Amadeus It Group Sa Class A · BME:AMS
Amadeus It Group Sa Class A — FY2010 Earnings Presentation
29 slides from Amadeus It Group Sa Class A's earnings presentation, Feb 25, 2011
Slide 1: Amadeus FY 2010 Results
Brighter, Bolder, Better Amadeus FY 2010 Results 25 February 2011 © 2010 Amadeus IT Group SA
Slide 2: Disclaimer
Brighter, Bolder, Better 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
Slide 3: Airline Industry: International Traffic Growth Globally
Brighter, Bolder, Better Airline Industry: International Traffic Growth Globally International Air Traffic (1) (% Change, year-on-year) Air Traffic Quarterly Evolution vs. PY (2007-2010) 10.0% 7.8% 8.6% 8.7% 7.6% 7.9% 7.7% 7.1% 6.4% 5.4% 5.0% 4.3% 2.4% 0.1% 0.0% -1.2% FY 2010: 8.2% -3.5% -5.0% -6.5%
Slide 4: GDS Industry: Strong Growth throughout the Year
Brighter, Bolder, Better GDS Industry: Strong Growth throughout the Year GDS bookings GDS Quarterly (% Change, Evolution vs. PY year-on-year) (2007-2010) 15.0% 9.6% 9.5% 10.0% 8.8% 7.6% 6.1% 5.0% 3.7% 4.7% 4.4% 3.6% 0.1% 0.1% 0.0% -2.8% FY 2010: 7.9% -5.0% -6.6% -10.0% -12.2% -15.0% -13.4%-13.2% 1Q
Slide 5: Distribution FY 2010 Highlights: Proven Benefit from Cyclical Recovery in Travel Volumes
Brighter, Bolder, Better Distribution FY 2010 Highlights: Proven Benefit from Cyclical Recovery in Travel Volumes Amadeus TA Bookings (m) 2010 Amadeus air TA bookings by region 6.9% % Volume NA Growth 441.6 413.2 LatAm 9.1% 450 6.4% WE 5.9% 425 400 59.2 375 60.8 WE 350 APAC 47.9% CESE 12.2% 325 13.9
Slide 6: Distribution FY 2010 Highlights: Strong volume Growth combined with Pricing Resilience
Brighter, Bolder, Better Distribution FY 2010 Highlights: Strong volume Growth combined with Pricing Resilience Revenue Growth (%) Total Bookings Unit Yield (1) (€) 2,000 €3.82 3.8% 303.4 €3.74 292.4 1,500 1,000 +9.4% 1,688.8 1,543.9 500 0 2009 2010 2009 2010 Booking Revenue Non-booking Revenue © 20
Slide 7: IT Solutions FY 2010 Highlights: Successful Migration of Key Airlines
Brighter, Bolder, Better IT Solutions FY 2010 Highlights: Successful Migration of Key Airlines, Continued Trend of New Contract Gains Contracted and Migrated airlines (1) Passengers Boarded (2) (m) 109 372.3 400 +56.8% 90 375 94 350 325 300 145.9 275 237.5 67 250 225 24.2 200 175 +6.2% 150 213.3 226
Slide 8: Contracted Airlines will Drive Future Growth, 2010 Migrations Achieved as Planned
Brighter, Bolder, Better FY 2010 Highlights: Contracted Airlines will Drive Future Growth, 2010 Migrations Achieved as Planned Passengers Boarded (including organic growth) (m) Selected 2010 Migrations Aegean Date Q1 2010 √ +1.6x >600 Tap Q1 2010 √ Mauritania Q1 2010 √ Saudi Arabia Q2 2010 √ LOT Q2
Slide 9: Q4 2010: Selected Operating Highlights
Brighter, Bolder, Better Q4 2010: Selected Operating Highlights Distribution IT Solutions Alitalia signed a full content agreement until the end of Airline IT 2013. Content agreements were also signed with an Continued growth in customer base: 10 new Altéa contracts additional 9 airlines signed in Q
Slide 10: FY 2010 Financial Review: Significant Revenue Growth across Business Areas
Brighter, Bolder, Better FY 2010 Financial Review: Significant Revenue Growth across Business Areas. Sustained Profitability Distribution (€ mm) IT Solutions (€ mm) Opodo (€ mm) +47.5% +68.1% +65.8% +34.5% +46.5% +26.6% +17.7% 601.4 +8.5% 1992.2 511.1 1836.3 +21.8% +13.4% 111.7 98.5 +6.1% 146.8 409.
Slide 11: Group Net Indirect Fixed Costs
Brighter, Bolder, Better Group Net Indirect Fixed Costs Net Indirect fixed costs (1) (€ mm) +3.8% 346.1 359.4 2009 (2) 2010 © 2010 Amadeus IT Group SA Gross indirect costs growth driven by negative FX impact, inflation, increased efforts in R&D (e.g. TPF decommissioning) and indirect impact of overa
Slide 12: Research & Development and Capital expenditure
Brighter, Bolder, Better Research & Development and Capital expenditure Total Group R&D spend (€ mm) Total Group Capex (€ mm) 252.3 +33.2% +23.7 % 44.1 204.0 50.7 325.8 244.6 208.2 153.2 2009 2010 (1) 2009 (2) 2010 Intangible Assets Tangible Assets % revenue(3) 10.3% 12.1% % revenue(3) 8.4% 9.4% Con
Slide 13: Group EBITDA
Brighter, Bolder, Better Group EBITDA(1) Contribution to EBITDA growth in 2010 (€ mm) 73.4 12.3 53.5 (13.3) +14.2% 1,014.9 889.0 2009 EBITDA (2) Contri buti on Ma rgi n Contri buti on Ma rgi n IT EBITDA Opodo Indi rect cos ts a nd 2010 EBITDA (3) Di s tri buti on Sol uti ons ca pi ta l i za ti ons &
Slide 14: Free cash flow generation and Leverage
Brighter, Bolder, Better Free cash flow generation and Leverage Pre-tax free cash flow(1) (€ mm) Covenant Net debt / LTM EBITDA(2) +6.5% 66.9 3.6x 93.6 829.4 3.3x 778.7 2.9x 2.7x 1,014.9 2.5x 889.0 Dec. 2009 Mar. 2010 June. 2010 Sept. 2010 Dec. 2010 (204.0) (252.3) Net debt (in € mm) 3,289 3,168 2,8
Slide 15: Sale of Opodo
Brighter, Bolder, Better Sale of Opodo © 2010 Amadeus IT Group SA
Slide 16: Sale of Opodo – Key Transaction Highlights
Brighter, Bolder, Better Sale of Opodo – Key Transaction Highlights On February 9, 2011, Amadeus and a consortium formed by Axa Private Equity and Permira Funds reached an agreement for the sale of Opodo, for an enterprise value of c.€450 mm This enterprise value represents a 11.7x multiple on 2010
Slide 17: 2011 Outlook
Brighter, Bolder, Better 2011 Outlook © 2010 Amadeus IT Group SA
Slide 18: The Macroeconomic backdrop: Expectations for 2011 (I)
Brighter, Bolder, Better The Macroeconomic backdrop: Expectations for 2011 (I) World GDP Growth Still significant risks to the outlook 2010 2011 Change of GDP growth: World Output 5.0% 4.4% (0.6p.p.) Downside risks remain elevated: “possibility of tensions in the euro Advanced economies 3.0% 2.5% (0
Slide 19: The Macroeconomic backdrop: expectations for 2011 (II)
Brighter, Bolder, Better The Macroeconomic backdrop: expectations for 2011 (II) Inflation (CPI) (%) Rallying commodity prices may constrain 2010 2011 Change the recovery in advanced economies. China is starting to pass on the rising World 3.2% 2.8% (0.4p.p.) cost of labour and other manufacturing Un
Slide 20: Passenger traffic 2011 IATA growth estimates
Brighter, Bolder, Better Passenger traffic 2011 IATA growth estimates IATA 2011 Forecast (%) We have benefited from a strong 2010 2011 Change recovery in the cycle in 2010 Industry sources project continued Total Industry 8.2% 5.2% (3.0p.p.) growth into 2011 - IATA: +5.2%(1), Europe 5.1% 5.0% (0.1p.
Slide 21: GDS vs. passenger traffic growth evolution
Brighter, Bolder, Better GDS vs. passenger traffic growth evolution 15.0% Passenger(1) & GDS Industry. Historical evolution (% y-o-y) Air Traffic 10.0% GDS Industry 7.4% 7.9% 5.0% 6.3% 5.0% 4.4% (0.4%) 0.0% 0.8% (2.0%) (6.0%) (5.0%) (4.5%) (10.0%) 2006 2007 2008 2009 2010 GDS & passenger +4.3 +2.9 +
Slide 22: Relevant operating data in 2011
Brighter, Bolder, Better Relevant operating data in 2011 Upcoming renegotiation of US full content agreements Booking Fee (3) Distribution 2010 2011 8 scheduled migrations to Altéa (Reservation + Inventory) Back-ended towards Q4 2011 PB Fee (3) Of which 5 are current System Users(1) IT Solutions 13
Slide 23: 2011 Company guidance (I)
Brighter, Bolder, Better 2011 Company guidance (I) Distribution IT Solutions 4% 6% 5% 8% Revenue Growth (1) 5% 7% 7% 10% Revenue growth as per 2010 reported numbers Revenue growth adjusting 2010 numbers for the Slightly Increasing sale of v.com and Hospitality, for comparability purposes Group EBITD
Slide 24: 2011 Company guidance (II)
Brighter, Bolder, Better 2011 Company guidance (II) Net debt / EBITDA ratio (1) of 1.5x-2.0x as of December 2011 Capital structure Existing hedging instruments mature in June 2011 As of February 24, 2011 we had signed forward arrangements under which we have fixed the interest rate for: Interest rat
Slide 25: Support materials
Brighter, Bolder, Better Support materials © 2010 Amadeus IT Group SA
Slide 26: Reconciliation of segment reporting with EBITDA including Opodo
Brighter, Bolder, Better Reconciliation of segment reporting with EBITDA including Opodo Reconciliation of Contribution and EBITDA (€mm) 2009(1) 2010(2) % Change (3) Contribution 1,208.9 1,335.7 10.5% of which, Distribution 872.8 926.3 6.1% of which, IT Solutions 336.1 409.5 21.8% Indirect fixed cos
Slide 27: Key Performance Indicators
Brighter, Bolder, Better Key Performance Indicators 2009(1) 2010(2) % Growth Volumes Total GDS Industry Growth (%) (6.0%) 7.9% Total Amadeus Air TA 352.4 382.4 8.5% Bookings (m) Passengers Boarded 237.5 372.3 56.8% (PB) (m) Financial Results Revenue from 2,347.5 2,593.6 10.5% continuing operations (
Slide 28: Extraordinary IPO Costs
Brighter, Bolder, Better Extraordinary IPO Costs Q4 2010 2010 Personnel and related expenses (1) 6.3 312.1 Other operating expenses (2) 0.6 13.5 Total Impact on Operating Income 6.9 325.6 Interest Expense (3) 0.0 29.2 Total impact on Profit before Taxes 6.9 354.8 Income taxes (2.2) (110.0) Total imp
Slide 29: Amadeus Brighter, Bolder, Better
Brighter, Bolder, Better Brighter, Bolder, Better © 2010 © 2010 Amadeus Amadeus Group IT IT SASA Group 29