Gordon Wilson - s3.amazonaws.comWilson+-+Overview+FINAL.pdf · System integration Workflow integration Payments to travel providers Expense management and compliance ... Hotel reservation

Gordon Wilson President and Chief Executive Officer December 17, 2015

Strong core

Core business model is resilient,

recurring and transaction-based

with strong competitive advantages

Creating long-term shareholder value

Differentiated focus

Differentiated “platform”

approach to address evolving travel

commerce ecosystem – in

airline merchandising,

hospitality, mobile commerce and

payments

Leading technology

Significantly upgraded

technology platform and

industry-leading product suite

Truly global

Broad international presence to

leverage international focus of our customers

Focused on the markets

that need us

Strong focus on corporate and

service-premium travel

Compelling financials

Entering clear growth phase with multiple,

compelling drivers

Disciplined capital

allocation

Capital-light model with strong

free cash flow generation and

clear and disciplined

approach to capital allocation

Why travel matters

We are at the heart of one of the world’s largest industries

9% GDP

Direct, indirect and induced

1/11 jobs

Direct, indirect and induced

$1.5tn exports

6% of world’s

exports

30% of services

exports

Source: The World Tourism Organization (UNWTO)

International travel arrivals reached a record of over 1.1bn people in 2014

582m 51%

56m 5%

51m 5%

263m 23%

181m 16%

A truly global industry by definition

Source: The World Tourism Organization (UNWTO)

Consumer spending (especially in APAC) driving growth

Source: OECD

+571% growth

Asia Pacific $32.9

$4.9

$11.1

Europe $8.1

North America

$5.5

$5.6

$0.4

$0.6 Sub-Saharan

Africa

$0.9

$2.2

$3.3

$1.5

Central/ South America

Middle East & North Africa

Middle class consumer spending Outer ring: 2030 in $tn (projected) Inner ring: 2009 in $tn

Incremental passenger journeys by region (millions, 2014-2034) and annual average growth (%)

Air travel likely to double in the next 20 years…

+651m 3.3%

+328m 4.4%

+190m 4.9%

+577m 2.6%

+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 Source: Passenger Forecasts – Global Report” by IATA and Tourism Economics (an Oxford Economics company) and dated April 2015

>50,000 daily long-haul passengers


>10,000 daily long-haul passengers Source: McKinsey, UNPD, Airbus GMF2015

…which means airline capacity must grow

2.3m daily passengers:

long-haul traffic on routes to/from/

via 91 cities

95%+ of long-haul traffic on routes to/from/

via 91 cities

35% of world GDP centered in

91 cities




...to 91 mega- cities by 2034

Source: McKinsey, UNPD, Airbus GMF2015

…which means airline capacity must grow

We are integral to the travel ecosystem…

Itinerary creation

Ticketing

System integration

Workflow integration

Payments to travel providers

Expense management and compliance

Shop

Book

Modify

Cancel

Travel buyers

Online travel agencies

Offline travel agencies

Travel management companies

Corporations

Tour operators

Meta-search

Travel buyers




Corporations

Tour operators

Meta-search

Travel providers

>650k hotels ~100k chain ~550k independent

~400 airlines

36k car rental locations

61 cruise lines and tour operators

12 major rail networks

Travel providers

~650k hotels ~100k chain ~550k independent

~400 airlines

~36k car rental locations

~60 cruise lines and tour operators


1 trillion transactions processed per year

4.7 billion itineraries priced every day

550 million changes made to segments in 2014

10 billion fares loaded in our system

...and our capabilities are difficult to replicate

Travel buyers




Corporations

Tour operators

Meta-search

Travel buyers




Corporations

Tour operators

Meta-search

Travel providers

>650k hotels ~100k chain ~550k independent

~400 airlines

36k car rental locations

61 cruise lines and tour operators


Travel providers

~650k hotels ~100k chain ~550k independent

~400 airlines

~36k car rental locations

~60 cruise lines and tour operators


Tuesday 15th 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 16th Dec Car to investor meeting 07:00 Car to hotel 17:00 Dinner reservation 18:00 Hotel reservation Wednesday night Thursday 17th Dec Car to Travelport Investor Day 07:00 Car to airport 17:00 Flight JFK-LHR 20:30 Friday 18th Dec Car LHR to office 07:30

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

Focused on markets where choice and flexibility are key

Reschedule car

Reschedule flight

Reschedule hotel

Reschedule flight

Outbound Flight:

Confirm

8 9 10 11 12 13 7

1 2 3 4 5 6

15 16 17 18 19 20 14

22 23 24 25 26 27 21

29 30 31 28

Outbound Flight:

Booking Change Confirmed

Back to Menu

Monday 14th December 19:00

Arrive: JFK, New York

Tuesday 15th December 19:00

Outbound Flight:

Arrive: JFK, New York

Reschedule


20+ Changes

made in the background

Reschedule car

Reschedule flight

Reschedule hotel

Reschedule car

Tuesday 15th December 22.00

Car to Hotel:

Reschedule

Car Booking Date

Confirm

8 9 10 11 12 13 7

1 2 3 4 5 6

15 16 17 18 19 20 14

22 23 24 25 26 27 21

29 30 31 28

Car to Hotel:

Car Booking Confirmed

Back to Menu

Monday 14th December 22.00


20+ Changes


Check In: Tuesday 15th December Check Out: Thursday 17th December

Hotel Stay Dates:

Reschedule

Hotel Booking Dates

Confirm

8 9 10 11 12 13 7

1 2 3 4 5 6

15 16 17 18 19 20 14

22 23 24 25 26 27 21

29 30 31 28

Confirm

Hotel Stay Dates

Hotel Booking Confirmed

Back to Menu

Check In: Monday 14th December Check Out: Thursday 17th December Reschedule car

Reschedule flight

Reschedule hotel Reschedule hotel


20+ Changes






Sent: 03 December 2015 14:17 To: Gordon Wilson Subject: UPDATE - Board Meeting Changed From London To New York

Thursday 17th Dec Car to Travelport Investor Day 07:00 Car to airport 17:00 Flight JFK-LHR 20:30 Friday 18th Dec Car LHR to office 07:30

Wednesday 16th Dec Car to investor meeting 07:00

Car to hotel 17:00 Dinner reservation 18:00 Hotel reservation Wednesday night


GDS

Hospitality Hotels Rental car and ground transport B2B travel industry digital media

Mobile commerce MTT Locomote

Airline merchandising Ancillaries Tailored offerings (Rich Content and Branding)

Payments eNett

Fron

t-End

GDS

Airline content Network carriers

Low cost carriers

Hotels ~650,000 chain & independent hotel properties

Car rental ~36,000 car rental locations

Other distribution ~60 cruise lines


Much more than a GDS

Back-end: IT solutions

Co

nten

t

GDS IT Solutions

Distribution Travel Commerce

Platform

Differentiated platform with compelling financial drivers

RevPas x Segment volume

Travel Commerce Platform revenue

Technology Services + =

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

=

Beyond Air

Air

Payments Mobile commerce



$2m

$19m

$45m

$67m

FY 11

FY 12

FY 13

FY 14

YTD 15$66m (for the 9 months ended Sep 30, 2015)

65%

of Air segment revenues from ‘away’ bookings

(Q3 2011: 57%)

airlines actively merchandising their enriched product content through Travelport, including branded fares

and ancillaries

133

Hospitality attachment

Hospitality segments per 100 airline tickets issued

eNett reported revenue $m

39

42

42

45

49

Q3 11

Q3 12

Q3 13

Q3 14

Q3 15

Payments Mobile commerce


65%

of Air segment revenues from ‘away’ bookings

(Q3 2011: 57%)

airlines actively merchandising their enriched product content through Travelport, including branded fares

and ancillaries

133




39

42

42

45

49

Q3 11

Q3 12

Q3 13

Q3 14

Q3 15

$2m

$19m

$45m

$67m

FY 11

FY 12

FY 13

FY 14



Beyond Air revenue

$74m $84m

$96m $110m

$129m

Q3 11 Q3 12 Q3 13 Q3 14 Q3 15

of Travel Commerce Platform revenue from Beyond Air (Q3 2011: 16%) 24%


$2m

$19m

$45m

$67m

FY 11

FY 12

FY 13

FY 14





39

42

42

45

49

Q3 11

Q3 12

Q3 13

Q3 14

Q3 15

Travel Commerce Platform RevPas (Revenue per reported segment)

$5.23 $5.39 $5.60

$5.67 $6.29

Q3 11 Q3 12 Q3 13 Q3 14 Q3 15

of Travel Commerce Platform revenue from higher value international markets (Q3 2011: 63%)

71%

A strong and experienced management team…

Niklas Andreen Managing Director,

Hospitality

Derek Sharp Managing Director,

Air Commerce

Philip Emery Chief Financial Officer

Terry Conley Capability and Performance

Matt Minetola Chief Information Officer

Stephen Shurrock Chief Commercial Officer

(from January 4, 2016)

Anthony Hynes Chief Executive Officer

Gerry Samuels Founder

Gordon Wilson President and

Chief Executive Officer

Jason Clarke Managing Director, Agency Commerce

Presenting today

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

A strong and experienced management team…

…with a strong track record of delivery

Much-strengthened capital structure

~15% CAGR in Beyond Air since 2011

Overcome impact of renegotiated legacy contracts

Strengthened talent pool and leadership team

Optimized point-of-sale technology

NDC-ready technology platform

Industry-leading travel content

Digital asset base to support omni-channel delivery of content

Strong core

Creating long-term shareholder value

Differentiated focus

Leading technology

Truly global Focused on the markets

that need us

Compelling financials

Disciplined capital

allocation

Documents

Gordon Wilson - s3.amazonaws.comWilson+-+Overview+FINAL.pdf · System integration Workflow integration Payments to travel providers Expense management and compliance ... Hotel reservation