Global Business Travel Group, Inc. · NYSE:GBTG
Global Business Travel — Amex GBT — Investor Day (April 2022)
79 slides from Global Business Travel's investor day presentation, Apr 12, 2022
Slide 1: Amex GBT Investor Day
Amex GBT Investor Day April 12, 2022
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation (the “Presentation”) has been prepared by GBT JerseyCo Limited (“Amex GBT”) and Apollo Strategic Growth Capital (“APSG”) in connection with a potential business combination involving Amex GBT and APSG (the “Business Combination”) and is preliminary in nature and so
Slide 3: Legal Disclaimer
Legal Disclaimer 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 fina
Slide 4: Legal Disclaimer
Legal Disclaimer Pro Forma Financial Information: This Presentation includes certain pro forma financial information. The pro forma adjustments assume that Amex GBT acquired Egencia and the Business Combination was consummated as of January 1, 2021. The pro forma financial information is unaudited a
Slide 5: Transaction Update
Transaction Update ▪ We signed the Business Combination Agreement with Apollo Strategic Growth Capital on Dec 2, 2021. $817M cash in trust ▪ PIPE process was well received, upsized and oversubscribed. Initial target for PIPE subscriptions was $200M. We allocated $335M, including sizeable investments
Slide 6: Amex GBT Investor Day Intro
Amex GBT Investor Day Intro Paul Abbott
Slide 7: Today's Agenda
1 Amex GBT Overview 2 Why Amex GBT is a Compelling Investment Opportunity: 1. Travel Recovery Has Strong Momentum 2. A Significant Runway for Growth (Part 1) Break Today’s 3. A Significant Runway for Growth (Part 2) 4. Differentiated Value for Customers and Suppliers 5. Incremental M&A Opportunity a
Slide 8: Management Team
Management Team Paul Abbott Chief Executive Officer Eric Bock Andrew Crawley Martine Gerow Patricia Huska Chief Legal Officer, Chief Commercial Chief Financial Officer Chief People Officer Global Head M&A Officer Boriana Tchobanova Evan Konwiser Michael Qualantone Chief Transformation Officer EVP Pr
Slide 9: Amex GBT Overview
Amex GBT Overview Paul Abbott
Slide 10: The Global Leader in B2B Travel
The Global Leader in B2B Travel ▪ 100 years of travel experience (carved out from American Express in 2014) $1.4B+ (as of 2021) $39B (2019) Total completed investment Total Transaction Value ▪ Leading B2B travel platform by total spend with the in product & platform1 (TTV)4,5 largest concentration o
Slide 11: Supported by Strong Brand and Strategic Shareholders
Supported by Strong Brand and Strategic Shareholders 10 Year 11 Year Brand ~30% World’s 2nd ~14% ~$140B Strategic Licensing Pro Forma Largest Travel Pro Forma Market Cap1 Commercial Agreement2 Ownership3 Company Ownership3 Partnership5 Well-Known $1.3T & Trusted Network Strategic Benefits to Amex GB
Slide 12: The Largest Player in a Massively Underpenetrated Industry
The Largest Player in a Massively Underpenetrated Industry 2019 Managed Global Business Travel Spend per TMC1,2 Total Global Business Travel Spend of $1.4T3 ($B) ~40% larger in TTV than the next closest competitor ~$330 $39 1 40% $23B5 $28 60% In-Destination 4 $23 ~$430B 4 $8 GMN $7 ~$60B $6 ~$220 4
Slide 13: 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 Experts predict ~90- 120 100% recove
Slide 14: Amex GBT Sits at the Center of the Business Travel Ecosystem
Amex GBT Sits at the Center of the Business Travel Ecosystem IBM Marketplace with the most ~19,000 customers globally Microsoft comprehensive and competitive WorldBank EY content in the industry BCG Dell KPMG Intel ITW GM Sanofi UPS Greatest concentration of 95% customer retention rate1 Aon IPG high
Slide 15: 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 Access to the largest set of premium corporate platform customers Integrated end-to-end solutions enabling full travel spend Business
Slide 16: Amex GBT Generates Multiple Revenue Streams
Amex GBT Generates Multiple Revenue Streams Fees, Incentives and 1 Transaction Fees 2 Preferred Extras GDS and New 3 Net GDS Revenue Distribution c Capability 4 Management Fees (NDC) Content Customers Suppliers 5 Products and Services Revenue 6 Marketing and Other Revenue Travel Revenues (76%)1 Prod
Slide 17: Diversified Revenues Across Geography, Customer Segments and Industries
Diversified Revenues Across Geography, Customer Segments and Industries Revenue by Geography1 Revenue by Customer Segment1 Americas ex US, 6% APAC and other, 9% SME, 45% US, 48% GMN, 55% EMEA, 36% No single customer or supplier accounts for by Revenue Stream1 Revenue by Industry1 greater than 6% Pro
Slide 18: Amex GBT's Leadership Position
Amex GBT’s Leadership Position Leadership in Scale Leadership in Technology Leadership in Solutions TTV ($B)1 ▪ $1.4B invested in purpose-built technology2; ▪ Leading solutions designed to address all ~40% larger in TTV than infrastructure is less than six years old needs of any travel program the n
Slide 19: High Quality and Loyal Customer Base
High Quality and Loyal Customer Base $3.7B 95% 16 >45% 2021 2021 Year Average Tenure for of GBT Revenue New Wins Value1 Customer Retention Rate2 Top 100 Customers3 Comes from SME 40 5 of 10 5 of 10 58% 3 of 4 of the Top 100 U.S. Largest U.S. banks5 Largest Health Care 2020 AM Law Big Four Companies
Slide 20: 2021 Results & Recent Highlights
Delivering on Our Financial and Strategic Commitments: 2021 Results & Recent Highlights Financial Results Well Above Forecast1 Corporate Travel Recovery Accelerating ▪ 119% year-over-year growth in Q4 revenue ▪ Corporate travel transaction recovery reached 61% in the week ended April 2, up 33pts sin
Slide 21: Why Amex GBT is a Compelling Investment Opportunity
Why Amex GBT is a Compelling Investment Opportunity Paul Abbott
Slide 22: Highly Attractive and Differentiated Investment Opportunity
Highly Attractive and Differentiated Investment Opportunity What You Need to Believe Proof Points Business travel has strong momentum. Transaction 1 Travel Recovery Has Strong Momentum recovery was 61% of 2019 the week of April 2, a 33pt recovery since mid-January. Global leader in a $1.4T addressab
Slide 23: Travel Recovery Has Strong Momentum
Travel Recovery Has Strong Momentum Drew Crawley
Slide 24: Continued Momentum in Business Travel Recovery
Continued Momentum in Business Travel Recovery Gross transactions recovery vs. 20191,2 70% 65% 61% 60% There is headroom for the recovery to continue: 55% • Businesses and employees 50% want to travel 45% • Key cross border routes remain subject to restrictions; some 40% minor, some significant 35%
Slide 25: Businesses and Employees Want to Travel
Businesses and Employees Want to Travel 2019 Estimated Share of GBT Trips by Purpose 78% of business travelers prefer to sell in person(1) Internal meetings Sales and 85% of travel managers said business travel business development leads to higher revenue and profits (1) 69% of travel managers belie
Slide 26: SME, Domestic Air and Hotel Volumes are Leading the Recovery
SME, Domestic Air and Hotel Volumes are Leading the Recovery Weekly gross transactions recovery compared to 2019 Customer Segment Route (Air) Booking Type Region of Sale 70% SME Domestic Hotel APAC 60% 13ppt 9ppt Rail EMEA Total Air 50% Americas GMN International 40% 30% 20% 10% 0% 5-Feb 5-Feb 5-Mar
Slide 27: Imminent Office Re-Openings Expected to Drive GMN Recovery
Imminent Office Re-Openings by Large Companies Are Expected to Drive Further GMN Recovery Momentum For many global clients, reopening of corporate offices precedes a significant step-up in business travel Gross Transactions Recovery (vs. 2019) for Selected GMN Clients TTV Recovery (vs. 2019) for Sel
Slide 28: Strong Reasons to Believe in Further International Recovery
Strong Reasons to Believe in Further International Recovery as More Restrictions are Eased Most key routes have opened up in the last 2 months, with recovery already at A few key routes remain closed or subject 60%+, despite some testing requirements still being in place to onerous testing or quaran
Slide 29: Key Partners See Even More Positive Trends in Forward Bookings
Key Partners See Even More Positive Trends in Forward Bookings “As we close out this quarter, we're looking at about a “I will go back to my point on held revenues at 65% corporate [revenue recovery]… Throughout the American and point out again how quickly business entire crisis [SME] has run betwee
Slide 30: A Significant Runway for Growth
A Significant Runway for Growth Drew Crawley
Slide 31: Our Leading Customer Value Proposition
Our Leading Customer Value Proposition Unrivaled Choice Unrivaled Experience ▪ Solutions designed around customer needs ▪ The leading digital, self-service and and powered by a modern, agile platform agent-facilitated traveler experience, anytime, anywhere, from any device ▪ The leading solutions fo
Slide 32: The Powerful Backing of Amex GBT
The Powerful Backing of Amex GBT “…massive thank you for all “...thank you… for the herculean efforts to "We are SO thankful for this your support over the support [our people] teams support… early morning weekend... trying to find “Your team responded so and their families calls… [and] late night a
Slide 33: A Proven Track Record of Accelerating Net New Wins
A Proven Track Record of Accelerating Net New Wins We Are the Leader in a $1.4T Industry Recent New Wins $3.7B 2021 New Wins Value1 Ferrero 2.5x Average Win/Loss Ratio2 Standard Chartered 95% 2021 Customer Retention Rate3 Hewlett Packard Enterprise 1. Based on 100% recovery to 2019; includes Egencia
Slide 34: A Significant Runway for Growth: Accelerating SME Growth
A Significant Runway for Growth Accelerating SME Growth Mark Hollyhead
Slide 35: Clear Leader with Significant Runway in SME Segment
Clear Leader with Significant Runway in Industry’s Largest, Fastest Growing and Most Profitable Customer Segment – SME Large & Underpenetrated Segment… Fastest Growing… Total SME Opportunity of ~$945B1 ▪ Volume recovery for SME has outpaced GMN by ~10pts ▪ Only ~30% of global SME spend is managed to
Slide 36: Our Solutions Lead in Each SME Customer Segment
How Are We Accelerating Growth? Our Solutions Lead in Each SME Customer Segment Solve For Complex Personalized, Simple, Easy to Use Global Travel Program High Touch Traveler Care Self Service Platform Our portfolio of leading solutions provide the ability to increase win rate 36
Slide 37: Pandemic and Macro Trends Accelerate Movement to Managed Travel
The Pandemic and Existing Macro Trends Are Accelerating the Movement to Managed Travel Program Unmanaged Travel Program Managed Travel Program Booking high priced published fares – Full access to GBT Preferred Extras unique rates Savings missed savings and savings Traveler location unknown, support
Slide 38: Multiple Levers to Accelerate SME Revenue Growth to Double Digits
Multiple Levers to Accelerate SME Revenue Growth to Double Digits 7% Underlying Historical SME Annual Growth (Excluding M&A)1 ▪ Accelerate shift from unmanaged to managed ‒ Huge whitespace represents significant area of opportunity ($675B) ‒ Large potential for higher win rates in 2022/2023 ▪ Expand
Slide 39: Differentiated Value for Customers and Suppliers
Differentiated Value for Customers and Suppliers Powered by Differentiated Content Mike Qualantone
Slide 40: Supplier Value Proposition Driven by Our Valuable Customer Base
Supplier Value Proposition Driven by Our Valuable Customer Base Our Scale & Premium Business Travelers We Deliver a Higher Share of Premium Customers are a Valuable Combination for Suppliers than the TMC Average1 Business travel customers are estimated to be ~2x more valuable to suppliers Air Premiu
Slide 41: Our Marketplace Strategy is Powering the Return of Business Travel
Our Marketplace Strategy is Powering the Return of Business Travel Most valuable portfolio of high value Partnering with Amex GBT enhances customers across Global and SME suppliers’ opportunities with the segments. This is their marketplace largest aggregation of premium customers We deliver greater
Slide 42: Continuously Enhanced, Unique Content Drives Customer Value
And Continuously Enhanced, Unique Content Drives Customer Value and Savings Amex GBT Negotiates with Suppliers for Exclusive Fares and Benefits for our Customers Through Our Preferred Extras Programs Preferred Extras Air Preferred Extras Hotel ▪ 90+ Airlines in the program ▪ Includes 65K+ Hotel part
Slide 43: Enabled by Our Proprietary Technology
Differentiated Value for Customers and Suppliers Enabled by Our Proprietary Technology Evan Konwiser
Slide 44: $1.4B+ Invested in Building Leading Technology Platform
$1.4B+ Invested in Last 7 Years in Building Leading Technology Platform 2015 2016 2017 2019 2020 2021 2022 30 SECONDS TO FLY Priorities Industry-Defining Core Platform KDS Neo, Online Infrastructure Digital & Travel AI Leading B2B Digital Product and Launch Booking, T&E Stand-up Ecommerce Capability
Slide 45: Complete Proprietary Technology Platform that Leads Where it Matters
Complete Proprietary Technology Platform that Leads Where it Matters Full Ownership of Travel Management Tools for Full Traveler Experience Visibility & Control Egencia Traveler Profile Supply Market Place Proprietary Marketplace for Savings and Value Neo and Trip Record Amex GBT Mobile ▪ Comprehens
Slide 46: Bringing It To Life: The Booking Experience
Bringing It To Life: The Booking Experience 46
Slide 47: Demo Video – Proactive Response to Disruption
Demo Video – Bringing it to life: Proactive Response to Disruption Tailored to Each Trip 47
Slide 48: Making Travel Management Intuitive and Easy for SMEs
Bringing It To Life: Making Travel Management Intuitive and Easy for SMEs 48
Slide 49: Leading & Differentiated Value Proposition Across All Segments
Leading & Differentiated Value Proposition Across All Segments of B2B Travel Full Ownership of Traveler Travel Management Tools Proprietary Marketplace for Experience for Full Visibility & Control Savings and Value • Leading traveler experience • Solutions for any customer • Comprehensive and unique
Slide 50: Incremental M&A Opportunity and a Proven Track Record
Incremental M&A Opportunity and a Proven Track Record Eric Bock
Slide 51: History of Successful M&A Execution and Integration
History of Successful M&A Execution and Integration Target Date Rationale ▪ Neo expense management solutions, travel booking technology, supplier Oct ‘16 CAPABILITIES marketplace technology and a dedicated tech development team 30STF Oct ‘20 ▪ Technology driven AI messaging capabilities Jan ‘21 ▪ Hi
Slide 52: M&A Case Studies
M&A Case Studies Scope and Scale – Hogg Robinson Group Scope and Scale & Capabilities – Egencia Acquisition Overview Acquisition Overview • Acquired HRG, the fourth largest TMC globally, in July 2018 • In November 2021, GBT acquired Egencia, the leading global digital B2B travel software platform •
Slide 53: Priorities for M&A
Priorities for M&A Supported by strong balance sheet and liquidity position M&A Priorities M&A Objectives ▪ Win New Business/Improve 1 SME Platform Growth Organic Growth ▪ Efficiencies/Cost Synergy Benefits Technology and Product 2 Drives Enhancements ▪ Revenue Harmonization Benefits Higher Growth/M
Slide 54: Significant Opportunity for Value Creation Through M&A
Significant Opportunity for Value Creation Through M&A • M&A offers significant upside • Acquisitions achieved inside our De-Spac valuation of 9.4x ‘23E Adj. EBITDA provide immediate value to our shareholders • 1x EBITDA synergy target for TMC acquisitions • Financial forecasts contemplate no acquis
Slide 55: Accelerated Earnings Power with Egencia Synergies & Cost Savings
Accelerated Earnings Power with Egencia Synergies & Permanent Cost Savings Martine Gerow
Slide 56: On Track to Achieve $109M in Egencia Synergies
On Track to Achieve $109M in Egencia Synergies Expect $109M in Total Synergies With Solid Progress to Date ▪ $75M of revenue synergies driven by revenue ▪ Revenue harmonization is on track harmonization ▪ GBT Preferred Extras live in Egencia platform ▪ $34M of cost synergies, primarily from real est
Slide 57: $235M of Permanent Cost Savings Enhance Margins
$235M of Permanent Cost Savings Enhance Margins Overview of OpEx Optimization $235M of Permanent Savings Executed in 2020 & 2021 ▪ Reacted quickly to changing environment; aggregate cost $235M reduction of ~$900M from $19M May 2020 – April 2021, representing $24M 48% of cost base, including volume-
Slide 58: Margin Expansion Opportunity of 4-10pts at 70-100% Industry Recovery
Margin Expansion Opportunity of 4-10pts at 70-100% Industry Recovery Margin Expansion Drivers in the Forecast1 Margin Expansion Levers Incremental to Forecast 1 1% Expanded and strengthened SME value 2 5% proposition creates capability to accelerate SME 1 2% sales performance beyond what’s in fore
Slide 59: Consistent Delivery of Revenue and Earnings Growth
Consistent Delivery of Revenue and Earnings Growth Martine Gerow
Slide 60: Proven Financial Track Record
Proven Financial Track Record Revenue ($M)2 Adj. EBITDA & Margin ($M)4 14% 16% 18% 19% 20% $2,8293 $502 3 $547 ~600bps in margin uplift $40 from 2015 - 20191 $1,899 $356 $1,609 $1,488 $1,524 $292 $245 $2,282 2 $205 $462 JV JV Formed Formed 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019
Slide 61: Organic Growth driven by Existing Customer Growth and Share Gains
Organic Growth driven by Existing Customer Growth and Share Gains Installed Base of Customers Growing Above GDP, Track Record of Share Gain SME: 7% annually 2-3% 6% GMN: 5% annually 1-2% ~2% GDP growth Spend growth above GDP Share gain Pre-COVID organic growth 1 within existing customers 1. 2017 – 2
Slide 62: 2019A – 2023E Amex GBT + Egencia Adj. EBITDA Bridge
2019A – 2023E Amex GBT + Egencia Adj. EBITDA Bridge Amex GBT Returns to Pre-Covid Earnings With Only ~70% of Travel Demand Recovered $502M $61M $527M $88M ($30M) $47M $881M $6M $188M ($520M) ($1,210M) 2019 PF Adj. Travel industry Permanent 2021 PF Adj. Travel industry Permanent Share gain Wage Infla
Slide 63: Expect Significant Long Term Cash Flow Generation
Expect Significant Long Term Cash Flow Generation Adj. EBITDA and Free Cash Flow ($M)1,2,3 Net Cash Flow Generation Drivers Annual working capital outflow approximately Working Capital 74% 77% 82% 81% 80% ~1% of TTV growth Adj. EBITDA3 Capex Steady state Capex of $100-110M per year 502 ‘15 - ’19
Slide 64: Strong Liquidity Position After Pending Business Combination
Strong Liquidity Position After Pending Business Combination $1,828M Liquidity Highlights ▪ Have $1.0B - $1.8B estimated pro forma liquidity under various redemption scenarios, as of 12/31/211 $817M ▪ December 2021 debt refinancing provided $400M of incremental liquidity $90M ▪ Upsized and oversubsc
Slide 65: 2021 Financial Results Well Above Forecast
2021 Financial Results Well Above Forecast1 The following table presents full year 2021 financial results pro forma to include Egencia for the full year. These pro forma results are directly comparable to the forecast provided in the Registration Statement1 filed with the SEC by Apollo Strategic Gro
Slide 66: 2022 Guidance and 2023 Forecast
2022 Guidance and 2023 Forecast 2022 Guidance 2023 Forecast Revenue $1.6B $2.4B % of PF 20191 58% 86% Adj. EBITDA2 $7M $527M Margin % Breakeven 22% 1. Pro forma for Egencia ownership 2. Adj. EBITDA is a non-GAAP measure. Please refer to the Supplemental Materials section for reconciliation of Adj. E
Slide 67: As Recovery Outpaces Estimate, Proposed Transaction Becomes Even More Attractive
As Recovery Outpaces Amex GBT’s Estimate, Proposed Transaction Becomes Even More Attractive Significant Upside Under Quicker Recovery Scenarios ($M, unless otherwise stated) 9.9x 9.4x $846 GBT Would Return to 8.0x Pre-COVID Adj. EBITDA $736 with Only ~70% Industry Recovery $626 6.8x $527 5.9x $502 2
Slide 68: Investment Opportunity – APSG's Perspective
Why Amex GBT is a Compelling Investment Opportunity – APSG’s Perspective Itai Wallach, Apollo
Slide 69: Transaction Summary
Transaction Summary Pro Forma Valuation Illustrative Sources American Express Global Business Travel (“GBT”) – the world leader in B2B software and services for ($M, unless otherwise noted) travel – intends to become a public company through ($M, unless otherwise noted) a business combination tran
Slide 70: Apollo Strategic Growth Capital Is an Extension of Apollo's Global Platform
Apollo Strategic Growth Capital Is an Extension of Apollo’s Global Integrated Platform Significant Investment Experience in Apollo Strategic Growth Capital’s Investment Thesis for GBT Travel, Leisure and Business Services 1990 1 High-value player at the center of the business travel ecosystem Founde
Slide 71: Amex GBT Is a Superior Investment Opportunity to Peers
We Believe Amex GBT Is a Superior Investment Opportunity to Peers Amex GBT Business Services Corporate Travel & GDS EV / 2023E Adj. EBITDA1 9.4x2 21.0x 23.3x 18.3x 10.7x 13.2x 23.3x 13.3x 13.0x 16.6x EV / 2023E FCF1 11.6x3 22.0x 26.9x 23.9x 12.5x 18.9x 25.3x 15.5x 19.0x 21.0x Scale – Technology Capa
Slide 72: Amex GBT Valuation Presents an Opportunity to Invest at a Discount To Peers
Amex GBT Valuation Presents an Opportunity to Invest at a Discount To Peers EV / 2019A & 2023E Adj. EBITDA 32.3x 32.5x 2019A 2023E 28.6x 24.4x 19.0x 17.7x 13.9x 12.7x 9.9x 7.8x 9.4x 23.3x 23.3x 21.0x 18.3x 13.2x 10.7x 16.6x 13.3x 13.0x 1 Enterprise Value ($B) $5.0 $48.7 $50.5 $102.1 $61.4 $25.4 $9.1
Slide 73: Wrap-Up
Wrap-Up
Slide 74: Highly Attractive and Differentiated Investment Opportunity
Highly Attractive and Differentiated Investment Opportunity What You Need to Believe Proof Points Business travel has strong momentum. Transaction 1 Travel Recovery Has Strong Momentum recovery was 61% of 2019 the week of April 2, a 33pt recovery since mid-January. Global leader in a $1.4T addressab
Slide 75: Q&A
Q&A
Slide 76: Thank You
Thank You
Slide 77: Supplemental Materials
Supplemental Materials
Slide 78: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($M) 2015 2016 2017 2018 2019 2020 2021 GAAP operating income ($116) (33) $34 $74 $206 ($747) ($560) Depreciation & amortization 71 78 96 125 141 148 154 Share of earnings in equity method investments 3 1 4 6 5 (5) - Restructuring charges 37 27 30 21 12 206 14 Integrat
Slide 79: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($M) 2015 2016 2017 2018 2019 PF Adjusted EBITDA $205 $245 $292 $356 $502 Less: Capex (54) (56) (51) (66) (101) Free Cash Flow $151 $189 241 290 401 Note : Adjusted EBITDA is a non-GAAP measure. Please refer to the Supplemental Materials section for reconciliation of Ad