Amadeus It Group Sa Ord

This call is being recorded on Friday, February 28, 2025. I would like to turn the conference over to Mr. Luis Moroto, President and CEO of Amadeus. Thank you. Please go ahead.

Good afternoon. Welcome to our 24 full-year results presentation, and thank you for joining us today. Our business heads, Desius and Paco, are also participating today, and they will cover our business overviews. I will first recap on 24 and later I will review our financial performance on expectations for 25. Before we get started, as you may know, we recently announced that Carol Borch has been appointed CFO at Amadeus. Carol will start on May 5th and she brings over 30 years experience in finance and has held executive roles in various industries. I'm confident Carol will have a good fit with the team and that she will bring great value to our evolution in the coming years. Please turn to slide four to recap on 24. We continued evolving strongly through the fourth quarter, closing the year with solid results, delivering double-digit growth and expanding profitability. 24 was a highly productive year for Amadeus in which we successfully delivered on our outlook and commitments. On full year, revenues grew by 13%, EBITDA increased by 13%, operating income expanded 18%, adjusted profit grew by 20%, free cash flow generation expanded to 1.3 billion, growing 16% versus prior year. And we finished the year with leverage of 0.9 times EBITDA. We saw a strong performance across our reported segments. Air distribution grew by 11% in the year. In the fourth quarter, air distribution revenue growth accelerated, expanding a remarkable 14% year-on-year. Bookings processed through the Amadeus Travel Platform in the fourth quarter experienced year-on-year growth of 9%, and revenue per booking also advanced in the quarter to close to 5%. Airlines continued to sign NDC distribution agreements with Amadeus to distribute their NDC content through the Amadeus Travel Platform. We aim to become the undisputed aggregator of NDC content. We believe Amadeus has the most advanced and comprehensive NDC technology in the industry. Our RIT solution revenue grew by 16% in 24, supported by air traffic growth and the positive impact from new customer implementations over 23 and 24. We're pleased to announce that Air France KLM has contracted for Amadeus Navio. With Amadeus, Nevio Amadeus is leading the way for the retailing transformation of the airline industry. Air France KLM follows British Airways Saudi and Finnair, who have already contracted for Nevio. Amadeus also aims to become the IT provider of reference for the hospitality industry. We are uniquely placed to address industry needs and expand in a large and growing market. In 2024, our hospitality and other solutions revenue increased by 12%. MGM Resorts International has now completed the deployment of ACRS, our next-generation central reservation system, for the industry. We are also advancing well on the implementation of Marriott International and Accor to our platform. Marriott is creating a global community of world-leading hotels on a mission to transform relationships with guests. We remain highly focused on investing for the future. We are undertaking one of the largest and most complex cloud transformations to further unlock flexibility, scalability, speed, and innovation. 60% of our applications are now activated in the public cloud, and we aim to complete this transformation by early 26. We are harnessing the power of AI, data, and modern technologies with best-in-class partners. At Amadeus, we have a long history with AI. Our journey began with operations research, machine learning, and deep learning, revolutionizing essential functions like flight scheduling and search, airport resource management, passenger disruption handling, and revenue management systems. Today, AI and machine learning are key to improving user experience, predicting travel trends, personalizing customer journeys, and optimizing operations. Amadeus leverages these technologies And generative AI brings even greater potential, especially with the rise of agentic AI. We have integrated GenAI in our platform, offering our customers a solid path to deploy agentic AI solutions. And we aim to power the largest, most vibrant ecosystem of open, connected, and flexible travel solutions in travel. Finally, we are pleased to announce that the Board of Amadeus has agreed to launch a shared repurchase program in due course for a maximum investment amount of $1.3 billion to be executed over the next 12 months. This program follows our previous shared repurchase programs over 2023 and 2024 aimed at addressing the conversion of our convertible bond commit to term in April 2025. Amadeus also raised capital through the issue of new shares in 2020 20, we now aim to report chase and redeem alerts part of the sales then issued. Let me pass now on to Desius and Paco who will run us through the key developments at each of our reported segments.

Thanks, Luis. Hello, everyone. This is Desius. Let me start by saying that 2024 has been a highly successful year for air distribution. We grew 11% in revenue and 13% in contribution. We have delivered on our goals and expectations, and we are very optimistic about 2025 and beyond. Our aim is to continue to strengthen our position as the leading enabler of airline distribution, and this includes on NDC. On NDC, as Luis was saying, we are advancing steadily. We are aggregating more and more NDC content from full-service carriers and low-cost carriers onto the Amadeus travel platform. This quarter, last quarter, I'm sorry, Q4, we have signed LATAM Airlines and Sodia, and we have now over 70 NDC agreements with all types of airlines. We have implemented 31, and we are working hard to grow this number during 2025. As Amadeus expands its NDC content offering, we'll be capturing more and more NDC bookings in the future. Also, the vast majority of our travel agencies have now access and can service NDC content available through our platform. The overall adoption pace of NDC on our platform will progress gradually. Adoption is growing in all regions and across all types of travel sellers, including the corporate world. We also believe that as we see Navio grow and expand, bringing its advanced dynamic pricing capabilities, it will further promote the adoption and the value of NDC distribution. Now let's review our volume performance. Amadeus bookings grew 4.7% in 2024, supported by air traffic growth and Amadeus commercial gains in many parts of the world. Although our bookings growth in Noram was impacted in the first nine months of the year, if we exclude this effect, And also, if we exclude the positive effect from the booking cancellation spike caused by geopolitics in the Middle East in Q4 2023, we estimate our booking growth in 2024 at 7.9% versus prior year. In Q4, the bookings process through the Amadeus Travel Platform increased by 9% over prior year. We saw an acceleration in many regions, in particular in the Americas and Asia-Pacific. supported by air traffic growth and Amadeus commercial gains. Excluding, again, the cancellation spike last year in Q4 2023, which enhanced our performance versus Q4 2024, Amadeus booking growth is estimated at 7% in Q4 versus prior year. So with that, let's please turn to slide six, and now we're going to review airline IT solutions. Air IT solutions also had a strong 2024, with revenue growing by 16% in the year. Our positive performance was the result of the growth in our passengers boarded, coupled with an expanding revenue per passenger boarded, as well as our growth in airport IT. Our passengers boarded increased by 11% in 2024, driven by global air traffic growth and the positive impact from new customers' implementations we performed in 23 and 24. Through the year, we continue upselling airline IT solutions to customers, such as Cathay, Agen, Icelandair, as well as increasing our airport IT customer base through the year, including Kansai Airports, Navi Mumbai, Huntsville, and Montgomery Regional Airport in Q4. Navi, as you know, it is our new modular airline IT portfolio built on cloud technology and AI, meant to unlock the benefits of modern airline retailing. We are pleased that Air France-KLM has signed for Navio, making it our fourth customer and advancing the pace of the industry evolution to a customer-centric retailing. Navio will support Air France-KLM in its ambition to modernize its systems and to move to a modern offer-order native system. It will elevate the customer experience by allowing customers to track all travel details in one accessible order to receive more personalized offers and to do more self-service. We're working hard and we're looking forward to further expanding our Navio customer base. I'll now pass on to Paco.