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
2.3 Group cash flow – including Opodo
Figures in million euros
Q4 Q4 % Full Year Full Year %
2011 (1)
31
2010 (1)
Change
2011 (1)
2010 (1)
Change
EBITDA (excluding Opodo) 203.4 188.3 8.0% 1,039.0 976.4 6.4%
EBITDA Opodo and collection from United Airlines (2)
0.0 9.9 n.m. 64.1 38.5 66.5%
Change in working capital 6.8 31.7 (78.6%) 20.0 66.9 (70.0%)
Capital expenditure (81.3) (61.0) 33.4% (312.7) (252.3) 23.9%
Pre-tax operating cash flow 128.8 169.0 (23.7%) 810.5 829.4 (2.3%)
Taxes (81.3) (4.3) n.m. (123.3) (71.5) 72.5%
Equity investments (7.1) 12.4 n.m. 399.2 24.9 n.m.
Non operating cash flows 1.1 1.7 (35.0%) (4.3) 8.2 n.m.
Cash flow from extraordinary items (0.4) (6.0) (94.0%) (19.5) (377.0) (94.8%)
Cash flow 41.2 172.8 (76.2%) 1,062.6 414.1 156.6%
Interest and financial fees received / (paid) (9.0) (27.0) (66.6%) (199.7) (250.5) (20.3%)
Debt drawdown / (payment) (6.7) (4.3) 56.2% (886.2) (1,045.9) (15.3%)
Cash to/from shareholders (0.0) 0.0 n.m. (134.3) 652.8 n.m.
Other financial flows 0.0 0.0 n.m. 0.0 (30.5) n.m.
Change in cash 25.5 141.6 (82.0%) (157.7) (260.0) (39.3%)
Cash and cash equivalents, net (3)
Opening balance 367.5 409.1 (10.2%) 550.7 810.7 (32.1%)
Closing balance 393.0 550.7 (28.6%) 393.0 550.7 (28.6%)
(1) Figures adjusted to exclude extraordinary costs related to the IPO
(2) Includes the payment from the United Airlines IT contract resolution
(3) Cash and cash equivalents are presented net of overdraft bank accounts
2.3.1 Change in working capital
Amadeus typically works on negative working capital (i.e. cash inflows), driven by the fact
that Amadeus collects payments from most airlines (more than 80% of our group collections)
through IATA, ICH and ACH, with an average collection period of just over one month, whilst
payments to providers and suppliers are made on average over a significantly longer period.
The cash inflow in 2011 was lower than in 2010, mainly driven by the fact that there was no
factoring as of December 2011, different timing of payments (certain payments were delayed
in Q4 2010), and higher amount of receivables as a result of the increase in activity in the
period.
2.3.2 Capital expenditure
Capital expenditure increased by €60.3 million in 2011, driven by higher investment in
tangible and intangible assets during the year. This increase was mainly related to (i) the
payment of a signing bonus in relation to the 10 year distribution agreement with the entity
resulting from the merger of GoVoyages, eDreams and Opodo, and (ii) the increase in
software capitalisations as a result of higher R&D during the year.