Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — H1 2015 Earnings Presentation
20 slides from Corporate Travel Management's earnings presentation, Feb 11, 2016
Slide 1: Half Year Results 2015
Half Year Results 2015 Jamie Pherous, Managing Director Steve Fleming, Global CFO Laura Ruffles, CEO Australia and New Zealand
Slide 2: Disclaimer
Disclaimer The information in this presentation does not constitute personal investment advice. The presentation is not intended to be comprehensive or provide all information required by investors to make an informed decision on any investment in Corporate Travel Management Limited ACN 131 207 611
Slide 3: Group Result Highlights
Group Result Highlights $m 1H2015 Change on P.C.P Underlying EBITDA up 94% to $20.2m, excluding $1.1m one-off acquisition costs TTV (unaudited) 1,115.9 ↑ 127% Record profit in all CTM regions Revenue and other 83.8 ↑ 93% Top line growth through strong client wins and income retention in every
Slide 4: EBITDA Growth Summary ($m)
EBITDA Growth Summary ($m) 20.2 0.8 5.6 1.2 0.9 1.3 10.4 1HFY14 ANZ Organic USA M&A USA Organic Asia M&A Asia Organic 1HFY15 Page: 4
Slide 5: Award Winning across CTM regions
Award Winning across CTM regions ANZ ASIA 2014 Best National Travel 2014 Best Travel Agency Management Company Hong Kong Winner 9 of the last 11 years 5 of the last 7 years UK 2015 Best Travel Management Company Winner 2013, 2014 and 2015 Page: 5
Slide 6: Over 20 Years of Continued Growth
2750 Over 20 Years of Continued Growth 2500 *2500 2250 2000 1750 1500 TTV AUD$m 1384 1250 1000 884 750 682 500 502 352 250 316 235 81 140 0 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Page: 6 * Forecast
Slide 7: FY15 Initiatives
FY15 Initiatives Outcome • Above market growth in every region Outcome Outcome • Expanded into Europe • Profit margin ↑ in ANZ/Asia • US integration to optimise scale moving forward Page: 7
Slide 8: CTM Footprint and Corporate Market Share
CTM Footprint and Corporate Market Share USA Market Size USD300b Europe CTM Market Share <1% Market Size USD500b CTM Market Share <1% Asia Market Size USD650b CTM Market Share <1% Unique Value Proposition ANZ Operating out of 46 cities in 23 countries Market Size USD6b Over 1800 employees CTM Market
Slide 9: EBITDA Contribution by Region
EBITDA Contribution by Region 1H FY15 $20.2m 1H FY14 $10.4m 2.1m 6.4m 9.6m 8.3m 4.2.m ANZ North America ANZ North America Asia Building diversity through offshore expansion – over half of 1HFY15 EBITDA offshore Offshore profit contribution expected to be greater over the full year FY15 with Europe c
Slide 10: ANZ
ANZ $AUD ANZ Underlying EBITDA up 16% on the p.c.p: 1H2015 1H2014 % Change Organic growth and winning market share, through strong value proposition around personalised service, TTV 406m 353m 15% technology and delivering ROI Revenue 37.0m 33.1m 12% Yield decline due to larger client wins but it
Slide 11: North America
North America Underlying EBITDA up 100% on the p.c.p. (40% organic): $AUD North America Continued market share growth 1H2015 1H2014 % Change CTM now one brand in 18 cities across 8 states, with good momentum into CY15 as economies of scale kick-in TTV (unaudited) 273m 138m 98% Small EBITDA mar
Slide 12: Asia
Asia $AUD Asia Underlying EBITDA up 15% on the p.c.p.: Top line growth in new clients primarily across 1H2015 1H2014# % Change corporate and wholesale segments Softer than expected leisure performance due to HKG protests effect weighed down overall TTV (unaudited) 437m 402m 8% TTV growth Str
Slide 13: Comparative Statutory Profit and Loss
Comparative Statutory Profit and Loss $AUD (m) 1H 2015 % change 1H 2014 Underlying EBITDA margins improved slightly as a result of improvement of TTV (unaudited) 1,115.9 127 490.7 margin in ANZ and Asia, despite tough Revenue and Other Income 83.8 43.3 economic conditions and impact of lower Opera
Slide 14: Group Balance Sheet ($m)
Group Balance Sheet ($m) $AUD (m) Dec 14 $m June 14 $m No debt Cash 81.7 32.0 Increase in cash reflects the equity raising of Receivables and other 97.0 103.3 $44.5m in December 2014 to fund the Total current assets 178.7 135.3 acquisitions of Chambers and Diplomat, 2 January 2015 PP&E 3.6 3.4 I
Slide 15: Key Financial Commitments – M&A
Key Financial Commitments – M&A AUD $m 1H16 2H16 1H17 2H17 1H18 2H18 1H19 Total Travelcorp¹ 4.1 USTravel¹ 3.4 Avia¹ 6.1 Diplomat¹ 2.4 Chambers¹ 9.8 9.8 9.8 TOTAL 11.7 2.4 9.8 9.8 9.8 43.5 Cash 9.7 2.4 4.9 4.9 4.9 26.8 component Stock 2.0 - 4.9 4.9 4.9 16.7 • Expectation that earn-outs funded from ca
Slide 16: Cash Flow Summary ($m)
Cash Flow Summary ($m) 6 mths FY15 6 mths FY14 $ AUD (m) $m $m The Group is debt free at 31 December 2014 EBITDA 19.1 9.3 Working capital has improved due to timing of Change in working capital 9.2 0.1 receivables collection, principally in Asia Income tax paid (5.5) (1.6) Interest (0.3) (0.3)
Slide 17: North America Acquisition Update
North America Acquisition Update • North American integration of brand and reporting complete • Integration of mid-office and back-office on track for completion by 30 June 2015 • Key Focus on staff and client retention, supplier synergies, new business opportunities • New acquisitions performing to
Slide 18: Europe Acquisition Update
Europe Acquisition Update • Successfully completed the acquisition of Chambers Travel Management 2 January 2015 (no 1HFY15 contribution). • Excellent interaction with management team • Chambers won best Travel Management Company UK award for 2015, making it 3 years in a row - reinforces M&A discipli
Slide 19: Strategy
Strategy Aspirations: To be in every major region with potential for emerging markets where suitable - CTM now in 23 countries and 46 cities Win market share via local client growth in all business segments and regions By working with our clients, continuing to develop new technology, client f
Slide 20: Trading Update and Guidance
Trading Update and Guidance Upgraded Guidance: • FY15 underlying EBITDA Guidance upgraded to be in the range of $46m-$48m. Previous guidance December 2014 above $45m Assumptions: • Acquisitions continue to perform to expectations • No further economic shocks, continuation of acquisition integration
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