Global Business Travel Group, Inc. · NYSE:GBTG
Global Business Travel — Q2 2023 Earnings Presentation
26 slides from Global Business Travel's earnings presentation, Aug 10, 2023
Slide 1: Amex GBT Q2 2023 Earnings Report
Amex GBT Q2 2023 Earnings Report August 10, 2023
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 4
Slide 5: Presenter: Paul Abbott
Presenter PAUL ABBOTT Chief Executive Officer 5
Slide 6: Q2 2023 Highlights
Q2 2023 Highlights Q2 Highlights Proof Points ✓ Record Revenue and strong Adjusted EBITDA1 margin 1 Delivered outstanding financial results ✓ Returned to positive Free Cash Flow2 ✓ Q2 2023 results ahead of guidance & raised FY 2023 guidance ✓ Business travel growth continues 2 Positioned for strong
Slide 7: Q2 2023 Amex GBT Business Travel Growth
Q2 2023 Amex GBT Business Travel Growth Strong year-over-year growth driven by organic growth and share gains Transactions TTV $7,349M +12% +13% $6,527M Q2'22 Q2'23 Q2'22 Q2'23 7
Slide 8: Q2 2023 Amex GBT Transaction Growth Detail
Q2 2023 Amex GBT Transaction Growth Detail Fastest growth in SME and international transactions Customer Set Air Route 17% 15% 8% 4% GMN SME Domestic International Booking Type Region of Sale 13% 23% 9% 11% 11% Air Hotel Americas EMEA APAC Charts represent transaction growth in Q2 2023 vs. Q2 2022.
Slide 9: Q2'23 Amex GBT Peer Comparison
Q2’23 Amex GBT Peer Comparison Managed business travel growth compares favorably to major travel and business service peers Q2 2023 YOY Revenue Growth1 27% 22% 19% 17% 16% 14% 13% 12% 10% 8% 7% 8% 6% 5% 5% Expedia Sabre Amadeus Booking AA Delta United Marriott Hilton Iron Paychex EcoLab ADP Cintas H
Slide 10: Q2 2023 Commercial Highlights
Q2 2023 Commercial Highlights Commercial Leadership Record SME New Wins $3.4B $2.3B LTM Total New Wins Value1 LTM SME New Wins Value1 95% ~30% LTM Customer Retention Rate LTM SME New Wins Value From Unmanaged Compliance Leadership People Leadership 1. LTM New Wins Value represents estimated annual v
Slide 11: Q2 2023 Product & Technology Highlights
Q2 2023 Product & Technology Highlights Neo and Egencia digital transaction growth of 20% Expanded live agent chat services to Slack to efficiently manage travel in everyday solutions Awarded 5th patent for an invention that uses AI to monitor and improve customer satisfaction Egencia awarded 16 G2
Slide 12: Presenter: Karen Williams
Presenter KAREN WILLIAMS Chief Financial Officer 12
Slide 13: Amex GBT Financial Priorities
Amex GBT Financial Priorities 1 Achieve outstanding financial results and increase Free Cash Flow 2 Drive continued margin improvement 3 Invest to drive long-term sustained growth 13
Slide 14: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights Strong Revenue performance – ahead of guidance to reach highest reported quarterly Revenue on record Continued momentum on Adjusted EBITDA margin1 – ahead of guidance and 8ppt above Q2’22 Adjusted EBITDA margin1 Returned to positive Free Cash Flow2 – an important milesto
Slide 15: Q2 2023 Financial Results
Q2 2023 Financial Results ($M) Q2 2023 Q2 2022 B/(W) % Total Revenue $592 $486 22% Travel Revenue $479 $388 23% Products & Professional Services Revenue $113 $98 16% Adjusted EBITDA1 $106 $47 126% Adjusted EBITDA Margin2 18% 10% 8ppt Net cash provided by (used in) operating activities $46 $(155) NM
Slide 16: Continued Growth Supported by Customers and Industry Experts
Continued Growth Supported by Customers and Industry Experts Amex GBT’s customers expect continued solid year-over-year growth in H2 2023 travel spend1 84% of Top 100 customers expect travel spend flat or up in H2 2023 vs. H2 20221 Highest growth expected across industrials, communication services a
Slide 17: Raising FY 2023 Guidance
Raising FY 2023 Guidance1 Q3 2023 Q4 2023 Full-Year Key Items Guidance Guidance 2023 Guidance Transaction ▪ Transaction and TTV above previous ~9% YOY ~11% YOY ~20% YOY expectations – expect double digit Growth transaction growth in H2 2023 ▪ H2 revenue growth of 6-9% (Q4 revenue $2.25B – $2.28B Rev
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 18
Slide 19: Supplemental Materials
Supplemental Materials
Slide 20: H2 2023 Guidance
H2 2023 Guidance1 H2 2023 Guidance Transaction Growth ~10% YOY Revenue $1,080M – $1,110M Revenue Growth 6% – 9% YOY Adjusted EBITDA2 $160M – $180M Adjusted EBITDA Margin3 15% – 16% 1. See our Q2 2023 earnings release for a description of certain assumptions and risks associated with this guidance. 2
Slide 21: Glossary of Terms
Glossary of Terms B2B refers to business-to-business. Customer retention rate is calculated based on Total Transaction Value (TTV). GMN represents Global & Multinational Enterprises. LTM refers to the last twelve months. SME refers to clients Amex GBT considers small-to-medium-sized enterprises, whi
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures We report our financial results in accordance with GAAP. Our non-GAAP financial measures are provided in addition to, and should not be considered as an alternative to, other performance or liquidity measures derived in accordance with GAAP. Non-GAAP financial measures ha
Slide 23: Reconciliation of net loss to EBITDA and Adjusted EBITDA
Reconciliation of net loss to EBITDA and Adjusted EBITDA Three Months Ended June 30, ($ in millions) 2023 2022 Net loss $ (55) $ (2) Interest expense 35 24 Benefit from income taxes (2) (4) Depreciation and amortization 49 45 EBITDA 27 63 Restructuring and related charges(a) 13 (5) Integration costs
Slide 24: Reconciliation of net cash from operating activities to Free Cash Flow
Reconciliation of net cash provided by (used in) operating activities to Free Cash Flow Three Months Ended June 30, ($ in millions) 2023 2022 Net cash provided by (used in) operating activities $ 46 $ (155) Less: Purchase of property and equipment (27) (21) Free Cash Flow $ 19 $ (176) 24
Slide 25: Reconciliation of Net Debt
Reconciliation of Net Debt As of ($ in millions) June 30, 2023 December 31, 2022 Senior Secured Credit Agreement Principal amount of senior secured initial term loans $ 238 $ 239 (Maturity – August 2025)(1) Principal amount of senior secured tranche B-3 term loans 1,000 1,000 (Maturity – December 20
Slide 26: Reconciliation of Q3, Q4, H2 & FY 2023 Adjusted EBITDA Guidance
Reconciliation of Q3, Q4, H2 & FY 2023 Adjusted EBITDA Guidance Adjusted EBITDA guidance for the three months ending September 30, 2023 consists of expected net loss for the three months ending September 30, 2023, adjusted for: (i) interest expense of approximately $35-40 million; (ii) benefit for i
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