Slide 1: Q2 2023 Earnings Report
Q2 2023 Earnings Report 3 August 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 Q2 highlights and industry update 02 Commercial and technology accomplishments 03 Review of Q2 financial results 04 FY 2023 guidance and FY 2025 financial targets ©2023 Sabre GLBL Inc. All rights reserved. 4
Slide 5: Q2 Highlights: Delivering on our priorities
Q2 Highlights: Delivering on our priorities STRATEGIC PRIORITIES Q2 ACHIEVEMENTS GENERATE POSITIVE FREE • Exceeded Q2 guidance and raised FY23 outlook CASH FLOW / DE-LEVER THE • Refinanced significant portion of nearest-term debt maturities (Apr 2025) BALANCE SHEET DELIVER SUSTAINABLE • Continued to
Slide 6: Airline industry fundamentals are strong
Airline industry fundamentals are strong Global airline capacity expected to increase 15% Y/Y in Q3 5,500 Last 12 months (millions of seats) 5,000 2020 2021 2022 2020 4,500 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Source: OAG, Jan 2022 – Oct 2023 ©2023 Sabre GLBL Inc. Al
Slide 7: Faster air bookings growth vs. broader industry
Faster air bookings growth vs. broader industry Share gains in Distribution Q2 2022 Q2 2023 Key takeaways Share of industry 32.3% 33.7% +1.4 pts Y/Y air bookings Share of industry +1.0 pts Y/Y air bookings 35.7% 36.7% (excluding Expedia) +0.7 pts vs. Q2 2019 Source: Sabre Market Intelligence ©2023 S
Slide 8: Recent commercial wins driving sustainable growth
Recent commercial wins driving sustainable growth Long-term, global agreement with Hyatt includes 1,300+ and growing portfolio of properties that will begin utilizing Sabre’s SynXis platform beginning in 2024 ©2023 Sabre GLBL Inc. All rights reserved. 8
Slide 9: Technology transformation remains on track
Technology transformation remains on track Unit Costs Continues to Decline Q2’23 Accomplishments Cost of compute down ~50% since 2019 • 73% of our total compute capacity to GCP, up from ~69% in Q1’23 • All 15 Sabre-managed data centers fully decommissioned • 68% of DXC Tulsa midrange servers decommi
Slide 10: Delivered cost reduction program
Delivered cost reduction program Program on track for $200M in 2024 annualized savings ~$200M • Virtually all actions have been ~$100M 2024 completed 2H 2023 annualized • Expect restructuring costs of $70M, savings occurring mostly in 2023 savings 2020 2021 2022 2020 Prioritizing continued investmen
Slide 11: 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 12: Financial results exceeded Q2 guidance
Financial results exceeded Q2 guidance Q2 2023 Actual Q2 2023 Guidance Revenue $738M ~$700M Adjusted EBITDA $73M ~$45M Free Cash Flow ($57M) ($60M) to ($80M) Incl. $22M restructuring Incl. $20M-$30M restructuring The information presented here represents forward-looking statements and reflects expec
Slide 13: Significant YOY financial improvement in Q2'23
Significant YOY financial improvement in Q2’23 Q2’23 Q2’22 Commentary Total Revenue $738M $658M YOY improvement driven by increase in global air, hotel and other travel bookings Travel Solutions $671M $599M Total Bookings up 12% vs. Q2’22 (Air bookings up 10% vs. Q2’22) Distribution $530M $432M Aver
Slide 14: 2023 Financial Outlook: Raising Adjusted EBITDA Guidance
2023 Financial Outlook: Raising Adjusted EBITDA Guidance FY 2025 Q3 2023 Q4 2023 FY 2023 Targets Revenue ~$725M ~$700M $2.9B to $3.0B Prior: $2.8B to $3.0B ~$340M >$900M Adjusted EBITDA ~$100M ~$110M Unchanged vs. Prior: $300M to $320M Prior ~$20M ~$70M Incl. restructuring Incl. restructuring >$500M
Slide 15: Thank you
Thank you ©2023 Sabre GLBL Inc. All rights reserved. 15
Slide 16: Appendix
APPENDIX ©2023 Sabre GLBL Inc. All rights reserved. 16
Slide 17: Business outlook and financial guidance
Business outlook and financial guidance Third quarter 2023 Adjusted EBITDA guidance consists of (1) third quarter expected net loss attributable to common stockholders adjusted for the estimated impact of loss from discontinued operations, net of tax, of approximately $60 million; preferred stock di
Slide 18: 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 19: 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 20: 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 loss to Adjusted Operating Income (Loss), and loss from continuing operations to Adjusted EBITDA: (in thousands, except per share am
Slide 21: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures ©2023 Sabre GLBL Inc. All rights reserved. 21
Slide 22: 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 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: 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)