Sabre Corp - 6.50% PRF CONVERT 01/09/2023 USD 100 - Ser A

Q2 performance beat expectations; strong cash generation - Revenue $712m, +4% YoY (above expectation of flat-to-nominal). - Normalized adjusted EBITDA $151m, +19% YoY, and margin expanded +272 bps to 21.2% (good mix: higher average booking fee + higher-margin payments/media; some tech investment timing). - Free cash flow +$10m in Q2; despite still-negative full-year FCF, this indicates momentum (full-year FCF improved to ~-$65m vs -$70m).

Bookings and outlook: modest growth bias with continued geopolitical drag - Air distribution bookings +1% YoY in Q2 (ahead of their outlook); June “modest recovery” helped, and that trend continued into July. - Growth stayed positive throughout the quarter in both North & South America, partially offset by: - Middle East conflict impact and higher fuel prices (management estimate 300–400 bps combined headwind in Q2, more acute in EMEA and Asia Pacific). - Higher fares from fuel (demand pressure), but corporate resilience helped. - Guidance expectations (key investor takeaways): - Q3 bookings growth: flat to low single digits - Q4 bookings growth: low to mid-single digits - Reaffirm revenue and air distribution bookings growth for full year.

Full-year guidance raised for profitability and cash flow (but not revenue/booking growth) - Pro forma adjusted EBITDA increased to ~ $600m (from prior guidance). - Full-year free cash flow improved to ~ -$65m (still negative due mainly to restructuring). - The company emphasized that negative FCF is driven almost entirely by ~ $60m restructuring costs tied to the inflation offset program; without those costs, near breakeven. - CapEx increased by ~$10m (investment intensity rising in second half).