Expedia Group, Inc. · NASDAQ:EXPE
Expedia — Investor Presentation (February 2019)
18 slides from Expedia's investor presentation, Feb 7, 2019
Slide 1: Investor Presentation February 7, 2019
Exhibit 99.2 Investor Presentation February 7, 2019 0
Slide 2: Safe harbor
Safe harbor Forward-looking statements. This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements that describe Expedia Group management's beliefs, intentions or g
Slide 3: Key investment highlights
Key investment highlights 1) Huge addressable market 2) Operating global multi-product travel platform 3) Harnessing significant scale and technological advantages 4) Leading brands with loyal customer base 5) Strong financial performance on solid trajectory 6) Attractive free cash flow generation 7
Slide 4: Huge opportunity in $1.7T global market
Huge opportunity in $1.7T global market US and Asia Latin EMEA Canada Pacific America 13% 3% 2% 2% 2019 total travel market Total travel market ~$1.7T $501B $644B $506B $89B Expedia Group Other Notes: Expedia Group’s share of travel market defined as gross bookings during 2018. Travel market size es
Slide 5: World's largest diversified travel platform
World’s largest diversified travel platform High volume & diversity of Broad and diversified Customers Demand Supply partners Properties on core Monthly visits1 lodging platform4 750M+ 1M+ Active corporate travelers HomeAway online bookable 2M+ listings 1.8M+ Powering Customers Suppliers ~100K Airli
Slide 6: Unmatched portfolio of leading travel brands
Unmatched portfolio of leading travel brands Common technology and supply Global alternative Only global full-service A leading hotel specialist A leader in global accommodations A leading hotel online travel agency, globally, with websites in corporate travel, in 60+ marketplace with metasearch com
Slide 7: Rapidly expanding supply
Rapidly expanding supply Property count K 1,250 50% 1,000 40% Core lodging platform 750 30% includes Over 1M 500 20% properties 250 10% 0 0% 2014 2015 2016 2017 2018 Core Lodging Properties HomeAway Integrated Listings Y/Y growth ex-HomeAway (RHS) 6
Slide 8: Expedia loyalty programs drive repeat & create competitive differentiation
Expedia loyalty programs drive repeat & create competitive differentiation • 43M+ members • 17M+ reward nights redeemed to date • 30M+ members • Available in 30+ countries • 9M+ members • Members booked >2x more hotels than non-members Notes: All metrics provided are as of 12/31/18. 7
Slide 9: Investments in mobile drive growth & engagement
Investments in mobile drive growth & engagement 300M+ Travel industry cumulative app downloads1 90% Mobile share of gross online bookings by key countries and regions More than 45% 1 in 3 transactions booked via mobile2 0% Nearly 50% China Japan India Spain U.K. Italy Germany Scandinavia France U.S.
Slide 10: Strong financial execution
Strong financial execution Room nights Gross bookings M $B CAGR: 24% CAGR: 20% 352 100 312 88 269 78 203 60 150 48 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Revenue1 Adjusted EBITDA1 $B $M CAGR: 19% CAGR: 17% 11.2 1,970 10.1 1,713 8.8 1,616 6.6 1,165 5.6 1,051 2014 2015 2016 2017 2018 2014 2
Slide 11: New Seattle headquarters of Expedia Group
New Seattle headquarters of Expedia Group Building for the future • 40 acres on Seattle waterfront • Initial build out of ~1.2M sq. ft. with approval to Key facts build up to 1.9M total sq. ft. over 15 years • New construction began in late 2017 • Expect to begin moving in late 2019 • A single, unif
Slide 12: Strong free cash flow
Strong free cash flow Strong profit growth Free cash flow overview $M 1,500 Favorable working capital from significant merchant business 1,000 Lower capital intensity due to cloud migration 500 Reduced real estate capex following completion of headquarters in 2020 0 2015 2016 2017 2018 Attractive fr
Slide 13: Solid track record of capital allocation
Solid track record of capital allocation 2011 2012 2013 2014 2015 2016 2017 2018 2019 $M 5,321 903 Share repurchases 663 594 515 537 545 Dividends 397 436 M&A 1 283 294 209 217 130 150 176 186 186 77 76 85 45 108 84 2011 2012 2013 2014 2015 2016 2017 2018 Total free cash flow generated: $6.7B2 2011
Slide 14: Appendix
Appendix
Slide 15: Non-GAAP Definitions
Non-GAAP Definitions Adjusted EBITDA is defined as net income (loss) attributable to Expedia Group adjusted for: (1) net income (loss) attributable to non-controlling interests; (2) provision for income taxes; (3) total other expenses, net; (4) stock-based compensation expense, including compensatio
Slide 16: Non-GAAP/GAAP reconciliation: Revenue
APPENDIX Non-GAAP/ GAAP reconciliation: Revenue $ Millions 2014 2015 2016 2017 2018 Core OTA revenue $4,905 $5,877 $7,084 $7,881 $8,760 trivago revenue 414 548 836 1,166 1,084 Egencia revenue 400 400 462 521 601 HomeAway revenue - 20 689 906 1,171 eLong revenue 178 42 - - - Intercompany eliminations
Slide 17: Non-GAAP/GAAP reconciliation: Adjusted EBITDA
APPENDIX Non-GAAP/ GAAP reconciliation: Adjusted EBITDA $ Millions 2014 2015 2016 2017 2018 Net income attributable to Expedia Group, Inc. $398 $764 $282 $378 $406 Net income (loss) attributable to noncontrolling interests (25) (42) (21) (6) (8) Net income 373 723 261 372 398 Provision for income ta
Slide 18: Non-GAAP/GAAP reconciliation: Free cash flow
APPENDIX Non-GAAP/ GAAP reconciliation: Free cash flow $ Millions 2011 2012 2013 2014 2015 2016 2017 2018 TOTAL Cash provided by $826 $1,237 $763 $1,367 $1, 299 $1,549 $1,845 $1,975 $10,861 operations Headquarters capital - - - - (233) (26) (68) (192) (519) expenditures Non- headquarters (208) (236)
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