Welcome to the Amadeus F irst Quarter 2021 Presentation Webcast. The Management of Amadeus will run you through the presentation, which will be followed by a question-and-answer session. You can ask a question on the phone by dialing zero one on your telephone keypad at any moment during the presentation. I am now pleased to hand over to you, Mr. Luis Maroto, President and CEO of Amadeus. Please, sir, go ahead. Good afternoon, ladies and gentlemen, and welcome to our First Quarter 2021 Results Presentation, and thanks a lot for joining us today. Till is with me. I will focus, as usual, on our most important developments in the quarter. Till will elaborate on the key financial aspects. I will begin today's presentation with a market overview and evolution of our volumes over quarter one. I'm on slide four. As you know, we have started the first quarter with a resurgence of the pandemic and more travel restrictions imposed in many parts of the world. IATA global air traffic evolution relative to 2019 slightly deteriorated in January with -72%. February -74.7% compared to the growth rates we had seen over the fourth quarter. However, mirroring the evolution of the pandemic, in the month of March, we saw an important uptick in global RPK evolution relative to prior months, growing at -67% when compared to March 2019. We had improvements in our air bookings as well as in passenger boarded performances, making March the best-performing month since the start of the pandemic. Current daily trading data also shows an improvement in April over March, beyond any Easter holiday effects. In terms of Amadeus, travel agency air bookings, this declined by 79% in the first quarter of the year compared to the first quarter of 2019, a small improvement from the fourth quarter's performance. In the month of January, we saw volume growth deteriorate with respect to December, driven by the heightened COVID-19 incidents across regions. However, in February and March, we saw continued improvement in bookings growth performance in most regions, led by North America, Central, Eastern, and Southern Europe, mostly by Russia. Furthermore, in April, our daily booking data is showing an improvement in bookings performance compared to March, led by NORAM and LATAM, but also with a good uptick in Western Europe. Driven by the volume evolution in the first quarter, our distribution revenue declined by 77% relative to the first quarter of 2019, or by 58% relative to 2020. With regards to our passengers boarded, our volumes continue to perform in line with IATA-reported traffic, albeit slightly ahead. Compared to the first quarter of 2019, Amadeus passengers boarded contracted by 71%, an improvement over the 72.4% passengers boarded reduction we saw in the fourth quarter of 2020. All regions except Western Europe reported better Passengers Boarded performance, most notably North America, followed by Central, Eastern, and Southern Europe, and also by Middle East and Africa. Western Europe volume growth deteriorated in the first quarter versus the fourth quarter, impacted by the elevated COVID cases and the reintroduction of travel restrictions. Into April, here as well, our daily data points to continued progress and performance improving over March. IT Solutions revenue in the first quarter contracted by 46%, outperforming our Passengers Boarded growth, supported by revenues, which showed resiliency in the period as they are not directly linked to airline traffic or not driven by transactions, particularly in the area of Hospitality and Airport IT. To recap on the volumes, overall evolution we are seeing we are optimistic of how things are developing. The sentiment in the industry is more positive. As the vaccination rollout programs advance, not free of setbacks, we expect to see the degree of immunity evolving in the next months. Domestic travel in some markets has surpassed 2019 levels. Airlines are communicating improving expectations on corporate travel bubbles, and corridors are opening, and the industry is moving to support safe travel. Recently, on April 21st, we saw IATA update its global air traffic growth forecast for the year to -57% versus 2019, compared to the -62% to -67% scenario framework IATA published in February, taking a more positive view on this year. On to slide five, to briefly recap on our financial performance. As a result of these volumes dynamics in the first quarter of the year, we compared the same period in 2020. Amadeus group revenue declined by 51.4%. We achieved positive EBITDA in the period of EUR 54 million, and had an adjusted profit loss amounting to EUR 83 million. Amadeus financial performance was supported by improving volumes and further fixed cost optimizations. We have made good progress with our cost reduction plans. In the first quarter of the year and compared to the first quarter of 2020, our P&L fixed costs declined by EUR 93 million or by 20.4%, excluding the implementation costs and bad debt. CapEx, also part of our fixed cost reduction plan, declined by EUR 51 million or by 33%. Therefore, in aggregate, we have had a fixed cost reduction of almost EUR 145 million in the quarter in line with our plans. We had positive free cash flow in the first quarter of EUR 31.4 million or -EUR 11.9 million, including cost-saving implementation cost. Finally, liquidity available remains strong and increased to EUR 3.8 billion as of March 31st, supported by cash, short-term investments, and undrawn revolving credit facility. Please turn to slide six. I may share an update on our recent commercial developments. We saw commercial activity progressing well in the quarter, and in distribution, we signed 21 new contracts or renewals of agreements with airlines. On the travel agency side, China's Trip.com Group, parent to Ctrip, Skyscanner, and Qunar, will adopt one of our travel agency IT Solutions, Amadeus Custom Search solution, to improve international airline content search functionality. Additionally, Taiwan's largest online travel agency, ezTravel, is implementing Amadeus Travel API, which gives online travel agencies access to new airline content and fares via NDC connectivity. In Airline IT, Qantas contracted our Amadeus Airport Companion App. Air Arabia contracted Amadeus Altéa Departure Control – Customer Management and Flight Management, and Fiji Airways implemented Amadeus Segment Revenue Management System. In Hospitality and in Airport IT, we continue to renew contracts and to grow our respective customer bases. The Park Hotels and Q Hotels contracted Amadeus iHotelier Central Reservation System. Louvre Hotels Group signed for Amadeus Digital Media. Langham Hospitality Group signed for Amadeus Sales & Event Management and Amadeus Service Optimization. H-Hotels signed for our Demand360 BI solution. In Airport IT, we introduced Japan's first end-to-end biometric boarding process in partnership with Narita Airport and NEC. Also, Finavia in Finland and Cambodia airports contracted for Amadeus Flow, our new integrated cloud solution for passenger handling. Additionally, during the quarter, we launched a new solution aiming to support the recovery of travel. Air Europa is the first airline to pilot Traveler ID health capability, which allows passengers to certify they have the required health documentation at check-in without having to leave the airline's website or app. This new Amadeus solution is fully integrated into the airline's IT system and aims to strengthen passenger confidence by allowing a more touchless travel experience, reducing the need to interact with airline staff. From a corporate perspective, I would like to highlight, as you may have seen, that Bill Connelly, who has been on Amadeus Board since the summer of 2019 and currently serves as Vice Chairman of the Board, will succeed José Antonio Tazón as Chairman of the Board after our AGM in June. This change is part of a broader Board renewal and succession plan which commenced back in 2017. I would like to express my heartfelt gratitude on behalf of Amadeus to José Antonio for his distinguished and long-standing service to the company, and we also warmly welcome William Connelly as Chairman. I know William will bring his own creativity, enthusiasm, and many past experiences to this new role. Before I pass on to Till, I would like to recap on our areas of focus and goals coming out of COVID. Please turn to slide seven. Thirdly, our central technology, which we have consistently evolved over the years with unparalleled depth of investment. As you know, we are accelerating our shift to the public cloud with Microsoft. We are excited to leverage Microsoft's AI and model tools, and we have initiated work with Microsoft to co-innovate. I must add customer reaction to our partnership with Microsoft has been very positive. Microsoft is viewed as a highly valuable B2B player and is already a provider to many of our existing and potential customers. On Airline IT, through Altéa and Navitaire, we cover the entire market spectrum from low-cost carriers to full-service carriers with technological offerings catering to each segment's specific requirements through well-invested and broad portfolio solutions. We are uniquely placed to serve groups combining both types of carriers. We are investing in expanding the functionality breadth of Navitaire, as well as into next-gen capabilities to Altéa, and working to enhance the interoperability of both. Additionally, we are growing our platform capabilities to offer increased openness and self-service visibility. We are seeing great engagement across the industry, to deliver NDC. Important, too, is IATA's ONE Order standard, and we are investing in this technological evolution as well to serve our customers' evolving needs. With regards to travel agency distribution, we are fully committed to NDC and expect to continue to sign agreements with airlines and travel agencies. We are confident that our ability to integrate NDC in a seamless and fully integrated manner will bring shared gains. Our scale and customer proximity will also further enhance our value proposition, particularly in those segments and geographies where our presence has been smaller in the past. In Hospitality, we see important potential for Amadeus. We have the broadest base of solutions in the industry, and we cover the entire customer segment spectrum. We are clear global leaders in group and event IT, as well as in business intelligence and media solutions. We have a unique cloud-native next-generation CRS and PMS offering, both integrated and modular, with full attribute-based selling capabilities, which for many hoteliers is where the future of hotel retailing lies. There is a clear opportunity for us to continue attracting customers in the marketplace, and we also have a good cross-sell opportunity given the number of touchpoints. We have a strong penetration in NORAM, the largest hospitality market, and see a large growth opportunity in continuing to drive growth in international markets. With respect to Airport IT, we see an attractive opportunity as well, albeit at a more granular pace. Our platform is tightly integrated to over 200 airline systems, removing the need for costly individual connectivity, allowing deployment of flexible service that can be scaled up or down. With our cloud-based model, airports can become free of legacy online infrastructure, and as a single open platform, all innovations like biometric are shared across our expanding ecosystem of airports. With intelligence at the core of the platform, rich insights can be added from across our travel ecosystem. Our state-of-the-art offering delivers an automated and increasingly touchless experience, setting the trend of the future. In payments, our aspiration is to be the global leader in travel payments by offering innovative, data-driven, and frictionless solutions. We believe we have important competitive advantages in this space and expect to continue to increase our penetration of the sector through our merchant services offering, and also to further diversify into travel adjacent verticals. We expect as well continued progress in our B2B Wallet penetration for Air and Non-Air Content and to further expand geographically. To conclude, I will say that we don't know how long the recovery of travel is going to take, but we are confident that travel will come back. As that happens, our goal at Amadeus is growth. Growth that will come from demand to travel, which has advanced historically at a faster pace than global GDP, and growth from a continued market share expansion across our portfolio of businesses, supported by the quality of our technology and our consistent approach to our investments. I will now pass on to Till for further details on our financial performance. Thank you. Thank you, Luis, and hello, everyone. Now please turn to slide nine for an overview of our revenue in the period. As Luis has explained, our group revenue declined by 51.4% in the first quarter of 2021 relative to the same quarter last year. This evolution resulted from distribution revenue declining by 57.9%. This was driven by the decrease in volumes. Further, although the underlying air booking average pricing declined, impacted by a higher weight of local bookings. This effect was more than offset by a positive cancellation provision effect and contractions in other revenue lines, such as revenues from travel agency IT Solutions at softer rates than the travel agency bookings decline. IT Solutions revenue decreased by 46.1%, driven by the airline PB volumes decline. IT Solutions revenue outperformed Passengers Boarded growth, supported by non-transactional revenues and revenue streams not directly linked to airline traffic, mostly in Hospitality and Airport IT. Please turn now to slide 10. In the first quarter of 2021, our EBITDA, excluding implementation costs, amounted to EUR 53.7 million, an 84.6% contraction versus the same quarter in 2020, resulting from the combination of the revenue decline just explained, a 63.7% cost of revenue reduction, very much linked to the booking volume evolution, and a 21% decrease in our combined personnel and other operating expenses cost line supported by our cost savings plan. Below EBITDA, D&A expense declined by 14.8% due to less PPA amortization and less ordinary D&A. Net financial expense increased by EUR 20.9 million, primarily caused by the higher gross debt and cost of debt resulting from the new financings taken out in 2020. Income taxes amounted to an income of EUR 37.5 million. The group income tax rate was 28%. The combination of a contraction in operating results, a higher financial expense and tax income resulted in a loss of EUR 83.1 million in adjusted profit in the first quarter of 2021. Turning now to page 11 to review our cash flow evolution. Let's start with CapEx. In line with our cost-saving program goals in the first quarter of 2021, CapEx declined by EUR 47.7 million or 31.3% versus the same period of 2020. On the back of a lower CapEx for intangible assets by EUR 42.3 million or 30.7% less, and a reduction in CapEx for property, plant, and equipment by EUR 5.1 million or 36.9% less. The decrease in CapEx for intangible assets was mainly driven by lower capitalizations from software development, resulting from a 28.7% decline in R&D expenditure, where we followed a selective approach in the context of COVID-19, prioritizing investment into most strategic projects. Moving on to our free cash flow. In the first quarter of 2021, Amadeus free cash flow amounted to an inflow of EUR 31.4 million or an outflow of EUR 11.9 million, including the cost-saving implementation costs paid in the quarter. Free cash flow was mostly impacted by our EBITDA reduction, a reduced CapEx amount relative to last year, and a cash inflow from change in working capital. Free cash flow in Q1 benefited from no interest paid in the quarter following our debt payment schedule, and secondly, timing differences in collections and payments. Please note that in the second quarter of 2021, we expect free cash flow to deteriorate with respect to Q1 impacted by quarterly seasonality, which you will also have seen in prior years. For instance, due to employee-related payments and also due to timing differences in collection and payments. As a result, we estimate a change in working capital in Q2 ranging between -EUR 100 million to -EUR 120 million. Additionally, we will have about EUR 30 million quarterly interest payments from Q2 to Q4 2021. I would add, however, that compared to Q2, in Q3 we expect free cash flow to improve. Please turn to page 12 to review our progress on our planned fixed cost optimization. In the first quarter of 2021, we achieved a fixed cost reduction relative to 2020, together in the P&L and CapEx combined of EUR 143.4 million. As explained before, our cost savings definition refers to the change in costs, excluding cost-saving program implementation costs and bad debt. As Luis was saying, this fixed cost reduction is according to our plans, and it supports our confidence in achieving the 50 million cost efficiencies in 2021 over 2020 in order to achieve EUR 550 million cost savings versus 2019. For 2021, during the year, the quarterly phasing will be directionally as follows. Q1 showing the highest year-over-year savings as our cost savings program was launched with the beginning of the pandemic towards the end of March 2020, hence the prior year Q1 was still showing a kind of normal cost run rate. Going forward, excluding bad debt and implementation costs in Q2 2021, we expect similar to lower costs than in Q2 2020. As per our plans, in Q3 and Q4, we will allow for some costs to increase compared to these quarters in 2020, making us confident in our ability to achieve the additional EUR 50 million fixed cost savings target for the year. I would add that on the discretionary cost side, the trend we are seeing is a bit better than what we had originally forecasted. With regards to the broadly EUR 200 million of implementation costs related to our cost-saving programs, we estimated at the beginning of it, in the first quarter of 2021, we incurred implementation costs amounting to EUR 18.3 million, thus totaling to EUR 187.4 million incurred to date. The balance to the expected total EUR 200 million of implementation costs paid will be incurred throughout the remainder of 2021. Finally, of these implementation costs, EUR 43.3 million were paid out in the first quarter, totaling to EUR 77.4 million so far. The balance will be paid out through 2021 and early 2022. With this, we have now finished the presentation and are ready to take any questions you may have. Ladies and gentlemen, the Q&A session starts now. If you wish to ask a question, please press zero one on your telephone keypad. Thank you. The first question comes from Julian Serafini from Jefferies. Please go ahead. Hi, thank you. Two questions from myself. Number one, Luis, if I heard you correctly, you were mentioning the integration of Altéa and Navitaire earlier today. Can you expand on that a little bit? I guess, how much are you integrating those two platforms and what are you trying to achieve with that? Second question for Till on the cost savings on how much was actually paid out in cash. You mentioned the balance of the payments to happen throughout 2021 and into 2022. Should we be assuming roughly EUR 30 million-EUR 40 million per quarter or so in cash payments then for the program costs? Thank you. Okay. With regards to the integration, this is not new. We have been always working in how the two platforms can optimize the fact that some airline groups are having different airlines using different systems. What we always want to do is when we have, imagine, whatever disruption or there is a change from one system to the other, it can happen in a better way and the information can be handled at group level. Again, it's not new, but we continue evolving into optimizing that in a better way, especially for the groups of airlines. There are many groups around the world, as you know, that they have Full-Service Carriers and Low-Cost Carriers, and in some cases using both systems. For us, it's important to provide a good integration between the two systems that has been evolving during the last years. Taking the question in terms of cost saving, payout, and cash flow. To date, we've paid out EUR 77 million roundabout, with about EUR 43 million in the first quarter. You've got in essence as a balance, kind of about EUR 120 million left. Again, the majority I expect to be paid out in this fiscal year, so in 2021, with maybe a little bit left for 2022. You can assume a relatively even phasing more or less, on the payout of that, call it about EUR 40 million roundabout in the quarters to come. Okay. Thank you both. Thank you. The next question comes from Stacy Pollard from JP Morgan. Please go ahead. Ms. Stacy Pollard, you have the floor. Thank you. We cannot hear you, Stacy. I don't know if you are muted or. Is this better? Can you hear me? Hello? Yeah. Hello. Yes, we can. Oh, okay. Sorry. A few quick questions from me. Do you think that the travel recovery is in line with your expectations to the degree that your cost savings plan is definitively sufficient to carry you indefinitely forward? That's one. Secondly, as always, I'm interested in your pipeline on the Hospitality side, and perhaps if you've seen any change in the competitive environment there, or perhaps your relative positioning. Third question, just around the Microsoft partnership, can you remind us of the timing for that and sort of savings that you expect to achieve from that over time? Let me start with the first two, and Till, if you can handle the third one. Last year, how we have seen the industry evolving. Last year, we were a bit more optimistic about the recovery. We thought it would be faster when we were thinking about that in October last year. The situation was worse at the beginning of the year. We adjusted our expectations based on IATA and the situation that was happening there, and especially now with the latest release. In terms of cost savings, mainly now is what Till has explained. We keep the commitment of the EUR 550 million structural costs. It is true, he also mentioned that for the part that we expect to come back, which is related to things like travel or discretionary costs that should come back. This will depend on how things evolve. Our assumption today is that the recovery will happen, especially in the second half, and therefore, that's why we expect some of these costs, that in the first quarter and last year, were not happening. This was already part of our equation with the net of the EUR 550 million. We were assuming that part of this cost will come back, and they were not in the first quarter. That's why we expect to achieve the structural costs as we have committed. In terms of discretionary costs, some of them will come back. Of course, if the situation is not improving as we expect, these discretionary costs will not come back as expected. Today, our assumption, based on the projections and based on the latest information of the industries, that the recovery should happen, and therefore, we will stick to the numbers that we have provided. Second question about Hospitality. As you mentioned, you always ask, and I always answer similarly. Of course, we have a pipeline. We expect to really be able to keep the momentum of this business and to sign additional contracts. We keep engaging conversations with customers. Again, difficult to really tell you more than that. I think it's a healthy pipeline. We are optimistic about this business, and hopefully, we will keep signing and enlarging our hotel portfolio of customers in our different products. More than that, it's difficult to really provide you with more information about the discussions that we are having today with customers. With regards to savings and Microsoft deal, would you like to comment on that? Yeah, just quickly on the Microsoft deal. We are progressing well in terms of going ahead. Just as a reminder, the timeline of the whole implementation of the Microsoft deal, the IaaS part, the actual migration to cloud. We said three to five years. We also, look, there are efficiencies that we are benefiting from due to this migration. Those efficiencies, as we said before, we would like to reinvest into further growth. That's our plan on that end. That's great. Thank you. Thank you. The next question comes from Adam Wood from Morgan Stanley. Please go ahead. Hey, good afternoon. Thanks for taking the question, Luis and Till. I'll go for three as well, please. Maybe just first of all, you mentioned on the GDS side that the change in the cancellation provision helped offset some mixed impact on the price per booking there. Could you maybe just give us an order of magnitude and any idea of what that price per booking would have been absent that cancellation change? Then if we just think a little bit longer term, we have a lot of discussions with investors around the airlines using this as an opportunity to renegotiate. I know a lot of what's changing in GDS is tech driven and not business driven. I guess the airlines won't ignore the opportunity to try to change things. In the negotiations you've had so far, is there anything that makes you think that when we come out of this, the price per booking in GDS will be materially different from where it is now? Maybe just finally, a little housekeeping one. How much government benefit support was there still in the first quarter of this year that may fall out in following quarters? Thank you. Let me take the first one. Absolutely. Yeah. The GDS one in terms of the cancellation provision. You did see, in fact, a positive evolution on the distribution revenue per booking of 7.8%. As I said, there was a positive benefit from the cancellation provision movement. Remember last year, we obviously built it up, because we were seeing, in essence, the start of the pandemic coming. However, even if you exclude this cancellation provision positive in it, we would've still seen a positive evolution in our revenue per booking. Hence, it would have expanded. The reason or the drivers for this expansion in our revenue per booking is, in essence, a positive impact from non-booking revenue, which declined at a slower pace versus booking. That was driven by subscription-based revenues that we've got in there as well. The second one that helped us on that line was an increase in Non-Air booking pricing. There's a little bit of a mix shift in there. Of course, you had the negative, which is pretty much in line with the market, which is coming from the higher weight of local bookings. Net-net, excluding the cancellation provision, we would have still seen, or we are still seeing, a positive evolution on that at the moment. Let me take the second one, Adam. Look, we don't expect medium term, a fundamental change. Of course, short term, yes, because of mix, where you see more local and domestic bookings. Of course, this has an impact, definitely. If you were thinking or you were talking about the negotiations and the fees of the different areas, of course, you have different negotiations with different airlines, as we have always had during many years. I don't expect a significant change coming from that, as we have seen in the last 10 years. Okay. Not really coming from that. The mix effect is the one that could impact us depending on how the evolution comes. The third question? The third question on benefits from government support. In essence, we still have got a number of schemes in place that support us on, it's basically research credits that assist us on the tax line. That is where you see them as basically an income coming through. Those have been in place previously, and they are still in place in the first quarter and in essence, in this year. No change if you compare that from a, say, year-over-year comparison. Again, as Till said, this is coming from many, many years. This is all this research tax that we got even in France. It is not new at all, related to the pandemic. What we had in the pandemic last year was some delays of payments in social securities. This is over now, as we paid these amounts, the majority of that in the last quarter of last year. You correct me, Till, if I am wrong. Yes. There's not really nothing new coming from subsidies from government related to COVID or something like that at this point, no. That's perfect. That's very clear. Thank you very much. Thank you. The next question comes from Neil Steer from Redburn. Please go ahead. Hi. Thank you very much indeed for taking my questions. I just have a few quick ones, if I may. Just on the back of your response to the first of the last questions from Adam, can you give us a sense for what proportion of the distribution revenues are subscription based and not transaction based, please? Okay. Do you want to first go with your other questions? Okay. Sorry. The other questions are, Luis, you spoke a moment ago about the potential to essentially have on a sort of common platform, Navitaire and Altéa. You mentioned that many of your customers essentially are operating both a low-cost carrier model and a network carrier or full service model. I just wondered to what degree are you facilitating the airlines to move and make much greater use of Navitaire in place of Altéa, and therefore effectively you're opening the door to PB price deflation as the market recovers. You may have no choice in that regard, but I just wonder whether that's likely to be a significant headwind in the future. Then, just finally, two very quick ones, if I may. You mentioned in the press release, 198 airline IT customers active, but 208 signed. I just wondered if the remaining 10, how significant they are in size and when they feed through onto the platform. Very finally, market share. Clearly, you are slightly disadvantaged at the moment because of your very high weighting of bookings in the European market. On a global basis, you've probably lost share, if that's the measure. I just wondered if you could comment regionally about your view on the share gains or the share performance that you will have had in the different key regions that you operate in. Thank you. Let me make a couple of comments, and then, Till, you cover the rest, more about the details. Look, I did not explain well what I was referring to with Navitaire and Altéa. We will not have a common platform. We have two different platforms with two different solutions, with two different segments of customers. What we are trying to facilitate is the groups of airlines where there are some capabilities that could be better integrated between the two platforms, which is not at all the same as having the same functionalities in the different platforms. There are some coordination and some links between both of them that can facilitate for the airline groups to really work in a better way. It's not at all our intention to really have two platforms that are similar because they have different segments, different capabilities, and we will not move into that logic. We don't expect really that customers are using Navitaire instead of Altéa. They can do that depending on their needs. What we have seen is probably a bit the contrary. Airlines that are becoming Low-Cost Carriers are becoming a bit more sophisticated and need more functionalities. Of course, we need to really improve the capabilities of Navitaire. At one point, Navitaire will not be able to really solve the needs of complex airlines, because for that we have Altéa. With regards to the mix of regions, it's not just regions. You have within the regions also impact. We can take an example like they say, of course, the weight of Russia is important. There is a lot of mix. It is completely true, the biggest one is the North America evolution, because this is by far the best region in terms of performance or short term. Clearly, you are right. We are impacted by that. Of course, you have the mix of online versus offline, the corporate evolution. Today it's quite difficult to really have a full understanding of how things are evolving, okay? It depends a lot on the evolution of domestic business, non-business. What I can tell you is that we have a good track commercially, and there is not at all any loss of share, okay, related to commercial underlying performance. Of course, you have all these mixed effects, mainly being the biggest one, the North America evolution versus the rest of the world. That we expect when Europe recovers to really be on the other side. Still, there is a big difference between the two regions. Just a brief answer on your question. Look, just quick, I don't have the exact figure in terms of the split at hand. What I can tell you is that our revenue per air booking declined by a single-digit percentage relative to prior year. I don't have the exact split in terms of that at hand. Thanks very much. Thank you. Thank you. The next question comes from Michael Briest from UBS. Please go ahead. Thanks. Two from me. Just in terms of the recovery, I think you alluded to IATA's forecast. They're expecting next year domestic activity to be back a little above 2019, but international to still be around 2/3 of those levels. We're talking about the booking fee here in relation to distribution. Clearly home and away bookings are not quite the same as domestic and international, but they're pretty closely related. Can you just give us any feel for, if IATA is right, that next year domestic is recovered but international is still 30%-plus down, what that would do to your average booking fee on distribution? Just, Luis, on the pipeline in Airline IT, I think The Wall Street Journal published something about 90 airlines, new Low-Cost Carriers, sort of starting up. Could you talk about your expectations for new signings on Navitaire or how well you think you're positioned to win some of these new carriers? Actually, just in line with that as a third follow-on, what's your willingness to consider M&A now? Do you feel that the worst is clearly past and you could be opportunistic, or do you want to see some more proof points? Thanks. Let me take the first one, in terms of just the recovery and the domestic-international part. Look, I won't give you an exact figure, let me talk to a few trends in that. First of all, I think we are pretty positive and optimistic on the recovery of the domestic travel that we see right now. That is obviously great. If international traffic is still basically lagging a bit behind due to simply change and, or it takes longer until travel restrictions are lifted, it's true, you will going to have a certain impact simply from... There's a certain correlation between the domestic travel and basically the local bookings. Remember, we are charging based on point of sale, local bookings, regional, and global bookings. The key point I would like to make is, you can do that also mathematically. In a situation where volumes are actually relatively low, the change in unitary pricing for mix effects is actually fairly limited because the greater portion of the impact is, in truth, purely coming from the volume side. In that regard, yes, it's true. A local booking incurs a lower revenue per unit. At the same time, the effect of it in terms of volume and price mix in an environment where overall volumes are depressed is fairly limited. True, Till, the next year, if domestic is 100% of 2019, we're not dealing with a low volume environment. It's not so much now as next year. True. If you assume that all of a sudden, the volumes are coming back and you've got a shift from your historic mix, which was 40% domestic and 60% international to 100% domestic, then of course the price effect is greater. The question is, I don't expect this to be a likely scenario. If you look at the IATA forecast, the recovery on the international travel, I think, will equally going to come through. Let me talk about the Low-Cost Carriers. We try to really get as much as we can. We'll have competitors, as you know, we have a very strong solution with Navitaire, which has been able to really get customers in the past. We'll not get all of them, we are pursuing as much as we can any new company or any new Low-Cost Carrier that appear everywhere. Hopefully, we will see some additional customers coming to our platform. It's difficult. We feel well-positioned with a very good solution, it's very difficult to really be more concrete about that. With regards to M&A, we are always looking into possibilities to accelerate or to enlarge via M&A our strategy. It is true that, okay, with the current pandemic, we have not pursued that for some time because, of course, we were very focused on cash. We continue analyzing opportunities, and we need to balance between, of course, being very careful on the cash front and at the same time seeing if there are good opportunities at the right price and that fit with our strategy. The reality is that independently of the fact that, okay, we haven't found anything concrete to tell you today, prices are pretty high as we speak, despite the crisis. The multiples and the companies' values are high. If we go ahead with any of M&A, we'll need to really be sure that we can create value and pay the right price for that. M&A will be part of our future strategy and growth, the answer is yes, but then we need to see the right company at the right price, and as we have done in the past. Nothing different from the past, and we will see what is available. Okay. Thank you. Thank you. The next question comes from Guilherme Sampaio from CaixaBank. Please go ahead. Hello. Thank you for taking my questions. Three from my end. The first one, can you comment on your new businesses, in terms of trading, name of the part that's more U.S. exposed. The second one, more related to bookings recovery. What's your expectation in [bookings] in the EUR 100 million to EUR 120 million working capital improvement you mentioned for the second quarter? Or asked in another way, do you expect a material different bookings catch up in Western Europe versus the U.S. as we see progress in vaccination? Third one, in terms of recovery of corporate versus leisure business, how are you seeing things on both sides? And over the long term, what do you see as potentially differing mix in terms of opportunity for you or perhaps for having? Thanks. Okay. Let me start with the first one. I don't know if I got all the questions. The sound was not very good here, but okay. Look, with regards to new business, the different areas that we consider new businesses are doing better than our Air business because it's two reasons. I mean, has been more resilient. If we talk about airports, we talk about Hospitality. Secondly, the hospitality being the biggest one is more weighted in the U.S. than other parts of our businesses. Both effects and both factors have played in favor, and therefore, the impact of the pandemic has been much lower in the new businesses than what we have had in the more air-related piece. Again, we expect this to continue. This business had an underlying growth before pandemic that was faster than the rest of the company. With a combination of faster growth and less impact of the pandemic, they should represent, at least for the coming years, a higher weight over the total company. Let me take the second question in relation to working capital. Let me just clarify. In fact, what I was saying earlier is that I do foresee in the second quarter a working capital outflow of EUR 100 million-EUR 120 million. That is just to remind you, very much in line with seasonal working capital movements that you have seen also in prior years. That relates to employee-related payments that typically fall into the second quarter, and also some differences between collections and payments that I forecast for this quarter to come. Of course, it does include as well the implementation cost payouts that we are having in the second quarter. I just wanted to explain that after the first quarter, where we had in essence including the implementation cost payments, a cash outflow of about minus EUR 12 million, that the second quarter will be more negative. Okay. That was just the context that I wanted to provide. We couldn't get the third question. If you don't mind to repeat it, please. Related to the second one. I meant to say outflow of working capital. The question is, a significant part of your working capital is, of course, related to bookings. If we see a good outflow of working capital in the second quarter, we're probably going to see a step up in bookings. My question related to this would be, if we can expect a materially different ramp-up in bookings in Western Europe versus what happened in the U.S., are you seeing a similar pattern in both areas? The third question was related to corporate versus leisure. How are you seeing the recovery in both sides? Over the long term, what implications will have a different mix from the one we have in 2019 to your business? Okay, let me come back to the working capital question. Here you need to distinguish between two different or two opposing trends, literally. If you look at the trading-related working capital, in actual fact, I do expect as the business resumes, a positive working capital movement, a working capital inflow, because that's the way our payments and our collections work. Okay? That is point one. Positive if the business evolves positively. Okay? Nonetheless, I am guiding, and I am saying that we will going to have payments to be done in the second quarter, which result ultimately into the negative working capital movement. Again, this is very much in line with what you could see in prior years' second quarter. Does that answer your question? Yes. Thank you. Brilliant. You were mentioning about corporate and leisure. Look, the first recovery has been much more on leisure. We see some recovery also on the business side. Short term, again, we expect leisure to be faster than corporate, but at one point as the situation improves, we also expect corporate to really come back. If we think about the medium term, as you know, the important piece is more related to, in case of our figures, is more related to the mix effect of domestic versus international has an impact in our P&L more than really leisure versus business. Overall, as you know, that's not the way we price our volumes in distribution and in Airline IT. It's quite similar in the way we have our PB fees, independently of the kind of booking that we have. Of course you have then the cost related to that, P&L wise, but the pure mix of business versus leisure, in general terms, should not have an impact on our economics. Okay? It's more related to the mix effect of regions. It's a general statement because, of course, you have different regions around the world, different conditions, different pieces in the equation. Overall, that's the case. Okay. Luis, thank you very much. Thank you. The next question comes from Neil Glynn from Credit Suisse. Please go ahead. Good afternoon. If I could ask two questions, please. The first one on the airline side. I think there's a lot of focus around the market at the moment on airlines in cost-cutting mode, naturally, given the distress of the sector. From what you've touched on, clearly there's a lot of focus on structurally higher revenue quality going forward. I'd love to understand your pipeline of Airline IT projects, whether they be NDC related or other revenue-focused projects. Is that pipeline's value higher or lower than it was 12 months ago? The second question on the hospitality side. Remembering all the way back to 2016, which feels a long, long time ago, you dwelled on network effects as you build scale in the hospitality side of your business. Could you please update us on how far away you are from achieving optimal scale in your key business lines within that area, with a view to ultimately, I suppose, maximizing functionality for your customers? Okay. Let me start with airlines. Look, when we develop solutions, we try to address both. There are some of our functionalities, especially when we talk about merchandising capabilities or NDC, that are more related to the possibility of the airline to really increase their revenues. We also have a lot of functionalities in many areas of our portfolio that are related to optimizing and automate the way the airlines are handling the cost side. We try to have a value proposition that can address both areas because we cover the spectrum of solutions for the airlines. This is what we offer. Of course, part of our portfolio, again, not just on the PSS, but many of our different solutions are addressing both needs. Okay, we can go through I don't think it's the time to really go through the details of each of our solutions, but we address both. In terms of hospitality, well, it depends. Our size is pretty big already for that business. It's not a small business, but it depends the products. In some products, it's much more mature than others. We have enough scale in many of them. We are still, for the top 10 CRS, we expect to get more scale. This is our newest product. For the PMS part, we have already customers, but we expect to really get more volume, more customers, and more scale. For some other parts of our functionalities, the scale is big enough. I will not talk generally, but Hospitality, again, as we said, our expectation is that this business should grow in the years to come. Again, the maturity of our solutions is not exactly the same. We have many solutions on that front. Some of them are more mature than others. We expect all of them to really keep growing in the years to come. Thanks, Luis. Just on the CRS point that you make there, do you have any latest thinking as to when that scale is actually optimized in terms of timeline? No, it's not a matter of optimization. It's a matter of getting additional customers, more for the high-end than what we have today. Hopefully, we will be able to really get incremental customers on top of what we have today. It is, of course, our goal to really provide that, on top of the fact that we have a CRS solution more for the mid-size or independent properties. Understood. Thank you. Thank you. The next question comes from Alexandre Faure from Exane BNP Paribas. Please go ahead. Hi. Good afternoon. Thanks for taking my question. I have two clarifications, actually. Luis, I think you said in your prepared remarks that you were confident in the group's ability to gain share as the industry continues to upgrade to NDC. I was just wondering what part of the business you were talking about. Is it mostly on the distribution side or on the IT Solution side? Perhaps if you've got any proof points that you could share with us on this. My second question or clarification is on your answer to the M&A question, because I was under the impression that in the past you had this very strict net financial gearing target of 1-1.5x net debt EBITDA, and obviously we're going to be quite far from that for a few months. Just wondering if the pandemic changed that target, and we could have M&A in, say, the next 12 months? That's it. Thank you very much. Look, in terms of NDC, it is important for both of our businesses. It is for Airline IT, and it is for distribution. Our confidence to gain share is not just based on NDC. It is our goal in the different businesses. NDC is an important trend where we all need to be for the future improvement of this industry. We have been investing. We believe we have good capabilities today. We are reaching agreements with airlines. Therefore, we feel that this should give us another angle to really increase our share on top of the rest of the angles, which are related to the content, the service, the additional functionalities that we have in other areas. I will say yes, our goal to really keep increasing our competitive position is there, and NDC is an element that is relevant today, but it is not the only one. Again, it's not just for distribution, which will be important. It's also for our IT Solutions that we need to provide this capability. With regards to the capital structure, no, it's not that we are changing the objective. It's not that we are planning to really move differently. It's related to the question. It's the fact that if we have the right opportunity at the right place, hopefully, we will recover this ratio faster than expected due to the evolution of the industry. Look, if we find the right opportunity, and we can justify that in terms of value creation, we are not going to wait until we reach that level to really go ahead with any M&A, but it does not mean that we are going to enter into an M&A that is going to bring us to whatever levels of leverage. We need to find the right balance between opportunity and leverage. Of course, our objective is to come back to rational and reasonable levels as soon as possible, of course. It's not that we are planning to change this target. Of course, we'll need to have a discussion at one point more related to that board level. Our objective today is to come back to leverage levels as soon as possible. If there is an opportunity related to that, of course, we will need to consider. That's the point, but it's not related to the fact that we plan to really spend that money. Look, it's like we have done in the past. There is no change with that. Got it. Thank You very much. Thank you. Thank you. The next question comes from Antonin Baudry from HSBC. Please go ahead. Yes. Hi, everyone. Good afternoon, and thank you to take my question. Most have been asked, but two quick follow-ups. Will it be possible to remind the proportion of corporate travel in your revenues in 2019 and the proportion of domestic versus international flights? We see a lot of corporates now communicating on economy of costs related to corporate travel. Some speak about -30%, -50% in the long term. Does it question the long-term growth of the air traffic, or does it question the proportion of international and corporate travel in your mix? Thank you. Let me talk high level, and then, Till, if you can share the figures. It's difficult to really project what may happen. If you see the history, always when there is a crisis, and I know this is a bit different, but you can see in all the crises that we have had, business travel recovers slower than leisure travel. Every time this happens, we always think that corporate travel will not come back. Long term, I believe it will, but okay, let's see. I may be wrong here, but I believe people will continue traveling and coming back. Leisure, by all means, will recover faster, as we have seen in the past. What is important is the total volume. If leisure grows faster than corporate, okay, at the end, what counts is the volume, and volume should come back at one point, and then we'll need to see the mix. Again, when we see figures in some countries, it was more related to domestic. In domestic, when we see the recovery that has happened in some parts of the world, it's both corporate and leisure, despite what I said before. It cannot be just the figures we see in domestic that was just coming from the leisure piece. The business part is also part of the recovery in the U.S., in China, and in markets that are big domestic, and we have seen a recovery because in the rest of the world, still the figures are pretty low. Yeah, just adding a few figures to that. Look, in 2019, so pre-COVID-19, we had 40% domestic and 60% international traffic. Last year, that ratio actually flipped to 60% international and 40% domestic. Sorry- 60% domestic. Sorry, 60% domestic and 40% international. Exactly. Now in the first quarter, there was a slight increase again of the domestic side. If you now think of the channel and the bookings, 30% of the bookings in 2019 were coming through the corporate travel agencies. In the first quarter, this has dropped a little bit to about 20%. I think the important thing, what sometimes is not that appreciated, is that actually the TMC volume, so the corporate travel agency volumes, have got the highest proportion of domestic travel in there, which is an interesting one to note. Thank you. Thank you. Ladies and gentlemen, there are no further questions in the conference call. I will now give back the floor to Mr. Luis Maroto for the final remarks. Thank you. Thanks a lot again for joining our call, and looking forward to the next one for the half-year results at the end of July. Thank you very much.