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Redefining Travel CommerceDeutsche Bank Leveraged Finance Conference, September 2016
Related to Forward-Looking StatementsCertain items in this presentation and in today’s discussion, including matters relating to revenue, net income (loss), and percentages or calculations using these measures, capital structure, future business opportunities, plans, prospects or growth rates and other financial measurements and non-financial statements in future periods, constitute forward-looking statements. These forward-looking statements are based on management’s current views with respect to future results and are subject to risks and uncertainties. These statements are not guarantees of future performance. Actual results may differ materially from those contemplated by forward-looking statements. Travelport Worldwide Limited (the ‘Company’ or ‘Travelport’) refers you to our periodic reports and filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on February 18, 2016 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, filed with the SEC on May 5, 2016, for the quarter June 30, 2016, filed with the SEC on August 4, 2016, for additional discussion of these risks and uncertainties, as well as a cautionary statement regarding forward-looking statements. Forward-looking statements made during this presentation speak only as of today’s date. Travelport expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Related to Non-GAAP Financial InformationTravelport analyzes its performance using Adjusted EBITDA, Adjusted Net Income/(Loss), Adjusted Income/(Loss) per Share, Adjusted Operating Income/(Loss), Capital Expenditures, Net Debt, and Adjusted Free Cash Flow, which are non-GAAP financial measures. Such measures may not be comparable to similarly named measures used by other companies. The Company believes these measures provide management with a more complete understanding of underlying results, trends and the liquidity of the core operating business, along with the Company’s ability to meet its current and future financing and investing needs. Adjusted EBITDA is the primary metric, used to evaluate and understand our underlying operations and business trends, forecasting and determining future capital investment allocations. Adjusted EBITDA, Adjusted Net Income/(Loss), Adjusted Income/(Loss) per Share and Adjusted Operating Income/(Loss) are also used by the Board of Directors to determine incentive compensation for future periods. Capital Expenditures, which impact depreciation and amortization, interest expense and income tax expense, are reviewed separately by management. These measures are disclosed so that investors have the same tools as those available to management when evaluating the results of Travelport. These non-GAAP measures are defined in the ‘Definitions’ appendix of this presentation and discussed and reconciled to GAAP measures in our quarterly and annual filings with the SEC.
Disclaimers
2
3
Creating long-term shareholder value
Strong core Differentiated focus
Leading technology
Truly global Focused on the markets that need us
Compelling financials
Disciplined capital
allocation
Core business model is resilient, recurring
and transaction-based with strong competitive advantages
Significantly upgraded technology platform and industry-leading
product suite
Broad international presence to leverage international focus of
our customers
Strong focus on corporate and service-
premium travel
Entering clear growth phase with multiple, compelling drivers
Capital-light model with strong free cash flow generation and clear and disciplined approach to capital
allocation
Differentiated “platform” approach to address evolving
travel commerce ecosystem – in airline
merchandising, hospitality, mobile
commerce and payments
Industry leader with global, differentiated platform
4
Travelport has transformed through investments to lead the global travel distribution industry.
Our platform is differentiated in 5 key areas and is fully focused on value creation for our customers.
GD
SG
DS
Global travel distribution industry’s
clear leader in…
Airline Merchandising
LCC Distribution
Hospitality andDigital Media
Mobile Commerce
B2B Payments
5
Airline hosting is critical for back-end IT systems but does not drive value creation at the front-end
Top 10 Global Airlines1
in 2015 (in millions)201
179140
117 109 101 94 90 79 70
American Delta United Southwest ChinaSouthern
Ryanair ChinaEastern
Air China Lufthansa easyJet
1. Top 10 global airlines measured by passengers boarded represent around a third of global passengers boarded; Source: CAPA
2. Southwest uses Amadeus Altea for international flights, being a small proportion of Southwest’s business
Hosted by Sabre Sonic
Hosted by Travelport,
development by Delta
Not Hosted on Amadeus Altea or
Sabre Sonic Product
(2) Not Hosted on Amadeus Altea or
Sabre Sonic Product
Not Hosted on Amadeus Altea or
Sabre Sonic Product
Hosted on Navitaire, recently
purchased by Amadeus
Not Hosted on Amadeus Altea or
Sabre Sonic Product
Not Hosted on Amadeus Altea or
Sabre Sonic Product
Hosted on Amadeus Altea
Product
Not Hosted on Amadeus Altea or
Sabre Sonic Product
Majority of world’s largest airlines do not use Amadeus or Sabre PSS
But six of ten utilize IT solutions provided by Travelport
By definition travel intermediaries book all carriers regardless of host
Hosting decisions do not drive distribution decisions
HospitalityHotelsRental car and ground transportB2B travel industry digital media
Mobile commerce
MTTLocomote
Airline merchandisingAncillaries and branded faresTailored offerings Aggregated shopping
Payments
eNett
Fron
t-End
Payments
eNett
HospitalityHotelsRental car and ground transportB2B travel industry digital mediaGDSGDS
Airlinecontent
Network carriers
Low cost carriers
Hotels
~650,000 chain & independent hotel properties
Car rental
~36,000 car rentallocations
Otherdistribution
~60 cruise lines
13 major rail networks
Co
nte
nt
GDSIT Solutions
DistributionTravel Commerce Platform
Back-end:IT solutions
Travelport is focused on differentiated value creationat the front-end
Travelport remains essentially a transaction fee based business
6
Mobile commerce Payments
Airline distribution and merchandising Hospitality attachment
MTT continues to perform well adding global airlines and TMCs to its client roster, across multiple regions
38
40
41
43
47
FY 11
FY 12
FY 13
FY 14
FY 15
Hospitality segments per 100 airline tickets issued
$2m
$19m
$45m
$67m
$92m
FY 11
FY 12
FY 13
FY 14
FY 15
Etihad Airways mobile app launched in the App Store on April 11, 2016
7
The key proof points of our industry-leading platform
1 As of September 5, 2016
65% of Air segment revenue in FY 15 from ‘away’ bookings(FY 11: 58%)
airlines1 live with merchandising, including fares families, branded fares, ancillaries and tailored offers
177
eNett revenue
1H 2016 revenue up +81% YoY to $71m
1H 2016 48
After: Travelport SmartpointBefore: Legacy Desktops
8
Our model – selling the way the airlines want to sell
Changing the distribution paradigm with a supplier-centric focus on presenting product to the customer
Traditional GDS screen used to present airline products for well over 30 years
Screens reduce airline’s product offerings to a line of alphanumeric text
Much less intuitive user interface for agents
Travelport’s proprietary point-of-sale application is fully deployed for travel agencies and management companies
Integrates ‘Rich Content and Branding’ merchandising capabilities
Enables sale of ancillary services and promotion of entire product value and brand propositions
Travelport - Airline merchandising today within our award-winning Smartpoint point-of-sale
Etihad.com -‘Business Class with Etihad is not business as usual’
9
Airlines signed up to ‘Rich Content and Branding’ represent ~60% of our air segment volumes
1 Represents percentage of air segment volumes (for the twelve months to June 30, 2016) derived from airlines signed to Rich Content and Branding as of September 5, 2016
Our high value-adding merchandising solutions, including ‘Rich Content and Branding’, continue their rapid momentum
Now at a critical mass of participation;>200 airlines signed to date represent ~60%1
of our air segment volumes
Travelport has 177 airlines implemented and >200 signed (fare families & ancillaries) Amadeus has 30 implemented and 39 signed for fare families, and Sabre…???
Tailored offerings include negotiated deals between corporates and airlines; available through self-booking tools and to travel agencies
‘Tailored merchandising’ made real today within our award-winning Smartpoint point-of-sale
‘Tailored merchandising’ available through our universal API (uAPI) technology
Travelport has further expanded its productset to include tailored offerings
10
Travelport's tailored offerings –another unique differentiator
No other GDS has this unique and cutting edge capability
• Signed new long-term agreement in 2014 to run Delta host reservation and key operating system (AIR4)
• Recently upgraded to zTPF
• Provide Rapid Reprice, EMD and other technology
• Extending to other Delta investment carriers (Virgin Atlantic)
• Emirates ‘Inspire Me’ - exclusive live-search solution: proprietary mapping and search technology infuses real-time availability and pricing into the search process
• Emirates Fare Branding and Upsell - choose the right fare brand based on value, not just the lowest price, and easily upgrade to the next branded fare
• MTT focuses on delivering world-class mobile solutions to leading airlines, hotels and travel agencies
• Designs and runs mobile apps for easyJet, BCD Travel, LATAM, Etihad, Saudia, Capita Travel and Singapore Airlines
• Multi-award winning service
• Cloud-based data and analytics for route planning, fares, revenue management and sales effectiveness
• Global scale and used by multiple airlines
Delta Hosting Solutions Branded Fares Mobile Commerce Data Analytics
11
We offer leading airline technology to our partners
Delta Hosting
Travelport provides a broad range of innovative technology solutions and services to our customers to enhance their direct selling and customer experience capabilities
12
Case study: Value-add solutions for Emirates’direct selling channels
International regions(~70% of total GDS market) tend to yield higher RevPas and margins than the US
InternationalGDS segments4% CAGRbetween Q2 12 and Q2 16; faster than US segments
Travelport International air share is stable
13
International (excl. US) air market share is stable
0%
10%
20%
30%
40%
50%
60%
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
Q115
Q215
Q315
Q415
Q116
Q216
Travelport Amadeus Sabre & Abacus
• ~36,000 car rental locations bookable
• ~60 cruise lines & tour operators and 13 major rail networks
• B2B payments by travel agencies to travel providers (eNett)
• The only GDS with this attached
• Growing at a rate which is 10x higher than WEX in travel
• Mobile platform and apps for the travel industry (MTT)
• Corporate self-booking tools (Locomote and Hotelzon)
• Digital media B2B advertising (~3,500 advertisers)
Hotel Distribution• ~650,000 hotel properties bookable
• Retail rates for independent hotels from leading aggregators (Travelport Rooms and More)
• Corporate rates for independent hotels (Hotelzon)
Car, Tours and Other Distribution
Digital and Mobile Solutions
Payments14
Differentiated focus on travel commerce Beyond Air
BEYOND AIR2015 revenue: $492m (+16%)
23% of Travel Commerce Platform Revenues(21% in FY 2014)
Travelport Hotelzon – enhancing content, efficiency and choice in the corporate hotel booking market
Travelport Smartpoint includes significantfurther enhancements to hotel booking
Travelport has significant advantages through the depth and breadthof hotel content all bookable in real-time
Latest version of Hotelzon OnlineTravelport Smartpoint version 7.1, launched July 2016
15
Powering hotel distribution to corporate and retail
16
Focus on mobile commerce providesdifferentiation and value
Travelport Mobile
Focused on delivering world-class mobile solutions to leading airlines, hotels and travel agencies
Airline customers use a variety of IT solutions providers
~200 employees specialized in mobile travel commerce
22 million downloads to date of apps developed by Travelport for customers; top-rated travel app in 78 different countries
Key adjacency that significantly enhances Travelport’s Beyond Air value proposition, with mobile fast becoming the key travel commerce channelKey customers include:
Example Locomote apps:
Locomote CorporateTravel Platform
Strengthens offering to both Corporates and TMCs, combining mobile technology with leading travel content
Corporate travel management apps, focused on providing solutions for all corporate travel management needs, incorporating artificial intelligence and actionable data analytics
$92m reported revenue in FY 2015 for Travelport1H 2016 growth +81%
Strong barriers to entry
Driving security, efficiency and value for travel agencies and travel providers
Unique value proposition
Rebates paid on every transaction
Reduced FX costs
Fraud protection
Protection against supplier insolvencies
100% data match between booking and payment - avoids time-consuming, manual reconciliation processes
17
Fast-growing eNett is redefining B2B payments…
Uniquely positioned for accelerating growth within the >$800bn addressable market
Pre-funded model developed in partnership withOptal payment experts
Unique banking relationships established
Deep, strategic partnership with MasterCard
Fully integrated into travel agency workflows and GDS-agnostic
First mover advantage and proven business model
Competitive advantage over commercial banksand our traditional GDS competitors
Deployed in >70 countries
Agencies
Travel providers
Moved to double-digit EBITDA margin % in Q2 2016 and scale realized
eNett reported revenue (in $ millions)
18
…with revenue rapidly accelerating
$2
$19
$45
$67
$92
$71
2011 2012 2013 2014 2015 1H 2016
4-Year CAGR
160%
First mover advantage in a nascent industry
Reliable solution with broad acceptance
Generating EBITDA,net income and free cash flow since 2013
More than 3/4 of FY
2015 revenue
Continued strong Beyond Air Revenue growth$ millions; CAGR FY 2012 – FY 2015
+11%YoYYoY
19
Investments in Beyond Air delivering strong,sustainable growth
Hotel room nights sold
FY 2015+3% YoY
Car rental days sold
FY 2015+8% YoY
Hospitality attachment 1
FY 2015+11% YoY
eNett Revenue
FY 2015+36% YoY
CAGR15%
326 371424
492
FY 2012 FY 2013 FY 2014 FY 2015
Beyond Air continues its strong growth+16% in FY 2015; +22% in Q2 2016
eNett revenueup 36% with strong pipeline into 2016 (+81% in 1H 2016)
Hospitality attachment rate1 reached 47% in 2015; 48% - 1H 2016
Mobile performing well with recent major business wins including Etihad Airways, AMEX GBT and Aeroméxico
1 Hospitality segments per 100 airline tickets issued
+14%
+14%
+16%
Continuing to build a track record of balanced and disciplined approach to capital allocation
Simplified and improved capital structure
20
Our capital structure & capital allocation strategy
Debt repriced June 2016 – reduced interest by 0.75% to L + 4.00% (L = 1.00% floor)
Continued investment
Mergers and acquisitions
Returns to debt holders
Returns to equity holders
Significant reduction in total debt, from $3.8bn in 2011 to $2.4bn today
Current debt is single tranche,raised publicly in the capital markets
Covenant-light, fully pre-payable without any penalties and no significant maturities until 2021
Strong free cash flow conversion,even after debt servicing
Target to reduce net leverage to around 3 times Adjusted EBITDA by 2018
The information presented here represent forward-looking statements and reflect our expectations as of August 4, 2016. We assume no obligation to update these statements. Results may be materially different and are affected by many factors detailed inthis presentation and in our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on February 18, 2016 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, filed with the SEC on May 5, 2016,quarter ended June 30, 2016, filed with the SEC on August 4, 2016..
(in $ millions, except per share amounts)FY 2016
Guidance*Growth
Net revenue 2,350 – 2,400 6% - 8%
Adjusted EBITDA 565 – 580 6% - 8%
Adjusted Net Income 145 – 155 19% - 27%
Adjusted Income per Share – diluted** 1.16 – 1.24 16% - 24%
Adjusted Free Cash Flow 150 – 170 12% - 27%
Long Term Goals
21
Outlook – 2016 and beyond
* Guidance assumes spot foreign exchange rates as of July 28, 2016
** Based on expected FY fully diluted shares outstanding of 125m
By 2020, achieve:
$3bn Travel Commerce Platform revenue,with >1/3 in Beyond Air
> $250mAdjusted Free Cash Flow
Redefining Travel CommercedbAccess European TMT Conference, September 2016
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