Global Business Travel Group, Inc. · NYSE:GBTG
Global Business Travel — Q4 2022 Earnings Presentation
32 slides from Global Business Travel's earnings presentation, Mar 9, 2023
Slide 1: Q4 and FY 2022 Earnings Report
Amex GBT Q4 and FY 2022 Earnings Report March 9, 2023
Slide 2: Legal Disclaimer: Forward-Looking Statements
Legal Disclaimer Forward-Looking Statements These slides and the related presentation contain statements that are forward-looking and as such are not historical facts. This includes, without limitation, statements regarding our financial position, business strategy and the plans and objectives of ma
Slide 3: Legal Disclaimer: Industry Data and Financial Measures
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: Q4 2022: A Strong Finish to the Year
Q4 2022: A Strong Finish to the Year Revenue & Adjusted EBITDA Continued SME Positioned for Continued Ahead of FY 2022 Guidance Momentum Strong Growth ▪ Delivered FY 2022 revenue of ▪ Q4 2022 SME transaction ▪ Q4 2022 total transaction $1.85B and Adjusted EBITDA1 recovery reached 82% of 2019 recover
Slide 6: Business Travel Recovery Continues
Business Travel Recovery Continues Transaction, TTV and revenue recovery rates vs. 2019 pro forma1 Transaction TTV Revenue 75% 72% 72% 71% 70% 70% 69% 67% 65% 50% 47% 39% Q1'22 Q2'22 Q3'22 Q4'22 Q1'22 Q2'22 Q3'22 Q4'22 Q1'22 Q2'22 Q3'22 Q4'22 1. Pro forma assumes Egencia, Ovation and DER acquisition
Slide 7: Business Travel Recovery Continues: Detailed Trends
Business Travel Recovery Continues: Detailed Trends Transaction recovery vs. 2019 pro forma1 Customer Set Air Route 79% 80% 82% 64% 64% 66% 67% 66% 65% 60% 61% 61% 55% 46% 38% GMN 38% Domestic SME International Q1'22 Q2'22 Q3'22 Q4'22 Q1'22 Q2'22 Q3'22 Q4'22 Booking Type Region of Sale 78% 78% 80% 7
Slide 8: Q4 2022 Commercial Highlights
Q4 2022 Commercial Highlights Q4 2022 Delivered Record New Wins and Recognition of Product & Technology Leadership Commercial Leadership ESG Leadership $3.5B $2.1B Awarded New Wins Value1 (FY 2022) SME New Wins Value1 (FY 2022) Platinum EcoVadis Status 95% ~25% (top 1% in ESG) Customer Retention Rat
Slide 9: Delivered on Strategic Priorities to Enter 2023 in a Strong Position
Delivered on Strategic Priorities to Enter 2023 in a Strong Position Strategic Priorities Proof Points Q4 2022 revenue recovery at 75% vs. 2019 levels, +3pts vs. Q3 Recovery Momentum Continues 2022 FY 2022 Total New Wins Value of $3.5B at current recovery Share Gains levels1 Q4 2022 SME transaction
Slide 10: Q4 2022 Pro Forma Financial Results Summary
Q4 2022 Pro Forma Financial Results Summary Q4 2021 ($M) Q4 2022 B/(W) % Pro Forma1 Total Transaction Value (TTV) $5,913 $3,057 93% Total Revenue $527 $308 71% Travel Revenue $412 $205 101% Products & Professional Services Revenue $115 $103 12% Adjusted EBITDA2 $43 ($102) NM Adjusted EBITDA margin3
Slide 11: FY 2022 Pro Forma Financial Results Summary
FY 2022 Pro Forma Financial Results Summary FY 2021 ($M) FY 2022 B/(W) % Pro Forma1 Total Transaction Value (TTV) $22,968 $7,995 187% Total Revenue $1,851 $889 108% Travel Revenue $1,444 $558 159% Products & Professional Services Revenue $407 $331 23% Adjusted EBITDA2 $103 ($520) NM Adjusted EBITDA
Slide 12: Significantly Improved Free Cash Flow Performance
Significantly Improved Free Cash Flow Performance ($M) Q1’22 Q2’22 Q3’22 Q4’22 Liquidity & Capital Structure Highlights Net loss ($91) ($2) ($73) ($63) ▪ Cash consumption eased considerably in Q4 2022 Non-cash charges 33 4 73 78 ▪ Expect to reach positive Free Cash Flow and credits add-back during 2
Slide 13: Positive Tailwinds Set Up Strong Growth in 2023
Positive Tailwinds Set Up Strong Growth in 2023 1 Business travel recovery continues – customer outlook remains strong and industry experts predict business travel spend to grow and capacity to increase 2 Distributed teams and hybrid work model are creating new business travel, meetings and events d
Slide 14: Recovery Continues, Business Travel Spend to Grow & Capacity to Increase
Recovery Continues, Business Travel Spend to Grow & Capacity to Increase GBTA Poll1: More Business Trips Expected in 2023 GBTA Expects Business Travel Spend +24% in 20232 ▪ Domestic and international bookings currently at 67% and 54% $1,472B $1,399B of 2019 levels, respectively (up from 63% and 50%
Slide 15: Expect Strong Revenue & Adj. EBITDA Growth in 2023
Expect Strong Revenue & Adj. EBITDA Growth in 2023 Strategic Priorities FY 2023 Expectations Business Travel Recovery Continues GBTA expects 24% business travel spend growth1 and 78% of travel managers expect more business trips2; IATA expects 18% capacity growth Share Gains +17% – 20% $3.5B Total N
Slide 16: FY 2023 Guidance
FY 2023 Guidance1 2023 Key Drivers Full-Year 2023 Guidance ▪ Measured view of macro environment Revenue $2.17B – $2.22B ▪ Revenue growth drivers: ▪ 12pts delivered in the Q4 2022 run-rate % Revenue Growth 17% – 20% YOY ▪ 5pts – 8pts share gains and organic growth ▪ Expect single-digit growth in OpEx
Slide 17: Q1 2023 Guidance
Q1 2023 Guidance1 Q1 2023 Key Drivers Q1 2023 Guidance ▪ Expect transaction recovery in the mid-70%s Revenue $550M – $570M ▪ Expect very strong Q1 revenue growth, driven by recovery and share gain % Revenue Growth 57% – 63% YOY ▪ Expect OpEx to be flat to Q4 2022 as costs to support Q1 volume ramped
Slide 18: Executing on our Commitments & Positioned for Strong Growth
Executing on our Commitments & Positioned for Strong Growth Exceeded 2022 revenue and Adj. EBITDA1 guidance Business travel recovery continues Delivering on share gains and SME acceleration Executing on Egencia synergies and operating leverage Positioned for strong revenue and Adj. EBITDA1 growth in
Slide 19: Thank You
Thank You
Slide 20: Supplemental Materials
Supplemental Materials
Slide 21: Q4 2022 Financial Results Summary
Q4 2022 Financial Results Summary ($M) Q4 2022 Q4 2021 B/(W) % Total Transaction Value (TTV) $5,913 $2,743 116% Total Revenue $527 $287 84% Travel Revenue $412 $185 122% Product & Professional Services Revenue $115 $102 14% Adjusted EBITDA1 $43 ($101) NM Adjusted EBITDA Margin2 8% (35%) 1. Adjusted
Slide 22: FY 2022 Financial Results Summary
FY 2022 Financial Results Summary ($M) FY 2022 FY 2021 B/(W) % Total Transaction Value (TTV) $22,968 $6,392 259% Total Revenue $1,851 $763 143% Travel Revenue $1,444 $446 224% Product & Professional Services Revenue $407 $317 28% Adjusted EBITDA1 $103 ($340) NM Adjusted EBITDA Margin2 6% (45%) 1. Ad
Slide 23: Glossary of Terms
Glossary of Terms B2B refers to business-to-business. Customer retention rate is based on Total Transaction Value (TTV). GMN represents Global & Multinational Enterprises SME refers to clients Amex GBT considers small-to-medium-sized enterprises, which Amex GBT generally defines as having an expecte
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures We report our financial results in accordance with GAAP. Our non-GAAP financial measures are provided in addition to, and should not be considered as an alternative to, other performance or liquidity measure derived in accordance with GAAP. Non-GAAP financial measures hav
Slide 25: Pro Forma Financial Information
Pro Forma Financial Information This presentation includes certain pro forma financial information. The pro forma adjustments assume that the Company acquired Egencia, Ovation and DER as of January 1, 2019 and include a constant currency adjustment. The pro forma financial information is unaudited a
Slide 26: Reconciliation of net loss to EBITDA and Adjusted EBITDA
Reconciliation of net loss to EBITDA and Adjusted EBITDA Three Months Ended December 31, Year Ended December 31, ($ in millions) 2022 2021 2022 2021 Net loss $ (63) $ (200) $ (229) $ (475) Interest income — (1) — (1) Interest expense 29 16 98 53 Loss on early extinguishment of debt — 49 — 49 Benefit
Slide 27: Reconciliation of Revenue Recovery vs. Pro Forma 2019
Reconciliation of Revenue Recovery vs. Pro Forma 2019 Three Months Ended December 31, Three Months Ended September 30, ($ in millions) 2022 2019 2022 2019 Revenue $ 527 $ 536 $ 488 $ 507 Egencia, Ovation & DER revenue — 160 — 160 Foreign exchange at constant currency — 10 — 13 Pro Forma Revenue $ 52
Slide 28: Reconciliation of Pro Forma Revenue and Pro Forma Adjusted EBITDA
Reconciliation of Pro Forma Revenue and Pro Forma Adjusted EBITDA Three Months Ended December 31, 2021 Three Months Ended December 31, 2022 Amex GBT Egencia Pro Forma Revenue $ 527 $253 $ 55 $ 308 Net loss (63) (173) (42) (215) Interest expense 29 16 — 16 — 49 — 49 Loss on early extinguishment of de
Slide 29: Reconciliation of Pro Forma Revenue and Pro Forma Adjusted EBITDA
Reconciliation of Pro Forma Revenue and Pro Forma Adjusted EBITDA Year Ended December 31, 2021 Year Ended December 31, 2022 Amex GBT Egencia Pro Forma Revenue $ 1,851 $730 $ 159 $ 889 Net loss (229) (448) (256) (704) Interest income — (1) — (1) Interest expense 98 53 — 53 Loss on early extinguishmen
Slide 30: 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 December 31, Year Ended December 31, ($ in millions) 2022 2021 2022 2021 $ (4) $ (169) $ (394) $ (512) Net cash used in operating activities (21) (16) (94) (44) Less: Purchase of property and equipment $ (25
Slide 31: Reconciliation of Net Debt
Reconciliation of Net Debt As of ($ in millions) December 31, 2022 December 31, 2021 Senior Secured Credit Agreement Principal amount of senior secured initial term loans (Maturity – August 2025)(1) $ 239 $ 242 Principal amount of senior secured tranche B-3 term loans (Maturity – December 2026)(2) 1
Slide 32: Reconciliation of Full-Year 2023 Adjusted EBITDA Guidance
Reconciliation of Full-Year 2023 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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