Amadeus IT Holding, S.A. and Subsidiaries · See the accompanying notes to the consolidated and...

Amadeus IT Holding, S.A. and Subsidiaries

Consolidated and condensed interim financial statements for the six months period ended June 30, 2016, prepared in accordance with International Accounting Standard 34 and review report of independent auditors


Consolidated and condensed interim financial statements for the six months period ended June 30, 2016 Consolidated and condensed statement of financial position (Millions of euros)

See the accompanying notes to the consolidated and condensed interim financial statements

ASSETS

30/06/2016 31/12/2015

Note

UNAUDITED AUDITED

Goodwill 5 2,756.8 2,478.9

Patents, trademarks and licenses 320.2 330.0

Technology and content 2,395.4 1,895.7

Contractual relationships 433.2 386.6

Intangible assets 3,148.8 2,612.3

Land and buildings 153.7 155.6

Data processing hardware and software 204.9 204.6

Other property, plant and equipment 84.6 87.8

Property, plant and equipment 443.2 448.0

Investments in associates and joint ventures 13.8 12.7

Other non-current financial assets 6 16.2 23.6

Non-current derivative financial assets 6 0.9 3.7

Deferred tax assets 14.9 13.2

Other non-current assets 140.9 95.2

Total non-current assets 6,535.5 5,687.6

Trade and other receivables 456.8 352.9

Trade accounts receivable 6 423.1 309.7

Income taxes receivable 33.7 43.2

Other current financial assets 6 14.7 15.1

Current derivative financial assets 6 4.7 14.9

Other current assets 202.3 222.0

Cash and cash equivalents 6 and 14 452.5 711.7

Total current assets 1,131.0 1,316.6

TOTAL ASSETS 7,666.5 7,004.2


Consolidated and condensed interim financial statements for the six months period ended June 30, 2016 Consolidated and condensed statement of financial position (Millions of euros)


EQUITY AND LIABILITIES

30/06/2016 31/12/2015

Note

UNAUDITED AUDITED

Share capital 4.4 4.4

Additional paid-in capital 623.3 615.2

Reserves 1,065.2 992.2

Treasury shares (53.4) (29.3)

Retained earnings 415.1 (6.4)

Profit for the period attributable to owners of the parent 450.0 683.9

Total capital and reserves 2,504.6 2,260.0

Cash flow hedges (12.0) 7.2

Exchange differences on translation of foreign operations 3.7 24.5

Unrealised actuarial gains and losses (20.8) (20.8)

Unrealised gains reserve (29.1) 10.9

Equity attributable to owners of the parent 2,475.5 2,270.9

Non-controlling interests 27.3 26.6

Equity 8 2,502.8 2,297.5

Non-current provisions 28.8 27.1

Non-current financial liabilities 1,782.6 1,318.8

Non-current debt 6 and 9 1,759.2 1,289.1

Non-current derivative financial liabilities 6 6.3 12.2

Other non-current financial liabilities 6 17.1 17.5

Deferred tax liabilities 744.2 725.3

Deferred revenue non-current 321.7 310.2

Other non-current liabilities 129.8 125.8

Total non-current liabilities 3,007.1 2,507.2

Current provisions 17.9 10.9

Current financial liabilities 1,070.8 1,200.6

Current debt 6 and 9 866.0 1,033.8

Other current financial liabilities 6 9.2 15.6

Dividend payable 6 and 8 189.7 148.4

Current derivative financial liabilities 6 5.9 2.8

Trade and other payables 714.7 623.5

Trade accounts payable 6 630.6 601.9

Income taxes payable 84.1 21.6

Deferred revenue current 127.0 119.2

Other current liabilities 226.2 245.3

Total current liabilities

2,156.6 2,199.5

TOTAL EQUITY AND LIABILITIES

7,666.5 7,004.2


Consolidated and condensed interim financial statements for the six months period ended June 30, 2016 Consolidated and condensed statement of comprehensive income (Millions of euros)


Continuing operations Note 30/06/2016 30/06/2015

UNAUDITED UNAUDITED

Revenue 2,275.5 1,976.8 Cost of revenue (580.1) (526.6) Personnel and related expenses (636.4) (549.6) Depreciation and amortization (232.6) (192.9) Other operating expenses (146.6) (116.6)

Operating income 679.8 591.1 Financial income 1.0 0.7 Interest expense 13 (36.6) (31.8) Other financial expenses 13 (1.7) (1.8) Exchange gains (7.3) 7.5

Financial expense, net (44.6) (25.4) Other income / (expense) 2.1 0.3

Profit before income taxes 637.3 565.9 Income taxes 11 (188.0) (175.4)

Profit after taxes 449.3 390.5 Share in profit of associates and joint ventures accounted for using the equity method

1.7 1.1

PROFIT FOR THE PERIOD 451.0 391.5

Profit for the period attributable to: Non-controlling interests 1.0 1.0 Owners of the parent 450.0 390.5

Earnings per share basic and diluted [in Euros] 12 1.03 0.89 Items that will not be reclassified to profit and loss: Actuarial gains and losses (0.1) - Items that will be reclassified to profit or loss when specific conditions are met:

Cash flow hedges (19.2) 2.4 Exchange differences on translation of foreign operations (20.8) 30.4

(40.0) 32.8

Other comprehensive expense for the period, net of tax (40.0) 32.8

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 411.0 424.3

Total comprehensive income for the period attributable to: Non-controlling interests 1.0 1.0 Owners of the parent 410.0 423.3


Consolidated and condensed interim financial statements for the six months period ended June 30, 2016 Consolidated and condensed statement of changes in equity (Millions of euros)


Share capital

Additional paid-in capital,

reserves and

retained earnings

Treasury shares

Profit for the year

attributable to owners of the

parent

Unrealized gains

reserves

Non-controlling interests Total

UNAUDITED

Balance at December 31, 2014 4.5 1,585.9 (349.3) 631.5 (30.6) 25.4 1,867.4

Total Comprehensive income for the period - - - 390.5 32.8 1.0 424.3

Dividend payable - (165.9) - - - - (165.9)

Treasury shares acquisition - - (1.3) - - - (1.3)

Treasury shares disposal - (1.3) 1.3 - - - -

Recognition of share-based payment - 6.1 - - - - 6.1

Transfer to retained earnings and reserves - 631.5 - (631.5) - - -

Other changes in equity - 0.8 - - - (0.3) 0.5

Balance at June 30, 2015 4.5 2,057.1 (349.3) 390.5 2.2 26.1 2,131.1

Balance at December 31, 2015 4.4 1,601.0 (29.3) 683.9 10.9 26.6 2,297.5

Total Comprehensive income for the period

- - - 450.0 (40.0) 1.0 411.0

Dividend payable (note 8) - (189.7) - - - - (189.7)

Treasury shares acquisition (note 8) - - (24.1) - - - (24.1)

Treasury shares disposal (note 8) - - - - - - -

Recognition of share-based payment (note 8)

- 8.2 - - - - 8.2

De-recognition of non-controlling interests

- - - - - (0.3) (0.3)

Transfer to retained earnings and reserves

- 683.9 - (683.9) - - -

Other changes in equity - 0.2 - - - - 0.2

Balance at June 30, 2016 4.4 2,103.6 (53.4) 450.0 (29.1) 27.3 2,502.8


Consolidated and condensed interim financial statements for the six months period ended June 30, 2016 Consolidated and condensed statement of cash flows (Millions of euros)


Note 30/06/2016 30/06/2015

UNAUDITED UNAUDITED Cash flows from operating activities Operating income 679.8 591.1 Adjustments for: 227.3 187.7

Depreciation and amortization 232.6 192.9 Depreciation and amortization included in capitalization (5.3) (5.2)

Changes in working capital (72.3) (76.7) Taxes paid (102.4) (100.9)

Net cash provided from operating activities 732.4 601.2

Cash flows from investing activities

Subsidiaries and associates 7 (767.5) (12.8) Property, plant and equipment and intangible assets (288.4) (251.7) Other financial assets (2.2) 0.1

Cash paid for investments (1,058.1) (264.4) Property, plant and equipment and intangible assets 0.6 0.1 Other financial assets 0.3 2.1

Cash received from disposals of assets 0.9 2.2 Dividend received 0.6 0.7 Interest received 0.1 0.1 Other cash received / (used) from investing activities (2.5) (3.7)

Other cash flows from investing activities (1.8) (2.9)

Net cash used in investing activities (1,059.0) (265.1)

Cash flows from financing activities Treasury shares acquisition 8 (24.1) (290.0) Acquisition of non-controlling interest in subsidiary (0.4) -

Proceeds 646.1 495.8 Repayments (383.1) (373.8)

Financial liabilities received 263.0 122.0 Dividends paid and cash paid to holders of equity instruments 8 (148.4) (141.3) Interest paid (23.2) (7.6)

Net cash received / (used) in financing activities 66.9 (316.9)

Effect of exchange rate changes on cash and cash equivalents - 1.5

Net increase / (decrease) in cash and cash equivalents (259.7) 20.7

Cash and cash equivalents net at the beginning of period 711.6 372.7

Cash and cash equivalents net at the end of period 14 451.9 393.4


Consolidated and condensed interim financial statements for the six months period ended June 30, 2016 Notes (Millions of euros)

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Index

1 GENERAL INFORMATION AND ACTIVITY ........................................................................... 2

2 BASIS OF PRESENTATION AND COMPARABILITY OF THE INFORMATION ............................... 3

3 ACCOUNTING POLICIES ................................................................................................. 6

4 SEGMENT REPORTING .................................................................................................... 7

5 GOODWILL ................................................................................................................... 9

6 FINANCIAL ASSETS AND LIABILITIES AND FAIR VALUE MEASUREMENTS ........................... 10

7 BUSINESS COMBINATIONS AND OTHER EQUITY INVESTMENTS ........................................ 12

8 EQUITY ...................................................................................................................... 15

9 CURRENT AND NON-CURRENT DEBT .............................................................................. 17

10 RELATED PARTIES BALANCES AND TRANSACTIONS ......................................................... 19

11 TAXATION ................................................................................................................... 21

12 EARNINGS PER SHARE ................................................................................................. 21

13 ADDITIONAL INFORMATION ON THE CONSOLIDATED AND CONDENSED STATEMENT OF COMPREHENSIVE INCOME .................................................................................................... 22

14 ADDITIONAL CONSOLIDATED STATEMENT OF CASH FLOWS RELATED DISCLOSURE ............ 23

15 SUBSEQUENT EVENTS .................................................................................................. 24



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1 GENERAL INFORMATION AND ACTIVITY

Amadeus IT Holding, S.A. (hereinafter “the Company”), was incorporated on February 4, 2005, and registered at the Companies Register of Madrid. Its registered office is in Madrid, Calle Salvador de Madariaga, 1.

On March 11, 2016, the Board of Directors of Amadeus IT Holding, S.A. and that of Amadeus IT Group, S.A. approved a plan in relation to the merger of both companies (being Amadeus IT Holding, S.A. the surviving entity). After the approval of the merger by absorption by the Ordinary Shareholders’ Meeting of both Amadeus IT Holding, S.A. and Amadeus IT Group, S.A. in June 2016 and having fulfilled the remaining legal formalities, the merger public deed is expected to be registered with the Commercial Registry of Madrid on August 1, 2016. Upon registration Amadeus IT Group, S.A. will be legally dissolved and Amadeus IT Holding S.A. will adopt the name of Amadeus IT Group, S.A.

The Company’s corporate object, as set out in article 2 of its by-laws, is the following:

a) transfer of data from and/or through computer reservation systems, including offers, reservations, tariffs, transport tickets and/or similar, as well as any other services, including information technology services, all of them mainly related to the transport and tourism industry, provision of computer services and data processing systems, management and consultancy related to information systems;

b) provision of services related to the supply and distribution of any type of product through computer means, including manufacture, sale and distribution of software, hardware and accessories of any type;

c) organization and participation as partner or shareholder in associations, companies, entities and enterprises active in the development, marketing, commercialisation and distribution of services and products through computer reservation systems for, mainly, the transport or tourism industry, in any of its forms, in any country worldwide, as well as the subscription, administration, sale, assignment, disposal or transfer of participations, shares or interests in other companies or entities;

d) preparation of any type of economic, financial and commercial studies, as well as reports on real estate issues, including those related to management, administration, acquisition, merger and corporate concentration, as well as the provision of services related to the administration and processing of documentation; and

e) acting as a holding company, for which purpose it may (i) incorporate or take holdings in other companies, as a partner or shareholder, whatever their nature or object, including associations and partnerships, by subscribing to or acquiring and holding shares or stock, without impinging upon the activities of collective investment schemes, securities dealers and brokers, or other companies governed by special laws, as well as (ii) establishing its objectives, strategies and priorities, coordinating subsidiaries’ activities, defining financial objectives, controlling financial conduct and effectiveness and, in general, managing and controlling them.

The direct or, when applicable, indirect performance of all business activities that are reserved by Spanish law is excluded. If professional titles, prior administrative authorizations, entries with public registers or other requirements are required by legal dispositions to perform an activity embraced in the corporate object, such activity shall not commence until the required professional or administrative requirements have been fulfilled.



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The by-laws and other public information of the Company can be consulted on the website of the Company (www.amadeus.com).

Amadeus IT Holding, S.A. is the parent company of the Amadeus Group (“the Group”). The Group is a leading transaction processor for the global travel and tourism industry, providing advanced technology solutions to our travel provider and travel agency customers worldwide. Amadeus acts as an international network providing comprehensive real-time search, pricing, booking, ticketing and other processing solutions to travel providers and travel agencies through our Distribution segment, and we offer other travel providers (today, principally airlines) an extensive portfolio of technology solutions which automate certain mission-critical business processes, such as reservations, inventory management and departure control, through our IT Solutions segment.

Customer groups include providers of travel services and products such as airlines (network, domestic, low-cost and charter carriers), hotels (independent properties and chains), tour operators (mainstream, specialist and vertically integrated players), insurance companies, road and sea transport companies (car rental companies, railway companies, ferry lines, cruise lines), travel sellers and brokers (offline and online travel agencies) and travel buyers (corporations and travelers).

The Company’s shares are traded on the Spanish electronic trading system (“Continuous Market”) on the four Spanish Stock Exchanges (Madrid, Barcelona, Bilbao and Valencia). The Company’s shares form part of the Ibex 35 index [AMS].

2 BASIS OF PRESENTATION AND COMPARABILITY OF THE INFORMATION

2.1 Basis of presentation

2.1.1 General information

The accompanying consolidated and condensed interim financial statements for the six months period ended June 30, 2016 (“interim financial statements”), have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (“IFRS-EU”), in particular with International Accounting Standard 34: Interim Financial Reporting (IAS 34), and with the requirements of the Royal Decree 1362/2007. The disclosure requirements of IAS 34 are based on the assumption that the reader of the interim financial statements is doing so together with the most recent consolidated annual accounts. As a consequence, the interim financial statements do not include all of the information and disclosures that would be required by IFRS-EU for complete consolidated annual accounts. The most recent consolidated annual accounts were authorized for issue by the Board of Directors of the Company on February 25, 2016, and approved on the Ordinary General Shareholders’ Meeting on June 24, 2016.

The issue of these interim financial statements was authorized by the Board of Directors of the Company on July 29, 2016.

The presentation currency of the Group is the Euro. The consolidated and condensed statement of financial position is presented with a difference between current and non-current items, and the consolidated and condensed statement of comprehensive income is presented by nature of expense. The presentation by nature highlights better the different components of financial performance of the Group and enhances predictability of



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the business. The Group decided to prepare the consolidated and condensed statement of cash-flows by applying the indirect method.

The Group presents negative working capital in the six months period ended June 30, 2016, and for the year ended December 31, 2015, which given the industry in which the Group operates and its financial structure, is not an unusual circumstance, and does not present an impediment for the normal development of its business.

2.1.2 Use of estimates

Use of estimates and assumptions, as determined by management, is required in the preparation of the interim financial statements in conformity with IFRS-EU. These estimates and assumptions affect the carrying amount of assets and liabilities. Those with a significant impact in the interim financial statements are the same as those detailed in our consolidated annual accounts for the year ended December 31, 2015:

¾ Estimated recoverable amounts used for impairment testing purposes; ¾ Provisions; ¾ Pension and post–retirement benefits in accordance with IAS 34 have been calculated by using the

actuarially determined pension cost at the end of the prior financial year adjusted for significant events if any;

¾ Income tax liabilities, in accordance with IAS 34, have been calculated based on the estimated average annual effective income tax rate;

¾ Cancellation reserve; ¾ Doubtful debt provision; ¾ Share-based payments; and ¾ Business combinations.

The estimates and assumptions are based on the information available at the date of issuance of the consolidated and condensed interim financial statements, past experience and other factors which are believed to be reasonable at that time. The actual results might differ from the estimates.

2.2 Comparison of information

For comparison purposes, the consolidated and condensed statement of comprehensive income, the consolidated and condensed statement of changes in equity and the consolidated and condensed statement of cash flows as of June 30, 2016 are presented with information relating to the period of six months ended on June 30, 2015 and the consolidated and condensed statement of financial position is presented with information related to the year ended on December 31, 2015.

Except where indicated otherwise, the figures of the accompanying consolidated and condensed interim financial statements for the six months period ended June 30, 2016, are expressed in millions of euros. The comparative information has been converted accordingly.

The presentation and classification of certain line items in the consolidated and condensed interim financial statements, and in the notes to the consolidated and condensed interim financial statements have been revised and comparative information has been reclassified accordingly.



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2.3 Consolidation scope

On January 26, 2016, the Group has acquired, indirectly through its subsidiary Amadeus IT Group, S.A., 100% of the ownership interest of Navitaire, LLC and certain assets and assumed certain liabilities primarily related to Navitaire business, including 100% of the ownership interest of Navitaire Philippines Inc. (Navitaire).

On April 15, 2016, the Group has acquired, indirectly through its subsidiary Amadeus IT Group, S.A., 95% additional interest of the share capital of Amadeus Slovenija, d.o.o. (“Slovenia”). As of June 30, 2016, the Group owned 100% of the shares of this entity.

On April 15, 2016, the Group has acquired, indirectly through its subsidiary Amadeus IT Group, S.A., 51% of the voting rights of NMC d.o.o. Skopje (“Macedonia”).

On April 15, 2016, the Group has acquired, indirectly through its subsidiary Amadeus IT Group, S.A., 100% of the voting rights of NMC Tirana sh.p.k. (“Albania”).

2.4 Seasonality of interim results

Our business and operations are linked to the worldwide travel industry. Our transactional business model means that our financial performance is driven by travel volumes (air passengers, air and non-air bookings on travel agencies, etc.), which are subject to a certain degree of seasonality during the year.

In addition, the different factors affecting the travel industry, such as the macro-economic environment (air traffic presents a strong correlation to GDP evolution) and other external factors that may impact travel volumes (geo-political events, national holidays, natural disasters, etc.) may have a different timing in different years and / or are unpredictable. Therefore, the figures for the six-month period ended June 30, 2016, are not fully representative of the performance for the full year.

In particular, our revenue in the Distribution segment is influenced by the seasonality of the air booking volumes done through travel agencies, which are, as a general rule, lower in the second half of the year. Additionally, our volumes are influenced by the timing of the contracts signed with our travel agencies, as well as their performance throughout the year.

In our IT Solutions segment, revenue is influenced by the seasonality of passengers boarded (PB), which are usually higher during the second half of the year when important holiday periods take place. However, PB volume growth is significantly impacted in any particular period, by the implementation of new airlines to our Altéa platform. The schedule of migrations has no specific seasonality and is determined by the progress of each of the processes not only on the Amadeus front but also on the airline’s front.

Overall, the percentage variation in our revenue tends to be less pronounced than the variations in our air travel agency bookings or passengers boarded, given the non-transactional revenue part of our Distribution and IT Solutions segments.

Our reported growth in 2016 will also be affected by the consolidation of the following acquisitions, made during 2015 and 2016:

¾ Air-Transport IT Services, Inc. (Air IT), a US-based provider of airport technology solutions acquired on April, 21 2015.

¾ Itesso B.V. and subsidiaries, a Netherlands-based provider of cloud-based property management systems, acquired on July 21, 2015.



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¾ Hotel Systems Pro LLC, a US-based provider of sales, catering and maintenance software to the hospitality industry, acquired on July 31, 2015.

¾ Pyton Communication services B.V. and subsidiary, a Netherlands-based leisure travel technology specialist, acquired on August 21, 2015.

¾ Navitaire, a US-based provider of technology and business solutions to the airline industry, acquired on January 26, 2016.

¾ Slovenia, Albania and Macedonia, operating in Distribution space, acquired on April 15, 2016.

Finally, the current macroeconomic outlook remains fragile: the International Monetary Fund reviewed its yearly global growth projection downwards to 3.2% and emphasized the increased uncertainty and higher risks of weaker growth in its World Economic Outlook from April 2016 (see further detail in “Risks related to the current macro-economic environment” section).

Based on this consideration, we would expect a softer second half of the year in revenue vs. the first half of the year.

3 ACCOUNTING POLICIES

The accounting policies adopted in the preparation of the consolidated and condensed interim financial statements are consistent with those followed in the preparation of the consolidated annual accounts for the year ended December, 31 2015.

The following new and revised standards and interpretations adopted by the European Union, have become effective after the date of the most recent consolidated annual accounts on December 31, 2015, and are applicable to both the consolidated and condensed interim financial statements as of June 30, 2016, and to our next consolidated annual accounts on December 31, 2016:

¾ “Amendments to IFRS 11: Accounting for Acquisitions of Interests in Joint Operations”. The amendments provide guidance on how to account for the acquisition of an interest in a joint operation in which the activities constitute a business as defined in IFRS 3 “Business Combinations”. In addition, the acquirer shall disclose the information required by IFRS 3 and others IFRSs for business combinations. The amendments are effective for annual periods beginning on or after January 1, 2016, with earlier application permitted.

¾ “Amendments to IAS 1: Disclosure Initiative”. The amendments provide guidance on how to apply the concept of materiality in practice. The amendments are effective for annual periods beginning on or after, January 1, 2016 with earlier application permitted.

¾ “Amendments to IAS 16 and IAS 38: Clarification of Acceptable Methods of Depreciation and Amortization”. The amendments address the concerns regarding the use of a revenue-based method for depreciating/amortizing an asset. The amendments are effective for annual periods beginning on or after January 1, 2016 with earlier application permitted.

¾ “Amendments to IAS 16 and IAS 41: Agriculture: Bearer Plants”. The amendments are effective for annual periods beginning on or after January 1, 2016. These amendments are not applicable to the Group’s operations.

¾ “Amendments to IAS 19: Defined Benefit Plan: Employee Contributions”. The amendments clarify how an entity should account for contributions made by employees or third parties that are linked to services to defined benefit plans, based on whether those contributions are dependent on the number of years of service provided by the employee. The amendments are effective for annual



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periods beginning on or after February 1, 2015, with earlier application permitted, and require retrospective application.

¾ “Amendments to IAS 27: Equity Method in Separate Financial Statements”. The amendments focus on separate financial statements and allow the use of the equity method in such statements. The amendments are effective for annual periods beginning on or after January 1, 2016, with earlier application permitted.

¾ “Annual Improvements to IFRS 2010-2012 Cycle”. The annual improvements are effective for annual periods beginning on or after February 1, 2015.

¾ “Annual Improvements to IFRS 2012–2014 Cycle”. The annual improvements are effective for annual periods beginning on or after January 1, 2016.

The adoption of the amendments and new standards as detailed above did not have any material effect on the consolidated and condensed interim financial statements of the Group.

The Group has not early adopted any other standard, interpretation or amendment that has been issued but it is not yet effective.

4 SEGMENT REPORTING

The segment information has been prepared in accordance with the “management approach”, which requires presentation of the segments on the basis of the internal reports about components of the entity which are regularly reviewed by the chief operating decision maker in order to allocate resources to a segment and to assess its performance.

The Group is organized into two operating segments on the basis of the different services offered by the Group:

¾ Distribution, where the primary offering is our GDS platform. It generates revenues mainly from booking fees the Group charges to travel providers for bookings made, as well as other non – booking revenues; and

¾ IT Solutions, where we offer a portfolio of technology solutions (primarily Altéa PSS) that automate mission-critical processes for travel providers. This segment generates revenues from the transactions processed in our platform, as well as from other non-transactional services.

The operating segments identified, the composition of those operating segments, and the accounting policies used in the measurement of the operating segments profit or loss, are consistent with those used and applied in the year ended December 31, 2015.

The information regarding the Group’s operating segments and the reconciliation of the measure of profit or loss (Contribution) to the consolidated and condensed statement of comprehensive income as of June 30, 2016, and 2015, are set forth in the table below:

30/06/2016 30/06/2015

Distribution IT Solutions Total Distribution IT Solutions Total

Revenue 1,520.5 754.9 2,275.5 1,415.1 561.7 1,976.8

Contribution 677.2 499.3 1,176.5 632.2 367.0 999.2



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The main reconciling items correspond to:

30/06/2016 30/06/2015

Revenue 2,275.5 1,976.8

Contribution 1,176.5 999.2

Net indirect cost (1) (269.4) (220.4)

Depreciation and amortization (2) (227.3) (187.7)

Operating income 679.8 591.1

(1) Principally comprises indirect costs that are shared between the Distribution and IT Solutions operating segments, such as: (i) costs associated with our technology systems, including our processing of multiple transactions, and (ii) corporate support, including various corporate functions such as finance, legal, human resources, internal information systems, etc. Additionally it includes capitalization of expenses and incentives received from the French government in respect of certain IT Solutions / Distribution product development activities in Nice and which have not been allocated to an operating segment.

(2) Includes the capitalization of certain depreciation and amortization costs in the amount of €5.3 million and €5.2 million, in the period ended June 30, 2016 and 2015, respectively.

The Group operates in the travel industry and, accordingly, events that significantly affect the industry could also affect the Group’s operations and financial position.

Amadeus IT Group, S.A. is based in Spain and is the counterparty to all key contractual arrangements with airlines and other travel providers for Distribution and IT Solutions operating segments.

The table below represents a good measure of how the revenue of the Group is geographically distributed based on, where the travel agent in which bookings are reserved is located (for the Distribution operating segment), and attending to where the airline receiving the services is located (for the IT Solutions operating segment):

30/06/2016 30/06/2015

Western Europe (1) 976.5 868.5

Central, Eastern and Southern Europe 149.7 146.2

Middle East and Africa 272.7 239.4

North America 346.5 217.6

Latin America 118.3 152.2

Asia & Pacific 411.7 352.9

Revenue 2,275.5 1,976.8

(1) Includes Spain revenue by an amount of €111.6 million and €85.2 million for the periods ended June 30, 2016 and 2015, respectively.



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5 GOODWILL

The reconciliation of the carrying amount of goodwill for the period ended June 30, 2016, is set forth in the table below:

30/06/2016

Carrying amount at the beginning of the period 2,478.9

Additions due to acquisitions of subsidiaries (note 7) 313.9

Transfers (27.6)

Exchange rate adjustments (8.4)

Carrying amount at the end of the period 2,756.8

For the period ended June 30, 2016, the “Additions due to acquisitions of subsidiaries” caption reflects the acquisitions of Navitaire, Slovenia, Macedonia and Albania, as detailed in notes 2 and 7.

The transfers for the period ended June 30, 2016, mainly related to the completion of the purchase price allocation exercise for the business combination with Pyton Communications Services, B.V. and subsidiary and Itesso, B.V. and subsidiaries.

The “Exchange rate adjustments” for the period ended June 30, 2016, mainly relates to the USD/EUR evolution.

The initial allocation of goodwill acquired in the business combinations that have occurred during the six months period ended June 30, 2016, has not been completed as of the date of issuance of the accompanying consolidated and condensed interim financial statements, because the Group has used provisional values in the initial accounting of those business combinations. The amount of excess purchase price that has not been allocated at the end of the reporting period amounts to €313.9 million.

The initial allocation of goodwill will be completed once the adjustments to the provisional values of the business combinations are completed within the measurement period.



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6 FINANCIAL ASSETS AND LIABILITIES AND FAIR VALUE MEASUREMENTS

The Group’s classification of financial assets and liabilities as of June 30, 2016, is set forth in the table below:

Held for trading (1)

Available for sale

Loans and Receivables

Amortized Cost

Hedges (2) Total

Other non-current financial assets - 7.7 8.5 - - 16.2 Non-current derivative financial assets - - - - 0.9 0.9 Total non-current financial assets - 7.7 8.5 - 0.9 17.1

Trade accounts receivable - - 423.1 - - 423.1 Other current financial assets - - 14.7 - - 14.7 Current derivative financial assets - - - - 4.7 4.7 Cash and cash equivalents - - 452.5 - - 452.5 Total current financial assets - - 890.3 - 4.7 895.0

Non-current debt - - - 1,759.2 - 1,759.2 Non-current derivative financial liabilities - - - - 6.3 6.3 Other non-current financial liabilities - - - 17.1 - 17.1 Total non-current financial liabilities - - - 1,776.3 6.3 1,782.6

Current debt - - - 866.0 - 866.0 Other current financial liabilities - - - 9.2 - 9.2 Dividend payable - - - 189.7 - 189.7 Current derivative financial liabilities - - - - 5.9 5.9 Trade accounts payable - - - 630.6 - 630.6 Total current financial liabilities - - - 1,695.5 5.9 1,701.4

(1) Includes derivatives that are not designated as effective hedging instruments according to IAS 39

(2) Includes derivatives that are designated as effective according to IAS 39



Page 11

6.1 Fair value measurements disclosures

The assets and liabilities that are measured at fair value on a recurring or non-recurring basis in the consolidated and condensed statement of financial position are set forth in the table below. These fair value measurements are categorized into different levels of fair value hierarchy based on the inputs to valuation techniques used.

30/06/2016

Level 2

Foreign currency forward 0.9

Non-current derivative financial assets 0.9


Current derivative financial assets 4.7


Non-current derivative financial liabilities 6.3


Current derivative financial liabilities 5.9

The fair values of financial assets or liabilities traded on active liquid markets are fixed according to the prices quoted in those markets. If the market for a financial asset is not active or no market price is available, fair values are determined in accordance with generally accepted pricing valuation techniques which include discounted cash flows, standard valuation models based on market parameters, dealer quotes and use of comparable arm’s length transactions.

The Group’s foreign currency forward contracts are measured using quoted forward exchange rates. Interest rate swaps are measured discounting the cash flows estimated based on the applicable interest rate curves derived from quoted interest rates. As such, the financial assets or liabilities in our interim financial statements resulting from these derivative financial instruments that are measured at fair value, would fall within the level 2 category of the fair value hierarchy. Fair value reflects the credit risk of the instrument and include adjustments to take into account the credit risk of the Group entity and counterparty when appropriate.

The Group recognises transfers between levels of fair value hierarchy as of the end of the reporting period in which the transfer has occurred. There were no transfers between levels of fair value hierarchy during the six months period ended June 30, 2016.

The financial assets in our consolidated statement of financial position that are classified as available for sale are other investments in equity instruments that do not have a quoted market price in an active market, and are measured at cost if their fair value cannot be measured reliably.



Page 12

The Group estimates that the carrying amount of its financial assets and liabilities is a reasonable approximation of their fair value as at June 30, 2016, except for the following financial liabilities:

30/06/2016

Carrying amount

Fair Value

% of face value

Bonds 1,650.0 1,679.9 101.8%

European Investment Bank unsecured senior loan 318.8 344.6 108.1%

The fair value measurement of the bonds and the European Investment Bank unsecured senior loan are categorised within the level 1 and level 2 in the fair value hierarchy, respectively.

7 BUSINESS COMBINATIONS AND OTHER EQUITY INVESTMENTS

The main impacts of these transactions on the consolidated statement of financial position as of June 30, 2016, are set forth in the table below:

30/06/2016

Cash paid 767.6

Contingent consideration (0.5)

Deferred consideration 0.3

Non-controlling interests 0.2

Recognized amounts of identifiable assets acquired and liabilities assumed (453.7)

Net excess purchase price from current transactions 313.9

Excess purchase price from current transactions (note 5) 313.9

Allocation of fair value of net assets acquired (note 5) (27.6)

Net additions to Goodwill at acquisition date 286.3

The reconciliation between the cash paid for current acquisitions and the net cash invested in subsidiaries as of June 30, 2016, is set forth in the table below:

30/06/2016

Cash paid for current transactions 767.6

Cash paid on deferred consideration from prior period 2.3

Cash acquired as a result of current acquisitions (2.4)

Net cash invested in subsidiaries 767.5

The acquisition-related costs recognized as an expense under the “Other operating expenses” caption of the consolidated statement of comprehensive income for the period ended June 30, 2016, are set forth in the table below:

30/06/2016

Navitaire

Albania, Macedonia &

Slovenia

Acquisition-related costs

4.8 0.1



Page 13

The amount of revenue and profit that the business combinations have contributed to the group since acquisition and is included in the consolidated statement of comprehensive income for the period ended June 30, 2016, is set forth in the table below:

Navitaire

Albania, Macedonia & Slovenia

Revenue 81.7 0.1

Profit for the period 10.3 (0.2)

If the business combinations had been consolidated since January 1, 2016, the pro-forma Group’s consolidated statement of comprehensive income for the reporting period would have showed additional revenue and profit/(loss) for the period as set forth in the table below:

Amadeus Pro-forma Navitaire

Albania, Macedonia &

Slovenia

Revenue 2,282.3 6.8 0.1

Profit for the period 451.1 0.2 (0.1)

These amounts are calculated without adjusting the results to reflect additional depreciation and amortization that would have been charged assuming a fair value adjustment to intangible assets, interest expense for the debt levels of the Group after the business combinations, other homogenization adjustments, and any related tax effects.

7.1 Business combinations

7.1.1 Navitaire

On January 26, 2016, after receiving all the necessary regulatory approvals, the Group indirectly through its subsidiary Amadeus IT Group, S.A., acquired 100% of the ownership interest of Navitaire, LLC and certain assets and assumed certain liabilities primarily related to the Navitaire business, including 100% of the ownership interest of Navitaire Philippines Inc. (“Navitaire”). The transaction was structured as a carve-out from the previous owner as the Navitaire business was embedded within the Accenture group. About 590 employees, including the senior management Team has joined Amadeus.

The amounts provided above correspond to the initial accounting of the acquisition of Navitaire, which as of the date of issue of our consolidated and condensed interim financial statements is still provisional. The Group will determine the acquisition-date fair value of identifiable assets acquired and the liabilities assumed, as well as any other necessary adjustment to the provisional amounts, over the measurement period as information is obtained. The Group expects that the goodwill will be deductible for income tax purposes.



Page 14

Navitaire

Carrying amounts at

acquisition date

Fair Value adjustments to purchase value

Fair value of net assets acquired

Goodwill 6.9 (6.9) -

Intangible assets 434.6 - 434.6

Property, plant and equipment 0.3 - 0.3

Other non-current assets 0.2 - 0.2

Total non-current assets 442.0 (6.9) 435.1

Trade accounts receivable 38.0 - 38.0

Other current assets 0.3 - 0.3

Cash and cash equivalents 1.6 - 1.6

Total current assets 39.9 - 39.9

Deferred tax liabilities - - -

Deferred revenue non-current 11.3 -

11.3

Other non-current liabilities 3.7 -

3.7

Total non-current liabilities 15.0 - 15.0

Current debt - - -

Trade accounts payables - - -

Deferred revenue current 2.8 - 2.8

Other current financial liabilities 1.6 - 1.6

Other current liabilities 3.8 - 3.8

Total current liabilities 8.2 - 8.2

Net identifiable assets acquired 458.7 (6.9) 451.8

Consideration transferred 766.5

766.5

Goodwill resulting from the acquisition 307.8

314.7

The fair value of trade receivables acquired has been estimated as set forth in the table below:

Navitaire

Gross carrying amount 38.0

Allowance for doubtful accounts -

Fair value of receivables 38.0



Page 15

8 EQUITY

8.1 Share Capital

As of June 30, 2016, the Company share capital amounts to €4.4 million divided into 438,822,506 ordinary shares of a single series with a nominal value of EUR 0.01 per share. All shares are fully subscribed and paid.

The Company’s shares are traded on the Spanish electronic trading system (“Continuous Market”) on the four Spanish Stock Exchanges (Madrid, Barcelona, Bilbao and Valencia). The Company’s shares form part of the Ibex 35 index [AMS].

As of June 30, 2016, the Company's shares are held as set forth in the table below:

Shareholder 30/06/2016 % of total voting rights at 30/06/2016

Free float 435,602,899 99.27%

Treasury shares (1) 2,813,953 0.64%

Board Members 405,654 0.09%

Total 438,822,506 100%

(1) Voting rights suspended as the shares involved are treasury shares.

On March 11, 2016, the Board of Directors of Amadeus IT Holding, S.A. and that of Amadeus IT Group, S.A. approved a plan in relation to the merger of both companies (being Amadeus IT Holding, S.A. the surviving entity), subject to the approval by their respective General Shareholders’ Meetings, which took place on June 23 and 24, 2016, approving the merger. The exchange ratio for the shares of the companies participating in the merger, determined on the basis of a market valuation of the equity of both companies, will be 1 share of Amadeus IT Holding, S.A. for every 11.31 shares of Amadeus IT Group, S.A. This exchange ratio is driven by the different number of shares of the two companies and a discount for illiquidity of Amadeus IT Group, S.A. shares. The acquisition of treasury shares by Amadeus IT Holding, S.A. to cover the exchange ratio started on April 7, 2016 and finalized on May 17, 2016, achieving the maximum number of shares planned. The corresponding 393,748 shares form part of the 2016 weighted average treasury shares. Upon registration of the merger public deed with the Commercial Registry of Madrid and the fulfilment of legal formalities, those shares will be delivered in exchange of the Amadeus IT Group, S.A. shares in accordance with the exchange ratio mentioned above.

8.2 Additional paid-in capital, reserves and retained earnings

On June 24, 2016, the General Shareholders’ Meeting agreed to distribute a gross dividend of EUR 0.775 per ordinary share with the right to take part in the distribution on payment date. An interim dividend of EUR 0.34 per share, amounting to EUR 148,446,581, was paid in full on January 28, 2016, being therefore still pending of payment a complementary dividend of EUR 0.435 per share. The complementary dividend amounts to EUR 189,663,721 (Treasury shares excluded) and is presented as of June 30, 2016, as a deduction from “Equity” and under the “Dividend payable” caption in the consolidated and condensed statement of financial position. The complementary dividend that has been paid on July 28, 2016, amounts to EUR 190,086,949.

The changes in the balance of the “Additional paid in capital” caption include the recognition of the share-based payments considered as equity-settled. The fair value of services received during the six months period ended



Page 16

June 30, 2016 and 2015, as consideration for the equity instruments granted, amount to €8.2 million and €6.1 million, respectively.

8.3 Treasury shares

The reconciliation of the carrying amounts as of June 30, 2016, is set forth in the table below:

Treasury Shares Millions of euros

Balance at December 31, 2015 2,214,916 29.3

Acquisition 615,302 24.1

Retirement (16,265) (0.0)

Balance at June 30, 2016 2,813,953 53.4

During the period, the Group acquired 615,302 shares from which 393,748 were acquired under the Joint plan for the merger by absorption of Amadeus IT Group, S.A. into Amadeus IT Holding, S.A. (the “Merger Plan").

The historical cost for treasury shares retired (primarily for the settlement of the PSP, RSP and Share Match Plan) is deducted from the “Additional paid-in capital” caption of the consolidated and condensed statement of financial position.



Page 17

9 CURRENT AND NON-CURRENT DEBT

The breakdown of carrying amounts of debt with financial institutions as of June 30, 2016, and December 31, 2015, is set forth below:

30/06/2016 31/12/2015

Bonds 900.0 900.0

Deferred financing fees on Bonds (7.1) (8.1)

European Investment Bank 283.8 300.2

Deferred financing fees on European Investment Bank (0.3) (0.3)

Term Loan Facility 500.0 -

Deferred financing fees on loan facilities (1.8) -

Other debt with financial institutions 8.9 17.7

Other deferred financing fees (4.0) (3.1)

Obligations under finance leases 79.7 82.7

Total non-current debt 1,759.2 1,289.1

Bonds 750.0 750.0

European Investment Bank 35.0 30.0

European Commercial Papers - 196.4

Deferred financing fees (0.2) (1.0)

Accrued interest 44.7 19.4



Total current debt 866.0 1,033.8

Total debt 2,625.2 2,322.9

On June 30, 2016, after taking into account the effect of interest rate swaps, approximately 84% (92% in December 31, 2015) of the Groups’ outstanding debt is at fixed rate. The decrease in the ratio in debt at fixed rate relates to the new Euro Commercial Paper (ECP) started in January 2015. The debt issued under this program has been considered as floating rate debt given the short maturity of this financing instrument (equal or shorter than 364 days).

The Group is required to meet two financial covenants, for the European Investment Bank senior loans, the Revolving Loan Facility and the Term Loan Facility, calculated on the basis of (i) the ratio of total Net Debt to EBITDA (Earnings before Interests, Taxes, Depreciation and Amortization), and (ii) the ratio of EBITDA to Net Interest Payable. As of June 30, 2016, the Group is in compliance with the financial covenants.

9.1 Term Loan Facility

On January 25, 2016, the Group has made use of the Term Loan Facility signed on July 3, 2015, in relation with the acquisition of Navitaire.

The Group has paid to banks in relation with this Term Loan Facility transaction costs (“Deferred financing fees”) by an amount of €1.5 million.



Page 18

9.2 Revolving Loan Facility

On April 26, 2016, the Group has entered into a €500.0 million Revolving Loan Facility. This facility will have a maturity of five years.

At the same time, the Group has cancelled the Facility B of the Revolving Loan Facility signed on March 5, 2015 (which was not disposed). The corresponding deferred financing fees of the cancelled revolving credit facility were fully recognized through the Consolidated and condensed statement of comprehensive income by an amount of €0.6 million.

The Group has paid to banks in relation to this Revolving Loan Facility transaction costs (“Deferred financing fees”) by an amount of €2.3 million. During the period the Group has not disposed of this facility.

9.3 Euro Commercial Paper (ECP)

During the period ended June 30, 2016, the Group has issued commercial papers net of interests by a total amount of €150.0 million. The total commercial papers repaid during the year amounts to €346.5 million.

The Group’s debt payable by maturity and currency as of June 30, 2016, is set forth in the table below:

Maturity (1)

Current Non-current

30/06/2016 30/06/16 30/06/17 30/06/18 30/06/19 2020 and beyond

Total non-current

Bonds EUR 1,650.0 750.0 400.0 - - 500.0 900.0

EIB EUR 325.0 35.0 65.0 65.0 65.0 95.0 290.0

Term Loan Facility EUR 500.0 - - - 250.0 250.0 500.0 European Commercial Papers EUR - - - - - - -

Accrued interest EUR 44.7 44.7 - - - - - Other debt with financial institutions EUR 32.0 23.1 6.3 2.6 - - 8.9

Leases EUR 93.1 13.4 10.7 7.1 4.7 57.2 79.7

Total debt payable 2,644.8 866.2 482.0 74.7 319.7 902.2 1,778.6

Non-current Deferred financing fees (13.1)

Current Deferred financing fees (0.2) Remaining fair value adjustment on EIB loan (6.3)

Total Debt 2,625.2

(1) This table presents the maturities on the 12 months period after the date disclosed.



Page 19

10 RELATED PARTIES BALANCES AND TRANSACTIONS

The summary of significant operations and transactions with related parties of the Company and its Group is set forth below. All the transactions with related parties are carried out on an arm’s length basis.

10.1 Subsidiaries

The transactions between the Group and its subsidiaries, which are related parties of the Company, were eliminated on consolidation. Accordingly, they are not disclosed in this note.

10.2 Shareholders and significant influence

As of June 30, 2016, there are neither shareholders nor significant influence considered related parties.

10.3 Board of Directors

The position of Member of the Board of Directors is remunerated in accordance with the Company’s by-laws. The remuneration consists of a fixed remuneration to be determined by the General Shareholders’ Meeting before the relevant financial year ends.

At the meetings held on June 24, 2016 and June 25, 2015, the Ordinary General Shareholders’ Meeting agreed a fixed remuneration for said functions, in cash or in kind, for the period January to December 2016 and 2015, with a limit of KEUR 1,405 and 1,405, for each period, and it vested the Board of Directors with the authority to resolve on how said remuneration was to be distributed among the members of the Board, following article 36 of the Company’s Bylaws. The Board of Directors of the Company may agree an unequal remuneration scheme distribution. No loans, advances or stock options have been granted to the members of the Board of Directors.

The compensation paid to the members of the Board of directors of the Company is set forth in the table below:

In thousands of Euros

Board of Directors 30/06/2016 30/06/2015

Total compensation 658 658

As of June 30, 2016, investment held by the members of the Board of Directors in the share capital of the Company is set forth in the table below:

30/06/2016

Name Shares

José Antonio Tazón García 260,000

Luis Maroto Camino 145,153

Roland Busch 100

David Webster 1

Pierre-Henri Gourgeon 400

During the period ended June 30, 2016, the amounts accrued to the Chief Executive Officer (Consejero Delegado) for his executive functions in respect of compensation in cash (base salary and bonus accrued), compensation in kind, contributions to pension plan and collective life insurance policies and share based



Page 20

payments amounted to KEUR 780, KEUR 16, KEUR 133 and KEUR nil, respectively, (KEUR 758, KEUR 13, KEUR 123 and KEUR nil, respectively, for the period ended June 30, 2015).

10.4 Key Management Compensation

During the period ended June 30, 2016, the amounts accrued to the Key Management in respect of compensation in cash (base salary and bonus accrued), compensation in kind, contributions to pension plan and collective life insurance policies and share based payments amounted to KEUR 2,902, KEUR 138, KEUR 300 and KEUR 562, respectively, (KEUR 2.678, KEUR 198, KEUR 372 and KEUR nil, respectively, for the period ended June 30, 2015). Key management personnel include 10 members for the period ended June 30, 2016 and 2015.

As of June 30, 2016, the number of ordinary shares held by the Group Management amounts to 175,630.

10.5 Other related parties

Under other related parties, the Group presents the transactions between the Group and its associates and joint-ventures.

The Group’s balances and transactions with the related parties described in sections 10.1 to 10.5 above as of June 30, 2016 are set forth in the table below:

In thousands of Euros

30/06/2016

Consolidated statement of comprehensive income

Shareholders

and

significant

influence

Board

members

and key

management

Other

related

parties Total

Cost of revenue and other operating expenses - 53,003 53,003

Personnel and related expenses - 4,559 4,559

Total expenses - 4,559 53,003 57,562

Interest income

- - 2 2

Dividends received-Share in profit from associates and

joint ventures accounted for using the equity method - - (98) (98)

Revenue - - 7,252 7,252

Total income - - 7,156 7,156



Page 21

30/06/2016

Consolidated statement of financial position

Shareholders

and

significant

influence

Board

members

and key

management

Other

related

parties Total

Dividends Receivable - Other current financial assets - - 1,281 1,281

Trade accounts receivable - - 5,349 5,349

Dividend payable (*) - 250 - 250

Trade accounts payable - - 25,038 25,038

Loans receivable – Other current/non-current financial

assets - - 231 231

(*) Dividends based on the number of shares held by the members of the Board and the key management personnel as of June 30, 2016.

11 TAXATION

The effective tax rate has been calculated considering the best estimate available of the full-year effective tax rate and the tax rates currently in force in the different countries defining the Group structure at the date of these consolidated and condensed interim financial statements. Due to the impact on the effective tax rate of non-deductible expenses as a percentage of income before taxes, any significant difference between the estimate and the final income before taxes achieved for the full-year could affect the final full-year effective tax rate.

The effective tax rate as of June 30, 2016, is 29.5% which is the expected effective tax rate for year-end 2016. The effective tax rate as of June 30, 2015 was 31.0%.

12 EARNINGS PER SHARE

The reconciliation of the weighted average number of shares and diluted weighted average number of shares outstanding as of June 30, 2016 and 2015, is set forth in the table below:

30/06/2016 30/06/2015

Ordinary shares Weighted average

number of ordinary shares

Ordinary shares Weighted average

number of ordinary shares

Total shares issued 438,822,506 438,822,506 447,581,950 447,581,950

Treasury shares (2,813,953) (2,346,568) (11,038,848) (11,047,456)

Total shares outstanding 436,008,553 436,475,938 436,543,102 436,534,494

The basic earnings per share are calculated by dividing the profit attributable to owners of the parent by the weighted average number of ordinary shares in issue during the period, excluding ordinary shares purchased by the Group and held as treasury shares. The dilutive earnings per share is calculated increasing the ordinary shares outstanding to assume conversion of potentially dilutive ordinary shares.



Page 22

The calculation of “Basic and diluted earnings per share” (rounded to two digits) for the period of six months ended June 30, 2016 and 2015, is set forth in the table below:

Basic and diluted earnings per share

30/06/2016 30/06/2015

Profit attributable to

the owners of the parent

Earnings per share (Euros)

Profit attributable to

the owners of the parent

Earnings per share (Euros)

450.0 1.03 390,5 0.89

13 ADDITIONAL INFORMATION ON THE CONSOLIDATED AND CONDENSED STATEMENT OF COMPREHENSIVE INCOME

13.1 Interest expense and other financial expenses

The “Interest expense” for the period ended June 30, 2016 and 2015 mainly corresponds to the debts which are described in note 9. The breakdown of the “Interest expense” is set forth in the table below:

30/06/2016 30/06/2015

Unsecured Senior Credit Facility - 1.2

Term Loan Facility 1.9 -

European Investment Bank (EIB) 5.4 4.3

Interest from derivative instruments (IRS) - 0.1

Bonds – “Euro Medium Term Notes Programme” 22.2 18.1

Bonds – “Senior Fixed Rate Instruments” 1.2 1.4



Subtotal 32.2 26.6

Deferred financing fees 3.1 3.9

Bank commissions, fees and other expenses 1.3 0.9

Interest on commercial paper - 0.4

Interest expense 36.6 31.8

…



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The breakdown of “Other financial expenses” as of June 30, 2016 and 2015 is set forth in the table below:

30/06/2016 30/06/2015

Net interest on the Net Defined Benefit liability 1.1 1.0

Others 0.6 0.8

Other financial expenses 1.7 1.8

13.2 Employee distribution

The employee distribution by category and gender for the period ended June 30, 2016 and 2015, is set forth in the table below:

30/06/2016 30/06/2015

Female Male Female Male

CEO/SVP/VP 9 52 4 29

Amadeus Group Director 42 166 15 109

Manager / Senior Manager 924 2,030 842 1,917

Staff 4,176 6,273 3,772 5,762

As of June 30, 2016 and 2015, the total number of employees was 13,672 and 12,450, respectively.

14 ADDITIONAL CONSOLIDATED STATEMENT OF CASH FLOWS RELATED DISCLOSURE

The reconciliation of the “ Cash and cash equivalents net” caption of the consolidated and condensed statement of cash flows and the “ Cash and cash equivalents” caption of the consolidated and condensed statement of financial position as of June 30, 2016 and 2015 is set forth in the table below:

30/06/2016 30/06/2015

Cash on hand and balances with banks 270.6 237.4

Demand deposits 181.9 156.3

Cash and cash equivalents 452.5 393.7

Bank overdrafts (0.6) (0.3)

Total cash and cash equivalents net 451.9 393.4



Page 24

15 SUBSEQUENT EVENTS

On July 15, 2016, the Group has paid the bond issued under the "Euro Medium Term Notes Programme", registered with the Financial Conduct Authority (FCA) in London. This bond was issued on July 15, 2011 and had a notional of €750.0 million.

In relation to this payment, the Group has withdrawn, on July 14, 2016, €360.0 million from the Revolving Loan Facility entered on April 26, 2016; and during the month of July 2016 has issued notes under the Euro-Commercial Paper (ECP) programme amounting to €300.0 million. The remaining €90.0 million of the bond payment has been financed with the Cash and cash equivalents balance.

It is expected to increase the current €500 million ECP programme of Amadeus Finance B.V. up to €750 million within the third Quarter of 2016.


Interim Consolidated Directors’ Report for the six months period ended June 30, 2016

Management Review January-

Amadeus IT Holding, S.A. and Subsidiaries Interim Consolidated Directors’ Report for the six months period ended June 30, 2016 (Millions of euros)

2

Index

1 Summary ................................................................................................ 3

2 Operating Review .................................................................................... 7

3 Presentation of financial information......................................................... 13

4 Main financial risks and hedging policy ..................................................... 15

5 Operating and financial performance by segment ....................................... 17

6 Consolidated financial statements ............................................................ 24

7 Other financial information ...................................................................... 30

8 Other additional information .................................................................... 32

9 Key terms ............................................................................................. 38

10 Appendix: Financial tables ..................................................................... 39


3

1 Summary 1.1 Introduction

Highlights for the first six months, ended June 30, 2016 _ In Distribution, our air travel agency bookings increased 5.0%, to 279.3 million _ In IT Solutions, our total Passengers Boarded increased 75.7%, to 622.4 million _ Revenue increased by 15.1%, to €2,275.5 million _ EBITDA increased by 16.5%, to €907.1 million _ Adjusted profit1 increased by 17.9%, to €494.5 million _ Free Cash Flow increased by 23.2%, to €417.3 million _ Covenant net financial debt stood was €2,147.5 million (1.31 times to covenant last

twelve months’ EBITDA) at June 30, 2016

We have continued to see a strong trend throughout the first half of 2016, with successful business announcements and good financial results. In the first six months of the year, Revenue and EBITDA increased by 15.1% and 16.5%, respectively, driving Adjusted Profit growth of 17.9%. These results were supported by the positive performances of our Distribution and IT Solutions segments, as well as by the contribution from our 2015 and this year’s Navitaire acquisitions.

In Distribution, we successfully renewed or signed content agreements with 9 airlines during the second quarter, including Emirates, securing and expanding content for our subscribers. We successfully enhanced our competitive position2 in the market by 1.3 p.p. during the quarter, further increasing our relevance to travel providers. Our fastest-growing regions in the quarter were Asia and Pacific, driven by strong industry growth and supported by a continued enhancement of our competitive position, followed by North America, where our volumes continued to experience double-digit growth driven also by an improvement in our competitive position. Our global competitive position2 reached 43.2% over the first six months of 2016, representing a 1.0 p.p. improvement over last year, supporting air travel agency volume growth for Amadeus of 5.0% and a Distribution Revenue increase of 7.5%

Amadeus is committed to supporting its airline partners in realising their full revenue potential. Merchandising solutions represent a key area of focus for the airlines. As of the end of the second quarter, 63% of air bookings processed through Amadeus could carry an attached ancillary service and 110 airlines had contracted for Amadeus Airline Ancillary Services for the indirect channel, of which 86 had been implemented. Amadeus Fare Families Solution, which allows airlines to distribute branded fares, had 39 contracts in place, including the newly signed Iberia and Ural Airlines. 30 airlines have now implemented the Amadeus Fare Families solution.

Sales of Airline Ancillary Services through the Amadeus indirect distribution channel grew 80% in the first half of 2016, primarily through the now more than 30 online travel agencies which have integrated the Amadeus merchandising solutions. German Reisegiganten, Swedish Airtour.se and

1 Excluding after-tax impact of the following items: (i) accounting effects derived from PPA exercises and impairment losses, (ii) non-operating exchange gains (losses) and (iii) other non-recurring items.

2 Competitive position as defined in Section 3.


4

Netherlands based TIX have integrated either Amadeus Ancillary Services or Amadeus Fare Families during the second quarter.

IT Solutions revenue grew 31.5% in the second quarter of 2016. This performance was driven by underlying double-digit growth, as well as by the consolidation of the Navitaire acquisition from late January 2016 and the full year impact from the 2015 AirIT, Hotel SystemsPro and Itesso acquisitions. Total Passengers Boarded increased by 86.9% due to the inclusion of Navitaire’s Passengers Boarded. Altéa Passengers Boarded growth was 11.9%, positively impacted by organic growth and the migrations we have undertaken in the last twelve months: most importantly China Airlines, Swiss International Air Lines and Brussels Airlines (both part of the Lufthansa Group). Our main activities within Airline IT grew well in the quarter supported by upselling and cross-selling success as well as organic growth. IT solutions revenue increased by 34.4% in the first half.

During the second quarter, Malaysia Airlines announced it had chosen Amadeus to become its new PSS provider and Air Cairo completed its migration to Altéa. Nile Air renewed its Airline IT contract expanding its scope of contracted services. Swiss International Air Lines and Amadeus announced a partnership to develop Amadeus Passenger Recovery, a new tool that will allow the airline to re-accommodate disrupted passengers and which will be integrated with the Altéa Suite. Avianca also renewed its Altéa contract long term and became the launch customer for Amadeus Anytime Merchandising. Avianca is also launching Amadeus Customer Experience Management, allowing Avianca to intimately understand its customers and deliver highly personalised offers. In May, Amadeus announced a partnership with Plusgrade, an IT provider to airlines, which will support passengers bidding for upgrades. In June, Amadeus became one of the first industry players to receive the highest level of NDC certification from IATA. This was shortly followed by Navitaire also receiving the NDC certification.

We continue to advance steadily in our new businesses. We are progressing in the execution of our Hospitality IT strategy, by integrating Itesso and Hotel SystemsPro and by working with InterContinental Hotels Group in the development of a new-generation Guest Reservation System for the hospitality industry. In payments, we recently announced the enhancement of our B2B Wallet offering through partnerships with MasterCard and Ixaris. Two Travel Intelligence solutions were launched during the second quarter, Amadeus Performance Insight and Amadeus Booking Analytics. Additionally, Amadeus and The Boston Consulting Group (BCG) launched a new itinerary management app available to the BCG workforce worldwide. The MyBCGTrip app is based on the Amadeus Mobile Platform and personalised for BCG’s needs.

We remain highly focused on technology. Our investment in R&D reached 15.3% of our revenue in the first half of 2016. It was dedicated to support long-term growth through new customer implementations, product evolution, portfolio expansion, investment in new businesses and continued open systems migration and system performance optimisation.

During the first half of 2016, our free cash flow grew 23.2% and consolidated covenant net financial debt as of June 30, 2016 was €2,147.5 million, representing 1.31 times last twelve months’ covenant EBITDA.

In June 2016, our shareholders approved a gross dividend of €0.775 per share for the results in respect of 2015, representing a 50% pay-out ratio, amounting to a total dividend of €340.1 million. An interim dividend of €0.34 per share was paid on January 28, 2016 and the complementary dividend of €0.435 per share was paid on July 28, 2016.


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On March 11, 2016 the Board of Directors of Amadeus IT Holding, S.A. and that of Amadeus IT Group, S.A. approved a plan in relation to the merger of both companies (being Amadeus IT Holding, S.A. the surviving entity). After the approval of the merger by absorption by the Ordinary Shareholders’ Meeting of both Amadeus IT Holding, S.A. and Amadeus IT Group S.A. in June 2016 and having fulfilled the remaining legal formalities, the merger public deed is expected to be registered with the Commercial Registry of Madrid on August 1, 2016. Upon registration Amadeus IT Group S.A. will be legally dissolved and Amadeus IT Holding S.A. will adopt the name of Amadeus IT Group S.A.


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1.2 Summary of operating and financial information

Summary of KPI ( figures in million euros)

Jan-Jun 2016 Jan-Jun 2015 % Change Operating KPI Air TA competitive position1 43.2% 42.2% 1.0 p.p. Air TA bookings (m) 279.3 265.9 5.0% Non air bookings (m) 31.2 32.2 (3.1%) Total bookings (m) 310.5 298.1 4.1% Passengers Boarded (m) 622.4 354.2 75.7% Financial results Distribution Revenue 1,520.5 1,415.1 7.5% IT Solutions Revenue 754.9 561.7 34.4% Revenue 2,275.5 1,976.8 15.1% Distribution Contribution 677.2 632.2 7.1% IT Solutions Contribution 499.3 367.0 36.0% Contribution 1,176.5 999.2 17.7% EBITDA 907.1 778.8 16.5% EBITDA margin (%) 39.9% 39.4% 0.5 p.p. Adjusted profit2 494.5 419.6 17.9% Adjusted EPS (euros)3 1.13 0.96 17.9% Cash flow Capital expenditure 288.4 251.7 14.6% Free cash-flow4 417.3 338.7 23.2% 30/06/2016 31/12/2015 % Change Indebtedness5 Covenant Net Financial Debt 2,147.5 1,611.6 33.3% Covenant Net Financial Debt / LTM Covenant EBITDA 1.31x 1.09x

1. Competitive position as defined in section 3. 2. Excluding after-tax impact of the following items: (i) accounting effects derived from PPA exercises and

impairment losses, (ii) non-operating exchange gains (losses) and (iii) other non-recurring items. 3. EPS corresponding to the Adjusted profit attributable to the parent company. Calculated based on

weighted average outstanding shares of the period. 4. Calculated as EBITDA less capital expenditure plus changes in our operating working capital less taxes paid

less interests and financial fees paid. 5. Based on the definition included in the senior credit agreement covenants.


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2 Operating Review 2.1 Key business highlights for the first half

Distribution Around 75% of airline bookings made through the Amadeus system worldwide are with airlines that have a content agreement with Amadeus. Since the beginning of the year, new contracts or renewals of existing content agreements were signed with 21 carriers, including LATAM Airlines Group S.A. (“LATAM”), Virgin Australia, Emirates Airways, Air Cairo and Etihad Airways, whose contract also included expanded rich content capabilities for displaying images for ancillary services such as exit row seating. Continuing our growth in the important growing Low-Cost Carrier (LCC) sector, travel agents using the Amadeus system can now book Ryanair’s Business Plus Fare, which includes benefits such as one free 20Kg checked-in bag, a premium seat with extra legroom or a speedy exit (subject to availability), and Flexible ticket changes without fees. Chinese low cost carrier Spring Airlines made its content available through the Amadeus system and signed for Amadeus Ticketless Access. Subscribers to the Amadeus system have now access to the inventory of over 80 low cost and hybrid carriers from all over the world. Bookings of this segment grew by 17% in the first half of 2016, compared to 2015. Our customers continued to contract our merchandising solutions, including LATAM, FlyBe and Ukraine International Airlines. As of the end of the first half, 63% of the global air bookings processed through the Amadeus system are eligible to carry an attached ancillary service. At the end of the first half, 110 airlines had signed up to Amadeus Airline Ancillary Services for the indirect channel, with 86 of them already implemented. Including customers that have contracted these solutions for either their indirect channel or direct channel, the number of contracted airlines is 157, 121 of which have already been implemented. Amadeus Fare Families Solution, which allows airlines to distribute branded fares, had 39 contracts in place, including the newly signed Scandinavian Airlines, Iberia and Ural Airlines. 30 customers have now implemented the Fare Families solution, including Canada’s WestJet. Merchandising sales through the Amadeus indirect distribution channel had a record first half of the year, with an 80% increase in airline ancillary services sold through the Amadeus system, primarily through the more than 30 global online travel agencies (OTAs) that are integrating Amadeus merchandising solutions. German Reisegiganten, Swedish Airtour.se and Netherlands based TIX have integrated either Amadeus Ancillary Services solution or Amadeus Fare Families solution in their websites. The online travel agency Travix recently introduced Amadeus Fare Families across its 35 website brands, including CheapTickets.nl, BudgetAir.com, and Vayama.com. Egencia, the travel management company owned by Expedia and whose services are available in 65 countries, on March 1 began using Amadeus Web Services to offer business travellers the ability to book extra baggage whilst booking flights – offering merchandising content to its clients from more than 10 airlines, including Air France, its pilot airline partner. Furthering our commitment to our subscribers, in the UK market, Amadeus launched Selling Platform Connect, the world’s first fully cloud-based GDS booking and fulfilment platform, accessible anywhere from any device with internet access and without the hassle of a complicated


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installation. This product brings key benefits including flexibility, real customization capabilities and an innovative “Cryptic Magic” tool that allows users to switch seamlessly between cryptic and graphic during any part of the booking process. Amadeus took another step forward in the world of personalised shopping for travellers when it launched the world’s first self-service online rebooking solution, Amadeus Ticket Changer (ATC) Shopper. Customers of participating travel agencies can go online to rebook their flights any day, any time. This helps online travel agents greatly reduce the number of calls to call centres, lowers the risk of errors, and improves customer satisfaction and loyalty. Tickets Travel Network, a leading Eastern European online travel agency, was amongst one of the first agencies to test Amadeus’ new ATC Shopper functionality.

Airline IT In January Amadeus announced that, following regulatory approval, it had completed the acquisition of Navitaire, a provider of technology and business solutions to the airline industry, from Accenture for €766.5 million. The addition of Navitaire’s portfolio of products and solutions for the low-cost and hybrid segments complements Amadeus’ Altéa Suite of offerings for its largely full-service carrier customer base, giving the company the ability to serve a wider group of airlines. Amadeus will market and sell the two product portfolios separately and will continue to invest in both platforms, enhancing the services and functionality availability to all types of carriers. Including Navitaire, and at the end of the first half, more than 170 airlines were contracted for either of the Amadeus Passenger Service Systems (PSS) and more than 160 airlines had been implemented. Malaysia Airlines announced that it had selected Amadeus as its new IT provider for its PSS. Also, Nile Air renewed its IT contract, expanding the scope of the airline IT services used: apart from Amadeus’ complete Altéa Suite and the Amadeus Digital Solutions (e-commerce), Nile Air has now gained access to four key new features — revenue management, revenue accounting, mobile web and loyalty management — that will boost operational efficiency and create savings for the airline. Migrations onto the Altéa platform continued, with Swiss International Air Lines and Brussels Airlines migrating to Altéa Departure Control towards the end of the first quarter following its migration to Reservation and Inventory earlier in the year. Swiss International Air Lines and Brussels Airlines flew more than 16 million and 7 million passengers respectively in 2015. China Airlines, the largest airline and flag carrier of the Republic of China (Taiwan), along with its subsidiary, Mandarin Airlines, have now migrated to the Altéa Reservation and Inventory modules as part of their contract for the full Amadeus Altéa Suite – making Altéa available in the Chinese language for the first time. Air Cairo also completed its migration to Altéa. Viva Group was also successfully migrated to Navitaire New Skies, which will allow VivaColombia and VivaAerobus to serve more customers, add additional destinations, and ultimately support sustained and profitable growth. Existing Altéa customers continued to contract additional solutions from the airline IT portfolio. The Lufthansa Group, which was already an Altéa Reservation, Inventory and Departure Control


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Customer Management user, contracted to complete the full Amadeus Altéa Suite across all its network carriers through the addition of Amadeus Altéa Departure Control Flight Management. Starting with Lufthansa, Swiss International Air Lines, Brussels Airlines and Lufthansa Cargo, Amadeus will work with the Lufthansa Group to automate aircraft load control and will eventually optimise loads for the group’s 3,000 daily flights. Additionally, the relationship with Singapore Airlines was deepened when the airline contracted the full suite of Amadeus Revenue Management solutions, which are specifically designed to counter the ‘buy-down effect’ generated by traditional revenue management practices. By providing the airline with the necessary platform to future-proof its revenue management capabilities, Amadeus will allow the carrier to react more nimbly in the face of a rapidly evolving landscape. Singapore Airlines will also adopt the Amadeus Dynamic Pricing and Amadeus Altéa Group Manager solutions. Swiss International Air Lines and Amadeus announced a partnership to develop Amadeus Passenger Recovery solution, a new tool that will allow the airline to re-accommodate disrupted passengers from multiple flights through a standard service approach taking into account the value of the passengers’ complete itinerary, available alternative flights, and the cost versus the quality of the new itinerary. This solution will be integrated with the Altéa Suite. In June, Avianca renewed its commitment to Amadeus Altéa Suite long term, and also became the launch customer for Amadeus Anytime Merchandising. As such, Avianca will benefit from unique merchandising capabilities including the ability to reach more travellers at any stage of their trip through the Amadeus global travel ecosystem, and advanced segmentation capabilities and support for many different types of ancillary services that will help Avianca deliver on travellers’ expectations by providing relevant and attractive offers throughout the entire trip cycle. Amadeus Anytime Merchandising, which is compliant with IATA's NDC standard, helps airlines engage with their customers at decisive moments during their journey, such as the searching and booking phase, when at the airport, during the flight, at the hotel and many more. Avianca is also launching Amadeus Customer Experience Management, an IT solution that will underpin the airline ability to intimately understand its customers and deliver highly personalised offers, helping to maximise every merchandising revenue opportunity. In May, Amadeus announced a partnership with Plusgrade, an IT company that provides technology to airlines so that passengers may bid to move to a better class or have that much-prized empty seat next to them on a busy flight. After buying their tickets, passengers place their bids for these services online. They find out if their offer is accepted between 24 and 72 hours before the flight takes off. In June, Amadeus became one of the first industry players to receive the highest level of NDC certification from IATA. Airlines using Amadeus’ new Altéa NDC solution developed earlier in 2016 will have the option to distribute their prices and fares, including ancillary and fare family content, using NDC Offers & Orders. This was shortly followed by Navitaire receiving the highest level of NDC certification as well.


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Payments Amadeus partnered with two pioneers in Fintech innovation to enhance its recently announced B2B Wallet product. Amadeus is partnering with MasterCard to offer travel agencies payment acceptance and security around the globe, as well as better protection against supplier default when using B2B Wallet. Amadeus’ solution will build on MasterCard’s vast global network to expand virtual B2B payments in travel. Amadeus is also partnering with Ixaris to drive efficient virtual card management on B2B Wallet. With its innovative payments technology, Ixaris allows travel agents to easily create and add funds to their virtual payment cards. Ixaris, having won the Cards International’s Prepaid Innovation Award two years in a row, has been a pioneer in payments ever since it launched the first virtual prepaid card in Europe in 2003.

Airport IT Quebec City’s Jean Lesage International Airport is implementing next-generation cloud-based Amadeus technology, to provide a more efficient passenger departure experience and create substantial cost and energy savings. By introducing the Amadeus Airport Common Use Service (ACUS), which revolutionises check-in technology by using application virtualisation, and deploying self-service kiosks at the airport, Amadeus’ solutions will increase operational flexibility to respond to peak demand. Additionally Copenhagen Airports, the company that owns and operates the Copenhagen airports of Kastrup and Roskilde, has chosen to harness the power of the cloud through a ten-year IT partnership with Amadeus. By improving operational performance and the customer experience as part of an ambitious vision to become a world-class hub for Northern Europe, they hope to grow from 25 to 40 million passengers per year. Both airports will remove their current Air Traffic System and replace them with nine Amadeus solutions to transform operations across a diverse range of areas, including Airport Collaborative Decision Making Portal, Airport Operational Database and Baggage Reconciliation System. ASA, which owns Cape Verde’s seven airports and ground handling company Cabo Verde Handling, will implement Amadeus Airport Common Use Service (ACUS) and Altéa Departure Control (DC) in four international airports to provide a more efficient passenger experience and simplify departure control connectivity for airline customers. The airports will make use of application virtualisation, allowing passenger processing systems to be accessed and deployed anywhere, on demand. This means airlines and ground handlers can use the platform from a desktop computer or laptop, enabling passengers to be checked-in and boarding passes to be printed from any location resulting in greater operational flexibility. Airline customers will also benefit from the simplified network connectivity model which facilitates the opening of new routes by substantially reducing the time needed to deploy their applications at the airports.


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Travel Intelligence Two Travel Intelligence solutions were launched during the first half. The first was Amadeus Performance Insight, a cloud-based open architecture solution that allows airlines of all sizes to better understand their performance, using data to help them make better business decisions as a result. With Amadeus Performance Insight airlines can also gain insights to understand peaks and falls in travel shopping, and other purchase patterns to help them better manage demand and build personalised offers. A second data intelligence solution, Booking Analytics, was launched in June. Amadeus Booking Analytics allows airlines to monitor bookings - per route, per airline, per booking class, per agency point of sale, among other criteria, and act upon them. It also enables airlines to better manage inventory by adjusting their booking class offering, allows carriers to monitor passenger volumes right down to an Origin and Destination level and offers visibility to point of sale level where available.

Rail AccesRail, an IATA travel partner and content aggregator specialising in intermodal travel, strengthened its commitment to a door-to-door travel future through an extended partnership with Amadeus. Using Amadeus’ Air-Rail Display, travel agents are now able to book 18 rail and bus operators across 26 countries on the same screen as air travel, including Deutsche Bahn’s stand-alone services in Germany and National Express bus routes in the UK. This link allows railways to broaden their reach in a key sales channel and increase revenue. Meanwhile RENFE, the Spanish rail operator that transported a record 31 million passengers on its high speed trains in 2015, agreed to distribute its rail content to Amadeus subscribers globally. Search, booking, ticketing, payment and settlement flow for the travel agency are all handled by Amadeus.

Mobile Amadeus and The Boston Consulting Group (BCG) launched a new itinerary management app available to the consulting firm’s entire workforce worldwide. MyBCGTrip is a versatile and intuitive itinerary management app offering instant access to all trip details, easy check-in, calendar synchronisation, flight notifications and instant alternatives in case of a last-minute change in plans. Rebooking is as simple as a single tap that connects the traveller directly to a travel agent. Upon booking a trip, the traveller doesn’t need to do anything either: the trip links automatically to their profile within the app. The MyBCGTrip app is based on the Amadeus Mobile Platform and personalised for the corporation’s travel needs.

Additional information from the first half Amadeus has been awarded “Cloud innovator of the year” by open source solutions provider Red Hat, for a project it describes as providing ‘a wonderful example of what is possible with open source’. This commendation follows the successful launch of Amadeus Cloud Services last June, supported by an open source project Amadeus developed in collaboration with Red Hat on OpenShift Container Platform. Red Hat Innovation Awards honour customers and partners for their outstanding and innovative use of Red Hat solutions.


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Amadeus also continued with its thought leadership activities. A research paper written by Connections stated that luxury travel is expected to grow 6.2% annually, a third faster than global GDP. Another report commissioned by Amadeus and conducted by Context Consulting predicts that Halal travellers, those who wish to maintain Muslim principles while travelling, will increase from 110 million to 150 million by 2020. Defining the future of travel through intelligence, a new discussion paper from Amadeus Travel Intelligence, outlines how data analytics can be used to develop innovative products, services, and processes that better meet the needs of their customers. It explains that travel companies must be open to experimentation, new ideas and new approaches. Also, an Amadeus whitepaper explains how the latest in travel technology is helping travel management companies reduce costs for marine and offshore companies.

Norwegian Air Shuttle announced that generous passengers have donated approximately 3.3 million NOK (Almost USD 0.390 million) since June of 2015 via the Amadeus Donation Engine, which allows travellers to contribute funds to UNICEF when purchasing flights online. Passengers simply ‘Click for Change’ when finishing ticket purchase and a small donation of choice goes directly to support UNICEF’s work for children.

The Amadeus commitment to its employees was recognised earlier this year when it was awarded the Top Employers 2016 Certification in Spain for the fourth consecutive year, in Germany at our data centre for the third consecutive year, for the first time ever in Thailand at our Bangkok regional office, and at our UK & Ireland Amadeus Commercial Office. The Top Employers Institute is a well-known independent organisation that assesses the employee offerings of companies around the world against international standards.

2.2 Key ongoing R&D projects

R&D investment in the first half of 2016 related primarily to:

_ Customer implementations and services:

· Altéa implementation efforts related to carriers migrated in 2016 and future implementations (mainly Swiss International Air Lines, Brussels Airlines, China Airlines, Southwest Airlines –the domestic passengers business-, and Japan Airlines), as well as resources for Navitaire New Skies migrations (including the Viva Group recently implemented).

· Implementation costs linked to our upselling activity (such as Revenue Management or e-commerce solutions).

· Implementation of Distribution solutions for airlines, travel agencies, and corporations, including the implementation of low cost carriers to ticketless access, the expansion of our customer base in merchandising solutions and the migration of corporations to our self-booking tool.

· Additionally, resources allocated to client specific e-commerce competency centres.

_ Product evolution and portfolio expansion:

· For airlines, mainly solutions related to cloud availability, NDC compliant XML connectivity, and our revenue optimisation and financial suites.

· For travel agencies, meta-search engines, travel management companies and corporations, efforts linked to our cloud-based new generation selling platform, search engines, front-office customisation and conversion tools.


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· Investment focused on merchandising solutions (including Amadeus Anytime Merchandising and Customer Experience Management), ancillary services and fare families, as well as enhanced shopping and booking solutions.

_ Efforts related to the new businesses (Hospitality, Rail, Airport IT, Payments and Travel Intelligence):

· Development costs to build and implement the next-generation Guest Reservation System for the hospitality industry under our partnership with InterContinental Hotels Group.

· Continued development and evolution of our Airport IT, Payments and Travel Intelligence portfolios, as well as enhanced distribution capabilities for Hospitality and Rail.

· Implementation efforts in the Airport IT space (in relation to our ground-handling, passenger processing and airport operations solutions), as well as related to Payment solutions.

· Efforts dedicated to our partnership with Bene Rail to create a new rail community IT platform.

_ Cross-area technology investment:

· Ongoing shift of the company’s platform to next-generation technologies and open systems.

· System performance projects to deliver the highest possible reliability, availability, as well as service and security levels to our client base.

· Projects related to our overall infrastructure and processes to improve efficiency and flexibility.

3 Presentation of financial information The consolidated financial information included in this document has been prepared in accordance with International Financial Reporting Standards (IFRS), and has been subject to a limited review by the auditors.

Certain amounts and figures included in this report have been subject to rounding adjustments. Any discrepancies in any tables between the totals and the sums of the amounts listed are due to rounding.

This document includes unaudited Alternative Performance Measures such as EBITDA, covenant net financial debt and Adjusted profit, and its corresponding ratios. These Alternative Performance Measures have been prepared in accordance with the Guidelines issued by the European Securities and Markets Authority for the regulated information published on or after July 3, 2016.

_ The EBITDA corresponds to the segment contributions less the net indirect costs as disclosed in note 4 ‘Segment Reporting’ of the Consolidated and condensed interim financial statements for the six months period ended June 30, 2016.

_ The covenant net financial debt is defined as the current and non-current debt, less the cash and cash equivalents, adjusted for the non-debt items (such as deferred financing fees, accrued interest and fair value adjustments to EIB loans). A reconciliation to the financial statements is included in section 10.2.


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_ The Adjusted profit corresponds to the Profit for the period reported on the Consolidated and condensed statement of comprehensive income for the six month period ended June 30, 2016, after adjusting for: (i) accounting effects derived from PPA exercises and impairment losses, (ii) non-operating exchange gains (losses), and (iii) other non-recurring items, as detailed in section 6.6.

The Group considers that these measures provide useful and relevant information to facilitate a better understanding of the performance of Amadeus and its economic position. These measures are not standard and therefore may not be comparable to those presented by other companies.

When we refer to our competitive position, we consider only our air TA bookings in relation to the air TA booking industry, defined as the total volume of travel agency air bookings processed by the global CRS. It excludes air bookings made directly through in-house airline systems or single country operators, the latter primarily in China, Japan and Russia, which together combined represent an important part of the industry.

3.1 Acquisitions completed in 2015

AirIT On April 21, 2015, Amadeus acquired 100% of the voting rights of Air-Transport IT Services, Inc (“AirIT”), a US-based provider of airport technology solutions. The purchase consideration paid in cash was €13.0 million. The transaction was fully financed with cash. The AirIT results were consolidated into Amadeus’ books from May 1, 2015.

A purchase price allocation exercise in relation to the consolidation of AirIT into Amadeus’ books was carried out in the fourth quarter of 2015.

Itesso On July 21, 2015, Amadeus acquired 100% of the voting rights of Itesso B.V. and subsidiaries, a provider of cloud-based property management systems, to expand its technology offering to the hospitality industry. The purchase consideration paid in cash was €32.7 million. The transaction was fully financed with cash. The Itesso results were consolidated into Amadeus’ books from August 1, 2015.

A purchase price allocation exercise in relation to the consolidation of Itesso into Amadeus’ books was carried out in the second quarter of 2016.

Hotel SystemsPro On July 31, 2015, Amadeus acquired through Newmarket the business (assets acquired and liabilities assumed) of Hotel SystemsPro LLC, a leading provider of sales, catering and maintenance software to the hospitality industry. The purchase consideration paid in cash was €63.3 million. The transaction was fully financed with cash. The results of the business of Hotel SystemsPro were consolidated into Amadeus’ books from August 1, 2015.

A purchase price allocation exercise in relation to the consolidation of the business of Hotel SystemsPro into Amadeus’ books was carried out in the fourth quarter of 2015.

Pyton On August 21, 2015, Amadeus acquired 100% of the voting rights of Pyton Communication Services B.V. and subsidiaries, a Netherlands-based leisure travel technology specialist. The purchase consideration paid in cash was €8.2 million. The transaction was fully financed with cash.


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The Pyton results were consolidated into Amadeus’ books in the fourth quarter of 2015, retroactively since the date of acquisition.

A purchase price allocation exercise in relation to the consolidation of Pyton into Amadeus’ books was carried out in the second quarter of 2016.

3.2 Acquisitions completed in 2016

Navitaire On July 1, 2015, Amadeus announced its agreement to acquire Navitaire, a U.S-based provider of technology and business solutions to the airline industry, from Accenture. Amadeus received all the necessary regulatory approvals and the closing took place on January 26, 2016. The cash consideration in relation to this acquisition amounted to €766.5 million. The acquisition was 100% debt-financed, partially through the drawing of the €500 million bank loan facility executed on July 3, 2015 (structured as a “club deal” financing entered into with twelve banks, with maturity dates in 2019 and 2020), and partially through the €500 million debt securities issued under our Euro Medium Term Note Programme in November 2015 (with maturity in 2021). The results of Navitaire were consolidated into Amadeus’ books from January 26, 2016.

A purchase price allocation exercise in relation to the consolidation of Navitaire into Amadeus’ books will be carried out in the coming quarters. The extraordinary costs of €6.7 million associated with the acquisition, incurred in the second half of 2015, were reported as indirect costs as of year-end 2015.

4 Main financial risks and hedging policy 4.1 Foreign exchange rate risk

Our reporting currency is the Euro. However, as a result of Amadeus’ global activity and presence, part of our results are generated in currencies different from the Euro and therefore are impacted by foreign exchange fluctuations. Similarly, part of our cash inflows and outflows are denominated in non-Euro currencies.

Our revenue is mostly generated either in Euro or in US Dollar (the latter representing 30%-35% of our total revenue). Revenue generated in currencies other than Euro or US Dollar is negligible.

In turn, 40%-50% of our operating costs3 are denominated in many currencies different from the Euro, including the USD which represents 20%-30% of our operating costs. The rest of the foreign currency operating expenses are denominated in a variety of currencies, GBP, AUD, SEK, THB and INR being the most significant. A number of the currencies in this basket (e.g. HKD, INR and THB) tend to fluctuate vs. the Euro similarly to the US Dollar - Euro fluctuations, although the degree of this correlation may vary with time.

Amadeus’ target is to reduce the volatility of the non-Euro denominated net cash flows due to foreign exchange fluctuations. Our hedging strategy is as follows:

3 Including Cost of revenue, Personnel expenses and Other operating expenses. Excludes Depreciation and amortisation.


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_ The strategy for managing our exposure to the US Dollar is based on the use of a natural hedge of our net operating cash flow generated in this currency with the payments of our USD-denominated debt (when applicable) and taxes. We enter into derivative arrangements when the natural hedge is not sufficient to cover the outstanding exposure.

_ We also hedge a number of currencies, including the GBP, AUD and SEK, for which we enter into foreign exchange derivatives with banks.

When the hedges in place qualify for hedge accounting under IFRS, profits and losses are recognised within the revenue caption (under the non-booking revenue line of Distribution). Our hedging arrangements typically qualify for hedge accounting under IFRS.

In the first half of 2016, the foreign exchange impact on revenue was negligible. The appreciation of the euro vs. several currencies (GBP, ZAR, ARS, INR for example) had a positive impact on costs, EBITDA and EBITDA margin. The underlying trend, excluding the positive foreign exchange impact on costs and Navitaire, was positive with double-digit EBITDA growth and broadly stable margins.

4.2 Interest rate risk

Our target is to reduce the volatility of the net interest flows payable. In order to achieve this objective, Amadeus may enter into interest rate hedging agreements (interest rate swaps, caps, collars) to cover the floating rate debt.

At June 30, 2016, 19% of our total covenant financial debt was subject to floating interest rates, indexed to the EURIBOR. As of this date no interest rate hedges were in place.

4.3 Own shares price evolution risk

Amadeus has three different staff remuneration schemes which are settled with Amadeus’ shares.

According to the rules of these plans, when they mature their beneficiaries will receive a number of Amadeus shares which for the outstanding plans will be (depending on the evolution of certain performance conditions) between a minimum of 222,000 shares and a maximum of 2,142,000 shares, approximately. It is Amadeus’ intention to make use of its treasury shares to settle these plans at their maturity.


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5 Operating and financial performance by segment

EBITDA (figures in million euros) Jan-Jun 2016 Jan-Jun 2015 % Change

Distribution revenue 1,520.5 1,415.1 7.5% IT Solutions revenue 754.9 561.7 34.4% Group Revenue 2,275.5 1,976.8 15.1% Distribution contribution 677.2 632.2 7.1%

Distribution contribution margin (%) 44.5% 44.7% (0.1 p.p.) IT Solutions contribution 499.3 367.0 36.0%

IT Solutions contribution margin (%) 66.1% 65.3% 0.8 p.p. Total Contribution 1,176.5 999.2 17.7% Net indirect costs (269.4) (220.4) 22.2% EBITDA 907.1 778.8 16.5% EBITDA Margin (%) 39.9% 39.4% 0.5 p.p.

In the second quarter of 2016, Revenue increased by 17.0%, to €1,155.4 million, confirming the solid start to 2016 reported in the first quarter. Revenue growth was 15.1% in the first half, driven by the positive evolution of our segments:

_ In Distribution, a 1.0 p.p. improvement in our competitive position4, expansive average pricing and growing non-booking revenue generated revenue growth of 7.5%.

_ In IT Solutions, revenue grew 34.4% driven by underlying strong double-digit growth, as well as by the consolidation of the Navitaire acquisition from late January and the full year impact from the 2015 acquisitions. (See section 3.1 Acquisitions completed in 2015 for more detail).

EBITDA expanded 16.5% in the first half of 2016, as a result of growing contributions in both Distribution (7.1%) and IT Solutions (36.0%). These were partly offset by an increase in net indirect costs (22.2%), impacted by the consolidation of Navitaire’s central costs. EBITDA margin represented 39.9% of revenues in the first half of 2016, expanding 0.5 p.p. vs. prior year. The underlying trend, excluding the positive foreign exchange impact on costs and Navitaire, was positive with double-digit EBITDA growth and broadly stable margins.

4 Competitive position as defined in Section 3.


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5.1 Distribution

Distribution (figures in million euros) Jan-Jun 2016 Jan-Jun 2015 % Change Operating KPI Air TA competitive position1 43.2% 42.2% 1.0 p.p. Total bookings (m) 310.5 298.1 4.1%

Financial results Revenue 1,520.5 1,415.1 7.5% Net operating costs (843.3) (782.9) 7.7% Contribution 677.2 632.2 7.1% As % of Revenue 44.5% 44.7% (0.1 p.p.)

1. Competitive position as defined in section 3.

Distribution delivered 7.5% revenue growth in the first half of 2016, driven by volume growth, expansive average pricing and growing non-booking revenue. Contribution grew by 7.1% to reach €677.2 million in the first half to represent 44.5% of revenue.

5.1.1 Evolution of operating KPI

Amadeus air travel agency bookings5 increased by 7.9% in the second quarter of 2016, supported by the 3.7% air TA industry growth and an improvement of 1.3 p.p. in our global competitive position6. In the first half of 2016, our air bookings grew by 5.0% and our competitive position improved by 1.0 p.p. to 43.2%.

5 Air travel agency bookings were positively affected in the first quarter of 2015 by a one-time seasonality impact linked to the way Topas group bookings were made. This impact reverted in the second quarter of 2015 and the Topas booking dynamics normalised. For comparability purposes, we have made a reclassification between the first quarter and second quarter of 2015 for such air travel agency bookings, slightly impacting industry growth and competitive position. Note first half and full-year 2015 figures are not impacted by this reclassification.

6 Competitive position and air TA booking industryas defined in Section 3.


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Operating KPI

Apr-Jun 2016

Apr-Jun 2015

% Change

Jan-Jun 2016

Jan-Jun 2015

% Change

Air TA booking Industry growth5,6 3.7% 5.6% 2.2% 4.9%

Air TA competitive Position5,6 43.8% 42.5% 1.3 p.p. 43.2% 42.2% 1.0 p.p.

Air TA bookings (m)5 138.1 128.0 7.9% 279.3 265.9 5.0%

Non air bookings (m) 15.4 15.7 (2.2%) 31.2 32.2 (3.1%)

Total bookings (m)5 153.5 143.8 6.8% 310.5 298.1 4.1%

Air TA booking Industry

Air travel agency bookings5 grew by 2.2% in the first half of 2016, with a marked seasonality between the first and second quarter of the year. Growth amounted to 3.7% in the second quarter of 2016, compared to 0.8% in the first quarter of 2016, impacted by the Easter timing effect (Easter took place in the first quarter of 2016, while it happened in the second quarter in 2015).

Asia and Pacific was the fastest growing region during the first half of 2016 experiencing robust growth, supported by the strong performance of South Korea, India, Hong Kong or the Philippines among others. Despite a stronger second quarter, the air TA booking industry in Western Europe and Middle East and Africa increased moderately overall in the first half of the year, negatively impacted either by terrorist attacks or geopolitical conflicts. Latin America and Central, Eastern and Southern Europe experienced booking declines in the first half of 2016, dragged by unfavourable macroeconomic conditions (e.g. Brazil, Venezuela and Russia). Finally, bookings in North America recovered in the second quarter and slightly increased in the first half of 2016 vs. prior year.

Amadeus bookings

Air bookings processed through travel agencies connected to Amadeus increased by 5.0% in the first half of 2016, outperforming the industry, supported by a 1.0 p.p. improvement of our competitive position.

Asia and Pacific and North America were our best performing regions benefiting from enhancements of our local competitive positions. Volumes in Middle East and Africa grew nicely in the first half while Western European bookings grew moderately, as the industry. Finally, the performance of our bookings in Latin America and Central, Eastern and Southern Europe were impacted by the declining underlying markets during the period.


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Amadeus Air TA Bookings (figures in million)

Jan-Jun 2016

% of Total

Jan-Jun 2015

% of Total

% Change

Western Europe 107.0 38.3% 105.1 39.5% 1.8% Asia & Pacific 49.7 17.8% 42.4 15.9% 17.3% North America 49.1 17.6% 45.1 17.0% 8.9% Middle East and Africa 34.2 12.3% 32.5 12.2% 5.5% Central, Eastern and Southern Europe 22.7 8.1% 24.1 9.1% (5.8%) Latin America 16.5 5.9% 16.7 6.3% (1.7%) Total Air TA Bookings 279.3 100.0% 265.9 100.0% 5.0%

Regarding non-air distribution, bookings decreased by 2.2% in the second quarter of 2016 and 3.1% in the first half, driven by the decline in rail bookings and despite an increase in hotel bookings, which continue to perform well.

5.1.2 Revenue

Distribution revenue growth accelerated in the second quarter of 2016 (growing 10.9% vs. prior year), driving first half growth to 7.5% vs. the same period of 2015. This first half increase was the result of growth in both booking revenue and non-booking revenue.

The increase in booking revenue was a combination of (i) higher bookings (+4.1%) and (ii) a unitary booking revenue expansion, supported by certain customer renegotiations and a positive booking mix (higher weight of global bookings, and a declining weight of non-air bookings, which have a lower average fee compared to air travel agency bookings).

Non-booking revenue increased in the first half mainly due to search solutions provided to metasearch engines, and enhanced functionalities provided to travel agencies, travel management companies and corporations. Data and advertising solutions as well as our B2B Wallet, part of our Payments portfolio, have also grown their revenue contribution.

5.1.3 Contribution

In Distribution, contribution amounted to €677.2 million in the first half of 2016, growing by 7.1% vs. the same period in 2015. This positive performance was the combination of 7.5% revenue growth, explained in section 5.1.2 above, and a 7.7% increase in our net operating costs, resulting from:

_ Growth in incentives and distribution fees, driven by volume increase (+5.0% increase in air bookings in the period) and a higher unitary distribution cost, as a consequence of (i) competitive pressure and (ii) an increase in weight of countries where we operate through non fully owned ACOs and which have a higher unit distribution cost.

_ A moderate net fixed costs increase which was driven by:

· Annual salary and variable remuneration reviews. · Increased resources for advertising and Travel Intelligence solutions, as well as the

consolidation of Pyton.


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· A slowdown in capitalisations in the period as a consequence of a reduction in the capitalisation ratio, which is impacted by the intensity of the development activity, the mix of projects undertaken and the different stagesof the various projects.

_ A positive foreign exchange impact.

5.2 IT Solutions

IT Solutions (figures in million euros) Jan-Jun 2016 Jan-Jun 2015 % Change Operating KPI Passengers Boarded (PB) (m) 622.4 354.2 75.7%

Financial results Revenue 754.9 561.7 34.4% Net operating costs (255.7) (194.7) 31.3% Contribution 499.3 367.0 36.0% As % of Revenue 66.1% 65.3% 0.8 p.p.

IT Solutions posted underlying strong double-digit growth in the first half of 2016, which, together with the consolidation of Navitaire and our 2015 acquisitions, resulted in a 34.4% revenue increase. This positive evolution was supported by increases in transactional revenue, fuelled by growth in PB volumes and upselling activity, as well as non-transactional revenue.

Contribution amounted to €499.3 million and increased by 36.0% in the first half of 2016 vs. prior year. As a percentage of revenue, this represented 66.1%, expanding 0.8 p.p. vs. prior year.

5.2.1 Evolution of operating KPI

Amadeus passengers boarded grew by 86.9% to 352.9 million in the second quarter of 2016, driving first half growth vs. prior year to 75.7%. In particular, Altéa passengers boarded grew 11.9% in the second quarter of 2016.

Growth in the second quarter was driven by a higher contribution from (i) Navitaire passengers boarded (consolidated since January 26, 2016) and (ii) the latest Altéa implementations. In turn, our Altéa organic growth, in line with global traffic, slightly slowed down compared to the previous quarter, reaching 3.7% in the second quarter and leading to 4.1% in the first half of 2016 vs. the same period in 2015.

Operating KPI (figures in million)

Apr-Jun 2016

Apr-Jun 2015

% Change

Jan-Jun 2016

Jan-Jun 2015

% Change

Altéa Passengers Boarded 211.3 188.9 11.9% 392.9 354.2 10.9% Navitaire Passengers Boarded 141.6 0.0 n.m. 229.5 0.0 n.m. Total PB 352.9 188.9 86.9% 622.4 354.2 75.7%


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The acquisition of Navitaire and the latest Altéa implementations have contributed to further expand our international footprint. Both Asia and Pacific and North America have increased their respective weight in our total volumes (31.9% and 3.7% respectively in the first half of 2016), and will continue to do so in the future with the planned migrations of Japan Airlines and Southwest Airlines (the domestic passengers business).

Our Altéa passengers boarded grew 10.9% in the first half of 2016 vs. prior year. Altéa growth within Western Europe and Asia and Pacific was double-digit, supported by the carriers which joined the platform in 2015 (All Nippon Airways, Thomas Cook Group Airlines) and in 2016 (including mainly Swiss International Air Lines, Brussels Airlines and China Airlines). Passengers boarded in Middle East and Africa increased very solidly organically while growth in Latin America was limited due to the economic downturn in Brazil.

Navitaire New Skies passengers boarded performed well in the first half, increasing organically double-digit and benefitting from recent implementations such as Viva Group.

Total PB (figures in million)

Jan-Jun 2016

% of Total

Jan-Jun 2015

% of Total

% Change

Western Europe 252.5 40.6% 151.7 42.8% 66.4% Asia & Pacific 198.4 31.9% 97.0 27.4% 104.6% Latin America 61.4 9.9% 37.7 10.6% 62.7% Middle East and Africa 56.7 9.1% 49.8 14.1% 14.0% Central, Eastern and Southern Europe 30.2 4.8% 16.2 4.6% 85.8% North America 23.3 3.7% 1.8 0.5% n.m. Total PB 622.4 100.0% 354.2 100.0% 75.7%

5.2.2 Revenue

IT Solutions continued delivering robust growth, with a 31.5% increase in revenue during the second quarter of 2016, reaching 34.4% growth in the first half of the year.

This 34.4% increase was driven by the positive contribution of our acquisitions (mainly Navitaire), as well as by a strong double-digit underlying growth, which resulted from:

_ The positive evolution of our Airline IT business, mainly driven by (i) a 10.9% increase in Altéa passengers boarded, (ii) an expansive average pricing reflecting our successful upselling activity, primarily through implementations of additional Altéa modules (Departure Control Systems or Revenue Management), e-commerce and standalone solutions, and (iii) growth in services (in particular services related to e-commerce).

_ A growing contribution from new businesses.

5.2.3 Contribution

Contribution in IT Solutions increased by 36.0%, to €499.3 million in the first half of 2016. This increase was driven by a 34.4% revenue growth, as explained in section 5.2.2 above, partly offset by an increase of 31.3% in net operating costs, which was driven by:

_ Annual salary and variable remuneration reviews. _ The consolidation of our 2015 acquisitions (AirIT, Itesso and Hotel SystemsPro) and Navitaire,

including M&A fees.


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_ An increase in commercial support driven by the expansion of our offering and the commercial activity undertaken during the period, particularly for new businesses.

_ Higher R&D expenditure dedicated to (i) our Airline IT portfolio evolution and expansion (including improved merchandising and shopping functionalities, cloud and optimised availability), and (ii) our new businesses (mainly related to the development of our next-generation Guest Reservation System under our agreement with InterContinental Hotels Group). Most of these efforts are subject to capitalisation. However, the capitalisation ratio in the period slowed down, impacted by the intensity of the development activity, the mix of projects undertaken, and the different stages of the various projects.

_ Increased resources dedicated to Services (in particular services related to e-commerce). _ A positive foreign exchange impact.

5.3 EBITDA

In the first half of 2016, our EBITDA grew by 16.5%, to €907.1 million, driven by the positive underlying performance of Distribution and IT Solutions. The contribution from Navitaire and our 2015 acquisitions and a positive foreign exchange impact also contributed to this growth (see section 4.1 for details on the exposure of our operating results to foreign exchange fluctuations).

Distribution and IT Solutions contributions were partly offset by higher net indirect costs, which grew by 22.2% in the first half of 2016 vs. 2015.

Net indirect costs were impacted by the consolidation of Navitaire central costs (e.g. costs related to hosting in Accenture’s data centres). Excluding the central costs related to Navitaire, total net indirect costs increased at a mid to high single digit rate, mainly driven by: _ Annual salary and variable remuneration reviews. _ Additional resources to expand our corporate structure following our business and geographical

expansion. _ An increase in expenses related to cross area development and data centre related projects

(including the shift to open systems, in its final stage, which brings scalability and increased efficiency), though most of these projects are capitalised.

_ Higher consultancy and integration costs related to our recent acquisitions. _ A positive foreign exchange impact.


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6 Consolidated financial statements Group income statement

Income Statement (figures in million euros)

Apr-Jun 2016

Apr-Jun 2015

% Change

Jan-Jun 2016

Jan-Jun 2015

% Change

Revenue 1,155.4 987.4 17.0% 2,275.5 1,976.8 15.1% Cost of revenue (285.6) (255.1) 12.0% (580.1) (526.6) 10.2% Personnel and related expenses (328.9) (280.6) 17.2% (636.4) (549.6) 15.8% Other operating expenses (80.1) (60.4) 32.7% (146.6) (116.6) 25.7% Depreciation and amortisation (116.0) (96.5) 20.2% (232.6) (192.9) 20.6% Operating income 344.8 294.8 16.9% 679.8 591.1 15.0% Net financial expense (16.6) (24.2) (31.3%) (44.6) (25.4) 75.4% Other income (expense) 2.2 1.1 97.5% 2.1 0.3 n.m. Profit before income taxes 330.4 271.8 21.6% 637.3 565.9 12.6% Income taxes (97.5) (84.3) 15.7% (188.0) (175.4) 7.2% Profit after taxes 232.9 187.5 24.2% 449.3 390.5 15.1% Share in profit from associates and JVs 0.9 1.5 (41.8%) 1.7 1.1 58.0%

Profit for the period 233.8 189.0 23.7% 451.0 391.5 15.2% Key financial metrics EBITDA 458.3 389.1 17.8% 907.1 778.8 16.5% EBITDA margin (%) 39.7% 39.4% 0.3 p.p. 39.9% 39.4% 0.5 p.p. Adjusted profit1 248.9 209.7 18.7% 494.5 419.6 17.9% Adjusted EPS (euros)2 0.57 0.48 18.9% 1.13 0.96 17.9%

1. Excluding after-tax impact of the following items: (i) accounting effects derived from PPA exercises and

impairment losses, (ii) non-operating exchange gains (losses) and (iii) other non-recurring items. 2. EPS corresponding to the Adjusted profit attributable to the parent company. Calculated based on

weighted average outstanding shares of the period.

6.1 Revenue

Revenue in the second quarter of 2016 amounted to €1,155.4 million, representing 17.0% growth vs. the same period in 2015. For the first half of 2016, revenue increased by 15.1%, to €2,275.5 million.

This increase was supported by the positive evolution of Distribution and IT Solutions and by the contribution of our latest acquisitions, mainly Navitaire. Overall, revenue growth was a combination of:

_ An increase of 10.9% in our Distribution segment in the second quarter of 2016, leading to a 7.5% growth for the first half period.

_ An increase of 31.5% in our IT Solutions segment in the second quarter of 2016 and 34.4% in the first half.


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See sections 5.1.2. and 5.2.2. for more detail on revenue growth within Distribution and IT Solutions.

Revenue (figures in million euros)

Apr-Jun 2016

Apr-Jun 2015 % Change Jan-Jun

2016 Jan-Jun 2015 % Change

Distribution 768.8 693.4 10.9% 1,520.5 1,415.1 7.5% IT Solutions 386.6 294.0 31.5% 754.9 561.7 34.4% Revenue 1,155.4 987.4 17.0% 2,275.5 1,976.8 15.1%

6.2 Group operating costs

6.2.1 Cost of revenue

These costs are mainly related to: (i) incentive fees per booking paid to travel agencies, (ii) distribution fees per booking paid to those local commercial organisations which are not majority owned by Amadeus, and (iii) data communication expenses relating to the maintenance of our computer network, including connection charges.

Cost of revenue increased by 12.0% to reach €285.6 million in the second quarter of 2016, driving growth for the first half of 2016 to 10.2%, which was a result of:

_ Higher air booking volumes in the Distribution business (+5.0%), _ An increase in the unitary distribution cost, as a consequence of (i) competitive pressure and

(ii) an increase in weight of countries where we operate through non fully owned ACOs and which have a higher unit distribution cost.

_ Increasing data communication expenses driven by the expanding volume of transactions and connectivity activity around the globe.

_ A positive foreign exchange impact.

6.2.2 Personnel and related expenses and other operating expenses

A large part of Amadeus’ employees are software developers. Amadeus also hires contractors to support its development activity, complementing the permanent staff. The overall ratio of permanent staff vs. contractors devoted to R&D fluctuates depending on business needs and project mix, therefore impacting the evolution of both “Personnel expenses” and “Other operating expenses” captions in our income statement.

Our combined operating expenses cost line, including both Personnel expenses and Other operating expenses, increased by 20.0% in the second quarter of 2016 vs. prior year. For the first half period, the combined operating expenses amounted to €783.0 million, representing an increase of 17.5% vs. the same period of 2015.

Personnel expenses + Other operating expenses (figures in million euros)

Apr-Jun 2016

Apr-Jun 2015

% Change

Jan-Jun 2016

Jan-Jun 2015

% Change

Personnel expenses + Other operating expenses

(409.0) (341.0) 20.0% (783.0) (666.3) 17.5%


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This 17.5% growth was mostly driven by:

_ An increase of 10% in average FTEs (permanent staff and contractors), highly impacted by our recent acquisitions, mainly Navitaire. Excluding Navitaire, average FTEs grew 6%.

_ Global salary and variable remuneration reviews. _ An overall increase in expenses due to the consolidation of acquisitions, impacting particularly

computing expenses (as the Navitaire platform is hosted in Accenture’s data centres). _ An increase in consultancy and integration costs related to our recent acquisitions, as well as

M&A fees. _ An overall lower capitalisation ratio in the first half of 2016. _ A positive foreign exchange impact.

Average FTEs grew mainly as a result of: _ The consolidation of our 2015 acquisitions (AirIT, Itesso, Hotel SystemsPro and Pyton), and

most importantly, Navitaire. _ Higher headcount in R&D, mostly driven by ongoing investment in portfolio expansion and

product evolution (including the progress achieved in our new businesses), and resources dedicated to system performance projects and services (see further detail in sections 2.2 and 7.1).

_ Reinforcement of our corporate, technical and commercial, support, as we successfully expand our customer base, geographical reach (such as in Asia and Pacific and North America) and product portfolio.

6.2.3 Depreciation and Amortisation

Depreciation and amortisation (including capitalised D&A) increased by 20.4% in the second quarter of 2016, leading to a 21.1% growth for the first half period, mostly driven by growth in ordinary depreciation and amortisation.

Ordinary D&A grew by 20.0% in the first half, highly impacted by the consolidation of our acquisitions, mainly Navitaire. The underlying growth is mostly due to higher amortisation of intangible assets, linked to the amortisation of capitalised development expenses on our balance sheet, as the associated product or contract started generating revenues (for example, previously capitalised costs related to the migration of customers which have been recently implemented, or certain product development projects).

Additionally, amortisation from PPA increased by 4.7% in the first half of 2016 due to the consolidation of our 2015 acquisitions, including Itesso and Pyton (whose purchase price allocation exercises were carried out in the second quarter of 2016, with a retroactive impact to their consolidation dates).

As part of the integration of Newmarket into Amadeus, the trademark “Newmarket International” will stop being used and will be replaced by the global Amadeus brand. As a consequence, an impairment of €8.5 million corresponding to the write off of the trademark “Newmarket International” was recognised in the group income statement in the first quarter of 2016.


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Depreciation and Amortisation (figures in million euros)

Apr-Jun 2016

Apr-Jun 2015

% Change

Jan-Jun 2016

Jan-Jun 2015

% Change

Ordinary depreciation and amortisation (89.6) (74.1) 21.1% (174.7) (145.6) 20.0%

Amortisation derived from PPA (26.4) (22.4) 18.0% (49.4) (47.2) 4.7% Impairments 0.0 (0.1) n.m. (8.5) (0.1) n.m. Depreciation and amortisation (116.0) (96.5) 20.2% (232.6) (192.9) 20.6% Capitalised depreciation and amortisation1 2.5 2.2 12.2% 5.3 5.2 2.1%

Depreciation and amortisation post-capitalisations

(113.5) (94.3) 20.4% (227.3) (187.7) 21.1%

1. Included within the other operating expenses caption in the Group Income Statement.

6.3 EBITDA and Operating income

EBITDA increased by 17.8% in the second quarter of 2016 vs. the same period in 2015, and 16.5% in the first half period. This growth was generated by the positive underlying performance of Distribution and IT Solutions as well as by the contribution from our latest acquisitions (mainly Navitaire) and foreign exchange effects (see section 4.1 for details on the exposure of our operating results to foreign exchange fluctuations).

EBITDA margin represented 39.9% of revenues, expanding 0.5 p.p. vs. prior year.

The underlying trend, excluding the positive foreign exchange impact on costs and Navitaire, was positive with double-digit EBITDA growth and broadly stable margins.

Operating Income in the second quarter of 2016 increased by 16.9%, delivering a 15.0% expansion in the first half, driving our operating income to €679.8 million. This increase was driven by EBITDA growth offset by higher D&A charges.

EBITDA (figures in million euros)

Apr-Jun 2016

Apr-Jun 2015

% Change

Jan-Jun 2016

Jan-Jun 2015

% Change

Operating income 344.8 294.8 16.9% 679.8 591.1 15.0% Depreciation and amortisation 116.0 96.5 20.2% 232.6 192.9 20.6% Capitalised depreciation and amortisation (2.5) (2.2) 12.2% (5.3) (5.2) 2.1%

EBITDA 458.3 389.1 17.8% 907.1 778.8 16.5% EBITDA margin (%) 39.7% 39.4% 0.3 p.p. 39.9% 39.4% 0.5 p.p.


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6.4 Net financial expense

Net financial expense (figures in million euros)

Apr-Jun 2016

Apr-Jun 2015

% Change

Jan-Jun 2016

Jan-Jun 2015

% Change

Financial income 0.8 0.7 8.0% 1.0 0.7 39.0% Interest expense (18.8) (15.0) 25.4% (36.7) (31.8) 15.4% Other financial expenses (0.9) (1.0) (12.6%) (1.7) (1.8) (0.5%) Exchange gains (losses) 2.2 (9.0) n.m. (7.3) 7.3 n.m. Net financial expense (16.6) (24.2) (31.3%) (44.6) (25.4) 75.4%

Net financial expense decreased by 31.3% in the second quarter of 2016 though increased by 75.4% in the first half of 2016 vs. prior year, largely driven by exchange gains and losses.

The US Dollar depreciated vs. the Euro in the first half of 2016 while it appreciated in the first half of 2015 (though with high volatility between the two quarters in both years), impacting our USD-denominated assets and liabilities on our balance sheet which are not linked to the operating activity of the company. This led to a €7.3 million loss in the first half of 2016 vs. a €7.3 million gain in the first half of 2015.

Interest expense grew by 15.4% in the first half of 2016 vs. the same period of 2015 due to a higher amount of average gross debt outstanding, partly offset by a lower average cost of debt.

6.5 Income taxes

Income taxes for the first half of 2016 amounted to €188.0 million, vs. €175.4 million for the same period in 2015. The income tax rate for the first half of 2016 was 29.5%, lower than the 31.0% rate reported in the first half in 2015. The reduction in the income tax rate was mostly driven by a lower corporate tax rate in Spain.


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6.6 Profit for the period. Adjusted profit

6.6.1 Adjusted profit

Reported profit grew by 23.7% in the second quarter of 2016 vs. the same period of 2015 and by 15.2% in the first half of 2016, amounting to €451.0 million.

Adjusted profit (figures in million euros)

Apr-Jun 2016

Apr-Jun 2015

% Change

Jan-Jun 2016

Jan-Jun 2015

% Change

Reported profit 233.8 189.0 23.7% 451.0 391.5 15.2% Adjustments Impact of PPA1 18.1 15.2 19.2% 34.0 32.1 5.8% Non-operating FX results2 (1.8) 6.2 n.m. 4.9 (5.0) n.m. Non-recurring items (1.2) (0.7) 57.1% (1.1) 0.9 n.m. Impairments 0.0 0.1 n.m. 5.8 0.1 n.m. Adjusted profit 248.9 209.7 18.7% 494.5 419.6 17.9%

1. After tax impact of accounting effects derived from purchase price allocation exercises. 2. After tax impact of non-operating exchange gains (losses).

After adjusting for (i) accounting effects derived from PPA exercises and impairment losses (related to the Newmarket brand in the first quarter of 2016, as explained in section 6.2.3), (ii) non-operating exchange gains (losses), and (iii) other non-recurring items, adjusted profit increased by 18.7% in the second quarter of 2016 vs. the same period in 2015, and by 17.9% in the first half period.

6.6.2 Earnings per share (EPS)

Earnings per share

Apr-Jun 2016

Apr-Jun 2015

% Change

Jan-Jun 2016

Jan-Jun 2015

% Change

Weighted average issued shares (m) 438.8 447.6 438.8 447.6 Weighted average treasury shares (m)

(2.5) (10.6) (2.3) (11.0)

Outstanding shares (m) 436.4 437.0 436.5 436.5 EPS (euros)1 0.53 0.43 23.9% 1.03 0.89 15.3% Adjusted EPS (euros)2 0.57 0.48 18.9% 1.13 0.96 17.9%

1. EPS corresponding to the Profit attributable to the parent company. Calculated based on weighted average

outstanding shares of the period. 2. EPS corresponding to the Adjusted profit attributable to the parent company. Calculated based on

weighted average outstanding shares of the period.

The table above shows EPS for the period, based on the profit attributable to the parent company (after minority interests), both on a reported basis and on an adjusted basis (adjusted profit as detailed above). In the first half of 2016, our reported EPS grew by 15.3% and our adjusted EPS by 17.9%.


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On December 11, 2014 the Board of Directors agreed to undertake a share buy-back programme. The programme was completed on May 12, 2015 as the maximum planned investment of €320 million was reached. A total of 8,759,444 own shares were acquired, representing 1.957% of share capital. The share capital reduction through the amortisation of the repurchased shares was approved by the General Shareholders Meeting on June 25, 2015 and was registered in the Commercial Registry of Madrid on August 4, 2015. The maximum investment under the share buy-back programme (€320 million) was recognised in the statement of financial position as a reduction of equity, as if it had already been carried out on the date of the announcement of the programme. The corresponding treasury shares under the programme were included in the weighted average treasury shares shown in the table above in 2015.

On March 11, 2016 the Board of Directors of Amadeus IT Holding, S.A. and that of Amadeus IT Group, S.A. approved a plan in relation to the merger of both companies (being Amadeus IT Holding, S.A. the surviving entity), subject to the approval by their respective General Shareholders’ Meetings, which took place on June 24 and 23, 2016, approving the merger. The exchange ratio for the shares of the companies participating in the merger, determined on the basis of a market valuation of the equity of both companies, will be 1 share of Amadeus IT Holding, S.A. for every 11.31 shares of Amadeus IT Group, S.A. This exchange ratio is driven by the different number of shares of the two companies and a discount for illiquidity of Amadeus IT Group, S.A. shares. The acquisition of treasury shares by Amadeus IT Holding, S.A. to cover the exchange ratio started on April 7, 2016 and finalised on May 17, 2016, achieving the maximum number of shares planned. The corresponding 393,748 shares form part of the 2016 weighted average treasury shares. Upon registration of the merger public deed with the Commercial Registry of Madrid and the fulfilment of legal formalities, those shares will be delivered in exchange of the Amadeus IT Group S.A. shares in accordance with the exchange ratio mentioned above.

7 Other financial information 7.1 R&D investment

R&D investment (including both capitalised and non-capitalised expense) grew by 11.6% in the second quarter of 2016 vs. the same period in 2015, and by 13.1% in the first half. As a percentage of revenue, R&D investment amounted to 15.3% in the first half of 2016, broadly in line with the same period in 2015.

The growth in R&D is explained by:

_ Increased efforts related to product evolution and portfolio expansion (including merchandising and personalisation solutions), standalone implementations, as well as services (in particular services related to e-commerce).

_ Growing investment to develop a new-generation Guest Reservation System for the hospitality industry together with InterContinental Hotels Group, as well as higher resources devoted to our new businesses such as Airport IT or Travel Intelligence.

_ Increased resources dedicated to shifting the company’s platform towards open systems through next-generation technologies, as well as system performance optimisation.

_ The contribution from Navitaire and our 2015 acquisitions.


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It should be noted that a significant part of our research and development costs are linked to activities which are subject to capitalisation. The intensity of the development activity and the different stages in the ongoing projects have an effect on the capitalisation ratio in any given quarter, therefore impacting the level of operating expenses that are capitalised on our balance sheet.

R&D investment (figures in million euros)

Apr-Jun 2016

Apr-Jun 2015

% Change

Jan-Jun 2016

Jan-Jun 2015

% Change

R&D investment1 182.4 163.4 11.6% 349.2 308.8 13.1%

As % of Revenue 15.8% 16.5% (0.8 p.p) 15.3% 15.6% (0.3 p.p)

1. Net of Research Tax Credit.

7.2 Capital expenditure

The table below details the capital expenditure in the period, both in property, plant and equipment (“PP&E”) and intangible assets. Based on the nature of our investments in PP&E, the figures may show variations on a quarterly basis, depending on the timing of certain investments. The same applies to our investments in contractual relationships where payments to travel agencies may take place in different periods, based on the timing of the negotiations. In turn, our capitalised R&D investment may fluctuate depending on the level of capitalisation ratio, which is impacted by the intensity of the development activity, the mix of projects undertaken and the different stages of the various projects

Capex in the second quarter of 2016 amounted to €146.1 million, €31.3 million higher than in the second quarter of 2015. For the six month period, capex increased by 14.6% vs. the same period in 2015, amounting to €288.4 million. As a percentage of revenue, capex represented 12.7% in the first half of 2016, in line with prior year.

The increase in capex in the first half was the combination of:

_ A €46.2 million increase in capex in intangible assets, driven by (i) higher software capitalisations due to growing R&D investment and (ii) higher signing bonuses in the period.

_ A €9.5 million decline in capex in PP&E due to a normalisation of the 2016 investment, compared to an extraordinary high level in 2015, related to purchase of equipment for our new buildings in Nice and Bad Homburg.

It is important to note that a large part of our investments do not have any revenue associated at this stage (particularly in the case of new diversification initiatives), or are investments for projects that will produce revenue during the life of the contracts, on average 10 to 15 years in airline IT and 3 to 5 in Distribution, therefore affecting the capex as a percentage of revenue ratio in the short term. It is also important to note that a large part of our investments related to the migration of our clients is paid by the customer, although not recognised as revenue but deferred in the balance sheet. It is therefore capex which does not have a negative cash impact and where revenue does not get recognised as such, making the ratio of capex to revenue less relevant.


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Capital Expenditure (figures in million euros)

Apr-Jun 2016

Apr-Jun 2015

% Change

Jan-Jun 2016

Jan-Jun 2015 % Change

Capital Expenditure in PP&E 19.9 23.6 (15.6%) 45.3 54.8 (17.4%) Capital Expenditure in intangible assets 126.2 91.1 38.4% 243.1 196.9 23.5%

Capital Expenditure 146.1 114.7 27.3% 288.4 251.7 14.6% As % of Revenue 12.6% 11.6% 1.0 p.p. 12.7% 12.7% (0.1 p.p.)

8 Other additional information 8.1 Explanatory notes to the stand-alone statement of income

The stand-alone statement of income of the issuing Entity for the six-month period ended June 30, 2016 and 2015, respectively, is as follows:

The main variations for the first half of 2016 in comparison with the same period of 2015, are as follows:

_ Net trade revenues include, mainly, the dividends received from Amadeus IT Group, S.A. and other Group companies. This caption has decreased in comparison with the previous year because, Amadeus IT Group S.A. has not approved any dividend during 2016.

_ Additionally, in 2016 and 2015, the financial income from Group Companies corresponds to the accrued interests of the loan given to Amadeus IT Group, S.A., amounting to € 749 million and € 747 million in 2016 and 2015, respectively, with the funds obtained by the loan received by the same amount, from Amadeus Capital Markets, S.A.

Amounts in millions euros 30/06/2016 30/06/2015

UNAUDITED UNAUDITED

Services rendered 0.6 0.7Dividends received from Group companies 0.1 200.7Financial income from Group companies 18.8 18.8

Net trade revenue 19.5 220.2Operating expenses (5.6) (4.5)Operating Profit / (Loss) 13.9 215.7

Financial expenses (19.8) (19.0)

Financial Profit / (Loss) (19.8) (19.0)

Profit / (Loss) before Tax (5.9) 196.7

Corporate Income Tax 1.5 1.1

Profit / (Loss) before Tax (4.4) 197.8


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_ The financial result in 2016 and 2015 mainly registers the financial expenses of the loan received from Amadeus Capital Markets, S.A.; this entity handed over to the Company the funds obtained by the issuance of bonds in the Euro market on July 4, 2011 amounting to € 750 million.

_ The net result has decreased to € 4.4 million (loss) in 2016, from € 197.8 million (benefit) in the same period of 2015, mainly because Amadeus IT Group, S.A. has not approved any dividend during 2016.

8.2 Key risk factors and uncertainties

There are a number of risks and uncertainties of diverse nature, both related to our business and the industry in which we operate, as well as to the financial markets, which could affect our financial condition and our results of operations in the second half of 2016. The most significant are described below.

In addition to a number of hedging instruments to manage our interest rate and exchange rate related risks (as described in section 4), Amadeus regularly evaluates and puts in place a number of processes towards the identification, control and management of potential risks, and designs specific systems in order to manage and mitigate such risks.

8.2.1 Risks related to the current macro-economic environment

Amadeus is a leading technology provider and transaction processor for the global travel and tourism industry. Our business model is transactional and volume driven. We receive a fee per transaction from our customers - airlines and other travel providers. Our businesses and operations are therefore largely dependent on the worldwide travel and tourism industry, which is sensitive to general economic conditions and trends.

As reported in the World Economic Outlook Update (April 2016) from the International Monetary Fund, global economic growth projection stands at 3.2% for 2016, improving vs. the 3.1% global growth in 2015. This represents a 0.2 p.p. reduction vs. the initial expectation of 3.4% (from January 2016) driven by recent developments including market volatility, loss of growth momentum, continued headwinds for emerging economies as well as political (e.g. Brexit) and geopolitical events. Advanced economies should grow modestly in line with 2015 (1.9%). Emerging markets and developing economies are expected to grow by 4.1%, slightly higher than in 2015 (4.0%). However, countries such as Brazil and Russia are still in recession period, and China is facing a trade slowdown while transitioning towards a more balanced and sustainable growth model.

This negative impact from a sluggish and underlying fragile world economy has reduced the 2016 expected air traffic growth to 6.2%7 (initially set at 6.9%8) though falling travel costs continue help support passenger demand. By regions, Asia-Pacific and the Middle East show the highest growth levels (8.5% and 11.2% respectively), while all other regions (North America, Europe, Africa and Latin America) are expected to grow in the 4-5% range.

7 Revenue Passenger Kilometers reported in IATA Airline Industry Economic Performance – June 2016

8 Revenue Passenger Kilometers reported in IATA Airline Industry Economic Performance – December 2015


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The industry in which we operate is exposed to the macro-economic environment and any significant variation in the current expectation could have an impact on our performance. Nevertheless, Amadeus has had a positive track record in expanding its global presence in the distribution business, and signing new contracts and broadening its product portfolio in the IT Solutions business. These capabilities together with its successful transactional business model and the recent acquisitions should continue to provide resiliency and growth.

8.2.2 Execution risk related to the migration of new customers

An important part of our future growth is linked to a number of existing contracts within the IT Solutions business. Under these contracts, we have to undertake complex work in order to migrate our clients onto our platforms. Successful execution of these migration processes is key. We have a strong implementation track record in Airline IT, having successfully migrated over 126 airlines in the past (including some large and complex carriers), and we have significant in-house expertise. However, failure to deliver or to seamlessly implement our clients in Airline IT and in other new IT verticals (such as Hospitality IT, Rail IT, Airport IT) could negatively impact our future growth.

8.3 Environmental Matters

Amadeus’ operations involve relatively low environmental risks and impacts compared with other industries. Nonetheless, with a workforce exceeding 14,000 people, commercial presence in more than 195 countries and operating in a high-energy intensity industry, we acknowledge our responsibility to minimize the company’s environmental impact and to make our contribution to the sustainability of the travel industry.

Our environmental strategy is built upon three pillars:

8.3.1 Minimizing the environmental impact of Amadeus’ operations

Our environmental strategy addresses the impact of our operations and the concerns of travel industry stakeholders, including customers, providers, employees, partners, regulatory bodies and society in general.

We believe our foremost responsibility is to address the environmental impact of our operations. Fortunately, we often find common economic and environmental interests that facilitate action in reducing resource consumption. Amadeus Environmental Management System (EMS) is the principal tool we use in Amadeus to address our environmental impact. The Amadeus EMS includes a systematic approach by which we:

_ Measure resource consumption _ Identify best practices _ Implement actions for improvement and _ Follow up results

The items covered by the EMS include energy use, paper consumption, water use, waste generated and greenhouse gas emissions. On the other hand, the EMS’ scope includes the top 11 Amadeus sites by number of employees, which together represent more than 75% of the total workforce and an estimated 90% of the total resource consumption of the Amadeus Group worldwide. Importantly, the Amadeus data centre in Erding, Germany, is included in the EMS.


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The sites that are not included in the EMS also are encouraged to follow the best practices identified in the EMS. In addition, some sites promote their own local environmental initiatives, which range from activities as diverse as car-pooling for commuting, recycling campaigns, reducing paper used in office through the use of specific software that helps to control and minimise paper consumption, etc.

8.3.2 Helping our customers to improve their environmental performance

A principal component of Amadeus’ value proposition is based on increasing operational efficiencies for our customers through our IT solutions. Often, the increased efficiencies mean more productivity, reduced costs, better use of infrastructure and environmental benefits.

In the following paragraphs we describe four examples of Amadeus solutions that contribute to improve the environmental performance of our customers.

i) Amadeus Altéa Departure Control Flight Management Thanks to the use of optimization tools, Amadeus Altéa Departure Control System (DCS) Flight Management (FM) helps customers to save a significant amount of fuel and greenhouse gas emissions, compared with less sophisticated technologies currently in the market.

In order to quantify the savings described above, Amadeus and Finnair worked together to analyse a sample of more than 40,000 flights from Finnair, of which approximately half were using Amadeus Altéa and the other half the previous departure control system used by Finnair. The analysis proved a higher precision from Altéa DCS FM when estimating the zero fuel weight of the aircraft (EZFW). This increased precision translates into improvements in the estimation of the fuel needed for each flight, resulting in significant savings in costs, fuel and emissions.

ii) Amadeus Airport Sequence Manager Amadeus Airport Sequence Manager helps airports to optimise the flight departure process. The solution relies on sophisticated sequencing algorithms to calculate the Target Start-Up Approval Time (TSAT) for each departing flight. This allows the aircraft to leave the stand at the last possible moment, reducing fuel burn, economic costs and environmental impact, enabling better allocation of resources. Runway capacity can therefore be optimised at times of congestion, or de-icing processes taken into account during winter season. As a collaborative tool, Amadeus Airport Sequence Manager creates a shared situational awareness among all airport partners.

Amadeus launched Airport Sequence Manager in collaboration with Munich Airport – one of the busiest European airports, with nearly 400,000 aircraft movements per year.

iii) Amadeus Common Use Service In 2014, Amadeus’ cloud-based Airport Common Use Service (ACUS) was launched. With ACUS, airports are able to transfer hosting and development responsibilities to Amadeus. Our full, thin client solution and application virtualisation approach reduce the requirement for costly on-site hardware equipment, servers and local data centres, as well as IT maintenance. This generates substantial operational savings for the airport and reduces the overall environmental footprint. Energy consumption is substantially lower compared to traditional common use solutions.

iv) Amadeus Schedule Recovery Amadeus Schedule Recovery was launched in 2015. Amadeus Schedule Recovery minimises disruptions to airline operations caused by external events such as bad weather or air traffic


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congestion. The solution, among other features, helps to accommodate to the new situation, minimising operational costs and environmental impact.

8.3.3 Cooperation with travel industry stakeholders in sustainability projects

The environmental sustainability of the travel industry is a common objective for all industry stakeholders. At Amadeus, we offer our data management capability, technology, expertise and network to make our contribution towards industry sustainability.

We include below some examples of our participation in projects with other stakeholders in the industry in relation to environmental sustainability objectives.

i) Industry standards for carbon calculation per passenger in aviation The calculation of emissions per passenger in aviation is complicated for various reasons and therefore, different calculation methodologies offer considerably different emissions estimations for the same itinerary. It is important that a standard calculation methodology complies with requirements related to commercial neutrality, global reach and the legitimacy to represent the industry.

The International Civil Aviation Organisation (ICAO) and Amadeus reached an agreement by which Amadeus uses ICAO’s carbon calculator to display in our distribution platforms the CO2 emissions estimations per passenger; and by doing this we promote the use of ICAO’s carbon calculator and help to raise environmental awareness in the sector. The agreement was initially signed in 2009 and renewed in 2015.

ii) Participation in common projects with industry stakeholders It is fundamental that industry stakeholders work together and agree on strategies and responsibilities towards sustainability. From Amadeus we participate in various forums and specific projects with trade associations like the World Travel and Tourism Council (WTTC) or United Nations World Tourism Organisation (UNWTO).

Regarding our sustainability efforts, it is important for us to receive feedback from external sustainability indices, in order to understand how we perform as compared to other companies, to identify areas of focus for the future and to improve the quality and transparency of our non-financial reporting. Since 2012 Amadeus has remained for four consecutive years among top sustainability scorers and therefore, included in the Dow Jones Sustainability Index (DJSI). Additionally, Amadeus’ score in the latest edition of the Carbon Disclosure Project (CDP) climate change questionnaire was 98 in disclosure (range 0 – 100) and B in performance (range E-A).

Finally, the Amadeus risk and opportunity analysis regarding climate change identifies physical, regulatory and reputational risks related to the impact of climate change in our operations, although the probability and impact of these risks remain relatively low. On the other hand, the opportunities for Amadeus business related to climate change are linked to the possibility of launching new products and services that help customers to address climate change impacts, as well as to improve our competitive positioning.


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8.4 Treasury shares

The reconciliation of the carrying amounts as of June 30, 2016, and December 31, 2015, is set forth in the table below:

Treasury Shares Millions of euros

Balance at December 31, 2015 2,214,916 29.3

Acquisition 615,302 24.1

Retirement (16,265) (0.0)

Balance at June 30, 2016 2,813,953 53.4

During the period, the Group acquired 615,302 shares from which 393,748 were acquired under the Joint plan for the merger by absorption of Amadeus IT Group, S.A. into Amadeus IT Holding, S.A. (the “Merger Plan").

The historical cost for treasury shares retired (primarily for the settlement of the PSP, RSP and Share Match Plan) is deducted from the “Additional paid-in capital” caption of the consolidated and condensed statement of financial position.

8.5 Subsequent Events

On July 15, 2016, the Group has paid the bond issued under the "Euro Medium Term Notes Programme", registered with the Financial Conduct Authority (FCA) in London. This bond was issued on July 15, 2011 and had a notional of €750.0 million.

In relation to this payment, the Group has withdrawn, on July 14, 2016, €360.0 million from the Revolving Loan Facility entered on April 26, 2016; and during the month of July 2016 has issued notes under the Euro-Commercial Paper (ECP) programme amounting to €300.0 million. The remaining €90.0 million of the bond payment has been financed with the Cash and cash equivalents balance.

It is expected to increase the current €500 million ECP programme of Amadeus Finance B.V. up to €750 million within the third Quarter of 2016.


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9 Key terms _ “ACO”: refers to “Amadeus Commercial Organisation” _ “ACUS”: refers to “Amadeus Airport Common Use Service” _ “Air TA bookings”: air bookings processed by travel agencies using our distribution platform _ “BCG”: The Boston Consulting Group _ “CRS” : refers to “Computerised Reservation System” _ “Distribution industry”: defined as the total volume of travel agency air bookings processed by

the global CRS. It excludes air bookings made directly through in-house airline systems or single country operators, the latter primarily in China, Japan and Russia, which together combined represent an important part of the industry

_ “ECP”: refers to “European Commercial Paper” _ “EIB”: refers to “European Investment Bank” _ “EPS”: refers to “Earnings Per Share” _ “FTE”: refers to “full-time equivalent” employee _ “GDS”: refers to a “global distribution system”, i.e. a worldwide computerised reservation

system (CRS) used as a single point of access for reserving airline seats, hotel rooms and other travel-related items by travel agencies and large travel management corporations

_ “GDP”: refers to “Gross Domestic Product” _ “IATA”: refers to “International Air Transport Association” _ “IFRS”: refers to “International Financial Reporting Standards” _ “JV”: refers to “Joint Venture” _ “KPI”: refers to “key performance indicators” _ “LTM”: refers to “last twelve months” _ “n.a.”: refers to “not available” _ “NDC”: refers to “New Distribution Capability” _ “n.m.”: refers to “not meaningful” _ “PB”: refers to “passengers boarded”, i.e. actual passengers boarded onto flights operated by

airlines using at least our Amadeus Altéa Reservation and Inventory modules or Navitaire New Skies

_ “p.p.”: refers to “percentage point” _ “PPA”: refers to “purchase price allocation” _ “PP&E”: refers to “Property, Plant and Equipment” _ “PSS”: refers to “Passenger Service System” _ “RTC”: refers to “Research Tax Credit” _ “TA”: refers to “travel agencies” _ “XML”: refers to “eXtensible Markup Language”


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10 Appendix: Financial tables 10.1 Statement of financial position (condensed)

Statement of Financial Position (figures in million euros)

30/06/2016 31/12/2015 Property, plant and equipment 443.2 448.0 Intangible assets 3,148.8 2,612.3 Goodwill 2,756.8 2,478.9 Other non-current assets 186.7 148.4

Non-current assets 6,535.5 5,687.6 Current assets 678.5 604.9 Cash and equivalents 452.5 711.7 Total assets 7,666.5 7,004.2 Equity 2,502.8 2,297.5

Non-current debt 1,759.2 1,289.1 Other non-current liabilities 1,247.9 1,218.1

Non-current liabilities 3,007.1 2,507.2 Current debt 866.0 1,033.8 Other current liabilities 1,290.6 1,165.7

Current liabilities 2,156.6 2,199.5 Total liabilities and equity 7,666.5 7,004.2 Net financial debt (as per financial statements) 2,172.7 1,611.2

Comparison of balances as of June 30, 2016 vs. December 31, 2015 is highly affected by the consolidation of Navitaire from January 26, 2016. In particular, intangible assets and goodwill increased mainly driven by this acquisition. The final allocation will be determined during the purchase price allocation exercise that will be carried out in the coming quarters.


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10.2 Financial indebtedness

Indebtedness (figures in million euros) 30/06/2016 31/12/2015 Covenants definition1 European Commercial Paper 0.0 196.4 Short term bonds 750.0 750.0 Long term bonds 900.0 900.0 EIB loan 325.0 337.5 Term loan (Navitaire) 500.0 0.0 Other debt with financial institutions 32.0 43.0 Obligations under finance leases 93.1 96.3 Covenant Financial Debt 2,600.0 2,323.3 Cash and cash equivalents (452.5) (711.7) Covenant Net Financial Debt 2,147.5 1,611.6 Covenant Net Financial Debt / LTM Covenant EBITDA 1.31x 1.09x

Reconciliation with financial statements Net financial debt (as per financial statements) 2,172.7 1,611.2

Interest payable (44.7) (19.4) Deferred financing fees 13.3 12.5 EIB loan adjustment 6.3 7.3 Covenant Net Financial Debt 2,147.5 1,611.6

1. Based on the definition included in the senior credit agreement.

Covenant net debt amounted to €2,147.5 million as of June 30, 2016, (1.31 times to covenant last twelve months’ EBITDA). The main changes affecting our debt structure in the first half of 2016 were:

_ The drawing on January 25, 2016 of the €500 million bank loan facility agreed in July 2015 (structured as a “club deal” financing entered into with twelve banks, with a five-year term and maturity dates in 2019 and 2020), to partially finance the acquisition of Navitaire.

_ The drawing on April 26, 2016 of a new €500 million Single Currency Revolving Loan Facility, with a five-year term, to be used for working capital requirements and general corporate purposes, including the refinancing of the €750 million notes (part of the Euro Medium Term Note Programme) maturing in July 2016. The €500 million Facility B of the €1,000 million Revolving Loan Facility executed in March 2015 was cancelled simultaneously.

_ The net repayment of €196.4 million related to the Multi-Currency European Commercial Paper (ECP) programme.

_ The repayment of €12.5 million related to the European Investment Bank Loan.

Post-closing of the second quarter, we refinanced the €750 million notes (part of the Euro Medium Term Note Programme), which matured on July 15, 2016 with a combination of the Revolving Loan Facility signed in April 2016 (mentioned above), an issuance of European Commercial Paper and cash available.


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Reconciliation with net financial debt as per our financial statements Under the covenant terms, Covenant Financial Debt (i) does not include the accrued interest payable (€44.7 million at June 30, 2016) which is treated as debt in our financial statements, (ii) is calculated based on its nominal value, while in our financial statements our financial debt is measured at amortised cost, i.e., after deducting the deferred financing fees (that correspond mainly to fees paid upfront in connection with the set-up of new credit agreements and amount to €13.3 million at June 30, 2016), and (iii) does not include an adjustment for the difference between the nominal value of the loan granted by the EIB at below-market interest rate and its fair value (€6.3 million at June 30, 2016).

10.3 Group cash flow

Consolidated Statement of Cash Flows (figures in million euros)

Apr-Jun 2016

Apr-Jun 2015

% Change

Jan-Jun 2016

Jan-Jun 2015

% Change

EBITDA 458.3 389.1 17.8% 907.1 778.8 16.5% Change in working capital (79.6) (66.8) 19.1% (72.3) (76.7) (5.8%) Capital expenditure (146.1) (114.7) 27.3% (288.4) (251.7) 14.6% Pre-tax operating cash-flow 232.6 207.6 12.1% 546.4 450.4 21.3% Taxes (74.2) (89.9) (17.5%) (102.4) (100.9) 1.5% Interest and financial fees paid (5.7) (3.4) 69.4% (26.8) (10.8) n.m. Free cash-flow 152.7 114.3 33.6% 417.3 338.7 23.2% Equity investment (3.1) (12.8) (76.2%) (767.9) (12.8) n.m. Cash-flow from extraordinary items (1.6) (3.7) (55.3%) (3.2) 0.8 n.m.

Debt payment (140.6) (67.8) 107.2% 266.8 125.4 112.7%

Cash to shareholders (24.1) (89.6) (73.1%) (172.6) (431.4) (60.0%) Change in cash (16.6) (59.6) (72.1%) (259.6) 20.7 n.m. Cash and cash equivalents, net1

Opening balance 468.6 453.0 711.6 372.8 Closing balance 451.9 393.4 451.9 393.4

1. Cash and cash equivalents are presented net of overdraft bank accounts.

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