Amadeus It Group Sa Class A · BME:AMS
Amadeus It Group Sa Class A — Investor Day (2016)
24 slides from Amadeus It Group Sa Class A's investor day presentation, Aug 24, 2016
Slide 1: Amadeus Travel Payments introduction
Hello, my name is Celia Pereiro and I head Amadeus Travel Payments. Since we last met in 2013, the Financial Technology sector, or so-called “FinTech” has become much more well known by the market and is now a “hot” area for investment. Amadeus has been doing “FinTech” for travel companies since we
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements about Amadeus within the meaning of applicable securities law. All statements other than historical facts included in this presentation, including, without limitation, those regarding Amadeus financial position, business strategy, unde
Slide 3: Amadeus's unique role in travel payments
Today, I would like to start with why Amadeus plays a unique role in the travel payments industry. 3
Slide 4: Payments is a complex area
Payments is a complex area. As it involves the transfer of money, there are many regulatory bodies wishing to control all or parts of the payment process. Cap Gemini identifies 30 key regulatory and industry initiatives that impact the way businesses can accept payments. If a company wants to serve
Slide 5: Payments in travel are even more complex
Payments in travel are even more complex due to the particularities of the industry. For instance, 1. Travel is definitively global. In the travel industry, selling within one country is unusual. Most travel providers need to sell across many markets and very often worldwide. 2. Another distinguishi
Slide 6: Integration with travel IT systems
systems of many airlines, travel agencies, airports and other travel participants, which positions us nicely to integrate the payment processing and reconciliation to their IT systems. If we put all of these factors together, the challenges for payments in the travel business can be enormous. So wha
Slide 7: Positioned at the centre of the travel ecosystem
We are positioned at the centre of the travel ecosystem, granting us unparalleled expertise in travel and providing us with unique insights into the challenges that the money flows and payment processes represent for travel players. We can leverage on this knowledge to identify areas where we can pr
Slide 8: Differential value brought to customers
So what is the differential value we bring to customers? Amadeus provides travel merchants (those receiving payments from their customers) with reach to global and local payment providers worldwide, as well as an omni-channel (online, offline, mobile) end-to- end portfolio of payment solutions. Amad
Slide 9: Offering for travel merchants and travel payers
Now let’s look into our offering in more detail for each of these customer groups: travel merchants and travel payers. 8
Slide 10: Helping travel merchants get paid
Firstly, I would like to focus on how we help travel merchants get paid. Let’s take an airline, a travel agency, a hotel, a railway company, and airport, or another travel supplier that needs to receive money from its customers or intermediaries. As travel merchants, the challenges are: _ To achieve
Slide 11: Amadeus Merchant Hub
The Amadeus Merchant Hub allows travel merchants to connect to banks, card acquirers, providers of alternative methods of payment, foreign exchange providers and payment service providers worldwide with just a single link. The Hub enables our customers to: _ Serve customers across all channels. With
Slide 12: Vendor-neutral platform with reach in 192 countries
costs. We offer our customers a vendor-neutral payment platform which allows them to take a best-of-breed approach to selecting a payment partner without the complex integration challenges associated with building such a platform in-house. _ Accept payments in 192 countries. This unparalleled reach
Slide 13: Two-sided transactional business model
This business model has multiple synergies with the Amadeus overall model. It is two-sided and transactional: we charge merchants to use the system and we charge payment providers to connect with merchants. Both sides pay for the value they receive: travel merchants (airlines, travel agencies, hotel
Slide 14: Transaction growth and addressable market
operate a revenue sharing model with them. In terms of our evolution, we processed 250 million payment transactions in 2015, which represents 25% growth over 2014. We estimate that the Total Addressable Market for merchant processing and financial services is c.€2 billion in revenue in 2018. We feel
Slide 15: Challenges for travel payers
Let’s now talk about what we do for payers - travel agencies and corporations who need to pay travel suppliers for their services. Their key challenges are: _ Security and fraud risk. _ Cost of paying: making payments can be expensive, with costs such as wire transfer fees, credit card surcharges an
Slide 16: Payer Hub and B2B Wallet
To help payers efficiently make payments to travel suppliers, we are taking a similar approach to our Merchant Hub: a single platform which integrates different providers to help reduce the complexity of making payments. Today, our focus is on virtual cards. We launched our innovative ‘B2B Wallet’ s
Slide 17: Virtual cards for hotel payments
the whole payment process from corporations to hotels (either directly or through travel agencies), by generating virtual card numbers attached to specific transactions. Through the tracking of these virtual card numbers, payment confirmations are sent automatically to the hotels, and the reconcilia
Slide 18: Payer Hub business model
In the Payer Hub, the business model is also transactional and two- sided. In this model the highest contributors to our revenue are the payment providers, who benefit from the use of their issued cards. The main revenue source for Amadeus comes from a percentage of the amount spent on a payment car
Slide 19: How will we continue to grow?
3. How will we continue to grow? 15
Slide 20: Long-term strategy: three axes of innovation
Looking into the future, our long-term strategy is based on innovation along three key axes: Travel specific: as I said at the beginning of the presentation, the uniqueness of the travel industry demands a payment provider that understands the specific challenges that the sector faces. One example o
Slide 21: Expanding the offering: traveller experience
We aim to continue expanding our offering in those areas where we can add value to the travel players. Traveller experience: Amadeus’ customers are some of the world’s largest consumer brands. For them, the travel experience is their lifeblood. Payments is a critical part of that experience and we w
Slide 22: Execution of the strategy delivering results
The execution of our long term strategy is delivering results: _ We created the business unit 4 years ago, around a basic payments portfolio focused on airlines credit card authorisation in the GDS market. _ In 2013, we created and launched the Merchant Hub. _ In 2014, we consolidated the Merchant H
Slide 23: Customer base and portfolio growth
_ We have more than 500 customers with contracted services from our new portfolio (5, 3 years ago). _ Our new portfolio has 16 payment solutions (we have launched 8 new products since 2013). _ Our revenue, although still small, has more than doubled since 2013. As you can see, we have made good prog
Slide 24: Thank you
oe WP Shaping the future LONDON 2016 INVESTOR DAY Thank you! cmicsenpo: | Amadeusitgrour SERRE SEE amapeus