Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — 2010 UBS Conference
12 slides from Flight Centre Travel's conference presentation, Apr 22, 2010
Slide 1: Flight Centre Limited 2010 UBS Conference
For personal use only Flight Centre Limited 2010 UBS Conference April 22, 2010 Presentation by Andrew Flannery – chief financial officer 1
Slide 2: FLT – an overview
FLT – an overview For personal use only GEOGRAPHIC 2000 company-owned shops and businesses in 11 countries DIVERSITY FCm corporate travel management network extends to more than 60 countries BRAND More than 20 leisure, corporate and wholesale travel brands STRENGTH Flight Centre recently judged Aust
Slide 3: Unique business model
Unique business model For personal use only REPLICABLE FLT is a sales and marketing company with standardised operating systems globally MODEL Allows for rapid organic growth SMALL Teams consist of 5-8 people, including a team leader and a future team leader TEAMS At shop level, team leaders are res
Slide 4: 2010 – the story so far …
2010 – the story so far … For personal use only Strong growth – actual 1H pre-tax profit up 115% (up 19% on normalised 08/09 result) PROFIT 2008/09 included record 1Q – opportunity for strong 2H growth compared to weak PCP Good volumes – up 20% on PCP in some markets during 1H SALES Airfares still c
Slide 5: 2010 – financial overview
2010 – financial overview For personal use only Cost discipline maintained COSTS Wages, rent and advertising major expense items – variable wage and ad costs CAPITAL Reduced cap-ex after major investment in projects and shop refurbs in recent years EXPENDITURE Aiming to keep cap-ex in line with D&A
Slide 6: Five-year result summary
Five-year result summary For personal use only December December December December December 2009 2008 2007 2006 2005 (ex abnormal) TTV $5,201 m $5,788 m $4,800 m $4,100 m $3,700 m Income margin 13.9% 13.3% 13.4% 12.6% 12.9% EBITDA $100.5 m $53.2 m $105.2 m $63.0 m $63.0 m PBT $73.6 m $34.2 m $90.9 m
Slide 7: Outlook
Outlook For personal use only SOLID Significant momentum – good 1H and conditions stabilising globally FOUNDATIONS Strong sales force, brand diversification, leaner cost base and healthy balance sheet Up to 100 new business to open during course of year across all brands GROWTH Flight Centre brand s
Slide 8: Strategic priorities
Strategic priorities For personal use only INDIA, CANADA Improve the return on FLT’s investment in these emerging countries & THE USA ONE BEST WAY Ensure the company’s “One Best Way” operating culture is in place in all brands and businesses LEADERSHIP Attract and retain more of the right leaders SA
Slide 9: The net – FLT's online models
The net – FLT’s online models For personal use only The most seen “shop window” – using the web as an extension of the bricks and mortar network ENQUIRY GENERATION Good information and travel deals to generate enquiry Examples include flightcentre.com.au Internet-only brands (the only shop window) g
Slide 10: Profit outlook
Profit outlook For personal use only PROFIT Targeting $160m-$180m pre-tax profit, assuming no major abnormal items arise TARGET Promising signs but too early to amend guidance with full quarter to go TRAVEL Travel businesses continuing to perform well after good 1H profit growth BUSINESS Continued s
Slide 11: The USA – continued improvement
The USA – continued improvement For personal use only Some stabilisation after 2008/09 but yet to see significant recovery MARKET CONDITIONS Consumer confidence slowly beginning to rebound Key retail and wholesale systems now in place, including shop-based incentives and BUSINESS FLT’s standard “cli
Slide 12: End of presentation – Questions
End of presentation For personal use only Questions 12