EDreams ODIGEO S A : Achieved Nº 2 in flights globally, Nº 1 in Europe Outstanding Prime performance Optimally set for future

Barcelona, 27^th May 2021 - eDreams ODIGEO (www.edreamsodigeo.com), Europe's largest online travel company and one of the largest European e-commerce businesses, today reports its results for the 12 months ended 31^st March 2021.

After a challenging year we are now seeing improving trading conditions as pandemic restrictions are easing. Actions taken over the last year to develop the business, without raising capital, have positioned an already market leading and very strong company to emerge from the pandemic as an even better business set to benefit from its scale advantages, its pioneering and very successful subscription product, Prime, and the market's positive structural drivers.

Trading for the year heavily impacted by travel restrictions

• COVID-19 induced restrictions led to a 79% decrease in revenue.
• Adjusted EBITDA amounted to (- €38.2) million (+ €115.1m in FY20), well managed due to highly adaptable business model.
• Marginal profit (revenue minus variable cost) was €25m positive despite investment in call centre and COVID -19
• Adjusted net income was - €86.8m (2020: +€34.7m)
• Strong liquidity position maintained: €106m at end March

Accelerating market recovery

• The US market is leading the recovery, with a more advanced vaccination effort
• Europe is improving rapidly too with vaccination programmes progressing
• We have seen volumes improve month on month: -62% in March, - 51% in April and May -28% (up until the 22nd of the month) compared to FY19.

Structurally well positioned to maximise the post pandemic opportunity:

• Our pioneering subscription offer, Prime, saw membership grow by an outstanding 58% over the year to 876,000 subscribers and has reached 1 million subscribers in May.
• We have an unrivalled scale advantage and are now number 2 in the world in retailing flights and have increased our market share in Europe by 6%, reaching 37% in just the last 12 months.
• We have a balanced business with diversification Revenue of 57%, up +4pp year on year
• Positioned for an accelerated online world - mobile bookings rose to 56% of total flight bookings, from 44% last year

Ourpioneering vision to reinvent travel and travel provision

• We will continue to grow Prime through product innovation and geographic expansion and will achieve our target of 2 million members one year ahead of schedule, before the end of summer 2022.

Dana Dunne, Chief Executive Officer, commented:

'We are coming out of the pandemic stronger with greater growth ahead of us. Our unique subscription programme 'Prime' has already passed one million members and we are set to achieve our goal of 2 million members a year ahead of schedule. We continue to increase our competitive advantage and take market share from our competitors and are the clear leader in Europe and the second in the world in the flight retailing business.

We continue to reinvent travel for our customers and provide innovative solutions for our customers and continue to expand our product offering as well as expand geographically. I firmly believe that our business has never been stronger and I am incredibly excited by the opportunity that lies ahead.'

Business Overview

When we presented our full-year results last year, our business had already been seriously disrupted for 7 weeks as the global pandemic took its effect. Experts were already predicting it would take two to three years to develop a vaccine, and that travel would therefore not return for four to five years. Fortunately, there have been unprecedented breakthroughs in vaccines and other medical treatments. Thus, with all of the pain and suffering caused by the pandemic, there is hope and better days to come. And it has become clear that leisure travellers want to travel and will return to the market much quicker than initially predicted. As a leisure only focused business, that gives us an advantage in that our part of the market will return even quicker.

Given the strength of our business and business model, we have not needed to raise any additional capital. This has set us apart from our competitors who have had to raise millions and even billions of new capital. And while others have had to lay off large amounts of their workforce, we have not. Early on in the pandemic it was clear to us that given our unique business model and prudent management, we would be a winner. We thus have focused on making us stronger, building a brighter future for our customers, shareholders and eDOers. We already see this in the figures, we are now number 2 in the world in retailing flights and have increased our market share in Europe by 6% reaching 37% just in the last 12 months.

We have taken every opportunity in the year to strengthen our business wherever possible to take advantage of the terrific opportunity that now lies before us.

Prime is a great growth opportunity: in May we already reached our first 1 million subscribers. We are the leader and inventor of a subscription-based model in travel. While in other industries the subscription model has been proven by Netflix in streaming, Spotify in Music, Amazon in consumer goods, no one has done this in travel until eDreams ODIGEO. We have been developing this for 4 years and have a bright future ahead of us. During the pandemic of the past year, we have continued to invest and innovate on our subscription offering and have seen remarkable results. Over the past year our subscribers grew by 58% to 876,000. To put this growth in context, the growth equates to 100,000 new subscribers per month in a normalised non-COVID-19 market. We are very proud to announce that in May we already surpassed a major milestone, which is our 1st one million subscriber, despite the softening of the demand due to COVID-19. In addition, 39% of our flight Bookings are now from Prime members. And we are way ahead of schedule to hit our 2 million subscriber target, which we will likely meet a year ahead of schedule, latest by the end of summer 2022.

In Prime we will continue to deepen and broaden our relationship with customers, earning more repeat business and greater share of their travel wallet. We have added hotels, in which Prime members can get great Prime hotel prices in over 1 million hotels. Also, we have added dynamic packages to Prime so a customer can choose any flight and any hotel and get a fabulous Prime price, in addition to all of the other perks that come with Prime. And all of this was introduced without increasing our subscription fee.

We also rolled out Prime to more countries, with the addition of the US, UK and Portugal. Coupled with Prime we have significantly improved the content customers can access. With improvements we have made on our platform and the addition of Travelport as a strategic partner, we can deliver enhanced content for our customers including further improved flight combinations and the addition of selected rail content onto the platform. We have also incorporated AI into our cache as well as in a number of other places. As a result of these changes, more than 50% of our results are now 75% faster than a year ago and we can produce far more unique flight offerings to our customers.

We have invested in customer care. Before the pandemic, the average booking cancellation rate was not material. Since March 2020, our customer services teams have managed almost 2 million flight cancellations and when payments were not delayed by the airline, our customers have been receiving refunds within 10 days. To support the unprecedented volume of enquiries we increased our team by hundreds of individuals. Furthermore, we launched an initiative to create the first automated customer servicing process for flights. Already we are seeing good results on this multi-year initiative with over 50% of our customer contacts being handled now digitally with high levels of customer satisfaction. There is more to do, and much greater opportunity for us to differentiate ourselves vs our competitors on customer, servicing and satisfaction.

We have expanded internationally. Bookings outside the Top 6 markets now account for around 34% of our total bookings vs 25% in FY20. We will continue to focus on this, leveraging our scale to improve performance. We knew a year ago that the pandemic was going to disproportionately affect certain travel markets more than others. Thus, we focused on several markets in order to benefit from this. For example we relaunched our US proposition and localised websites in Arabic to better serve travellers in the Middle East region, as well as have invested in our Australian websites as well.

We have strengthened our world leading Artificial Intelligence capabilities. We are proud to say that we have proven world leading capabilities in this area. Many companies say that they do, but the honest truth is that having solutions which make decisions in real time, that learn and develop through reinforcement learning, and that really integrate into its products is very rare and very few companies in the world actually do. We are proud to say we do.

We deploy AI at scale across most business functions. Our readily accessible and increasingly automated big data and machine learning capabilities (ML) have greatly democratized and industrialized the integration of predictive machine learning business outcomes. Our product development teams have an abundance of platforms, technologies and people expertise to simplify and speed the delivery of value, deploying and evolving machine learning powered solutions at scale.

This provides us a competitive advantage in that we are able to personalize, individualise our propositions to our customers in real time. For example, based on the behaviour we see of an individual customer on our websites, paired with the individual customer's past behaviour and booking preferences such as a Prime customer, we are able to propose individual products and or services that are far more likely to meet the individual customer's needs than grouping customers into cohorts or segments. Coupling state of the art technology with Prime provides real advantage.

We continue to strengthen our leadership in mobile and online. Mobile is an inescapable trend, only strengthened by the pandemic. eDreams ODIGEO has led the travel industry and all e-commerce industries in Europe in mobile. With our further investments we are getting close to 60% of our Bookings being made on mobile devices. The industry average in Europe is 37%. In addition, in Europe many traditional, more offline brands have closed large portions of their businesses as we see more and more consumers coming online. Couple this with our market leading brands, being number one flight retailer in Europe and number one or number two in all main European countries. As a result we now have 37% market share in Europe in flights, an improvement of 6 percentage points, and are now ranked number two in the world, after Trip.com.

Given the pandemic, it is inevitable that the Company made a loss for the year. However, the results proved once again the strength and adaptability of our business model. The way in which we have built our business, our variable cost structure enables us to adjust our costs to adapt to softer demand. In FY21 our Bookings were down by 70% and likewise our Variable Cost, reduced by -75%. In addition, we have a proven ability to adapt and rapidly reduce Fixed Costs & CAPEX. Supplementary measures resulted in Fixed costs and CAPEX savings of €32 million, well ahead of €28 million we guided to the market at our FY20 results last year, adding extra adaptability to our business model.

In 4Q FY21 rising COVID-19 cases caused further travel restrictions to be imposed by some governments, which again returned Bookings to minus 70% vs FY19 levels. However, within 4Q we saw an improvement with March returning a better minus 62% vs FY19, and this has continued in 1Q FY22. In April Bookings were down 51% vs F19 and for the month of May until 22nd May were already at minus 28%. This improvement shows that travel demand is there, as more people are vaccinated and travel restrictions lifted, travel activity tends to pick up very quickly and meaningfully.

We have prudently managed our liquidity to ensure that we emerge from lockdown with a secure average liquidity position during the pandemic of €117 million. We have used the time to further develop our business so that it remains at the forefront of our industry, safe for our employees and an even better proposition as our customers return en masse.

We have a focused Environmental, Social and Governance agenda. As a technological, e-commerce, customer facing company, the most material areas of ESG risk that affect our organization are in Social and Governance. Although our core activities have a relatively low environmental impact, we are continually exploring ways in which we can reduce any environmental footprint we may leave and are pleased to report eDreams ODIGEO has achieved carbon neutrality for FY 2021 and FY 2020.

We will continue to engage with customers, partners, suppliers and investors on ESG and sustainability issues and develop plans for becoming an even more sustainable business.

As one of the world's largest online travel companies, we are committed to helping travellers discover the world in an environmentally healthy and sustainable way. We firmly stand for a travel industry that protects the environment and positively impacts local communities.

Our carbon-offset strategy in addition to neutralizing the scope 2 and scope 3 emissions generated by our operations, also aims to simultaneously address some of the negative impacts of the travel industry via the following offset pathways;

• Supporting global reforestation and biodiversity
• Supporting the global transition to renewable energy

Unsurprisingly current trading is impacted by COVID-19 related travel restrictions. However, we continue to see improvements week by week. As the vaccine continues to roll out, and travel restrictions continue to be lifted people want to and do travel. Already almost 1 billion people have received the first vaccine. Even prior to vaccines, last summer in 2 months almost 50% of the market returned simply from the lifting of the spring lockdown restrictions. Moreover, countless reports show high pent-up demand to travel for leisure.

Thus, we believe we have a bright future. We are a leisure only focused business, a leader in our market, well positioned to take advantage of the underlying structural tailwinds in our marketplace. We are a pioneer building a unique relationship with customers via Prime. This is why, overall and in comparison, to the market, our trading has outperformed the airline industry (both regular and low-cost carriers), gaining market share vs supplier direct vs our direct competitors.

We have a unique team of which we are immensely proud. Our fellow eDOers have been extraordinary during this past year. While the pandemic has touched all of us, eDOers have been there for one another and for our customers. We have an incredible esprit de corps and even in the darkest days have continued to look after one another, our customers, and the business. We have used this time, this crisis, to better ourselves as a company, as a team and as individuals. We have strengthened our business, built a unique and leading proposition to customers with excellent growth prospects, and as such we all believe our best days are ahead of us.

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Business review by geography

We operate five leading brands eDreams, GO Voyages, Opodo, Travellink, and the metasearch engine Liligo. We have a strong presence in 45 markets, covering 80% of the total travel market through 251 websites and apps in 20 languages and 36 different currencies on one central platform.

The top 6 markets (France, Spain, Italy, Germany, United Kingdom and the Nordics) recorded €85.9 million of revenue in FY21.

Revenue diversification by geography remains stable.

In summary

Our business is ready to ride the industry tailwinds. We have already increased our market share of flights in Europe by 6%, reaching 37% over the past year and as leisure travel is expected to recover more quickly than business, and with eDreams ODIGEO being a leisure focused business we expect to see our market return much more quickly. Last summer as restrictions eased, we saw the travel market recover very quickly and with the enhanced safety afforded by the vaccines we fully expect the same to happen this summer.

We are a business that constantly innovates and leads the industry, our Prime offer is going from strength to strength, and we are confident we will far exceed our target of 2 million subscribers by 2023. We are focused on creating a cutting edge travel platform that is truly customer centric.

There is a significant opportunity ahead, this is the time for eDreams ODIGEO to thrive.

About eDreams ODIGEO

eDreams ODIGEO is one of the world's largest online travel companies and one of the largest e-commerce businesses in Europe. Under its four leading online travel agency brands - eDreams, GO Voyages, Opodo, Travellink, and the metasearch engine Liligo - it serves more than 17 million customers per year across 45 markets. Listed on the Spanish Stock Market, eDreams ODIGEO works with over 650 airlines and has partnerships with 130. The brand offers the best deals in regular flights, low-cost airlines, hotels, cruises, car rental, dynamic packages, holiday packages and travel insurance to make travel easier, more accessible, and better value for consumers across the globe.