redefining travel commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain...

31
Redefining Travel Commerce Roadshow Q3 2016

Upload: others

Post on 22-Mar-2020

3 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

Redefining Travel CommerceRoadshow Q3 2016

Page 2: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

Disclaimers

2

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 Reports on Form 10-Q for the quarter ended March 31, 2016, filed with the SEC on May 5, 2016, for the quarter ended June 30, 2016, filed with the SEC on August 4, 2016 and for the quarter ended September 30, 2016, filed with SEC on November 3, 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. We utilize these measures to provide useful supplemental information to assist investors in understanding and assessing our performance and financial results on the same basis that management uses internally. These adjusted financial measures provide investors greater transparency with respect to key metrics used by management to evaluate our core operations, forecast future results, determine future capital investment allocations and understand business trends within the industry. Management believes the adjusted financial measures assist investors in the comparison of financial results between periods as such measures exclude certain items that management believes are not reflective of our core operating performance consistent with how management reviews the business. 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 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.

Page 3: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

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

Page 4: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

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

Page 5: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

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 on Sabre Sonic Product

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

Page 6: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

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

Page 7: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

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

7

The key proof points of our industry-leading platform

1 As of November 3, 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

>180

eNett revenue

9M 2016 revenue up +72% YoY to $113m

9M 2016 47

Page 8: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

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

Page 9: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

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 September 30, 2016) derived from airlines signed to Rich Content and Branding as of November 3, 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 >180 airlines implemented and >200 signed (fare families & ancillaries) Amadeus has 32 implemented and 42 signed for fare families, and Sabre…???

Page 10: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

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

Page 11: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

• 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

• Travelport Passenger Insights: Partnership with Mastercardproviding our customers with detailed insights into passenger spend behavior and trends

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

Page 12: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

12

Case study: Value-add solutions for Emirates’direct selling channels

Page 13: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

International regions(~70% of total GDS market) tend to yield higher RevPas and margins than the US

InternationalGDS segments4% CAGRbetween Q3 12 and Q3 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

Q316

Travelport Amadeus Sabre & Abacus

Page 14: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

• ~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 fully integrated capability

• Growing at a rate which is c. 8x 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)

Page 15: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

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 7.2, launched November 2016

15

Powering hotel distribution to corporate and retail

Page 16: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

16

Focus on digital 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

26 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 channel

Key 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

Page 17: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

$92m reported revenue in FY 2015 for Travelport9M 2016 growth +72%

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 growth

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

Page 18: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

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

2011 2012 2013 2014 2015 9M 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

>120% of FY 2015 revenue

$113

Page 19: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

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; +21% in 9M 2016

eNett revenueup 36% in FY 2015; +72% in 9M 2016

Hospitality attachment rate1 reached 47% in 2015; 47% - 9M 2016

Mobile performing well with recent major business wins including Etihad Airways, AMEX GBT, AeroméxicoSilkAir, Collinson Group, XL Travel…..

1 Hospitality segments per 100 airline tickets issued

+14%

+14%

+16%

Page 20: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

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%

Continued investment

Mergers and acquisitions

Returns to debt holders

Returns to equity holders

Significant reduction in total debt, from $3.8bn in 2011 to $2.2bn 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

Page 21: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

The information presented here represent forward-looking statements and reflect our expectations as of November 3, 2016. We assume no obligation to update these statements. Results may be materially different and are affected by many factorsdetailed in this 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, for the quarter ended June 30, 2016, filed with the SEC on August 4, 2016 and for the quarter ended September 30, 2016, filed with the SEC on November 3, 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 November 3, 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

Page 22: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

Q3 2016 Earnings

Page 23: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

Q3 2016 financial highlights

Net Revenue AdjustedEBITDA

AdjustedNet Income

AdjustedEPS (diluted)

AdjustedFree Cash Flow

6% YoY 15% YoY $11m YoY $0.08 YoY $52m YoY

$591m $150m $41m $0.33 $83m

23

Travel Commerce Platform revenue up 6%– Air revenue up 2%– Beyond Air revenue up 18% (with eNett up 60%)

Technology Services revenue down 3%

Adjusted EBITDA up 15% to $150m

Driven by International growth and FX movements

Adjusted Free Cash Flow $52m higher due to Adjusted EBITDA growth and interest/timing benefits

Page 24: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

Revenue and Reported Segments

Travel Commerce Platform Revenue (YoY growth)

RevPas progression (YoY growth)

Regions (% growth) RevenueReportedSegments

International +9% YoY +1% YoY

US (2)% YoY (2)% YoY

All Regions +6% YoY —

International % 73%1 59%2

Memorandum disclosure3

US Ex Orbitz +4% YoY +1% YoY

All Regions Ex Orbitz +8% YoY +1% YoY

Air YoY 3% 1% 2% 2%

Beyond Air YoY 15% 14% 17% 18%

Q3 2016 Travel Commerce Platform revenue & Reported Segments - YoY Growth (%)

24

Q3 2013 Q3 2014 Q3 2015 Q3 2016

$6.29 $5.60 $5.67 $6.67

+1%YoY

+11%YoY

+6%YoY

CAGR+6%

CAGR+5%

Q3 2013 Q3 2014 Q3 2015 Q3 2016

+4%YoY

+5%YoY

+6%YoY

+5%YoY

$483m $501m $528m $560m

+4%YoY

1 Represents International revenue as a percentage of Travel Commerce Platform revenue2 Represents International Reported Segments as a percentage of Travel Commerce Platform Reported Segments3 Represents growth excluding the YoY impact of our renegotiated long-term contract with Orbitz Worldwide which was effected on January 1, 2015

Page 25: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

25

Recent developments – Air

Away1

Air revenue

Q3 201666%2

AwayAir segments

Q3 201646%3

Airline merchandising

Q3 2016>180 Airlines4

Air revenue ($m)

CAGR+2%

$387m $390m $399m $408m

+3%YoY

+1%YoY

+2%YoY

+2%YoY

Q3 2016Q3 2015Q3 2014Q3 2013

1 Away bookings are defined as bookings made by travel buyers located outside the travel provider’s home country2 Represents % of total air segment revenue from Away bookings3 Represents % of total air segments from Away bookings4 Airlines live with merchandising including fares families, branded fares, ancillaries and tailored offers as of November 3, 2016

Air revenue up 2% with good performance in Europe and Asia Pacific, and RevPas benefit from airline merchandising

Continue to lead the industry for airline merchandising with >210 airlines signed and >180 implemented

Industry-first partnership with IndiGo, India’s largest carrier and one of the world’s fastest growing airlines

Strategic partnership with Mastercard expanding our data and analytics services to the airline industry

Page 26: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

Beyond Air revenue up 18% (almost all organic) with growth across payments, mobile and hospitality

Attachment rate maintained at 49; with hospitality segments and airline tickets issued both increasing

Renewal of long-term mobile partnership with easyJet. Launched new apps for Aeroméxico and SilkAir. Added Collinson Group and XL Travel as new customers

eNett revenue up 60% (9M: up 72%). Continue to onboard new customers and grow share of wallet with existing customers

49 – Hospitality attachment1

Recent developments – Beyond Air

Beyond Air revenue ($m)

CAGR+16%

Q3 2016

stable YoY

17m – Hotel room nights sold

Q3 2016

+3% YoY

26m – Car rentaldays sold

Q3 2016

+2% YoY

Q3 2013 Q3 2014 Q3 2015 Q3 2016

$96m $111m $129m $152m

+15%YoY

+14%YoY

+17%YoY

+18%YoY

Q3 2013 Q3 2014 Q3 2015 Q3 2016

eNett revenue ($m)

+127%YoY

+44%YoY

+48%YoY

+60%YoY

CAGR+51%$12m $18m $27m $42m

261 Hospitality segments per 100 airline tickets issued

Page 27: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

Summarized income statement (1 of 2)

* SG&A – excluding ‘Non-core corporate costs’27

$ millions Q3 2016 Q3 2015 Better / (Worse)

Net revenue 591 560 6%

Commissions (274) (261) (5)%

Add back: Amortization of CLPs 21 15 44%

Subtotal 338 314 8%

% of Net revenue 57.2% 56.0% 1.2ppts

Technology costs (78) (75) (4)%

SG&A* (110) (108) (2)%

Adjusted EBITDA 150 131 15%

% of Net revenue 25.5% 23.4% 2.1ppts

Depreciation on property and equipment (42) (38) (9%)

Amortization of CLPs (21) (15) (44%)

Adjusted Operating Income 88 78 12%

% of Net revenue 14.9% 14.0% +0.9ppts

Adjustments (to GAAP Operating Income) (26) (24) (6%)

GAAP Operating Income 62 54 15%

Page 28: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

Summarized income statement (2 of 2)

n/m = percentage calculated not meaningful1 ‘Interest expense, net’ in Q3 2016 excludes a $5m unrealized gain on interest rate derivative contracts, which is included within GAAP interest expense, net2 ‘Remaining provision for income taxes’ excludes the tax impact of items excluded from Adjusted Net Income

28

$ millions Q3 2016 Q3 2015 Better / (Worse)

Adjusted Operating Income 88 78 12%

Interest expense, net1 (34) (40) 15%

Subtotal 54 38 41%

Remaining provision for income taxes2 (13) (8) (61)%

Adjusted Net Income 41 30 36%

Amortization of acquired intangible assets (12) (18) 34%

Other adjustments (to GAAP Net Income) (8) (7) (9%)

GAAP Net Income 21 5 n/m

Adjusted Earnings Per Share – diluted $0.33 $0.25 $0.08

GAAP Earnings Per Share – diluted $0.17 $0.03 $0.14

Page 29: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

Summary cash flows

n/m = percentage calculated not meaningful1 Includes purchase of property and equipment of $25m (Q3 2015: $23m) and repayment of capital lease obligations and other indebtedness of $11m (Q3 2015: $10m)2 ‘Other adjusting items’ relate to payments for corporate and restructuring costs

29

$ millions Q3 2016 Q3 2015 Better / (Worse)

Adjusted EBITDA 150 131 15%

Interest payments (24) (36) 34%

Tax payments (6) (5) (36)%

Changes in working capital and other related items 12 (11) n/m

Customer loyalty payments (13) (13) 6%

Defined benefit plan funding (1) (1) 17%

Capital Expenditures1 (36) (33) (7)%

Adjusted Free Cash Flow 83 31 167%

Other adjusting items2 (8) (3) n/m

Dividend to shareholders (9) (9) -

Repayment of term loans (56) (6) n/m

Acquisitions - (61) n/m

Other 2 22 n/m

Net increase/(decrease) in cash and cash equivalents 11 (26) n/m

Page 30: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

Net Debt and Leverage

30

Net Debt down to $2.2bn

Net leverage ratio falls to 3.9x

$ millions September 30, 2016 June 30, 2016 March 31, 2016Term Loan1 2,240 2,292 2,296

Capital leases and other indebtedness 119 118 129

Cash (138) (127) (128)

Net Debt 2,220 2,284 2,297

LTM Adjusted EBITDA2 573 554 552

Ratio 3.9x 4.1x 4.2x

1 Net of unamortized debt discount and unamortized debt issuance costs2 Adjusted EBITDA on a last twelve months (LTM) basis

Voluntary prepayment

In September, we made a voluntary prepayment of $50m (principal) of term

loans

Reminder of key terms

No significant maturities until 2021.

Further opportunity to re-price/re-finance post

December 2016

Q3 benefit from re-price

Now paying LIBOR +400bps (with 1% LIBOR floor).

Interest rate swap (fixed at 1.4%) on notional

$1.4 billion effective from Feb 2017

Page 31: Redefining Travel Commercefilecache.investorroom.com/mr5ir_travelport/363... · ~650,000 chain & independent hotel properties Car rental ~36,000 car rental locations Other distribution

Redefining Travel CommerceRoadshow Q3 2016