Amadeus It Group Sa Class A · BME:AMS
Amadeus It Group Sa Class A — FY2017 Earnings Presentation
19 slides from Amadeus It Group Sa Class A's earnings presentation, Feb 28, 2018
Slide 1: Amadeus 2017 Results
Feb 28, 2018 Amadeus 2017 Results © 2018 Amadeus IT Holding and its affiliates and subsidiaries
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
Slide 3: Operating Review
Luis Maroto Operating Review President and CEO © 2018 Amadeus IT Holding and its affiliates and subsidiaries
Slide 4: 2017 - Profitable growth
2017 - Profitable growth FY 2017 _ Revenue +8.5% 4,853 • Strong operating performance In € millions • Navitaire acquisition effect (late Jan. ‘16) • Negative FX impact _ EBITDA +9.7% • Positive FX impact • Excluding FX: high single-digit revenue/EBITDA growth rate © 2018 Amadeus IT Holding and its a
Slide 5: Recent business highlights
Recent business highlights Airline Distribution Airline IT _ We renewed / signed 26 content agreements in the _ PSS new signatures included Germania, Germania Swiss, quarter, including Delta Air Lines and El Al - a total of 55 Norwegian Air Argentina and Flybe - Europe’s largest regional in 2017 air
Slide 6: Distribution
Distribution Amadeus TA bookings (in millions) Amadeus TA air bookings by region +6.2% 632.3 LatAm, 595.3 CESE, 6.6% WE, Volume growth (%) 64.0 WE +2.0% 36.2% 8.5% 60.4 Weight (%) APAC +11.4% MEA, NA +9.0% 12.2% +6.3% MEA +5.1% 534.9 568.4 CESE +7.9% NA, 17.4% APAC, LatAm +10.0% 19.1% WE = Western E
Slide 7: IT Solutions
IT Solutions Passengers Boarded1 (in millions) Amadeus PB1 by region +19.8% 1,656.5 CESE, MEA, 5.4% WE, 261.4 WE +8.7% Volume growth (%) 7.7% 1,382.5 36.9% Weight (%) 86.1 APAC +17.3% LatAm, 9.0% NA +171.9% NA, +7.6%2 1,395.1 LatAm +10.5% 10.7% 1,296.3 MEA +6.2% CESE +24.5% APAC, 30.4% WE = Western
Slide 8: Financial highlights
CFO Ana de Pro Financial highlights ©©2016 AmadeusITITGroup 2017Amadeus and Holding its its and and affiliates affiliates and subsidiaries subsidiaries
Slide 9: Revenue growth by segment
Revenue growth by segment _ Group revenue expanded by 8.5%, resulting from the positive evolutions of Distribution and IT Solutions, the Group revenue (in € millions) consolidation of Navitaire and a negative FX impact +8.5% _ Distribution: • 6.9% booking revenue increase: volume growth and higher a
Slide 10: Contribution by segment
Contribution by segment Contribution by segment (in € millions) Distribution IT Solutions 68.6% _ Distribution: +6.8% contribution growth, 41.8% 41.6% 67.2% resulting from revenue increase and +13.1% margin contraction (impacted by a higher +6.8% unitary distribution cost due to competitive pressure
Slide 11: EBITDA and Adjusted EPS growth
EBITDA and Adjusted EPS growth EBITDA (in € millions) Adj. Profit1 (in € millions) & Adj. EPS2 (€) (54.3) 38.4% 1300.0 3.00 €2.55 1290.0 1280.0 136.3 1270.0 +22.3% 1260.0 1250.0 1240.0 1230.0 1220.0 1210.0 1200.0 1190.0 1180.0 38.0% €2.08 1170.0 83.0 2.50 1160.0 1150.0 1140.0 1130.0 1120.0 1110.0 11
Slide 12: Investment in R&D and Capex
Investment in R&D and Capex R&D investment1 (in € millions) Capex (in € millions) 70 0.0 612.1 68 0.0 595.1 +2.9 % 66 0.0 64 0.0 62 0.0 744.2 60 0.0 +5.3% 105.1 116.5 58 0.0 706.5 56 0.0 770.0 54 0.0 750.0 52 0.0 730.0 50 0.0 710.0 48 0.0 690.0 46 0.0 670.0 44 0.0 650.0 42 0.0 630.0 40 0.0 610.0 38
Slide 13: Free cash flow generation and leverage
Free cash flow generation and leverage Free cash flow1 (in € millions) Net debt (in € millions) and leverage (x)2 +13.1% 1.14x 1.12x 917.6 811.4 2,083.3 1,957.5 © 2018 Amadeus IT Holding and its affiliates and subsidiaries 2016 2017 Dec 31, 2016 Dec 31, 2017 _ Increased free cash flow generation, as
Slide 14: Outlook
Outlook © 2016 Amadeus IT Group and its affiliates and subsidiaries © 2018 Amadeus IT Holding and its affiliates and subsidiaries
Slide 15: 2017 Restatement for 2018 accounting changes
2017 Restatement for 2018 accounting changes From 2018: _ IFRS 15: TA IT revenue to be recognized in Distribution operating costs _ IFRS 9: new impairment methodology for bad debt _ Building and facilities expense: to be accounted for within Indirect costs (previously in Distribution, IT Solutions a
Slide 16: 2018 Outlook
2018 Outlook1 Excluding FX considerations Revenue _ Mid to high single-digit growth rate EBITDA _ High single-digit growth rate _ Capex: 12-15% of revenue Free cash flow _ Free cash flow generation: €950-1000 million © 2018 Amadeus IT Holding and its affiliates and subsidiaries Capital _ 1.0 – 1.5x
Slide 17: 2018 Outlook by segment
2018 Outlook by segment1 Excluding FX considerations Distribution IT Solutions Revenue growth rate: mid single-digit Revenue growth rate: high single-digit to low double-digit _ Expected deceleration in air traffic growth _ Low double-digit PB growth • IATA projects 6.0% air traffic growth for 2018
Slide 18: 2018 Investments
2018 Investments Customer implementation Airline IT solutions portfolio: activity PSS: scheduled Altéa implementations (such as Air Canada or flybe) and ongoing DCS implementation activity (such as LATAM Airlines Group) Other solutions, including merchandising and personalization tools, Cloud
Slide 19: Thank you!
Thank you! © 2018 Amadeus IT Holding and its affiliates and subsidiaries amadeus.com You can follow us on: amadeus.com/blog AmadeusITgroup