year-on-
year, however demand for hotel bookings (with own travel) has
recovered to levels of previous years
• Strong demand for destinations in DACH, subdued demand for
destinations in the Mediterranean
• As a result of the current travel warnings and travel restrictions it is
to be expected that the clearly subdued demand will continue for
some time to come
German Equity Forum 2020 16Financials Q3 2020 (continued operations)
In EUR million Q3 2020 Q3 2019
Revenue 13.0 34.7
Marketing expenses -0.7 -17.2
Personnel expenses -6.4 -8.7
Net impairment losses on financial assets 0.1 -3.3
Other expenses -7.2 -6.7
EBITDA -0.7 -0.4
Operating EBITDA 0.8 -0.4
Depreciation -1.9 -2.1
EBIT -2.6 -2.5
Financial result -0.1 -0.1
EBT -2.7 -2.5
Consolidated net result (continued and discont.) 0.5 -2.8
EPS (in EUR) 0.02 -0.04
Gross margin 9.5 34.2
German Equity Forum 2020 17Financials 9M 2020 (continued operations)
In EUR million 9M 2020 Adj. 9M 2020 9M 2019
Revenue 11.2 26.4 103.7
Marketing expenses -8.8 -13.7 -53.7
Personnel expenses -22.5 -22.5 -26.5
Net impairment losses on financial assets 0.3 -0.1 -3.9
Other expenses -17.8 -17.8 -18.0
EBITDA -33.0 -23.1 4.4
Operating EBITDA -31.0 -21.1 4.8
Depreciation -5.8 -5.8 -6.2
EBIT -38.8 -28.9 -1.8
Financial result -0.2 -0.2 -0.2
EBT -39.0 -29.1 -2.0
Consolidated net result (continued & discon.) -66.3 -54.6 -3.3
EPS (in EUR) -0.60 -0.98 -0.06
Gross margin 6.0 21.3 103.2
German Equity Forum 2020 18Financials 9M 2020
Continued revenue growth pre COVID-19
In EUR million 2016 2017 2018 2019 2020
2%
24% 6%
4% 11%
11% 41.4 42.2 8%
13% 7% 2%
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
13.0
9.2*
4.4
Q1 Q2 Q3 Q4
*adjustments for previous year’s recognized revenues for travel in 2020
German Equity Forum 2020 19Liquidity and new financing options
• Cash and cash equivalents at EUR 44.6 million as of 30
September 2020 (compared with EUR 27.5 million as of 31
December 2019)
• This includes revolving credit instrument of around EUR 14.8
million and a Swiss COVID+ loan of EUR 13.3 million
• In addition, sales proceeds from divestments of Dutch business
of EUR 14.4 million
• Additional long-term financing options currently being
evaluated
German Equity Forum 2020 20Outlook 2020 & 2021
21Outlook 2020 & 2021 Outlook 2020 – our current view • 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 to be 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 initial view • 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 level is not expected. Furthermore uncertainty in the market and among customers will persist. • Lean cost structure will make HolidayCheck better prepared for upcoming challenges, but also 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 German Equity Forum 2020 22
Outlook 2020 Guidance 2020 Due to the continuing uncertainties in the market, we are still unable to make a profit forecast and therefore maintain our existing guidance for the business: • 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 German Equity Forum 2020 23
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 become the best in the market in order to guarantee the best Holiday for all our users German Equity Forum 2020 24
Our vision
We want to build the most holidaymaker-friendly company in the
world!
German Equity Forum 2020 25 *German term for holidaymaker, vacationerThank you for your attention!
Appendix
Financial calendar 2021*
31 Mar: Publication of annual results 2020 & Annual Report 2020
Mar
10 May: Publication of Q1 2021 Interim Statement
May
17 Jun: Annual Shareholder Meeting 2021
Jun
09 Aug: Publication of Q2 2021 Interim Report
Aug
08 Nov: Publication of Q3 2021 Interim Statement
Nov
*Provisional dates
German Equity Forum 2020 28Contact
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
German Equity Forum 2020 29Disclaimer 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. German Equity Forum 2020 30
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