travelport q4 2012 earnings presentation final
DESCRIPTION
Travelport Q4 2012 Earnings Presentation FINALTRANSCRIPT
Driving Forward Momentum
Q4/Full Year 2012: Results Presentation
March 12, 2013
2 This document supports the Company’s Q4 2012 Results Presentation, a recording of which will be available on Travelport’s Investor Centre from 12 March 2013
Disclaimers
Related to Forward-Looking Statements
Certain items in this presentation and in today’s discussion, including matters relating to revenue, net income and earnings, and
percentages or calculations using these measures, capital structure, future business opportunities 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 Limited (the ‘Company’) refers you to our filings with the Securities and Exchange Commission (SEC),
including our Annual Report on Form 10-K for the year ended December 31, 2012, to be filed on March 12, 2013, 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 Information
Travelport analyzes its performance using Adjusted EBITDA and unlevered free cash flow, which are non-GAAP measures. Such
measures may not be comparable to similarly named measures used by other companies. The Company believes Adjusted EBITDA
provides management with a more complete understanding of the underlying results and trends and an enhanced overall
understanding of the Company’s financial liquidity and prospects for the future. Adjusted EBITDA is the primary metric for measuring
our business results, forecasting and determining future capital investment allocations and is one of the measures used by the Board
of Directors to determine incentive compensation. Capital expenditures, which impact depreciation and amortization, interest expense
and income tax expense, are reviewed separately by management. Adjusted EBITDA is disclosed so that investors have the same
tools as those available to management when evaluating the results of Travelport. Adjusted EBITDA is a critical measure as it is
required to calculate our key financial ratios under our credit agreement covenants. Adjusted EBITDA is defined as EBITDA adjusted
to exclude the impact of purchase accounting, impairment of goodwill and intangibles assets, expenses incurred to acquire and
integrate Travelport’s portfolio of businesses, costs associated with Travelport’s restructuring efforts, non-cash equity-based
compensation, and other adjustments made to exclude expenses management views as outside the normal course of operations.
Unlevered free cash flow is defined as net cash provided by operations, adjusted to exclude cash interest payments and include
capital expenditures and capital lease payments. The company believes unlevered free cash flow provides management and
investors with a more complete understanding of the underlying liquidity of the core operating business and its ability to meet its
current and future financing and investing needs.
Q4/Full Year 2012: Highlights
Gordon Wilson, President and CEO
(1) Proforma variance is stated excluding the effects of the loss of the United MSA and foreign exchange (2) Variance is stated excluding the effect of the loss of the United MSA from Q2 2012 4
Q4/Full Year 2012: Highlights
Financial
• Achieved Adjusted EBITDA of $89m for Q4 and $455m for Full Year
– Full Year Proforma Adjusted EBITDA $(7)m vs. prior year, excluding the
effects of $(50)m from the loss of the United MSA and +$5m from the
impact of foreign exchange gains
• Continued quarterly improvement in key business metrics YoY:
– RevPas: Q4 +5% ; FY +3%
– Gross Margin(2): Q4 +5% ; FY +3%
• Contained COR Rate(2) growth to +1% YoY for FY 2012
Operational
• Significant growth in Air, Merchandising, Hotel, Rail and Car content
• High profile travel agency signings and migrations across all regions
• Successful targeted expansion in growth regions of Africa and Russia; and
new hosting agreement with Japan’s AXESS GDS
• Gaining real traction in B2B travel payments through eNett, with 2012 settled
transactions up 18x
• Increased deployment of new Point-of-Sale technology
• Enhanced on-going technology investment program
Industry backdrop
• Modest growth in global travel trends with air segment volumes YoY for Q4
+1% and FY +2% amid continued macroeconomic uncertainty
Q4 RevPas
5%
Q4 Gross
Margin(2)
5%
Q4
2012
Better/(Worse)
than
prior year
Proforma (1)
Better/(Worse)
than prior year
Net Revenue 457 (8) 17
Adjusted
EBITDA 89 (17) —
Cash flows
from
operations
47 9 N/A
FY
2012
Better/(Worse)
than
prior year
Proforma (1)
Better/(Worse)
than prior year
Net Revenue 2,002 (33) 37
Adjusted
EBITDA 455 (52) (7)
Cash flows
from
operations
181 57 N/A
FY RevPas
3%
FY Gross
Margin(2)
3%
Q4/Full Year 2012: Financial Highlights
Philip Emery, CFO
6
• Q4 Net Revenue and FY Net Revenue are both (2)% lower compared to prior year. Excluding the impact of foreign exchange and
loss of the United MSA, Q4 Net Revenue is +4% compared to prior year and FY Net Revenue is +2% higher compared to prior
year
• Q4 Adjusted EBITDA is (16)% lower and FY Adjusted EBITDA is (10)% lower than prior year. Excluding the impact of foreign
exchange and loss of the United MSA, Q4 Adjusted EBITDA is flat compared to prior year and FY Adjusted EBITDA is (1)% lower
compared to prior year, which is in line with management expectations
• Q4 and FY Adjusted EBITDA include $14 million and $58 million of amortization charges for upfront payments to travel agencies,
respectively. Working capital includes $156 million of upfront payments and prepaid commissions as of December 31, 2012
• FY Interest expense of $290 million is $3 million higher in 2012 due to a higher underlying effective interest rate
• Cash flow improved upon prior year:
– Cash flows from operations for 2012 of $181 million is $57 million higher compared to prior year primarily as a result of a
decrease in cash interest payments and fluctuations in our collections and payments cycles
– Q4 unlevered free cash flow of $43 million is $3 million higher than prior year and represents 48% of Adjusted EBITDA. FY
unlevered free cash flow of $305 million is flat with prior year and represents 67% of Adjusted EBITDA
– Q4 free cash flow of $13 million is flat with prior year. FY free cash flow of $73 million is $35 million higher than prior year
• Financing obligations successfully met and we are well positioned for future refinancing discussions:
– Refinancing of 2013 First Lien term loans with 2015 Junior Priority term loans successfully completed
– $26 million of Senior Notes repurchased at a cost of $20 million, as required under our First Lien Credit Agreement
– Amendment to our First Lien Credit Agreement completed in December 2012 as first stage towards our refinancing being
launched today
– We were in compliance with all our financial covenants as of December 31, 2012
Financial Highlights
Net Revenue Bridge Q4 2012 Net Revenue Bridge FY 2012
FY 2011
Proforma
Net Revenue
Net Revenue
Net Revenue Q4 2012 Better/(Worse)
than prior year FY 2012
Better/(Worse)
than prior year
Transaction Processing 420 8 1,834 11
Airline IT Solutions 37 (16) 168 (44)
Net Revenue 457 (8) 2,002 (33)
FY 2011
Net Revenue
United MSA
and FX
Transaction
Processing
Airline IT
Solutions
FY 2012
Net Revenue
Q4 2011
Proforma
Net Revenue
Q4 2011
Net Revenue
United MSA
and FX
Transaction
Processing
Airline IT
Solutions
Q4 2012
Net Revenue
465 440 457
(25)
16 1
2,035 1,965 2,002
(70) (2)
39
7
8 (1) Proforma variance is stated excluding the effects of the loss of the United MSA and foreign exchange
Q4 2012 Better/(Worse)
than prior year
Proforma (1)
Better/ (Worse)
than prior year
FY 2012 Better/(Worse)
than prior year
Proforma (1)
Better/(Worse)
than prior year
Net revenue 457 (8) 17 2,002 (33) 37
Adjusted EBITDA 89 (17) — 455 (52) (7)
Less adjustments:
Corporate costs (10) (6) (6) (19) (6) (6)
GAAP Restructuring charges — — — — 4 4
Equity-based compensation — 5 5 (2) 3 3
Litigation and related costs (28) 9 9 (53) (3) (3)
Gain on extinguishment of debt — — — 6 6 6
Other non-cash (10) (12) (12) (16) (8) (8)
Total adjustments (48) (4) (4) (84) (4) (4)
EBITDA 41 (21) (4) 371 (56) (11)
Less: Depreciation and amortization (58) — — (227) — —
Less: Gain on extinguishment of debt — — — (6) (6) (6)
Operating (loss) income (17) (21) (4) 138 (62) (17)
Interest expense, net (75) (11) (11) (290) (3) (3)
Gain on early extinguishment of debt — — — 6 6 6
Loss from continuing operations before
income taxes and equity in investment in
Orbitz Worldwide
(92) (32) (15) (146) (59) (14)
Benefit (provision) for income taxes 1 3 3 (23) 6 6
Equity in investment in Orbitz Worldwide (80) (58) (58) (74) (56) (56)
Net (loss) income from continuing operations (171) (87) (70) (243) (109) (64)
Summary Income Statements
9
Summary Cash Flows
FY 2012 FY 2011
Adjusted EBITDA 455 507
Less:
Interest payments (232) (267)
Tax payments (16) (22)
Changes in operating working capital 72 (7)
FASA liability payments (7) (16)
Defined benefit pension plan funding (27) (17)
Other adjusting items (64) (54)
Net cash provided by operating activities of continuing operations 181 124
10
Summary Cash Flows
FY 2012 FY 2011
Net cash provided by operating activities of continuing operations 181 124
Add back: Interest payments 232 267
Less: Capital expenditures on property and equipment additions of continuing operations (92) (72)
Less: Repayment of capital lease obligations (16) (14)
Unlevered free cash flow 305 305
Less: Interest payments (232) (267)
Free cash flow 73 38
Other Financing and Investing Activities
Repurchase and retirement of Senior Notes (20) —
Net (payment) receipt on settlement of foreign exchange derivative contracts (42) 34
Payment of debt finance costs (20) (100)
Net movement on revolver borrowings and other (5) 29
Proceeds from sale of GTA business — 628
Repayment of term loans — (658)
Distribution to a parent company — (89)
Net decrease in cash and cash equivalents (14) (118)
11
Summary Balance Sheets
December 31,
2012
December 31,
2011
Goodwill and other intangibles 1,899 1,981
PP&E 416 431
Investment in Orbitz Worldwide — 77
Working capital and other (160) (117)
Net pension and post-retirement benefit liabilities (174) (183)
Net debt (3,183) (3,146)
Total assets less total liabilities (1,202) (957)
Equity (1,202) (957)
(1) Subject to a reduction in maturity to May 2014 (1st Lien) or August 2014 (1.5 Lien) under certain circumstances (2) Debt maturities are based on carrying value and exclude i) amounts due under the Revolving Credit Facility and Capital Leases; and ii) future PIK interest or any exit fees 12
Debt Maturity Dec 31,
2012
Dec 31,
2011
Non Extended Term Loans Aug-13 — 161
Revolving Credit Facility 20 35
Extended Term Loans (1) Aug-15 1,348 1,346
Tranche S Term Loans Aug-15 137 137
Bank Term Loans and Revolving Credit
Facility 1,505 1,679
2012 Secured Term Loans (1.5 Lien) (1) Nov-15 171 —
Second Priority Secured Notes Dec-16 225 211
Senior Notes due 2014 Sep-14 752 776
Senior Notes due 2016 Mar-16 250 250
Senior Unsecured Notes 1,002 1,026
Senior Subordinated Notes Sep-16 431 428
Capital Leases 96 63
Total Travelport Limited Indebtedness 3,430 3,407
Less:
Cash Held as Collateral (137) (137)
Cash and Cash Equivalents (110) (124)
Net Debt 3,183 3,146
• In compliance with all financial covenants as of December 31, 2012
Schedule of Debt Maturities (2)
Covenants Dec 31,
2012
Dec 31,
2011
Total Leverage Ratio 7.24x 6.99x
Maximum Total Leverage Ratio 8.00x 8.00x
First Lien Leverage Ratio 3.40x 3.74x
Maximum First Lien Leverage Ratio 4.00x 4.00x
Senior Secured Leverage Ratio 3.80x N/A
Maximum Senior Secured Leverage Ratio 4.95x N/A
Capitalization Table – Debt Maturities
1,656
906
2013 2014 2015 2016 Thereafter
752
13
2013 Refinancing
• While there is no immediate need for any capital structure actions, Travelport wants to be proactive in managing its balance sheet
to:
– Refinance 2014 maturities
– Simplify our capital structure
– Settle existing bondholder litigation
• If successful, this transaction would capitalize on the flexibility gained in the recent 1st Lien Credit Agreement amendment and
further support the momentum of the business gained in recent quarters
– Extension of 2014 maturities allows the Company more runway to execute on its growth initiatives
– Settlement of the litigation saves the Company legal costs and allows management to focus on the business
– Refinancing senior unsecured debt and exchanging Travelport Holdings Limited PIK loans into equity helps simplify the
Company’s capital structure
• Travelport is pursuing this transaction after entering into Restructuring Support Agreements with certain holders of approximately
38% of the 2014 Senior Notes and approximately 64% of the 2016 Senior Notes
– Travelport has also entered into a Restructuring Support Agreement with certain holders of approximately 34% of the aggregate
principal amount of existing Second Priority Secured Notes, approximately 15% of Senior Subordinated Notes and
approximately 60% of Travelport Holdings Limited’s unsecured PIK term loans (excluding the holding of approximately 30% of
Travelport Holdings Limited’s Tranche A PIK term loans by Travelport Intermediate Limited, an affiliate of The Blackstone
Group L.P., who has also entered into the Restructuring Support Agreement)
14
2013 Refinancing
• As part of an exchange offer for the 2014 and 2016 Senior Notes, senior note holders will (1) be able to exchange into New Senior
Unsecured Notes due 2016 and receive cash and (2) have the opportunity to participate in a new 2nd Lien Tranche 1 Term Loans
due 2016
– New 2nd Lien Tranche 1 Term Loans will have a maturity of January 1, 2016 and will rank junior to the liens under the 1st Lien
Credit Agreement and equal to the liens under the existing 2nd Lien Indenture
– New 2nd Lien Tranche 1 Term Loans will have a floating interest rate of LIBOR + 8.00% with a 1.5% LIBOR floor, an OID of
1.0%, and a 2.0% exit fee
– Certain proceeds from the New 2nd Lien Tranche 1 Term Loans will be used to repay the 1.5 Lien 2012 Secured Term Loans
and to pay related transaction fees and expenses
– Travelport has a commitment from Credit Suisse to raise up to $630 million from the New 2nd Lien Tranche 1 Term Loans
• Senior Unsecured Notes transaction includes the following:
– 2014 USD Fixed-rate Senior Notes: 42.5% cash and 57.5% New Fixed-rate Senior Notes with a March 1, 2016 maturity, a cash
interest rate of 11.375% and an incremental PIK interest rate of 2.5%
– 2014 USD & EUR Floating-rate Senior Notes: 42.5% cash and 57.5% New Floating-rate Senior Notes with a March 1, 2016
maturity, a cash interest rate of LIBOR + 6.125% and an incremental PIK interest rate of 2.5%
– 2016 USD Senior Notes: 32.5% cash and 67.5% New Fixed-rate Senior Notes with a March 1, 2016 maturity, a cash interest
rate of 11.375% and an incremental PIK interest rate of 2.5%
• Existing LIBOR + 6.00% 2nd Priority Secured Notes due December 2016 will exchange into New 2nd Lien Tranche 2 Term Loans
earning 4.0% cash interest and 4.375% PIK interest
• Holders of Senior Subordinated Notes will receive a consent fee of $5 per $1,000 aggregate principal amount to waive and release
legal claims against Travelport and amend certain provisions of the Senior Subordinated Notes indenture
• Travelport Holdings Limited Tranche A PIK Loan will exchange $25 million of principal into Senior Subordinated Notes with terms
and seniority equivalent to the existing 11.875% Senior Subordinated Notes and receive a 50 bps consent fee. The remaining
Travelport Holdings Limited Tranche A and Tranche B PIK Loans will exchange into equity
15
2013 Refinancing
Sources and uses assumes a transaction closing date of March 31, 2013 in the calculation of accrued and unpaid interest;
acceptance by holders of all the Senior Notes; and an exchange rate for € tranches based on the 30 business day average prior to
March 8, 2013 of 1.331
1) New 2nd Lien Tranche 1 Term Loan amount of $630 million does not reflect the $6 million OID (under the Second Priority Credit
Agreement)
2) As of March 31, 2013, existing 2nd Lien Notes will have accrued to a balance of approximately $229 million (from $225 million as
of December 31, 2012)
3) As of March 31, 2013, Travelport Holdings Limited PIK Loans of $503 million will consist of Tranche A PIK Loans accrued to a
balance of approximately $149 million, and Tranche B PIK Loans accrued to a balance of approximately $354 million. Of this, $25
million of Travelport Holdings Limited Tranche A PIK Loans will exchange for New 11.875% Senior Subordinated Notes and the
remaining $478 million will exchange into equity
4) Includes an OID of $6 million on the New 2nd Lien Term Loan, commitment fees, consent payments, a 1.5 Lien prepayment fee,
financial and legal advisory fees, and accrued and unpaid cash interest
Sources Uses
New 2nd Lien Tranche 1 Term Loans $630 Repayment of 2012 Secured Term Loans (1.5 Lien) $175
Payment of 42.5% of 2014 Senior Notes 320
Payment of 32.5% of 2016 Senior Notes 81
Transaction Costs, Fees and Accrued Interest (4) 54
Total cash sources $630 Total cash uses $630
New 2nd Lien Tranche 2 Term Loans (2) $229 Exchange of Existing 2nd Lien Notes (2) $229
New Fixed-Rate Senior Notes 415 Exchange of 2014 Senior Notes not paid down 433
New Floating-Rate Senior Notes 187 Exchange of 2016 Senior Notes not paid down 169
New 11.875% Senior Subordinated Notes 25 Tranche A PIK Loans exchange 25
Equitization of Remaining Tranche A and B PIK Loans (3) 478 Equitization of Remaining Tranche A and B PIK Loans 478
Total non-cash sources $1,334 Total non-cash uses $1,334
(1)
(3)
(1) Subject to a reduction in maturity to May 2014 (1st Lien) or August 2014 (1.5 Lien) under certain circumstances (2) Debt maturities are based on carrying value and exclude i) amounts due under the Revolving Credit Facility and Capital Leases; and ii) future PIK interest or any exit fees (3) Leverage presented here is calculated as cumulative proforma net debt divided by Travelport Adjusted EBITDA for 2012 of $455 million
16
Debt Maturity Dec 31,
2012
Pro-
forma Leverage (3)
Revolving Credit Facility 20 20
Extended Term Loans (1) Aug-15 1,348 1,348
Tranche S Term Loans Aug-15 137 137
Bank Term Loans and Revolving Credit
Facility 1,505 1,505 2.76x
2012 Secured Term Loans (1.5 Lien) (1) Nov-15 171 —
Second Priority Secured Notes Dec-16 225 —
New Second Priority Senior Secured
Tranche 1 Loans Jan-16 — 624
New Second Priority Senior Secured
Tranche 2 Loans Dec-16 — 225 4.63x
Senior Notes due 2014 Sep-14 752 —
Senior Notes due 2016 Mar-16 250 —
New Fixed Rate Exchange Notes due 2016 Mar-16 — 415
New Floating Rate Exchange Notes due
2016 Mar-16 — 186
Senior Unsecured Notes 1,002 601 5.95x
Senior Subordinated Notes Sep-16 431 456 6.95x
Capital Leases 96 96
Total Travelport Limited Indebtedness 3,430 3,507 7.16x
Less:
Cash Held as Collateral (137) (137)
Cash and Cash Equivalents (110) (110)
Net Debt 3,183 3,260 7.16x
Schedule of Proforma Debt Maturities (2)
Proforma Capitalization Table – Debt Maturities
1,485
1,906
2013 2014 2015 2016 Thereafter
Q4/Full Year 2012: Business Update
Gordon Wilson, President and CEO
18
Continued Strategic Execution
Enhanced Travel Content
• Air
– 35 air agreements signed in 2012, with recent ones including:
• Americas: AeroMexico, Copa Airlines , Alaska Airlines
• APAC: Virgin Australia, Scoot
• Europe: Alitalia
• MEA: Air Botswana, PIA, Ethiopian Airlines
– Merchandizing milestones include:
• Air New Zealand, Alitalia
• Hotel
– New hotel aggregator content agreements for Travelport Rooms and
More™ include:
• Destinations of the World, Huntington Travel, lowcostbeds.com,
EasyToBook
– Total number of hotel properties now bookable in Travelport Rooms and
More is > 375K
• More than tripled hotel offers to > 950K
Air Deals
35
Hotel Offers
950k
19
Continued Strategic Execution
Differentiated Product Momentum
• Point-of-sale desktop momentum continues:
– Travelport Smartpoint App™ update now available for Worldspan
agents
– Over 70% of travel agent customers upgraded to new platform in 2012
• Ongoing roll out of mobile technology:
– Travelport Mobile Agent in MEA region
– Galileo Terminal in APAC region
• First anniversary of Travelport Developer Network™
– 300% growth in membership since launch
– 60 independent software developers
– 70 new applications and processes currently under development
– 88 full country launches
Investing in Key Adjacencies
• Continued substantial payment transaction growth with eNett joint venture:
– 2012 FY TTV grown by 18x over 2011
• New AITS agreements with Azul, Copa Airlines, GOL and transavia.com
20
Continued Strategic Execution
Targeted Geographical Growth
Major customer wins and renewals:
• Americas: TTI (Canada), Executive Travel, National Travel Systems and
ATC Travel Management (US),
• APAC: Morning Star (HKG)
• Europe: Hays Travel, Statesman (UK)
• MEA: eTravel Group (South Africa); Al Tayyar (KSA)
Expanded network:
• New distributor appointed in Morocco;
• First East Africa hub established in Kenya
– Accelerating introduction of Travelport technology to this fast growing
region
Technology Investment
• Partnership with IBM extended through new hardware and software
agreement. Includes upgrades to:
– Existing systems architecture
– Software infrastructure
Global Snapshot
• Continued low growth for 2012 in main regions of US (32% of global
GDS volume) and Western Europe (26% of global GDS volume)
• Significant variation in certain regions
BRICS
• Showing growth in 2012 (except India):
– Brazil: Q4 (7)% ; FY +6%
– Russia: Q4 +21% ; FY +23%
– China: Q4 (5)% ; FY +18%
– South Africa: Q4 +15% ; FY +8%
Low Cost Carriers
• Continued segment growth:
– Q4 at +1% ; FY at +5%
– 7% of Travelport GDS air segments for 2012
RevPas
• Full Year 2012 growth at +3%, reflecting:
– New Travelport products & services
– Continued growth in hotel and advertising sales
– Growth in eNett payments processing
21
Travelport GDS Full Year Segments
(in millions)
Region(2) 2012 2011 Better/
(Worse)
Proforma(1)
Better/
(Worse)
Americas 170 176 (3.5)% 0.1%
Europe 84 85 (0.9)% (0.9)%
APAC 54 56 (2.9)% (2.9)%
MEA 39 38 1.8% 1.8%
Global 347 355 (2.2)% (0.5)%
(1) Proforma variance is stated excluding the effect of the loss of the United MSA (2) Brazil is combined with Europe and not Americas
Geography/Customer Segments
RevPas ($)
$5.01 $5.24 $5.13 $5.19 $5.14 $5.08
$5.34 $5.30 $5.47
$5.29
Q1 Q2 Q3 Q4 FY
2011 2012
22
• In 2012 Travelport continued its record of winning plaudits and awards across all regions from both the travel and technology
industries
• Recent highlights include:
Consistent Industry Recognition
‘IT Team of the Year’
Gold Stevie Award
2012 American Business Awards
‘Best GDS Asia Pacific’
2012 TTG Travel Industry Awards
‘Favorite GDS (Canada)’
2012 Agent Choice Awards
Top 250 ranking
2012 InformationWeek 500
Most Innovative Business Technology Organizations
‘Best Technology Provider’
2013 Globe Travel Awards
EMEA
AMERICAS AMERICAS
AMERICAS APAC
23
Driving forward momentum and delivering strategic growth plans:
• Accelerated content growth:
– Air, Merchandising, Hotel, Rail and Car
• Delivered targeted geographic expansion:
– Established new operations in growth regions
– New hosting agreement with Japan’s AXESS GDS
– Signed and migrated high profile travel agencies across all regions
• Enhanced Point-of-Sale technology:
– Upgraded underlying platforms
– Launched new mobile apps and tools
• Developed key adjacencies:
– Gained payments processing traction through eNett
– Increased AITS impetus, especially in South America
• Invested in significant technology infrastructure upgrades
• Achieved consistent improvement across financial metrics
– Grown RevPas for seventh consecutive quarter
– Increased Gross Margin for fifth consecutive quarter(1)
– Contained COR Rate growth to 1% for 2012(1)
Outlook:
• No near term debt maturities, having successfully extended 2013 maturities
• Encouraging start to 2013
• Significant refinancing launched today
D
(1) Variance is stated excluding the effect of the loss of the United MSA from Q2 2012
Full Year: Summary & Outlook
FY RevPas
3%
FY Gross
Margin(1)
3%
Air Deals
35
Hotel Offers
950k
Appendices 2012 Regional Highlights and Definitions:
Americas – APAC – Europe – Middle East & Africa – Definitions
25
Americas
2012 Highlights 2012 Operational Highlights(1):
• Airlines:
– Ancillary marketing, content, product services and upgrade agreements:
• AeroMexico, Air Canada, Alaska Airlines, Avianca, Avior Airlines,
Azul Brazilian Airlines, Boliviana de Aviación, Copa Airlines,
Delta Airlines, GOL, TACA Airlines
• Travel Agencies:
– Converted, expanded and renewed customers include:
• Agency Technology LLC, Child Travel Services,
Custom Travel Solutions, Delgado Travel, Executive Travel,
National Travel Systems, Your Travel Center,
Travel Leaders Network, TTI (Canada) Executive Travel,
Tzell Travel leaders Group
Post Period Developments:
• Appointed as ATC Travel Management’s primary technology provider
• Carlson Rezidor Hotel Group connects to Travelport GDS via XML, cutting
out intermediary and widening content available
(1) Q4 Highlights are shown in Bold
26
APAC
2012 Highlights
2012 Operational Highlights(1):
• Airlines:
– Ancillary marketing, content, product services and upgrade agreements:
• Air China, Air New Zealand, Bangkok Airways, China Southern,
Qantas
• Travel Agencies:
– Converted, expanded and renewed customers include:
• PST Travel (Malaysia), C&E Holidays (Singapore), Lotus Travel
(Hong Kong), Digital Travel (Australia), All Blacks Tours (New
Zealand), Voyager Resorts (Australia)
• New, enhanced strategic leading national GDS partnerships:
– AXESS (Japan), TravelSky (China)
Post Period Developments:
• Content agreements signed with Virgin Australia and Scoot
• New agreement signed with Morning Star (Hong Kong)
(1) Q4 Highlights are shown in Bold
Europe
2012 Highlights
27
2012 Operational Highlights(1):
• Airlines:
– Ancillary marketing, content, product services and upgrade agreements:
• Alitalia, Bulgaria Air, easyJet, KLM, LOT Polish Air, Luthansa,
TAP Portugal, transavia.com, SWISS, TUIfly
• Travel Agencies:
– Converted, expanded and renewed customers include:
• Avia Center (Russia), ebookers, fcm Solutions,
Grupa Travel (Poland), Hays Travel (UK), Kuoni,
Statesman Travel (UK), TIX.nl, Virgin Atlantic Flightstore (UK)
• Rail
– New, expanded content includes:
• NTV, RailEurope, thetrainline.com
Post Period Developments:
• New travel agency agreements with Aero Club (Russia) and
INTravel (Poland)
• AITS agreement for e-ticket technology with transavia.com
(1) Q4 Highlights are shown in Bold
2012 Highlights 2012 Operational Highlights(1):
• Airlines:
– Ancillary marketing, content, product services and upgrade agreements:
• Air Botswana, Air Tanzania, Egypt Air,
Ethiopian Airlines, flydubai, Gulf Air, kululu.com, nasair,
Pakistan International Airlines, Precision Air, RAK Airways,
South African Airways, Yemenia Airlines
• Travel Agencies:
– Converted, expanded and renewed customers include:
• Al Jaraf, Al Tayyar, Bid Travel, Cozmo Travel, Dadabhai Travel,
dnata Travel, E-Travel, Irena Travel, Nakhal & Cie, Skyline,
Tihama Travel, Wild Discovery
• Geographic expansion:
– Acquisition & integration of Travelport distributor in Southern Africa and
new establishments in Tanzania, DR Congo, Nigeria, Morocco
– New regional HQ (Dubai) and new hubs (Beirut, Kenya)
Post Period Developments:
• New global content agreement with Pegasus Airlines (Turkey)
• New agency agreement with Rickshaw Travels
• Satguru Travels – further expansion in Africa
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Middle East & Africa
(1) Q4 Highlights are shown in Bold
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Definitions
• Adjusted EBITDA: Defined as EBITDA adjusted to exclude the impact of purchase accounting, impairment of goodwill and
intangibles assets, expenses incurred to acquire and integrate Travelport’s portfolio of businesses, costs
associated with Travelport’s restructuring efforts, non-cash equity-based compensation, and other
adjustments made to exclude expenses management views as outside the normal course of operations
• Cash flow conversion: Computed by dividing Unlevered free cash flow by Adjusted EBITDA
• COR Rate: Computed by dividing travel agency commission and incentive payments by the number of segments
• First Lien Leverage Ratio: Computed under the Fifth Amended and Restated Credit Agreement by dividing the total first lien debt (as
defined under our Fifth Amended and Restated Credit Agreement) as of the balance sheet date by a
number which is broadly computed from the last twelve months of Travelport Adjusted EBITDA
• FX: Defined as foreign exchange
• FY: Defined as Full Year
• MSA: Defined as Master Services Agreement
• OID: Defined as Original Issue Discount
• PIK: Defined as Payment In Kind
• RevPas: Computed by dividing total transaction processing net revenue by the number of segments
• Senior Secured Leverage Ratio: Computed under the 2012 Secured Credit Agreement by dividing the total of the first lien debt (as defined
under our Fifth Amended and Restated Credit Agreement) and the term loans issued under our 2012
Secured Credit Agreement as of the balance sheet date, by a number which is broadly computed from
the last twelve months of Travelport Adjusted EBITDA
• Total Leverage Ratio: Computed under the Fifth Amended and Restated Credit Agreement by dividing the total debt (as defined
under our Fifth Amended and Restated Credit Agreement) at the balance sheet date by a number which
is broadly computed from the last twelve months of Travelport Adjusted EBITDA
• TTV: Defined as Total Transaction Value
• Unlevered free cash flow: Defined as net cash provided by operations adjusted to exclude cash interest payments and
include capital expenditures and capital lease payments
• YoY: Defined as Year on Year
All figures are in USD $ millions, unless otherwise stated