results 9m & q3 2019 · 2. financials 9m & q3 2019* results 9m & q3 2019 7 in eur...

Results 9M & Q3 2019Georg Hesse, Nate Glissmeyer & Markus Scheuermann

8 November 2019

Overview 9M & Q3 2019

Financials 9M & Q3 2019

Core activities 9M & Q3 2019

Outlook 2019

Appendix

Agenda

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2

1. Overview 9M & Q3 2019

3

Results 9M & Q3 2019 4

1. Overview 9M & Q3 2019: Travel industry faced some headwinds

Market segment development• German package travel industry in first 9M 2019 flat to last year

according to GfK.• Online Travel (OTA) outperformed traditional channels (+7% vs. -2% according to

GfK).• Thomas Cook insolvency affected revenue and operating EBITDA of HolidayCheck

Group AG in Q3 2019.

Financials• HolidayCheck Group revenue up 3.8% in first 9M 2019 and 5.6% in Q3, despite

comparison against strong yoy growth in first 9M 2018 of +16.3%.• Operating EBITDA of EUR 5.6 million in first 9M 2019 (EUR -4.6 million yoy) and

EUR -0.2 million in Q3 2019 (EUR -2.6 million yoy). • Adjusted full-year guidance to 1 - 4% revenue growth and operating EBITDA of

EUR 2.0 – 6.0 million.

Results 9M & Q3 2019 5

Impact of Thomas Cook InsolvencyInsolvency of German Thomas Cook companies was announced on 25th September 2019:• >20.000 HolidayCheck bookings affected (> 50.000 Urlaubers)• >25.000 calls received in our Service Center and more than 31.000 emails

answered within one week

Operational measures:• Dedicated team and 24 hours operations room installed• Continuous information of our customers via mailings, calls, community posts, own

landing page including live ticker and own hotline for Thomas Cook customers • 48 extra freelance travel agents hired to support Service Center as well as several

employees from other departments within HolidayCheck

Impact:Negative effect of approx. EUR -3.0 million in Q3 2019 due to value adjustments. No further significant value adjustments in upcoming quarters expected for past bookings. Impact on overall consumer sentiment towards package tours to be seen.

2. Financials 9M & Q3 2019

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2. Financials 9M & Q3 2019*

Results 9M & Q3 2019 7

In EUR million 9M 2019 9M 2018 Change in % / EUR million

Q3 2019 Q3 2018 Change in % / EUR million

Revenue 112.5 108.4 +3.8% / +4.1 37.6 35.6 +5.6% / +2.0

Marketing expenses -55.2 -53.0 +4.2% / +2.2 -17.7 -18.2 -2.7% / -0.5

Personnel expenses -31.4 -29.2 +7.5% / +2.2 -10.3 -9.6 +7.3% / +0.7

Other expenses -24.3 -20.3 +19.7% / +4.0 -11.0 -6.8 +61.8% / +4.2

EBITDAEBITDA margin

5.14.5%

9.58.8%

-46.3% / -4.4 -0.2-0.5%

2.26.2%

- / -2.4

Operating EBITDAOperating EBITDA margin

5.65.0%

10.29.4%

-45.1% / -4.6 -0.2-0.5%

2.46.7%

- / -2.6

Depreciation -7.5 -4.9 +53.1% / +2.6 -2.5 -1.7 +47.1% / +0.8

EBITEBIT margin

-2.4-2.1%

4.64.2%

- / -7.0 -2.7-7.2%

0.51.4%

- / -3.2

Financial result -0.3 -0.1 +200% / -0.2 -0.1 0.0 - / -0.1

EBTEBT margin

-2.7-2.4%

4.54.2%

- / -7.2 -2.8-7.4%

0.51.4%

- / -3.3

Consolidated net result -3.3 3.1 - / -6.4 -2.8 0.2 - / -3.0

EPS (in EUR) -0.06 0.05 - / -0.11 -0.05 0.00 - / -0.05

* Other expenses and EBITDA were positively affected by IFRS 16 effect of EUR +2.0 million in 9M 2019 and EUR 0.7 million in Q3 2019, whereas Depreciation was negatively affected.

2. Financials 9M & Q3 2019

In EUR million

Results 9M & Q3 2019 8

Slight, yet continued revenue growth despite strong 2018 comparison

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%42.2

32.7

37.6

3. Core activities 9M & Q3 2019

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3. Core activities 9M & Q3 2019

Results 9M & Q3 2019 10

• Product improvements• Microsite with smart recommendation engine was build to help

Thomas Cook customers find similar offers when rebooking their holidays.

• New technical infrastructure implemented into holidaycheck.de improves website performance. Positive feedback from users and lower abandon rates.

• Tour Operator• Expansion of product portfolio: 60.000 hotels in 176 countries

bookable as well as package trips to Turkey, Spain, Greece, Egypt and Portugal.

• Cruise• Cooperation with new cruise line partners like Schauinsland Cruise

Packages, Viva Cruises, A-Rosa, Royal Caribbean and Norwegian Cruise Line.

4. Outlook 2019

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Results 9M & Q3 2019 12

We want to build 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

Results 9M & Q3 2019 13

Urlauber-friendliness

Community Expert Advice Artificial Intelligence

ShortTrips

PackageHolidays

CruisePackagedRound-

tripsHotelOnly

RentalHomes

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

Tour Operator

Results 9M & Q3 2019 14

Guidance adjustments 2019

Business performance affected by market segment development in 2019

• German package travel industry flat in first nine months 2019 compared to2018.

• HY1 burdened by Germania insolvency (>13,000 package bookings via HC) lead to higher costs, lower revenues through cancelations.

• Despite accelerated growth end of Q2 and beginning of Q3, the overallgrowth level did not suffice to fully compensate weak HY1.

• HY2 now strongly burdened by Thomas Cook insolvency (> 20.000 bookingsvia HC). Negative effect of approx. EUR -3.0 million in Q3 2019 due to value adjustments on trade receivables.

• Potential short- to mid-term impact due to consumer sentiment towards package holidays and changes in tour operator landscape yet to be seen.

Updated GuidanceRevenue growth of 1 – 4 % and operating EBITDA of EUR 2 - 6 million. (Prior: 3 -6% revenue growth, operating EBITDA EUR 7.5 – 10.5 million)

Results 9M & Q3 2019 15

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

• Invest in product to drive loyaltyContinue to invest in product development to improve Urlauber-experience

• Invest in the best teamHR initiatives resulted in culture that attracts talent. We foreseehiring top tech talent to remain strong

• Set Long Term SeedsFurther development of tour operator business

Our long-term ambition:• Sustainable double-digit growth• Operating EBITDA margin of 15%

Thank you for yourattention!

Results 9M & Q3 2019 16

Appendix

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

Results 9M & Q3 2019 18

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European package travel market segment

Results 9M & Q3 2019 19

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

• European package travel is a EUR 56bn market (of which DACH EUR 19.6bn)• Including related fields, the DACH market is EUR 47bn• Germany: 66% of German package travel bookings still offline• Benelux: high online penetration and high market share of tour operators

DACH EUR 47bn 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 2018 and online penetration based on Eurostat data and own estimations

19,6

3,09,0

5

9,0

0,6

Package holidays Short-trip, Wellness Rental homesCruise Packaged roundtrips Other

*gross revenue 2018; own estimations based on data of Eurostat and Statista

Financial calendar 2019/2020*

Results 9M & Q3 2019 20

*Provisional dates

Nov 1911/08 Interim report Q1-3 2019

Nov 1911/27 German Equity Forum 2019 – Frankfurt, Germany

Mar 2003/25 Final results 2019

May 2005/08 Interim Report Q1 2020

www.holidaycheckgroup.com HolidayCheck Group @HolidayCheckGrp

Contact

Georg HesseCEO

+49 89 357 680 911georg.hesse@holidaycheckgroup.com

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Nate GlissmeyerCPO/CTO

+49 89 357 680 916nate.glissmeyer@holidaycheckgroup.com

Armin BlohmannDirector Group Comm. & Investor Relations

+49 89 357 680 901armin.blohmann@holidaycheckgroup.com

Results 9M & Q3 2019

Markus ScheuermannCFO

+49 89 357 680 917markus.scheuermann@holidaycheckgroup.com

Disclaimer

Results 9M & Q3 2019 22

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.