Slide 1: Q3 2023 Earnings Report
Q3 2023 Earnings Report 2 November 2023 ©2023 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 Kurt Ekert Mike Randolfi President & CEO EVP & CFO ©2023 Sabre GLBL Inc. All rights reserved. 3
Slide 4: Agenda
Agenda 01 Q3 highlights and industry update 02 Commercial and technology accomplishments 03 Review of Q3 financial results 04 FY 2023 guidance update ©2023 Sabre GLBL Inc. All rights reserved. 4
Slide 5: Q3 Highlights: Delivering on our priorities
Q3 Highlights: Delivering on our priorities STRATEGIC PRIORITIES RECENT ACHIEVEMENTS • Exceeded Q3 revenue, AEBITDA, and free cash flow guidance GENERATE POSITIVE FREE CASH FLOW / DE-LEVER THE • Significant operating income growth from margin expansion drove strong free BALANCE SHEET cash flow gener
Slide 6: Strong sequential AEBITDA progression
Strong sequential AEBITDA progression Quarterly Adjusted EBITDA Q1’22 – Q3’23 (in $millions) $120 $110 $100 $80 $73 $60 $58 2020 2021 2022 $40 $34 2020 $24 $20 $5 $1 $0 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 ©2023 Sabre GLBL Inc. All rights reserved. 6
Slide 7: Faster air bookings growth vs. broader industry
Faster air bookings growth vs. broader industry Share gains in Distribution Q3 2022 Q3 2023 Key takeaways Share of industry +0.7 pts Y/Y 33.4% 34.1% air bookings +0.4 pts Q/Q Share of industry air bookings 36.5% 36.7% +0.2 pts Y/Y (excluding Expedia) Source: Sabre Market Intelligence ©2023 Sabre GLB
Slide 8: Commercial wins driving sustainable growth
Commercial wins driving sustainable growth ©2023 Sabre GLBL Inc. All rights reserved. 8
Slide 9: Technology transformation remains on track
Technology transformation remains on track Unit Costs Continue to Decline Q3’23 Accomplishments • On schedule to deliver 2023 mainframe offload Cost of compute down ~50% savings and cloud cost reduction targets since 2019 • Accelerated co-development of new technology solutions with Google, includin
Slide 10: Key strategic priorities
Key strategic priorities 1 Generate positive free cash flow and de-lever the balance sheet 2 Deliver sustainable growth 3 Drive innovation and enhance Sabre’s value proposition 4 Reduce cost base and reposition resources towards opportunities for future growth ©2023 Sabre GLBL Inc. All rights reserv
Slide 11: Q3 Highlights: An inflection point
Q3 Highlights: An inflection point ✓ Exceeded Q3 revenue, AEBITDA, and free cash flow guidance and raised FY23 outlook ✓ Drove revenue up 12% YoY or $77M; operating costs were down 4% over the same period ✓ Improved operating margin by 16ppts YoY ✓ Generated $52M in operating income, up $109M YoY ✓
Slide 12: Financial results exceeded Q3 guidance
Financial results exceeded Q3 guidance Q3 2023 Guidance Q3 2023 Actual August 2023 Revenue $740M ~$725M Adjusted EBITDA $110M ~$100M $39M ~$20M Incl. restructuring Incl. restructuring Free Cash Flow $58M ~$50M Excl. restructuring Excl. restructuring ©2023 Sabre GLBL Inc. All rights reserved. 12
Slide 13: Significant YOY financial improvement in Q3'23
Significant YOY financial improvement in Q3’23 Q3’23 Q3’22 Commentary Total Revenue $740M $663M YOY improvement driven by increase in global air, hotel and other travel bookings Travel Solutions $672M $604M Total Bookings up 12% vs. Q3’22 (Air bookings up 11% vs. Q3’22) Distribution $525M $431M Aver
Slide 14: Maturity profile better aligned with prospective free cash flow generation
Maturity profile better aligned with prospective free cash flow generation • Refinanced ~75% of 2025 maturities (~$1.5B) in 2023 – Executed $853M exchange offer in September to extend 2025 maturities to 2027 • Focus on improving capital structure, reducing financing costs, and de-levering the balanc
Slide 15: 2023 Outlook: Raising AEBITDA guide to ~$345M
2023 Outlook: Raising AEBITDA guide to ~$345M FY 2023 $2.9B to $3.0B Revenue February 2023 Guide: $2.8B to $3.0B August 2023 Guide: $2.9B to $3.0B ~$345M Adjusted EBITDA February 2023 Guide: $300M to $320M August 2023 Guide: ~$340M Free Cash Flow Positive Excl. restructuring The information presente
Slide 16: Thank you
Thank you ©2023 Sabre GLBL Inc. All rights reserved. 16
Slide 17: Appendix
APPENDIX ©2023 Sabre GLBL Inc. All rights reserved. 17
Slide 18: Business outlook and financial guidance
Business outlook and financial guidance • Full-year Adjusted EBITDA guidance consists of (1) full-year expected net loss attributable to common stockholders adjusted for the estimated impact of loss from discontinued operations, net of tax, of approximately $525 million; preferred stock dividends of
Slide 19: 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 Operating Income (Loss), Adjusted Net Loss from continuing operations ("Adjusted Net Loss"), Adjusted EBITDA, Adjusted EBITDA Margin, Adju
Slide 20: Non-GAAP financial measures
Non-GAAP financial measures Adjusted Operating Income (Loss), Adjusted Net Loss, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Free Cash Flow and ratios based on these financial measures are not recognized terms under GAAP. These non-GAAP financial measures and ratios based on them are unau
Slide 21: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of Net loss attributable to common stockholders to Adjusted Net Loss from continuing operations, Operating income (loss) to Adjusted Operating Income (Loss), and loss from continuing operations to Adjusted EBITDA: (in thousands, except per
Slide 22: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures ©2023 Sabre GLBL Inc. All rights reserved. 22
Slide 23: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of Adjusted Operating Income (Loss) to operating income (loss) in our statement of operations and Adjusted EBITDA to loss from continuing operations in our statement of operations by business segment: (in thousands; unaudited) ©2023 Sabre
Slide 24: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of Adjusted Operating Income (Loss) to operating income (loss) in our statement of operations and Adjusted EBITDA to loss from continuing operations in our statement of operations by business segment: (in thousands; unaudited) ©2023 Sabre
Slide 25: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of Adjusted Operating Income (Loss) to operating income (loss) in our statement of operations and Adjusted EBITDA to loss from continuing operations in our statement of operations by business segment: (in thousands; unaudited) ©2023 Sabre
Slide 26: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of Adjusted Operating Income (Loss) to operating income (loss) in our statement of operations and Adjusted EBITDA to loss from continuing operations in our statement of operations by business segment: (in thousands; unaudited) ©2023 Sabre
Slide 27: Non-GAAP footnotes
Non-GAAP footnotes (1) Net income attributable to noncontrolling interests represents an adjustment to include earnings allocated to noncontrolling interests held in (i) Sabre Travel Network Middle East of 40%, (ii) Sabre Seyahat Dagitim Sistemleri A.S. of 40%, (iii) Sabre Travel Network Lanka (Pte)