Global Business Travel Group, Inc. · NYSE:GBTG
Global Business Travel — Q1 2023 Earnings Presentation
30 slides from Global Business Travel's earnings presentation, May 9, 2023
Slide 1: Amex GBT Q1 2023 Earnings Report
Amex GBT Q1 2023 Earnings Report May 9, 2023
Slide 2: Legal Disclaimer: Forward-Looking Statements
Legal Disclaimer Forward-Looking Statements These slides and the related presentation contain statements that are forward-looking and as such are not historical facts. This includes, without limitation, statements regarding our financial position, business strategy and the plans and objectives of ma
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 ABBOTT MARTINE GEROW KAREN WILLIAMS Chief Executive Officer Chief Financial Officer Deputy Chief Financial Officer 4
Slide 5: Presenter: Paul Abbott
Presenter PAUL ABBOTT Chief Executive Officer 5
Slide 6: Q1 2023: A Strong Start to the Year
Q1 2023: A Strong Start to the Year Strong Revenue & Significant New Wins & Strong SME Growth Adj. EBITDA Growth Continued Share Gains ▪ Revenue totaled $578M, up ▪ SME transactions grew 61% ▪ Total transactions grew 61% 65% year-over-year year-over-year to reach 88% of year-over-year to reach 76% o
Slide 7: Business Travel Growth Continues
Business Travel Growth Continues Strong year-over-year growth driven by continued recovery and share gains Transactions TTV $7,422 Revenue $578 +88% +65% +61% $3,943 $350 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Transaction recovery reached 76% of 2019 pro TTV recovery reached 73% of 2019 pro forma1 Reve
Slide 8: Business Travel Growth Continues: Detailed Trends
Business Travel Growth Continues: Detailed Trends Q1 2023 vs. Q1 2022 year-over-year transaction growth driven by strong growth in international, particularly APAC Customer Segment Air Route 81% 61% 61% 49% GMN SME Domestic International Booking Type Region of Sale 114% 60% 62% 63% 52% Air Hotel Ame
Slide 9: Q1 2023 Commercial Highlights
Q1 2023 Commercial Highlights Commercial Leadership Technology Leadership Launching NDC2 content with Air France-KLM $3.4B ▪ New content enabled through Amadeus NDC-X LTM New Wins Value1 connections ▪ Sets NDC standard for managed travel 95% LTM Customer Retention Rate New Sustainability Features ▪
Slide 10: Q1 2023 Strategic Highlights
Q1 2023 Strategic Highlights Nearly One Year Since Going Public, Delivering on our Commitments Strategic Priorities Proof Points Travel Momentum Continues Q1 2023 YOY revenue growth of 65% and transaction growth of 61% Share Gains LTM Total New Wins Value of $3.4B at current recovery levels1 LTM SME
Slide 11: Presenter: Martine Gerow
Presenter MARTINE GEROW Chief Financial Officer 11
Slide 12: Q1 2023 Financial Results Summary
Q1 2023 Financial Results Summary ($M) Q1 2023 Q1 2022 B/(W) % Total Transaction Value (TTV) $7,422 $3,943 88% Total Revenue $578 $350 65% Travel Revenue $467 $257 82% Products & Professional Services Revenue $111 $93 19% Adjusted EBITDA1 $99 ($28) NM Adjusted EBITDA margin2 17% (8%) 1. Adjusted EBI
Slide 13: Expect to Generate Positive Free Cash Flow in Q3 & Q4 2023
Expect to Generate Positive Free Cash Flow in Q3 & Q4 2023 ($M) Q1 2023 Liquidity & Capital Structure Highlights Net loss ($27) ▪ Q1 2023 cash usage driven by continued recovery, Non-cash charges and credits add-back 58 volume seasonality and timing of annual incentive payments Changes in working ca
Slide 14: Presenter: Paul Abbott
Presenter PAUL ABBOTT Chief Executive Officer 14
Slide 15: Outpacing the Industry for Continued Growth in 2023
Outpacing the Industry for Continued Growth in 2023 Continued Recovery in Business Travel Amex GBT Meetings & Events Recovery Transaction Recovery >100% 76% 72% 68% 62% ~85% Jan’23 April’23 Q4’22 Q1’23 M&E Projects M&E Spend GBTA Poll Amex GBT H1'23 H1'23 ▪ Domestic and international bookings curren
Slide 16: Presenter: Karen Williams
Presenter KAREN WILLIAMS Deputy Chief Financial Officer 16
Slide 17: FY 2023 Guidance
FY 2023 Guidance1 2023 Key Drivers Full-Year 2023 Guidance ▪ Reaffirming guidance Revenue $2.17B – $2.22B ▪ Expect FY revenue yield largely in line with Q1 ▪ Expect single-digit OpEx growth % Revenue Growth 17% – 20% YOY ▪ Operational efficiencies, synergies and reorganization to drive margin expans
Slide 18: Q2 2023 Guidance
Q2 2023 Guidance1 Q2 2023 Key Drivers Q2 2023 Guidance ▪ Expect 14-18% revenue growth Revenue $555M – $575M ▪ Revenue yield largely in line with Q1 ▪ OpEx to start trending down sequentially % Revenue Growth 14% – 18% YOY ▪ Expect approaching break-even FCF Adjusted EBITDA2 $85M – $100M Adjusted EBI
Slide 19: Q&A
Q&A PAUL MARTINE KAREN ERIC ABBOTT GEROW WILLIAMS BOCK Chief Executive Chief Financial Deputy Chief Chief Legal Officer, Officer Officer Financial Officer Corporate Secretary & Global Head of M&A 19
Slide 20: Supplemental Materials
Supplemental Materials
Slide 21: TTV Seasonality (Pro Forma)
TTV Seasonality (Pro Forma1) TTV ($M) TTV by Quarter (% of Full Year) TTV by Half Year (% of Full Year) 10,107 9,710 9,431 8,436 22% 26% 7,422 47% 54% 48% 6,527 6,585 25% 29% 5,913 26% 28% 3,943 53% 46% 52% 27% 26% 17% Q1 Q2 Q3 Q4 2019PF 1 2022A 2023 2019PF1 2022A 2023 Forecast Forecast 2019PF1 2022
Slide 22: TTV, Revenue and Adjusted EBITDA Seasonality (Pro Forma)
TTV, Revenue and Adjusted EBITDA1 Seasonality (Pro Forma2) TTV by Half Year Revenue by Half Year Adjusted EBITDA1 by Half Year (% of Full Year (% of Full Year) (% of Full Year) 47% 48% 49% 48% 45% 45% 54% 55% 82% 53% 52% 51% 52% 55% 55% 46% 45% 18% 2019PF2 2022A 2023 2019PF2 2022A 2023 2019PF2 2022A
Slide 23: Revenue Yield Seasonality (Pro Forma)
Revenue Yield Seasonality (Pro Forma1) Travel Revenue Yield (% of TTV) Product & Professional Services Revenue by Quarter - % of Full Yield (% of TTV) Year Q4 7.0% Q4 1.9% 6.6% 1.7% 25% 28% Q3 5.9% Q3 1.5% 24% 5.8% 1.5% 26% Q2 5.9% Q2 1.5% 26% 26% 26% 6.1% 1.6% 6.3% 1.5% 25% 26% 19% Q1 6.5% Q1 2.4%
Slide 24: Working Capital Seasonality
Working Capital Seasonality AR & AP Balances1 Accrued Expenses & NWC Variance (Quarterly) (% TTV) Other Current Liabilities 14% 13% 14% 519 165 13% 13% 11% 8% 449 453 441 101 6% 6% 6% 426 90 5% 5% 410 77 12 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'22 Q4'
Slide 25: 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, whic
Slide 26: 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 measure derived in accordance with GAAP. Non-GAAP financial measures hav
Slide 27: Reconciliation of net loss to EBITDA and Adjusted EBITDA
Reconciliation of net loss to EBITDA and Adjusted EBITDA Three Months Ended March 31, ($ in millions) 2023 2022 Net loss $ (28) $ (91) Interest expense 34 19 Benefit from income taxes (8) (25) Depreciation and amortization 46 44 EBITDA 45 (53) Restructuring charges(a) 23 2 Integration costs(b) 8 9 M
Slide 28: Reconciliation of net cash used in operating activities to Free Cash Flow
Reconciliation of net cash used in operating activities to Free Cash Flow Three Months Ended March 31, ($ in millions) 2023 2022 Net cash used in operating activities $ (78) $ (154) Less: Purchase of property and equipment (32) (21) Free Cash Flow $ (109) $ (175) 28
Slide 29: Reconciliation of Net Debt
Reconciliation of Net Debt As of ($ in millions) March 31, 2023 December 31, 2022 Senior Secured Credit Agreement Principal amount of senior secured initial term loans $ 239 $ 239 (Maturity – August 2025)(1) Principal amount of senior secured tranche B-3 term loans 1,000 1,000 (Maturity – December 2
Slide 30: Reconciliation of Q1 & FY 2023 Adjusted EBITDA Guidance
Reconciliation of Q1 & FY 2023 Adjusted EBITDA Guidance Adjusted EBITDA guidance for the three months ending June 30, 2023 consists of expected net loss for the three months ending June 30, 2023, adjusted for; (i) interest expense of approximately $35-40 million; (ii) benefit for income taxes of app
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