Global Business Travel Group, Inc. · NYSE:GBTG
Global Business Travel — Q2 2022 Earnings Presentation
23 slides from Global Business Travel's earnings presentation, Aug 11, 2022
Slide 1: Amex GBT Q2 2022 Earnings Report
Amex GBT Q2 2022 Earnings Report August 11, 2022
Slide 2: Legal Disclaimer: Forward-Looking Statements
Legal Disclaimer Forward-Looking Statements These slides and the related presentation contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exch
Slide 3: Legal Disclaimer: Industry and Market Data
Legal Disclaimer Industry and Market Data This presentation also contains information, estimates and other statistical data derived from third party sources, including research, surveys or studies, some of which are preliminary drafts, conducted by third parties, information provided by customers an
Slide 4: Today's Presenters
Today’s Presenters PAUL ABBOTT MARTINE GEROW Chief Executive Officer Chief Financial Officer 4
Slide 5: Q2 2022 Highlights
Q2 2022 Highlights Strong Revenue and Earnings Trends Travel Recovery Has Strong Momentum ▪ Q2 revenue increased 217% to $486M, net loss totaled ($2M) ▪ Transaction recovery improved 22 percentage points quarter-over- quarter from Q1 2022 to Q2 2022 ▪ Positive Adjusted EBITDA1 totaled $47M ▪ Transac
Slide 6: Business Travel Recovery Has Strong Momentum
Business Travel Recovery Has Strong Momentum Transaction Recovery vs. 2019 pro forma 80% 76% 70% 60% 50% 40% 30% 20% Jan'22 Feb'22 Mar'22 Apr'22 May'22 Jun'22 6
Slide 7: Business Travel Recovery Has Strong Momentum: Trends by Segment
Business Travel Recovery Has Strong Momentum: Trends by Segment 2022 Monthly transaction recovery compared to 2019 Customer Segment Route (Air) Booking Type Region of Sale 90% Hotel SME APAC 80% Domestic Total EMEA 70% GMN Air Americas 60% International 50% 40% 30% 20% 10% 0% Jan Feb Mar Apr May Jun
Slide 8: A Significant Runway for Growth: New Sales Momentum
A Significant Runway for Growth: New Sales Momentum The Leader in a $1.4T1 Industry $4.2B 84% LTM New Wins Value Through SME Transaction Recovery in July 2022 June 20223 2.5x 95% Average Win Rate2 LTM Customer Retention Rate Through July 20224 1. $1.4T reflects 2019 worldwide corporate travel spend
Slide 9: A Significant Runway for Growth: Product & Technology Innovation
A Significant Runway for Growth: Product & Technology Innovation Unrivaled Value Unrivaled Choice ▪ Amex GBT Preferred Extras content and savings ▪ Expanded functionality for Expert Auditor pre-trip available on the Egencia platform approval solution to accommodate more types of content, improved re
Slide 10: Accelerating Earnings Power
Accelerating Earnings Power Expect $109M in Total Egencia Synergies Executed $235M of Permanent Cost Savings ▪ Expect $109M total synergies ($75M revenue, $34M ▪ $235M permanent cost reductions, representing cost) 13% of pre-COVID-19 pandemic cost base ‒ $160M Productivity & efficiency ▪ Completed a
Slide 11: Q2 2022: Positive Adjusted EBITDA of $47 Million
Q2 2022: Positive Adjusted EBITDA of $47 Million ($M) Q2 2022 Q2 2021 B/(W) % Total Transaction Value (TTV) $6,520 $1,212 438% Transactions Growth 346% 274% Total Revenue $486 $153 217% Travel Revenue $388 $79 387% Product & Professional Services Revenue $98 $74 33% Net loss ($2) ($55) 97% Net cash
Slide 12: Q2 2022 Pro Forma: Strong Revenue and Earnings Trends
Q2 2022 Pro Forma: Strong Revenue and Earnings Trends Q2 2021 Pro ($M) Q2 2022 B/(W) % Forma1 Total Transaction Value (TTV) $6,520 $1,653 294% Total Revenue $486 $187 159% Net loss ($2) ($127) 98% Adjusted EBITDA2 $47 ($142) 133% Adjusted EBITDA2 fall-through on year-over-year 63% revenue growth 1.
Slide 13: Expect Positive Free Cash Flow in 2023
Expect Positive Free Cash Flow in 20231 ($M) Q1 2022 Q2 2022 Cash Flow Highlights Net loss ($91) ($2) ▪ Expect to be Free Cash Flow positive in 2023 as demand continues to recover and working capital Non-cash charges and credits build normalizesSharp increase in recovery drove 33 4 add-back signific
Slide 14: Raised 2022 Guidance
Raised 2022 Guidance1 Raised 2022 Guidance Revenue $1.8B – $1.85B % of 2019 Pro Forma2 Revenue 64% – 65% Adjusted EBITDA3 $90M – $100M Adjusted EBITDA Margin4 ~ 5% 1. See our Q2 2022 earnings release for a description of certain assumptions and risks associated with this guidance; forward-looking gu
Slide 15: Supplemental Materials
Supplemental Materials
Slide 16: Glossary of Terms
Glossary of Terms Business Combination refers to the business combination between Apollo Strategic Growth Capital and Amex GBT. “B2B” refers to business-to-business. Customer Retention Rate is based on Total Transaction Value (TTV) and includes Egencia. GMN refers to Global Multinational Enterprises
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures We report our financial results in accordance with GAAP. Our non-GAAP financial measures are provided in addition to, and should not be considered as an alternative to, other performance or liquidity measures derived in accordance with GAAP. Non-GAAP financial measures ha
Slide 18: Pro Forma Financial Information
Pro Forma Financial Information This presentation includes certain pro forma financial information. The pro forma adjustments assume that the Company acquired Egencia, Ovation and DER as of January 1, 2019 and include a constant currency adjustment. The pro forma financial information is unaudited a
Slide 19: Reconciliation of net loss to EBITDA and Adjusted EBITDA
Reconciliation of net loss to EBITDA and Adjusted EBITDA Three Months Ended June 30, ($ in millions) 2022 2021 Net loss $ (2) $ (55) Interest expense 24 13 Benefit from income taxes (4) (73) Depreciation and amortization 45 36 EBITDA 63 (79) Restructuring charges(a) (5) (9) Integration costs(b) 8 4
Slide 20: Reconciliation of net cash used in operating activities to Free Cash Flow
Reconciliation of net cash used in operating activities to Free Cash Flow Three Months Ended June 30, ($ in millions) 2022 2021 Net cash used in operating activities $ (155) $ (122) Less: Purchase of property and equipment (21) (9) Free Cash Flow $ (176) $ (131) 20
Slide 21: Reconciliation of Revenue Recovery vs. Pro Forma 2019
Reconciliation of Revenue Recovery vs. Pro Forma 2019 Three Months Ended Three Months Ended ($ in millions) June 30, 2022 June 30, 2019 Revenue $ 486 $ 557 Egencia, Ovation & DER revenue — 182 Foreign exchange at constant currency — 7 Pro Forma Revenue $ 486 $ 746 Revenue Recovery vs. Pro Forma 2019
Slide 22: Reconciliation of 2021 Pro Forma Revenue and Pro Forma Adjusted EBITDA
Reconciliation of 2021 Pro Forma Revenue and Pro Forma Adjusted EBITDA Three Months Ended June 30, 2021 Three Months B/(W) vs. Ended June 30, Amex Pro Pro 2022 GBT Egencia Forma Forma Revenue $486 $153 $34 $187 $299 Net loss (2) (55) (72) (127) 125 Interest expense 24 13 — 13 11 Benefit from income
Slide 23: Reconciliation of Full-Year 2022 Adjusted EBITDA Guidance
Reconciliation of Full-Year 2022 Adjusted EBITDA Guidance The Company has not provided a quantitative reconciliation of Adjusted EBITDA guidance to forecasted GAAP net income (loss) within this earnings release because the Company cannot, without unreasonable effort, calculate certain reconciling it
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