Global Business Travel Group, Inc. · NYSE:GBTG
Global Business Travel — Apollo Strategic Growth Capital — SPAC Merger (March 2022)
23 slides from Global Business Travel's SPAC merger presentation, Mar 8, 2022
Slide 1: March 8, 2022
March 8, 2022 AMERICAN EXBRESS
Slide 2: Legal Disclaimer: Forward-Looking Statements
2 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 a
Slide 3: Legal Disclaimer: Use of Projections
3 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 con sti tutes forward - looking information and are presented as g
Slide 4: Agenda
4 Agenda 2.1. Long - term Growth Drivers For GBT 2.2. EBITDA Margin Trend And Opportunity 2.3. Free Cash Flow Drivers 1. 2021 Q4 and FY Results and Trading Update 2. Financial Matters
Slide 5: 2021 Highlights
5 2021 Highlights ► Delivered $3.7B new wins value 6 , which represents 10% of 2019 pro forma TTV 6 , 95% customer retention rate 7 , 92% customer satisfaction score 7 and major new customer wins ► Significantly increased value, choice and experiences for customers with acquisitions of Ovation Trave
Slide 6: 2021 Highlights: Financial Results Well Above Forecast (FY)
6 2021 Highlights: Financial Results Well Above Forecast 1 (FY) Year Ended Dec. 31, 2021 ($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 +
Slide 7: 2021 Highlights: Corporate Travel Recovery Continuing
7 0% 10% 20% 30% 40% 50% 60% 2021 Highlights: Corporate Travel Recovery Continuing Monthly Gross Transaction 1 Recovery vs. 2019 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 b
Slide 8: Underlying Historical Organic Growth Underpinned By Existing Customer Growth And Share Gain
8 Underlying Historical Organic Growth Underpinned By Existing Customer Growth And Share Gain 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 acquisi
Slide 9: Large And Attractive SME Platform For Accelerated Growth
9 Large And Attractive SME Platform For Accelerated Growth Source: GBTA, JP Morgan T&E Benchmark, ARC, Phocuswright , Airlines for America, European Business Travel Barometer survey, iResearch China Underlying historical SME annual growth: 7% Based on GBT SME, Egencia and Ovation TTV growth in 2017
Slide 10: 2019A–2023A GBT + Egencia EBITDA Bridge
10 $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 cost add-back Permanent Cost Benefits Share gain Inflation/Merit Egencia Synergies 2023 PF adj. EBITDA forecast
Slide 11: Margin Expansion Opportunity at 70-100% Industry Recovery
11 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 revenue is 100% recovered (vs. 85% in 2023). Margin Expansion Opportunity of 4 - 10pts at 70 - 100% Industry Recovery ► Forecast assum
Slide 12: Expect Long-term Free Cash Flow Conversion of ~45%
12 Expect Long - term Free Cash Flow Conversion of ~45% 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 in) from operating activities, less cash used for addit
Slide 13: Strong Liquidity Position After Pending Business Combination
13 Strong Liquidity Position After Pending Business Combination ► Ended 2021 with solid cash balance of $516M ► December 2021 debt refinancing provided $400M of incremental financing ► Pending business combination adds up to $817M cash held in trust (subject to redemptions) ► Upsized and oversubscri
Slide 14: Highly Attractive and Differentiated Investment Opportunity
14 Leading B2B Travel Platform, With Strong Brand and Strategic Shareholders Unique Model With Strong Value Proposition to Customers and Suppliers Enabled by Cutting - Edge Technology Multiple Avenues to Accelerate Growth and Create Value Well - Positioned for Recovery in the Large and Resilient Tra
Slide 15: Supplemental Materials
Supplemental Materials
Slide 16: 2021 Highlights: Financial Results (Q4)
16 2021 Highlights: Financial Results (Q4) ($M; 2021 amounts are preliminary and unaudited) Q4 2021 Q4 2020 B/(W) % Commentary Total Transaction Value (TTV) 1 $2,763 $470 488% Driven by recovery in travel from the COVID - 19 pandemic. Transactions Growth (Decline) 2 348% (87%) Total Revenue $287 $13
Slide 17: 2021 Highlights: Financial Results (FY)
17 2021 Highlights: Financial Results (FY) ($M; 2021 amounts are preliminary and unaudited) FY 2021 FY 2020 B/(W) % Commentary Total Transaction Value (TTV) 1 $6,799 $5,941 14% Driven by stronger recovery in travel in the second half of 2021, partially offset by travel restrictions and the adverse i
Slide 18: Non-GAAP Financial Measures
18 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 mea
Slide 19: Non-GAAP Financial Measures, Cont.
19 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 ra
Slide 20: Adjusted EBITDA Reconciliation 2015A-2020A
20 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 Se
Slide 21: Tabular Reconciliations for Non-GAAP Measures
21 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,
Slide 22: Tabular Reconciliations for Non-GAAP Measures
22 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 o
Slide 23: Tabular Reconciliations for Non-GAAP Measures: Free Cash Flow
23 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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