EX-99.1 3 a2080970zex-99_1.txt EXHIBIT 99.1 Exhibit 99.1 ================================================================================ [priceline.com Logo] ANNUAL SHAREHOLDER MEETING -------------------------- MAY 23, 2002 ================================================================================ [priceline.com Logo] ================================================================================ This presentation may contain forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict; therefore, actual results may differ materially from those expressed, implied or forecasted in any such forward-looking statements. Expressions of future goals and similar expressions including, without limitation, "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "targets," or "continue" reflecting something other than historical fact are intended to identify forward-looking statements. The following factors, among others, could cause priceline.com's actual results to differ materially from those described in the forward-looking statements: adverse changes in general market conditions for leisure and other travel products as the result of, among other things, terrorist attacks or hostilities; adverse changes in priceline.com's relationships with airlines and other product and service providers, including, without limitation, the withdrawal of providers from the priceline.com system; the effects of increased competition; systems-related failures and/or security breaches; priceline.com's ability to protect its intellectual property rights; losses by priceline.com and its licensees; legal and regulatory risks and the ability to attract and retain qualified personnel. For a detailed discussion of these and other factors that could cause priceline.com's actual results to differ materially from those described in the forward-looking statements, please refer to priceline.com's most recent Form 10-Q, Form 10-K and Form 8-K filings with the Securities and Exchange Commission. Unless required by law, priceline.com undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. ================================================================================ [priceline.com Logo] ================================================================================ HISTORICAL RESULTS: POST-IPO QUARTERLY PERFORMANCE
Q2 99 Q3 99 Q4 99 Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01 Q4 01 Q1 02 ------- ------- ------- ------- ------- ------- ------- ------- ------ ------ ------ ------ Revenue $111.6 $152.2 $169.2 $313.8 $352.1 $341.3 $228.2 $269.7 $364.8 $302.0 $235.3 $261.9 Pro Forma EPS $ (0.10) $ (0.08) $ (0.06) $ (0.04) $ (0.01) $ (0.01) $ (0.15) $ (0.03) $ 0.05 $ 0.03 $ 0.01 $ 0.02
Q2 99 Q3 99 Q4 99 Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01 Q4 01 Q1 02 ------- ------- ------- ------- ------- ------- ------- ------- ------ ------ ------ ------ Margin 9.4% 12.0% 14.2% 15.6% 15.7% 15.9% 15.4% 16.0% 16.5% 16.7% 16.7% 16.0% Contribution $ 10.5 $ 18.2 $ 24.1 $ 49.0 $ 55.2 $ 54.4 $ 35.1 $ 43.1 $ 60.1 $ 50.4 $ 39.3 $ 42.0
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2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 ----- ----- ----- ----- ----- ----- ----- ----- Air Booked Offers 76.6% 71.6% 68.6% 70.7% 67.1% 58.4% 52.9% 51.0% Hotel Booked Offers 17.2% 19.8% 20.5% 18.8% 21.7% 29.6% 34.8% 36.7% Rental Car Booked Offers 6.2% 8.6% 10.9% 10.6% 11.3% 12.0% 12.3% 12.3% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
[priceline.com Logo] ================================================================================ KEY STRENGTHS:BRAND o Powerful Brand Awareness: Top 5 Internet Brand [America OnLine Logo] [amazon.com Logo] [priceline.com logo] [eBay Logo] [Yahoo! Logo] ================================================================================ [priceline.com Logo] ================================================================================ KEY STRENGTHS: CUSTOMER FRANCHISE GROWING REPEAT
2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 --------- --------- --------- --------- ---------- ---------- ---------- ---------- Cumulative Customers 6,766,773 8,110,798 8,994,660 9,886,150 10,911,191 11,838,529 12,692,611 13,567,403 % Repeat Offers 39.0% 51.3% 54.5% 57.7% 61.2% 62.7% 63.6% 63.6%
YEAR/YEAR DEMAND GROWTH 2Q01 107% 3Q01 90% 4Q01 121% 1Q02 114% ================================================================================ [priceline.com Logo] ================================================================================ KEY STRENGTHS: FINANCIAL LEVERAGE o Gross margin minus variable expenses running at all-time high
Gross Margin % Variable Margin after Variable ------------ ---------- --------------------- 2Q99 9.8% 7.8% 1.9% 3Q99 12.2% 7.8% 4.4% 4Q99 14.2% 7.6% 6.6% 1Q00 15.6% 6.4% 9.2% 2Q00 15.7% 6.8% 8.9% 3Q00 15.9% 6.3% 9.7% 4Q00 15.4% 6.9% 8.5% 1Q01 16.0% 5.4% 10.6% 2Q01 16.5% 5.2% 11.2% 3Q01 16.7% 6.8% 9.9% 4Q01 16.7% 6.2% 10.5% 1Q02 16.0% 4.0% 12.0%
================================================================================ [priceline.com Logo] ================================================================================ KEY ASSETS IN PLACE o Brand Name / Investment o Cash Q1: $178M o Margin o Lower break-even than any other broad-line seller of travel on the Internet o Successfully managed through historical volatility o Substantial NOLs ================================================================================ [priceline.com Logo] ================================================================================ GROWTH INITIATIVES o Business Recovery o New Products - Vacation Packages - Cruises ================================================================================ [priceline.com Logo] ================================================================================ PRICELINE VACATIONS "BUILD YOUR OWN VACATION, NAME YOUR OWN PRICE" [GRAPHIC OMITTED] PRICELINE.COM VACATIONS IS AN ATTRACTIVE PRODUCT EXTENSION OPPORTUNITY, OFFERING: Entry into the $1.4B online packaged vacation market - Higher revenue/sale - Higher margins Operating leverage from priceline's core product - Limited capital expenditure - Built on strength of existing supplier relationships Enhancement of priceline's key brand attributes - Maintains/supports ownership of "Best Deal" - Broadens brand appeal ================================================================================ [priceline.com Logo] ================================================================================ GROWTH INITIATIVES o Business Recovery o New Products - Vacation Packages - Cruises o eBay ================================================================================ [priceline.com Logo] ================================================================================ eBay PARTNERSHIP o Unique travel offering o Business relationship o Access eBay's 42 million registered users o Brand compatibility o "Powered By Priceline" platform ================================================================================ [priceline.com Logo] ================================================================================ GROWTH INITIATIVES o Business Recovery o New Products - Vacation Packages - Cruises o eBay o On-line Marketing Initiatives - AOL - Other o Priceline Mortgage ================================================================================ [priceline.com Logo] ================================================================================ PRICELINE HOME FINANCE o Priceline Mortgage: JV between Priceline (49%) / First Alliance Bank (51%) - Best rates and closing costs available (guaranteed) - Float down protection and loan-level pricing - No tradeoffs - Impressive growth with limited marketing support o Online mortgage penetration gaining consumer acceptance: 1% in 1999; 15% in 2003(1) ================================================================================ ================================================================================ [priceline.com Logo] ================================================================================