Dana Dunne, eDreams ODIGEO - NOAH18 London

Good morning, everyone. It's a pleasure to be here to talk to you about eDreams. Did you know we were actually one of the largest online travel companies in the world? We come from a heritage of flights, flights only, and we've been diversifying out. There are three really big major focus attractions for eDreams going forward: the first one is a winner in Europe, second is revenue diversification, and third is leading world capabilities. I'll go through each of these in turn. In terms of winner in Europe, if you look on the right-hand side of the screen, we are number one in flights in Europe. We're one of the three largest in flights globally. If you look at most main European countries, we're either number one or number two in that market. Another way of looking at it is simply sheer size. We are the largest by far, and when you get down to past number four, you have a long tail of competitors that are 1/10, 1/20, 1/50 our size. So the ability for those to compete, if you know technology and software, scale really matters, and we are the scale player here. We use that to our advantage, and we see this as a great opportunity to continue to put pressure on smaller ones that can't compete, can't develop the products and services to attract, develop, and retain customers. I'll take you through how we use scale more to our advantage and to put pressure on this very fragmented marketplace. I talked about revenue diversification. We were a flight-only company until recently, and we've been using our brand and our brand position to start selling other products and services. On average, a consumer books a flight before they book any other travel product like hotel, car, etc. So for us, the marketing money is already spent. We're the number one in flights. We have the customers, and now it's about cross-selling and upselling to other products and services. For us, we have two big important categories that we're first focusing on. One is simply ancillaries. It's an 80 billion euro market just in Europe, and it's growing at over 20% per annum. The second one is dynamic packages, again a 110 billion euro market growing at over 10% per annum. Two very attractive markets with very good dynamics, and that's where we're really focused on. In addition, there are a number of other product categories we're also focused on. If you look at the right-hand side of the chart, the bottom one, you can see a couple of data points that we release every quarter to the marketplace because we're a publicly listed company. The bottom one is product diversification ratio. That's basically for every 100 flight bookings, how many other products and services do we sell? In the past year, we've grown that by over 25%. In the past two years, we've grown it by over 70%. So you can see the amount of growth and impetus that we're putting into diversifying the business, and it's very attractive and very profitable for us. We believe we're absolutely at the early stage of this. We have much more to do in the two main product sets, and then there are many other product categories to go after as well. Marko mentioned Barcelona-based, and absolutely right. We run most of our development actually from Barcelona. Well, we have ten other locations, but the main one is absolutely Barcelona. Because of the great attractiveness of Barcelona, we recruit people throughout the world. So we literally have recruiters in Buenos Aires, in Bogota, in Berlin, in Budapest, etc. In our Barcelona office alone, we have over 60 different nationalities, and we see this as our talent pool. The larger your pool of talent that you're attracting from, the more likely you're going to get better and better. That's exactly what we do, and we use Barcelona as a real competitive advantage for us. We have larger development teams than anyone else that we're competing with in the flight marketplace within the European landscape. Many of our competitors have again one tenth, one twentieth, or even smaller size teams than ours. Let me show you through numbers in the next two slides about how we actually use that to our advantage. First one: we do one billion monthly searches. There are very few e-commerce companies that do that. 120,000 peak searches per second. We manage 80 million supplier searches. We bid into Google 35 times per second. Clearly, this is all through automation, through mostly machine-based learning. Again, we use our technology, our size, and our scale to make sure it's a competitive advantage, and the automation and insights that we therefore generate are not available to smaller scale players. Another way of looking at this scale is simply through the customer angle. So we call ourselves a technology company that focuses on the travel market. In order to be a winner in a marketplace, you need to match technology with customer insights, customer needs, and customer value. So we spend a huge amount of time to try to figure out exactly what the customer wants. We bring in every quarter on average 1,100 customers to our office to test products and services. So that means almost every day, we're bringing in a handful, anywhere between 120 to 130 customers a day into our office. We've got a state-of-the-art customer insights lab, and we'll test anything from big strategic things all the way down to little minutiae detail, like maybe just even filling in a form, your name. Because it's not just the what, but it's the how. That's how we actually get our products and services to be rated number one. So again, if you go into Trustpilot, we're rated number one. If you go on the App Store, our mobile app is the number one rated mobile app in travel in Europe for the main European countries. Number one, 4.4 stars out of five. The scale: we launched over 6,000 new feature functionality changes per year. 6,000 per year, so that means that we are releasing code per day up to 20 times. That's a real software operation, and there are not many companies that can do that. We use that for competitive advantage. We're continuing to push our products and services forward and forward, and a lot of the subscale players just simply can't compete with that, can't do that at this pace of change that we innovate on our products and services. We push out then within 15 minutes we push out our products go throughout the world. So we go to 43 different countries. We have four different brands. So push out immediately to 43 different countries, four brands, 20 languages, 30 currencies. Done. That's it from one development, instantaneously out there. I talked about marrying customer and technology, and one of the ways we do this is also through machine-based learning. Now, I know that many of you have sat through loads of presentations, read loads of articles about this because it's the thing that's really hip and cool to talk about now. We've been doing this for years. You don't get to our scale, you don't manage 35 bids per second if you just start doing it now. We've been doing this for years. And so we have it in many, many different areas of our business. Not only do we do machine-based learning, but we do autonomous machine-based learning in a number of areas of our business. Autonomous would be like reinforcement learning or Q-learning if you know those, and those are the types of languages that are done. For example, autonomous self-driving cars like Google's ones, we use the same type of frameworks, the same types of codes in a number of areas of our business as well. And we do that in order to generate insights for our customers, insights upon their behavior, and allows us to tailor our products and services to them. Mobile: I talked about leader in mobile. We have almost 40% of our bookings mobile-based, and we have the number one rated mobile app. And then lastly, just to end up, if you look at in terms of from a financial investor point of view, a bit of multiple is about six times. If you look at that, that's about half of the multiple of many of our other peers in the sector. So personally, we're highly invested as management within the company with our own personal wealth, and we believe it's a great opportunity for investors as well because of our potential, our leading position, our growth opportunity in revenue diversification, and the unique capabilities that we bring. Thank you. Thank you much, thank you so much, Kathy.