Slide 1: Q4 and FY 2023 Earnings Report
Q4 and FY 2023 Earnings Report 15 February 2024 ©2024 Sabre GLBL Inc. All rights reserved. 1
Slide 2: Forward-looking statements
Forward-looking statements Forward-looking Statements Certain statements herein are forward-looking statements about trends, future events, uncertainties and our plans and expectations of what may happen in the future. Any statements that are not historical or current facts are forward-looking state
Slide 3: Today's presenters
Today’s presenters Kurt Ekert Mike Randolfi President & CEO EVP & CFO ©2024 Sabre GLBL Inc. All rights reserved. 3
Slide 4: Agenda
Agenda 01 FY23 highlights and review 02 Travel industry overview 03 Growth strategies 04 Review of Q4 and FY23 financial results 05 2024 guidance and 2025 targets ©2024 Sabre GLBL Inc. All rights reserved. 4
Slide 5: Strong revenue and AEBITDA growth in 2023
Strong revenue and AEBITDA growth in 2023 Revenue Adjusted EBITDA +15% +$272M $2,908M $337M $2,537M ✓ Delivered positive free cash flow1 ✓ Expanded AEBITDA margins ✓ Invested to support growth 2020 $65M 2022 2023 2022 2023 1 Excluding restructuring ©2024 Sabre GLBL Inc. All rights reserved. 5
Slide 6: 2023 Highlights: Delivering on our priorities
2023 Highlights: Delivering on our priorities STRATEGIC PRIORITIES RECENT ACHIEVEMENTS GENERATE POSITIVE FREE • Generated positive free cash flow in 2023 (excl. restructuring) CASH FLOW / DE-LEVER THE • Reported 2023 AEBITDA of $337M, up $272M YoY BALANCE SHEET • Refinanced ~$1.5B of 2025 debt matur
Slide 7: Travel Solutions improving financials and industry share
Travel Solutions improving financials and industry share 2023 Financial Highlights TOTAL REVENUE GDS INDUSTRY BOOKINGS LGS BOOKINGS (Lodging, Ground and Sea) $2,642M 16% 27% Growth of 14% YoY YoY YoY TOTAL BOOKINGS PASSENGERS BOARDED GDS INDUSTRY SHARE 355M 689M 33.8% Growth of 18% YoY Growth of 8%
Slide 8: Faster GDS industry bookings growth vs. broader industry
Faster GDS industry bookings growth vs. broader industry Four consecutive quarters of GDS industry booking YoY share gains Share of GDS Industry Bookings +1.2pts 33.8% ✓ Achieved YoY share gains in every +0.2pts quarter of 2023 33.2% ✓ Increased share by +0.8pts YoY in 33.0% 2023 (ex-EXPE) ✓ Expect
Slide 9: Strengthening Hospitality Solutions performance
Strengthening Hospitality Solutions performance Accelerating Revenue Growth +20% CAGR $304M $255M TOTAL REVENUE ADJUSTED EBITDA $304M $13M $203M Growth of 19% YoY in ‘23 ~$40M Improvement YoY in ‘23 $175M CENTRAL RESERVATION RECURRING REVENUE* SYSTEM TRANSACTIONS 2020 79% 122M As a % of total revenu
Slide 10: Technology transformation remains on track
Technology transformation remains on track Q4 and FY23 Accomplishments Unit Costs Continue to Decline • Exceeded mainframe and cloud cost reduction targets • Substantially completed Tulsa cloud migration Cost of compute down ~50% since 2019 • Nearing completion of planned migrations with >90% total
Slide 11: Recent commercial wins driving sustainable growth
Recent commercial wins driving sustainable growth ©2024 Sabre GLBL Inc. All rights reserved. 11
Slide 12: Solid air industry travel demand
Solid air industry travel demand Global air passengers CAGR 7.0 Positive Q1 and ’24 recent (‘13 – ‘19): 6.3% (’23F – ’28F): 6.9% industry commentary: 6.0 6.0 Passenger air traffic (Billions) 5.8 Corporate Travel Took ‘Significant Step Up’ in 5.6 5.4 Annual passengers (billions) January 5.0 4.8 - Uni
Slide 13: Growth strategies
Growth strategies Multi-Source Content Platform Distribution Expansion Hotel B2B Distribution Digital Payments Next-Gen Airline IT Hospitality Solutions/Retail Studio confidential | ©2024 Sabre GLBL Inc. All rights reserved. 13
Slide 14: 2023 financial highlights
2023 financial highlights ✓ Achieved 2023 AEBITDA of $337M, up $272M YoY ✓ Produced positive free cash flow in FY23 (excluding restructuring) ✓ Expanded 2023 AEBITDA margin by 9ppts to ~12% ✓ Generated cash from operations of $56M in FY23, up $333M YoY ✓ Delivered revenue growth of 15% YoY or $371M
Slide 15: Fourth Quarter and Full Year 2023 financial results
Fourth Quarter and Full Year 2023 financial results Q4’22 Q4’23 FY 2022 FY 2023 Revenue $631M $687M $2.5B $2.9B +$56M YoY +$371M YoY AEBITDA(1) $1M $96M $65M $337M +$94M YoY +$272M YoY $77M ($31M) Free cash flow(1) $22M Incl. $9M of restructuring ($346M) Incl. $54M of restructuring 1 Adjusted EBITDA
Slide 16: Significant YOY financial improvement in Q4'23
Significant YOY financial improvement in Q4’23 Q4’22 Q4’23 Commentary Total Revenue $631M $687M YOY improvement driven by increase in global air, hotel and other travel bookings Travel Solutions $574M $622M Distribution bookings up 3% vs. Q4’22 Distribution $417M $476M Average booking fee of $6.09,
Slide 17: 2024 guidance and 2025 targets
2024 guidance and 2025 targets Q1’24 FY 2024 FY 2025 Revenue ~$750M >$3.0B AEBITDA ~$115M >$500M >$700M Cash interest ~$350M ~$350M Capex ~$100M ~$100M Free cash flow ~($100M) Positive >$200M *impacted by Q1 seasonality The information presented here represents forward-looking statements and reflect
Slide 18: Targeting >$700M of AEBITDA in 2025
Targeting >$700M of AEBITDA in 2025 ($ in millions) ~$800M subject to potential + $100M +$100M GDS industry volume growth >$700M ~$115M ~$250M $337M 2023 AEBITDA Cost Efficiency Growth Strategies Potential GDS Industry 2025 AEBITDA Volume Benefit Potential benefit from 4.0 Targeting >$700M; pts of a
Slide 19: Expect >$500M of AEBITDA in 2024
Expect >$500M of AEBITDA in 2024 ($ in millions) ~$550M subject to potential +$50M +$50M GDS industry volume growth ~$30M >$500M ~$135M $337M 2023 AEBITDA Cost Efficiency Growth Strategies Potential GDS Industry 2024 AEBITDA Volume Benefit (1) Growth strategies include fully-allocated AEBITDA growth
Slide 20: Thank you
Thank you Thank you ©2024 Sabre GLBL Inc. All rights reserved. 20
Slide 21: APPENDIX
APPENDIX
Slide 22: Business outlook and financial guidance
Business outlook and financial guidance • First quarter 2024 Adjusted EBITDA guidance consists of first quarter expected net loss attributable to common stockholders of approximately $75 million; less the impact of acquisition- related amortization of approximately $9 million; stock-based compensati
Slide 23: Non-GAAP financial measures
Non-GAAP financial measures We have included both financial measures compiled in accordance with GAAP and certain non-GAAP financial measures, including Adjusted Operating Income (Loss), Adjusted Net Loss from continuing operations ("Adjusted Net Loss"), Adjusted EBITDA, Adjusted EPS, Free Cash Flow
Slide 24: Non-GAAP financial measures
Non-GAAP financial measures Adjusted Operating Income (Loss), Adjusted Net Loss, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Free Cash Flow and ratios based on these financial measures are not recognized terms under GAAP. These non-GAAP financial measures and ratios based on them are unau
Slide 25: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of net loss attributable to common stockholders to Adjusted Net Loss from continuing operations, Operating income (loss) to Adjusted Operating Income (Loss), and loss from continuing operations to Adjusted EBITDA: (in thousands, except per
Slide 26: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures ©2024 Sabre GLBL Inc. All rights reserved. 26
Slide 27: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of Adjusted Operating Income (Loss) to operating income (loss) in our statement of operations and Adjusted EBITDA to loss from continuing operations in our statement of operations by business segment: (in thousands; unaudited) ©2024 Sabre
Slide 28: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of Adjusted Operating Income (Loss) to operating income (loss) in our statement of operations and Adjusted EBITDA to loss from continuing operations in our statement of operations by business segment: (in thousands; unaudited) ©2024 Sabre
Slide 29: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of Adjusted Operating Income (Loss) to operating income (loss) in our statement of operations and Adjusted EBITDA to loss from continuing operations in our statement of operations by business segment: (in thousands; unaudited) ©2024 Sabre
Slide 30: Tabular reconciliations for Non-GAAP measures
Tabular reconciliations for Non-GAAP measures Reconciliation of Adjusted Operating Income (Loss) to operating income (loss) in our statement of operations and Adjusted EBITDA to loss from continuing operations in our statement of operations by business segment: (in thousands; unaudited) ©2024 Sabre
Slide 31: Non-GAAP footnotes
Non-GAAP footnotes (1) Net income attributable to noncontrolling interests represents an adjustment to include earnings allocated to noncontrolling interests held in (i) Sabre Travel Network Middle East of 40% (ii), Sabre Seyahat Dagitim Sistemleri A.S. of 40%, (iii) Sabre Travel Network Lanka (Pte)