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Transcript of Gordon Wilson - s3.amazonaws.comWilson+-+Overview+FINAL.pdf · System integration Workflow...
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
>20,000 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
>50,000 daily long-haul passengers
>20,000 daily long-haul passengers
>10,000 daily long-haul passengers
...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
Online travel agencies
Offline travel agencies
Travel management companies
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
13 major rail networks
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
Online travel agencies
Offline travel agencies
Travel management companies
Corporations
Tour operators
Meta-search
Travel buyers
Online travel agencies
Offline travel agencies
Travel management companies
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
13 major rail networks
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
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
Focused on markets where choice and flexibility are key
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
Focused on markets where choice and flexibility are key
20+ Changes
made in the background
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
Focused on markets where choice and flexibility are key
20+ Changes
made in the background
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
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
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
Focused on markets where choice and flexibility are key
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
13 major rail networks
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
Differentiated platform with compelling financial drivers
Airline distribution and merchandising
$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
Airline distribution and merchandising
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
$2m
$19m
$45m
$67m
FY 11
FY 12
FY 13
FY 14
YTD 15$66m (for the 9 months ended Sep 30, 2015)
Differentiated platform with compelling financial drivers
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%
Differentiated platform with compelling financial drivers
$2m
$19m
$45m
$67m
FY 11
FY 12
FY 13
FY 14
YTD 15$66m (for the 9 months ended Sep 30, 2015)
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
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