Amadeus Introductory presentation May 2013 - Investor relations at ...

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Amadeus Introductory presentation May 2013 - Investor relations at ...

Strictly private and confidentialMay 2012Amadeus Introductory presentationMay 2013© 2010 Amadeus IT Group SA


DisclaimerThese materials are being communicated only to persons who have professional experience in matters relating to investments and to persons towhom it may be lawful to communicate them (all such persons being referred to as “relevant persons”). These materials are only directed atrelevant persons and any investment or investment activity to which the presentation relates is only available to relevant persons or will beengaged in only with relevant persons. Solicitations resulting from these materials will only be responded to if the person concerned is arelevant person. Other persons should not rely or act upon these materials or any of their contents. Investors and prospective investors insecurities of the company are required to make their own independent investigation and appraisal of the business and financial condition of thecompany.This presentation is strictly confidential and is being furnished to you solely for your information. It may not be reproduced or redistributed to anyother person, and it may not be published, in whole or in part, for any purpose. These materials may not be removed from the location of therelated presentation. By receiving this presentation, you become bound by the above-referred confidentiality obligation. Failure to comply withsuch confidentiality obligation may result in civil, administrative or criminal liabilities.The distribution of this presentation may also be restricted by law and persons into whose possession this presentation comes should informthemselves about and observe any such restrictions.This presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy any securities in the United States orelsewhere nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment to purchase shares.Securities may not be offered or sold in the United States absent registration or an exemption from registration under the US Securities Act of1933, as amended (the “Act”). Amadeus IT Holding, S.A. (the “Company”) has not and does not intend to register any securities under the Actor offer any securities to the public in the United States.No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness. Norepresentation or warranty, express or implied, is given or will be given by or on behalf of the Company, or their respective affiliates or agents, orany of such persons’ directors, officers, employees or advisors or any other person as to the accuracy, completeness or fairness of theinformation or opinions contained in this document and any reliance you place on them will be at your sole risk. In addition, no responsibility,obligation or liability (whether direct or indirect, in contract, tort or otherwise) is or will be accepted by the Company or any other person inrelation to such information or opinions or any other matter in connection with this document or its contents or otherwise arising in connectiontherewith.This presentation includes forward-looking statements. All statements other than statements of historical fact included in this presentation,including, without limitation, those regarding our financial position, business strategy, management plans and objectives or future operations andcontracted customers are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties andother factors, which may cause our actual results, performance or achievements, or industry results, to be materially different from thoseexpressed or implied by these forward-looking statements. These forward-looking statements are based on numerous assumptions regardingour present and future business strategies and the environment in which we expect to operate in the future. Forward-looking statements speakonly as of the date of this presentation and we expressly disclaim any obligation or undertaking to release any update of or revisions to anyforward looking statements in this presentation, any change in our expectations or any change in events, conditions or circumstances on whichthese forward-looking statements are based.This presentation also includes certain non-GAAP (Generally Accepted Accounting Principles) financial measures which have not been subjectto a financial audit for any period.By attending this presentation you agree to be bound by the foregoing limitations2


Amadeus, the leading technology provider for the travelindustryTravel providersTravelagenciesTravelbuyersAirlinesHotelsRailway operatorsCar rentalDistributionProvision of indirect distribution servicesOnline andoffline travelagenciesConsumers/GeneralpublicCorporatetraveldepartmentsTour operatorsCruise and ferriesInsurance companiesIT SolutionsProvision of IT solutions to travel providersKey global player in the c. €60bn growingtravel and technology marketTransaction-based business model:Volume driven, highly resilient and profitableTwo highly synergistic and profitablebusinessesLoyal customer base: Long term contractsand over 90% recurring revenuesStrong barriers to entryStrong cash flow generation profile3


Global leader in our two business linesGlobal Distribution System (GDS)estimated 2012 market sharePassenger Service System (PSS)estimated market share by passengers 2012Others61%Amadeus39%Amadeus#1 #125%Others75%̌ Leading market share in high growthemerging regionš Ongoing market share gainš Unique new-generation solutioň Ongoing market share gainš Further opportunities in new segments (e.g.hybrid carriers) GDS: most efficient means of traveldistribution globally Resilient market, proven track record forconsistent growth despite challenges High growth / high profitability softwarebusiness Highly differentiated offering, limitedcompetition and strong barriers to entry Strong implementation backlog and pipelineSource: Amadeus estimates based on publicly available information for GDS and PSS market share. PSS market share based on total passengers excluding China4


A Successful transaction processing modelTravelproviders Travel providers provide theircontent to Amadeus, free of cost,obtaining access to a powerfuldistribution channel, travelagencies around the globe A booking fee is paid toAmadeus when a booking is donein the Amadeus systemBooking fee(transactional fee)DistributionProvision of indirect distribution services(travel agency channel)Fees for TravelAgency ITIncentive andDistribution fees(transactional fee)Travelagencies Travel agencies select Amadeusfor real-time search, booking,ticketing and other mid andback-office solutions Amadeus pays an incentive feewhen a booking is done usingthe Amadeus system Travel agencies pay IT fees fortechnology and functionalityIT SolutionsProvision of IT solutions to travel providersTravelproviders Amadeus provides travel providers(mainly airlines) IT solutions (e.g.mission critical passenger managementsolutions and e-commerce platform) A transactional fee is paid toAmadeus for the use of the technologyTransactional feesand other revenue5


An unparalleled track recordRevenue (€ mm)EBITDA (€ mm)CAGR ‘00-’04:+7.6%CAGR ‘04-’12:+6.1%2,910CAGR ‘00-’04:+9.7%CAGR ’04-’12:+9.1%1,1081,8175531,3573822000 2004 2012 (1)Note: 2000 and 2004 figures refer to the Amadeus predecessor groupentity, listed in the capital markets from 1999 until its delisting in July 20052000 2004 2012% Margin 28.2%30.4% 38.1%(1)1. Excluding Opodo. Excludes extraordinary items related to the IPO and the United Airlines IT contract resolution6


Amadeus key investment highlights123456Global leader in a robust Distribution business, with significant barriers to entryGlobal leader in the IT Solutions business, a established and high growthbusiness with large revenue visibilitySustainable competitive advantages and barriers to entry driven by investmentin R&D and network effecť Differentiated technology focus, highly investeď Only player in the industry to operate a fully-owned data centreSuccessful business modeľ Transaction based: resilient to economic cycle, economies of scaleSynergistic businessesFinancial performance: strong growth, profitability and cash flow generation7


1Global leader in Distribution, having steadily gainedmarket share with travel agencies …44%42%40%Amadeus Travelport SabreEstimatedair market sharegain (2000-2012)40%39%+13 pp38%36%34%32%30%30%30%+0 pp28%26%26%26%-14 pp24%22%2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Leading GDS globallyWell positioned in fast growing emerging marketsSource: Numbers of travel agency air bookings according to Company estimates. Excludes air bookings made through in-house or single country operators, primarily inChina, Japan, South Korea and Russia. Where competitors have merged in past, combined totals shown pre merger. 4 th competitor with market share c.5% not shown8


1…thanks to our superior offering which positions us wellfor further and profitable market share gains …What do travel agencies need?ContentAmadeus comprehensive value proposition Multi year content agreements Wide breadth of global and local contentProduct FunctionalityCustomer Service &Relationships Continuous commitment to innovation Investment in best-in-class technology Leading shopping, booking, and fulfillment functionality Local offices in 73 countries serving over 195 countries System reliability supported by fully owned data-centre Highly experienced local managers with deep expertiseand long-standing commercial relationshipsPrice (Incentives paid) The balancing item Amadeus superior offering = lower economic incentives9


1… in an industry where market share is critical,generating powerful network effects and barriers to entryMore travelproviders onthe platformMore attractiveto travelagenciesAmadeus:Over 700Airlines,250,000 hotels+ othersMorerevenuesMoreinvestmentin ITAmadeus:Around 39%market shareglobally of travelagency airbookingsBetterproductsMore attractiveto travelprovidersMore travelagencysubscribersHigh barriers to entry: technology and network difficult to replicateMarket share critical: global reach as a core GDS value proposition10


1The Distribution business exhibits strong resilience:sustained volumes and pricing powerAmadeus Annual Bookings (m)Resilient Unit Booking Fee (1) (€)373391428 431413442464 477€3.58€3.73 €3.78 €3.78 €3.74 €3.82 €3.81€3.952005 2006 2007 2008 2009 2010 2011 20122005 2006 2007 2008 2009 2010 2011 2012Value-based pricing: based on origin of bookingLocalless value,lowest fee Bookings made intravel agenciesbased in airlinehome countryRegionalmedium value,medium fee Intermediatebetween globaland localGlobalmost value,highest fee Provide access todifficult to reachcustomer (e.g. nonhomecountry)Resilient volumes:sustained traffic growth + market share gainsSustained booking fee:value-based pricing model, GDS value proposition1. Unit booking fee: Booking revenue / total bookings (air and non-air)11


1Key drivers for Distribution showing favourable trends:global GDP growth and disintermediationTravel DemandBookingProcessCompetition DynamicsTraffic Growth Disintermediation Market ShareGlobal GDPGrowthAir TrafficIncreaseGDS MarketIncreaseAmadeusBookingsIncreaseHistorical ratio betweengrowth in air travel andgrowth in GDP of 1.3x-1.6xDirect vs. Indirect Channel:Disintermediation trendsslowing downAmadeus set to continue togain market shareThe GDS Channel remains the most efficient means of travel distribution on a global basis betweenairlines and travel agencies and travelers12


1Air travel grows at a multiplier to Global GDP growth2,8002,400CAGR79-81:(0.1)%CAGR91-93:(0.7)%CAGR00-02:(1.0)%CAGR03-07:7.8%CAGR07-09(3.0)%Pax trafficBase 1970RPKs (Revenue passenger kilometres)2,0001,6001,200800400CAGR 70s: 7.8%RecessionaryCAGR 80s: 4.5%ExpansionaryCAGR 94-00: 5.2%01970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012RecessionaryExpansionaryRecessionaryExpansionaryRecessionaryExpansionary1.3-1.6x ratioWorld GDPBase 1970Sources: IATA Traffic (RPKs) from December 2012 Monthly Market Analysis. GDP based on IMF World Economic Outlook figuresHistorical ratio between growth in air travel and growth in GDP of 1.3x-1.6x13


1Disintermediation exists, but is slowing downDisintermediation rate slowing downThe GDS Value PropositionSignificant shift to direct channel already deployed: Consumer behavior increasingly difficult to change Carriers facing difficulty in shifting volumes to directchannel in non-home markets Markets not subject to disintermediation: corporatetravel, complex travel planningLower economic incentive to avoid GDS fees Further growing the direct channel is inefficient,especially in international markets GDS fees for domestic bookings are similar to costof direct distributionThe travel agency model has evolved (online travelagencies, corporate and niche players), and theyeffectively compete with direct channelsLCCs drive disintermediation (direct channel only), but itsmarket is maturing in many geographies and many areturning to GDS to access untapped pockets of demand(corporate, global traffic) and address increasingcomplexity in hybrid business model (e.g. interlining)GDS remain a key enabler of the travel industry and themost efficient distribution channel. It’s added value tothe industry protects it from threats GDS industry has been challenged several times,but threats proved unsuccessfulGlobal reach: airlines can distribute their contentin more than 200 marketsHigher yield: the GDS (travel agency) channelcontributes more:Bookings outside home marketPremium (business / first class) bookingsProcessing power: Amadeus absorbs more than86% of the transactions limiting the strain onairline inventory systems:Partnership opportunities: code sharing andinterliningOther: Optional services, improved travel agencyefficiency, travel agency network managementGlobal reachProcessingpowerHigh yieldcustomersPartnershipopportunities14


2Unique IT Solutions offeringA unique vision, from booking to boardingAltéa Reservation Altéa Inventory Altéa Departure ControlCustomer profilesAvailabilityBookingsFares & PricingTicketingInventory controlSchedule managementSeating managementWaitlist managementRe-accommodationCheck-inBoarding pass issuanceBaggage managementAircraft weight &balancee-CommerceRevenue AccountingRevenue ManagementStandalone IT SolutionsAutomatic Ticket ChangerRevenue Integritye-Ticket Serveretc…e-Retaile-MerchandiseSearch engine15


2 Amadeus Altéa – A unique community based platformoffering significant advantages both to airlines and AmadeusFrom Numerous Legacy PSS…Providers of System Outsourcingand Application Hosting… to Amadeus Community PSSCore systems: 4,000 man-yearsGaps and adaptations: 2,000 man-yearsIn-House Carriers Systems40,000 to 60,000 man-years cumulated effort 7,000 man-years cumulated effortStaff 1 major carrier = 200 heads Staff Airline IT Group ~ 1,600 heads (1) Community-based platform• High economies of scale: core platform designed to support multiple customers• Customisation capability: individual customers identify functional requirements and contribute to theplatform’s funding• New customers are attracted by the functional richness of the platform• Seamless integration with alliances and partnerš Automated, flexible, modular, easy to evolvě Single data source: simplified processes and increased operating efficiency, improved customer service,significant revenue opportunities1. Staff dedicated to product development. Including commercial staff, total heads would reach over 2,00016


2Amadeus Altéa - Established and high growth businesswith significant visibilityVolumes - Passengers Boarded (mm)Altéa Growth Drivers35High visibility with 10-15 year contractsHigh growth with existing contract backlogCAGR 01–11: +29%77564CAGR 12–15: +13%2015 figureestimate based onsigned contracts (1)>800 Implemented in Q1 2013:Czech Airlines, EVA Airways,Ural Airways Thai Airlines: H2 2013 Asiana: H2 2013 Garuda Indonesia: H2 2013 Southwest (Intl) : H1 2014 Other undisclosed: H1 2014 Korean Air: H2 2014 All Nippon Airways (Intl): H120152001 2004 2012 By 2015Strong PipelineIT Solutions play a vital role inoptimising airline business processesAirlines are increasingly cost consciousand willing to outsource: legacysystems (1960’s/1970’s) are outdatedand often cannot address currentbusiness needs efficiently63% of airlines are undertaking plansto upgrade their core passengerservices systems (2)Low cost hybrid carriers have IT needsclose to full service carriers (interlining,scalability)Alliances are triggering the need forcollaborative and open IT platformsAirline mergers act as a catalyst for IToverhauls1. Based on contracts signed and scheduled for migration before December 31, 2015. 2015 estimated annual PB calculated by applying the IATA’s regional air traffic growthprojections to the latest available annual PB figures, based on public sources or internal information (if already in our platform)2. Source: SITA Airline IT Trends Survey 201217


3Strong technology focus and leadership supported byongoing investmentTotal accumulated 2004-2012: c. €2.4bnR&D expenditure (€mm, incl. capitalised R&D)1568.6%CAGR 04–12: +13.0%217 228 2362571919.0% 9.3% 8.8% 9.4% 10.6%349 34413.0% 12.7%41414.2% Sustainablecompetitiveadvantages Barriers to entry(1)2004 2005 2006 2007 2008 2009 2010 2011 2012(2)R&D % of RevenueShift to open systems (3)100%80%60%40%20%0%1996 1998 2000 2002 2004 2006 2008 2010 2012Legacy Unix – Open Systems Linux – Open Systemš Automateď Flexiblě Modulař Easy to evolve1. 2004 figures refer to predecessor group entity2. Revenue including Opodo. 2009 Revenue adjusted for IFRIC 183. Illustrative chart; based on platform activity and payload18


3 Sustainable competitive advantages and barriers toentry supported by our operational capabilitiesBest-in-class fully-owned data centre, core to Amadeus industry leadershipA world class data centre: high performance,high security facilityRedundancy in all critical areas: minimum(n+1) conceptNo single point of failure1.6+ billiontransactionsper day (peak)


4Our transactional business model shows strong resilienceto the economic cycle: profitability not correlated withthat of the airline industry$ Bn € mm40Airline sector operating profit (1) ($ Bn)1,1081,20035Amadeus EBITDA (2) (€ mm)1,0151,0391,000873 882 897308002567961620533 553382491600423154001050(5)2000(200)(10)2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012(3)(400)1. Airline sector operating profit source: IATA–all IATA scheduled passenger airlines.2. EBITDA excludes extraordinary items. 2000-2004 figures refer to predecessor group entity pre-LBO2011 EBITDA does not include Opodo (negatively affecting comparability with 2010 numbers)3. 2012 Airline sector operating profit forecast. (IATA Financial Forecast – December 2012)20


5Only transaction processor with synergistic businessesHighly synergistic Distribution and IT Solutions businessesShared in-house data centreTechnologicalShared platform and networkCommon application software Unique in the industryCommercialIntricate consumer knowledgeCross-selling opportunities toshared customer baseShared global sales presence Enhanced productoffering at low cost Creates a strongcompetitive advantage Hard to replicateOrganisationalLocal presence to support bothareasCustomer support infrastructure Generates economies ofscale and improvedgroup marginsIndustryKnowledgeDeep sector expertise, drivingnew revenue opportunities21


6Amadeus has historically delivered strong Revenueand EBITDA growth and increased profitabilityRevenue (€mm)Post-IFRIC, excl. Opodo30002500200015001000500CAGR 04–09: +6.3%2,3222,1161,8172,578 2,505 2,4612,5942,348(1)2,7072,9102004 2005 2006 2007 2008 2009 2009 2010 2011 20121,1081,039976873 882 897 86367955361629.1% 29.2%33.9% 35.2% 36.5% 36.8% 37.8% 38.4% 38.1%30.4%CAGR 04–09: +10.2%EBITDA and Margin (€mm)CAGR 09–12: +7.4%Post-IFRIC, excl. OpodoCAGR 09–12: +8.7%21016011060 Resilient: over 90%recurring revenuesand 85% transactionalrevenues Not linked to airlineprofits / ticket prices Visibility of futuregrowth Operating leverage Long-term contracts Loyal customer base02004 2005 2006 2007 2008 2009 2009 2010 2011 2012EBITDA EBITDA Margin(2) (2) (2)10Note: 2004 refers to Amadeus predecessor group entity1. Karavel sold in 2008. Impact of Karavel in 2007 was €111mm2. EBITDA excludes extraordinary items related to the IPO and, in 2011, the United Airlines IT contract resolution22


6Both Distribution and IT Solutions have performed stronglyDistributionRevenue(0.3%) (4.9%) 8.5%1,9311,9921,836IT SolutionsRevenue4.4% 5.8%9.6% n.a 17.7% 4.4%2,2012,07962860150051113.0%709.42008 2009 2010 2011 2012Contribution2008 2009 2010 2011 2012Contribution(1)Contribution As % of Revenue907.2 926.3 950.4 974.6872.8Contribution As % of RevenuePre-IFRIC Post-IFRIC409.5334.5 336455.9519.347.0% 47.5% 46.5% 45.7% 44.3%66.9%65.8% 68.1%72.6% 73.2%2008 2009 2010 2011 2012(1)2008 2009 2010 (2)(2) 2011 2012Resilient in the downturn, benefiting from strongrebound in the recoveryMargins largely resilientGrowth driver for the group independent of cycle,providing significant visibilityOperating leverage in the business has favouredmargin expansion1. 2009 figures adjusted for IFRIC 182. Revenue and EBITDA including Opodo. EBITDA excludes extraordinary items related to the IPO and, in 2011, the United Airlines IT contractresolutionNote: contribution is calculated after deducting from our revenue those operating costs which can be directly allocated to the business(variable costs and those product development, marketing and commercial costs which are directly attributable to each business).23


6Strong free cash flow generation and growth, leading tosignificant de-leveraging and increased shareholderremunerationPre-tax free cash flow (1) (€mm)Net debt / EBITDA (2)Target capital structure:CAGR 04–12: 11.0%770705(3)7798298118604.6x4.2x1.0 – 1.5x Net Debt / EBITDA6243.6x5043742.5x1.75x1.34x 1.28x(4)2004 2005 2006 2007 2008 2009 2010 2011 2012Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Mar-131. Defined as: EBITDA including Opodo (and, in 2011, the payment from United Airline’s contract resolution) – capex ±change in working capital. EBITDA excludesextraordinary items (LBO and IPO related costs)2. Covenant definition.3. 2008 capex adjusted for the purchase of a perpetual TPF license4. Adjusted for IFRIC 1824


6Overview of Amadeus’ Debt StructureDebt Maturity Profile as of March 2013 (€mm)12.530750EIB LoansBridge LoanEuro BondBank Financing In May 2011, Amadeus signedan agreement with a group ofinternational banks torefinance its existing debtthrough a new seniorunsecured credit facility106 Covenants:1992482985065656547.515- Max. 3.0x Net Debt/ EBITDA- Min. 3.0x interest coverage2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Bank financingCapital marketsfinancingSummary terms of the facilitiesDescription Amount Maturity CommentAmortizingTerm Loan€745m Nov 2015Euro Bond €750m July 2016 Bullet in July 2016 Amortising: bi-annual payments from May 2013€ 348 MM drawn in Euro / €366 MM in US DollarBridge Loan Bridge loan €106m May 2013 Remaining part of the original Tranche B, partially amortisedEIB LoansRevolving CreditFacilitiesDevelopment loansRevolver€200m€150m€100m€200mMay 2021May 2022May 2013Dec 2014First loan: Senior loan to finance R&D investment in ITAmortising: bi-annual repayments from Nov 2015 (firsttranche of €150m) and Nov 2016 (second tranche of 50m)Second loan: Senior loan to finance R&D investment inDistribution. Amortising: bi-annual repayments from Nov2017, ending in May 2022Currently undrawnAvailable liquidity to cover working capital needs and other In July 2011, Amadeusrefinanced part of the bridgeloan with a €750 MM 5-yearEuro Bond In May 2012 the liquidityposition of the company wasfurther reinforced with thesignature of a new €200mrevolving credit facility. A€200m development loan wassigned with the EuropeanInvestment Bank to financeR&D in IT In June 2012 the bridge loanwas partially cancelled(€350m) with existing cash25


26Current Trading


Resilient and high growth travel industry; weak GDS industry in Q12013 driven by challenging macro environment and cyclical issuesAir Traffic (1) (% Growth, year-on-year)GDS bookings (% Growth, year-on-year)FY: 5.3%FY: 1.2%7.4%4.6%5.6%4.2%3.9%4.2%Adjusted forworking days0.1%0.1%0.3%Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13(0.5%)(1.3%)Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Air traffic growth of 4.2% in Q1 2013 Certain signs of recovery, improving from Q4 2012(3.9% growth)Regionally, strongest growth comes from emergingmarkets (MEA, LATAM). China recorded thestrongest increase among marketsEurope and North America registered the lowestgrowth rates, although March already showed animportant improvement vs. February for bothregions Weak industry growth of 0.3% in Q1 2013(adjusted for working days), mostly affected by thenegative current macro environment:• Negative growth in Western Europe and US• Continued underperformance in APAC, wherelarge markets such as India are still decreasingand where the impact of LCCs is driving higherlevels of disintermediation, and• Weakness in corporate travel, the bulk of whichis managed by travel agencies1. Measured in RPKs (Revenue-Passenger Kilometer)27


Key Performance IndicatorsQ1 2013Q1 2012 (1)Volumes% ChangeGDS Industry Growth (%)(1.3%)4.6%Amadeus Air Bookings (m)119.3115.92.9%Passengers Boarded (PB) (m)131.7115.913.6%Financial Results (€mm)RevenueEBITDAAdjusted profit (2) 795.0323.4176.3764.1307.2167.94.0%5.3%5.0%Investment (€mm)R&D 118.193.426.5%Capex101.9 73.039.5%1. Figures exclude extraordinary costs related to the IPO2. Excluding after-tax impact of: (i) amortisation of PPA and impairment losses, (ii) changes in fair value from financial instruments and nonoperatingexchange gains / (losses) and (iii) extraordinary items related to the sale of assets and equity investments28


Key Performance Indicators by regionQ1 2013 Amadeus Air bookings by region Q1 2013 Altéa PB by region (1)LatAm, 6.7%APAC,13.7%NA, 12.4%MEA, 12.1%CESE, 9.8%WE, 45.4%% Volume GrowthWE (3.7%)APAC 1.4%NA 37.0%MEA 2.0%CESE 5.4%LatAm 4.3%APAC,15.7%MEA, 18.2%LatAm,12.4%WE, 49.2%% Volume GrowthWE 8.6%MEA 6.0%APAC 80.9%LatAm 1.6%CESE (3.6%)Total 2.9% Total 13.6%CESE, 4.5%Amadeus air travel agency bookings grew 2.9% in the quarter, or 4.6% adjusted for working days, 4p.p. higher than the GDSindustry driven by market share gainsNegatively affected by our exposure to EuropeVery positive contribution from North America, driven by recent contract wins13.6% growth in PB during the quarter based on:Full-year impact of 2012 migrations (SAS, Cathay Pacific and Singapore Airlines)Like-for-like organic growth of 4.6%, higher than overall traffic growth in the period, positively affected by client mixVolume growth and split by geography very much affected by pace of migrations by year end. Significant growth inthe period from the Asia & Pacific region, driven by recent migrationsWE = Western Europe; CESE = Central, Eastern and Southern Europe; MEA = Middle East and Africa; LatAm = Latin America;NA = North America (including Mexico)1. Adjusted for airlines which discontinued operations since January 2012 (Spanair, Malev, Finncomm, Cimber Air, Air Ivoire, City Airlines, among others)29


Group revenue growth supported by both Distributionand IT SolutionsGroup Revenue (€ mm)Distribution / IT Solutions Revenue (€ mm)4.0%Distribution2.4%597.6 612.2764.1795.0Q1 2012 Q1 2013IT Solutions166.69.8%182.9Q1 2012 Q1 2013Q1 2012 Q1 2013Group revenue growth of 4.0%, based on 2.4% and 9.8% growth in Distribution and IT Solutions revenue, respectivelyDistribution growth driven by (i) market share gains and (ii) improvement on the average pricing in the period, linked tobooking mixGrowth achieved despite strong base of comparison and lower number of working days (1.8 days) in the periodIT Solutions continued its growth trend both on transactional and non-transactional revenueIT Transactional growth primarily driven by the increase in PB volumes in relation to recent migrations, and nontransactionaldriven by accrual of deferred revenue and other one-off payments from clients in relation to services orother ad-hoc projects.30


Strong growth at EBITDA and Profit levelEBITDA (1) (€ mm)Adjusted Profit (2) (€ mm) and Adjusted EPS (€)307.25.3%323.4Adjusted EPS (3)€0.38+5.4%€0.4040.2% 40.7%167.9+5.0%176.3Q1 2012 Q1 2013EBITDA EBITDA margin (%)Q1 2012 Q1 2013Significant EBITDA growth based on thepositive performance of our business lines On a constant currency basis, EBITDAgrowth would have been 6.3%Significant Adjusted profit and EPS growth inQ1 2013, mainly driven by EBITDA growth andlower interest expense, partially offset by: Increased D&A in the period, as capitalisedinvestment enters into production Increased tax rate as a result of recentchanges in corporate tax regulations311. 2012 figures exclude extraordinary items related to the IPO2. Defined as Profit excluding the after-tax impact of: (i) amortisation of PPA and impairment losses, (ii) changes in fair value of financial instruments and nonoperatingexchange gains / (losses) and (iii) extraordinary items related to the sale of assets and equity investments and the IPO3. Based on Adjusted profit attributable to the parent company31


With strong cash flow generation and deleveragingCash flow (1) (€ mm)Net Debt to LTM EBITDA (2)+7.8%179.21.34x166.21,4951.28x1,441Q1 2012 Q1 2013FY 2012 Q1 2013 Cash flow generation of €179.2 million in Q1 2013, up 7.8% vs. Q1 2012, mainly due to: Increased EBITDA and lower interest payments and cash tax Partially offset by the increased Capex levels Steady deleveraging, to 1.28x net debt / EBITDA Even after the payment of an interim dividend in a total amount of €111.1 million© 2011 Amadeus IT Group SA1. Defined as: EBITDA (-) capex (+/-) change in net working capital (-) cash tax (-) interest and financial fees. Calculation excludes non-operating cashflows,cashflows from extraordinary items and equity investments. EBITDA excludes IPO costs and, in 2011, the Opodo contribution and the United Airlines ITcontract resolution2. Covenant debt and LTM EBITDA as defined in the Senior Credit Agreement32


Summary Group Income StatementSummary group income statement(Figures in milion euros) 2010 2011 2012Revenue 2,594 2,707 2,910% Change 10.5% 4.4% 7.5%Cost of revenue (653) (678) (747)Personnel an related expenses (640) (681) (764)Depreciation and amortization (342) (242) (273)Other operating expenses (321) (306) (287)Operating Income 637 800 839% Change 22.8% 25.6% 4.8%Operating Income excl. PPA amortisation 799 871 910% Change 17.2% 9.1% 4.4%Margin (%) 30.8% 32.2% 31.3%Net financial expense (219) (169) (93)Other income / (expense) 2 55 (17)Profit before income taxes 421 686 729% Change 23.1% 63.1% 6.2%Income taxes (122) (219) (231)Profit after taxes 299 468 497Share in profit / (losses) from associates and JVs 6 (2) 4Profit for the year 305 466 502% Change 21.2% 52.9% 7.7%Other financial information 2010 2011 2012EBITDA 976 1,039 1,108EBITDA margin (%) 37.6% 38.4% 38.1%Adjusted profit for the year 403 487 575% Change 17.4% 20.7% 18.0%Adjusted EPS 0.90 1.09 1.30% Change 17.0% 20.8% 18.7%© 2011 Amadeus IT Group SANote: Figures shown in this table exclude Opodo.33


Shareholder StructureBoard of Directors,0.09%Treasury shares (2),0.80%Iberia Líneas AéreasAir France Finance ,5.04%de España, S.A. (1),0.84%Malta PensionInvestments (3),4.00%Free Float, 89.23%(1) Iberia has carried out a financial derivative transaction ("collar") over its total participation in Amadeus IT Holding, S.A. (33,562,331 shares, representing 7.50% of the sharecapital). As a guarantee of its obligations under the financial derivative, Iberia has granted a financial security over the total number of shares providing a disposal right over theshares in the benefit of the chargee (acreedor pignoraticio) which has been exercised over 29,820,131 shares of Amadeus IT Holding, S.A., representing 6.66% of the sharecapital, although Iberia is entitled to exercise or direct the exercise of the voting rights attached to such shares by way of a right of recall that can be exercised at any time .(2) Political and economic rights of these shares are suspended to the extent they form part of the treasury stock.(3) Malta Pension Investments is an independent and unrelated company to Deutsche Lufthansa AG and its group of companies. It forms part of a group of companies owned by"Lufthansa Pension Trust e.V." and it is the entity to which Deutsche Lufthansa AG makes contributions to finance future retirement benefits of its employees in Germany andabroad. Deutsche Lufthansa AG and Malta Pension Investments entered into an Agreement of 7 December 2012 (registration number with the CNMV 178604) by whichDeutsche Lufthansa AG reserves the faculty to exercise the contractual rights of the signatory shareholders of the Relationship Agreement of Amadeus IT Holding, S.A. of 29April 2010 (registration number with the CNMV 124400), mainly, the appointment of a Director at the Board of Amadeus IT Holding, S.A., within the terms and conditions of theRelationship Agreement.© 2011 Amadeus IT Group SA34


© 2012 Amadeus IT Group SA35Brighter, Bolder, Better

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