Amadeus It Group Sa Class A · BME:AMS
Amadeus It Group Sa Class A — Investor Presentation (February 2015)
44 slides from Amadeus It Group Sa Class A's investor presentation, February 2015
Slide 1: Amadeus Introductory Presentation February 2015
Amadeus Introductory Presentation February 2015 © 2014 Amadeus IT Group SA Amadeus Investor Page 1 Relations
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 Air TA Booking industry estimated market Passenger Service System (PSS) share estimated market share by passengers Amadeus 41% Amadeus 31% Others 59% Others 69% _ Leading market share in high growth emerging _ Unique new-generation solution © 2014 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) 3,418 1,306 2,594 976 1,817 1,357 © 2014 Amadeus IT Group SA 553 382 2000 2004 2010 2014 2000 2004 2010 2014 % Margin 28.2% 30.4% 37.6% 38.2% 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, with significant barriers to entry 2. Global leader in the IT Solutions business, an established and high growth business with large revenue visibility 3. Sustainable competitive advantages and barriers to entry dr
Slide 8: Global leader in the Distribution business
1 Global leader in the Distribution business © 2014 Amadeus IT Group SA
Slide 9: Global leader in Distribution, having steadily gained market share with travel agencies
Global leader in Distribution, having steadily gained market share with travel agencies … Estimated 44% Amadeus Travelport Sabre air market share 42% gain (2000-2014) 40% +15 pp 40% 41% 38% 36% 34% 32% 30% 30% -2 pp 28% 28% 26% -15 pp © 2014 Amadeus IT Group SA 26% 25% 24% 22% Leading GDS globally W
Slide 10: Superior offering positions us for further profitable market share gains
…thanks to our superior offering which positions us well for further and profitable market share gains … What do travel Amadeus comprehensive agencies need? value proposition The balancing item Price (Incentives paid) Amadeus superior offering = lower economic incentives Multi year content agreement
Slide 11: Market share is critical, generating network effects and barriers to entry
… 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 Revenues in IT Amadeus: Amadeus: 40% Over 700 market Airlines, share 250,000 globally of hotels + t
Slide 12: The 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) (€) €3.95 €3.94 €4.02 €3.73 €3.78 €3.78 €3.74 €3.82 €3.81 €3.58 526 503 464 477 428 431 442 413 373 391 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Val
Slide 13: Key drivers for Distribution showing favourable trends
Key drivers for Distribution showing favourable trends: global GDP growth and disintermediation Travel Booking Competition demand Process Dynamics Traffic Growth Disintermediation Market Share Global GDP Growth Air traffic increase GDS Market Amadeus increase bookings increase •Historical ratio •Dir
Slide 14: Air travel grows at a multiplier to Global GDP growth
Air travel grows at a multiplier to Global GDP growth 3,600 CAGR 79-8: CAGR 91-93 CAGR 00-02 CAGR 07-09 (0.1)% (0.7)% (1.0)% (3.0)% 3,200 Pax traffic Base 1970 2,800 CAGR 03-07: 7.8% Passengers (millions) / World GDP 1.3-1.6x 2,400 CAGR 94-00: 5.2% ratio CAGR 80s: 4.5% 2,000 World GDP 1,600 Base 197
Slide 15: Disintermediation exists, but is slowing down
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 in • Consumer behavior increasingly difficult to more than 200 markets change _ Hi
Slide 16: Global leader in the IT Solutions business
2 Global leader in the IT Solutions business © 2014 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 with significant visibility
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 _ IT Solutions play a vital role in estimate based on High growth with existing contract backlog signed contracts (1) op
Slide 20: Investment in R&D
3 Investment in R&D © 2014 Amadeus IT Group SA
Slide 21: Strong technology focus and leadership supported by on-going investment
Strong technology focus and leadership supported by on-going investment R&D expenditure (€ million, incl. capitalised R&D) 568 525 Total accumulated 2004-2014: c. €3.5bn. 437 CAGR 2004- 2014: +13.8% 349 364 R&D % of Revenue _ Sustainable 228 236 257 competitive 217 191 advantages 156 10.9% 13.5% 13.
Slide 22: Sustainable competitive advantages supported by operational capabilities
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 • Redundancy in all critical areas: 1.9+ billion <0.5 se
Slide 23: Successful business model
4 Successful business model © 2014 Amadeus IT Group SA
Slide 24: Our 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 50 Airline Sector operating profit ($ billion) Amadeus EBITDA (€ million) 1,306 1,400 1,189 1,109 1,200 40 1,015 1,039 1,000 882 897 873 30 800 679 616 553 53
Slide 25: Synergistic businesses
5 Synergistic businesses © 2014 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 •Common application software _ Unique in the Commercial industry •Intricate consumer knowledge _ Enhanced product •Cross-selling opportunities to shared customer base o
Slide 27: Financial Performance
6 Financial Performance © 2014 Amadeus IT Group SA
Slide 28: Revenue and EBITDA
Revenue and EBITDA Amadeus has historically delivered strong Revenue and EBITDA growth and increased profitability Revenue (€ million) 3,418 3,104 2,910 2,594 2,707 2,578 2,505 2,322 2,348 2,116 _ Resilient: over 90% 1,817 recurring revenues and 85% transactional 3000 revenues _ Not linked to airlin
Slide 29: Both Distribution and IT Solutions performed strongly
Both Distribution and IT Solutions performed strongly Distribution IT Solutions Revenue (€ million) Revenue (€ million) 963 2,455 2,318 2,201 786 2,079 1,992 709 628 601 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Contribution (€ million) Contribution (€ million) 1,082 651 1,036 © 2014 Amadeus
Slide 30: Strong free cash flow generation and growth
Strong free cash flow generation and growth Enabling significant de-leveraging and increased shareholder remuneration Pre-tax free cash flow(1) (€ million) Net debt / EBITDA(2) 950 860 843 4.6x 829 811 770 779 4.2x 705 3.6x 624 504 2.5x 374 1.8x 1.3x 1.3x 1.0x © 2014 Amadeus IT Group SA 2004 2005 20
Slide 31: Overview of Amadeus' Debt Structure
Overview of Amadeus’ Debt Structure Debt Maturity Profile as of December 31, 2014 (€ million) Bank financing Euro Bond EIB loans _ In December 2014, 30 the company set up a Multi- Currency European Commercial Paper (ECP) 50 programme up to a 750 maximum notional of € 13 500 million. 400 231 15 65 65
Slide 32: Results FY 2014
Results FY 2014 © 2014 Amadeus IT Group SA Amadeus Introductory Presentation 32
Slide 33: Strong execution in Distribution
Strong execution in Distribution Amadeus TA Bookings (in million) Market share(1) +4.6% 525.8 +1.4p.p. +0.7p.p. 502.6 59.2 59.4 +5.2% 40.6% 42.0% 443.4 466.5 40.7% 40.1% 2013 2014 Q4 2013 Q4 2014 FY 2013 FY 2014 Air Bookings Non-air bookings Air TA Booking Industry Growth Amadeus air TA Bookings by
Slide 34: Double-digit growth in IT Solutions
Double-digit growth in IT Solutions Number of Altéa(1) clients in IT Solutions Altéa PB by region (%) Volume growth Weight 133 CESE, NA, 5.1% 0.1% 123 (2) 9 APAC +52.6% LatAm, 11 10.5% Latam +10.0% 124 MEA +4.4% 112 MEA, WE +3.3% 14.5% CESE +1.4% WE, 45.8% 2013 2014 NA n.m. APAC, Contracted airlines
Slide 35: Newmarket, UFIS and i:FAO effects
Newmarket, UFIS and i:FAO effects A B C D A-D B-D C-D Key financial metrics Reported FY 2014 FY 2014 Reported % Change % Change % Change (€ million) FY 2014 (excl. PPA) (excl. M&A) (FY 2013) (FY 2014) (excl. PPA) (excl. M&A) Revenue 3,417.7 3,427.8 3,335.0 3,103.7 10.1% 10.4% 7.5% EBITDA 1,306.0 1,3
Slide 36: Group revenue growth supported by positive Distribution and IT Solutions performances
Group revenue growth supported by positive Distribution and IT Solutions performances Segment Revenue (in € million) Average Booking fee (in € ) Distribution(1) 2,317.8 2,447.7 +5.6% 338.9 334.2 +2.1% 2,113.5 4.02 1,979.0 3.94 2013 2014 2013 2014 Booking revenue Non booking revenue IT Solutions(1) I
Slide 37: Significant contribution growth from our businesses
Significant contribution growth from our businesses Contribution Distribution(1) (in € million) Contribution IT Solutions(1) (in € million) 44.7% 44.1% 70.7% 70.1% 1,035.9 +4.3% 1,080.3 550.7 +13.8% 627.0 2013 2014 2013 2014 Net Indirect fixed costs(2) (in € million) +7.3% 398.0 427.1 © 2014 Amadeus
Slide 38: Solid EBITDA and Adjusted Profit growth
Solid EBITDA and Adjusted Profit growth Breakdown of EBITDA(1) growth (€m) Adj. Profit(1,3) (€m) and Adj. EPS(1,4) (€) % of Revenue 38.4% ( 29.1) 76.2 38.3% +7.8% 680.0 1.80 38.3% 44.4 €1.50 670.0 1.60 660.0 1.40 €1.39 650.0 1.20 1,280.1 640.0 +7.8% 1.00 +7.7% 1,188.7 630.0 667.7 0.80 620.0 0.60 610
Slide 39: Sustained investment in R&D and Capex
Sustained investment in R&D and Capex R&D investment(1,2,3)(in € million) 550.0 Capex(1) (in € million) 30.0% 530.0 510.0 490.0 540.0 250.0% 470.0 450.0 411.2 +2.0% 419.4 25.0% 430.0 +5.3% 527.1 410.0 390.0 200.0% 370.0 61.6 76.3 350.0 20.0% 520.0 330.0 150.0% 310.0 290.0 270.0 250.0 349.6 343.1 15.
Slide 40: Free cash flow generation and leverage
Free cash flow generation and leverage (Including Newmarket, UFIS and i:FAO) Free cash flow(1) (in € million) Net Debt (€ million) and Leverage (x) (2) 1.32x +10.1% 1.01x 1,738.5 596.3 1,210.7 541.7 2013 2014 Dec 31, 2013 Dec 31, 2014 _ © 2014 Amadeus IT Group SA _ Increased free cash flow generatio
Slide 41: Key Performance Indicators
Key Performance Indicators FY2014 FY2014 In € million 2013 % Change (2) Reported(1) exc. M&A (2) Volumes Air TA Booking Industry 3.2% - 2.0% - Change (%) Amadeus Air TA Bookings - (in million) 466.5 443.4 5.2% Passengers Boarded (PB) - (in million) 695.4 615.7 12.9% Financial Results (€ million) Rev
Slide 42: Summary Group Income Statement
Summary Group Income Statement Summary Group Income Statement 2011 2012 2013 2014 Figures in million euros Revenue 2,707 2,910 3,104 3,418 % change 7.5% 6.6% 10.1% Cost of revenue (678) (747) (804) (880) Personnel and related expenses (681) (763) (846) (970) Depreciation and amortization (242) (273)
Slide 43: Shareholding Structure
Shareholding Structure(*) Treasury shares(1) Board of Directors 0.81% 0.11% Free Float(2) 99.08% © 2014 Amadeus IT Group SA 1. Political and economical rights of these shares are suspended to the extent they form part of the treasury stock. 2. Within the company’s Free Float, in accordance with the
Slide 44: Thank you
confidential RESTRICTED Thank you © 2014 Amadeus IT Group SA You can follow us on: AmadeusITGroup investors.amadeus.com
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