Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — H1 FY2013 Earnings Presentation
27 slides from Corporate Travel Management's earnings presentation, Feb 28, 2013
Slide 1: Half Year Results 2013
For personal use only travelctm.com HALF YEAR RESULTS 2013 Jamie Pherous, Managing Director Steve Fleming, CFO
Slide 2: Disclaimer
Disclaimer For personal use only This document is not a prospectus under Australian law and does not constitute an offer, invitation or recommendation to subscribe for or purchase any security or financial product and neither this document nor anything contained in it shall form the basis of any con
Slide 3: Agenda
Agenda For personal use only • Group Performance Highlights • Acquisition Update • Product Innovation • Key Initiatives • Looking Forward
Slide 4: Group Results
Group Results For personal use only *EBITDA up 26.3% on p.c.p 1H 2013 1H 2012 Change on PCP (%) *TTV $m EBITDA margins reflects USA 431.086 315.881 +36.5% (unaudited) combination Revenue $m 38.742 29.496 +31.3% A&NZ EBITDA margins higher than p.c.p. due to revenue per *EBITDA $m 9.225 7.304 +2
Slide 5: Decade of Outperforming Growth
Decade of Outperforming Growth 1000 For personal use only 800 Contribution $160m Acquisition $170m Organic 600 TTV $m *900 400 681 502 200 316 352 235 140 42 56 81 0 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 * Forecast • Grown TTV every year since being founded in 1994 • Last six y
Slide 6: Sales Growth by FY Half
Sales Growth by FY Half For personal use only 1000 900 *900 800 700 681 600 502 TTV $M 500 1st Half 431 Full Year 400 352 315 300 222 371 166 A&NZ 200 100 60-USA 0 2010 2011 2012 2013 * Forecast
Slide 7: Group Performance – 1H13 Highlights
Group Performance – 1H13 Highlights For personal use only Financial • 1H13 EBITDA $9.2m v 1H12 $7.3m (26.3% growth) • Record new client wins, combined with strong retention for CTM Group, particularly USA Growth • Winning market share from a mix of Global TMC’s and boutique operators • USA expect gr
Slide 8: Staff and Client Satisfaction
Staff and Client Satisfaction For personal use only Based on an independent VIBE survey completed in November 2012, 89% of CTM employees are engaged or highly engaged working at CTM Australia and New Zealand Based on a survey of CTM’S Top Australian accounts, CTM achieved a 98% Client Satisfaction
Slide 9: Comparative 1HFY13 Profit and Loss
Comparative 1HFY13 Profit and Loss For personal use only 6 mths ended 6 mths ended Dec 2012 % of Income Dec 2011 % of Income $'000 $'000 TTV (unaudited) 431,086 315,881 Travel & other Income 38,686 29,340 Yield % of TTV 8.98% 9.28% Operating Expenses (29,461) 76% (22,036) 75% EBITDA 9,225 24% 7,304
Slide 10: Half Year Profit and Loss Highlights
Half Year Profit and Loss Highlights For personal use only • TTV (unaudited) – 36.5% up on p.c.p – reflects strong new business performance and six month contribution from USA • EBITDA – 26.3% up on p.c.p. Profit contribution (EBITDA margin 24%) slightly lower to corresponding period, as a result of
Slide 11: Group Balance Sheet ($m)
Group Balance Sheet ($m) For personal use only • Cash reserves and a small amount of debt Dec 12 $m June 12 $m used to fund USA acquisition and etm earn- Cash 7.3 12.2 out Receivables and other 21.4 26.1 • Debtors have fallen from June 12 due to Total current assets 28.7 38.3 overrides and improved
Slide 12: Group Cash Flow ($m)
Group Cash Flow ($m) For personal use only 6 months 6 months to Dec to Dec 2012 2011 • Strong operating cash flow. Good EBITDA 9.2 7.3 improvement compared to p.c.p Change in working capital 0.6 (2.6) • Other investment cash flows relate to USA acquisition and etm earn-out, funded Income tax paid (3
Slide 13: Agenda
Agenda For personal use only • Group Performance Highlights • Acquisition Update • Product Innovation • Key Initiatives • Looking Forward
Slide 14: Merger and Acquisition Update
Merger and Acquisition Update For personal use only 7 successful acquisitions and integrations to date including off-shore. Common themes across all targets: • Strong discipline in selection criteria – looking for the “1 in 100” • Alignment - “Skin in the game” for leader and/or senior Management •
Slide 15: USA – Case study
USA – Case study For personal use only • Acquired Colorado based R&A Travel on 2 July 2012 for US$9.5m, including $5.4m of initial consideration (cash and scrip), and up to $4.1m of contingent consideration • Strategic rationale - improved service for Australian-based accounts with travel originatin
Slide 16: Agenda
Agenda For personal use only • Group Performance Highlights • Acquisition Update • Product Innovation • Key Initiatives • Looking Forward
Slide 17: CTM Mobile
CTM Mobile For personal use only Travellers are connected wherever they are; • View flight and hotel bookings • Flight delay alerts • Seat maps • Gate change alerts • Alternative flight search • Driving directions • Currency converter • Risk notifications • Cost savings messages All booking informat
Slide 18: ticketbank
For personal use only ticketbank • Real-time access to use credits on hold • The ability to take charge of your credits on hold with data at your fingertips • Increase use of credits on hold by travellers • Minimise wastage and reduce costs = demonstrated ROI
Slide 19: pre-trip approval
For personal use only pre-trip approval • A streamlined travel request process for arrangers - no more emails or forms • The power to avoid unauthorised travel bookings • The ability to approve or deny travel requests in a convenient manner • 100% accessibility - you only need an internet connection
Slide 20: Business Intelligence
Business Intelligence For personal use only • Best in market diagnostic tools for clients, developed with our clients • Ability to deliver consolidated reporting and cost reduction strategy consistently across clients in Australia/NZ/USA • Currently rolling out across the USA
Slide 21: Wotif hotel inventory
For personal use only Wotif hotel inventory • Largest property inventory in Australia and New Zealand • Remote locations now available online • Live inventory fully integrated with u- book online booking tool • More competitive rates • Maximise clients policy compliance • Detailed reporting – all bo
Slide 22: Agenda
Agenda For personal use only • Group Performance Highlights • Acquisition Update • Product Innovation • Key Initiatives • Looking Forward
Slide 23: Executing FY13 Initiatives
Executing FY13 Initiatives For personal use only
Slide 24: Agenda
Agenda For personal use only • Group Performance Highlights • Acquisition Update • Product Innovation • Key Initiatives • Looking Forward
Slide 25: Profit Guidance
Profit Guidance For personal use only Upgrade FY13 guidance to 20%-25% EBITDA growth on p.c.p. (circa $21m-$22m EBITDA) Key drivers affecting FY13 performance: • No erosion in the broader economy • Continue to win and retain business with new products developed, underpinned by high service and engag
Slide 26: FY14 and Beyond
FY14 and Beyond For personal use only • 5 year forward planning for A&NZ to ensure it continues to be a “fortress” of high growth and high profitability that underpins global expansion strategy • USA - replicate Australian model through combination of further accretive acquisitions & organic growth
Slide 27: Any Questions?
For personal use only Any Questions?
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