Amadeus It Group Sa Class A · BME:AMS
Amadeus It Group Sa Class A — Investor Presentation (December 2013)
35 slides from Amadeus It Group Sa Class A's investor presentation, December 2013
Slide 1: Amadeus Introductory presentation December 2013
Strictly private and confidential May 2012 © 2013 Amadeus IT Group SA Amadeus Introductory presentation December 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 eme
Slide 5: A successful transaction processing model
A Successful transaction processing model Distribution Provision of indirect distribution services Travel (travel agency channel) Travel providers Fees for Travel agencies Agency IT Travel providers provide their Travel agencies select Amadeus content to Amadeus, free of cost, for real-time sear
Slide 6: An unparalleled track record
An unparalleled track record Revenue (€ mm) EBITDA (€ mm) 1,108 2,910 1,817 553 1,357 382 © 2013 Amadeus IT Group SA 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% % Margin entity, listed in the capital markets from 1999 unti
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
1 Global leader in Distribution, having steadily gained market share with travel agencies … Estimated 44% Amadeus Travelport Sabre air market share 42% gain (2000-2012) 40% 40% 39% +13 pp 38% 36% 34% 32% 30% 30% 30% +0 pp 28% 26% 26% 26% -14 pp © 2013 Amadeus IT Group SA 24% 22% Leading GDS globally
Slide 9: Superior offering positions us 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 Pr
Slide 10: Market share critical, generating 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 25
Slide 11: Distribution business exhibits strong resilience
1 The Distribution business exhibits strong resilience: sustained volumes and pricing power Amadeus Annual Bookings (m) Resilient Unit Booking Fee (1) (€) €3.78 €3.78 €3.82 €3.81 €3.95 €3.73 €3.74 €3.58 464 477 428 431 442 413 373 391 2005 2006 2007 2008 2009 2010 2011 2012 Value-based pricing: base
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 Consumer behavior increasingly difficult to change content in more than 200 markets
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 F
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: Altéa - Established and high growth business with visibility
2 Amadeus Altéa - Established and high growth business with significant visibility Volumes - Passengers Boarded (mm) Altéa Growth Drivers High visibility with 10-15 year contracts 2015 figure estimate based on Strong Pipeline High growth with existing contract backlog signed contracts (1) IT Solut
Slide 18: Strong technology focus supported by on-going investment
3 Strong technology focus and leadership supported by on-going investment R&D expenditure (€mm, incl. capitalised R&D) Total accumulated 2004-2012: c. €2.4bn 414 349 344 Sustainable 236 257 competitive 217 228 156 191 advantages 14.2% 9.0% 9.3% 8.8% 9.4% 10.6% 13.0% 12.7% Barriers to entry 8.6%
Slide 19: Sustainable competitive advantages supported by 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
Slide 20: Transactional model resilient 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 Amadeus EBITDA(2) (€ mm) 1,108 1,200 35 1,039 1,015 1,000 30 873 882 897 25 800 679 616 20 533 553 6
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 offe
Slide 22: Strong Revenue and EBITDA growth and increased profitability
6 Amadeus has historically delivered strong Revenue and EBITDA growth and increased profitability Revenue (€mm) Post-IFRIC, excl. Opodo 2,910 2,578 2,594 2,707 2,505 2,461 2,322 2,348 1,817 2,116 Resilient: over 90% recurring revenues and 85% transactional 3000 revenues 2500 210 Not linked to ai
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% n.a 17.7% 4.4% 709.4 2,201 2,079 628 1,931 1,992 1,836 601 500 511 (1) 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Contribution Contribution Contributi
Slide 24: Strong free cash flow generation and deleveraging
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: 1.0 – 1.5x Net Debt / EBITDA 860 4.6x 829 811 770 779 4.2x (3) 705 3.6x 624 504 2.5x 374 1.75x 1.3
Slide 25: Overview of Amadeus' Debt Structure
6 Overview of Amadeus’ Debt Structure Debt Maturity Profile as of November 2013 (€mm) 12.5 EIB Loans Euro Bond Bank Financing In May 2011, Amadeus signed an agreement with a group of international banks to refinance 750 its existing debt through a new senior unsecured credit facility 40 Covenant
Slide 26: Current Trading
Current Trading © 2013 Amadeus IT Group SA
Slide 27: Resilient travel industry despite challenging macro environment
Resilient travel industry despite continued challenging macro environment Air Traffic (1) (% Growth, year-on-year) Distribution Industry (% Change, year-on-year) FY: 5.3% Sep YTD: 5.0% Sep YTD: 1.3% 0 0 0 0 0 0 0 4.6% 0 0 7.4% 2.9% 2.6% 0 5.6% 5.8% 0 4.9% 0 4.2% 3.9% 4.2% 0.1% 0.1% 0 (0.5%) 0 (1.3%)
Slide 28: Key Performance Indicators
Key Performance Indicators Sep YTD 2012 (1) Sep YTD 2013 % Change Volumes GDS Industry Growth (%) 2.4% 1.3% Amadeus Air Bookings (m) 319.7 340.8 6.6% Passengers Boarded (PB) (m) 420.4 455.5 8.4% Financial Results (€mm) Revenue 2,233.1 2,362.0 5.8% EBITDA 890.8 948.9 6.5% Adjusted (2) profit 481.1 51
Slide 29: Key Performance Indicators by region
Key Performance Indicators by region Sep YTD 2013 Amadeus Air bookings by region Sep YTD 2013 Altéa PB(1) by region % Volume % Volume Growth Growth(3) LatAm, NA, 12.6% 10.9% WE, 42.4% WE (0.3%) WE 4.5% WE, 51.1% LatAm, 7.5% CESE 8.0% APAC, 16.1% CESE 9.6% MEA 1.6% APAC, MEA (3.7%) 14.2% APAC 6.6% AP
Slide 30: Group revenue growth supported by Distribution and IT Solutions
Group revenue growth supported by both Distribution and IT Solutions Group Revenue (€ mm) Distribution / IT Solutions Revenue (€ mm) Distribution 5.5% 1,690.5 1,783.6 5.8% 2,362.0 600 Sep 2012YTD Sep 2013 YTD 2,233.1 IT590 Solutions 580 6.6% 570 560 550 540 530 520 510 500 490 480 578.4 470 460 542.
Slide 31: Strong growth at EBITDA and Profit level
Strong growth at EBITDA and Profit level EBITDA (1) (€ mm) Adjusted Profit (2) (€ mm) and EPS (3) (€) Adjusted EPS 6.1% €1.15 6.5% 948.9 €1.08 890.8 511.2 6.3% 481.1 39.9% 40.2% Sep 2012 YTD Sep 2013 YTD Sep 2012 YTD Sep 2013 YTD EBITDA EBITDA margin (%) Adjusted Profit Significant growth in our E
Slide 32: Cash flow generation and deleveraging
Cash flow generation and deleveraging Cash flow(1) (€ mm) Net Debt to LTM EBITDA(2) (x) (5.4%) 1.34x 1.10x 1,495.2 487.2 461.1 1,287.5 Sep 2012 YTD Sep 2013 YTD Dec 31, 2012 Sep 30, 2013 Cash flow generation of €461.1 million in the first nine months of 2013, down 5.4% vs. previous year, mainly du
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 Malta Pension Air France Finance Investments(1) 5.04% 4.00% Treasury shares(2) 0.66% Board of Directors 0.06% Free Float(3) 90.23% 1. Malta Pension Investments is an independent and unrelated company to Deutsche Lufthansa AG and its group of companies. It forms part of a group
Slide 35: Amadeus - Your technology partner
aAMaDEUS Your technology partner © 2013 Amadeus IT Group SA
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