Booking Holdings Shareholder Engagement Presentation Deck slide image

Booking Holdings Shareholder Engagement Presentation Deck

Appendix: Unaudited Reconciliation of GAAP to Non-GAAP Financial Information Non-GAAP Financial Measures: While the Company reports financial results in accordance with accounting principles generally accepted in the United States, this presentation includes Adjusted EBITDA, a non-GAAP measure which is not presented in accordance with GAAP or a substitute for GAAP measures. The Company considers Adjusted EBITDA as an important supplemental measure of its performance. Adjusted EBITDA is often used to assess the Company's performance because it allows comparison of operating performance on a consistent basis across periods by removing the effects of various items. Adjusted EBITDA has various limitations as an analytical tool, and the recipient should not consider it in isolation, or as a substitute for analysis of the Company's results as reported under GAAP. Further, because not all companies use identical calculations, the presentation herein of non-GAAP measures may not be comparable to other similarly titled measures reported by other companies. (figures in millions) RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA Net income (a) Accruals related to potential settlements of indirect tax matters (b) Depreciation and amortization (c) Gain on sale and leaseback transaction (b) Interest and dividend income (b) Interest expense (d) Net gains on equity securities (e) Impairment of investment (f) Foreign currency transaction losses on the remeasurement of certain Euro-denominated debt and accrued interest (b) Income tax expense Adjusted EBITDA $ LTM 3/31/23 Note: Amounts may not total due to rounding (a) Accruals related to potential settlements of certain indirect tax matters is recorded in General and administrative expense and excluded from Net income to calculate Non-GAAP Net income and Adjusted EBITDA 4,024 85 460 (240) 516 (75) 184 10 1,052 5,571 (b) Amounts are excluded from Net income to calculate Adjusted EBITDA. (c) Gain on the sale and leaseback transaction related to Booking.com's future headquarters building is recorded in Restructuring, disposal, and other exit activities and excluded from Net income to calculate Non-GAAP Net income and Adjusted EBITDA. (d) Net gains on equity securities with readily determinable fair values are recorded in Other income (expense), net and excluded from Net income (loss) to calculate Non-GAAP Net income and Adjusted EBITDA. (e) Impairment of investment in Yanolja Co., Ltd. equity securities is recorded in Other income (expense), net and excluded from Net income to calculate Non-GAAP Net income and Adjusted EBITDA. Foreign currency transaction losses on the remeasurement of Euro-denominated debt and accrued interest that are not designated as hedging instruments for accounting purposes are recorded in Other income (expense), net and excluded from Net income to calculate Non-GAAP Net income and Adjusted EBITDA. For (a) - (f) above, Net income, Depreciation and amortization expense, Interest expense, Income tax expense, General and administrative expense, Restructuring, disposal, and other exit activities, and Other income (expense), net, refers to the respective line item in the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. Last-twelve-months (LTM") March 31, 2023 ("LTM 3/31/23") was derived based on the consolidated financial statements for the year ended December 31, 2022 included in our Form 10-K filed with the SEC on February 23, 2023 and the interim financial information for the three months ended March 31, 2023 and 2022 included in our eamings press release filed with the SEC on May 4, 2023. For a more detailed discussion of the adjustments described above, please see our earnings press release for the relevant period, including the section under the heading "Non-GAAP Financial Measures" which provides definitions and information about the use of non-GAAP financial measures. ******* BOOKING HOLDINGS 18
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