Amadeus It Group Sa Class A · BME:AMS
Amadeus It Group Sa Class A — Investor Presentation (February 2013)
35 slides from Amadeus It Group Sa Class A's investor presentation, February 2013
Slide 1: Amadeus Introductory presentation
Strictly private and confidential May 2012 © 2010 Amadeus IT Group SA Amadeus Introductory presentation February 2013
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 2012 market share estimated market share by passengers 2012 Amadeus Amadeus #1 #1 39% 25% Others Others 61% 75% Leading market share in high growth Unique new-generation solution emergin
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) 2: ’ 04-’1 ’12: R CAG +9.1% R ‘04- 1,108 CAG +6.1% 4: 2,910 ‘ 00-’0 R 4: CAG +7.6% ‘00-’0 R CAG +9.7% 1,817 553 1,357 382 2000 2004 2012(1) 2000 2004 2012 (1) Note: 2000 and 2004 figures refer to the Amadeus predecessor group 28.2% 30.4% 38.1
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 Sustainable competitive advantages and barriers to entry driven
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% Estimated Amadeus Travelport Sabre air market share 42% gain (2000-2012) 40% 40% 39% +13 pp 38% 36% 34% 32% 30% 30% +0 pp 30% 28% 26% 26% -14 pp 26% 24% 22% 2000 2001 2002 2003 2004 2005 2006 2007 2008 20
Slide 9: …thanks to our superior offering which positions us well for further 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: …generating powerful 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 Amadeus: investment Amadeus: revenues Around 39% in IT Over 700 market share Airlines, globally of travel 90
Slide 11: The Distribution business exhibits strong resilience: sustained volumes and pricing power
1 The Distribution business exhibits strong resilience: sustained volumes and pricing power Amadeus Annual Bookings (m) Resilient Unit Booking Fee (1) (€) €3.82 €3.81 €3.95 €3.73 €3.78 €3.78 €3.74 464 477 €3.58 428 431 442 413 373 391 2005 2006 2007 2008 2009 2010 2011 2012 2005 2006 2007 2008 2009
Slide 12: Key drivers for Distribution showing favourable trends
1 Key drivers for Distribution 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 bet
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 Pax traffic 2,400 (0.1)% (0.7)% (1.0)% 7.8% (3.0)% Base 1970 RPKs (Revenue passenger kilometres) 2,000 1.3-1.6x ratio CAGR 94-00: 5.2% CAGR 80s: 4.5% 1,600 World GDP Base 1970 1,2
Slide 14: Disintermediation exists, but is slowing down
1 Disintermediation exists, but is 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
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 2015 figure High visibility with 10-15 year contracts estimate based on Strong Pipeline High growth with existing contract backlog signed contracts (1) IT Solutio
Slide 18: 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 2004-2012: c. €2.4bn 414 2: +13.0% CAGR 04–1 349 344 Sustainable 217 228 236 257 competitive 191 advantages 156 13.0% 12.7% 14.2% 9.0% 9.3% 8.8% 9.4% 10.6% Barriers
Slide 19: Sustainable competitive advantages and barriers to entry supported by our operational capabilities
3 Sustainable competitive advantages and barriers to entry 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 <0.5 sec 1.6+ billion 3.7+ million Redundancy in all cri
Slide 20: Our transactional business model shows strong resilience to the economic cycle
4 Our transactional business model shows strong resilience to the economic cycle: profitability not correlated with that of the airline industry $ Bn € mm Airline sector operating profit(1) ($ Bn) 40 1,108 1,200 Amadeus EBITDA(2) (€ mm) 1,015 1,039 35 1,000 873 882 897 30 800 679 25 616 533 553 600
Slide 21: Only transaction processor with synergistic businesses
5 Only transaction processor with synergistic businesses Highly synergistic Distribution and IT Solutions businesses Shared in-house data centre Technological Shared platform and network Common application software Unique in the industry Enhanced product Intricate consumer knowledge offering at low
Slide 22: Amadeus has historically delivered strong Revenue and EBITDA growth
6 Amadeus has historically delivered strong Revenue and EBITDA growth and increased profitability Revenue (€mm) Post-IFRIC, excl. Opodo +7.4% 6.3% G R 09–12: CAG R 04–09: + CA 2,910 2,707 2,578 2,505 2,461 2,594 2,322 2,348 2,116 1,817 Resilient: over 90% recurring revenues 3000 and 85% transactiona
Slide 23: Both Distribution and IT Solutions have performed strongly
6 Both Distribution and IT Solutions have performed strongly Distribution IT Solutions Revenue Revenue 13.0% (0.3%) (4.9%) 8.5% 4.4% 5.8% 9.6% 2.2% 17.7% 4.4% 709.4 2,201 2,079 628 1,931 1,992 601 1,836 500 511 2008 2009 2010 2011 2012 2008 2009 (1) 2010 2011 2012 Contribution Contribution Contribut
Slide 24: Strong free cash flow generation and growth, leading to significant de-leveraging
6 Strong free cash flow generation and growth, leading to significant de-leveraging and increased shareholder remuneration Pre-tax free cash flow(1) (€mm) Net debt / EBITDA(2) Target capital structure: 5.4x 11.0% 1.0 – 1.5x Net Debt / EBITDA R 04–12: CAG 860 829 811 4.6x 770 779 (3) 4.2x 705 624 3.6
Slide 25: Overview of Amadeus’ Debt Structure
6 Overview of Amadeus’ Debt Structure Debt Maturity Profile as of December 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 1
Slide 26: Current Trading
Current Trading AMADEUS Your technology partner
Slide 27: Resilient and high growth travel industry; weak GDS industry in 2012
Resilient and high growth travel industry; weak GDS industry in 2012 driven by challenging macro environment and cyclical issues Air Traffic (1) (% Growth, year-on-year) GDS bookings (% Growth, year-on-year) FY: 5.9% YTD: 5.3% FY: 2.2% YTD: 1.2% 7.7% 4.6% 7.4% 5.4% 5.6% 3.3% 5.3% 4.4% 4.2% 3.9% 1.9%
Slide 28: Key Performance Indicators
Key Performance Indicators FY 2012(1) FY 2011(1) % Change Volumes GDS Industry Growth (%) 1.2% 2.2% Amadeus Air Bookings (m) 416.5 402.4 3.5% Passengers Boarded (PB) 563.8 439.1 28.4% (m) Financial Results (€mm) Revenue 2,910.3 2,707.4 7.5% EBITDA 1,107.7 1,039.0 6.6% Adjusted (2) profit from 18.0%
Slide 29: Key Performance Indicators by region
Key Performance Indicators by region 2012 Amadeus Air bookings by region 2012 Altéa PB by region(1) % Volume Growth LatAm, NA, 9.3% 11.9% % Volume Growth WE, 45.3% WE (1.0%) LatAm, 7.5% WE, 52.4% WE 34.4% APAC, CESE 7.5% 12.3% CESE 5.9% APAC, MEA 13.2% 14.0% MEA 14.4% APAC 1.8% MEA, 17.9% APAC 117.8
Slide 30: Both Distribution and IT Solutions have performed strongly
Both Distribution and IT Solutions have performed strongly Distribution IT Solutions Revenue +5.8% Revenue 2,101.0 +13.0% 709.4 2,079.4 628.0 750 2,000 310.8 315.4 700 70.6 650 600 550 63.9 119.6 1,500 500 133.8 +6.6% 450 400 1,000 1,768.6 1,885.6 350 +20.7% 300 250 430.3 519.2 500 200 150 100 50 0
Slide 31: Resulting in strong growth at EBITDA and Profit level
Resulting in strong growth at EBITDA and Profit level EBITDA (1) (€ mm) Adjusted Profit (2) (€ mm) and EPS (3) (€) +6.6% 1,107.7 1,039.0 +18.0% 575.1 487.2 38.4% 38.1% €1.30 €1.09 +18.7% 2011 2012 2011 2012 EBITDA EBITDA margin (%) Adjusted Profit EPS (€) Significant growth in our Group EBITDA Signi
Slide 32: With strong cash flow generation and deleveraging
With strong cash flow generation and deleveraging Cash flow(1) (€ mm) Net Debt to LTM EBITDA(2) +18.0% 575.5 487.5 1.75x 1.34x 2011 2012 Dec - 2011 Dec - 2012 Free cash flow generation of €575.5 million in 2012, significantly higher than in 2011, mainly due to: Higher EBITDA and important inflows fr
Slide 33: Summary Group Income Statement
Summary Group Income Statement Summary group income statement (Figures in milion euros) 2010 2011 2012 Revenue 2,594 2,707 2,910 % Change 10.5% 4.4% 7.5% Cost of revenue (653) (678) (747) Personnel an related expenses (640) (681) (764) Depreciation and amortization (342) (242) (273) Other operating
Slide 34: Shareholder Structure
Shareholder Structure Iberia Líneas Aéreas Air France Finance de , España, S.A. (1), Board of Directors, 5.04% 0.84% 0.09% Malta Pension Treasury shares (2), Investments (3), 0.80% 4.00% Free Float, 89.23% (1) Iberia has carried out a financial derivative transaction ("collar") over its total partic
Slide 35: Brighter, Bolder, Better
Brighter, Bolder, Better © 2012 Amadeus IT Group SA 35
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