Slide 1: Investor Presentation October 29, 2015
Investor PRESENTATION October 29, 2015 Exhibit 99.2
Slide 2: Safe Harbor Forward-Looking Statements
Safe Harbor Forward-Looking Statements. This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance. These forward-looking statements are based on management’s expectatio
Slide 3: Important Note
Important Note In May 2015, Expedia sold its 62.4% equity stake in eLong for approximately $671 million to several purchasers including Ctrip. Expedia and Ctrip also reached agreement on cooperation for certain travel products in specified geographic markets. Unless otherwise noted, due to Expedia’s
Slide 4: Investment Highlights
Investment Highlights A Leading Global Player in ~$1.3 Trillion Travel Market Significant Growth Opportunities Across Geographies Consistently Strong Financial Execution Technology Platform Innovation Driving Higher Conversion Success in Growing Mobile Channels A Growth Company High Growth Advertisi
Slide 5: One of the Largest Travel Companies in the World
One of the Largest Travel Companies in the World VOLUME AND GLOBAL REACH MULTI-CHANNEL, MULTI-PLATFORM GLOBAL MARKETPLACE Mutually Beneficial Supply Agreements Value to Travelers Scale Enables Virtuous Circle Diverse Demand: Geography AND Travel Type SUPPLY Depth and Breadth of ~271,000 Hotels in 20
Slide 6: Established Brands With Global Reach
Established Brands With Global Reach Trusted Brands Brand Recognition in Every Established Market Solid Foothold in Emerging Markets 89 Sites in 68 Countries A Leading Hotel Specialist Globally 33 Sites in 32 Countries A Leading Full-Service Online Travel Agency Sites in 52 Countries A Leading Hotel
Slide 7: Diversifying Revenue Mix Reduces Risk and Positions the Business for Growth
Diversifying Revenue Mix Reduces Risk and Positions the Business for Growth 2005 Revenue1 Revenue TTM 2 9/30/15 PRODUCT Hotels 63% Hotels 69% Car, Cruise & Other 14% Air 8% Air 22% GEOGRAPHY International 21% Domestic 79% International 45% Domestic 55% Ad & Media 9% Ad & Media 2% Car, Cruise & Other
Slide 8: Global Leader and Significant Headroom for Further Growth
Expedia 6% Other Expedia 6% Other Expedia 18% Other Expedia 5% Other Online Travel Segment 56% 23% 44% 32% 43% of Total Travel Market Global Leader and Significant Headroom for Further Growth Sources: Phocuswright estimates and Expedia data; travel market size estimates based on Phocuswright data fo
Slide 9: Scale in Hotels, Rapidly Expanding in Fragmented Hotel Segment
Expedia, Inc. Has Scale in Hotels … Rapidly Expanding in Fragmented Hotel Segment of the Travel Industry 1Other includes Car, Advertising, Destination Services, Insurance, Cruise, Agency Packages, and Other 2Sources: Smith Travel Research and Expedia data 3Hotel data for TripAdvisor and Booking.com
Slide 10: Significant Technology Investments That Fortify the Business
CENTRALIZED Customer Operations Technology CENTRALIZED Transactional Infrastructure: Financials / Order Management / Inventory Management Have Completed Significant Technology Investments That Fortify the Business CUSTOMIZED Front-End Technology for Rapid Innovation and Powerful Analytics … Improvin
Slide 11: Leading Mobile Initiatives Drive Traffic and Revenue
Opening Up Significant Opportunities in Travel Industry Leading Mobile Initiatives Drive Traffic and Revenue Expedia PartnerCentral App for Hoteliers Expedia, Inc. Leads the Way in Mobile Innovation The World Is Changing … PC-Connected Users 24 x 7 Mobile Users Exclusive Expedia App for Samsung More
Slide 12: Significant Acceleration in the Advertising and Media Business
Significant Acceleration in the Advertising and Media Business Advertising & Media revenue $ Millions ’12-’14 CAGR : 94.6% 3Q15 TTM YOY Growth: 23.3% Note: Reported numbers are net of any intercompany revenue 1 Controlling interest in trivago GmbH (”trivago”) acquired in March 2013 #1 hotel metasear
Slide 13: Consistent Financial Execution
Consistent Financial Execution Adjusted ebitda1 ROOM NIGHTS $ Millions REVENUE $ Billions 1 Non-GAAP measure. See Appendix A for Non-GAAP to GAAP Reconciliation ’12-’14 CAGR: 19.5% 3Q15 TTM YOY Growth: 16.3% ’12-’14 CAGR: 14.3% 3Q15 TTM YOY Growth: 13.9% ’12-’14 CAGR: 20.3% 3Q15 TTM YOY Growth: 33.3
Slide 14: Solid Track Record of Disciplined Capital Allocation
Solid Track Record of Disciplined Capital Allocation Free cash flow1 1 Non-GAAP measure, including eLong. See Appendix for Non-GAAP to GAAP Reconciliation. 2 Expedia acquired Orbitz Worldwide on September 17. 3 Expedia acquired an additional 25% equity interest in the former joint venture in March 2
Slide 15: Orbitz Worldwide Impact to Adjusted EBITDA
Orbitz Worldwide Impact to Adjusted EBITDA Q3 2015 $ millions Q3 2015 Y/Y Growth Expedia (excluding eLong) Adjusted EBITDA* 469 13% Orbitz Worldwide deal and integration costs (7) n/a Negative impact of consolidating the Orbitz Worldwide financial statements (10) n/a Total impact from Orbitz Worldwi
Slide 16: Investment Highlights
Investment Highlights A Leading Global Player in ~$1.3 Trillion Travel Market Significant Growth Opportunities Across Geographies Consistently Strong Financial Execution Technology Platform Innovation Driving Higher Conversion Success in Growing Mobile Channels A Growth Company High Growth Advertisi
Slide 17: expedia inc.
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Slide 18: Non-GAAP Definitions
Non-GAAP Definitions Adjusted EBITDA is defined as operating income plus: (1) stock-based compensation expense, including compensation expense related to certain subsidiary equity plans; (2) acquisition-related impacts, including (i) amortization of intangible assets and goodwill and intangible asse
Slide 19: Adjusted EBITDA Reconciliation
$ Millions 2012 2013 2014 TTM 3Q15 Adjusted EBITDA excluding eLong $804 $891 $1,051 $1,162 eLong Adjusted EBITDA (1) (12) (27) (89) Adjusted EBITDA $803 $879 $1,025 $1,073 Depreciation (164) (212) (266) (312) Amortization of Intangible Assets (32) (72) (80) (108) Legal Reserves , Occupancy Tax and O
Slide 20: Non-GAAP / GAAP Reconciliation: Free Cash Flow
Non-GAAP / GAAP Reconciliation: Free Cash Flow Note: Numbers may not sum due to rounding and include eLong $ Millions 2009 2010 2011 2012 2013 2014 TTM 3Q15 Cash provided by operations $574 $605 $826 $1,237 $763 $1,367 $1,342 Capital expenditures (79) (136) (208) (236) (309) (328) (714) Free cash fl
Slide 21: Q3 2015 Adjusted EBITDA Reconciliation
$ Millions 3Q15 Expedia (excluding eLong) Adjusted EBITDA excluding the Impacts of Orbitz Worldwide $486 Orbitz Worldwide Deal and Integration Costs (7) Negative Impact of Consolidating the Orbitz Worldwide Financial Statements (10) Expedia (excluding eLong) Adjusted EBITDA $469 eLong Adjusted EBITD