Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Macquarie Australia Conference (May 2017)
22 slides from Flight Centre Travel's conference presentation, May 4, 2017
Slide 1: Investor Presentation – Macquarie Australia Conference
For personal use only Investor Presentation by Adam Campbell (CFO) Macquarie Australia Conference
Slide 2: FY17: The Story So Far
FY17: THE STORY SO FAR For personal use only TTV expected to top $20b for 1st time (circa 4% growth) – another record sales year On track to achieve FY17 $300m-$330m targets but some underlying PBT ongoing target uncertainty – FX fluctuations & airfare pricing Targeting $1b in online leisure TTV Nin
Slide 3: FY17 Highlights (1H)
FY17 HIGHLIGHTS (1H) For personal use only Increased market- share – Enhanced international ticket productivity – TTV sales growth (up per person 10% in Australia) increasing in most outpacing countries (key outbound travel global strategy) Investment in growth transformation initiatives to ensure F
Slide 4: Manufactured Product Sales Increasing
MANUFACTURED PRODUCT SALES INCREASING For personal use only Manufactured Includes Captain’s leisure products Packages, on track to deliver Journeys, more than $500m Escapes, Black in TTV in Australia Market Flights, alone during FY17 Get Luxe, Tailor- From Start-Ups Made & others to Multi Million Do
Slide 5: FY17 Challenges
FY17 CHALLENGES For personal use only Internal Factors Cost growth Underperformance outpacing revenue in some brands & growth in low fare businesses (Asia, environment North America leisure, Top Deck) External Factors Trading cycle – FX fluctuations challenging significantly conditions in affecting
Slide 6: Airfare Pricing
AIRFARE PRICING For personal use only Significant deflation Unprecedented & Deflationary in some key prolonged Environment markets – including discounting from Australia & USA – most carriers (not since 2H FY16 LCC-driven) 7% decline in Stimulating demand Impacting average but leading to Revenue int
Slide 7: Short-Term Growth Drivers (FY18)
SHORT-TERM GROWTH DRIVERS (FY18) For personal use only Better Operational Trading Improvement Cycle Normal airfare price shifts Ongoing between Productivity periods, Gains Globally exchange rate Benefits stability Flowing From Cost Control Initiatives Overall Market Growth Stronger Growth Contributi
Slide 8: Medium-Term Growth Drivers (FY18 – FY20)
MEDIUM-TERM GROWTH DRIVERS (FY18 – FY20) For personal use only Creation of a new Business Transformation Team under Melanie Waters-Ryan (COO) Ongoing Growth Strategies
Slide 9: Transformation Team Priorities
TRANSFORMATION TEAM PRIORITIES For personal use only Identify & Grow digital deploy cost commerce reduction sales strategies Recommend Strategic review additional of investment underperforming requirements in brands & growth models Grow the businesses & brands Travel Globalise Experience Technology
Slide 10: Changes Already Taking Place
CHANGES ALREADY TAKING PLACE For personal use only GOGO wholesale business (USA) downsized during Loss-making 1H Student Flights New Asia NZ & RSA structure – offerings Singapore, absorbed into Transformation Malaysia & FCB program in Greater China infancy but management- Slow down in driven changes
Slide 11: Core Growth Opportunities
CORE GROWTH OPPORTUNITIES For personal use only Leisure Travel Retailing In-Destination Travel 5 Key Experiences Geographies EMEA Americas Australia & NZ 3 Key Areas Asia In-Destination (Global) Corporate Travel
Slide 12: Leisure Travel Retailing
LEISURE TRAVEL RETAILING For personal use only Brands that are easy to transact & All leisure interact with brands likely Delivering to be specialised profitable in expertise & Australia unique during FY17 products FLT’s Largest Business Sector Targeted & cost effective Omni-channel growth & blended
Slide 13: Leisure Travel: The P2P Index
LEISURE TRAVEL: THE P2P INDEX For personal use only Dominating The Leisure Travel Landscape OTA Contact Centres Flagship Stores Community Home Based Events • High volume, low • 24/7 telephone touch sales & assist • Shopping centres • Hyper stores • Model expanding • FLT’s 13th Month • Flightcentre,
Slide 14: Leisure Travel: Pushing to the Edges
LEISURE TRAVEL: PUSHING TO THE EDGES Strong growth potential (from small base) in channels at the fringes of the P2P Index For personal use only Home-Based Contact Centres Expos & Events Agents Sales & service Cost-effective model Nationwide program businesses in head that is growing in place office
Slide 15: Leisure Travel: Digital Commerce
LEISURE TRAVEL: DIGITAL COMMERCE For personal use only ✓Transaction volume growing fast ONLINE ✓Leisure targets $1B in FY17 ✓Corporate adoption of online 40%+ COMPLETION FLT ✓Sign of healthy value proposition ONLINE ✓Already multi-billion dollar entities ✓Complex purchases are more valuable ORIGINAT
Slide 16: Leisure Travel: Enhanced Digital Presence
LEISURE TRAVEL: ENHANCED DIGITAL PRESENCE For personal use only StudentUniverse seeing strong YoY growth in mobile bookings NATIVE APPS New apps deployed for FC Australia and FC USA
Slide 17: Leisure: FLT's Shop Network
LEISURE: FLT’S SHOP NETWORK For personal use only Generating 85- 90% of leisure TTV in Australia Significantly higher Strong conversion & network of transaction community & values than flagship shops other channels The Heart of The P2P Index Opportunity to “Billboard ”pivot” leisure Effect” at high
Slide 18: Leisure: Growth Outlook
LEISURE: GROWTH OUTLOOK Ongoing For personal use only Network Differing Enhancements Growth Profiles Modest growth planned for more mature Flight Centre Tailored growth Brand in Australia Up-staffing in some brands & locations plans for each without increasing brand in Australia & footprint overseas
Slide 19: Corporate Travel
CORPORATE TRAVEL Now For personal use only generating about one- third of FLT’s global TTV Entering Award important new winning & geographies innovative Recent offerings acquisitions in the Americas, Asia and Continental Consolidating Ongoing Europe position as enhancements one of the to already wor
Slide 20: In-Destination Travel Experiences
IN-DESTINATION TRAVEL EXPERIENCES For personal use only Future Expansion FLT’s 3rd Key Opportunities – Business Pillar hotel management, global DMC Includes Buffalo network Destination Management Company & tour operators (Top Deck & Back- Greater share of Roads) wallet, greater control over product
Slide 21: Recent Acquisitions (FY16 & FY17)
RECENT ACQUISITIONS (FY16 & FY17) For personal use only Generally targeting & investing in smaller businesses with solid growth potential New Corporate Online & E- In-destination Other Markets commerce • Nordics & • StudentUniverse • Buffalo Tours • Avmin Germany • BYOjet • Ignite* • Mexico • Bibam*
Slide 22: Questions?
For personal use only QUESTIONS?
Flight Centre Travel Group — Macquarie Australia Conference (May 2017) on 6ix