Amadeus It Group Sa Class A · BME:AMS
Amadeus It Group Sa Class A — Investor Presentation (June 2012)
33 slides from Amadeus It Group Sa Class A's investor presentation, June 2012
Slide 1: Amadeus Introductory presentation
Strictly private and confidential May 2012 © 2010 Amadeus IT Group SA Amadeus Introductory presentation June 2012
Slide 2: Disclaimer
Disclaimer These materials are being communicated only to persons who have professional experience in matters relating to investments and to persons to whom it may be lawful to communicate them (all such persons being referred to as “relevant persons”). These materials are only directed at relevant
Slide 3: Amadeus, the leading technology provider for the travel industry
Amadeus, the leading technology provider for the travel industry Travel Travel Travel providers buyers agencies Airlines Consumers/ Distribution General Hotels Provision of indirect distribution services public Online and offline travel Railway operators agencies Corporate travel Car rental departme
Slide 4: Global leader in our two business lines
Global leader in our two business lines Global Distribution System (GDS) Passenger Service System (PSS) estimated 2011 market share estimated market share by passengers 2011 Amadeus Amadeus #1 #1 38% 25% Others Others 62% 75% Technology focus & Sustained ongoing + leadership investment Superior exec
Slide 5: A Successful transaction processing model
A Successful transaction processing model Distribution Provision of indirect distribution services Travel (travel agency channel) Travel providers agencies Fees for Travel Agency IT Travel providers provide their Travel agencies select Amadeus content to Amadeus, free of cost, for real-time search,
Slide 6: An unparalleled track record
An unparalleled track record Revenue (€ mm) EBITDA (€ mm) ’11: ’04- ’11: R R ‘04- CAG +9.4% CAG +5.9% 1,039 2,707 4: ‘ 00-’0 R 4: CAG +7.6% ‘00-’0 R CAG +9.7% 1,817 553 1,357 382 2000 2004 2011(1) 2000 2004 2011 (1) Note: 2000 and 2004 figures refer to the Amadeus predecessor group 28.2% 30.4% 38.4%
Slide 7: Amadeus key investment highlights
Amadeus key investment highlights 1 Global leader in a robust Distribution business, with significant barriers to entry 2 Global leader in the IT Solutions business, a established and high growth business with large revenue visibility 3 Successful business model Transaction based: resilient to econo
Slide 8: Global leader in Distribution, having steadily gained market share with travel agencies
1 Global leader in Distribution, having steadily gained market share with travel agencies … 44% Amadeus Travelport Sabre Estimated 42% air market share 40% gain (2000-2010) 40% 38% 38% +12 pp 36% 34% 32% 30% 30% +0 pp 30% 28% 27% -13 pp 26% 26% 24% 22% 2000 2001 2002 2003 2004 2005 2006 2007 2008 20
Slide 9: Superior offering positions us for further profitable market share gains
1 …thanks to our superior offering which positions us well for further and profitable market share gains … What do travel agencies need? Amadeus comprehensive value proposition Multi year content agreements Content Wide breadth of global and local content Continuous commitment to innovation Product
Slide 10: Network effects and barriers to entry
1 … in an industry where market share is critical, generating powerful network effects and barriers to entry More travel More attractive providers on to travel the platform agencies More More investment Amadeus: Amadeus: revenues in IT Over 130,000 Over 700 Travel Agencies Airlines, & airline sales
Slide 11: The Distribution business exhibits strong resilience
1 The Distribution business exhibits strong resilience: sustained volumes and pricing power Amadeus Annual Bookings (m) Resilient Unit Booking Fee (1) (€) €3.73 €3.78 €3.78 €3.74 €3.82 €3.81 442 464 €3.58 428 431 413 391 373 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 Value
Slide 12: Key Drivers for the GDS Business showing favourable trends
1 Key Drivers for the GDS Business showing favourable trends: Global GDP Growth and Disintermediation Booking Travel Demand Competition Dynamics Process Traffic Growth Disintermediation Market Share Amadeus Global GDP Air Traffic GDS Market Bookings Growth Increase Increase Increase Historical ratio
Slide 13: Air travel grows at a multiplier to Global GDP growth
1 Air travel grows at a multiplier to Global GDP growth 2,800 CAGR CAGR CAGR CAGR CAGR 79-81: 91-93: 00-02: 03-07: 07-09 2,400 (0.1)% (0.7)% (1.0)% 7.8% (3.0)% Pax traffic Base 1970 RPKs (Revenue passenger kilometres) 2,000 CAGR 94-00: 5.2% 1.3-1.6x ratio CAGR 80s: 4.5% 1,600 World GDP Base 1970 1,2
Slide 14: Disintermediation risk slowing down
1 Disintermediation risk slowing down Disintermediation rate slowing down The GDS Value Proposition Significant shift to direct channel already deployed: Global reach: airlines can distribute their content Consumer behavior increasingly difficult to change in more than 200 markets Carriers facing di
Slide 15: Unique IT Solutions offering
2 Unique IT Solutions offering A unique vision, from booking to boarding Altéa Reservation Altéa Inventory Altéa Departure Control Customer profiles Inventory control Check-in Availability Schedule management Boarding pass issuance Bookings Seating management Baggage management Fares & Pricing Waitl
Slide 16: Amadeus Altéa – A unique community based platform
2 Amadeus Altéa – A unique community based platform offering significant advantages both to airlines and Amadeus From Numerous Legacy PSS… … to Amadeus Community PSS Providers of System Outsourcing and Application Hosting Core systems: 4,000 man-years Gaps and adaptations: 2,000 man-years In-House C
Slide 17: Amadeus Altéa - Established and high growth business with significant visibility
2 Amadeus Altéa - Established and high growth business with significant visibility Volumes - Passengers Boarded (mm) Altéa Growth Drivers High visibility with 10-15 year contracts 2014 figure Strong Pipeline estimate based on High growth with existing contract backlog signed contracts (1) IT Solutio
Slide 18: Business model resilience, profitability not correlated with airline industry
3 Our business model has shown strong resilience with profitability not correlated with that of the airline industry $ Bn € mm Airline sector operating profit(1) ($ Bn) 40 1,200 (2) Amadeus EBITDA (€ mm) 1,039 1,015 35 1,000 873 882 897 30 800 679 25 616 533 553 600 20 382 491 423 15 400 10 200 5 0
Slide 19: Strong technology focus and leadership supported by ongoing investment
3 Strong technology focus and leadership supported by ongoing investment R&D expenditure (€mm, incl. capitalised R&D) Total accumulated 2004-2011: c. €2.0bn 1: +12.9% 364 CAGR 04–1 349 257 228 236 217 191 156 13.0% 13.4% 9.0% 9.3% 8.8% 9.4% 10.6% 8.6% (1) (2) 2004 2005 2006 2007 2008 2009 2010 2011
Slide 20: Only transaction processor with synergistic businesses
4 Only transaction processor with synergistic businesses Technological Shared platform Shared in-house data centre Shared network Common application software Commercial Distribution Cross-selling to shared customer base IT Solutions Shared global sales presence Organisational Local presence to suppo
Slide 21: Strong Revenue and EBITDA growth and increased profitability since 2004
5 Amadeus has delivered strong Revenue and EBITDA growth and increased profitability since 2004 Revenue (€mm) Post-IFRIC, excl. Opodo 7.4% 09: +6.3% R 09–11: + Resilient: over 90% CAGR 04– CAG 2,707 2,322 2,578 2,505 2,461 2,348 2,594 recurring revenues and 2,116 1,817 85% transactional revenues 300
Slide 22: Both Distribution and IT Solutions have performed strongly
5 Both Distribution and IT Solutions have performed strongly Distribution IT Solutions Revenue (0.3%) (4.9%) 8.5% 4.4% Revenue 9.6% 2.2% 17.7% 4.4% 2,079 628 1,992 601 1,937 1,931 1,836 500 511 456 2007 2008 2009 2010 2011 2007 2008 2009(1) 2010 2011 Contribution Contribution Pre-IFRIC Post-IFRIC Co
Slide 23: Strong free cash flow generation and significant de-leveraging
5 Strong free cash flow generation and growth, leading to significant de-leveraging Pre-tax free cash flow(1) (€mm) Net debt / EBITDA(2) % : 11.7 G R 04–11 5.4x CA 829 811 770 779 (3) 4.6x 705 4.2x 624 3.6x 504 374 2.5x 91.9% 88.3% 87.6% 81.8% 80.0% 81.7% 73.5% 67.7% 1.75x 2004 2005 2006 2007 2008 2
Slide 24: Overview of Amadeus' Debt Structure
Overview of Amadeus’ Debt Structure Debt Maturity Profile as of June 2012 (€mm) 30 EIB Loan In May 2011, Amadeus signed Bridge Loan an agreement with a group of Euro Bond international banks to Bank Financing refinance its existing debt through a new senior 12.5 750 unsecured credit facility 106 Cov
Slide 25: Current Trading
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Slide 26: Air Traffic and GDS industry continue to show extraordinary resiliency
Air Traffic and GDS industry continue to show extraordinary resiliency Air Traffic (1) (% Growth, year-on-year) GDS bookings (% Growth, year-on-year) FY: 5.9% FY: 2.2% 7.7% 7.4% 4.6% 5.4% 5.3% 3.3% 4.4% 1.9% 2.0% 1.6% Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Strong air t
Slide 27: Key Performance Indicators
Key Performance Indicators Q1 2011(1) Q1 2012(1) % Change Volumes GDS Industry Growth (%) 1.6% 4.6% Amadeus Air Bookings 108.6 115.9 6.7% (m) Passengers Boarded 94.0 115.9 23.3% (PB) (m) Financial Results (€mm) Revenue 704.3 764.1 8.5% EBITDA 291.4 307.2 5.4% Adjusted (2) profit from 22.1% 137.4 167
Slide 28: Group revenue growth supported by both Distribution and IT Solutions
Group revenue growth supported by both Distribution and IT Solutions Group Revenue (€ mm) Distribution / IT Solutions Revenue (€ mm) Distribution 8.0% 597.6 553.5 8.5% 764.1 704.3 Q1 2011 Q1 2012 IT Solutions 10.4% 166.6 150.9 Q1 2011 Q1 2012 Q1 2011 Q1 2012 Group revenue growth of 8.5%, based on 8.
Slide 29: Strong growth at EBITDA and Profit level
Strong growth at EBITDA and Profit level EBITDA (1) (€ mm) Adjusted Profit (2) (€ mm) and EPS (€) Adjusted EPS (3) +21.6% €0.31 €0.38 5.4% 307.2 291.4 +22.1% 167.9 41.4% 40.2% 137.4 Q1 2011 Q1 2012 Q1 2011 Q1 2012 EBITDA EBITDA margin (%) Significant growth in our Group EBITDA Significant Adjusted p
Slide 30: Cash flow generation and deleveraging
Cash flow generation and deleveraging Cash flow(1) (€ mm) Net Debt to LTM EBITDA(2) (x) +48.5% 166.2 1.75x 1.65x 111.9 Q1 2011 Q1 2012 Q1 2011 Q1 2012 Cash flow generation of €166.2 million in Q1 2012, up 48.5% vs. Q1 2011, mainly due to: Increased EBITDA and significant reduction in interest expens
Slide 31: Summary Group Income Statement
Summary Group Income Statement Summary Group Income statement (Figures in milion euros) 2009 2010 2011 Revenue 2,348 2,594 2,707 % Change n.a. 10.5% 4.4% Cost of revenue (601) (653) (678) Personnel an related expenses (588) (640) (681) Depreciation and amortization (346) (342) (242) Other operating
Slide 32: Shareholder Structure
Shareholder Structure Board, 0.15% Air France, 7.73% Treasury shares, 0.47% Lufthansa, 7.61% Iberia, 7.50% Free float, 76.55% Shareholders Shares % Ownership Société Air France 34,578,223 7.73% Lufthansa Commercial Holding, GmbH 34,073,439 7.61% Iberia, Líneas Aéreas de España 33,562,331 7.50% Socie
Slide 33: Brighter, Bolder, Better
Brighter, Bolder, Better © 2010 Amadeus IT Group SA 33