Amadeus IT Holding, S.A. and Subsidiaries - Investor relations at ...

AMADEUS IT HOLDING, S.A. AND SUBSIDIARIES
DIRECTORS’ REPORT FOR THE YEAR ENDED DECEMBER 31, 2011
1.2.3 Reorganisation of commercial business units
� Reflecting the evolution and growth of both Amadeus and the industry, in the third quarter
the commercial businesses were reorganised into three customer-facing units reporting
directly to the President & CEO, Luis Maroto: Distribution, led by Holger Taubmann; Airline
IT, led by Julia Sattel; and New Businesses, led by Francisco Perez-Lozao. All three
appointments were made from within the company, and represent a total of 48 years of
experience in Amadeus. The establishment of a dedicated unit for new business reporting
directly to the President & CEO reflects Amadeus’ focus on building new lines of business.
1.2.4 Sale of Opodo
� In February 2011, Amadeus announced that it had reached an agreement with AXA
Private Equity and Permira Funds for the sale of a 100% stake in Opodo – subject to the
approval of regulatory authorities. This development followed previous communications
that Amadeus was exploring and evaluating alternative options for Opodo. The agreed
enterprise value was approximately €450 million which represented a multiple of 11.7x the
'EBITDA’ of Opodo in the 2010 period.
� The sale was approved by the European Commission under the EU Merger Regulation in
May. Amadeus received the cash proceeds on June 30, which were subsequently used to
pay down, on July 6, a bridge loan of €400 million.
1.2.5 Debt refinancing
� In May 2011, Amadeus announced an agreement to refinance its debt through a new
senior unsecured credit facility. This was structured via a “club deal” for a total of €2.7
billion and was part of the Amadeus long-term strategy to strengthen its financial structure,
bringing more flexibility through extended maturity periods and improved terms and
conditions, as well as significantly decreasing the cost of servicing debt.
� This new financing package included a €400 million bridge loan (tranche C), which was
fully amortised in July 2011 with the cash proceeds from the sale of Opodo, and a further
€1.2 billion brodge loan (tranche B), which was partially amortised also in July 2011 with
the proceeds from a €750 million fixed rate bond issue.
� Indeed, as part of its long-term strategy to strengthen its financial structure, in July 2011
Amadeus successfully issued a €750 million 5-year Euro Bond. The maturity date for this
bond issue is July 15, 2016 and it has an annual coupon of 4.875%. After this partial
amortisation, the current amount of this bridge loan is €456.4 million. The Euro Bond issue
brings more flexibility through extended maturity periods and improved terms and
conditions, whilst diversifying Amadeus’ funding sources.
1.2.6 Additional news from the year
� In May 2011 it was announced that Amadeus had agreed to dissolve a contract under
which United Airlines would migrate onto the Amadeus Altéa Suite in 2013. Following
United Airlines’ decision to merge with Continental Airlines, and as part of its overall
integration efforts, the airline decided to migrate to Continental Airlines’ existing IT system
and will review its alternatives for a long-term IT solution in due course. United Airlines
made a one-time payment to Amadeus of $75 million in consideration of the change in
plans.
14