Amadeus It Group Sa Class A · BME:AMS
Amadeus It Group Sa Class A — Investor Presentation (May 2016)
39 slides from Amadeus It Group Sa Class A's investor presentation, May 2016
Slide 1: Amadeus Introductory Presentation May 2016
Amadeus Introductory Presentation May 2016 © 2016 Amadeus IT Group SA
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/ Hotels Distribution General public Provision of indirect distribution services 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 Passenger Service System (PSS) Air TA Booking industry estimated estimated competitive position by competitive position1 passengers Amadeus Amadeus Others Others _ Leading competitive position in high growth _ Unique new-generation solution © 2016 Amadeus IT G
Slide 5: A successful transaction processing model
A successful transaction processing model Travel Distribution Travel providers Provision of indirect distribution services agencies (travel agency channel) _ Travel providers provide Fees for Travel _ Travel agencies select their content to Amadeus, Amadeus for real-time free of cost, obtaining Agen
Slide 6: An unparalleled track record
An unparalleled track record Revenue (€ million) EBITDA (€ million) 1,465 3,913 976 2,594 1,817 553 1,357 © 2016 Amadeus IT Group SA 382 2000 2004 2010 2015 2000 2004 2010 2015 % Margin 28.2% 30.4% 37.6% 37.5% Note: 2000 and 2004 figures refer to the Amadeus predecessor group entity, listed in the c
Slide 7: Amadeus key investment highlights
Amadeus key investment highlights 1. Global leader in a robust Distribution business 2. Global leader in the IT Solutions business, an established and high growth business with large revenue visibility 3. Sustainable competitive advantages driven by investment in R&D and network effect _ Differentia
Slide 8: Global leader in the Distribution business
1 Global leader in the Distribution business © 2016 Amadeus IT Group SA
Slide 9: Global leader in Distribution, having steadily improved its competitive position
Global leader in Distribution, having steadily improved its competitive position in the Air TA industry1 Estimated air competitive position1 46% Amadeus Competitor 2 Travelport Competitor 1 (2000-2015) Sabre 44% +17 pp 42% 40% 38% 36% +1 pp2 34% 32% 30% 28% © 2016 Amadeus IT Group SA 26% -17 pp 24%
Slide 10: Superior offering positions us for further profitable growth
…thanks to our superior offering which positions us well for further and profitable growth What do travel Amadeus comprehensive agencies need? value proposition The balancing item Price (Incentives paid) Amadeus superior offering = lower economic incentives Multi year content agreements Content Wide
Slide 11: Scale is critical, generating powerful network effects is key
… in an industry where scale is critical, generating powerful network effects is the key More travel More attractive providers on to travel the platform agencies More More investment Revenues in IT Amadeus: Amadeus: attractive Over 700 competitive Airlines, position in 250,000 the travel hotels + ag
Slide 12: Distribution business exhibits strong resilience: sustained volumes and pricing
The Distribution business exhibits strong resilience: sustained volumes and pricing Amadeus Annual Bookings (m) Resilient Unit Booking Fee (1) (€) €4.2 €3.95 €3.94 €4.02 €3.73 €3.78 €3.78 €3.74 €3.82 €3.81 €3.58 566 526 503 464 477 428 431 413 442 373 391 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 13: Key drivers for Distribution: global GDP growth and disintermediation
Key drivers for Distribution showing favourable trends: global GDP growth and disintermediation Travel Booking Competition demand Process Dynamics Traffic Growth Disintermediation Competitive position Global GDP Growth Air traffic increase GDS Market Amadeus increase bookings increase •Historical ra
Slide 14: Air travel grows at a multiplier to Global GDP growth
Air travel grows at a multiplier to Global GDP growth 4,000 CAGR 79-8: CAGR 91-93 CAGR 00-02 CAGR 07-09 (0.1)% (0.7)% (1.0)% (3.0)% 3,600 Pax traffic Base 1970 3,200 CAGR 03-07: 7.8% Passengers (millions) / World GDP 2,800 1.3-1.6x CAGR 94-00: 5.2% ratio 2,400 CAGR 80s: 4.5% 2,000 World GDP 1,600 CA
Slide 15: Disintermediation exists, but an important part of the shift has already happened
Disintermediation exists, but an important part of the shift has already happened Disintermediation is stabilising The GDS Value Proposition _ Significant shift to direct channel already deployed: _ Global reach: airlines can distribute their content in • Consumer behavior increasingly difficult to
Slide 16: Global leader in the IT Solutions business
2 Global leader in the IT Solutions business © 2016 Amadeus IT Group SA
Slide 17: Unique IT Solutions offering
Unique IT Solutions offering A unique vision, from booking to boarding Altéa Reservation Altéa Inventory Altéa Departure Control _ Customer profiles _ Inventory control _ Check-in and boarding _ Availability and bookings _ Schedule management _ Self-service _ Fares and Pricing _ Seating management _
Slide 18: Amadeus Altéa
Amadeus Altéa A unique community based platform offering significant advantages both to airlines and Amadeus From Numerous Legacy PSS… … to Amadeus Community PSS Core systems: 5,000 man-years Providers of System Outsourcing and Application Hosting Gaps and adaptations: 2,000 man-years In-House Carri
Slide 19: Amadeus Altéa: established and high growth business
Amadeus Altéa Established and high growth business with significant visibility Volumes - Passengers Boarded (m) Altéa Growth Drivers High visibility with 10-15 year contracts 2017/2018 _ IT Solutions play a vital role in estimate based on High growth with existing contract backlog signed contracts (
Slide 20: Investment in R&D
3 Investment in R&D © 2016 Amadeus IT Group SA
Slide 21: Strong technology focus supported by on-going investment
Strong technology focus and leadership supported by on-going investment R&D expenditure (€ million, incl. capitalised R&D) 661 Total accumulated 2004-2015: c. €4.2bn. 568 CAGR 2004- 2015: +14.0% 525 437 349 364 _ Sustainable R&D % of Revenue 236 257 competitive 217 228 191 advantages 156 14.2% 16.9%
Slide 22: Sustainable competitive advantages supported by operational capabilities
Sustainable competitive advantages supported by our operational capabilities Best-in-class fully-owned data centre, core to Amadeus industry leadership _ A world class data centre: high performance, high security facility • Redundancy in all critical areas: 2.6+ billion <0.5 sec 3.9+ million minimum
Slide 23: Successful business model
4 Successful business model © 2016 Amadeus IT Group SA
Slide 24: Transactional business model shows strong resilience to the economic cycle
Our transactional business model shows strong resilience to the economic cycle Profitability not correlated with that of the airline industry 70 Airline Sector operating profit ($ billion) (1) Amadeus EBITDA (€ million) (2) 1,600 1,465 1,306 1,400 60 1,189 1,109 1,200 50 1,015 1,039 897 1,000 873 88
Slide 25: Synergistic businesses
5 Synergistic businesses © 2016 Amadeus IT Group SA
Slide 26: Highly synergistic Distribution and IT Solutions businesses
Highly synergistic Distribution and IT Solutions businesses Technological •Shared in-house data centre •Shared platform and network _ Unique position in the •Common application software industry, difficult to match Commercial _ Enhanced product •Intricate consumer knowledge offering in a cost- •Cros
Slide 27: Financial Performance
6 Financial Performance © 2016 Amadeus IT Group SA
Slide 28: Both Distribution and IT Solutions performed strongly
Both Distribution and IT Solutions performed strongly Distribution IT Solutions Revenue (€ million) Revenue (€ million) 2,738 1,175 2,455 2,318 2,201 963 1,992 2,079 1,836 786 709 601 628 511 2009 2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015 Contribution (€ million) Contribution
Slide 29: Revenue and EBITDA
Revenue and EBITDA Amadeus has historically delivered strong Revenue and EBITDA growth and increased profitability Revenue (€ million) 3,913 3,418 3,104 2,910 2,707 2,322 2,578 2,505 2,348 2,594 _ Resilient: over 90% 2,116 1,817 recurring revenues and 85% transactional revenues _ Not linked to airli
Slide 30: Strong free cash flow generation and growth
Strong free cash flow generation and growth Enabling significant de-leveraging and increased shareholder remuneration Free cash flow(1) (€ million) Net debt / EBITDA(2) 659 596 3.6x 576 542 508 488 416 2.5x 1.8x 1.3x 1.3x 1.1x 1.1x (4) 1.0x © 2016 Amadeus IT Group SA 2009 2010 2011 2012 2013 2014 20
Slide 31: Overview of Amadeus' Debt Structure
Overview of Amadeus’ Debt Structure Debt Maturity Profile as of March 31, 2016 (€ million) Bank financing Euro Bond EIB loans ECP 115 30 48 50 750 400 65 65 500 65 250 250 15 2016 2017 2018 2019 2020 2021 2022 Summary terms of the facilities Description Amount Maturity Comments _ Amortization: €125m
Slide 32: Results Jan - Mar 2016
Results Jan - Mar 2016 © 2014 Amadeus IT Group SA
Slide 33: Double-digit group revenue growth
Double-digit group revenue growth Group Revenue (in € millions) Segment Revenue (in € millions) Group Distribution +4.2% +13.2% 751.7 1,120.0 989.4 721.6 Q1 2015 Q1 2016 Q1 2015 Q1 2016 _ Group revenue expanded by 13.2%, driven by a 4.2% and 37.6% increase in Distribution and IT Solutions revenue, r
Slide 34: Double-digit EBITDA and Adjusted EPS growth
Double-digit EBITDA and Adjusted EPS growth EBITDA growth (in € millions) Adj.Profit1 (€ millions) & Adj. EPS2 (€) 460.0 +15.2% 448.8 250.0% 255.0 €0.56 0.60 +17.0% 440.0 245.0 €0.48 200.0% 0.50 420.0 +17.0% 235.0 0.40 400.0 389.6 150.0% 225.0 380.0 0.30 100.0% 215.0 245.6 360.0 0.20 340.0 205.0 39.
Slide 35: Sustained investment in R&D and Capex
Sustained investment in R&D and Capex R&D investment1 (in € millions) 170.0 Capex (in € millions) 180.0 250.0% 150.0 +3.9% 142.3 26.0% 137.0 +14.8% 166.9 200.0% 130.0 25.4 21.0% 160.0 31.2 150.0% 110.0 145.4 16.0% 13.8% 100.0% 90.0 12.7% 140.0 11.0% 50.0% 70.0 105.7 116.9 14.7% 14.9% 120.0 0.0% 50.0
Slide 36: Free cash-flow generation and leverage
Free cash-flow generation and leverage Free cash-flow1 (in € millions) Net Debt (in € millions) and Leverage (x)2 1.43x +17.9% 1.09x 2,267.4 264.5 1,611.6 224.3 Q1 2015 Q1 2016 Dec 31, 2015 Mar 31, 2016 _ Increased free cash-flow generation, as a _ Leverage increase driven by the acquisition © 2016
Slide 37: Key Performance Indicators
Key Performance Indicators Q1 2016 Q1 2015 % Change Air TA Booking Industry 0.8% 4.3% - Change (%)1,2 Amadeus Air TA Bookings (in m)2 141.2 137.9 2.4% Passengers Boarded (PB) (in m) 269.5 165.3 63.0% Revenue 1,120.0 989.4 13.2% EBITDA 448.8 389.6 15.2% © 2016 Amadeus IT Group SA Adjusted profit3 245
Slide 38: Shareholding Structure
* Shareholding Structure Treasury shares (1), Board Members, 0.50% 0.09% Free Float (2), © 2016 Amadeus IT Group SA 99.41% 1. Political and economical rights of these shares are suspended to the extent they form part of the treasury stock. 2. Within free-float, largest reported institutional shareho
Slide 39: Thank you
confidential RESTRICTED Thank you © 2016 Amadeus IT Group SA You can follow us on: AmadeusITGroup investors.amadeus.com