q1 2018 earnings

Q1 2018 Earnings

Related to Forward-Looking StatementsCertain items in this presentation and in today’s discussion, including matters relating to revenue, net income (loss), and percentages or calculations using these measures, capital structure, future business opportunities, plans, prospects or growth rates and other financial measurements and non-financial statements relating to future periods, constitute forward-looking statements. These forward-looking statements are based on management’s current views with respect to future results and are subject to risks and uncertainties. These statements are not guarantees of future performance. Actual results may differ materially from those contemplated by forward-looking statements. Travelport Worldwide Limited (the ‘Company’ or ‘Travelport’) refers you to our periodic reports and filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on February 20, 2018, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, to be filed on May 3, 2018 for additional discussion of these risks and uncertainties, as well as a cautionary statement regarding forward-looking statements. Forward-looking statements made during this presentation speak only as of today’s date. Travelport expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Related to Non-GAAP Financial InformationTravelport analyzes its performance using Adjusted EBITDA, Adjusted Operating Income/(Loss), Adjusted Net Income/(Loss), Adjusted Income/(Loss) per Share –Diluted, Capital Expenditures, Net Debt and Free Cash Flow, which are non-GAAP financial measures. Such measures may not be comparable to similarly named measures used by other companies. We utilize these measures to provide useful supplemental information to assist investors in understanding and assessing our performance and financial results on the same basis that management uses internally. These adjusted financial measures provide investors greater transparency with respect to key metrics used by management to evaluate our core operations, forecast future results, determine future capital investment allocations and understand business trends within the industry. Management believes the adjusted financial measures assist investors in the comparison of financial results between periods as such measures exclude certain items that management believes are not reflective of our core operating performance consistent with how management reviews the business. Adjusted EBITDA is the primary metric used to evaluate and understand our underlying operations and business trends, forecasting and determining future capital investment allocations. Adjusted Operating Income/(Loss) and Adjusted Income/(Loss) per Share – Diluted are also used by the Board of Directors to determine incentive compensation for future periods. Capital Expenditures, which impact depreciation and amortization, interest expense and income tax expense, are reviewed separately by management. These non-GAAP measures are defined in the ‘Definitions’ appendix of this presentation and discussed and reconciled to GAAP measures in our quarterly and annual filings with the SEC.

Disclaimers

2Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the rounded figures.This document supports the Company’s Q1 2018 Results Presentation, a recording of which will be available on Travelport’s investor relations website shortly after the live presentation on May 3, 2018.

Gordon Wilson

President and Chief Executive Officer

Gordon Wilson


Q1 2018 key point summary

4

Q1 results ahead of expectationsNet revenue +4%, Adjusted EBITDA (9)% and Adjusted EPS of $0.44

Growth driven by Beyond Air and InternationalBeyond Air +22%, including eNett +81%; Air revenue growth in Europe & Asia

Technology investments continue to drive OTA share gains & new business winsSignificant long-term renewal of partnership with Priceline.com

Strong underlying progressLoss of Pacific-based travel agency impacted net revenue growth by 5ppts and Adjusted EBITDA growth by 9ppts

Bernard Bot

Chief Financial Officer

Bernard Bot

Chief Financial Officer

Q1 revenue performance by channel & geography

6

$ millions Q1 2018 Q1 2017 Better / (Worse)

Air 473 474 –

Beyond Air 180 148 22%

Travel Commerce Platform Revenue 653 622 5%

Technology Services 25 29 (12)%

Net Revenue 678 651 4%

Key takeaways

• Good performance in Air, after excluding impact of Pacific-based travel agency loss

• Significant air share gains in Europe and strong revenue growth in Asia

• Good growth in hotel room nights (+2%) and car rental days (+11%). Hospitality attachment1 (41) stable

• eNett revenue +81% (included in Beyond Air). Continued share of wallet expansion at key OTA customers in Europe and Asia Pacific

• Technology Services performing well excluding IGTS (divested in Q2 2017)

Travel Commerce Platform Reported Segments (1)%Q1 yoy growth

Reported Segments

Reported growthImpact of travel agency

loss on growth

International (1)% (8) ppts

United States (1)% –

All regions (1)% (5) ppts

Travel Commerce Platform Revenue +5%Q1 yoy growth

Revenue

Reported growthImpact of travel agency

loss on growth

International +6% (7) ppts

United States +1% –

All regions +5% (5) ppts

1 Hospitality segments per 100 airline tickets issued.

Q1 2016 IGTS disposition Release of revenuedeferred

Q1 2016 Rebased Loss of large travelagent customer

eNett Volume/Mix Yield Travel DistributionCosts

FX/Other Q4 2017

Q1 bridge for net revenue less commissions

7

Q1 net revenue less commissions

• Prior year Q1 includes $5m related to IGTS (now disposed) and $9m related to revenue deferred in previous years

• Migration away of Pacific-based travel agency commenced in July 2017 (largely complete by 2017 year-end)

• Positive contribution from eNett

• Good growth in the GDS business, with positive impact of volume, mix and pricing offsetting normal TDC rate inflation

$348m

$328m

$334m

Q1 2017 IGTS disposal1

Related to revenuedeferred

Q1 2017 sub-total

eNett Volume/Mix

Pricing Travel Distribution Costs’ (TDC) rate inflation

FX/Other Q1 2018

Key takeaways

Loss of Pacific-based travel agency

GDS profit growth

1 The cost of revenue associated with IGTS is recorded within Technology costs.

• Commissions excluding eNett up due to FX, mix and normal rate inflation

• Technology costs down 9%, due to improvements in technology operating model

• SG&A increase largely driven by higher employee-related costs

• Lower depreciation charges due to phasing

Summarized income statement (1 of 2)

8


Net revenue 678 651 4%

Commissions (350) (303) (16)%

Subtotal 328 348 (6)%

% of Net Revenue 48.4% 53.5% (5.1)ppts

Add back: Amortization of CLPs 22 19 19%

Related to revenue deferred, and Other expense1 – (8) n/m

Technology costs (76) (84) 9%

SG&A2 (120) (106) (13)%

Adjusted EBITDA 154 169 (9)%

% of Net revenue 22.7% 25.9% (3.2)ppts

Depreciation on property and equipment (38) (43) 10%

Amortization of CLPs (22) (19) (19)%

Adjusted Operating Income 93 107 (13)%

% of Net revenue 13.8% 16.5% (2.7)ppts

Adjustments (to U.S. GAAP Operating Income)3 (16) (8) (88)%

U.S. GAAP Operating Income 78 100 (22)%

Key takeaways

n/m = percentage calculated not meaningful.1 ‘Other expense’ relates to the reclassification of certain components of pension and post-retirement benefit expense from SG&A resulting from adoption of the new pension guidance.2 SG&A excluding ‘Non-core corporate costs’. ‘Non-core corporate costs’ include corporate and restructuring costs, equity-based compensation and related taxes, impairment of property and equipment,and unrealized gains and losses on foreign currency derivative contracts.3 ‘Adjustments’ include amortization of acquired intangible assets, ‘Non-core corporate costs’, impairment of customer loyalty payments, other gains and losses and, in the prior period, $8m of costsrelated to revenue deferred in previous years.

• Interest expense down 17%, benefiting from debt re-pricing in August 2017 and lower term loan balance

• Q1 2018 effective tax rate of 19% due to geographical profit mix

Summarized income statement (2 of 2)

9


Adjusted Operating Income 93 107 (13)%

Interest expense, net1 (25) (31) 17%

Subtotal 68 77 (11)%

Remaining provision for income taxes2 (13) (12) (5)%

Adjusted Net Income 55 64 (15)%

Amortization of acquired intangible assets (10) (10) 2%

Other adjustments (to U.S. GAAP Net Income)3 15 2 n/m

U.S. GAAP Net Income 59 56 6%

Adjusted Income Per Share – diluted $0.44 $0.51 (15)%

U.S. GAAP Income Per Share – diluted $0.47 $0.45 4%

Key takeaways

n/m = percentage calculated not meaningful.1 ‘Interest expense, net’ exclude $10m and less than $1m of unrealized gains on interest rate derivative contracts for Q1 2018 and Q1 2017, respectively, which is included within ‘U.S. GAAP interestexpense, net’.2 ‘Remaining provision for income taxes’ exclude the tax adjustments excluded from Adjusted Net Income.3 ‘Other adjustments’ include ‘Non-core corporate costs’, impairment of customer loyalty payments, unrealized gains and losses on interest rate derivative contracts, loss on early extinguishment of debt,income from discontinued operations, other gains and losses, the tax impact of items excluded from Adjusted Net Income and other tax adjustments, and in the prior period $8m related to revenuedeferred in previous years.

• Net cash from operations down 13% due primarily to lower Adjusted EBITDA

• Capital Expenditures (including capital lease repayments) equate to 6.6% of net revenue in line with target of 6-7%

• Increase in ‘Other’ includes costs and fees associated with debt refinancing

• Interest up 5% due to timing of current year payments

• Customer loyalty payments higher due to recent wins and phasing of payments in prior year

Summary cash flows and Net Debt

10


Net cash provided by operating activities 83 95 (13)%

Capital expenditures on property and equipment additions (37) (24) (55)%

Free Cash Flow 46 71 (35)%

Repayment of capital lease obligations and other indebtedness (8) (10) 16%

Dividend to shareholders (9) (9) (1)%

Repayment of term loans (9) (6) (47%)

Other (15) 1 n/m

Net increase in cash and cash equivalents 5 47 (89)%

Supplemental cash flow information ($ millions) Q1 2018 Q1 2017 Better / (Worse)

Interest payments (32) (30) (5)%

Tax payments (12) (4) n/m

Customer loyalty payments (27) (17) (63)%

$ millions March 31, 2018 December 31, 2017 March 31, 2017

Net Debt 2,096 2,108 2,146

LTM Adjusted EBITDA 576 590 589

Net leverage multiple 3.64x 3.57x 3.64x

Key takeaways

n/m = percentage calculated not meaningful.

Gordon Wilson


Gordon Wilson


Beyond Air on track to deliver >$1bn in 2020

326 371424

492579

640

FY 12 FY 13 FY 14 FY 15 FY 16 FY 17

$ millions; CAGR FY 2012 – FY 2017

eNett Beyond Air ex. eNett

Continuing to deliver against our strategic objectives

12

Continuing to lead with content and dataWinning in sales with strong execution

Leveraging superior technology

• Expanded use of hybrid cloud

• Reduced search time & cost to serve through AI and machine learning

• New agency robotics functionality and mobile apps

• Launch of lighter-weight and faster APIs

• Multi award-winning agency point of sale now in 8th iteration

>260

airlines live with merchandising, including fares families, branded fares, ancillaries and tailored offers

CAGR+8%

CAGR+59%

>2x

~35%

Growing at over twice the market rate with OTAs

~35% OTA market share in

Asia Pacific

Reiterating full year 2018 guidance

13

Continuing to deliver against our strategic objectives

Focused technology investments driving signing and onboarding of new business

Beyond Air continues to be a strong source of differentiation, leveraging data, digital and payments

International growth continues; attractive growth in key markets, including Europe and Asia

(in $ millions, except per share amounts)

FY 2018 Guidance*

Growth

Net revenue 2,535 – 2,585 4 – 6%

Adjusted EBITDA 585 – 605 (1) – 3%

Adjusted Net Income 170 – 185 (6) – 2%

Adjusted Income per Share –diluted**

1.34 – 1.46 (7) – 1%

Free Cash Flow 210 – 230 5 – 15%

* Guidance assumes spot foreign exchange rates as of April 26, 2018.** Based on expected FY fully diluted shares outstanding of 127.0m.

The information presented here represent forward-looking statements and reflect our expectations as of May 3, 2018. We assume no obligation to update these statements. Actual results may be materially different and are affected by many factors detailed in this presentation and in our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on February 20, 2018 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, to be filed on May 3, 2018.

AppendicesFinancial Statistics

Operating Statistics

Key Financials

Definitions

Financial statistics

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Net Revenue ($ thousands) Q1 2018 Q1 2017 Better / (Worse)

Air 472,935 474,475 –

Beyond Air 179,751 147,585 22%

Travel Commerce Platform 652,686 622,060 5%

Technology Services 25,152 28,703 (12)%

Net Revenue 677,838 650,763 4%

Travel Commerce Platform revenue as a % of Net revenue 96% 96% 0.7ppts

Beyond Air revenue as a % of Travel Commerce Platform revenue 28% 24% 3.8ppts

% of Air segment revenue from away bookings 69% 67% 2.6ppts

Travel Commerce Platform Revenue by Region ($ thousands)

Q1 2018 Q1 2017 Better / (Worse)

Asia Pacific 141,551 151,015 (6)%

Europe 244,442 202,416 21%

Latin America and Canada 29,859 28,782 4%

Middle East and Africa 79,106 83,553 (5)%

International 494,958 465,766 6%

% of Travel Commerce Platform revenue 76% 75% 1.0ppt

United States 157,728 156,294 1%

Travel Commerce Platform revenue 652,686 622,060 5%

Operating statistics

16

Reported Segments by Region (thousands) Q1 2018 Q1 2017 Better / (Worse)

Asia Pacific 16,168 19,208 (16)%

Europe 25,647 23,497 9%

Latin America and Canada 4,710 4,626 2%

Middle East and Africa 9,628 9,476 2%

International 56,153 56,807 (1)%

United States 36,168 36,390 (1)%

Reported Segments 92,321 93,197 (1)%

Travel Commerce Platform RevPas ($) Q1 2018 Q1 2017 Better / (Worse)

International RevPas $8.81 $8.20 8%

United States RevPas $4.36 $4.30 1%

Travel Commerce Platform RevPas $7.07 $6.67 6%

Selected Travel Commerce Platform metrics Q1 2018 Q1 2017 Better / (Worse)

Transaction value processed on the Travel Commerce Platform ($m) 23,254,776 20,553,737 13%

Hotel room nights sold (thousands) 16,563 16,250 2%

Car rental days sold (thousands) 24,683 22,242 11%

Hospitality segments per 100 airline tickets issued1 41 41 (2)%

1 A hospitality segment refers to one complete hospitality booking. For example, a five night hotel stay equals one hospitality segment. Hospitality includes hotel, car, rail and other non-air bookings.

($ thousands) Q1 2018 Q1 2017 Better / (Worse)

Net Revenue 677,838 650,763 4%

Adjusted EBITDA 154,177 168,553 (9)%

Depreciation on property and equipment (38,398) (42,517) 10%

Amortization of customer loyalty payments (22,343) (18,795) (19)%

Adjusted Operating Income 93,436 107,241 (13)%

Interest expense, net1 (25,365) (30,501) 17%

Other expense (93) – n/m

Remaining provision for income taxes (13,040) (12,383) (5)%

Adjusted Net Income 54,938 64,357 (15)%

Amortization of acquired intangible assets (10,166) (10,392) 2%

Non-core corporate costs, and Other2 (5,606) 2,021 n/m

Unrealized gains on interest rate derivative contracts 10,430 226 n/m

Loss on early extinguishment of debt (27,661) – n/m

Income from discontinued operations 27,747 – n/m

Tax adjustments 9,549 (349) n/m

Net Income 59,231 55,863 6%

Summarized income statement

17

n/m = percentage calculated not meaningful.1 ‘Interest expense, net’ excludes unrealized gains or losses on interest rate derivative contracts.2 ‘Other’ – primarily relates to revenue deferred in previous years, recorded in Q1 2017, and impairment of customer loyalty payments.

Net revenue and Adjusted EBITDA

Adjusted EBITDA ($ thousands) Q1 2018 Q1 2017Better / (Worse)

Net Revenue 677,838 650,763 4%

Commissions (349,951) (302,789) (16)%

Add back: Amortization of CLPs 22,343 18,795 19%

Add back: Impairment of CLPs 236 – n/m

Related to revenue deferred in previous years, and Other expense1 – (8,457) n/m

Technology costs (76,446) (84,048) 9%

SG&A2 (119,843) (105,711) (13)%

Adjusted EBITDA 154,177 168,553 (9)%

Adjusted EBITDA Margin 22.7% 25.9% (3.2)ppts

Net Revenue ($ thousands) Q1 2018 Q1 2017Better / (Worse)

Air 472,935 474,475 –

Beyond Air 179,751 147,585 22%

Travel Commerce Platform 652,686 622,060 5%

Technology Services 25,152 28,703 (12)%

Net Revenue 677,838 650,763 4%

181 ‘Other expense’ relates to the reclassification of certain components of pension expense from SG&A resulting from adoption of the new pension guidance.2 SG&A excluding ‘Non-core corporate costs’.

Summary cash flows, Capital Expenditures and Net Debt

19

Free Cash Flow ($ thousands) Q1 2018 Q1 2017

Net cash provided by operating activities 83,097 95,022

Capital expenditures on property and equipment additions (36,633) (23,609)

Free Cash Flow 46,434 71,413

Net Debt ($ thousands) March 31, 2018 December 31, 2017 March 31, 2017

Term loans1 1,385,934 2,124,439 2,232,453

Senior secured notes2 737,404 – –

Capital leases and other indebtedness 99,786 105,574 100,776

Cash and cash equivalents (127,165) (122,039) (187,407)

Net Debt 2,095,959 2,107,974 2,145,822

Capital Expenditures ($ thousands) Q1 2018 Q1 2017

Capital expenditures on property and equipment additions 36,633 23,609

Repayment of capital lease obligations and other indebtedness 8,000 9,511

Capital Expenditures 44,663 33,120

Total Capital Expenditures as % of Net revenue 6.6% 5.1%

Supplemental cash flow information ($ thousands) Q1 2018 Q1 2017

Interest payments 31,530 30,126

Tax payments 11,902 3,905

Customer loyalty payments 27,366 16,755

1 Net of unamortized debt discount and unamortized debt finance costs.2 Net of unamortized debt finance costs

With respect to our full year 2018 guidance:

Adjusted EBITDA guidance consists of Adjusted Net Income guidance excluding expected depreciation and amortization of property and equipment and expected amortization of customer loyalty payments of $250 million to $260 million, expected interest expense, net (excluding the impact of unrealized gain (loss) on interest rate derivative instruments) of approximately $110 million and expected related income taxes of approximately $55 million. Adjusted Net Income guidance excludes the expected impact of amortization of acquired intangible assets of approximately $40 million, loss on early extinguishment of debt of $28 million, expected equity-based compensation and related taxes and corporate and restructuring costs of $60 million to $70 million, income from discontinued operations of $28 million related to the release of an indemnity provision for liabilities accrued upon the sale of Gullivers Travel Associates in 2011 and an expected income tax benefit related to the adjustments above of $10 million to $15 million. We are unable to reconcile Adjusted EBITDA and Adjusted Net Income to net income (loss) determined under U.S. GAAP due to the unavailability of information required to reasonably predict certain reconciling items such as loss on early extinguishment of debt, impairment of long-lived assets, unrealized gains or losses on foreign currency and interest rate derivative instruments, and the related tax impact of such adjustments along with other tax adjustments.

Adjusted Income per Share—diluted guidance consists of Adjusted Net Income divided by our expected weighted average number of dilutive common shares for 2018 of approximately 127 million.

Free Cash Flow guidance reflects expected net cash provided by operating activities for 2018 of $320 million to $350 million less expected cash additions to property and equipment of $110 million to $120 million.

Full year 2018 guidance

20

Adjusted EBITDA is defined as Adjusted Net Income (Loss) excluding depreciation and amortization of property and equipment, amortization of customer loyalty payments, interest expense, net (excluding unrealized gains (losses) on interest rate derivative instruments), and related income taxes.

Adjusted Income (Loss) per Share – Diluted is defined as Adjusted Net Income (Loss) for the period divided by the weighted average number of dilutive common shares.

Adjusted Net Income (Loss) is defined as net income (loss) excluding amortization of acquired intangible assets, gain (loss) on early extinguishment of debt, and items that are excluded under our debt covenants, such as gain (loss) on sale of subsidiary, income (loss) from discontinued operations, non-cash equity-based compensation, certain corporate and restructuring costs, non-cash impairment of long-lived assets, certain litigation and related costs, and other non-cash items such as unrealized foreign currency gains (losses) on earnings hedges, and unrealized gains (losses) on interest rate derivative instruments, along with any income tax related to these exclusions. Tax impacts not related to core operations have also been excluded.

Adjusted Operating Income (Loss) is defined as Adjusted EBITDA less depreciation and amortization of property and equipment, amortization of customer loyalty payments and components of net periodic pension and post-retirement benefit costs other than service cost.

Definitions

21

Capital Expenditures is defined as cash paid for property and equipment plus repayments in relation to capital leases and other indebtedness.

Customer Loyalty Payments are payments made to travel agencies or travel providers with an objective of increasing the number of travel bookings using the Company’s Travel Commerce Platform and to improve the travel agencies or travel providers’ loyalty, which are instrumented through agreements with a term over a year. Under the contractual terms, the travel agency or travel provider commits to achieve certain economic objectives for the Company. Such costs are specifically identifiable to individual contracts with travel agencies or travel providers, which have determinable contractual lives. Due to the contractual nature of the payments, the Company believes that such assets are appropriately classified as intangible assets.

Free Cash Flow is defined as net cash provided by (used in) operating activities, less cash used for additions to property and equipment.

Net Debt is defined as total debt comprising of current and non-current portion of long-term debt minus cash and cash equivalents.

Reported Segments means travel provider revenue generating units (net of cancellations) sold by the Company’s travel agency network, geographically presented by region based upon the point of sale location.

Travel Commerce Platform RevPas (“RevPas”) represents Travel Commerce Platform revenue per segment and is computed by dividing Travel Commerce Platform revenue by the total number of Reported Segments.

q1 2018 earnings

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