Sabre Holdings. Sam Gilliland Chairman and CEO. Bear Stearns Technology Conference June 8 th, 2005

Transcription

1 Sabre Holdings Sam Gilliland Chairman and CEO Bear Stearns Technology Conference June 8 th, 2005

2 Sabre Holdings A world leader in travel commerce, retailing travel products and providing distribution and technology solutions for the travel industry 2

3 Sabre at a Glance S&P 500 Company 6,800 employees in 45 countries Revenues of $2.13 billion in earnings per share growth > 75% Three distinct businesses serving travelers, corporations, travel agents and travel suppliers 3

4 Key Trends and Current Industry Assessment Industry Consolidation Intermediaries vertically integrating Channel Shift Supplier-direct movement New entrants Online Growth Robust in North America Accelerating globally Low-Cost Carriers Rapid growth, worldwide Focus on direct distribution Deregulation CRS deregulation in US Now under review in Europe Emerging Trends Travel Search Engines 4

5 Industry Growth global opportunity $Billion $ 1,000 $ 900 $ 800 $ 700 $ 600 $ 500 $ 400 $ 300 $ 200 $ 100 $ 0 $ 870 B $ 257 $ 51 $ 280 $ 282 APAC LA EMEA US and Canada 2007 Global Gross Travel Spend $ 80 $ 11 $ 419 $ 40 Car $ 320 Rail Cruise Hotel Air $ % 63.7% $ % Corporate Leisure $ 492 $ 378 Indirect Direct $ 695 $ 175 REGION SUPPLIER SEGMENT CHANNEL CHANNEL Offline Online 5 Data Source: PhoCusWright, Jupiter, EuroMonitor, Sabre Holdings Analysis

6 2005 Strategic Priorities Grow Retail Revenue Across the Global Network Direct and indirect Hotel and packages Expansion in Asia and Europe Large and growing segments Increase our presence Leverage the Scale and Efficiency of the Distribution Business Grow scale, reduce cost Deliver Leading Scaled Technology Innovate and differentiate Shopping and pricing, corporate, leisure 6

7 Making Retail Real Supplier DIRECT RETAIL * PRIVATE LABEL MERCHANDISING DISTRIBUTION *Proposed 7 Traveler

8 Economic Opportunity increasing revenue per trip Degree of influence over travel product sold Revenue Per Trip Retailing HEAVY Retailing LITE Booking Fee TODAY HIGH LOW ~ 7X ~ 4X ~ 2X $ X 8 Data Source: Internal

9 9 Travelocity

10 Revenue Robust revenue growth, five quarters in a row Led by growth in non-air transaction revenue $160 35% $140 30% Revenue ($ - million) $120 $100 $80 $60 $40 $20 25% 20% 15% 10% 5% YOY Growth $0 1Q 04 2Q 04 3Q 04 4Q 04 1Q 05 Transaction Rev Non Transaction Rev YOY Total Rev Growth 0% 10

11 Comparison with IAC Travel & Orbitz Gained share versus competitors Q1 05 YOY growth rates for IAC Travel, Orbitz, and Travelocity 100% 80% 60% 92% 40% 20% 0% 27% Mid- 20% Teens 32% 14% 13% Gross Sales Revenues Package Revenues 32% * 4% ** Room Nights Travelocity IAC Orbitz * Travelocity Room Night growth is reported as Total Room Nights ** IAC Travel Room Night growth is reported as Merchant Room Nights 11

12 Europe a Very Large Opportunity, Growing Faster The Worldwide Travel and Tourism Spend European Online Leisure Travel Channel ($B) $100,000 $262B Other $350B Europe $238B US $80,000 $60,000 $40,000 $20,000 Europe US $ World s largest leisure travel marketplace 450MM people in 25 countries Average of 25 vacation days plus 10 public holidays annually Europe forecast to grow faster than US 54% CAGR vs. 32% CAGR 12 Source World Travel and Tourism Council/ Jupiter Source PhocusWright

13 lastminute.com May 12, 2005, Sabre Holdings announced agreement to acquire leading European online travel provider lastminute.com for 165 pence per lastminute.com share expected to close by the end of July lastminute.com s diverse mix of flights, holidays, hotels, car hire, and nontravel, ties closely with Travelocity s strategy of continuing to expand our range of offerings to consumers, beyond basic air travel We expect the acquisition of this leading pan-europe online travel brand, combined with Travelocity Europe s fast growing business, would create the leading position in European online travel 13

14 2005 Growth Projections Revenue (in millions) 2005 Growth Projections Sabre Travel Network $1,553 Low-single digits Travelocity $503 25% - 30% Sabre Airline Solutions $243 Mid-single digits Eliminations ($168) Total Revenue (net elims) $2,131 Approach 10% Earnings Per Share, Adjusted $1.47 $ $1.60 Earnings Per Share, GAAP $1.38 $ $1.60 ** Guidance provided on 1Q05 Earnings call, 5 May At this time, TSG is not updating or reaffirming.

15 Other Financial Projections and Capital Structure Full year Adjusted EBITDA expected to be ~ $400 million GAAP Net income of ~ $200 million Free cash flow expected to be ~ $200 million Cash flow from operations ~ $300 million Enhance shareholder return Increased quarterly dividend 20 percent, to $0.09 per share 15 ** Guidance provided on 1Q05 Earnings call, 5 May At this time, TSG is not updating or reaffirming.

16 Cautionary Statement Statements in this presentation which are not purely historical facts or which necessarily depend upon future events, including statements about forecasted financial performance or other statements about anticipations, beliefs, expectations, hopes, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements are based upon information available to Sabre Holdings Corporation on the date of this presentation. Sabre Holdings Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including risks or uncertainties related to the Company's revenues being highly dependent on the travel and transportation industries. Sabre Holdings Corporation may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Sabre Holdings Corporation's most recent filing on Form 10-Q with the Securities and Exchange Commission. References to non-gaap financial statements and the reconciliation to GAAP can be found on the Sabre Holdings' website in the investor relations section. 16