georg hesse (ceo) - dr. dirk schmelzer (cfo) april 2016 · further net cash flow expected in 2016...

Corporate presentation

Georg Hesse (CEO) - Dr. Dirk Schmelzer (CFO)

April 2016

April 2016

TOMORROW FOCUS portfolio as of March 2015

Publishing assets Subscription assets

2April 2016Corporate presentation | Georg Hesse & Dirk Schmelzer

Travel assets

Three-Phase Execution

Phase I: Sale of the publishing assets to Burda Digital

Publishing assets Travel assets Subscription assets

Phase I

Sale to Burda Digital

April 2016Corporate presentation | Georg Hesse & Dirk Schmelzer 3

Phase II: Search for strategic partners for subscription assets and focus on travel



Phase II

Sale to Burda Digital Sale of assets

�


Phase II: Sale of ElitePartner and jameda completed



Phase II

Sale to Burda Digital Sale of assets

�


�

Disposal of jameda; valuation based on tender process

Disposal ofElitePartner; exclusivity deal withOakley Capital

Disposal ofTomorrow Focus Publishing; valuationbased on IDW S1

Successful disposal of non-travel assets on high valuations

Corporate presentation | Georg Hesse & Dirk Schmelzer 6

Apr Nov Dec

Net cash flows from sale of discontinued operations 2015

In EUR million, 2015

Cash Poolrepayment

Total 2015Sales costsSale EliteMedianetSale TOMORROW FOCUS Publishing

Sale jameda

-3.0-1.0

46.7*

29.9*

12.7*85.3

*Cash in adjusted for cash disposed of

2015

Closing date

April 2016

Further net cash flow expected in 2016


In EUR million, 2016 estimated

Total 2016eSale organize.me

Feb 2016

Vendor LoanElitePartner*

latest May 2017

Cash Pool jameda

Jan 2016

Total 2015 Sales costs(estimate)

Q1 2016

85.8

6.0-3.3

85.3

-3.21.0

* Without interest payments

Net cash flows from sale of discontinued operations 2016

April 2016

Travel strategy



Our new corporate structure

HolidayCheck AG WebAssets B.V.

April 2016

HolidayCheck is competing with strong, big spending players in a local market

Gross off-line media spend in the travel industry, 2015In EUR million

• HolidayCheck with

comparatively low

off-line media spend

• HolidayCheck still

with high traffic

performance due to

strong SEO traffic

and brand position

Local players Global players

Source: Nielsen

UnisterUnister

0

20

40

60

80

100

120

140

10Corporate presentation | Georg Hesse & Dirk Schmelzer

Local players with high

media spend

Global players with

low DACH focus

April 2016

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

Jan 15 Feb 15 Mrz 15 Apr 15 Mai 15 Jun 15 Jul 15 Aug 15 Sep 15 Okt 15 Nov 15 Dez 15


Monthly growth rate 2015 package holidays HolidayCheck vs German package market in % vs. PY; source: Traveltainment

The German package market 2015 with weak development,esp. in HY2 – HolidayCheck with outperformance

Key success factors of HolidayCheck

• Focus on customer satisfaction

• Content and search engine optimization (SEO as key assets)

• Disciplined spending in off-line marketing as well as in search engine marketing (SEM) by introducing vouchers as an alternative marketing tool to attract existing and new customers

April 2016

Product development is the key/basis for further growth


• Implementation of Next Generation IT platform accelerated

− Mobile platforms running on NextGen IT; current mobile share at 100%

− Desktop rollout on NextGen done for AT, CH and >50% on DE

− Increased A/B Tests from 0 (2014) to 70 (2015) to >300 (2016e)

• Implementation of Big Data Platform on track, first release went live by the end of 2015

• Relaunched Weeronline mobile and desktop

• Zoover rebrush of website, switch to new technology stack planned for Q3 2016

• Features, features, features, testing, testing, testing, testing…..

• Continue with Release 2.0 for Big Data platform

• Implementation of NextGenfrontend for Zoover

What‘s next

April 2016

24 months of investment in the NextGen IT-platform laid foundationfor future growth in IT, marketing and product


old site new site

April 2016

ReviewsReviews ReviewsReviews

This leads to a culture of continous innovation – first number ofnew features are already live, lot of more features will follow


old siteHotelHotel new siteHotelHotel

April 2016

2016: Deeper integration of service center on all devices


Service center integrationMobileMobile

April 2016

Full team in place


Timo SalzsiederChief Operating Officer

Georg HesseChief Executive Officer

Dirk SchmelzerChief Financial Officer

Anja KeckeisenChief Executive Officer HolidayCheck AG

Philipp GoosChief Executive Officer Zoover & Meteovista/WeerOnline

April 2016

Outlook

17Corporate presentation | Georg Hesse & Dirk Schmelzer April 2016

Package is key segment for HolidayCheck

Today still offline dominated

Significant growth potential

The German travel market (€ >50 bn) is relatively mature, with potential for a higher package online share

Travel market1, Germany, 2013/2014In € bn

Source: GfK Travelscope 2.0

1. All privately booked trips with a duration of at least 2 days and one pre-paid element, at least

70%

42%28%

30%

58%72%

Offline

HotelFlight / train

100%

Online

Package

Total size of travel market: € ~54 bnTotal size of travel market: € ~54 bn


The Dutch travel market has a relatively high online share

Dutch online travel market 2015In € bn

Source: SparkOptimus; own estimation

April 2016 19Corporate presentation | Georg Hesse & Dirk Schmelzer

54%

46%

2015

Offline

Online

Total size of travel market: € ~15.9 bnTotal size of travel market: € ~15.9 bn


* Urlauber [uːɐlaʊbɐ] is the German term for vacationer, holiday-maker

April 2016

Our assets are uniquely positioned to innovate around connecting customers with their desired vacation

Opportunity

� Technology: Cost for machine & advanced data analysis are decreasing, an opportunity to leverage our unique data set for improved personalized recommendations.

� Customer Needs: The majority of DACH customers still book their package vacation offline. Still too much complexity in choosing the perfect vacation. Multi-device usage.

Capabilities

� Urlauber*-centric DNA: The Group assets share a history of “Urlaubers for Urlaubers” platforms and a DNA of customer centricity

� Strenghts: Our assets have trusted and established brands for content and interaction focused on short-haul warm water package vacations

� Capabilities: Assets share core capabilities around connecting customers and around finding, recommending and validating the perfect vacation

Way Forward

� Focus: We are not about travel, we are about vacation. Specifically we make choosing and booking a vacation trivially easy for convenience vacation customers, customers that don’t want to become different people through their vacation but the same people, just happier and more relaxed.

� Geography: We focus on DACH-BENELUX markets. We are leveraging our trusted brands, and will dive deep into local customer needs and the complexity of the local industry.

� Growth Engine: Product expansion and active targeting of offline customers leveraging improved content, interaction and personalization.

Our goal: build the most Urlauber*-centric company in the industry


* Urlauber [uːɐlaʊbɐ] is the German term for vacationer, holiday-maker

April 2016

• Offer full range around the needs of the Urlauber

• Build on core values of the group: trust,

reliability, transparency

• Create continuous customer experience on all devices

• Long-term customer-centric culture of continuous innovation

• M&A: Build where we can, buy where we need

Next steps

Financial KPI‘s 2015


99.8

23.7

104.2

11.5

0

20

40

60

80

100

120

2014 2015

Segments 2015: Growth of 8% in DACH region

Revenue + EBITDA 2015 vs 2014

In EUR million

23

+4.4%

Corporate presentation | Georg Hesse & Dirk Schmelzer

• 2015: travel markets in Germany, Austria and Switzerland (DACH) with (1) slight growth in revenues in HY1 and significant decrease in HY2 due to the crises in Egypt, Tunisia and Turkey, (2) increased competition and record marketing spend, (3) all together resulting in high marketing spend. Benelux with flat market in 2015

• Travel segment with 4.4% growth in revenue in 2015; EBITDA decreased by 51.5% in 2015

• In the DACH region we grew our market share, especially in HY2, our revenue grew in a high single-digit range (+8%); higher marketing invest (2015: EUR 8.3 m.), negative CHF FX effect (2015: EUR 3.0 m.), restructuring costs (EUR 1.5 m.)

• WebAssets with decrease in revenues and earnings as a result of platform clean-up and sale of OTA assets of Zoover and Tjingo

Segment Development

(51.5)%

April 2016

0.3

(4.8)

0.2

(9.9)-12

-10

-8

-6

-4

-2

0

2

4

6

8

10

2014 2015

Holding/Other segment 2015 with one-off effects

In EUR million


Revenue + EBITDA 2015 vs 2014

Travel segment and holding/other segment will form one segment from 2016 on

• 2014: positive one-off effect of EUR 2.2 m.

• 2015: higher accruals for long-term incentive programs (EUR –1.0 m.) and restructuring costs (EUR –2.3 m.) lead to negative earnings effect

Segment Development

April 2016

Group figures TOMORROW FOCUS AG (IFRS)*


In EUR million 2015 2014Change(in %)

1 Revenue 104.4 100.1 +4.3

2Operating EBITDA*Operating EBITDA margin

6.46.1%

17.817.8%

(64.0)

3 Operating Depreciation 6.7 6.0 +168.3

4Operating EBIT*Operating EBIT margin

-0.3-0.3%

11.811.8%

-

5 One-Offs* -14.2 1.1 -

6 Financial result (1.9) (3.4) (44.1)

7EBTEBT margin

(16.4)(15.7)%

9.59.5%

-

8 EAT of continued operations (16.4) 6.9 -

9 EAT of discontinued operations 58.9 (10.6) -

10 EAT 42.5 (3.7) -

11 EPS of continued operations (in EUR) (0.28) 0.12 -

12 EPS (in EUR) 0.73 (0.06) -

* For adjustments to operating (one-offs) please refer to page 10

April 2016

Sound balance sheet and debt structure

Equity ratio vs. debt ratio 2011 – 2015

In percent

52.4 41.3 52.1 53.776.3

47.6 58.7 47.9 46.323.7

0%

20%

40%

60%

80%

100%

12 2011 12 2012 12 2013 12 2014 2015

Equity ratio Debt ratio

Maturity of bank loans 2016 - 2020

In EUR million

26

Earn-outs and put-calls 2015 - 2020

In EUR million

TOMORROW FOCUS AG with sound balance sheet and debt structure

Corporate presentation | Georg Hesse & Dirk Schmelzer

14,5

02468

101214161820

2016 2017 2018 2019 2020

2,20.0 0.5 0.0 0.0

02468

101214161820

2016 2017 2018 2019 2020

April 2016

Corporate restructuring of TOMORROW FOCUS, HolidayCheck and WebAssets lead to negative one-off effects


In EUR million 2015 2014

1 Goodwill impairment Tjingo + PPA Tjingo assets (3.4) 0

2 Impairment of software WebAssets + HolidayCheck (6.1) 0

3 Value adjustment earn-out WebAssets (0.1) +2.0

4 Compensation component WebAssets 0.2 (0.1)

5 Provisions for onerous contracts associated with an office building (0.8) 0

6 Revaluation of long-term incentive program (LTIP) (0.7) +0.3

7 Provisions for severance payments relate to reorganization (3.2) (0.6)

8 Pension provisions (0.1) (0.5)

7 Total one-offs (14.2) +1.1

Savings in former Holding functions of > EUR 1 million p.a. + putting the business in the right place to grow

One-off effects of continued operations

April 2016

Appendix


58.8%

0.2%

41.0%=

EUR 86 million

Burda Digital GmbHManagement Board & Supervisory BoardFreefloat

Shareholdings Management Board

Dirk SchmelzerCFObefore that: Telefónica Group

TOMORROW FOCUS AG:One of Germany’s leading listed internet groups

Key facts

� Headquarters: Munich, Germany

� Employees 2015: 387 (FTE)

� Share capital: EUR 58,313,628

� Admitted to Prime Standard: ‚TFA‘; ISIN DE0005495239

� Share price 52wk high/low: EUR 5.65/ EUR 2.62

� Share price 15 April: EUR 2.80

� Market capitalization: EUR 163.3 million

Corporate presentation | Georg Hesse & Dirk Schmelzer 29April 2016

Timo SalzsiederCOObefore that: D+S Europe AG

Georg HesseCEObefore that: Amazon Germany

Financial calendar 2016*

* Provisional dates

Corporate presentation | Georg Hesse & Dirk Schmelzer 30April 2016

Date Event Location

4 May 2016 Publication of the 1Q 21016 interim report (German version) Munich, Germany

10 May 2016 Goldman Sachs European Small- and Mid-Cap Symposium London, UK

16 June 2016,

11 a.m. CET

Annual General Meeting Haus der Bayerischen Wirtschaft,

Max-Joseph-Str. 5, Munich, Germany

5 August 2016 Publication of the Interim Report for 2Q 2016 (German version) Munich, Germany

8/9 September 2016 db Access European TMT Conference London, UK

19-21 September 2016 Berenberg & Goldman Sachs German Corp. Conference 2015 Munich-Unterschleißheim, Germany

8 November 2016 Publication of the Interim Report for 3Q 2016 (German version) Munich, Germany

November 2016 Corporate presentation at the German Equity Forum 2016 Frankfurt, Germany

TOMORROW FOCUS AG | Neumarkter Str. 61 | 81673 Munich, Germanywww.tomorrow-focus.comwww.twitter.com/tomorrowfocuswww.facebook.de/tomorrowfocuswww.youtube.com/tomorrowfocus

Contact

Dirk SchmelzerChief Financial Officer+ 49 (0)89 [email protected]


Armin Blohmann Head of Group Communications & IR+49 (0)89 [email protected]

Georg HesseChief Executive Officer+ 49 (0)89 [email protected]

April 2016

Disclaimer


This presentation contains 'forward looking statements' regarding TOMORROW FOCUS AG or TOMORROW FOCUS GROUP,including opinions, estimates and projections regarding TOMORROW FOCUS AG’s or TOMORROW FOCUS GROUP’s financialposition, business strategy, plans and objectives of management and future operations. Such forward looking statements involveknown and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievementsof TOMORROW FOCUS AG or TOMORROW FOCUS GROUP to be materially different from future results, performance orachievements 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 mayor may not prove to be correct.No representation or warranty, express or implied, is made by TOMORROW FOCUS AG or TOMORROW FOCUS GROUP withrespect 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 allmaterial information concerning TOMORROW FOCUS AG or TOMORROW FOCUS GROUP.TOMORROW FOCUS undertakes no obligation to publicly update or revise any forward looking statements or other information statedherein, whether as a result of new information, future events or otherwise.

georg hesse (ceo) - dr. dirk schmelzer (cfo) april 2016 · further net cash flow expected in 2016...

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