GLOBAL BUSINESS TRAVEL GROUP, INC. Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations (kind 10-Q)

FORWARD-LOOKING STATEMENTS


Sure statements made on this Quarterly Report on Type 10-Q are
"forward-looking statements" inside the that means of Part 27A of the Securities
Act and Part 21E of the Trade Act, and are topic to the secure harbor
created thereby underneath the Personal Securities Litigation Reform Act of 1995.
Ahead-looking statements present our present expectations or forecasts of
future occasions. Ahead-looking statements embrace statements about our
expectations, beliefs, plans, targets, intentions, assumptions and different
statements that aren't historic information. Phrases corresponding to "estimates,"
"projected," "expects," "estimated," "anticipates," "suggests," "tasks,"
"forecasts," "plans," "intends," "believes," "seeks," "might," "will," "would,"
"ought to," "may," "future," "suggest," "goal," "purpose," "goal," "outlook"
and variations of those phrases or related expressions (or the damaging variations
of such phrases or expressions) are meant to establish forward-looking
statements. These forward-looking statements are based mostly on our present
expectations and beliefs regarding future developments and their potential
results on us and never ensures of future efficiency, circumstances or outcomes.
There might be no assurance that future developments affecting us might be these
that we've got anticipated. These forward-looking statements contain numerous
recognized and unknown dangers, uncertainties, assumptions and different vital elements,
a lot of that are outdoors the management of the events, that would trigger precise
outcomes or outcomes to vary materially from these expressed or implied by the
forward-looking statements. Vital elements which will have an effect on precise outcomes or
outcomes embrace, amongst others:

? modifications to projected monetary info or our capacity to attain our

anticipated development price and execute on market alternatives;

? our capacity to attain price financial savings plans;

our capacity to keep up our current relationships with prospects and suppliers

? and to compete with current and new rivals in current and new markets

and choices;

? varied conflicts of curiosity that would come up amongst us, associates and

traders;

? our success in retaining or recruiting, or modifications required in, our officers,

key staff or administrators;

? intense competitors and aggressive pressures from different corporations within the

business through which we function;

? elements regarding our enterprise, operations and monetary efficiency,

together with market circumstances and world and financial elements past our management;

the influence of the COVID-19 pandemic, Russia’s invasion of Ukraine, modifications in

? base rates of interest, inflation and important market volatility on our

enterprise, the journey business, journey tendencies and the worldwide economic system usually;

? the sufficiency of our money, money equivalents and investments to satisfy our

liquidity wants;

? the impact of a chronic or substantial lower in world journey on the

world journey business;

political, social and macroeconomic circumstances (together with the widespread

? adoption of teleconference and digital assembly applied sciences which may scale back

the variety of in individual enterprise conferences and demand for journey and our

companies);

? the impact of authorized, tax and regulatory modifications; and

? different elements detailed underneath the heading “Danger Elements” on this Type 10-Q and

our Registration Assertion.



Ought to a number of of those dangers or uncertainties materialize, or ought to any of
our assumptions show incorrect, precise outcomes might differ in materials respects
from these projected in these forward-looking statements. We undertake no
obligation to replace or

                                       36

  Desk of Contents

revise any forward-looking statements, whether or not because of new info,
future occasions or in any other case, besides as could also be required underneath relevant
securities legal guidelines.


It's best to learn the next dialogue and evaluation of our monetary situation
and outcomes of operations along with our consolidated monetary statements,
and the associated notes, included elsewhere on this Type 10-Q. The dialogue and
evaluation beneath presents our historic outcomes as of and for the intervals ended
on, the dates indicated. The historic financials beneath, for the interval prior
to the Enterprise Mixture, are these of GBT JerseyCo Restricted and its
subsidiaries that grew to become predecessors of GBTG upon the consummation of the
Enterprise Mixture and, relying on the context, "we," "us," or "our," may
imply GBT JerseyCo and its subsidiaries or GBTG and its subsidiaries.

Overview


We're the world's main platform serving journey for enterprise functions that's
bought and fulfilled by way of a company-sponsored and managed channel ("B2B
journey") offering a full suite of differentiated, technology-enabled options
to enterprise vacationers and purchasers, suppliers of journey content material (corresponding to
airways, accommodations, floor transportation and aggregators) and third-party journey
companies. We differentiate our worth proposition by way of our dedication to
ship unrivalled selection, worth and expertise to our prospects.

We’re on the heart of the worldwide B2B journey ecosystem, managing the end-to-end
logistics of enterprise journey and offering an vital hyperlink between
organizations, their staff, journey suppliers and different business
individuals. We service our purchasers within the following methods:

Our journey administration options (delivered by way of the portfolio of our manufacturers,

together with American Categorical World Enterprise Journey, Ovation, Legal professionals Journey and

? Egencia) present our purchasers with in depth entry to flights, lodge rooms, automobile

leases and different journey companies, together with unique negotiated content material,

supported by a full suite of companies that enables them to design and function an

environment friendly journey program and resolve advanced journey necessities.

GBT Companion Options extends our platform to third-party journey administration

corporations and impartial advisors (“Community Companions“), providing them entry

to our differentiated content material and know-how. By way of GBT Companion Options, we

? mixture enterprise journey demand serviced by our Community Companions at low

incremental price, which we consider enhances the economics of our platform,

generates elevated return on funding and expands our geographic and phase

footprint.

GBT Provide MarketPlace supplies journey suppliers with environment friendly entry to

enterprise journey purchasers serviced by our manufacturers and Community Companions. We consider

this entry permits journey suppliers to profit from premium demand (which we

? usually view as demand that’s differentially useful and worthwhile to

suppliers) with out incurring the prices related to immediately advertising and marketing to,

and servicing, the advanced wants of our enterprise purchasers. Our journey provider

relationships generate efficiencies and value financial savings that may be handed on to

our enterprise purchasers.



In June 2014, American Categorical Firm ("American Categorical") established a joint
enterprise ("JV") comprising the legacy GBT JerseyCo operations with a predecessor
of Juweel Traders (SPC) Restricted ("Juweel") and a gaggle of institutional
traders led by an affiliate of Certares. For the reason that formation of the JV in
2014, we've got developed from a number one journey administration firm into an entire
B2B journey platform, turning into one of many main marketplaces in journey for
enterprise purchasers and journey suppliers. Earlier than June 2014, our operations have been
owned by American Categorical and primarily consisted of offering enterprise journey
options for enterprise purchasers.

On December 2, 2021, we entered right into a Enterprise Mixture Settlement with
Apollo Strategic Progress Capital ("APSG"), a particular goal acquisition firm,
listed on the New York Inventory Trade. The Enterprise Mixture closed on Might
27, 2022 and GBT JerseyCo grew to become a direct subsidiary of APSG. Additional, APSG was
renamed as "World Enterprise Journey Group, Inc." GBTG is a Delaware company
and tax resident within the U.S. GBTG conducts its enterprise by way of GBT JerseyCo in
an Up-C construction. GBT JerseyCo is tax resident within the U.Ok.

Prior to the deadline of the Enterprise Mixture, we operated our enterprise
journey, enterprise consulting and conferences and occasions companies underneath the manufacturers
American Categorical World Enterprise Journey and American Categorical Conferences & Occasions
pursuant to an unique and worldwide license from American Categorical. Efficient
as of the deadline of the Enterprise Mixture, we executed long-term
business agreements with American Categorical, together with the amended and restated
trademark license settlement,

                                       37

Desk of Contents


pursuant to which we proceed to license the American Categorical logos utilized in
the American Categorical World Enterprise Journey model, proceed to license the
American Categorical logos utilized in American Categorical Conferences & Occasions (solely
throughout a 12-month transition interval) model, and license the American Categorical
logos used within the American Categorical GBT Conferences & Occasions model for enterprise
journey, conferences and occasions, enterprise consulting and different companies associated to
enterprise journey, in every case on an unique and worldwide foundation. The time period of
the amended and restated trademark license settlement is for 11 years from the
deadline of the Enterprise Mixture, until earlier terminated or prolonged.
The American Categorical model, constantly ranked as probably the most useful
manufacturers on the planet, brings with it a popularity for service excellence. We
consider our partnership with American Categorical has been an vital element of
our worth proposition. Underneath our business agreements with American Categorical, we
completely present enterprise journey and conferences and occasions companies to American
Categorical personnel, topic to restricted exceptions, have interaction in mutual world lead
technology actions with American Categorical for our respective companies and
proceed to completely promote American Categorical fee merchandise to our purchasers
and to make these merchandise accessible to be used by our personal personnel in connection
with our enterprise.

As of September 30, 2022, we had over 18,000 staff worldwide.

Key Elements Affecting Our Outcomes of Operations


On account of numerous elements, our historic outcomes of operations will not be
comparable from interval to interval and might not be akin to our monetary
outcomes of operations in future intervals. Set forth beneath is a quick dialogue
of the important thing elements impacting the comparability of our outcomes of operations.

Business Tendencies


The journey business can usually be divided into two sectors: (i) the leisure
journey sector, which serves people who make reservations for trip and
private journey, and (ii) the enterprise journey sector, which serves organizations
that require journey by staff and different vacationers for enterprise wants and
conferences. We focus totally on the enterprise journey sector, which is
roughly twice as useful because the leisure journey sector as a result of enterprise
journey prospects buy extra premium seats, extra versatile tickets, extra
long-haul worldwide journeys and extra last-minute bookings.

Affect of the COVID-19 Pandemic


Since March 2020, the outbreak of the novel pressure of the coronavirus, COVID-19
("COVID-19"), severely restricted the extent of financial exercise across the
world and had an unprecedented impact on the worldwide journey business. Authorities
measures carried out to include the unfold of COVID-19, corresponding to imposing
restrictions on journey and enterprise operations and advising or requiring
people to restrict or forgo time outdoors of their houses, restricted enterprise
journey considerably beneath 2019 ranges.

Whereas many international locations have vaccinated an inexpensive proportion of their
inhabitants, the speed and tempo of vaccination globally, the severity and period
of resurgence, in addition to uncertainty over the efficacy of the vaccines towards
new variants of the virus, might contribute to delays in financial restoration.
Total, the last word influence and period of the COVID-19 pandemic stays
unsure and can rely upon future developments, that are troublesome to
predict.

Nevertheless, with the unfold of COVID-19 now being contained to various levels in
sure international locations throughout totally different instances, journey restrictions have been lifted
and purchasers have turn out to be extra snug touring, notably to home
areas. This has led to a moderation of the extra extreme declines in enterprise
journey bookings skilled at sure factors for the reason that pandemic started. Beginning
within the second half of 2021 and persevering with into the primary half of 2022, world
journey exercise has proven a restoration development, however, as of September 30, 2022, it
remained beneath 2019 largely on account of COVID-19 variants and subvariants. In the course of the
three months ended September 30, 2022, we proceed to see momentum in enterprise
journey restoration with a rise in our Whole Transaction Worth (as outlined
beneath) and Transaction Progress (as outlined beneath) in comparison with the three months
ended September 30, 2021.

Affect of Acquisitions

We repeatedly consider and pursue accretive acquisitions and have realized
substantial development by way of our acquisition technique. In January 2021, we
accomplished the acquisition of Ovation Journey, LLC (along with its
subsidiaries, “Ovation”). Ovation is a number one specialist in offering
high-touch service. The Ovation acquisition was an vital step in increasing
our excessive worth capabilities and constructing our management within the massive and
enticing small and medium enterprise buyer base and the skilled
companies business.


                                       38

  Desk of Contents

Additional, on November 1, 2021, we accomplished our acquisition of Egencia, a
business-to-business digital journey administration firm serving enterprise purchasers,
from an affiliate of Expedia, Inc., EG Company Journey Holdings LLC
(“Expedia”).


Our consolidated monetary statements for the 9 months ended September 30,
2022 embrace the outcomes of the acquisitions mentioned above from the respective
deadline of every acquisition.

These acquisitions have been a big driver of our income, price of
income and different working bills (together with integration, restructuring and
depreciation and amortization). Additional, buy accounting underneath GAAP requires
that every one belongings acquired and liabilities assumed in a enterprise mixture be
recorded at truthful worth on the acquisition date. Consequently, our acquisition
technique has resulted up to now and will consequence sooner or later in a
important quantity of amortization of acquired intangibles (or impairments, if
any) recorded in our outcomes of operations following acquisition by GBTG, which
might considerably influence our outcomes of operations.

Key Working and Monetary Metrics


We monitor the next key working and monetary metrics to assist us consider
our enterprise, measure our efficiency, establish tendencies affecting our enterprise,
put together monetary projections and make strategic choices. The next key
working and monetary metrics, which we consider are helpful in evaluating our
enterprise, are utilized by administration to watch and analyze the operational and
monetary efficiency of our enterprise:

                          Three months ended         Change favorable /     

9 months ended Change favorable /

                            September 30,              (unfavorable)             September 30,              (unfavorable)
(in $ tens of millions,
besides percentages)        2022          2021           $            %     
    2022         2021           $             %
Key Working
Metrics
TTV                     $    6,585     $  1,778    $     4,807        270 %  $   17,054    $  3,649    $     13,405        367 %
Transaction Progress
(Decline)                      207 %        137 %          n/m        n/m           291 %      (33) %           n/m        n/m
Key Monetary
Metrics
Income                        488          197            291        147 %       1,324         476             848        178 %
Whole working
expense                        533          321          (212)       (66) %       1,484         843           (641)       (76) %
Internet loss                      (73)        (106)             33         30 %       (166)       (275)             109         39 %
Internet money utilized in
working actions          (81)        (107)             26         24 %
      (390)       (343)            (47)       (14) %
EBITDA                        (12)         (90)             78         87 %         (2)       (260)             258         99 %
Adjusted EBITDA                 41         (75)            116        154 %          60       (239)             299        125 %
Adjusted Working
Bills                       446          272          (174)       (64) %       1,261         713           (548)       (77) %
Free Money Move               (112)        (117)              5          4 %       (463)       (371)            (92)       (25) %


                As of              As of
            September 30,       December 31,
                 2022               2021
Internet Debt    $           909    $          507


n/m – proportion calculated not significant

Key Working Metrics

We contemplate Whole Transaction Worth ("TTV") (as outlined beneath), adopted by
Transaction Progress (Decline) (as outlined beneath), to be two important
non-financial metrics which might be broadly used within the journey business to assist
perceive income and expense tendencies. These metrics are utilized by our administration
to (1) handle the monetary planning and efficiency of our enterprise, (2)
consider the effectiveness of our enterprise methods, (3) make budgeting
choices, and (4) examine our efficiency to the efficiency of our peer
corporations. We additionally consider that TTV, adopted by Transaction Progress (Decline),
might help potential traders and monetary analysts in understanding the
drivers of development in our revenues and modifications in our working bills throughout
reporting intervals.

                                       39

  Desk of Contents

TTV
TTV refers back to the sum of the entire worth paid by vacationers for air, lodge, rail,
automobile rental and cruise bookings, together with taxes and different expenses utilized by
suppliers at level of sale, much less cancellations and refunds.

For the three months ended September 30, 2022, TTV elevated by $4,807 million,
or 270%, to $6,585 million in comparison with the three months ended September 30,
2021. For the 9 months ended September 30, 2022, TTV elevated by $13,405
million, or 367%, in comparison with the 9 months ended September 30, 2021. The
improve in TTV was primarily on account of (i) full quarterly inclusion of Egencia's
TTV, which contributed 94% and 121% of TTV for the three and 9 months ended
September 30, 2022, respectively, and (ii) continued restoration of our enterprise
from a interval of great COVID-19 pandemic journey restrictions, which have been
launched by governments in response to the COVID-19 pandemic. The rise in
TTV, partially, displays growing numbers of corporations returning to enterprise
journey and reductions in worldwide journey restrictions.

Transaction Progress (Decline)

Transaction Progress (Decline) represents year-over-year development or decline as a
proportion of the entire transactions, together with air, lodge, automobile rental, rail or
different travel-related transactions, recorded on the time of reserving, and is
calculated on a gross foundation to incorporate cancellations, refunds and exchanges. To
calculate year-over-year development or decline, we examine the entire variety of
transactions within the comparative earlier interval/ yr to the entire variety of
transactions within the present interval in proportion phrases.

For the three months ended September 30, 2022, Transaction Progress was 207%
in comparison with three months ended September 30, 2021. For the 9 months ended
September 30, 2022, Transaction Progress was 291% in comparison with the 9 months
ended September 30, 2021. Transaction Progress throughout these intervals was primarily
on account of (i) full quarterly inclusion of Egencia's transaction quantity, which
contributed 105% and 133% of Transaction Progress for the three and 9 months
ended September 30, 2022, respectively, and (ii) the rise in variety of
transactions on account of continued easing of journey restrictions that have been launched
by governments in response to the COVID-19 pandemic.

Non-GAAP Monetary Measures


We report our monetary ends in accordance with GAAP. Our non-GAAP monetary
measures are offered along with, and shouldn't be thought-about as an
various to, different efficiency or liquidity measure derived in accordance
with GAAP. Non-GAAP monetary measures have limitations as analytical instruments, and
you shouldn't contemplate them both in isolation or as an alternative choice to
analyzing our outcomes as reported underneath GAAP. As well as, as a result of not all
corporations use equivalent calculations, the displays of our non-GAAP
monetary measures might not be akin to different equally titled measures of
different corporations and may differ considerably from firm to firm.

Administration believes that these non-GAAP monetary measures present customers of our
monetary info with helpful supplemental info that permits a greater
comparability of our efficiency or liquidity throughout intervals. As well as, we use
sure of those non-GAAP monetary measures as efficiency measures as they're
vital metrics utilized by administration to judge and perceive the underlying
operations and enterprise tendencies, forecast future outcomes and decide future
capital funding allocations. We use two of our non-GAAP monetary measures as
indicators of our capacity to generate money to satisfy our liquidity wants and to
help our administration in evaluating our monetary flexibility, capital construction
and leverage. These non-GAAP monetary measures complement comparable GAAP
measures within the analysis of the effectiveness of our enterprise methods, to
make budgeting choices, and/or to match our efficiency and liquidity
towards that of different peer corporations utilizing related measures.

EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Working Bills


We outline EBITDA as web earnings (loss) earlier than curiosity earnings, curiosity expense,
loss on early extinguishment of debt, profit from (provision for) earnings taxes
and depreciation and amortization.

We outline Adjusted EBITDA as web earnings (loss) earlier than curiosity earnings, curiosity
expense, loss on early extinguishment of debt, profit from (provision for)
earnings taxes and depreciation and amortization and as additional adjusted to
exclude prices that administration believes are non-core to the underlying enterprise
of the Firm, consisting of restructuring prices, integration prices, prices
associated to mergers and acquisitions, separation prices, non-cash equity-based
compensation, long-term incentive plan prices, sure company

                                       40

Desk of Contents


prices, truthful worth actions on earnouts and warrants spinoff liabilities,
overseas forex beneficial properties (losses), non-service elements of web periodic pension
profit (prices) and beneficial properties (losses) on disposal of companies.

We outline Adjusted EBITDA Margin as Adjusted EBITDA divided by income.

We outline Adjusted Working Bills as whole working bills excluding
depreciation and amortization and prices that administration believes are non-core to
the underlying enterprise of the Firm, consisting of restructuring prices,
integration prices, prices associated to mergers and acquisitions, separation prices,
non-cash equity-based compensation, long-term incentive plan prices and sure
company prices.

EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Working Bills
are supplemental non-GAAP monetary measures of working efficiency that do
not characterize and shouldn't be thought-about as options to web earnings (loss)
or whole working bills, as decided underneath GAAP. As well as, these
measures might not be akin to equally titled measures utilized by different
corporations.

These non-GAAP measures have limitations as analytical instruments, and these measures
shouldn't be thought-about in isolation or as an alternative choice to evaluation of the
Firm's outcomes or bills as reported underneath GAAP. A few of these limitations
are that these measures don't mirror:

? modifications in, or money necessities for, our working capital wants or contractual

commitments;

? our curiosity expense, or the money necessities to service curiosity or principal

funds on our indebtedness;

? our tax expense, or the money necessities to pay our taxes;

recurring, non-cash bills of depreciation and amortization of property and

? gear and definite-lived intangible belongings and, though these are non-cash

bills, the belongings being depreciated and amortized might have to get replaced in

the long run;

the non-cash expense of stock-based compensation, which has been, and can

? proceed to be for the foreseeable future, an vital a part of how we entice

and retain our staff and a big recurring expense in our enterprise;

? restructuring, mergers and acquisition and integration prices, all of that are

intrinsic of our acquisitive enterprise mannequin; and

influence on earnings or modifications ensuing from issues which might be non-core to our

? underlying enterprise, as we consider they don’t seem to be indicative of our underlying

operations.



EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Working Bills
shouldn't be thought-about as a measure of liquidity or as a measure figuring out
discretionary money accessible to us to reinvest within the development of our enterprise or
as measures of money that might be accessible to us to satisfy our obligations.

We consider that the changes utilized in presenting EBITDA, Adjusted EBITDA,
Adjusted EBITDA Margin and Adjusted Working Bills are applicable to
present extra info to traders about sure materials non-cash and
different objects that administration believes are non-core to our underlying enterprise.

We use these measures as efficiency measures as they're vital metrics used
by administration to judge and perceive the underlying operations and enterprise
tendencies, forecast future outcomes and decide future capital funding
allocations. These non-GAAP measures complement comparable GAAP measures within the
analysis of the effectiveness of our enterprise methods, to make budgeting
choices, and to match our efficiency towards that of different peer corporations
utilizing related measures. We additionally consider that EBITDA, Adjusted EBITDA, Adjusted
EBITDA Margin and Adjusted Working Bills are useful supplemental measures
to help potential traders and analysts in evaluating our working outcomes
throughout reporting intervals on a constant foundation.

                                       41

Desk of Contents


Set forth beneath is a reconciliation of web loss to EBITDA and Adjusted EBITDA.

                                                    Three months ended September 30,            9 months ended September 30,
(in $ tens of millions)                                       2022                    2021                 2022                   2021
Internet loss                                         $          (73)        $           (106)    $          (166)       $          (275)
Curiosity expense                                              26                       13                  69                     37
Profit from earnings taxes                                   (10)                     (31)                (39)                  (126)
Depreciation and amortization                                 45           
           34                 134                    104
EBITDA                                                      (12)                     (90)                 (2)                  (260)
Restructuring (a)                                            (2)                        4                 (5)                    (5)
Integration prices (b)                                          8                        4                  25                      9
Mergers and acquisitions (c)                                  19                        2                  21                     13
Fairness-based compensation (d)                                 15                        -                  23                      1
Honest worth actions on earnouts and warrants
spinoff liabilities (e)                                     6                        -                (30)                      -
Different changes, web (f)                                     7                        5                  28                      3
Adjusted EBITDA                                  $            41        $            (75)    $             60       $          (239)
Internet loss Margin                                             (15) %                   (54) %              (13) %                 (58) %
Adjusted EBITDA Margin                                         8 %                   (38) %                 5 %                 (50) %


Set forth beneath is a reconciliation of whole working bills to Adjusted
Working Bills:

                                                  Three months ended September 30,           9 months ended September 30,
(in $ tens of millions)                                      2022                   2021                2022                   2021
Whole working bills                         $          533        $           321    $          1,484       $            843

Changes:

Depreciation and amortization                              (45)            
      (34)               (134)                  (104)
Restructuring (a)                                             2                    (4)                   5                      5
Integration prices (b)                                       (8)                    (4)                (25)                    (9)
Mergers and acquisitions (c)                               (19)                    (2)                (21)                   (13)
Fairness-based compensation (d)                              (15)                      -                (23)                    (1)
Different changes, web (f)                                  (2)                    (5)                (25)                    (8)
Adjusted Working Bills                     $           446        $           272    $          1,261       $            713


(a) Represents severance and associated bills on account of restructuring actions.

(b) Represents bills associated to the combination of companies acquired.

Represents bills associated to enterprise acquisitions, together with potential

enterprise acquisitions, and consists of pre-acquisition due diligence and associated
(c) actions prices. The three and 9 months ended September 30, 2022 consists of

a cost of $19 million for a loss contingency in relation to a contingent

occasion that existed as of the Egencia acquisition date.

(d) Represents non-cash equity-based compensation expense associated to the GBTG/GBT

JerseyCo fairness compensation plans.

(e) Represents truthful worth actions on earnouts and warrants spinoff

liabilities through the intervals.

Adjusted Working Bills excludes (i) long-term incentive plan expense of

$(3) million and $3 million for the three months ended September 30, 2022 and

2021, respectively, $17 million and $5 million for the 9 months ended

September 30, 2022 and 2021, respectively, (ii) litigation {and professional}

companies prices of $5 million and $2 million for the three months ended

September 30, 2022 and 2021, respectively, and $8 million and $3 million for

the 9 months ended September 30, 2022 and 2021, respectively. Adjusted
(f) EBITDA moreover excludes (i) unrealized overseas change losses (beneficial properties)

of $7 million and $2 million for the three months ended September 30, 2022

and 2021, respectively, and $9 million and $1 million for the 9 months

ended September 30, 2022 and 2021, respectively, (ii) non-service element

of our web periodic pension profit associated to our outlined profit pension

plans of $2 million for every of the three months ended September 30, 2022 and

2021 and $6 million for every of the 9 months ended September 30, 2022 and

2021.

For a dialogue of Free Money Move and Internet Debt, see “Liquidity and Capital
Assets – Free Money Move” and “Liquidity and Capital Assets – Internet Debt.”


                                       42

  Desk of Contents

Elements of Outcomes of Operations

Income

We generate income in two main methods – (1) Journey Revenues obtained from
purchasers and journey suppliers and (2) Product and Skilled Providers Revenues
obtained from purchasers, journey suppliers and Community Companions.

Journey Revenues: Journey Revenues embrace all income regarding servicing a
journey transaction, which might be air, lodge, automobile rental, rail or different
travel-related bookings or reservations, cancellations, exchanges or refunds.
The key elements of our Journey Revenues are:

? Consumer Charges: We usually cost purchasers transaction charges for arranging journey.

Provider Charges: Journey suppliers pay us for distributing and selling their

? content material. The mechanism varies by provider, however the quantity is often a

volume-linked payment. This consists of charges from the three main suppliers of worldwide

distribution techniques.

Product and Skilled Providers Revenues: We obtain income from purchasers,
journey suppliers and Community Companions for utilizing our platform, merchandise and
value-added companies.

Administration Charges: Many consumers request a contractually mounted, devoted staffing

pool to serve their vacationers for half or all of their enterprise journey. In

? these instances, we use a cost-recovery-plus-margin pricing construction. Consumer

   administration assets and overhead allocations are additionally included on this
   administration payment.

Merchandise Revenues: We offer a broad vary of enterprise journey administration instruments

? utilized by purchasers to handle their journey applications. Income for these options

often takes the type of recurring subscriptions or administration charges.

Consulting and Conferences and Occasions Revenues: Consulting revenues (together with

outsourcing to us of half, or all, of a consumer’s journey program administration) are

? often a set payment for supply of a sure engagement (corresponding to firm

journey coverage design). Conferences and occasions income is predicated on charges for

reserving, planning and managing conferences and occasions.

Different Revenues: Different revenues usually embrace sure advertising and marketing and

? promoting charges from journey suppliers, in addition to direct revenues from our

Community Companions (excluding sure provider charges which might be not directly pushed by

Community Companions’ contribution to mixture volumes).


Prices and Bills

Value of Income

Value of income primarily consists of (i) salaries and advantages of our journey
counsellors, conferences and occasions groups and their supporting features and
(ii) the price of outsourcing assets in transaction processing and the
processing prices of on-line reserving instruments.

Gross sales and Advertising and marketing


Gross sales and advertising and marketing bills primarily consists of (i) salaries and advantages of
staff in our gross sales and advertising and marketing perform and (ii) the bills for
buying and sustaining consumer partnerships, together with account administration,
gross sales, advertising and marketing and consulting, in addition to sure different features that help
these efforts.

Expertise and Content material

Expertise and content material bills primarily consists of (i) salaries and advantages
of staff engaged in our product and content material improvement, back-end
functions, help infrastructure and who preserve safety of our networks
and (ii) bills related to licensing software program and knowledge know-how
upkeep.

                                       43

  Desk of Contents

Basic and Administrative

Basic and administrative bills consists of (i) salaries and advantages of our
staff in finance, authorized, human assets and administrative help,
together with bills related to the manager non-cash fairness plan and
long-term incentive plans, (ii) integration bills associated to acquisitions,
prices associated to mergers and acquisitions primarily associated to due diligence,
authorized and associated skilled companies charges and (iii) charges and prices associated to
accounting, tax and different skilled companies charges, authorized and associated prices,
and different miscellaneous bills. We've got incurred, and anticipate to proceed to
incur, extra bills as we develop our operations as a newly public firm,
together with larger authorized, company insurance coverage, accounting and auditing bills,
and the extra prices of enhancing and sustaining our inner management
atmosphere by way of the adoption of recent company insurance policies. We additionally anticipate that
common and administrative bills will proceed to extend in absolute
{dollars} as we broaden our operations.

Outcomes of Operations

Three Months Ended September 30, 2022 In comparison with Three Months Ended September
30, 2021

The next is a dialogue of our outcomes of the consolidated statements of
operations for the three months ended September 30, 2022 and 2021:

                                                    Three months ended                Change
                                                      September 30,           favorable/(unfavorable)
(in $ tens of millions)                                     2022          2021           $                %
Income                                           $     488     $    197    $        291            147 %
Prices and bills:
Value of income (excluding depreciation and
amortization proven individually beneath)                    217          127            (90)           (72) %
Gross sales and advertising and marketing                                      81           51            (30)           (59) %
Expertise and content material                                   98           63            (35)           (55) %
Basic and administrative                               94           42            (52)          (122) %
Restructuring                                           (2)            4               6            165 %
Depreciation and amortization                            45           34            (11)           (32) %
Whole working bills                                533          321   
       (212)           (66) %
Working loss                                         (45)        (124)              79             64 %
Curiosity expense                                       (26)         (13)            (13)           (94) %
Honest worth actions on earnouts and warrants
spinoff liabilities                                  (6)            -             (6)            n/m
Different earnings, web                                       (5)            -             (5)            n/m
Loss earlier than earnings taxes and share of losses
from fairness technique investments                         (82)        (137)              55             40 %
Profit from earnings taxes                                10           31            (21)           (71) %
Share of losses from fairness technique investments          (1)            -   
         (1)            n/m
Internet loss                                          $    (73)     $  (106)    $         33             30 %

n/m – proportion calculated not significant

Revenues

                                                     Three months ended                  Change
                                                       September 30,            favorable/(unfavorable)
(in $ tens of millions)                                     2022           2021            $                 %
Journey income                                    $     387      $     120    $        267             224 %
Merchandise {and professional} companies income              101             77 
            24              29 %
Whole income                                     $     488      $     197    $        291             147 %

For the three months ended September 30, 2022, our whole income elevated by
$291 million, or 147%, on account of incremental income ensuing from Egencia
consolidation and restoration in each Journey Income and Merchandise & Skilled
Providers income.

Journey Income elevated by $267 million, or 224%, on account of (i) incremental
income of $95 million ensuing from Egencia consolidation and (ii) $172
million
ensuing from Transaction Progress pushed by the restoration in journey from
the COVID-19 pandemic.


                                       44

  Desk of Contents

Product and Skilled Providers Income elevated $24 million, or 29%,
primarily on account of (i) $18 million of elevated administration charges and conferences and
occasions income as more and more relaxed COVID-19 restrictions drove elevated
enterprise conferences, (ii) $8 million in different income throughout different merchandise,
companies and consulting as enterprise volumes returned, and (iii) $3 million
ensuing from Egencia consolidation.

Value of Income

                                                     Three months ended                  Change
                                                       September 30,             favorable/(unfavorable)
(in $ tens of millions)                                     2022           2021             $                 %
Value of income (excluding depreciation and
amortization)                                     $     217      $     127    $        (90)            (72) %


For the three months ended September 30, 2022, price of income elevated by $90
million, or 72%, on account of extra price of income ensuing from Egencia
consolidation and improve in each salaries and advantages bills and different price
of income.

Salaries and advantages bills associated to price of income elevated by $52
million, or 51%, primarily on account of (i) improve within the variety of journey care
staff employed to satisfy the elevated journey demand because the restoration in
enterprise journey from the COVID-19 pandemic continues leading to extra $25
million of salaries and advantages, (ii) $19 million incremental salaries and
advantages ensuing from Egencia consolidation and (iii) a lower in funds of
$7 million obtained from governments in reference to applications designed to
decrease employment losses associated to the COVID-19 pandemic, which have been recorded
as a discount of salaries and advantages bills.

Different price of income elevated by $38 million, or 178%, on account of (i) inclusion of
$18 million of different price of income ensuing from Egencia consolidation and
(ii) $20 million of different income primarily regarding information processing and
service provider {and professional} charges to satisfy the rise in transaction quantity pushed
by the restoration from the COVID-19 pandemic.

Gross sales and Advertising and marketing

                         Three months ended                 Change
                           September 30,            favorable/(unfavorable)
(in $ tens of millions)          2022           2021           $                 %
Gross sales and advertising and marketing    $      81       $   51    $        (30)            (59) %

For the three months ended September 30, 2022, gross sales and advertising and marketing bills
elevated by $30 million, or 59%, on account of extra gross sales and advertising and marketing price
ensuing from Egencia consolidation and improve in each, salaries and advantages
bills and different gross sales and advertising and marketing prices.

Salaries and advantages bills associated to gross sales and advertising and marketing elevated by $21
million, or 49%, primarily on account of (i) $15 million of incremental salaries and
advantages ensuing from Egencia consolidation, (ii) $5 million improve
primarily because of the restoration of full salaries and advantages through the three
months ended September 30, 2022 in comparison with decreased salaries and advantages
ensuing from obligatory wage reductions that have been in place through the three
months ended September 30, 2021, and (iii) a lower in funds of $2 million
obtained from governments in reference to applications designed to attenuate
employment losses associated to the COVID-19 pandemic.

Different gross sales and advertising and marketing bills elevated by $9 million, or 119%, on account of (i)
$5 million of Egencia consolidation and (ii) $4 million in different gross sales and
advertising and marketing spend primarily pushed by advertising and marketing {and professional} companies prices as
enterprise volumes return.

                                       45

  Desk of Contents

Expertise and Content material

                            Three months ended                 Change
                              September 30,            

favorable/(unfavorable)

(in $ tens of millions)             2022           2021           $                
%
Expertise and content material    $      98       $   63    $        (35)            (55) %

For the three months ended September 30, 2022, know-how and content material prices
elevated by $35 million, or 55%, on account of extra know-how and content material prices
ensuing from Egencia consolidation and will increase in each, salaries and
advantages bills and different know-how and content material prices.

Salaries and advantages bills associated to know-how and content material elevated by
$11 million, or 37%, primarily on account of (i) $8 million of incremental salaries and
advantages ensuing from Egencia consolidation, (ii) $3 million improve on account of
the restoration of full salaries and advantages through the three months ended
September 30, 2022 in comparison with decreased salaries and advantages ensuing from the
obligatory wage reductions that have been in place through the three months ended
September 30, 2021 and (iii) a lower in funds of $1 million obtained from
governments in reference to applications designed to attenuate employment losses
associated to the COVID-19 pandemic.

Different know-how and content material prices elevated by $24 million, or 73%, on account of (i)
$15 million improve ensuing from Egencia consolidation and (ii) $9 million
different know-how prices primarily pushed by platform utilization prices because of
quantity will increase, cloud implementation and vendor worth will increase.

Basic and Administrative

                                Three months ended                Change
                                  September 30,          favorable/ (unfavorable)
(in $ tens of millions)                 2022           2021          $               %
Basic and administrative    $      94       $   42    $      (52)           (122) %

For the three months ended September 30, 2022, common and administrative
bills elevated by $52 million, or 122%, on account of extra common and
administrative prices ensuing from Egencia consolidation and will increase in each
salaries and advantages bills and different common and administrative prices.


Salaries and advantages bills associated to common and administrative elevated
by $24 million, or 112%, on account of (i) incremental salaries and advantages of $9
million ensuing from Egencia consolidation and (ii) $15 million improve in
the non-cash fairness plan.

Different common and administrative bills elevated by $28 million, or 134%,
primarily on account of (i) $13 million ensuing from Egencia consolidation and (ii)
$19 million cost regarding a loss contingency in relation to a contingent
occasion that existed as of the Egencia acquisition date, offset primarily by (iii)
decrease integration prices regarding mergers and acquisitions incurred in 2021.

Depreciation and Amortization


For the three months ended September 30, 2022, depreciation and amortization
elevated by $11 million, or 32%, primarily on account of extra depreciation and
amortization ensuing from the Egencia acquisition, together with on account of larger
truthful worth of property and gear and extra different intangible belongings,
acknowledged from buy worth allocation upon the Egencia acquisition.

Curiosity Expense


For the three months ended September 30, 2022, curiosity expense elevated by $13
million, or 94%, primarily on account of larger quantity of excellent time period mortgage debt
and better rates of interest through the three months ended September 30, 2022
in comparison with the three months ended September 30, 2021.

                                       46

Desk of Contents

© Edgar On-line, supply Glimpses

Leave a Reply

Your email address will not be published. Required fields are marked *

Translate »