Amadeus Announces 2013 Full Year Results

  Amadeus Announces 2013 Full Year Results

Strong performance and growth of Distribution and IT Solutions businesses

Full year highlights (twelve months ended December 31, 2013)

  *Revenue increased by 6.6%, to €3,103.7 million; EBITDA^1 grew by 7.2%, to
    €1,188.7 million; and adjusted profit^2 for the year rose to €619.5
    million, up 7.8%.
  *In the Distribution business, total air travel agency bookings increased
    by 6.5%, to 443.4 million, on the back of strong growth in North America
    (+38.1%) and Latin America (+12.5%).
  *In the IT Solutions business, Passengers Boarded increased by 9.2%, to
    615.7 million, with a 57.6% rise in Asia Pacific.
  *Amadeus accelerated its move into new business areas with the acquisition
    of Newmarket International, a leading US-based Hotel IT provider, for USD
    500 million.

Business Wire

MADRID -- February 28, 2014

Amadeus IT Holding, S.A., parent company of the Amadeus Group, a leading
technology partner for the global travel industry, reports year-on-year
financial and operating results for the full year of 2013 (twelve months ended
December 31, 2013). Adjusted profit for the year grew 7.8% to €619.5 million.
This was supported by an increase in revenue of 6.6%, to €3,103.7 million, and
7.2% growth in EBITDA, to €1,188.7 million.

Luis Maroto, President & CEO of Amadeus, commented:

“Amadeus has maintained its record of delivering success both in revenues and
profitability. Our transaction-based business model has continued to be
resilient in the face of industry challenges, while our investment in R&D,
which drives product evolution and portfolio expansion, has contributed to our
continued growth.

“Even in the context of slow growth in the wider market, Amadeus continued to
outperform the travel distribution industry and reinforce its leading position
in the air distribution segment, with a market share increase to 40.1% in
total air travel agency bookings. This was most apparent in North America, one
of our strategic targets for expansion, where despite contraction in the
region we achieved a 38.1% increase.

“Our commitment to growth in new regions was also evident in the IT Solutions
business, where the number of Passengers Boarded in the Asia Pacific markets
increased by 57.6%. The region became the second biggest market for the IT
Solutions business, and this shift will continue as migrations of Asian
carriers take place during 2014 and 2015.

“We continued to execute on our strategy of developing new business areas, and
made particular progress in the airport and hotel segments. With the
acquisition of Newmarket International, a leader in the Hotel IT industry, we
have enhanced our presence in a key growth area for Amadeus. Meanwhile our
airports unit made progress in the ground-handling area as well as signing key
agreements with Copenhagen and Munich airports.

“Overall I am confident that Amadeus has the financial strength, the portfolio
and the right strategy for continued success in the travel technology
industry.”

Financial highlights

Consolidated net financial debt was reduced to €1,210.7 million, as of
December 31, 2013 (based on covenants’ definition in senior credit agreement).
This was a decrease of €284.5 million vs. December 31, 2012, reaching 1.01x
the ratio of covenant net debt to the last twelve months’ covenant EBITDA^3.

In December 2013, the Board of Directors extended the current dividend policy,
consisting of a pay-out ratio of 40% to 50% of the consolidated profit
(excluding extraordinary items). In particular, the Board of Directors
proposed to increase the pay-out ratio to 50% for the year 2013, versus the
44.6% paid in 2012.

The full year results were supported by significant year-on-year performance
during the fourth quarter. Revenue increased 9.5% to €741.7 million, EBITDA
grew 9.9% to €239.7 million and adjusted profit rose 15.6%, to €108.3 million.

Business highlights

Distribution

  *Revenue increased by 5.3%, to €2,317.8 million
  *Air travel agency bookings rose 6.5%, to 443.4 million
  *Market share expanded by 1.5 percentage points, reaching 40.1%

Amadeus continued to outperform the industry in a context of limited growth^4.
During the year, distribution contracts with airlines due for renewal were
successfully extended, most notably with IAG (British Airways, Iberia, Iberia
Express) and Air France-KLM. Content agreements were also signed with American
Airlines, China Airlines, LATAM Airlines Group (including both LAN and TAM)
and Thai Airways.

Content available for travel agency subscribers continued to expand, as 10 new
low cost carriers were added to the platform. EasyJet, the UK’s largest
airline per passengers carried, was the first carrier to become a light
ticketing^5 airline in the Amadeus system, a solution that improves the way in
which travel agents access, book and provide service when selling the flights
of low cost carriers flights. This development is expected to increase
bookings with the new pricing, ticketing and booking functionality offering
the same look and feel as for traditional or flag carriers. Low cost carriers
continued to be an area of growth for Amadeus in 2013, with an increase in
travel agency bookings of 21% during the year.

During the fourth quarter, Amadeus implemented its Amadeus Ancillary Services
solution for Lufthansa and Austrian Airlines. With these additions, a total of
23 airlines distribute their ancillary services through the Amadeus travel
agency channel using the solution across 62 countries.

The increase in market share, of 1.5 percentage points to 40.1%, was fueled by
a rise of 38.1% in air travel agency bookings in North America, despite the
negative growth of the industry in the region. This contributed to offset the
contraction of the air travel agency booking industry in key markets for
Amadeus in Western Europe (Germany, Spain and France).

Amadeus Air TA
Bookings           Full year  % of Total  Full year  % of Total  % Change
Figures in          2013                     2012
million
Western Europe      187.9       42.4%        188.7       45.3%        (0.4%)
Asia & Pacific      62.2        14.0%        58.1        14.0%        7.0%
Middle East and     57.7        13.0%        56.4        13.5%        2.4%
Africa
North America       55.3        12.5%        40.0        9.6%         38.1%
CESE                46.9        10.6%        43.5        10.4%        7.7%
Latin America      33.5       7.6%        29.8       7.1%        12.5%
Total Air TA       443.4      100.0%      416.5      100.0%      6.5%
Bookings


IT Solutions

  *Revenue increased by 10.8%, to €785.9 million
  *Passengers Boarded strengthened 9.2% to total 615.7 million
  *Amadeus continued to make strides in the growth of its new business units
    with the acquisitions of Newmarket International and UFIS

Airline IT: With 50.1% of total Passengers Boarded, Western Europe remained
the biggest market for Amadeus Airline IT services. The biggest region of
growth was Asia Pacific, with an increase of 57.6%, driven by the contribution
of a number of Asian airlines migrated to the Amadeus Altéa Suite, Thai
Airways among them. During 2013, Air France-KLM signed a long term e-Commerce
agreement; Qatar Airways implemented the Amadeus Ticket Changer solutions, and
SAS migrated to the Amadeus Revenue Management Solution.

At the end of the year, a total of 125 airlines were contracted for both Altéa
Reservations and Altéa Inventory, 104 of which were contracted to use the full
Altéa Suite. Based upon these contracts, Amadeus estimates that by 2015 the
number of Passengers Boarded will be around 800 million, which would represent
an increase of almost 30% vs. the 616 million passengers processed on the
Altéa platform during 2013 – or a compound annual growth rate (CAGR) of around
14%.

Amadeus PB          Full year                Full year
Figures in         2013       % of Total  2012       % of Total  % Change
million
Western Europe      308.6       50.1%        295.9       52.5%        4.3%
Asia & Pacific      109.2       17.7%        69.3        12.3%        57.6%
Middle East and     96.3        15.6%        100.8       17.9%        (4.4%)
Africa
Latin America       66.6        10.8%        66.7        11.8%        (0.2%)
CESE               35.1       5.7%        31.2       5.5%        12.4%
Total PB           615.7      100.0%      563.8      100.0%      9.2%


Hotel IT: In December 2013, Amadeus announced the acquisition of US based
Newmarket International for USD 500 million. The addition of Newmarket will
bring a strong management team and talented workforce to Amadeus that will
significantly strengthen the Group’s expertise and experience in the hotel IT
industry, a key target sector for future growth. It also adds established
relationships with key customers in the hotel segment. Newmarket, which serves
22,000 unique properties in 154 countries, operates in the group and event
management segment of the hotel industry, which is estimated to account for
30-40% of a full service hotel’s revenue.

Airport IT: In the first quarter of 2014 Amadeus announced the acquisition of
UFIS, a leading airport information technology player, significantly enhancing
the company’s position in the Airport IT industry. UFIS brings to Amadeus a
complementary suite of airport technology solutions as well as a set of
important customer relationships worldwide with specific emphasis on Asia,
Middle East and Europe.

In June, the launch of a new suite of solutions for airport operations was
announced, leading to the signature of two agreements with Munich Airport and
Copenhagen Airport. Through these agreements, Amadeus will jointly work with
the airports to develop and implement two new IT solutions: Amadeus Airport
Sequence Manager and Amadeus Airport Fixed Resource Optimiser.

Summary financial information              Full year   Full year   % Change
Figures in million euros                    2013         2012¹
KPI                                                               
Air TA Market Share                         40.1%       38.6%       1.5 p.p.
                                                                      
Air TA bookings (m)                         443.4        416.5        6.5%
Non air bookings (m)                        59.2        60.7        (2.5%)
Total bookings (m)                          502.6       477.2       5.3%
                                                                  
Passengers Boarded (m)                      615.7       563.8       9.2%
Airlines migrated (as of December 31)       114         109
                                                                      
Financial results
                                                                      
Distribution Revenue                        2,317.8      2,201.0      5.3%
IT Solutions Revenue                        785.9       709.4       10.8%
Revenue                                     3,103.7     2,910.3     6.6%
                                                                      
Distribution Contribution                   1,035.9      982.3        5.5%
IT Solutions Contribution ^(2)              550.7       497.1       10.8%
Contribution                                1,586.6     1,479.4     7.2%
                                                                  
EBITDA                                      1,188.7     1,109.0     7.2%
EBITDA margin (%)                           38.3%        38.1%        0.2 p.p.
                                                                  
Adjusted profit ^(3)                        619.5       574.8       7.8%
Adjusted EPS (euros) ^(4)                   1.39        1.30        7.6%
                                                                      
Cash flow
                                                                      
Capital expenditure                         411.2        348.9        17.9%
Pre-tax operating cash flow ^(5)            843.1        860.1        (2.0%)
                                                                      
                                            31/12/2013   31/12/2012   % Change
Indebtedness ^(6)                                                 
Covenant Net Financial Debt                 1,210.7     1,495.2     (19.0%)
Covenant Net Financial Debt / LTM           1.01x        1.34x
Covenant EBITDA

1.  Figures adjusted to exclude extraordinary costs related to the IPO, in
     2012.
     For purposes of comparability, the IT Solutions contribution in 2013 has
     been adjusted to exclude extraordinary costs of €4.9 million associated
2.   with the acquisition of Newmarket in Q4 2013. Group EBITDA and EBITDA
     margin in 2013 include such costs, and are therefore not impacted by the
     reclassification of these costs as explained above.
     Excluding after-tax impact of the following items: (i) amortisation of
     PPA and impairment losses, (ii) changes in fair value and cancellation
3.   costs of financial instruments and non-operating exchange gains (losses)
     and (iii) extraordinary items related to the sale of assets and equity
     investments and, in 2012, the IPO.
     EPS corresponding to the Adjusted profit attributable to the parent
4.   company. Calculated based on weighted average outstanding shares of the
     period.
5.   Calculated as EBITDA less capital expenditure plus changes in our
     operating working capital.
6.   Based on the definition included in the senior credit agreement
     covenants.


Notes to the editors:

Amadeus is a leading provider of advanced technology solutions for the global
travel industry. Customer groups include travel providers (e.g. airlines,
hotels, rail and ferry operators, etc.), travel sellers (travel agencies and
websites), and travel buyers (corporations and travel management companies).

The Amadeus group employs around 10,000 people worldwide, across central sites
in Madrid (corporate headquarters), Nice (development) and Erding
(operations), as well as 71 local Amadeus Commercial Organizations globally.

The group operates a transaction-based business model.

Amadeus is listed on the Spanish Stock Exchange under the symbol “AMS.MC” and
is a component of the IBEX 35 index.

To find out more about Amadeus please visit www.amadeus.com.

_____________
^1  EBITDA adjusted to exclude extraordinary items related to the IPO in
     2012.
     Excluding after-tax impact of the following items: (i) amortisation of
     PPA and impairment losses, (ii) changes in the fair value and
^2   cancellation costs of financial instruments and non-operating exchange
     gains (losses) and (iii) extraordinary items related to the sale of
     assets and equity investments and, in 2012, the IPO.
     These figures do not include the USD 500 million of additional debt
     arranged to finance the acquisition of Newmarket International, announced
^3   on December 18, 2013, but finalised during February 2014. Proforma of
     this acquisition, the ratio of debt to the last twelve months’ EBITDA
     would be of 1.3x
^4   The air travel agency booking industry registered a 2% growth in 2013.
     ‘Light ticketing’ is an evolution of the ticketless access level offered
^5   to low-cost & hybrid carriers to help standardize the travel agency work
     flow (availability/pricing/booking/end of transaction/reporting) via the
     introduction of a virtual ticket number.

Contact:

Media inquiries only:
Amadeus North America
Debbie Iannaci, 305-499-6448
Director, Public Relations
diannaci@amadeus.com
or
kwittken + company for Amadeus North America
Jessica Nelson, 646-747-7141
Account Supervisor
amadeusnoram@kwitco.com
 
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