Global Business Travel Group, Inc. · NYSE:GBTG
Global Business Travel — Q3 2022 Earnings Presentation
25 slides from Global Business Travel's earnings presentation, Nov 10, 2022
Slide 1: Amex GBT Q3 2022 Earnings Report
Amex GBT Q3 2022 Earnings Report November 10, 2022
Slide 2: Legal Disclaimer: Forward-Looking Statements
Legal Disclaimer Forward-Looking Statements These slides and the related presentation contain certain “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, and are subject to the safe harbor created thereby under the Private Securit
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: Q3 2022 Highlights
Q3 2022 Highlights Strong Revenue and Earnings Trends Business Travel Recovery Has Strong Momentum ▪ Q3 2022 revenue increased 147% to $488M, and revenue recovery ▪ Amex GBT transaction recovery driven by industry recovery, new wins reached 72% of 2019 pro forma2 revenue, up from 65% in Q2 2022 and
Slide 6: Business Travel Recovery Has Strong Momentum
Business Travel Recovery Has Strong Momentum Transaction, TTV and revenue recovery rates vs. 2019 pro forma1 Transaction TTV Revenue 72% 71% 70% 69% 68% 65% 50% 47% 39% Q1'22 Q2'22 Q3'22 Q1'22 Q2'22 Q3'22 Q1'22 Q2'22 Q3'22 1. Pro forma assumes Egencia, Ovation and DER acquisitions completed on Janua
Slide 7: Business Travel Recovery Has Strong Momentum: Detailed Trends
Business Travel Recovery Has Strong Momentum: Detailed Trends Transaction recovery vs. 2019 pro forma1 Customer Set Air Route 79% 80% 64% 64% 66% 67% 59% 61% 56% 46% 38% GMN 38% Domestic SME International Q1'22 Q2'22 Q3'22 Q1'22 Q2'22 Q3'22 Booking Type Region of Sale 78% 78% 78% 74% 72% 66% 69% 68%
Slide 8: A Significant Runway for Growth: Strong SME Momentum
A Significant Runway for Growth: Strong SME Momentum The Leader in a $1.4T1 Industry 2.5x $4.1B $2.5B Average Win Rate2 New Wins Value SME New Wins Value LTM Through October 2022 LTM Through October 2022 80% ~25% 95% SME Transaction Recovery SME New Wins Value From Customer Retention Rate Q3 2022 Un
Slide 9: A Significant Runway for Growth: Product & Technology Innovation
A Significant Runway for Growth: Product & Technology Innovation New Egencia Mobile App Experience New enhancements make booking, approving and changing travel plans easier by further personalizing the user experience and giving more control ▪ Upgraded user interface technology – advancement to dyna
Slide 10: Q3 2022: Revenue Recovery of 72%
Q3 2022: Revenue Recovery of 72% ($M) Q3 2022 Q3 2021 B/(W) % Total Transaction Value (TTV) $6,585 $1,778 270% Transactions Growth 207% 137% Total Revenue $488 $197 147% Travel Revenue $387 $120 224% Product & Professional Services Revenue $101 $77 29% Net loss ($73) ($106) 30% Net cash used in oper
Slide 11: Q3 2022 Pro Forma: Strong Revenue and Earnings Trends
Q3 2022 Pro Forma: Strong Revenue and Earnings Trends Q3 2021 Pro ($M) Q3 2022 B/(W) % Forma1 Total Transaction Value (TTV) $6,585 $2,411 173% Total Revenue $488 $243 101% Net loss ($73) ($166) 56% Adjusted EBITDA2 $41 ($122) 134% Adjusted EBITDA2 fall-through on year-over-year 67% revenue growth 1.
Slide 12: Improved Free Cash Flow Performance
Improved Free Cash Flow Performance ($M) Q1 2022 Q2 2022 Q3 2022 Liquidity & Capital Structure Highlights Net loss ($91) ($2) ($73) ▪ As expected, cash consumption moderated in Q3 2022 and is expected to continue to moderate in Non-cash charges and Q4 2022 33 4 73 credits add-back ▪ Expect to reach
Slide 13: Reiterated Full-Year 2022 Guidance
Reiterated Full-Year 2022 Guidance1 Full-Year 2022 Guidance Revenue $1.8B – $1.85B % of 2019 Pro Forma2 Revenue 64% – 65% Adjusted EBITDA3 $90M – $100M Adjusted EBITDA Margin4 ~ 5% 1. See our Q3 2022 earnings release for a description of certain assumptions and risks associated with this guidance 2.
Slide 14: 2023 Current Outlook
2023 Current Outlook Potential headwinds… … and strong tailwinds ▪ Macroeconomic headwind 1. Business travel recovery continues – customer outlook remains is difficult to size right now strong 2. Distributed teams and hybrid work model are creating new business travel demand 3. Airline capacity expe
Slide 15: Delivering On Strategic Priorities
Delivering On Strategic Priorities Strategic Priorities Proof Points Recovery Momentum Continues October transaction recovery2 at 76% Share Gains Average win rate of 2.5x3; Pro forma LTM New Wins Value totaled $4.1B4 $2.5B of pro forma LTM SME New Wins Value4; ~25% came from SME Acceleration unmanag
Slide 16: Supplemental Materials
Supplemental Materials
Slide 17: Glossary of Terms
Glossary of Terms “B2B” refers to business-to-business. “Customer Retention Rate” is based on Total Transaction Value (TTV) and includes Egencia. “GMN” represents Global & Multinational Enterprises “PIPE” refers to Private Investment in Public Equity. “Pro Forma New Wins Value” refers to expected an
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures We report our financial results in accordance with GAAP. Our non-GAAP financial measures are provided in addition to, and should not be considered as an alternative to, other performance or liquidity measure derived in accordance with GAAP. Non-GAAP financial measures hav
Slide 19: Pro Forma Financial Information
Pro Forma Financial Information This presentation includes certain pro forma financial information. The pro forma adjustments assume that the Company acquired Egencia, Ovation and DER as of January 1, 2019 and include a constant currency adjustment. The pro forma financial information is unaudited a
Slide 20: Reconciliation of net loss to EBITDA and Adjusted EBITDA
Reconciliation of net loss to EBITDA and Adjusted EBITDA Three Months Ended September 30, ($ in millions) 2022 2021 Net loss $ (73) $ (106) Interest expense 26 13 Benefit from income taxes (10) (31) Depreciation and amortization 45 34 EBITDA (12) (90) Restructuring(a) (2) 4 Integration costs(b) 8 4
Slide 21: 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 September 30, ($ in millions) 2022 2021 Net cash used in operating activities $ (81) $ (107) Less: Purchase of property and equipment (31) (10) Free Cash Flow $ (112) $ (117) 21
Slide 22: Reconciliation of Revenue Recovery vs. Pro Forma 2019
Reconciliation of Revenue Recovery vs. Pro Forma 2019 Three Months Ended Three Months Ended ($ in millions) September 30, 2022 September 30, 2019 Revenue $ 488 $ 507 Egencia, Ovation & DER revenue — 166 Foreign exchange at constant currency — 7 Pro Forma Revenue $ 488 $ 680 Revenue Recovery vs. Pro
Slide 23: Reconciliation of Net Debt
Reconciliation of Net Debt As of ($ in millions) September 30, 2022 December 31, 2021 Senior Secured Credit Agreement Principal amount of senior secured initial term loans (Maturity – August 2025)(1) $ 240 $ 242 Principal amount of senior secured tranche B-3 term loans (Maturity – December 2026)(2)
Slide 24: Reconciliation of 2021 Pro Forma Revenue, Adjusted EBITDA and Fall-Through
Reconciliation of 2021 Pro Forma Revenue, Pro Forma Adjusted EBITDA and Adjusted EBITDA Fall-Through on Year-over-Year Revenue Growth Three Months Ended September 30, 2021 Three Months Ended Amex YOY September 30, 2022 GBT Egencia Pro Forma Growth Revenue $ 488 $197 $ 46 $ 243 $ 245 Net loss (73) (1
Slide 25: Reconciliation of Full-Year 2022 Adjusted EBITDA Guidance
Reconciliation of Full-Year 2022 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
Global Business Travel Group — Q3 2022 Earnings Presentation on 6ix