Global Business Travel Group, Inc. · NYSE:GBTG
Global Business Travel — Q3 2023 Earnings Presentation
28 slides from Global Business Travel's earnings presentation, Nov 7, 2023
Slide 1: Amex GBT Q3 2023 Earnings Report
Amex GBT Q3 2023 Earnings Report November 7, 2023 GBT Travel Services UK Limited (GBT UK) and its authorized sublicensees (including Ovation Travel Group and Egencia) use certain trademarks and service marks of American Express Company or its subsidiaries (American Express) in the “American Express
Slide 2: Legal Disclaimer: Forward-Looking Statements
Legal Disclaimer Forward-Looking Statements This communication contains statements that are forward-looking and as such are not historical facts. This includes, without limitation, statements regarding our financial position, business strategy, the plans and objectives of management for future opera
Slide 3: Legal Disclaimer: Industry and Market Data
Legal Disclaimer Industry and Market Data This presentation also contains information, estimates and other statistical data derived from third party sources, including research, surveys or studies, some of which are preliminary drafts, conducted by third parties, information provided by customers an
Slide 4: Today's Presenters
Today’s Presenters PAUL KAREN ABBOTT WILLIAMS Chief Executive Chief Financial Officer Officer This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT). No disclosure or use of any portion of these materials may be made withou
Slide 5: Presenter: Paul Abbott
Presenter PAUL ABBOTT Chief Executive Officer This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT). No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 202
Slide 6: Q3 2023 Highlights
Q3 2023 Highlights Q3 Highlights Proof Points ✓ Strong revenue and Adjusted EBITDA1 growth of 17% and 135%, Delivered outstanding financial 1 results respectively ✓ Free Cash Flow2 positive year-to-date ✓ Strong LTM New Wins Value3 of $3.3B 2 Continued share gains ✓ 77% of transactions through digit
Slide 7: Q3 2023 Amex GBT Business Travel Growth
Q3 2023 Amex GBT Business Travel Growth1 Transactions TTV2 +9% +10% Q3'22 Q3'23 Q3'22 Q3'23 +7% Reported +8% Reported 1. Workday Adjusted. There were 63.6 average workdays in Q3 2023 compared to 64.4 average workdays in Q3 2022, and percentages are adjusted to reflect growth metrics assuming 63.6 wo
Slide 8: Q3 2023 Amex GBT Transaction Growth Detail
Q3 2023 Amex GBT Transaction Growth Detail1 Customer Set Air Route 10% 7% 7% 5% GMN SME Domestic International Booking Type Region of Sale 11% 12% 9% 8% 6% Air Hotel Americas EMEA APAC 1. Charts represent transaction growth in Q3 2023 vs. Q3 2022 and are Workday Adjusted. There were 63.6 average wor
Slide 9: Q3 2023 Commercial Highlights
Q3 2023 Commercial Highlights Commercial Leadership SME New Wins $3.3B $2.2B LTM Total New Wins Value1 LTM SME New Wins Value1 95% ~30% LTM Customer Retention Rate LTM SME New Wins Value1 From Unmanaged Key New Wins ESG Leadership 1. LTM New Wins Value represents estimated annual value of wins over
Slide 10: Q3 2023 Product & Technology Leadership
Q3 2023 Product & Technology Leadership 77% of transactions through digital channels Digital transaction growth of 13% and >60% of bookings now through our own software platforms, Egencia and Neo Implementing AI-powered solutions to improve productivity and reduce costs 40% of our costs are people s
Slide 11: Presenter: Karen Williams
Presenter KAREN WILLIAMS Chief Financial Officer This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT). No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. ©
Slide 12: Amex GBT Financial Priorities
Amex GBT Financial Priorities 1 Achieve outstanding financial results and increase Free Cash Flow1 2 Drive continued margin improvement 3 Invest to drive long-term sustained growth 1. Free Cash Flow is a non-GAAP measure. Please refer to the Supplemental Materials section for reconciliation of Free
Slide 13: Q3 2023 Financial Highlights
Q3 2023 Financial Highlights Strong Revenue growth of 17% – ahead of guidance, driven by transaction growth and strong revenue yield of 8.0% Continued momentum on Adjusted EBITDA margin1 – 9ppt above Q3’22 and 2ppt above Q3’19PF2 Positive Q3 Free Cash Flow3, totaling $107M – FCF3 positive for the fu
Slide 14: Q3 2023 Financial Results
Q3 2023 Financial Results Q3 2023 Q3 2023 YOY % Increase/ ($M) Results Guidance (Decrease) Total Revenue $571 $545 – $560 17% Revenue Yield1 8.0% 0.6ppt Adjusted Operating Expenses2 $476 7% Adjusted EBITDA3 $95 $85 – $95 135% Adjusted EBITDA Margin4 17% 9ppt Net cash provided by operating activities
Slide 15: Reducing Net Debt and Leverage
Reducing Net Debt1 and Leverage Reduction in leverage driving 75bps stepdown in term loan rate in Q4’23 Additional 75bps reduction expected in Q1’24 Net Debt1 Leverage Ratio ($M) (Net Debt1/LTM Adjusted EBITDA2) 1,035 8.9x 1,024 4.5x 927 3.5x 919 2.7x Q4'22 Q1'23 Q2'23 Q3'23 Q4'22 Q1'23 Q2'23 Q3'23
Slide 16: Maintaining Q4 2023 & FY 2023 Guidance
Maintaining Q4 2023 & FY 2023 Guidance1 Expect to be at high end of revenue and closer to the midpoint of FY 2023 Adjusted EBITDA2 guidance; expect to be Free Cash Flow4 positive for FY 2023 Full-Year Q4 2023 Guidance 2023 Guidance Revenue $535M – $550M $2.25B – $2.28B Revenue Growth 2% – 4% YOY 22%
Slide 17: FY 2024 Outlook
FY 2024 Outlook Macroeconomic and political environment continues to present uncertainty 88% of our top 100 customers expect travel spend to be flat or higher in 20241 GBTA Poll – 72% of buyers expect travel budgets to increase or hold steady in 20242 Net new wins expected to contribute 4-5ppt volum
Slide 18: Q&A
Q&A PAUL KAREN ERIC ABBOTT WILLIAMS BOCK Chief Executive Chief Financial Chief Legal Officer, Officer Officer Corporate Secretary & Global Head of M&A This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT). No disclosure or
Slide 19: Supplemental Materials
Supplemental Materials This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT). No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2023 GBT Travel Services U
Slide 20: Free Cash Flow Detail
Free Cash Flow1 Detail FY 2023 Guidance2 2024 Outlook Guidance $365-385m • Cash interest – expect 75bps stepdown in term loan rate in Q4’23 and 75bps stepdown in Q1’24 • Capex – expect to increase with incremental investments; targeting FY Benefit 5-6% of revenue ~$120 - 140m ~$145m • Pension – expe
Slide 21: Glossary of Terms
Glossary of Terms B2B refers to business-to-business. Customer retention rate is calculated based on Total Transaction Value (TTV). GMN represents Global & Multinational Enterprises. LTM refers to the last twelve months. NDC (New Distribution Capability) is a travel industry-supported program launch
Slide 22: 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 measures derived in accordance with GAAP. Non-GAAP financial measures ha
Slide 23: Non-GAAP Financial Measures, Continued
Non-GAAP Financial Measures, Continued EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses should not be considered as measures of liquidity or as measures determining discretionary cash available to us to reinvest in the growth of our business or as measures of cash that
Slide 24: Reconciliation of net loss to EBITDA and Adjusted EBITDA
Reconciliation of net loss to EBITDA and Adjusted EBITDA Three months ended September 30, (in $ millions) 2023 2022 Net loss $ (8) $ (73) Interest expense 36 26 Benefit from income taxes (2) (10) Depreciation and amortization 50 45 EBITDA 76 (12) Restructuring, exit and related charges (a) 13 (2) In
Slide 25: Reconciliation of total operating expenses to Adjusted Operating Expenses
Reconciliation of total operating expenses to Adjusted Operating Expenses Three months ended September 30, (in $ millions) 2023 2022 Total operating expenses $ 575 $ 533 Adjustments: Depreciation and amortization (50) (45) Restructuring, exit and related charges (a) (13) 2 Integration costs (b) (10)
Slide 26: Reconciliation of net cash from operating activities to Free Cash Flow
Reconciliation of net cash from (used in) operating activities to Free Cash Flow Three Months Ended September 30, ($ in millions) 2023 2022 Net cash from (used in) operating activities $ 135 $ (81) Less: Purchase of property and equipment (28) (31) Free Cash Flow $ 107 $ (112) This document contains
Slide 27: Reconciliation of Net Debt
Reconciliation of Net Debt As of (in $ millions) September 30, 2023 December 31, 2022 Senior Secured Credit Agreement Principal amount of senior secured initial term loans (Maturity – August 2025)(1) $ 238 $ 239 Principal amount of senior secured tranche B-3 term loans (Maturity – December 2026)(2)
Slide 28: Reconciliation of Q4 2023 & FY 2023 Adjusted EBITDA Guidance
Reconciliation of Q4 2023 & FY 2023 Adjusted EBITDA Guidance Adjusted EBITDA guidance for the three months ending December 31, 2023 consists of expected net loss for the three months ending December 31, 2023, adjusted for: (i) interest expense of approximately $35-40 million; (ii) benefit for income
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