Expedia Group, Inc. · NASDAQ:EXPE
Expedia — Investor Presentation (February 2015)
20 slides from Expedia's investor presentation, Feb 5, 2015
Slide 1: Investor Presentation February 5, 2015
Exhibit 99.2 INVESTOR PRESENTATION February 5, 2015
Slide 2: Forward-Looking Statements
Safe not risks are looking prospects for expand to rules regulations, including systems; conflicts standards failure related covenants public or in GAAP reports Trademarks adapt this practices other anot guarantees Harbor variety and orpresentation filings to measures to the prepared our regulations
Slide 3: Investment Highlights
Investment Hotel Advertising Industry Highlights & Media Supported Business Global by Multi-Product Leader Consistent in ~$1.3 financial Offering Trillion execution Technology Market Solid with Platform Strong Track Record Innovation Offline-to-Online of Disciplined DrivingTrends Higher Capital Sign
Slide 4: Diverse supply and demand scale
OneMillion ~435,000 4.9 of theHotels Largest Leisure inTravel Beneficial Travel;Companies Packages Value to Online in5the Billion World and 200+ Offline Depth Countries and Volume Supply andTravelers Breadth Flight of Diversity Searches of Global Agreements TravelTravelers SUPPLYinDiverse 400+ Airli
Slide 5: Established Travel and Corporate Brands
EstablishedTravel Corporate Brands31With SitesGlobal in 89 Sites Reachin Trusted Sites in Brands Presence #1inFull-Service 31 Countries1 A Leading 68 Countries Hotel 49 A Leading Countries Hotel 64 Countries A Leader Brand in Global Strength Online inTravel EVERY Agency Established Specialist Market
Slide 6: Diversifying Revenue Mix
Diversifying Cruise & Car,Revenue Cruise &Mix PRODUCT Reduces Other Risk and Other Positions Ad & Media the Business 13% 14%for Growth 2% Ad &2005 Media 2014 AirRevenue 8% 22%Revenue Air Hotels GEOGRAPHY 8% Hotels 63% International 70% International 22% 47% Domestic Domestic 78% 53% Car,
Slide 7: Global Leader with Significant Headroom for Further Growth
Global 16% Other year Eastern 2014. 6% Other Leader Europe 5%Note: Other 5%and and TRAVEL Expedia’s Other Significant Middle Total SEGMENT share East. Headroom Travel 7of travel Market Other for market Further Other ~$1.3T defined Other Growth $355B Other by$470B TTM UNITED 41% gross $342B ofEMEA To
Slide 8: Rapidly Expanding Hotel Segment in Fragmented Industry
Rapidly Revenues Hotel Acquisition Expanding 890,000~7% Other¹ in Fragmented Share3 718,000 100,000 ~435k Hotel Segment Hotels2 in of Hotels the Travel 200+Industry Countries … And 70% Significant Single Largest Room 592,000 for Expedia, Air Booker Inc. Has of Global Scale Team in Hotels Rooms… Addi
Slide 9: Transactional Infrastructure: Significant Technology Investments
Have Completed Transactional Infrastructure: Significant Technology Financials / Order Investments Management That Fortify / Inventory the Business Management echnol pid Inn Powe ics … Conversion CENTRALIZED Customer Operations Technology CENTRALIZED
Slide 10: Industry Leading Mobile Innovation
Industry Leading Proposition Innovation allowing travelers Expedia to Room Mobile toHotels the Nights iTunes Initiatives &Customers: Flights StoreDrive among easily 24Traffic xtrack Google’s 7 Mobile and theirRevenue Tripdeck flights Users Booked inThe feature a simple World ononaitinerary, Is “Best
Slide 11: Significant Acceleration in the Advertising and Media Business
Significant 2012 2013 2013 2014 Acceleration ’09-’11 in CAGR the Advertising : 6.8% ’11-’14 and Media CAGRBusiness : 61.8% Note: ADVERTISING Reported numbers & MEDIAare net REVENUE of any intercompany $ Millions #1revenue hotel metasearch 1 Controlling in Europe interest$479 in trivago $3191GmbH $11
Slide 12: Expedia Has Multiple Competitive Moats
Expedia Relationships and Product HasOfferings Multiple ? LeisureCompetitive DIVERSE DEMAND Moats TECHNOLOGY ? Corporate ?PLATFORM Call Centers Investment Multiple Sources in Technology ? Traditional to Drive Travel Conversion Agency ?and Online Bookings SCALESUPPLY and BREADTH Global Travel Global
Slide 13: Consistent Financial Execution
Consistent 2011 $2.10 measure. 2012 $2.53 See 2013 Financial $700 Appendix 2014 $711Execution 2009 $662 A for2010 2009 Non-GAAP GROSS 2011 20102012 2011 BOOKINGS to 2013 GAAP 20122014 2013 Reconciliation REVENUE ADJUSTED 2014 2009$3Billions 2010 Adj. EBITDA1 EPS 2011 $50 is2012 ADJUSTED $EPS Billion
Slide 14: Solid Track Record of Disciplined Capital Allocation
Solid 2009 $455 Track2010 Record 2011 of 2012 Disciplined 2013 2014 Capital 2010 Allocation 2011 2012SHARE 2013 2014 REPURCHASES2 SPIN-OFFS ACQUISITIONS FREE CASH FLOW1 2011 2013 Millions 2014$2015 Millions $1,039 10.3 10.7 5-Year CAGR: 16% $1,001 9.3 7.0 $618 $495 5.3 $469
Slide 15: Investment Highlights
Investment Hotel Advertising Industry Highlights & Media Supported Business Global by Multi-Product Leader Consistent in ~$1.3 financial Offering Trillion execution Technology Market Solid with Platform Strong Track Record Innovation Offline-to-Online of Disciplined DrivingTrends Higher Capital Sign
Slide 16: Appendices
expedia inc. APPENDICES
Slide 17: Non-GAAP Definitions
Non-GAAP (2) consideration included final activities timing measure historical individual options treats investors which to ourthe acquisition-related net settlements, them cash core capital are of income and for in that because these results not business operations operating on Legal warrants Defin
Slide 18: Non-GAAP / GAAP Reconciliation: Adjusted EBITDA
Non-GAAP (72) Assets ——(10)—Restructuring Expense, (102) (2,521) $398 (93) (120) (234) 304 (106) Net(76) 426 /—GAAP (66) (133) — 475 (47) (78) —280 Reconciliation: (164) (84) Legal (75) 216 Charges—(34) (92) (212) (78) Reserves 373 Income (82) (266) NetAdjusted (65) (Income) , (Loss) Amortization Oc
Slide 19: Non-GAAP / GAAP Reconciliation: Adjusted EPS
Non-GAAP $280,171 Amortization (2,783) Balances Long-Lived — Interests $312,774 Stock Operations Amort. Units Legal (3,837) Held $232,850 $369,611 of Per 6,886 Assets / Intangible GAAP of Reserves, by Share Intangibles (1,343) 8,586 3,183 233,900— $384,487 $398,097 Reconciliation: $1.97 Assets Occup
Slide 20: Non-GAAP / GAAP Reconciliation: Free Cash Flow
Non-GAAP (79) (136) (208) / GAAP (236)Reconciliation: (309) (328) Free Free cash Cash flow Flow $495 $ Millions $469 $6182009 $1,001 2010$455 2011$1,039 2012 2013 2014 Cash provided by operations $574 $605 $826 $1,237 $763 $1,367 Capital expenditures