Amadeus It Group Sa Class A · BME:AMS

Amadeus It Group Sa Class A — Investor Presentation (September 2011)

30 slides from Amadeus It Group Sa Class A's investor presentation, September 2011

  1. Slide 1: Amadeus Introductory presentation

    Brighter, Bolder, Better Strictly private and confidential September 2011 Amadeus Introductory presentation © 2010 Amadeus IT Group SA

  2. Slide 2: Disclaimer

    26 97 169 Disclaimer These materials are being communicated only to persons who have professional experience in matters relating to investments and to persons 192 to whom it may be lawful to communicate them (all such persons being referred to as “relevant persons”). These materials are only directe

  3. Slide 3: Amadeus, the leading technology provider for the travel industry

    26 97 169 Amadeus, the leading technology provider for the travel 192 industry 210 233 Travel providers Travel Travel agencies buyers 140 Airlines 178 Consumers/ Distribution General 214 Hotels Provision of indirect distribution services public Online and offline travel Railway operators agencies Co

  4. Slide 4: Global leader in our two business lines

    26 97 169 Global leader in our two business lines 192 210 233 Global Distribution System (GDS) Passenger Service System (PSS) estimated 2010 market share estimated market share by passengers 2010 140 178 Amadeus Amadeus #1 #1 214 37% 30% 222 Others Others 63% 74% 231 247 56 87 128 Technology focus &

  5. Slide 5: A Successful transaction processing model

    26 97 169 A Successful transaction processing model 192 210 Distribution 233 Provision of indirect distribution services Travel (travel agency channel) Travel 140 providers agencies Fees for Travel Agency IT 178  Travel providers provide their  Travel agencies select Amadeus 214 content to Amadeus

  6. Slide 6: An unparalleled track record

    26 97 169 An unparalleled track record 192 210 Revenue(1) (€ mm) EBITDA(1) (€ mm) 233 140 178 214 1,015 2,683 222 231 247 1,817 56 87 553 128 1,357 382 0 108 155 192 192 2000A 2004A 2010A 2000A 2004A 2010A 192 % Margin 28.2% 30.4% 37.6% 95 95 Note: 2000 and 2004 refer to Amadeus predecessor group en

  7. Slide 7: Amadeus key investment highlights

    26 97 169 Amadeus key investment highlights 192 210 233 1 Global leader in a robust Distribu0on business, with significant barriers to entry 140 178 2 Global leader in the IT Solu0ons business, a established and high growth 214 business with large revenue visibility 222 231 3 Successful business mode

  8. Slide 8: Global leader in Distribution, having steadily gained market share with travel agencies

    26 97 169 1 Global leader in Distribution, having steadily gained 192 market share with travel agencies … 210 233 44% Amadeus Travelport Sabre Estimated 140 42% air market share 40% gain (2000-2010) 178 40% 214 38% 37% +11 pp 222 36% 231 247 34% 56 32% 87 30% 30% 30% +0 pp 128 28% 28% -12 pp 0 26% 2

  9. Slide 9: Superior offering positions us for further market share gains

    26 97 169 1 …thanks to our superior offering which positions us well 192 for further and profitable market share gains … 210 233 What do travel agencies need? Amadeus comprehensive value proposition 140 178  Mul$ year content agreements 214 Content  Wide breadth of global and local content 222 231

  10. Slide 10: Market share critical, generating network effects and barriers to entry

    26 97 169 1 … in an industry where market share is critical, 192 generating powerful network effects and barriers to entry 210 233 More travel More attractive providers on to travel 140 the platform agencies 178 214 More More 222 investment Amadeus: Amadeus: revenues in IT Over 130,000 231 Over 700

  11. Slide 11: The Distribution business exhibits strong resilience: sustained volumes and pricing power

    26 97 169 1 The Distribution business exhibits strong resilience: 192 sustained volumes and pricing power 210 233 Amadeus Annual Bookings (m) Resilient Unit Booking Fee (1) (€) €3.82 140 442 €3.58 €3.73 €3.78 €3.78 €3.74 428 431 178 413 391 214 373 222 231 247 2005 2006 2007 2008 2009 2010 56 87 Val

  12. Slide 12: Key Drivers for the GDS Business showing favourable trends

    26 97 169 1 Key Drivers for the GDS Business showing favourable 192 trends: Global GDP Growth and Disintermediation 210 233 Booking Travel Demand Competition Dynamics 140 Process 178 214 Traffic Growth Disintermediation Market Share 222 231 Amadeus Global GDP Air Traffic GDS Market Bookings 247 Grow

  13. Slide 13: Air travel grows at a multiplier to Global GDP growth

    26 97 169 1 Air travel grows at a multiplier to Global GDP growth 192 210 233 2,800 140 CAGR CAGR CAGR CAGR CAGR 79-81: 91-93: 00-02: 03-07: 07-09 178 2,400 (0.1)% (0.7)% (1.0)% 7.8% (3.0)% Pax traffic 214 Base 1970 RPKs (Revenue passenger kilometres) 2,000 222 CAGR 94-00: 5.2% 1.3-1.6x ratio 231 CA

  14. Slide 14: Disintermediation risk slowing down

    26 97 169 1 Disintermediation risk slowing down 192 Disintermediation rate slowing down The GDS Value Proposition 210 233  Significant shi\ to direct channel already deployed:  Global reach: airlines can distribute their content  Consumer behavior increasingly difficult to change in more than 200 ma

  15. Slide 15: Unique IT Solutions offering

    26 97 169 2 Unique IT Solutions offering A unique vision, from booking to boarding 192 210 233 Altéa Reservation Altéa Inventory Altéa Departure Control 140 178 214 222  Customer profiles  Inventory control  Check-in 231  Availability  Schedule management  Boarding pass issuance 247  Bookings

  16. Slide 16: Amadeus Altéa – A unique community based platform

    26 97 169 2 Amadeus Altéa – A unique community based platform offering 192 significant advantages both to airlines and Amadeus 210 233 From Numerous Legacy PSS… … to Amadeus Community PSS 140 Providers of System Outsourcing and Application Hosting Core systems: 4,000 man-years 178 Gaps and adaptatio

  17. Slide 17: Amadeus Altéa - Established and high growth business with significant visibility

    26 97 169 2 Amadeus Altéa - Established and high growth business 192 with significant visibility 210 233 Volumes - Passengers Boarded (mm) Altéa Growth Drivers 140 2014 figure High visibility with 10-15 year contracts Strong Pipeline 178 estimate based on High growth with existing contract backlog s

  18. Slide 18: Business model resilient, profitability not correlated with airline industry

    26 97 169 3 Our business model has shown strong resilience with 192 profitability not correlated with that of the airline industry 210 233 40 1,200 Airline sector operating profit(1) (€ Bn) Amadeus EBITDA(2) (€ mm) 1,015 140 35 1,000 178 873 882 897 214 30 800 679 25 222 616 231 533 553 600 20 382 4

  19. Slide 19: Strong technology focus and leadership supported by ongoing investment

    26 97 169 3 Strong technology focus and leadership supported by 192 ongoing investment 210 233 R&D spend (€mm, incl. capitalised R&D) 140 Total accumulated 2004-2010: c. €1.6bn 349 178 % –10: 14.4 214 CAGR 04 257 228 236 217 191 222 156 231 247 56 2004 (1) 2005 2006 2007 2008 2009 2010 87 % of Rev (

  20. Slide 20: Only transaction processor with synergistic businesses

    26 97 169 4 Only transaction processor with synergistic businesses 192 210 233 140 Technological  Shared platform 178  Shared in-house data centre 214  Shared network  Common application software 222 231 Commercial 247 Distribution  Cross-selling to shared customer base IT Solutions  Shared gl

  21. Slide 21: Strong Revenue and EBITDA growth and increased profitability since 2004

    26 97 169 5 Amadeus has delivered strong Revenue and EBITDA 192 growth and increased profitability since 2004 210 233 Revenue (€mm) 140 178 CAGR 04–10: 6. 7%  Resilient: over 90% 214 2,578 2,683 recurring revenues and 2,322 2,505 2,425 2,116 85% transac$onal 222 1,817 revenues 231 247  Not linked

  22. Slide 22: Both Distribution and IT Solutions have performed strongly

    26 97 169 5 Both Distribution and IT Solutions have performed strongly 192 210 Distribution IT Solutions 233 Revenue (0.3%) (4.9%) 8.5% 9.6%) 9.6%) 9.8% Revenue 1,992 140 1,937 1,931 601 1,836 178 500 511 214 456 222 231 (2) 247 2007 2008 2009 2010 2007 2008 2009 2010 Contribution Contribution Pre-I

  23. Slide 23: Strong free cash flow generation and significant de-leveraging

    26 97 169 5 Strong free cash flow generation and growth, leading to 192 significant de-leveraging 210 233 Pre-tax free cash flow(1) (€mm) Net debt / EBITDA(2) 140 178 214 829 222 770 779 705 (3) 5.4x 231 625 247 624 4.6x 56 504 4.2x 87 128 374 3.6x 0 2.5x 108 1.8x 155 192 192 2004 2005 2006 2007 200

  24. Slide 24: Overview of Amadeus Debt Structure

    26 97 169 5 Overview of Amadeus Debt Structure 192 210 Debt Maturity Profile Post Refinancing Signed in May 2011 (€mm) 233 140 Bridge Loan  In May 2011, Amadeus Euro Bond signed an agreement with 178 a group of international 214 Bank Financing banks to refinance its 450 750 existing debt through a

  25. Slide 25: Current Trading

    26 97 169 192 210 233 140 178 214 222 231 Current Trading 247 56 87 128 0 108 155 192 192 192 95 95 95 25

  26. Slide 26: Recent Industry Performance

    26 97 169 Recent Industry Performance 192 210 Air Traffic (1,2) (% Change, year-on-year) GDS bookings (% Change, year-on-year) 233 9.6% 9.5% YTD(2): 6.5% 140 8.6% 8.7% 7.7% 7.7% 7.6% 178 7.1% 214 5.4% 4.4% YTD: 1.8% 222 231 1.6% 1.9% 247 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 56 Q1'10 Q2' 10 Q3'

  27. Slide 27: Key Performance Indicators

    26 97 169 Key Performance Indicators 192 June YTD 2010(1) June YTD 2011(1) % Growth 210 233 Volumes Total GDS Industry 140 Growth (%) 9.6% 1.8% 178 Total Amadeus Air TA 214 Bookings (m) 201.0 210.0 4.5% 222 Passengers Boarded 153.9 203.9 32.5% (PB) (m) 231 247 Financial Results (2) Revenue from 56 c

  28. Slide 28: H1 2011 Financial Review

    26 97 169 H1 2011 Financial Review: 192 Sustained revenue growth, profitability levels in line with expectations 210 233 Revenue by Business Line (€ mm) Contribution by Business Line (2) (€ mm) 73.5% 140 +4.1% 68.7% 178 1,079.6 48.4% 48.2% 1,037.0 214 +3.5% 520.1 Distribution +3.2% 502.4 222 IT Solu

  29. Slide 29: Group EBITDA

    26 97 169 Group EBITDA(1) 192 210 Contribution to EBITDA growth in H1 2011 (€ mm) 233 6.0% 140 178 21.5 17.7 214 (6.7) 222 231 247 539.5 572.1 56 87 128 (1) (1) H1 2010 EBITDA Contri buti on Ma rgi n Contri buti on Ma rgi n IT Indi rect cos ts a nd H1 2011 EBITDA 0 Di s tri buti on Sol uti ons ca pi

  30. Slide 30: Brighter, Bolder, Better

    26 97 169 192 210 233 140 178 214 222 231 247 56 Brighter, Bolder, Better 87 128 0 108 155 © 2010 Amadeus IT Group SA 192 192 192 95 95 95 30

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