Slide 1: Q4 2016 Earnings Report
Q4 2016 Earnings Report Sabre Corporation February 7, 2017 ©2017 Sabre GLBL Inc. All rights reserved. 1
Slide 2: Forward-looking statements
Forward-looking statements Forward-looking Statements Certain statements herein are forward-looking statements about trends, future events, uncertainties and our plans and expectations of what may happen in the future. Any statements that are not historical or current facts are forward-looking state
Slide 3: Today's presenters
Today’s presenters Sean Menke Rick Simonson President & CEO EVP & CFO ©2017 Sabre GLBL Inc. All rights reserved. 3
Slide 4: Q4 2016 highlights
Q4 2016 highlights • Travel Network bookings strength in all regions – October bookings strength continued through the quarter • Strong Hospitality Solutions growth – organic and through recent acquisition • Double-digit growth in SabreSonic and AirVision/AirCentre portfolios • Overall Solutions gro
Slide 5: Q4 2016 financial highlights
Q4 2016 financial highlights • Acceleration in Travel Network growth • Key implementations and new wins at Alitalia, Hainan Aviation Group, Wyndham and Carlson Rezidor • Q4 Free Cash Flow of $193 million 9 Total Quarterly Revenue $830M + % $758M $646M Q4 2016 YOY GROWTH Q4'14 Q1'15 Q2'15 Q3'15 Q4'15
Slide 6: FY 2016 financial results
FY 2016 financial results FY 2016 Growth Revenue $3,373M +14% Adjusted EBITDA $1,047M +11% Adjusted EPS $1.31 +19% Free Cash Flow $372M +53% ©2017 Sabre GLBL Inc. All rights reserved. 6
Slide 7: Q4 and FY 2016 Airline and Hospitality Solutions
Q4 and FY 2016 Airline and Hospitality Solutions Revenue Adjusted EBITDA 19% + Q4 16 $266M $102M Q4’16 YOY 15% GROW TH 38.3% $232M + $86M + Q4’16 YOY Q4’16 GROW TH MARGIN Q4'15 Q4'16 Q4'15 Q4'16 $1,019M $372M 15% + FY’16 YOY FY 16 17% GROW TH + 36.5% $323M $872M + FY’16 YOY FY’16 GROW TH MARGIN 2015
Slide 8: Total passengers boarded
Total passengers boarded 200M 177M 789M 585M 125M Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 2015 2016 +13% Q4 2016 +35% FY 2016 YOY GROWTH YOY GROWTH ©2017 Sabre GLBL Inc. All rights reserved. 8
Slide 9: Q4 and FY 2016 Travel Network
Q4 and FY 2016 Travel Network Revenue Adjusted EBITDA + % 9 Q4 16 $226M $569M Q4’16 YOY 7 GROW TH 39.7% $208M + % $531M + Q4’16 YOY Q4’16 GROW TH MARGIN Q4'15 Q4'16 Q4'15 Q4'16 $2,375M $971M 11% + FY’16 YOY FY 16 13% GROW TH $2,103M + FY’16 YOY $877M 40.9% + FY’16 GROW TH MARGIN 2015 2016 2015 2016
Slide 10: Total Travel Network quarterly bookings
Total Travel Network quarterly bookings 117M 111M 84M +5% Q4 2016 YOY GROWTH Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 ©2017 Sabre GLBL Inc. All rights reserved. 10
Slide 11: Total Q4 2016 bookings growth by region
Total Q4 2016 bookings growth by region APAC NAM EMEA LAC +6.8% +4.4% +6.5% +3.9% +36.8% +37.1% Q4 2016 FY 2016 GLOBAL AIR BOOKING SHARE GLOBAL AIR BOOKING SHARE ©2017 Sabre GLBL Inc. All rights reserved. 11
Slide 12: Net Debt and Leverage
Net Debt and Leverage1 $193M 4.4x 3.5x $3,443 3.3x 3.0x Q4 2016 FREE CASH FLOW $3,075 $2,941 $3,114 $372M FY 2016 FREE CASH FLOW 2013 2014 2015 2016 1Net Debt/LTM Adjusted EBITDA. ©2017 Sabre GLBL Inc. All rights reserved. 12
Slide 13: CEO transition and outlook
CEO transition and outlook Well positioned to win Focused strategy & leadership Growing importance of technology and in large, growing markets distribution needs and opportunities Evolve and implement new products and capabilities that bridge today’s needs with future demands Maximize value delivere
Slide 14: Sabre strategy: Hospitality Solutions
Sabre strategy Hospitality Solutions Extend leadership across multiple solutions and market segments Extend leadership in Central Accelerate investment behind Reservations across small- development of next-generation midsize and enterprise chains property management solution and expand solutions por
Slide 15: Sabre strategy: Airline Solutions
Sabre strategy Airline Solutions Focused investment on areas of highest return Expand technology footprint Targeted investments that across customer operations emphasize areas of greatest to help manage the legacy customer need operational complexity ©2017 Sabre GLBL Inc. All rights reserved. 15
Slide 16: Sabre strategy: Travel Network
Sabre strategy Travel Network Optimize supplier distribution Open new sources of revenue Increase insights through across the value chain data and analytics to help through enhanced ancillary and customers optimize all channels cross-selling opportunities of distribution ©2017 Sabre GLBL Inc. All ri
Slide 17: Sabre strategy: Product & Technology
Sabre strategy Product & Technology Increase investment to modernize technology infrastructure Accelerate modernization of our Speed time to market, improve technology infrastructure and stability and security, and deploy adoption of the cloud and lower cost technologies common, open platforms ©2017
Slide 18: 2017 expectations
2017 expectations Expect a year of growth and investment Travel Hospitality Airline Network Solutions Solutions Expect continued momentum Expect continued strong Expect more modest growth with strong share, revenue revenue growth driven by reflecting solid AirCentre and and Adjusted EBITDA growth sm
Slide 19: FY 2017 Guidance
FY 2017 Guidance Guidance Growth Revenue $3,540M - $3,620M 5% - 7% Adjusted EBITDA $1,080M - $1,120M 3% - 7% Adjusted Net Income $370M - $410M 0% - 11% Adjusted EPS $1.31 - $1.45 0% - 11% Free Cash Flow Approximately $350M GAAP Capital Expenditures $360M - $380M Capitalized Implementation Costs $85M
Slide 20: Thank you
Thank you ©2017 Sabre GLBL Inc. All rights reserved. 20
Slide 21: Appendix
Appendix ©2017 Sabre GLBL Inc. All rights reserved. 21
Slide 22: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of net income (loss) attributable to common shareholders to Adjusted Net Income and Adjusted EBITDA (in thousands, except per share amounts; unaudited) Three Months Ended December 31, Year Ended December 31, 2016 2015 2016 2015 Net income
Slide 23: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of net income (loss) attributable to common shareholders to Adjusted Net Income and Adjusted EBITDA (in thousands, except per share amounts; unaudited) Three Months Ended December 31, 2015 2014 Net income attributable to common stockholder
Slide 24: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of net income (loss) attributable to common shareholders to Adjusted Net Income and Adjusted EBITDA (in thousands, except per share amounts; unaudited) Three Months Ended 3/31/2016 6/30/2016 9/30/2016 12/31/2016 LTM Net income attributable
Slide 25: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow (in thousands; unaudited) Three Months Ended December 31, Year Ended December 31, 2016 2015 2016 2015 Cash provided by operating activities 266,866 139,497 699,400 529,207 Cash used in investing activities (27,095) (84,536) (445,808) (729,041) Cash used in financing
Slide 26: Reconciliation of Adjusted EBITDA and Adjusted EBITDA margin by segment
Reconciliation of Adjusted EBITDA and Adjusted EBITDA margin by segment (in thousands; unaudited) Three Months Ended December 31, 2016 Airline and Travel Hospitality Network Solutions Corporate Total Operating income (loss) $ 193,963 $ 61,756 $ (199,758) $ 55,961 Add back: Selling, general and admin
Slide 27: Reconciliation of Adjusted EBITDA and Adjusted EBITDA margin by segment
Reconciliation of Adjusted EBITDA and Adjusted EBITDA margin by segment (in thousands; unaudited) Three Months Ended December 31, 2015 Airline and Travel Hospitality Network Solutions Corporate Total Operating income (loss) $ 175,218 $ 49,970 $ (115,788) $ 109,400 Add back: Selling, general and admi
Slide 28: Reconciliation of Adjusted EBITDA and Adjusted EBITDA margin by segment
Reconciliation of Adjusted EBITDA and Adjusted EBITDA margin by segment (in thousands; unaudited) Year Ended December 31, 2016 Airline and Travel Hospitality Network Solutions Corporate Total Operating income (loss) $ 835,248 $ 217,631 $ (593,307) $ 459,572 Add back: Selling, general and administrat
Slide 29: Reconciliation of Adjusted EBITDA and Adjusted EBITDA margin by segment
Reconciliation of Adjusted EBITDA and Adjusted EBITDA margin by segment (in thousands; unaudited) Year Ended December 31, 2015 Airline and Travel Hospitality Network Solutions Corporate Total Operating income (loss) $ 751,546 $ 180,448 $ (472,225) $ 459,769 Add back: Selling, general and administrat
Slide 30: 2017 Business outlook and financial guidance
2017 Business outlook and financial guidance With respect to the guidance provided, full-year Adjusted Net Income guidance consists of full-year expected net income attributable to common stockholders less the estimated impact of loss from discontinued operations, net of tax, of approximately $5 mil
Slide 31: Non-GAAP financial measures
Non-GAAP financial measures We have included both financial measures compiled in accordance with GAAP and certain non-GAAP financial measures, including Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income from continuing operations per share (Adjusted EPS), Free Cash Fl
Slide 32: Non-GAAP financial measures
Non-GAAP financial measures These non-GAAP financial measures are key metrics used by management and our board of directors to monitor our ongoing core operations because historical results have been significantly impacted by events that are unrelated to our core operations as a result of changes to
Slide 33: Non-GAAP footnotes
Non-GAAP footnotes 1) Net income (loss) attributable to non-controlling interests represents an adjustment to include earnings allocated to non-controlling interest held in (i) Sabre Travel Network Middle East of 40% for all periods presented, (ii) Sabre Seyahat Dagitim Sistemleri A.S. of 40% beginn