GBT Travel Services UK Limited (GBT UK) and its authorized sublicensees (including Ovation Travel Group and Egencia) use certain trademarks and service marks of American Express Company or its subsidiaries (American Express) in the
“American Express Global Business Travel” and “American Express GBT Meetings & Events” brands and in connection with its business for permitted uses only under a limited license from American Express (Licensed Marks). The Licensed
Marks are trademarks or service marks of, and the property of, American Express. GBT UK is a subsidiary of Global Business Travel Group, Inc. (NYSE: GBTG). American Express holds a minority interest in GBTG, which operates as a
separate company from American Express.
Amex GBT Q4 & FY
2023 Earnings Report
March 5, 2024
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Legal Disclaimer
P.2
Forward-Looking Statements
This communication contains statements that are forward-looking and as such are not historical facts. This includes, without limitation, statements regarding our financial position, business strategy, and the plans and
objectives of management for future operations and fourth quarter and full-year guidance. These statements constitute projections, forecasts and forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar
expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this communication are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that
future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may
cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following risks,
uncertainties and other factors: (1) changes to projected financial information or our ability to achieve our anticipated growth rate and execute on industry opportunities; (2) our ability to maintain our existing relationships
with customers and suppliers and to compete with existing and new competitors; (3) various conflicts of interest that could arise among us, affiliates and investors; (4) our success in retaining or recruiting, or changes
required in, our officers, key employees or directors; (5) factors relating to our business, operations and financial performance, including market conditions and global and economic factors beyond our control; (6) the
impact of geopolitical conflicts, including the war in Ukraine and the conflicts in the Middle East, as well as related changes in base interest rates, inflation and significant market volatility on our business, the travel
industry, travel trends and the global economy generally; (7) the sufficiency of our cash, cash equivalents and investments to meet our liquidity needs; (8) the effect of a prolonged or substantial decrease in global travel
on the global travel industry; (9) political, social and macroeconomic conditions (including the widespread adoption of teleconference and virtual meeting technologies which could reduce the number of in-person
business meetings and demand for travel and our services); (10) the effect of legal, tax and regulatory changes; (11) the decisions of market data providers, indices and individual investors, (12) the impact on any future
acquisitions including the integration of any acquisition and (13) other risks and uncertainties described in the Company’s SEC filings. Should one or more of these risks or uncertainties materialize, or should any of our
assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Use of Projections
This presentation contains projected financial information and forecasts (including guidance and outlook) with respect to Amex GBT. Such projected financial information and forecasts (including guidance and outlook)
constitutes forward-looking information and is presented as goals or an illustration of the results that could be generated given a set of hypothetical assumptions that may prove to be incorrect. Such projected financial
information should not be viewed as guidance and is not based on Amex GBT’s historical operating results and should not be relied upon as necessarily indicative of future results or Amex GBT’s actual economics. The
assumptions and estimates underlying such financial forecast information are inherently uncertain and are subject to a wide variety of significant business, economic, competitive and other risks and uncertainties, a
number of which are beyond the control of Amex GBT and subject to change, that could cause actual results to differ materially from those contained in the prospective financial information. Actual results may differ
materially from the results contemplated by the financial forecast information contained in this presentation, and the inclusion of such information in this presentation should not be regarded as a representation by any
person that the results reflected in such forecasts will be achieved. Amex GBT’s independent auditor has not audited, reviewed, compiled or performed any procedures with respect to the projections for the purpose of
their inclusion in this presentation, and accordingly, has not expressed an opinion or provided any other form of assurance with respect thereto for the purpose of this presentation. Moreover, Amex GBT operates in a
very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible to predict all risks, nor assess the impact of all factors on Amex GBT’s business or the extent to which
any factor, or combination of factors, may cause Amex GBT’s actual results, performance or financial condition to be materially different from the expectations of future results, performance of financial condition. In
addition, the analyses of Amex GBT contained herein are not, and do not purport to be, appraisals of the securities, assets or business of Amex GBT or any other entity.
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Legal Disclaimer
P.3
Industry and Market Data
This presentation also contains information, estimates and other statistical data derived from third party sources, including research, surveys or studies, some of which are preliminary drafts, conducted by third parties,
information provided by customers and/or industry or general publications. Such information involves a number of assumptions and limitations and due to the nature of the techniques and methodologies used in market
research, none of Amex GBT or the third party can guarantee the accuracy of such information. You are cautioned not to give undue weight on such estimates. Amex GBT has not independently verified any, and makes
no representation as to the accuracy of, such third-party information.
Financial Statements and Certain Financial Measures
Some of the financial information and data contained in this presentation, such as EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating Expenses, Free Cash Flow and Net Debt have not been
prepared in accordance with United States generally accepted accounting principles (“GAAP”). Please refer to the “Supplemental Materials” section of this presentation for additional details. Amex GBT believes these
non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Amex GBT’s financial condition, results of operations and cash
flows. Amex GBT’s management uses these non-GAAP measures for trend analyses, for purposes of determining management incentive compensation and for budgeting and planning purposes. Amex GBT believes
that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends and in comparing Amex GBT’s financial measures with other similar
companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures should not be considered in isolation from, or as an alternative to, financial measures
determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income and cash flows that are required by GAAP to be recorded in
Amex GBT’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income and cash flows are excluded or included
in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results and reconciliations to the most
directly comparable GAAP measure are provided in the Supplemental Materials section of this presentation.
Trademarks, Service Marks and Trade Names
Amex GBT owns or has rights to various trademarks, service marks and trade names that they use in connection with the operation of their respective businesses. This presentation also contains trademarks, service
marks and trade names of third parties, which are the property of their respective owners. The use or display of third parties’ trademarks, service marks, trade names or products in this presentation is not intended to,
and does not imply, a relationship with Amex GBT, or an endorsement or sponsorship by or of Amex GBT. Solely for convenience, the trademarks, service marks and trade names referred to in this presentation may
appear without the ®, TM or SM symbols, but such references are not intended to indicate, in any way, that Amex GBT will not assert, to the fullest extent under applicable law, their rights or the right of the applicable
licensor to these trademarks, service marks and trade names.
Disclaimer
An investment in Global Business Travel Group, Inc. is not an investment in American Express. American Express shall not be responsible in any manner whatsoever for, and in respect of, the statements herein, all of
which are made solely by Global Business Travel Group, Inc.
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Today’s Presenters
P.4
PAUL ABBOTT
Chief Executive Officer
KAREN WILLIAMS
Chief Financial Officer
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Amex GBT Delivered Strong Performance in Q4 & FY 2023
P.5
Q4 & FY 2023 Highlights Proof Points
Outstanding financial performance
✓
$549M revenue and $80M Adj. EBITDA in Q4 2023, up 83% or $37M YOY
✓ FY 2023 results above initial guidance with revenue up 24% and Adj. EBITDA +269% to
$380M
Continued share gains
✓
Record Total New Wins Value of $3.5B, including $2.2B from SME
✓
96% customer retention rate
Operating leverage
✓
24% revenue growth vs. single-digit Adj. Operating Expense growth in FY 2023
✓
Operating leverage drove FY 2023 Adj. EBITDA margin expansion of 11ppts
Positive cash flow and rapid
deleveraging
✓
Positive full-year Free Cash Flow of $49M
✓
Significant deleveraging to 2.3x
1
at year-end 2023 vs. 8.9x at year-end 2022
See Supplemental Materials section for information on our use of certain Non-GAAP Financial Metrics and related reconciliations.
1
Leverage ratio is calculated as Net Debt / LTM Adjusted EBITDA and is different than the leverage ratio defined in our senior secured credit agreement.
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Continued to Execute Strategy and Deliver Outstanding
Financial Results
P.6
FY 2022 FY 2023
Transactions
$23B
$28B
FY 2022 FY 2023
TTV
$1,851M
$2,290M
FY 2022 FY 2023
Revenue
$103M
$380M
FY 2022 FY 2023
Adjusted EBITDA
+269%
+23%
+19%
+24%
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Strong Transaction Growth in FY 2023 (Detailed Trends)
P.7
“SME” represents Small & Medium Enterprises; “GMN” represents Global & Multinational Enterprises
13%
21%
Domestic International
Air Route
16%
20%
29%
Americas EMEA APAC
Region of Sale
17%
20%
GMN SME
Customer Set
16%
20%
Air Hotel
Booking Type
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Strong FY 2023 Revenue Growth Driven by New Wins &
Industry Tailwinds
P.8
24%
18% 18%
15%
14%
8%
Average Average Average Average Average
Amex GBT’s revenue growth compared favorably to major travel and business service peers in 2023
OTA
HOTEL
AIRLINE
BUSINESS SERVICES
FY 2023 Revenue Growth by Subsector
Based on FY 2023 vs. FY 2022 revenue growth disclosed in the respective company public fillings. “OTA” includes Expedia +10% and Booking Holdings +25%; “GDS” includes Sabre +15% and Amadeus +21%; “Hotel” includes Hilton +17% and Marriott
+14%; “Airline” includes United +19%, Delta +15% and American +8%; “Business Services” includes EcoLab +8%, Paychex +7%, ADP +8%, Cintas +10% and Iron Mountain +7%
GDS
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Commercial Success in FY 2023 with Strong New Wins,
Particularly in SME, and Higher Customer Retention Rate
P.9
Commercial Leadership Significant New Wins Technology Leadership
$3.5B
Total New Wins Value
$2.2B
Record SME New Wins Value,
+$100M YOY
~30%
SME New Wins Value From Unmanaged,
+5ppt YOY
96%
Customer Retention Rate,
+1ppt YOY
• 78% of transactions through digital
channels in Q4 2023, +1pt vs. Q3 2023
• >60% of bookings now through our own
platforms, Egencia and Neo
• 40% Neo transaction growth in FY 2023
• 24% Egencia transaction growth in FY 2023
• Implementing AI-powered solutions to
improve automation and productivity
• World’s largest alternative asset
manager
• One of the world’s largest financial
services firms
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Financial Priorities Deliver Outstanding Financial
Performance, Through Revenue and Adj. EBITDA Growth
P.10
1
2
3
Focus on accelerating cash flow generation
Drive operating leverage and continued margin expansion
Invest to drive long-term, sustained growth
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Strong Financial Results in Q4 & FY 2023
P.11
($M)
Q4 2023
Results
YOY %
FY 2023
Results
YOY %
Total Revenue
$549 4% $2,290 24%
Revenue Yield
1
8.7% (0.2ppt) 8.1% 0.0ppt
Adjusted Operating Expenses
$469 (3%) $1,910 9%
Adjusted EBITDA
$80 83% $380 269%
Adjusted EBITDA Margin
15% 6ppt 17% 11ppt
Net cash provided by operating activities
$58 NM $162 NM
Free Cash Flow
$32 NM $49 NM
NM = Not meaningful. See Supplemental Materials section for information on our use of certain Non-GAAP Financial Metrics and related reconciliations.
1. Revenue Yield is defined as Total Revenue divided by Total Transaction Value (TTV).
*Impacted by different phasing of supplier revenue in 2022; H2 2023 revenue growth was 10%
*
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Significant Reduction in Net Debt and Leverage Ratio
P.12
• Reduction in leverage drove 75bps stepdown in term loan rate in Q4’23 and additional 75bps in Q1’24; total reduction of 150bp results in
annual interest expense savings of ~$25M
• 2-notch credit rating upgrade to B+
• Opportunity to refinance debt in H2 2024 (non-call rolls off at end of July)
8.9x
4.5x
3.5x
2.7x
2.3x
Q4'22 Q1'23 Q2'23 Q3'23 Q4'23
Leverage Ratio
(Net Debt/LTM Adjusted EBITDA)
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Industry Growth
Positioned for Industry-Leading Returns in a Stable Growth
Environment in 2024
P.13
2pts TSR
from
capital
deployment
Share Gains
Margin Expansion
Historically at or above
GDP growth
News Wins drive above
industry revenue growth
Strong operating model
with focus on productivity
and leveraging automation
and AI
Accelerating Free
Cash Flow enables
organic and inorganic
investment, driving
further growth
Capital Deployment
18% - 32% Adj. EBITDA Growth + Deployment of Accelerating Free Cash Flow
Incremental M&A Opportunities and Proven Track Record
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Business Travel Tailwinds to Continue in a Stable Growth
Environment in 2024
P.14
GBTA Poll – 87% of buyers expect travel budgets to increase or hold steady
3
67% of our meetings & events survey respondents say meeting & events budgets are increasing
2
1. Per Amex GBT Top 100 customer survey results as of February 2024.
2. Per Amex GBT Meetings & Events Global Forecast as of June 2023.
3. Per Global Business Travel Association (“GBTA”) Business Travel Industry Outlook Poll published on January 31, 2024.
4. Per Morgan Stanley’s Corporate Travel Survey published in November 2023.
5. Per Delta’s 2024 capacity growth expectation included in their Q4 2023 earnings release.
Top 100 customers expect travel spend to be up approximately 4%
1
Morgan Stanley Corporate Travel Survey – 8% expected business travel spend growth
4
3% - 5% capacity growth expectations
5
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Expect Continued Strong Financial Performance in FY 2024
P.15
Full-Year
2024 Guidance
YOY Growth
Revenue
$2.43B – $2.50B + 6% – 9%
Adjusted EBITDA
$450M – $500M + 18% – 32%
Adjusted EBITDA Margin
18% – 20% ~ 150bps – 350bps
Free Cash Flow
> $100M
See Supplemental Materials section for information on our use of certain Non-GAAP Financial Metrics and related reconciliations.
See our Q4 2023 earnings release for a description of certain assumptions and risks associated with this guidance.
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Our Capital Allocation Framework Focuses on Growth, Cash
Generation & Reinvestment to Drive Shareholder Returns
P.16
1
2
3
Accelerating cash generation
Continue to deleverage, lowering target range to 1.5 – 2.5x Net Debt / Adj. EBITDA
Invest in organic growth and strategic M&A
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Why Investors Should be Excited About Amex GBT in 2024+
P.17
Revenue outperformance as business travel stabilizes to at or above GDP growth and Amex
GBT continues to gain share
Operating leverage, focus on productivity and leveraging automation and AI to deliver 18% ‒ 32%
Adj. EBITDA growth in 2024 and consistent Adj. EBITDA margin expansion over medium-to-long-
term
Accelerating Free Cash Flow with Adj. EBITDA growth, reduced below-the-line costs (e.g.
restructuring) and interest rate savings from deleveraging with opportunity to refinance debt
Evolution to positive and accelerating cash flow supports investments in long-term, sustained
growth – organically and through strategic M&A
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Q&A
P.18
PAUL
ABBOTT
Chief Executive
Officer
KAREN
WILLIAMS
Chief Financial
Officer
ERIC
BOCK
Chief Legal Officer,
Corporate Secretary &
Global Head of M&A
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
P.19
Supplemental Materials
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Q4 2023 Amex GBT Business Travel Growth
P.20
Q4'22 Q4'23
Transactions
$5,913M
$6,298M
Q4'22 Q4'23
TTV
1. Total Transaction Value (“TTV”) refers to the sum of the total price paid by travelers for air, hotel, rail, car rental and cruise bookings, including taxes and other charges applied by suppliers at point of sale, less cancellations and refunds.
+6%
+7%
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
FY 2024 Free Cash Flow Guidance Detail
P.21
See Supplemental Materials section for information on our use of certain Non-GAAP Financial Metrics and related reconciliations.
See our Q4 2023 earnings release for a description of certain assumptions and risks associated with this guidance.
1. Based on interest rate of SOFR + 5.25% on $1.1B term loan and synthetic LIBOR + 2.5% on $237M term loan.
~$125M
Guidance
$450-500M
5-6% of revenue
~$25M
~$60-90M
~$65M
1-2% of TTV
growth
> $100M
1
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
TTV, Revenue and Adjusted EBITDA Seasonality by Quarter
P.22
27%
17%
26%
26%
28%
26%
25%
29%
25%
22%
26%
22%
2019 PF 2022A 2023A
TTV By Quarter (% of Full Year)
Q1 Q2 Q3 Q4
25%
19%
25%
26%
26%
26%
24%
26%
25%
25%
28%
24%
2019 PF 2022A 2023A
Revenue By Quarter (% of Full Year)
Q1 Q2 Q3 Q4
22%
-27%
26%
33%
46%
28%
21%
40%
25%
24%
42%
21%
2019 PF 2022A 2023A
Adjusted EBITDA By Quarter (% of Full Year)
Q1 Q2 Q3 Q4
10,107
9,710
9,431
8,436
3,943
6,527
6,585
5,913
7,422
7,349
7,123
6,298
Q1 Q2 Q3 Q4
TTV ($M)
2019 PF 2022A 2023A
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Glossary of Terms
P.23
B2B refers to business-to-business.
Customer retention rate is calculated based on Total Transaction Value (TTV).
GMN represents Global & Multinational Enterprises.
LTM refers to the last twelve months.
Revenue Yield is defined as Total Revenue divided by TTV.
SME refers to clients Amex GBT considers small-to-medium-sized enterprises, which Amex GBT generally defines as having an expected annual TTV of less than $30 million. This criterion
can vary by country and client needs.
SME New Wins Value is calculated using expected annual average TTV from new SME client wins over the last twelve months.
Total New Wins Value is calculated using expected annual average TTV from all new client wins over the last twelve months.
Total Transaction Value or TTV refers to the sum of the total price paid by travelers for air, hotel, rail, car rental and cruise bookings, including taxes and other charges applied by suppliers
at point of sale, less cancellations and refunds.
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Non-GAAP Financial Measures
P.24
We report our financial results in accordance with GAAP. Our non-GAAP financial measures are provided in addition to, and should not be considered as an alternative to, other performance or liquidity measures derived in accordance
with GAAP. Non-GAAP financial measures have limitations as analytical tools, and you should not consider them either in isolation or as a substitute for analyzing our results as reported under GAAP. In addition, because not all
companies use identical calculations, the presentations of our non-GAAP financial measures may not be comparable to similarly titled measures of other companies and can differ significantly from company to company.
Management believes that these non-GAAP financial measures provide users of our financial information with useful supplemental information that enables a better comparison of our performance or liquidity across periods. We use
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses as performance measures as they are important metrics used by management to evaluate and understand the underlying operations and
business trends, forecast future results and determine future capital investment allocations. We use Free Cash Flow and Net Debt as liquidity measures and as indicators of our ability to generate cash to meet our liquidity needs and to
assist our management in evaluating our financial flexibility, capital structure and leverage. These non-GAAP financial measures supplement comparable GAAP measures in the evaluation of the effectiveness of our business strategies,
to make budgeting decisions, and/or to compare our performance and liquidity against that of other peer companies using similar measures.
We define EBITDA as net income (loss) before interest income, interest expense, gain (loss) on early extinguishment of debt, benefit from (provision for) income taxes and depreciation and amortization.
We define Adjusted EBITDA as net income (loss) before interest income, interest expense, gain (loss) on early extinguishment of debt, benefit from (provision for) income taxes and depreciation and amortization and as further adjusted
to exclude costs that management believes are non-core to the underlying business of the Company, consisting of restructuring, exit and related charges, integration costs, costs related to mergers and acquisitions, non-cash equity-
based compensation, fair value movements on earnout and warrant derivative liabilities, long-term incentive plan costs, certain corporate costs, foreign currency gains (losses), non-service components of net periodic pension benefit
(costs) and gains (losses) on disposal of businesses.
We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue.
We define Adjusted Operating Expenses as total operating expenses excluding depreciation and amortization and costs that management believes are non-core to the underlying business of the Company, consisting of restructuring,
exit and related charges, integration costs, costs related to mergers and acquisitions, non-cash equity-based compensation, long-term incentive plan costs and certain corporate costs.
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses are supplemental non-GAAP financial measures of operating performance that do not represent and should not be considered as alternatives to
net income (loss) or total operating expenses, as determined under GAAP. In addition, these measures may not be comparable to similarly titled measures used by other companies. These non-GAAP measures have limitations as
analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of the Company’s results or expenses as reported under GAAP. Some of these limitations are that these measures do not reflect:
• changes in, or cash requirements for, our working capital needs or contractual commitments;
• our interest expense, or the cash requirements to service interest or principal payments on our indebtedness;
• our tax expense, or the cash requirements to pay our taxes;
• recurring, non-cash expenses of depreciation and amortization of property and equipment and definite-lived intangible assets and, although these are non-cash expenses, the assets being depreciated and amortized may have
to be replaced in the future;
• the non-cash expense of stock-based compensation, which has been, and will continue to be for the foreseeable future, an important part of how we attract and retain our employees and a significant recurring expense in our
business;
• restructuring, mergers and acquisition and integration costs, all of which are intrinsic of our acquisitive business model; and
• impact on earnings or changes resulting from matters that are non-core to our underlying business, as we believe they are not indicative of our underlying operations.
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Non-GAAP Financial Measures, Continued
P.25
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses should not be considered as measures of liquidity or as measures determining discretionary cash available to us to reinvest in the growth of our
business or as measures of cash that will be available to us to meet our obligations. We believe that the adjustments applied in presenting EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses are
appropriate to provide additional information to investors about certain material non-cash and other items that management believes are non-core to our underlying business.
We use these measures as performance measures as they are important metrics used by management to evaluate and understand the underlying operations and business trends, forecast future results and determine future capital
investment allocations. These non-GAAP measures supplement comparable GAAP measures in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, and to compare our performance against that
of other peer companies using similar measures. We also believe that EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses are helpful supplemental measures to assist potential investors and
analysts in evaluating our operating results across reporting periods on a consistent basis.
We define Free Cash Flow as net cash from (used in) operating activities, less cash used for additions to property and equipment.
We believe Free Cash Flow is an important measure of our liquidity. This measure is a useful indicator of our ability to generate cash to meet our liquidity demands. We use this measure to conduct and evaluate our operating liquidity.
We believe it typically presents an alternate measure of cash flows since purchases of property and equipment are a necessary component of our ongoing operations and it provides useful information regarding how cash provided by
operating activities compares to the property and equipment investments required to maintain and grow our platform. We believe Free Cash Flow provides investors with an understanding of how assets are performing and measures
management’s effectiveness in managing cash.
Free Cash Flow is a non-GAAP measure and may not be comparable to similarly named measures used by other companies. This measure has limitations in that it does not represent the total increase or decrease in the cash balance
for the period, nor does it represent cash flow for discretionary expenditures. This measure should not be considered as a measure of liquidity or cash flows from operations as determined under GAAP. This measure is not a
measurement of our financial performance under GAAP and should not be considered in isolation or as an alternative to net income (loss) or any other performance measures derived in accordance with GAAP or as an alternative to
cash flows from operating activities as a measure of liquidity.
We define Net Debt as total debt outstanding consisting of current and non-current portion of long-term debt, net of unamortized debt discount and unamortized debt issuance costs, minus cash and cash equivalents.
Net Debt is a non-GAAP measure and may not be comparable to similarly named measures used by other companies. This measure is not a measurement of our indebtedness as determined under GAAP and should not be considered
in isolation or as an alternative to assess our total debt or any other measures derived in accordance with GAAP or as an alternative to total debt. Management uses Net Debt to review our overall liquidity, financial flexibility, capital
structure and leverage. Further, we believe that certain debt rating agencies, creditors and credit analysts monitor our Net Debt as part of their assessment of our business.
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Reconciliation of net loss to EBITDA and Adjusted EBITDA
P.26
Three Months Ended
December 31,
Year Ended
December 31,
(in $ millions)
2023 2022 2023 2022
Net loss
$ (46)
$ (63)
$ (136)
$ (229)
Interest income
(1)
—
(1)
—
Interest expense
36
29
141
98
Benefit from income taxes
3
(22)
(9)
(61)
Depreciation and amortization
49
48
194
182
EBITDA 41
(8)
189
(10)
Restructuring, exit and related charges
(a)
—
2
49
(3)
Integration costs
(b)
7
9
35
34
Mergers and acquisitions
(c)
1
(3)
2
18
Equity
-based compensation
(d)
15
16
75
39
Fair value movement on earnout and warrant derivative liabilities
(e)
10
22 (13)
(8)
Other adjustments, net
(f)
6
5
43
33
Adjusted EBITDA $ 80
$ 43
$ 380
$ 103
Net loss Margin (8)
%
(12)
%
(6)
%
(12)
%
Adjusted EBITDA Margin 15
%
8
%
17
%
6
%
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Reconciliation of total operating expenses to
Adjusted Operating Expenses
P.27
Three Months Ended
December 31,
Year Ended
December 31,
(in $ millions)
2023 2022 2023 2022
Total operating expenses
$
546
$
565
$
2,298
$
2,049
Adjustments:
Depreciation and amortization
(49)
(48)
(194)
(182)
Restructuring, exit and related charges
(a)
—
(2)
(49)
3
Integration costs
(b)
(7)
(9)
(35)
(34)
Mergers and acquisitions
(c)
(1)
3
(2)
(18)
Equity-based compensation
(d)
(15)
(16)
(75)
(39)
Other adjustments, net
(f)
(5)
(9)
(33)
(34)
Adjusted Operating Expenses
$
469
$
484
$
1,910
$
1,745
a) Includes (i) employee severance costs/(reversals) of $(1) million and $2 million for the three months ended December 31, 2023 and 2022, respectively, and $39 million and $(1) million for the years ended December 31, 2023 and 2022,
respectively, (ii) accelerated amortization of operating lease ROU assets of $7 million and $0 for the years ended December 31, 2023 and 2022, respectively, and (iii) contract costs related to leased facilities abandonment of $1 million
and $0 for three months ended December 31, 2023 and 2022, respectively, and $3 million and $(2) million for the years ended December 31, 2023 and 2022, respectively.
b) Represents expenses related to the integration of businesses acquired.
c) Represents expenses related to business acquisitions, including potential business acquisitions, and includes pre-acquisition due diligence and related activities costs. The full year 2022 includes a charge of $19 million for a loss
contingency in relation to a contingent event that existed as of the Egencia acquisition date.
d) Represents non-cash equity-based compensation expense related to equity incentive awards to certain employees.
e) Represents fair value movements on earnout and warrant derivative liabilities during the periods.
f) Adjusted Operating Expenses excludes (i) long-term incentive plan expense of $3 million and $8 million for the three months ended December 31, 2023 and 2022, respectively, and $19 million and $25 million for the years ended
December 31, 2023 and 2022, respectively, and (ii) legal and professional services costs of $2 million and $1 million for the three months ended December 31, 2023 and 2022, respectively, and $14 million and $9 million for the years
ended December 31, 2023 and 2022, respectively. Adjusted EBITDA additionally excludes (i) unrealized foreign exchange (gains) losses of $(1) million for both of the three months ended December 31, 2023 and 2022, and $5 million and
$8 million for the years ended December 31, 2023 and 2022, respectively, and (ii) non-service component of our net periodic pension cost (benefit) related to our defined benefit pension plans of $2 million and $(3) million for the three
months ended December 31, 2023 and 2022, respectively, and $5 million and $(9) million for the years ended December 31, 2023 and 2022, respectively.
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Reconciliation of net cash from (used in) operating activities
to Free Cash Flow and Reconciliation of Net Debt
P.28
Three Months Ended
December 31,
Year Ended
December 31,
(in $ millions) 2023 2022 2023 2022
Net cash from (used in) operating activities
$
58
$
(4)
$
162
$
(394)
Less: Purchase of property and equipment
(26)
(21)
(113)
(94)
Free Cash Flow
$
32
$
(25)
$
49
$
(488)
As of December 31,
(in $ millions)
2023 2022
Current portion of long
-term debt
$
7
$
3
Long
-term debt, net of unamortized debt discount and debt issuance
costs
1,355
1,219
Total debt, net of unamortized debt discount and debt issuance costs
1,362
1,222
Less: Cash and cash equivalents
(476)
(303)
Net Debt
$
886
$
919
LTM Adjusted EBITDA
$
380
$
103
Net Debt / LTM Adjusted EBITDA
2.3x
8.9x
This document contains unpublished, confidential, and proprietary information of American Express Global Business Travel (Amex GBT).
No disclosure or use of any portion of these materials may be made without the express written consent of Amex GBT. © 2024 GBT Travel Services UK Limited.
Reconciliation of FY 2024 Adjusted EBITDA and Free Cash
Flow Guidance
P.29
The Company’s full-year 2024 guidance considers various material assumptions. Because the guidance is forward-looking and reflects numerous estimates and assumptions with respect to
future industry performance under various scenarios as well as assumptions for competition, general business, economic, market and financial conditions and matters specific to the business of
Amex GBT, all of which are difficult to predict and many of which are beyond the control of Amex GBT, actual results may differ materially from the guidance due to a number of factors, including
the ultimate inaccuracy of any of the assumptions described above and the risks and other factors discussed in the section entitled “Forward-Looking Statements” below and the risk factors in the
Company’s SEC filings.
Adjusted EBITDA guidance for the year ending December 31, 2024 consists of expected net loss for the year ending December 31, 2024, adjusted for: (i) interest expense of approximately $120-
125 million; (ii) income taxes of approximately $(5) million - $10 million; (iii) depreciation and amortization of property and equipment of approximately $180-185 million; (iv) restructuring costs and
charges resulting from facilities consolidation of approximately $30-35 million; (v) integration expenses and costs related to mergers and acquisitions of approximately $20-25 million; (vi) non-
cash equity-based compensation of approximately $80-85 million, and; (vii) other adjustments, including long-term incentive plan costs, litigation and professional services costs, non-service
component of our net periodic pension benefit related to our defined benefit pension plans and foreign exchange gains and losses of approximately $20 million. We are unable to reconcile
Adjusted EBITDA to net income (loss) determined under U.S. GAAP due to the unavailability of information required to reasonably predict certain reconciling items such as impairment of long-
lived assets and right-of-use assets, fair value movement on earnout derivative liabilities and/or loss on early extinguishment of debt and the related tax impact of these adjustments. The exact
amount of these adjustments is not currently determinable but may be significant.
Free Cash Flow guidance for the year ending December 31, 2024 consists of expected net cash from operating activities of greater than $230-250 million less capitalized expenditures of
approximately $130-150 million.
