Amadeus It Group Sa Class A · BME:AMS

Amadeus It Group Sa Class A — FY2013 Earnings Presentation

31 slides from Amadeus It Group Sa Class A's earnings presentation, Feb 28, 2014

  1. Slide 1: Amadeus FY 2013 Results

    Amadeus FY 2013 Results February 28, 2014 © 2014 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

  3. Slide 3: The year 2013 in review

    The year 2013 in review President & CEO, Mr. Luis Maroto © 2014 Amadeus IT Group SA

  4. Slide 4: Record 2013 results

    Record 2013 results _ 6.6% revenue growth, supported by: • Increased market shares, and • Successful execution of client migrations _ EBITDA growth of 7.2% to €1,188.7 million • EBITDA margin expansion to 38.3% _ Adjusted profit increase of 7.8% to €619.5 million • Adjusted EPS growth of 7.6% to €1.

  5. Slide 5: Solid performance of our two segments

    … supported by the solid performance of our two segments Distribution _ Strong market share gains (+1.5 p.p.), reaching 40.1% market share in 2013 • Supported by growth in most regions, notably in the US thanks to recent contract wins _ Renewed all contracts and added new providers securing the rele

  6. Slide 6: Business Highlights

    Business Highlights President & CEO, Mr. Luis Maroto © 2014 Amadeus IT Group SA

  7. Slide 7: Amadeus' success backed by a resilient industry

    Amadeus’ success is backed by a resilient industry, despite the challenging macro environment … Air Traffic (1) (% Change, year-on-year) FY: 5.2% 5.8% 5.8% 4.9% 4.2% Q1 2013 Q2 2013 Q3 2013 Q4 2013 _ Sustained air traffic growth at 5.2%, stable vs. 2012 © 2014 Amadeus IT Group SA _ Positive trend ob

  8. Slide 8: Consistent delivery and successful execution in both businesses

    … and Amadeus’ consistent delivery and successful execution both in Distribution and in IT Solutions Market share(1) in Distribution Number of Altéa(2) clients in IT Solutions +1.5 p.p. 121 125 12 11 40.1% 38.6% 109 114 2012 2013 2012 2013 Contracted airlines not yet migrated © 2014 Amadeus IT Group

  9. Slide 9: Distribution business: volume growth and sustained pricing

    Distribution business: volume growth and sustained pricing lead to revenue growth Amadeus TA Bookings (in million) Amadeus air TA Bookings by region Volume growth (%) LatAm, Weight (%) +5.3% CESE, 7.6% LaTam +12.5% 10.6% CESE +7.7% WE -0.4% NA, WE, 502.6 12.5% 42.4% NA +38.1% 477.2 MEA +2.4% MEA, 20

  10. Slide 10: IT Solutions outperformance fuelled by migrations and pricing

    Outperformance by IT Solutions, fuelled by migrations and pricing increase Passengers Boarded(1) (in million) Altéa PB by region(2) (%) CESE, +9.2% Volume growth 5.7% LatAm, CESE +12.4% 10.8% LatAm -0.2% WE, 615.7 WE +4.3% MEA, 50.1% 563.8 15.6% MEA -4.4% APAC +57.6% APAC, 2012 2013 17.7% _ Solid gr

  11. Slide 11: Growth accelerating in 2014

    … and with growth accelerating in 2014 Contracted Passengers Boarded (1) Contracted migration pipeline (in million) 2013 - 2015 CAGR (2013-2015): +14.0% _ Southwest Airlines (International part): H1 800 2014 616 _ Korean Air: H2 2014 _ All Nippon Airways (International part): H1 2015 _ Alitalia: H1

  12. Slide 12: Financial Highlights

    Financial Highlights CFO, Mrs. Ana de Pro © 2014 Amadeus IT Group SA

  13. Slide 13: Distribution and IT Solutions volume and revenue growth

    Both Distribution and IT Solutions performed strongly, delivering significant volume and revenue growth Distribution IT Solutions Bookings (in million) PB (in million) 477.2 +5.3% 502.6 +9.2% 615.7 563.8 60.7 59.2 135.8 96.6 416.5 +6.5% 443.4 467.2 +2.7% 479.9 2012 2013 2012 2013 Air Bookings Non-ai

  14. Slide 14: Continued growth in both businesses, sustained margins

    Continued growth in both businesses, with sustained margins Distribution contribution (in € million), IT Solutions contribution (in € million), contribution margin (%) contribution margin (%)(1) 44.6% 44.7% 70.1% 70.1% 982.3 +5.5% 1,035.9 497.1 +10.8% 550.7 2012 2013 2012 2013 Net Indirect fixed cos

  15. Slide 15: Strong growth at EBITDA and Profit level

    Strong growth at EBITDA and Profit level Breakdown of EBITDA(1) growth (€ mm) Adjusted Profit(3) (€ mm) and EPS(4) (€) % of Revenue €1.39 38.1% 38.3% +7.6% ( 27.6) 53.7 €1.30 53.6 +7.8% 619.5 +7.2% 1,188.7 574.8 1,109.0 2012 2013 2012 EBITDA Distribution IT Solutions Net indirect 2013 EBITDA © 2014

  16. Slide 16: Sustained investment in R&D and Capex

    Sustained investment in R&D and Capex R&D investment (in € million) Capex (in € million) % of Revenue % of Revenue 13.2% 14.2% 15.8% 12.0% 411.2 348.9 +17.9% +18.2% 61.6 55.8 489.3 349.6 414.1 293.1 2012 2013 2012 2013 Intangible Assets Property, plant and equipment © 2014 Amadeus IT Group SA _ Cons

  17. Slide 17: Free cash flow generation and deleveraging

    Free cash flow generation and deleveraging Free cash flow(1) (€ mm) Net Debt (€ mm) and Leverage (x) (2) 1.34x -5.9% 1.01x 1,495.2 575.5 541.7 1,210.7 2012 2013 Dec 31, 2012 Dec 31, 2013 © 2014 Amadeus IT Group SA _ Free cash flow generation of €541.7 million in 2013, _ Debt reduction of more than €

  18. Slide 18: 2014 Outlook

    2014 Outlook President & CEO, Mr. Luis Maroto © 2014 Amadeus IT Group SA

  19. Slide 19: The macro outlook is improving but still fragile

    The macro outlook is improving but is still fragile… “Activity is expected to improve World GDP Growth further in 2014 and 2015 on 2013 2014 Change account of recovery in the advanced economies” World Output 3.0% 3.7% 0.7 p.p. _ “Global growth is now projected to be slightly Advanced economies 1.3%

  20. Slide 20: Expectations for 2014

    Amadeus will deliver further growth, taking advantage of improving traffic conditions Expectations for 2014(1) _ Revenue growth Distribution _ Contribution growth Low single-digit growth rate • Lower contribution margin _ Revenue growth IT Solutions _ Contribution growth Low double-digit growth rate

  21. Slide 21: Key Themes in 2014 - Distribution

    Key Themes in 2014 - Distribution _ Strong air traffic growth (6.0% IATA’s estimate) _ Acceleration of air TA booking _ Disintermediation softening with the economic industry growth recovery _ Continued market share gains _ Driven by contribution from Topas migration on the second half of the year a

  22. Slide 22: Key Themes in 2014 – IT Solutions

    Key Themes in 2014 – IT Solutions(1) _ 10-15% PB Growth _Increasing growth in PB and revenue driven by airline migration activity: • 7 scheduled migrations to Altéa in 2014 _ Minimal dilution on pricing (average • 20-25m PB impact in the year IT transactional revenue / PB) • In addition, full year i

  23. Slide 23: Key Themes in 2014 – Newmarket

    Key Themes in 2014 – Newmarket _Amadeus announced the acquisition of Newmarket, a leading provider of cloud-based IT solutions for the hotel industry, in December 2013 _Transaction rationale: • Clear fit in our hotel strategy • Accelerates go-to-market and brings strong customer base • Complementary

  24. Slide 24: Q4 2013 Highlights

    Q4 2013 Highlights President & CEO, Mr. Luis Maroto © 2014 Amadeus IT Group SA

  25. Slide 25: Q4 2013 Highlights: Volumes

    Q4 2013 Highlights: Volumes Distribution bookings (in million) IT Solutions PB (in million) Volume growth Volume growth +5.0% +11.7% 160.3 111.4 117.0 NA: 28.3% APAC: 68.1% 14.4 14.6 LATAM: 13.2% 16.0 CESE: 22.4% 143.3 APAC: 8.4% 3.9 WE: 3.7% CESE: 6.6% 96.8 +6.0% 102.6 +3.4% 144.3 LATAM: -2.0% MEA:

  26. Slide 26: Q4 2013 Highlights: Revenue

    Q4 2013 Highlights: Revenue Group Revenue (€ mm) Distribution / IT Solutions Revenue (€ mm) Distribution +4.7% +9.5% 534 511 Q4 2012 Q4 2013 742 IT Solutions +24.4% 677 207 167 © 2014 Amadeus IT Group SA Q4 2012 Q4 2013 Q4 2012 Q4 2013 _ Group revenue growth of 9.5%, with strong performance of our t

  27. Slide 27: Q4 2013 Highlights: EBITDA and Adjusted Profit, EPS

    Q4 2013 Highlights: EBITDA and Adjusted Profit, EPS EBITDA (€ mm) Adjusted Profit(1) (€ mm) and EPS (2) (€) 32.2% 32.3% €0.24 +9.9% +15.3% €0.21 239.7 218.2 +15.6% 108.3 93.7 Q4 2012 Q4 2013 Q4 2012 Q4 2013 EBITDA EBITDA margin (%) Adjusted Profit EPS (€) © 2014 Amadeus IT Group SA _ Significant gro

  28. Slide 28: Support materials

    Support materials © 2014 Amadeus IT Group SA

  29. Slide 29: Reconciliation of segment reporting

    Reconciliation of segment reporting Reconciliation of Contribution and Operating income (€ million) Reconciliation EBITDA Full year 2013 Full year 2012¹ % Change Figures in million euros Distribution 1,035.9 982.3 5.5% (2) IT Solutions 550.7 497.1 10.8% Contribution 1,586.6 1,479.4 7.2% Indirect cos

  30. Slide 30: Key Performance Indicators

    Key Performance Indicators 2013 2012(1) % Growth Volumes Air TA Booking Industry Growth (%) 2.0% 1.2% Amadeus Air TA Bookings (m) 443.4 416.5 6.5% Passengers Boarded (PB) (m) 615.7 563.8 9.2% Financial Results (€ mm) Revenue 3,103.7 2,910.3 6.6% EBITDA 1,188.7 1,109.0 7.2% © 2014 Amadeus IT Group SA

  31. Slide 31: Thank you

    Thank you © 2014 Amadeus IT Group SA You can follow us on: AmadeusITGroup investors.amadeus.com

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