Amadeus It Group Sa Class A · BME:AMS
Amadeus It Group Sa Class A — Investor Day (2016)
37 slides from Amadeus It Group Sa Class A's investor day presentation, Aug 24, 2016
Slide 1: Introduction by Head of Amadeus Airport IT
Good morning. My name is John Jarrell, Head of Amadeus Airport IT. It’s good to be here and have this opportunity to explain what we are doing in the Airport IT business and how we see our growth prospects for the future. Most of us in this room spend significant amounts of our time travelling. We t
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements about Amadeus within the meaning of applicable securities law. All statements other than historical facts included in this presentation, including, without limitation, those regarding Amadeus financial position, business strategy, unde
Slide 3: Introduction
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Slide 4: Airports lack seamless real-time information exchange
In an ideal world, airports would be able to exchange real-time information seamlessly with all their stakeholders. Integrating systems and collaborating across the airport ecosystem would make airport operations easier and more efficient. However, the various players within the airport (airports, g
Slide 5: Common technology for airports, airlines and ground handlers
specifically for airport operators, ground handlers and airlines - which need to stay informed about ground operations. By sharing common technology between airports, airlines and ground handlers, the flow of data between the different airport players is more fluid, making it easier to collaborate.
Slide 6: Airport challenges and legacy IT systems
The challenge for airports is to deliver a world class experience against the background of poor visibility, inefficiencies, increasing operational costs, declining revenues, strong growth in passenger numbers and limited capacity to absorb additional traffic. Part of the problem lies with legacy IT
Slide 7: Pressure on aeronautical fees and need for new revenue
Increasing pressure on the aeronautical fees that airports charge to airlines for the use of their facilities, combined with increasing operational costs caused by inefficiencies, leaves little room for any profit margin and has forced airports to rethink the traditional revenue model. Controlling c
Slide 8: Air traffic growth and airport IT investment trends
Air traffic will grow at an average annual rate of 4.6% over the next 20 years. In order to absorb the traffic increase, new infrastructure – representing a huge multi-year investment for airports- will not work alone. IT is a great enabler and investing in IT solutions will help airports cope with
Slide 9: Operational efficiency and addressable market
to 76% in last year’s SITA’s survey. _ Improving operational efficiency and reducing the cost of operations. The second major area of focus for IT investment relates to airport operations, such as managing aircraft resources, land and airside passenger activity and tracking assets. It is a high prio
Slide 10: Amadeus value proposition: five key differentiators
Many industry experts have set out their vision of the “Airport of the Future.” For us, the successful airport of today and tomorrow will be one that most efficiently and cost effectively provides a world-class experience for passengers and airlines alike. Our value proposition is designed to meet t
Slide 11: Data differentiator: GDS bookings and PNRs
bookings, representing 42.5% of all GDS bookings world-wide, as well as 45 million bookings and over 70 million PNRs through the airlines’ direct channels. The booking information allows us to predict the passenger volume that an airport can expect on a given date and time. Furthermore, our solution
Slide 12: Experience and cost differentiators
for 27 years, and in the airline IT market since 2001. Amadeus has successfully evolved and adapted its business model to constantly changing market needs over this period, building strong foundations for a successful sustainable future. Amadeus has delivered major mission critical IT cut-overs time
Slide 13: SaaS transaction-based pricing model
Amadeus is the largest SaaS supplier to the travel industry. Like any other SaaS supplier, Amadeus utilises a transaction-based pricing model. Our customers just pay for the use of our technology. This is a big benefit for our customers as they do not have to make costly, upfront payments to invest
Slide 14: Licensed model versus SaaS model
customers. The licensed model opens doors to getting the more traditionally-oriented customers on board, to whom we can then demonstrate, over time, the benefits of the SaaS model. Characteristics of the licensed model: _ Hosted locally (at the airport). _ Customisable. _ Operations are the responsi
Slide 15: Strategy
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Slide 16: Three key strategies set in 2013
These 3 key strategies were set for Amadeus Airport IT back in 2013. They were all implemented successfully and the achievements are explained in the following section. 10
Slide 17: Ground handler entry strategy
Ground handling companies face increasing challenges in order to operate more efficiently within an airport environment. They must engage with a number of different airline departure control systems (DCS) every day – sometimes a ground handler's staff will have to use 20 different systems. This comp
Slide 18: Altéa DCS for Ground Handlers portfolio
at that airport as well. Since the solution was launched in 2011, the top ground handling companies worldwide have managed to overcome many of their operational challenges with Amadeus Altéa DCS for Ground Handlers. This has given Amadeus a leading portfolio of close to 100 ground handler companies
Slide 19: Complete suite of more than 20 solutions
Our most significant achievement to date is that, in the space of 3 years, we have evolved from being an organisation that had a plan to develop and sell a portfolio of solutions, to one that already has a complete suite. We have successfully commercialised our integrated portfolio and each of the c
Slide 20: Solutions provided by ground handlers
provided by ground handlers. 12
Slide 21: Integrated suite and UFIS acquisition
Traditionally, IT providers in our industry are specialised in certain areas of the operational chain of airports. Some are good at baggage solutions, others are good at ramp solutions. However, very few are capable of covering a broad range of the IT needs that airports have. In the case of Amadeus
Slide 22: Airport services in the travel booking
access at the same time as making a flight or hotel booking. By doing so we can help increase top and bottom lines with revenue generating tools. This is unique in the industry and is another good example of how Amadeus’ deep travel industry penetration delivers big customer benefits. Our state of t
Slide 23: Airport Common Use Service (ACUS)
What is ‘common-use’? A common-use facility or terminal design doesn't require airlines to have their own check-in counters, gates and IT systems. Rather, check-in counters and gates can be flexibly reassigned as needed. It is essentially the same equipment which is shared by different airlines usin
Slide 24: ACUS customer savings examples
the Gmail site, and start using the tool. Any new functionalities developed by Google are instantly available to you without any different set up on your device. Amadeus has completely changed the way applications are delivered to users, by effectively bringing the user to the application. On the sl
Slide 25: M&A strategy: UFIS and AirIT
Further to the strategic achievements explained before, Amadeus has strengthened our airport offering and market presence with an M&A strategy. In the first quarter of 2014, we announced the acquisition of Singapore-based airport technology provider UFIS Airport Solutions. As already mentioned, UFIS
Slide 26: Customer base and scale
And now some straightforward data on the size and scale of our business. Starting with customers. We now have a total of more than 230 customers spread across the regions that you can see in the slide. We have highlighted some notable customers. We have successfully expanded our customer base and re
Slide 27: Global footprint of airport management solutions
And this is our global footprint as a business. The dots on the map mark the airports that use our airport management solutions (close to 80 airport sites). 17
Slide 28: Altéa DCS for Ground Handlers footprint
This map indicates at which airports Altéa DCS for Ground Handlers is used. We have close to 100 Ground Handler customers spread across 230 airport sites using this solution. 18
Slide 29: Back-office passenger processing deployments
The slide illustrates at which airports our two back-office passenger processing solutions are deployed (AirIT’s EASE product in the Americas, ACUS in the rest of the world and Quebec Airport). These solutions are available at more than 50 airports today. 19
Slide 30: Combined global footprint
And here is a representation of our combined global footprint with all 3 groups of solutions reflected. Our airport IT solutions are available today at more than 330 airport sites worldwide. 20
Slide 31: Copenhagen Airport case study
Copenhagen Airport is a good example to illustrate the value of our proposition to the market. Back in 2010, Amadeus shared its vision to build an airport IT platform with Copenhagen Airport with the aim to leverage the expertise and collaboration of both companies and make that vision a reality, an
Slide 32: Copenhagen Airport 10-year plan
and departures. Instead of pouring billions into new facilities that would be half-empty for many years, the airport can now invest gradually as it expands, and finance the plan with its own cash flow and with the right scalable technology. In October 2015 Copenhagen Airports chose Amadeus to provid
Slide 33: Airport IT market landscape 2015
The chart on-screen shows the Airport IT market landscape in 2015. The bigger player in the airport IT market is SITA. SITA has the richest portfolio of solutions and the bigger customer base, supported by its networks business. It offers revenue management systems, passenger processing systems, bag
Slide 34: Competitor profiles
aircraft and vehicle systems segment. It has served over 100 airports and more than 100 airlines worldwide. The company has a regional presence in North America, Europe, and APAC. 22
Slide 35: Product and market strategy going forward
Looking forward, our product strategy will be centred around the following objectives: _ Consolidation of our Airport IT product portfolio by bringing together Amadeus, UFIS and AirIT solutions. _ Product enhancements or new features will be developed. _ Completion of our global ACUS infrastructure.
Slide 36: Airports of the future and closing remarks
Looking at the journey as a whole, it is clear that airports are a key part of the overall trip experience. There is an opportunity, not only for better decision-making within individual airports, but also at the inter- airport level. Today, coordination between airports is very limited, but in the
Slide 37: Thank you!
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