Global Business Travel Group, Inc. · NYSE:GBTG
Global Business Travel — Apollo Strategic Growth Capital — SPAC Merger (March 2022)
49 slides from Global Business Travel's SPAC merger presentation, Mar 8, 2022
Slide 1: Investor Presentation March 2022
March 2022 INVESTOR PRESENTATION
Slide 2: Legal Disclaimer: Forward-Looking Statements
Legal Disclaimer © Morgan Stanley and/or certain of its affiliates. All rights reserved. 2 Forward - Looking Statements This presentation contains certain “forward - looking statements” within the meaning of the Private Securities Litigation Reform A ct of 1995, Section 27A of the Securities Act and
Slide 3: Legal Disclaimer: Use of Projections
Legal Disclaimer © Morgan Stanley and/or certain of its affiliates. All rights reserved. 3 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 goal
Slide 4: Today's Presenters
Today’s Presenters MARTINE GEROW Chief Financial Officer PAUL ABBOTT Chief Executive Officer
Slide 5: Today's Agenda
Today’s Agenda 5 2 3 Key Investment Highlights 2021 Results & Recent Progress 1 GBT Overview
Slide 6: GBT Overview
SECTION 1 GBT Overview
Slide 7: The Global Leader in B2B Travel
The Global Leader in B2B Travel 7 $600M (as of 2021) Total completed investment in product & platform 1 ~ 1 9K ( 20 21 ) Corporate customers 74 % (20 21 ) o f transactions through digital channels 3 $2. 8 B ( 2019) Total Revenue (2) , 11 % CAGR 4 $ 502 M ( 2019) Adj. EBITDA (2) , 2 3 %+ CAGR 4 95% (
Slide 8: Amex GBT Sits at the Center of the Business Travel Ecosystem
8 Amex GBT Sits at the Center of the Business Travel Ecosystem x ~19,000 customers globally 1 x 95%+ customer retention rate x No single customer or supplier over 6% of revenue x Marketplace with the most comprehensive and competitive content in the industry x Greatest concentration of high - value
Slide 9: Exceptional Strategic Partners With Best-in-Class Brands
9 Exceptional Strategic Partners With Best - in - Class Brands Strategic Benefits to GBT ► Brand halo created by one of the most recognized/trusted brands in the world ► Lead generation ► Joint customer initiatives and product development Other Key Shareholders with Strong Travel / Technology Experi
Slide 10: The Largest Player in a Massively Underpenetrated Industry
10 $ 23 $ 28 $ 39 ~$220 $ 6 $ 7 $ 8 ~$330 The Largest Player in a Massively Underpenetrated Industry Source: Travel Weekly 2020 Power list, GBTA, JP Morgan T&E Benchmark, ARC, Phocuswright , Airlines for America, European Business Travel Barometer survey, iResearch China, CWT Public Filings 1. GBT i
Slide 11: Decades of Consistent Growth in Worldwide Business Travel Spending
11 Decades of Consistent Growth in Worldwide Business Travel Spending Business Travel Spend Has Historically Grown at 4%+ Source: Global Business Travel Association; IATA (Aug - 2021), USTA (Jul - 2021), Fitch (Jun - 2021), Deloitte (Aug - 2021), Euromonitor (Sep - 2021), PwC (Apr - 2021) 1. IATA ba
Slide 12: The Platform Delivers Compelling Value to Customers & Suppliers
12 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 • Integrated end - to - end solutions enabling full travel spend visibility, control and compliance • Detailed reporting and i
Slide 13: Allowing GBT To Generate Multiple Revenue Streams
13 … Allowing GBT To Generate Multiple Revenue Streams c Travel Revenues (76%) 1 GBT receives transaction fees for travel services Suppliers pay GBT for content distribution and promotion GBT is paid for each transaction booked through the GDS 1 2 3 Product and Professional Services Revenues (24%) 1
Slide 14: Key Investment Highlights
SECTION 2 Key Investment Highlights 14
Slide 15: Key Investment Highlights Summary
15 Leading B2B Travel Platform, With Strong Brand and Strategic Shareholders Unique Model With Strong Value Proposition to Customers and Suppliers Enabled by Cutting - Edge Technology Multiple Avenues to Accelerate Growth and Create Value Well - Positioned for Recovery in the Large and Resilient Tra
Slide 16: Leading B2B Travel Platform With Strong Brand
16 Core Platform 56 52 49 44 39 36 33 39 28 23 8 7 6 Amex GBT BCD CWT CTM FCM Direct Travel ~40% larger in TTV than the next closest competitor 1 Leadership in Scale Leadership in Technology Leadership in Solutions ► Global presence that serves clients 24/7 wherever and whenever they want ► Deliveri
Slide 17: A Unique and Differentiated Business Model
17 Premium economics invested into technology and growth GBT delivers differentiated value to clients One of the largest aggregations of premium demand in travel Building a world leading B2B travel platform and solutions Efficient access for suppliers to one of the most valuable client bases in trav
Slide 18: Comprehensive Suite of Tech-Enabled Tools for Travelers and Travel Managers
18 Comprehensive Suite of Tech - Enabled Tools for Travelers AND Travel Managers Unrivaled Value • Most comprehensive and competitive content, driving savings for customers • Leading analytics, insights, benchmarking and consulting services to optimize travel spend, all in one platform Unrivaled Cho
Slide 19: Largest Aggregation of Premium Demand in Travel
19 1. Estimated by A4A for U.S. airline industry pre - COVID 2. Per McKinsey, Skift 3. Per IATA DDS, FY2019. TMC benchmark is average of identified TMCs within DDS dataset Strong Platform & Optimization Capabilities ► Delivers a high ROI channel for suppliers ► Revenue management platform provides d
Slide 20: Leading B2B Travel Software Platform Technology Timeline
20 Acquisition Organic / Internal Leading B2B Travel Software Platform EGENCIA 2021 30 SECONDS TO FLY Travel AI Capability 2020 Infrastructure Stand - up 2017 Neo, Online Booking Platform 2016 Core Platform Launch 2016 Industry - Defining Product and Technology Strategy 2015 2022 Priorities Digital
Slide 21: Multiple Levers To Drive Growth
21 Multiple Levers To Drive Growth Positioning GBT for Margin Expansion • $235MM of structural cost reductions will enable GBT to realize higher margins • Utilize proven synergy realization playbook to drive value from recent M&A • Continue to leverage differentiated technology platform to drive pro
Slide 22: Strong Organic Growth Momentum Driven by Differentiated Value Proposition
22 Customer Supplier $3.7B 2021 New Wins Value 1 52 Customer NPS Score 2 92% 2021 Customer Satisfaction 3 Clear momentum in recent performance 80% 16 out of top 20 supplier contracts renegotiated with equal or better terms since January 2020 5 1. Expected annual average value over the contract term
Slide 23: Large & Underpenetrated SME Segment With Attractive Economics
23 1. Source: GBTA, JP Morgan T&E Benchmark, ARC, Phocuswright , Airlines for America, European Business Travel Barometer survey, iResearch China. Segment sizes are estimated 2. Pro - forma for Egencia 3. Expected annual average value over the contract term from new client wins based on 2019 spend;
Slide 24: Overview of OpEx Optimization
Overview of OpEx Optimization ► $235M of cost reductions executed since beginning of 2020, as part of a broader pre - COVID margin enhancement program ► ~80% of permanent cost reductions already realized ► Opportunities to continue to leverage differentiated technology platform to further drive prod
Slide 25: Corporate Travel Recovery Accelerating
25 1. Gross Transactions represents the total number of transactions, including air, hotel, car rental, rail or other travel - related t ransactions, recorded at the time of booking, on a gross basis to include cancellations, refunds and exchanges. 4 Corporate Travel Recovery Accelerating Well - Pos
Slide 26: History of Success in Executing Highly Synergistic M&A
26 Synergy driven by revenue harmonization, workforce rationalization and real estate optimization Target Date Rationale ► Leading B2B travel software platform ► Transformative expansion ► Scale and capability in U.S. SME ► German presence and SME expansion ► Spanish and European expansion ► Meeting
Slide 27: Organic Growth Driven by Existing Customer Growth and Share Gains
Source: Moody’s, GBT * Real GDP growth for key geographies ** Consolidating GBT, Ovation and Egencia TTV for the 2017 - 2019 period. Excludes HRG as the legacy HRG proposition was discontin ued post acquisition and customers migrated to the GBT platform Installed base of customers growing above GDP,
Slide 28: Significant Upside Under Quicker Recovery Scenarios
28 $502M $527M $626M $736M $846M 9.9x 9.5x 8.0x 6.8x 5.9x 2019 2023 Business Plan at ~70% Industry Recovery 2023 at 80% Industry Recovery 2023 at 90% Industry Recovery 2023 at 100% Industry Recovery 1 Pro forma for Egencia. Adj. EBITDA is a non - GAAP measure. Please refer to the Supplemental Materi
Slide 29: 2019A-2023E Adj. EBITDA Bridge
29 6 2019A – 2023E Amex GBT + Egencia Adj. EBITDA Bridge Strong Financial Performance With Proven Track Record $502m $(520)m $527m 2019 PF adj. EBITDA Industry volume impact Volume related cost savings Permanent Cost Benefits Share gain 2021 PF adj. EBITDA Travel Industry Recovery Volume related cos
Slide 30: Margin Expansion Opportunity at 100% Industry Recovery
30 6 Margin Expansion Opportunity of 4 - 10pts at 70 - 100% Industry Recovery Strong Financial Performance With Proven Track Record 2023 forecast based on ~70% of 2019 industry volume recovery. Leveraging fixed cost base results in significant Adj. EBITDA margin expansion of 6ppts to 28%, when reven
Slide 31: Expect Long-term Free Cash Flow Conversion of ~45%
6 Expect Long - term Free Cash Flow Conversion of ~45% Strong Financial Performance With Proven Track Record 138 172 238 311 428 (186) (50) 71 71 165 2015 2016 2017 2018 2019 Adj. EBITDA Free Cash Flow ’15 - ’19 CAGR 33% ‘ 15 - ’19 +$290M ’15 - ’19 +$351M 1 Free Cash Flow defined as net cash (used i
Slide 32: Strong Liquidity Position After Pending Business Combination
6 Strong Liquidity Position After Pending Business Combination Strong Financial Performance With Proven Track Record ► Ended 2021 with solid cash balance of $516M ► December 2021 debt refinancing provided $400M of incremental financing ► Pending business combination adds up to $817M cash held in tru
Slide 33: GBT Is a Superior Investment Opportunity to Peers
Business Services GBT Scale Organic Growth Prospects Consolidation Opportunity Depth of Customer Relationships End Market and Supplier Diversity Low Capital Intensity Technology Capabilities EV / 2023E Adj. EBITDA (1) EV / 2023E FCF (1)(2) 9.5x 17.9x 20.5x 17.1x 10.8x 12.5x 20.4x 12.6x 13.3x 15.8x 1
Slide 34: 2021 Results & Progress
SECTION 3 2021 Results & Progress
Slide 35: 2021 Results & Progress - Summary
2021 Results & Progress - Summary ► Delivered $3.7B new wins value 6 , which represents 10% of 2019 pro forma TTV 6 , 95% customer retention rate 7 , 92% customer satisfaction score 7 and major new customer wins ► Significantly increased value, choice and experiences for customers with acquisitions
Slide 36: 2021 Financial Results Well Above Forecast
2021 Financial Results Well Above Forecast 1 Year Ended Dec. 31, 2021 ($M; 2021 amounts are preliminary and unaudited) Pro Forma Results (incl. full year of Egencia) Registration Statement Forecast 1 Variance Total Transaction Value (TTV) 2 $7,969 $7,600 + $369 Revenue $889 $828 + $61 Adjusted EBITD
Slide 37: Key Investment Highlights Summary
37 Leading B2B Travel Platform, With Strong Brand and Strategic Shareholders Unique Model With Strong Value Proposition to Customers and Suppliers Enabled by Cutting - Edge Technology Multiple Avenues to Accelerate Growth and Create Value Well - Positioned for Recovery in the Large and Resilient Tra
Slide 38: Thank You
SECTION 5 Thank You
Slide 39: Supplemental Materials
SECTION 6 Supplemental Materials
Slide 40: Transaction Summary
75.8% 15.4% 6.3% 2.6% Transaction Summary 1. Run - rate pro forma Adj. EBITDA of $846MM calculated as 2019A pro forma Adj. EBITDA of $502MM plus GBT standalone cost savings of $235MM plus run - rate synergies from Egencia acquisition of $109MM. Refer to the Supplemental Materials section for non - G
Slide 41: Highly Diversified Business Profile
41 Highly Diversified Business Profile 1. Revenue by geography and customer segment based on 2019 pro forma revenue, including Egencia. Revenue by industry based on 20 19 actual revenue, excluding Egencia and HRG; by revenue stream based on 2019 actual revenue, excluding Egencia 2. “GMN” represents
Slide 42: History of American Express Global Business Travel
42 History of American Express Global Business Travel 2020 2019 2018 2017 2016 2015 2014 2021 1915 2014 Amex separates its Global Business Travel division into a joint venture with an investor group led by Certares ; GBT enters into trademark license agreement, which grants license to use the Amex b
Slide 43: GBT Sets the Standard for ESG in Travel
43 GBT Sets the Standard for ESG in Travel Customer ESG Score ► GBT achieved carbon neutrality for employee business travel ► Pioneering Sustainable Aviation Fuel initiative with Shell to progress industry’s path to net - zero emissions ► Partner with UNICEF to support education for the world’s most
Slide 44: 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 measur
Slide 45: 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 rat e
Slide 46: Adjusted EBITDA Reconciliation 2015A-2020A
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 Charges 37 27 30 21 12 206 Integration Costs – – 0 17 36 14 M&A Costs – 5 11 24 12 10 Separ
Slide 47: Reconciliation of Net Loss to Adjusted EBITDA
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, th
Slide 48: Reconciliation of Pro Forma TTV, Revenue, Net Loss and Adjusted EBITDA
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 o
Slide 49: Reconciliation of Free Cash Flow
49 Tabular Reconciliations for Non - GAAP Measures Reconciliation of Free Cash Flow 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 (186)$ (50)$ 71$ 71$ 16
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