Global Business Travel Group, Inc. · NYSE:GBTG
Global Business Travel — Deutsche Bank 30th Annual Media, Internet & Telecom Conference 2022
31 slides from Global Business Travel's conference presentation, Mar 14, 2022
Slide 1: Deutsche Bank Media, Internet & Telecom Conference March 14, 2022
Deutsche Bank Media, Internet & Telecom Conference March 14, 2022
Slide 2: Legal Disclaimer
Legal Disclaimer Legal Disclaimer Forward-Looking Statements This presentation contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amende
Slide 3: Legal Disclaimer
Legal Disclaimer Legal Disclaimer Use of Projections This presentation contains projected financial information with respect to Amex GBT. Such projected financial information constitutes forward-looking information and are presented as goals or an illustration of the results that could be generated
Slide 4: Today's Presenters
Today’s Presenters PAUL ABBOTT MARTINE GEROW Chief Executive Officer Chief Financial Officer
Slide 5: The Global Leader in B2B Travel
The Global Leader in B2B Travel ►100 years of travel experience (carved out from American Express in 2014) $600M (as of 2021) $39B (2019) ►World’s leading B2B travel platform by total spend with the largest Total completed investment in Total Transaction Value (TTV)3 concentration of high-value trav
Slide 6: Amex GBT Sits at the Center of the Business Travel Ecosystem
Amex GBT Sits at the Center of the Business Travel Ecosystem IBM Microsoft ✓ Marketplace with the most ✓ ~19,000 customers globally1 comprehensive and competitive content WorldBank EY in the industry BCG Dell KPMG Intel ITW GM Sanofi UPS Aon IPG ✓ Greatest concentration of ✓ 95%+ customer retention
Slide 7: Exceptional Strategic Partners With Best-in-Class Brands
Exceptional Strategic Partners With Best-in-Class Brands World’s 2nd 10 Year ~14% Largest Strategic 11 Year Pro Forma ~30% Travel Commercial ~$120B Brand Ownership3 Pro Forma Company Partnership5 Market Cap1 Licensing Ownership3 Agreement2 Strategic Benefits to GBT Well-Known $1.0T ► Partnership wit
Slide 8: The Largest Player in a Massively Underpenetrated Industry
The Largest Player in a Massively Underpenetrated Industry 2019 Managed Global Business Travel Spend per Total Global Business Travel Spend of $1.4T3 Travel Management Company (“TMC”)1,2 ($B) ~40% larger in TTV than the next closest competitor 40% $23B5 (1) 4 In-Destination ~$330 $39 ~$430B 60% GMN
Slide 9: Business Travel Spend Has Historically Grown at 4%+
Business Travel Spend Has Historically Grown at 4%+ Decades of Consistent Growth in Worldwide Business Travel $1T+ Opportunity by 2023 Business Travel Spending Global Business Travel Spend ($T) Global Business Travel Spend, indexed to 100 for 2019 1.6 Euromonitor 120 Other experts predict ~80-100% r
Slide 10: The Platform Delivers Compelling Value to Customers & Suppliers
The Platform Delivers Compelling Value to Customers & Suppliers… What We Do for Customers What We Do for Suppliers Fully integrated travel and expense management platform Access to the largest set of premium corporate • Integrated end-to-end solutions enabling full travel spend customers visibility,
Slide 11: Allowing GBT To Generate Multiple Revenue Streams
… Allowing GBT To Generate Multiple Revenue Streams 1 Transaction Fees 2 Fees, Incentives and Preferred Extras GDS and Customers c 3 Net GDS Revenue NDC Suppliers 4 Management Fees Content 5 Products and Services Revenue 6 Marketing and Other Revenue Travel Revenues (76%) 1 Product and Professional
Slide 12: Highly Attractive and Differentiated Investment Opportunity
Highly Attractive and Differentiated Investment Opportunity 1 Leading B2B Travel Platform, With Strong Brand and Strategic Shareholders 2 Unique Model With Strong Value Proposition to Customers and Suppliers Enabled by Cutting-Edge Technology 3 Multiple Avenues to Accelerate Growth and Create Value
Slide 13: A Unique and Differentiated Business Model
2 A Unique and Differentiated Business Model Building a world leading B2B GBT delivers differentiated travel platform and solutions value to clients Premium economics One of the largest invested into technology aggregations of premium and growth demand in travel Differentiated content, Efficient acc
Slide 14: With A Strong Customer Value Proposition
2 With A Strong Customer Value Proposition Leading Technology Powering Solutions That Create Value and Loyalty With Travelers and Travel Managers… Unrivaled Value Comprehensive Suite of Tech-Enabled Tools for Travelers AND Travel Managers • Most comprehensive and competitive content, driving savings
Slide 15: And Unique Compelling Value for Suppliers
2 And Unique Compelling Value for Suppliers We Deliver Suppliers the Most Valuable Customer Base in Travel Our Travelers Are ~2x More Valuable Than Leisure Customers Largest Aggregation of ► Distributes large volumes of supplier content Business travel represents 30% of passengers1, but 55% - 75% of
Slide 16: Enabled by Cutting Edge Proprietary Technology
2 Enabled by Cutting Edge Proprietary Technology Completed $600MM+ in Product & Platform Investments (Excluding Egencia), with Significant Benefits to Come 30 SECONDS TO FLY EGENCIA Priorities 2015 2016 2016 2017 2019 2020 2021 2022 Industry-Defining Core Platform Neo, Online Infrastructure Digital
Slide 17: Multiple Avenues to Accelerate Growth and Create Value
3 Multiple Avenues to Accelerate Growth and Create Value Levers to Drive Growth and Margin Expansion Multiple Levers To Drive Growth Positioning GBT for Margin Expansion A• Accelerating new wins driven by differentiated value • $235MM of structural cost reductions will enable A and “flight to qualit
Slide 18: Multiple Avenues to Accelerate Growth and Create Value
3 Multiple Avenues to Accelerate Growth and Create Value Significant Runway in Industry’s Largest, Fastest Growing and Most Profitable Customer Segment – SME Large & Underpenetrated Segment With Attractive Economics Significant Investment & New Wins Expand Scale ► 2021 SME New Wins Value3 represents
Slide 19: Well-Positioned for Recovery in the Large & Resilient Travel Sector
4 Well-Positioned for Recovery in the Large & Resilient Travel Sector Corporate Travel Recovery Continuing Monthly Gross Transaction1 Recovery vs. 2019 Feb-22 exit rate ~51%; 60% +23pt volume recovery in 6 weeks 50% Omicron variant 40% Delta variant 30% 6 weeks Alpha volume 20% variant 2 months volu
Slide 20: Strong Financial Performance With Proven Track Record
6 Strong Financial Performance With Proven Track Record GBT Would Return to Pre-COVID Adj. EBITDA With Only ~70% Demand Recovery Significant Upside Under Quicker Recovery Scenarios Stronger Run-rate EBITDA 9.9x 9.5x At 100% industry recovery: $846M 8.0x $462M GBT PF 2019 Adj. $736M EBITDA $626M 6.8x
Slide 21: Strong Financial Performance With Proven Track Record
6 Strong Financial Performance With Proven Track Record 2019A – 2023E Amex GBT + Egencia Adj. EBITDA Bridge Amex GBT returns to pre-Covid earnings even with only ~70% of travel demand recovered $(482)m $30m $(30)m $61m $47m $502m $1,421m $527m $(520)m $(1,956)m $188m $4m $742m 2019 PF adj. Industry
Slide 22: Strong Financial Performance With Proven Track Record
6 Strong Financial Performance With Proven Track Record Expect Long-term Free Cash Flow Conversion of ~45% Adjusted EBITDA and Free Cash Flow ($M) Free Cash Flow Projection Drivers Working ► Annual working capital outflow approaching ~1% of TTV 428 Capital growth Adj. EBITDA ► Steady state Capex of
Slide 23: 2021 Results & Progress - Summary
2021 Results & Progress - Summary Financial Results Well Above Forecast1,2 Corporate Travel Recovery Accelerating ►Driven by 119% year-over-year growth in Q4 revenue, despite the impact of ►Corporate travel transaction recovery in the last week of February 2022 the Omicron variant in December, and e
Slide 24: Thank You
SECTION 5 Thank You
Slide 25: Supplemental Materials
SECTION 6 Supplemental Materials
Slide 26: 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 27: Non-GAAP Financial Measures, Cont.
Non-GAAP Financial Measures, Cont. We define Free Cash Flow as net cash (used in) from operating activities, less cash used for additions to property and equipm ent. We believe Free Cash Flow is an important measure of our liquidity. This measure is a useful indicator of our ability to gene rate cas
Slide 28: Tabular Reconciliations for Non-GAAP Measures
Tabular Reconciliations for Non-GAAP Measures Reconciliation of Adjusted EBITDA ($MM) 2015A 2016A 2017A 2018A 2019A 2020A GAAP Operating Income (116) (33) 34 74 206 (747) Depreciation & Amortization 71 78 96 125 141 148 Share of Earnings in Equity Method Investments 3 1 4 6 5 (5) Restructuring Charg
Slide 29: Tabular Reconciliations for Non-GAAP Measures
Tabular Reconciliations for Non-GAAP Measures Reconciliation of net loss income to Adjusted EBITDA a) Represents severance and related expenses due to restructuring activities and impairment of operating lease right-of-use assets for closure of offices. For the year ended December 31, 2020, these ch
Slide 30: Tabular Reconciliations for Non-GAAP Measures
Tabular Reconciliations for Non-GAAP Measures Reconciliation of pro forma TTV, pro forma revenue, pro forma net loss and pro forma Adjusted EBITDA a) Represents severance and related expenses due to restructuring activities and impairment of operating lease right-of-use assets for closure of offices
Slide 31: Tabular Reconciliations for Non-GAAP Measures
Tabular Reconciliations for Non-GAAP Measures Reconciliation of Free Cash Flow Year Ended December 31, 2015 2016 2017 2018 2019 ($ in millions) Net cash (used in) from operating activities $ (133) $ 6 $ 122 $ 137 $ 227 Less: purchase for property and equipment (53) (56) (51) (66) (62) Free Cash Flow