Final Results 2018Georg Hesse, Nate Glissmeyer & Markus Scheuermann
27 March 2019
Overview FY 2018
Financials 2018
Investment areas 2018
Outlook 2019
Appendix
Agenda
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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
Final Results 2018 5
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
Final Results 2018 7
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
Final Results 2018 8
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
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3. Investment areas 2018: Create a culture where the best excel
Final Results 2018 10
• 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
Final Results 2018 11
• 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
Final Results 2018 12
• 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
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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
Final Results 2018 14
• 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.
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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
Final Results 2018 16
• 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
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Final Results 2018 18
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
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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
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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
Final Results 2018 21
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
Final Results 2018 22
CEO Georg Hesse
• Extension of contractuntil 30 June 2023
CPO/CTO Nate Glissmeyer
• Extension of contractuntil 31 December 2022
Thank you for yourattention!
Final Results 2018 23
Appendix
Our eco system: a unique combination of a platform & pipelinebusiness
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European package travel market segment
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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*
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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
28
Nate Glissmeyer
CPO/CTO
+49 89 357 680 916
Armin Blohmann
Director Group Comm. & Investor Relations
+49 89 357 680 901
Final Results 2018
Markus Scheuermann
CFO
+49 89 357 680 917
Disclaimer
Final Results 2018 29
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.