Expedia Group, Inc. · NASDAQ:EXPE
Expedia — Investor Presentation (April 2015)
20 slides from Expedia's investor presentation, Apr 30, 2015
Slide 1: Investor Presentation
INVESTOR April 30, 2015 Exhibit 99.2 PRESENTATION
Slide 2: Safe Harbor
2 July 2014 Safe Harbor Forward-Looking Statements. This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance. These forward-looking statements are based on management’
Slide 3: Investment Highlights: A Growth Company
3 Global Leader in ~$1.3 Trillion Market with Strong Offline-to-Online Trends Significant Growth Opportunities Across Geographies Consistently Strong Financial Execution Technology Platform Innovation Driving Higher Conversion Success in Growing Mobile Channels High Growth Advertising & Media Busine
Slide 4: One of the Largest Travel Companies in the World
4 SUPPLY Depth and Breadth of ~510,000 Hotels 1 in 200+ Countries 400+ Airlines 5.5 Million Packages Volume and Diversity of Global Travel DEMAND 5 Billion Flight Searches Travelers in ~70 Countries Corporate and Leisure Travel; Online and Offline One of the Largest Travel Companies in the World Mut
Slide 5: Trusted Brands
5 Trusted Brands Established Brands With Global Reach Brand Strength in EVERY Established Market Solid Foothold in Emerging Markets 89 Sites in 68 Countries A Leading Hotel Specialist Globally 31 Sites in 31 Countries #1 Full-Service Online Travel Agency Sites in 50 Countries A Leading Hotel Metasea
Slide 6: Diversifying Revenue Mix Reduces Risk and Positions the Business for Growth
6 2005 Revenue Revenue TTM 1 3/31/15 PRODUCT GEOGRAPHY Diversifying Revenue Mix Reduces Risk and Positions the Business for Growth Hotels 63% Hotels 70% Car, Cruise & Other 14% Air 8% Air 22% International 22% Domestic 78% International 47% Domestic 53% Ad & Media 8% Ad & Media 2% Car, Cruise & Othe
Slide 7: Global Leader and Significant Headroom for Further Growth
7 Expedia Share: Expedia 5% Other Expedia 6% Other Expedia 16% Other Expedia 4% Other ONLINE TRAVEL SEGMENT 56% 23% 44% 29% 42% of Total Travel Market Global Leader and Significant Headroom for Further Growth Sources: PhoCusWright estimates and Expedia data; travel market size estimates based on Pho
Slide 8: Rapidly Expanding in Fragmented Hotel Segment of the Travel Industry
8 Expedia, Inc. Has Scale in Hotels … … And Significant Room for Additional Growth Hotels 70% Number of Hotels 4 Rapidly Expanding in Fragmented Hotel Segment of the Travel Industry Other includes Car, Advertising, Destination Services, Insurance, Cruise, Agency Packages, and Other Includes eLong bo
Slide 9: Have Completed Significant Technology Investments That Fortify the Business
9 CENTRALIZED Customer Operations Technology CENTRALIZED Transactional Infrastructure: Financials / Order Management / Inventory Management Have Completed Significant Technology Investments That Fortify the Business CUSTOMIZED Front-End Technology for Rapid Innovation and Powerful Analytics … Improv
Slide 10: Industry Leading Mobile Initiatives Drive Traffic and Revenue
Opening Up Significant Opportunities in Travel Expedia, Inc. Leads the Way in Mobile Innovation The World Is Changing … Of Mobile Bookings (1) Completed Within Of Travel / Stay More than Room Nights Booked on a 10 Industry Leading Mobile Initiatives Drive Traffic and Revenue Expedia, Inc. Brands for
Slide 11: Significant Acceleration in the Advertising and Media Business
11 Significant Acceleration in the Advertising and Media Business ADVERTISING & MEDIA REVENUE $ Millions Note: Reported numbers are net of any intercompany revenue Controlling interest in trivago GmbH (”trivago”) acquired in March #1 hotel metasearch in Europe $99 $109 $113 $131 $319 $479 $502 TTM 1
Slide 12: Expedia Has Multiple Competitive Moats
12 SCALE and BREADTH Global Scale Across Multiple Travel Brands and Product Offerings DIVERSE DEMAND Multiple Sources Leisure Corporate Call Centers Traditional Travel Agency Online SUPPLY Global Travel Supply Footprint and Deep Supplier Relationships TECHNOLOGY PLATFORM Investment in Technology to
Slide 13: Consistent Financial Execution
13 Consistent Financial Execution ADJUSTED EBITDA ADJUSTED EPS 2,3 $ Millions Non-GAAP measure. See Appendix B for Non-GAAP to GAAP Reconciliation Adj. EPS is EPS for Expedia, Inc. considering TripAdvisor on a discontinued operations basis REVENUE $ Billions Non-GAAP measure. See Appendix A for Non-
Slide 14: Solid Track Record of Disciplined Capital Allocation
14 Solid Track Record of Disciplined Capital Allocation FREE CASH FLOW Non-GAAP measure. See Appendix for Non-GAAP to GAAP Reconciliation. Orbitz acquisition was announced in February and is pending regulatory and shareholder approvals. Expedia acquired an additional 25% equity interest in the forme
Slide 15: Investment Highlights: A Growth Company
Global Leader in ~$1.3 Trillion Market with Strong Offline-to-Online Trends Significant Growth Opportunities Across Geographies Consistently Strong Financial Execution Technology Platform Innovation Driving Higher Conversion Success in Growing Mobile Channels High Growth Advertising & Media Business
Slide 16: Expedia Inc
Ss a expedia inc
Slide 17: Non-GAAP Definitions
17 Non-GAAP Definitions Adjusted EBITDA is defined as operating income plus: (1) stock-based compensation expense, including compensation expense related to certain subsidiary equity plans; (2) acquisition-related impacts, including (i) amortization of intangible assets and goodwill and intangible a
Slide 18: Adjusted EBITDA Reconciliation
18 $ Millions TTM 1Q15 Adjusted EBITDA $662 $700 $711 $803 $879 $1,025 $1,020 Depreciation (93) (106) (133) (164) (212) (266) (278) Amortization of Intangible Assets (24) (23) (22) (32) (72) (80) (86) Legal Reserves , Occupancy Tax and Other (68) (23) (21) (117) (78) (41) (41) Stock-Based Compensati
Slide 19: Adjusted Net Income Reconciliation
19 $ Thousands TTM 1Q15 Net Income / (Loss) attributable to Expedia, Inc. $299,526 $421,500 $472,294 $280,171 $232,850 $398,097 $456,544 Discontinued operations, net of taxes (85,349) (119,885) (148,148) 22,539 - - - Stock-Based Compensation 55,756 52,507 63,847 64,596 130,173 85,011 89,076 Amortiza
Slide 20: Non-GAAP / GAAP Reconciliation: Free Cash Flow
20 Non-GAAP / GAAP Reconciliation: Free Cash Flow Note: Numbers may not sum due to rounding $ Millions TTM 3/31/15 Cash provided by operations $574 $605 $826 $1,237 $763 $1,367 $1,446 Capital expenditures (79) (136) (208) (236) (309) (328) (356) Free cash flow $495 $469 $618 $1,001 $455 $1,039 $1,09