Amadeus It Group Sa Class A · BME:AMS

Amadeus It Group Sa Class A — FY2011 Earnings Presentation

36 slides from Amadeus It Group Sa Class A's earnings presentation, Feb 24, 2012

  1. Slide 1: Amadeus FY 2011 Results

    Amadeus FY 2011 Results February 24, 2012 © 2011 Amadeus IT Group SA

  2. Slide 2: Disclaimer

    Disclaimer This presentation may contain certain statements which are not purely historical facts, including statements about anticipated or expected future revenue and earnings growth. Any forward looking statements in this presentation are based upon information available to Amadeus on the date of

  3. Slide 3: The Year in Review

    The Year in Review President & CEO, Mr. Luis Maroto © 2011 Amadeus IT Group SA

  4. Slide 4: Record financial results…

    Record financial results… EBITDA growth of 6.4% to €1,039.0 million EBITDA margin at 38.4%, up from 37.6% in 2010 Adjusted profit for the year from continuing operations increased to €487.2 million, up 20.7% from 2010 Adjusted EPS from continuing operations increased by 20.8%(1) to € 1.09 vs. 2010 F

  5. Slide 5: … and strong operating performance…

    … and strong operating performance… Very significant market share gain of 1.0 p.p. in our distribution business Continued to sign contracts that secure the relevant content for our travel agency subscribers, including low cost carriers Successfully extended all relevant distribution contracts for re

  6. Slide 6: … despite a challenging environment

    … despite a challenging environment Challenging global macroeconomic and financial situation, with significant levels of uncertainty Political instability in the Middle East, sustained throughout the year Various natural disasters affecting Asia Pacific (Japan) and Latin America (Chile) Newsflow fro

  7. Slide 7: Consistent execution both in Distribution and in IT Solutions

    Consistent execution both in Distribution and in IT Solutions… Market share gains in the Distribution business New Client wins and successful migrations (1) 109 115 1.0p.p. 37.7% 94 100 36.7% 2010 2011 Successful upselling of DCS 2010 2011 92 61 42 32 © 2011 Amadeus IT Group SA Source: Numbers of tr

  8. Slide 8: …where Contracted Airlines will Drive Future Growth

    …where Contracted Airlines will Drive Future Growth PB (incl. organic growth) (m) Selected Upcoming Migrations > 735 Cathay Pacific: H1 2012 x +1.7 Singapore Airlines: H1 2012 SAS: H1 2012 Thai Airlines: H1 2013 439 Asiana: H2 2013 Korean Air: H2 2014 All Nippon Airways: H2 2014 Others undisclosed ©

  9. Slide 9: Delivery under all of our key strategic pillars

    Delivery under all of our key strategic pillars 1. 2. 3. 4. 5. Develop and Expand Diversify Continued Continued Grow Airline IT outside of Focus on Optimisation Leading Air Solutions Air Technology of Distribution Business Distribution Leadership Operational Business and Airline Efficiency IT Profit

  10. Slide 10: Business Highlights

    Business Highlights President & CEO, Mr. Luis Maroto © 2011 Amadeus IT Group SA

  11. Slide 11: Positive industry performance despite challenges

    Positive industry performance despite challenges Air Traffic (1,2) (% Change, year-on-year) GDS bookings (% Change, year-on-year) 8.6% 8.7% FY (2): 5.9% 9.6% 9.5% 7.7% 7.7% 7.1% 7.6% FY: 8.2% 5.4% 5.3% FY: 2.2% 4.4% FY: 7.9% 4.4% 3.3% 1.9% 2.0% 1.6% Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q

  12. Slide 12: Our business model and market share gains deliver sustained volume growth

    Our business model and market share gains deliver sustained volume growth… Amadeus TA Bookings (m) Passengers Boarded (1) (m) +5.0% 500 463.8 +17.9% 441.6 439.1 450 61.4 425 372.3 400 59.2 400 375 350 134.2 325 88.2 300 300 275 +5.2% 250 225 200 382.4 402.4 200 +7.3% 175 150 284.1 304.9 125 100 100

  13. Slide 13: … Supported by our positive geographic mix

    … Supported by our positive geographic mix 2011 Amadeus air TA bookings by region 2011 Altéa PB by region % Volume Growth % Volume Growth Q4 FY Q4 FY NA, 9.2% LatAm, 13.2% WE 5.9% 4.0% WE 10.8% 26.8% LatAm, 6.8% WE, 47.3% WE, 52.1% CESE 7.0% 5.6% APAC, 7.5% CESE 11.5% 21.1% APAC, 14.2% MEA 4.2% 3.2%

  14. Slide 14: … And Revenue growth also supported by pricing

    … And Revenue growth also supported by pricing Average Booking Fee (€) Average IT Transactional revenue per PB (€) €3.82 €3.81 €0.98 €0.98 2010 2011 2010 2011 Distribution Like-for-like Revenue(1) Growth (%) IT Solutions Like-for-like Revenue (2) Growth (%) +5.2% 2,079.4 +7.8% 1,977.4 2,000 310.8 +1

  15. Slide 15: Financial Highlights

    Financial Highlights CFO, Mrs. Ana de Pro © 2011 Amadeus IT Group SA

  16. Slide 16: Both Distribution and IT Solutions have performed strongly

    Both Distribution and IT Solutions have performed strongly Distribution IT Solutions Like-for-like Revenue (1) Like-for-like Revenue (1) 7.8% 5.2% 632.6 2,079.4 586.8 1,977.4 (2) 2010 2011 2010 2011 Contribution Contribution 46.5% 45.7% 72.6% 2.6% 68.1% 926.3 950.4 11.3% 455.9 409.5 2010 2011 2010 2

  17. Slide 17: Group Net Indirect Fixed Costs

    Group Net Indirect Fixed Costs Net Indirect fixed costs (1) (€ mm) +2.2% 367.3 359.4 2010 2011 Net indirect costs grow at 2.2%, driven by a 3.0% growth in gross indirect costs and a 7.4% © 2011 Amadeus IT Group SA increase in capitalisations Growth in indirect costs mainly driven by: increased effor

  18. Slide 18: FY 2011 Group EBITDA

    FY 2011 Group EBITDA(1) Contribution to EBITDA growth in 2011 (€ mm) 6.4% 46.5 (8.0) 24.1 1,039.0 976.4 2010 EBITDA Contribution Distribution Contribution IT Solutions Indirect costs and 2011 EBITDA capitalizations & RTC % Revenue (1) 37.6% 38.4% Significant growth in our Group EBITDA based on the p

  19. Slide 19: R&D and Capex

    R&D and Capex Total Group R&D spend (€ mm) Total Group Capex (€ mm) +23.9 % +5.7% 312.7 325.8 344.4 44.3 252.3 44.1 Includes impact of signing 268.4 bonus and 208.2 increased level of contract wins 2010 2011 2010 2011 Intangible Assets Tangible Assets % revenue (1) 12.6% 12.7% % revenue (1) 9.7% 11.

  20. Slide 20: Free cash flow generation and Profit

    Free cash flow generation and Profit Free cash flow(1) (€ mm) and Leverage (x) Adjusted Profit (3) (€ mm) and EPS (€) Net debt / LTM EBITDA (2) Adjusted EPS (4) +20.8% 2.52x 1.75x €0.90 €1.09 507.5 -3.9% 487.5 +20.7% 487.2 403.5 2010 2011 2010 2011 Free cash flow generation of €487.5 million in Sign

  21. Slide 21: Overview of Amadeus' Debt Structure

    Overview of Amadeus’ Debt Structure Debt Maturity Profile Post Refinancing Signed in May 2011 (€mm) Bridge Loan In May 2011, Amadeus signed an agreement with Euro Bond a group of international Bank Financing banks to refinance its 456 existing debt through a 750 new senior unsecured credit facility

  22. Slide 22: 2012 Outlook

    2012 Outlook © 2011 Amadeus IT Group SA

  23. Slide 23: The macroeconomic backdrop: expectations for 2012

    The macroeconomic backdrop: expectations for 2012 World GDP Growth “Global recovery stalls, downside risks 2011 2012 Change intensify” World Output 3.8% 3.3% (0.5p.p.) “The global recovery is threatened by intensifying strains in the euro area and fragilities elsewhere.” Advanced economies 1.6% 1.2%

  24. Slide 24: Travel industry: high uncertainty levels around various market participants in 2012

    Travel industry: high uncertainty levels around various market participants in 2012 Airlines The airline industry is under severe financial pressure, as a consequence of extremely challenging markets: According to IATA, in Q4 2011, airline profits worldwide were down 55% vs. 2010 Fuel prices remain

  25. Slide 25: Distribution: Relevant operating data in 2012

    Distribution: Relevant operating data in 2012 Average Booking Fee 2011 2012 Renegotiation of remaining US content agreement No other significant renegotiations upcoming Stable pricing (average booking fee) expected to continue in 2012 Continued market share gains © 2011 Amadeus IT Group SA Despite t

  26. Slide 26: IT Solutions: Relevant operating data in 2012

    IT Solutions: Relevant operating data in 2012 IT Transactional Revenue / PB 2011 Migration to DCS + Hybrid carriers Mathematical dilution 2012 Inflation revision (lower relative growth e- Commerce, Standalone) 10 scheduled migrations to Altéa (Reservation + Inventory) 4 are current System Users (1)

  27. Slide 27: Capital Structure and Dividend Pay-out

    Capital Structure and Dividend Pay-out Target Net debt / EBITDA ratio (as of December 2012): below 1.5x, based on Capital structure strong cashflow generation €0.37 per share (gross), subject to approval at the 2011 Shareholders’ General Meeting Representing a 35.6% pay-out of 2011 Reported profit f

  28. Slide 28: Q4 Highlights

    Q4 Highlights © 2011 Amadeus IT Group SA

  29. Slide 29: Q4 2011 Highlights

    Q4 2011 Highlights Amadeus TA Bookings (m) Passengers Boarded (m) +6.4% % Volume Growth +9.7% 109.7 111.6 % Volume Growth 120 120 103.1 WE 5.9% 101.7 4.4 15.0 2.1 WE 10.8% 95 14.3 95 CESE 7.0% CESE 11.5% +7.7% 70 +6.7% 70 MEA 4.2% 99.6 107.2 MEA 7.0% 88.8 94.7 45 APAC 6.9% 45 APAC 3.4% 20 LatAm 14.7

  30. Slide 30: Distribution and IT Solutions performance in Q4

    Distribution and IT Solutions performance in Q4 (in €mm) Distribution IT Solutions Revenue Revenue 6.5% 491.0 8.6% 156.6 144.2 460.9 Q4 2010 Q4 2011 Q4 2010 Q4 2011 Contribution Contribution 41.5% 40.4% 68.8% 66.3% 3.2% 192.3 198.6 12.6% 107.7 95.6 Q4 2010 Q4 2011 Q4 2010 Q4 2011 © 2011 Amadeus IT G

  31. Slide 31: Q4 2011 Group EBITDA

    Q4 2011 Group EBITDA(1) Contribution to EBITDA growth in Q4 2011 (€ million) 8.0% 12.1 6.2 (3.2) 203.4 188.3 Q4 2010 EBITDA Contribution Contribution IT Indirect costs and Q4 2011 EBITDA Distribution Solutions capitalisations & RTC % Revenue (1) 31.0% 31.4% © 2011 Amadeus IT Group SA Significant gro

  32. Slide 32: Support materials

    Support materials © 2011 Amadeus IT Group SA

  33. Slide 33: Reconciliation of segment reporting

    Reconciliation of segment reporting Reconciliation of Contribution and Operating income (€ million) 2010(1) 2011(1) % Change Contribution 1,335.7 1,406.3 5.3% of which, Distribution 926.3 950.4 2.6% of which, IT Solutions 409.5 455.9 11.3% Indirect fixed costs (422.8) (435.5) 3.0% (2) Indirect capit

  34. Slide 34: Key Performance Indicators

    Key Performance Indicators 2010(1) 2011(1) % Growth Volumes GDS Industry Growth (%) 7.9% 2.2% Amadeus Air TA 382.4 402.4 5.2% Bookings (m) Passengers Boarded 372.3 439.1 17.9% (PB) (m) Financial Results (2) (€mm) Revenue 2,593.6 2,707.4 4.4% EBITDA 976.4 1,039.0 6.4% Adjusted (3) profit for the year

  35. Slide 35: Extraordinary costs related to the IPO

    Extraordinary costs related to the IPO (€ million) 2010 2011 Personnel and related expenses (1) (312.1) (19.0) Other operating expenses (2) (13.5) 1.2 Interest expense (3) (29.2) 0.0 Total Impact on Profit before Taxes (354.8) (17.8) Income taxes 110.0 5.5 Total impact on Profit for the year from co

  36. Slide 36: Your technology partner

    AMdaDEUS Your technology partner

Amadeus IT Group — FY2011 Earnings Presentation on 6ix