Gordon Wilson President and Chief Executive Officer December 17, 2015
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 Differentiated platform approach to address evolving travel commerce ecosystem in airline merchandising, hospitality, mobile commerce and payments Significantly upgraded technology platform and industry-leading product suite Broad international presence to leverage international focus of our customers Strong focus on corporate and servicepremium 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
Why travel matters 9% GDP 1/11 jobs $1.5tn exports 6% of world s exports 30% of services exports Direct, indirect and induced Direct, indirect and induced We are at the heart of one of the world s largest industries Source: The World Tourism Organization (UNWTO)
A truly global industry by definition International travel arrivals reached a record of over 1.1bn people in 2014 181m 16% Source: The World Tourism Organization (UNWTO) 582m 51% 56m 5% 51m 5% 263m 23%
Consumer spending (especially in APAC) driving growth Middle class consumer spending Outer ring: 2030 in $tn (projected) Inner ring: 2009 in $tn $11.1 $5.6 North America $5.5 Europe $8.1 $4.9 Asia Pacific $32.9 +571% growth Sub-Saharan Africa $0.6 $0.4 $0.9 $2.2 $1.5 $3.3 Central/ South America Source: OECD Middle East & North Africa
Air travel likely to double in the next 20 years Incremental passenger journeys by region (millions, 2014-2034) and annual average growth (%) +651m 3.3% +328m 4.4% Source: Passenger Forecasts Global Report by IATA and Tourism Economics (an Oxford Economics company) and dated April 2015 +577m 2.6% +190m 4.9% +250m 5.1% +1,753m 4.9% +3.7bn incremental passenger journeys by 2034 4.0% annual average growth 2014-2034 2.2x passenger journeys in 2034 compared with today
which means airline capacity must grow Source: McKinsey, UNPD, Airbus GMF2015 >50,000 daily long-haul passengers >20,000 daily long-haul passengers >10,000 daily long-haul passengers
which means airline capacity must grow 2.3m daily passengers: long-haul traffic on routes to/from/ via 91 cities...to 91 megacities by 2034 Source: McKinsey, UNPD, Airbus GMF2015 >50,000 daily long-haul passengers >20,000 daily long-haul passengers >10,000 daily long-haul passengers 95%+ of long-haul traffic on routes to/from/ via 91 cities 35% of world GDP centered in 91 cities
We are integral to the travel ecosystem Travel buyers Travel providers Online travel agencies Offline travel agencies Travel management companies Corporations Tour operators Meta-search Shop Book Modify Cancel Itinerary creation Ticketing System integration Workflow integration Payments to travel providers Expense management and compliance ~400 airlines ~650k >650k hotels ~100k chain ~550k independent ~36k car rental locations ~60 61 cruise lines and tour operators 13 12 major rail networks
...and our capabilities are difficult to replicate Travel buyers Online travel agencies Offline travel agencies Travel management companies Corporations Tour operators Meta-search 1 trillion transactions processed per year 10 billion fares loaded in our system 4.7 billion itineraries priced every day 550 million changes made to segments in 2014 Travel providers ~400 airlines ~650k >650k hotels ~100k chain ~550k independent ~36k car rental locations ~60 61 cruise lines and tour operators 13 12 major rail networks
Focused on markets where choice and flexibility are key Sent: 12 November 2015 15:27 To: Gordon Wilson Subject: Itinerary for Investor Day Week Email: UPDATE Board Meeting Changed From London To New York Sent: 12 November 2015 15:27 To: Gordon Wilson Subject: Itinerary for Investor Day Week Tuesday 15 th Dec Board meeting in London 08:00-15:30 Car to airport 16:00 Flight LHR-JFK 19:00 Car JFK to hotel 22:00 (ET) Hotel reservation Tuesday night Wednesday 16 th Dec Car to investor meeting 07:00 Car to hotel 17:00 Dinner reservation 18:00 Hotel reservation Wednesday night Thursday 17 th Dec Car to Travelport Investor Day 07:00 Car to airport 17:00 Flight JFK-LHR 20:30 Friday 18 th Dec Car LHR to office 07:30 Tuesday 15 th Dec Board meeting in London 08:00-15:30 Car to airport 16:00 Flight LHR-JFK 19:00 Car JFK to hotel 22:00 (ET) Hotel reservation Tuesday night Wednesday 16 th Dec Car to investor meeting 07:00 Car to hotel 17:00 Dinner reservation 18:00 Hotel reservation Wednesday night Thursday 17 th Dec Car to Travelport Investor Day 07:00 Car to airport 17:00 Flight JFK-LHR 20:30 Friday 18 th Dec Car LHR to office 07:30
Focused on markets where choice and flexibility are key Outbound Flight: Outbound Flight: Booking Change Confirmed Reschedule flight Tuesday 15 th December 19:00 7 1 2 3 4 5 6 8 9 10 11 12 13 Outbound Flight: Monday 14 th December 19:00 14 15 16 17 18 19 20 Reschedule car Arrive: JFK, New York 21 28 22 23 24 25 26 27 29 30 31 Arrive: JFK, New York Reschedule hotel Reschedule Confirm Back to Menu 20+ Changes made in the background
Focused on markets where choice and flexibility are key Car to Hotel: Car Booking Date Car Booking Confirmed Reschedule flight Tuesday 15 th December 22.00 7 1 2 3 4 5 6 8 9 10 11 12 13 Car to Hotel: 14 15 16 17 18 19 20 Monday 14 th December 22.00 Reschedule car 21 22 23 24 25 26 27 28 29 30 31 Reschedule hotel Reschedule Confirm Back to Menu 20+ Changes made in the background
Focused on markets where choice and flexibility are key Hotel Stay Dates: Hotel Booking Dates Hotel Booking Confirmed Reschedule flight Check In: Tuesday 15 th December Check Out: Thursday 17 th December 7 14 1 2 3 4 5 6 8 9 10 11 12 13 15 16 17 18 19 20 Hotel Stay Dates Check In: Monday 14 th December Reschedule car 21 28 22 23 24 25 26 27 29 30 31 Check Out: Thursday 17 th December Reschedule hotel Reschedule Confirm Back to Menu 20+ Changes made in the background
Focused on markets where choice and flexibility are key Sent: 03 12 December November 2015 14:17 15:27 To: To: Gordon Wilson Subject: UPDATE Itinerary - Board for Investor Meeting Day Changed Week From London To New York Sent: 12 November 2015 15:27 To: Gordon Wilson Subject: Itinerary for Investor Day Week Tuesday 15 th Dec Board meeting in London 08:00-15:30 Car to airport 16:00 Flight LHR-JFK 19:00 Car JFK to hotel 22:00 (ET) Hotel reservation Tuesday night Wednesday 16 th Dec Car to investor meeting 07:00 Car to hotel 17:00 Dinner reservation 18:00 Hotel reservation Wednesday night Thursday Thursday 17 17 th th Dec Dec Car Car to to Travelport Travelport Investor Investor Day Day 07:00 07:00 Car Car to to airport airport 17:00 17:00 Flight Flight JFK-LHR JFK-LHR 20:30 20:30 Friday Friday 18 18 th th Dec Dec Car Car LHR LHR to to office office 07:30 07:30 Tuesday 15 th Dec Board meeting in London 08:00-15:30 Car to airport 16:00 Flight LHR-JFK 19:00 Car JFK to hotel 22:00 (ET) Hotel reservation Tuesday night Wednesday 16 th Dec Car to investor meeting 07:00 Car to hotel 17:00 Dinner reservation 18:00 Hotel reservation Wednesday night Thursday 17 th Dec Car to Travelport Investor Day 07:00 Car to airport 17:00 Flight JFK-LHR 20:30 Friday 18 th Dec Car LHR to office 07:30
Much more than a GDS Airline content Network carriers Low cost carriers Airline merchandising Ancillaries Tailored offerings (Rich Content and Branding) Distribution Travel Commerce GDS IT Solutions Platform Hotels ~650,000 chain & independent hotel properties Other distribution ~60 cruise lines 13 major rail networks Content Hospitality Hotels Rental car and ground transport B2B travel industry digital media Payments enett Front-End Back-end: IT solutions Car rental ~36,000 car rental locations Mobile commerce MTT Locomote
Differentiated platform with compelling financial drivers Segment volume x RevPas = Travel Commerce Platform revenue Technology + Services = Air Beyond Air Air, hotel and other travel agency segments Airline distribution and merchandising Hospitality (hotel, car and other) attachment Payments Mobile commerce Strong focus on higher value away and international business
Differentiated platform with compelling financial drivers Airline distribution and merchandising Hospitality attachment 65% of Air segment revenues from away bookings (Q3 2011: 57%) 133 airlines actively merchandising their enriched product content through Travelport, including branded fares and ancillaries Hospitality segments per 100 airline tickets issued 49 45 42 42 39 Q3 15 Q3 14 Q3 13 Q3 12 Q3 11 Mobile commerce Payments $66m (for the 9 months ended Sep 30, 2015) $67m $45m $19m enett reported revenue $m $2m YTD 15 FY 14 FY 13 FY 12 FY 11
Differentiated platform with compelling financial drivers Beyond Air revenue $74m $84m $96m $110m $129m Q3 11 Q3 12 Q3 13 Q3 14 Q3 15 24% of Travel Commerce Platform revenue from Beyond Air (Q3 2011: 16%)
Differentiated platform with compelling financial drivers $5.23 Hospitality segments per 100 airline tickets issued Travel Hospitality Commerce attachment Platform RevPas (Revenue per reported segment) 49 $5.39 $5.60 45 42 42 $5.67 39 Q3 15 $6.29 Q3 14 Q3 13 Q3 12 Q3 11 $66m (for the 9 months ended Sep 30, 2015) $67m enett reported revenue $m Q3 11 Q3 12 Q3 13 Q3 14 Q3 15 71% FY 14 of Travel Commerce Platform revenue from $45m higher value international markets FY 13 (Q3 2011: 63%) $19m FY 12 $2m YTD 15 FY 11
A strong and experienced management team Presenting today Gordon Wilson President and Chief Executive Officer Philip Emery Chief Financial Officer Stephen Shurrock Chief Commercial Officer (from January 4, 2016) Terry Conley Capability and Performance Matt Minetola Chief Information Officer Niklas Andreen Managing Director, Hospitality Jason Clarke Managing Director, Agency Commerce Derek Sharp Managing Director, Air Commerce Anthony Hynes Chief Executive Officer Gerry Samuels Founder
A strong and experienced management team Bernard Bot Chief Financial Officer (effective January 1, 2016) Previously CFO at Aer Lingus Plc, Ireland s national airline, who were recently acquired by IAG (International Airlines Group), the parent group of both British Airways and Iberia Bernard will be based in the company s global headquarters in Langley, UK, and report into President and CEO, Gordon Wilson Before joining Aer Lingus, Bernard was CFO of TNT Express N.V., the international courier company listed on NYSE Euronext Amsterdam
with a strong track record of delivery Industry-leading travel content Overcome impact of renegotiated legacy contracts NDC-ready technology platform ~15% CAGR in Beyond Air since 2011 Optimized point-of-sale technology Much-strengthened capital structure Digital asset base to support omni-channel delivery of content Strengthened talent pool and leadership team
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