Helloworld Travel Ltd · ASX:HLO
Helloworld Travel — FY2015 Earnings Presentation
23 slides from Helloworld Travel's earnings presentation, August 2015
Slide 1: 2015 Full Year Results
helloworld 2015 Full Year Results
Slide 2: Elizabeth Gaines, CEO
Elizabeth Gaines CEO
Slide 3: 2015 Full Year Review
2015 Full Year Review • Total Transaction Value (TTV) of $4.7 billion • Adjusted EBITDAI(1) of $27.5 million • Operating Revenue of $279.2 million • Loss before tax of $198.4 million (inc $205.3 million non-cash goodwill impairment) • Adjusted Profit before tax(2) of $6.9 million, a significant impr
Slide 4: Key Achievements
Key Achievements High calibre bricks and mortar network performed in line with prior year on a like for like basis 75% of agent and agency award winners at 2015 NTIA Awards were helloworld member agents Increased profitability of Travel Management segment • QBT appointed sole provider of travel mana
Slide 5: Retail network delivering
Retail network delivering • Stabilised network of approx 1,700 high-calibre, high performing agents across ANZ • TTV of $3.4 billion (down 4% on FY14) • On a like for like basis, network TTV in line with FY14 • Adjusted EBITDAI of $31.9 million (37% decrease) • Due to agent incentives, marketing and
Slide 6: A bricks and mortar network of high-calibre agents…
A bricks and mortar network of high-calibre agents… 4
Slide 7: Travel Management Segment continues to improve
Travel Management Segment continues to improve • The appointment of QBT as the sole provider of travel management services to WoAG(1) demonstrates ability to deliver large, complex corporate travel management with innovative technology - a strong base for future growth • QBT has successfully transit
Slide 8: Brand Awareness has tripled in months
Brand Awareness has tripled in 12 months • Prompted brand awareness has increased to 34% at June 2015 • Survey based on 1,200 pre- qualified respondents who • intend to travel within the next 12 months • are the key decision makers in the travel process • Aged 25 years or older May 2014 Nov 2014 Jun
Slide 9: Product Aligned with Agents' & Consumers' Needs
Product Aligned with Agents’ & Consumers’ Needs • Consolidated supply and support of vital higher margin product • Focus on tailored solutions across all demographics through close relationships with suppliers • Insider Journeys embraces this important channel – success reflected in 2015 NTIA Best S
Slide 10: Training to promote customer service excellence
Training to promote customer service excellence • Network-wide engagement of hello You training: • Profiling our agents as Experts in Everywhere • Delivering on our vision – Creating the Future of Travel with each journey hello You • Further building our network of high-calibre agents • Overwhelming
Slide 11: Omni-channel strategy on track to optimise future growth
Omni-channel strategy on track to optimise future growth • Omni-channel strategy driving productivity and profitability • Sustained investment in building helloworld.com.au: • Hotel and Air TTV up 245% and 95% respectively in 2H15 • Broader product options and enriched consumer experience • Award wi
Slide 12: Technology to drive advantage
Technology to drive advantage • Developing world-class proprietary technology to drive agent productivity, efficiencies, relationships and margins • Agent Automated Itinerary Solutions delivered • Global first – helloworld for business / Qantas NDC pilot • Point of Sale system being developed with f
Slide 13: Outlook
Outlook • Focus on delivering through momentum of helloworld’s growing brand presence, top line growth and increased profitability • Future-proofing our agents and business through technology, training, product and profile supported by omni-channel strategy to capture forecast total tourism spend (e
Slide 14: Jenny Macdonald, CFO
A Jenny Macdonald CFO
Slide 15: Full Year Result
Full Year Result FY15 FY14 Change $m $m % Total Transaction Value (TTV) 4,696.2 4,861.0 (3%) Revenue 279.2 291.7 (4%) Adjusted EBITDAI(1) 27.5 40.6 (32%) Loss before tax (198.4) (61.2) 224% Loss after tax attributable to members (201.1) (63.3) 218% Basic loss per share (45.66) cents (14.38) cents 21
Slide 16: Retail Segment
Retail Segment FY15 FY14 Change $m $m % Total Transaction Value (TTV) 3,429.1 3,586.5 (4%) Revenue 151.9 160.7 (5%) Operating expenses (120.0) (110.1) 9% Adjusted EBITDAI 31.9 50.5 (37%) • Retail transformation complete in Australia • Reduction of 8% in the network compared to prior year (full year
Slide 17: Wholesale Segment
Wholesale Segment FY15 FY14 Change $m $m % Total Transaction Value 667.1 708.2 (6%) (TTV) Revenue 82.3 88.6 (7%) Operating expenses (69.1) (76.2) (9%) Adjusted EBITDAI 13.1 12.4 6% • Adjusted EBITDAI increased by $0.7m (6%) • Revenue margin remained stable from prior year at 12.3% (prior year exclud
Slide 18: Travel Management Segment
Travel Management Segment FY15 FY14 Change $m $m % Total Transaction Value (TTV) 600.0 566.3 6% Revenue 41.1 37.5 10% Operating expenses (35.9) (37.0) (3%) Adjusted EBITDAI 5.3 0.5 923% • Strong TTV and Revenue growth of 6% and 10% respectively • QBT appointed as sole provider of travel management s
Slide 19: Balance Sheet
Balance Sheet FY15 FY14 $m $m Cash 176.1 184.3 Other current assets 106.9 105.6 Intangible assets 161.4 360.5 Other non-current assets 26.7 32.9 Current liabilities (266.0) (279.8) Non-current liabilities (27.6) (26.5) Equity 177.5 377.0 16 19
Slide 20: Liquidity and Funding
Liquidity and Funding FY15 FY14 $m $m Total Facility available 96.0 96.4 Drawn Debt (24.9) (25.3) Multi-option Facilities (incl. bank (10.3) (9.9) guarantees Headroom 60.8 61.2 Company cash 27.4 28.5 Client cash 148.7 155.8 Total cash 176.1 184.3 • Operating cash inflow for FY15 of $4.7m has increas
Slide 21: Appendices
hellotvorld Appendices
Slide 22: Reconciliation of Adjusted EBITDAI to Loss Before Tax
Reconciliation of Adjusted EBITDAI to Loss Before Tax (1) Adjusted EBITDAI is earnings before interest expense, tax, share-based payments, defined benefits expense, depreciation, amortisation and impairment adjusted for significant and/or unusual items or revenue or expense. Adjusted EBITDAI is a fi
Slide 23: ae ae
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