Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — FY2013 Earnings Presentation
28 slides from Corporate Travel Management's earnings presentation, Aug 29, 2013
Slide 1: For personal use only
For personal use only travelctm.com Jamie Pherous, Managing Director Steve Fleming, CFO August 29, 2013
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: Highlights
Highlights Strong Client Wins & Retention For personal use only TTV (unaudited) ↑ 30% across Group Revenue # ↑ 21% Productivity project success, Underlying EBITDA ↑ 20% resulting in higher ANZ EBITDA margins, without compromising Underlying NPAT ↑ 16% client service or staff engagement Underlyin
Slide 4: Agenda
Agenda For personal use only • CTM Overview • FY13 in Review • Acquisition Update • Outlook
Slide 5: CTM Profile
CTM Profile For personal use only What we do: USA Denver Dallas Fort Worth Professional corporate travel services provider Houston New Orleans Baton Rouge Core value proposition: Lafayette • Personalised service model • Best in market technology Brisbane • Client benefit measured by ROI Gold Coast P
Slide 6: Aircraft Movements
Aircraft Movements For personal use only Images were snapped at 10.10am Australian local time (Friday 2AUG) on a live radar site, USA and Australia.
Slide 7: TTV Sales Growth since IPO
800 TTV Sales Growth since IPO: 19 Years of For personal use only $290m Acquisition ‘year on year’ sales $242m Organic Growth 600 TTV $m Highly leveraged to economic recovery 884 400 682 502 200 352 316 235 140 56 81 29 42 0 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13
Slide 8: Performance Since IPO Dec'10
Performance Since IPO Dec’10 Revenue $'000 EBITDA $'000 For personal use only 90,000 25,000 80,000 20,000 70,000 60,000 15,000 50,000 40,000 10,000 30,000 20,000 5,000 10,000 - - 2010 2011 2012 2013 2010 2011 2012 2013 EPS 20.0 ROE 60% 18.0 16.0 50% 50% 14.0 40% 38% 12.0 34% 32% 10.0 30% 8.0 20% 6.0
Slide 9: Agenda
Agenda For personal use only • CTM Overview • FY13 in Review • Acquisition Update • Outlook
Slide 10: Group Result
Group Result For personal use only Underlying EBITDA up 20% on p.c.p Change on PCP FY2013 FY2012 (%) Organic EBITDA ‘like for like’ ANZ up TTV $m 10.3%, USA up 96% on p.c.p. 883.8 681.3 +29.7% (unaudited) Improved EBITDA margins across the Revenue $m# 78.8 65.3 +21% Group due to execution of k
Slide 11: Key Financial Indicators ANZ and USA
Key Financial Indicators ANZ and USA For personal use only $AUD AUS/NZ USA • Maintenance of ANZ yield, despite economic 2013 2012 2013 2012^ softening and domestic price war amongst airlines TTV 718.5m 681.3m 165.3m 110.0m • Increase ANZ EBITDA margin through productivity gains and leveraging suppor
Slide 12: ANZ Economic Activity – Effect on FY13
ANZ Economic Activity – Effect on FY13 For personal use only • ANZ ‘like for like” profit growth up 10.3% p.c.p., 2H13 Effect v 1H13 FY14 YTD despite difficult economic conditions 2H average ticket Steadied/slight • Why? Execution of key drivers (win & retain price (ATP) 11% domestic recovery clie
Slide 13: Execution of FY13 Initiatives
Execution of FY13 Initiatives For personal use only
Slide 14: CTM Technology
CTM Technology For personal use only Key advances in FY13 - strengthening CTM’s competitive advantage and productivity improvements: • Business Intelligence reporting • Wotif booking engine, development partnership • Mobile Risk Platform • U Approve • Ticketbank • CTM Smart Technology, launched July
Slide 15: Comparative Statutory FY13 Profit and Loss
Comparative Statutory FY13 Profit and Loss For personal use only % of % of FY13 $'000 FY12 $'000 • EBITDA margins for ANZ and USA improved Income Income respectively. Group EBITDA percentage TTV (unaudited) 883.8 681.3 decline a result of USA combination in FY13. Revenue 78.8 65.3 Other Income 0.7 •
Slide 16: Balance Sheet Summary ($m)
Balance Sheet Summary ($m) For personal use only FY13 $m FY12 $m • Minimal debt ($3.3m @ 30 June) Cash 13.5 12.2 • Intangibles largely goodwill on acquisitions, and Receivables and other 28.7 26.1 increase reflects USA acquisitions Total current assets 42.2 38.3 • Receivables and payables movement i
Slide 17: Cash Flow Summary ($m)
Cash Flow Summary ($m) For personal use only FY13 $m FY12 $m • Operating cash flow has been positively impacted by EBITDA 20.0 18.0 improved supplier management and a positive Change in working capital 1.5 (7.3) contribution by the USA operations Income tax paid (5.2) (3.0) Interest (0.3) (0.2) • Ot
Slide 18: Agenda
Agenda For personal use only • CTM Overview • FY13 in Review • Acquisition Update • Outlook
Slide 19: USA Case Study R&A Travel – Organic Growth and Margins
USA Case Study R&A Travel – Organic Growth and Margins For personal use only FY13 - Execution of M&A Objectives: • Significant Organic Growth – cross-sell/sales rigour 2HFY13- AUD $'000 FY12- R&A FY13- R&A R&A • Increased profitability - CTM's business systems and disciplines • Retained key staff an
Slide 20: Travelcorp USA
Travelcorp USA For personal use only • Acquired Travelcorp May 2013, FY12 TTV USD120m NPBT USD1.9m • Travelcorp operates in 6 cities in Texas and Louisiana with 80 staff Strategic rationale: • Strategic Alignment - Travelcorp meets CTM’s strict acquisition criteria • Geographic Strategy - Texas and
Slide 21: Merger and Acquisition Discipline
Merger and Acquisition Discipline For personal use only Eight 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 Manag
Slide 22: Agenda
Agenda For personal use only • CTM Overview • FY13 in Review • Acquisition Update • Outlook
Slide 23: FY14 Guidance
FY14 Guidance For personal use only FY14 guidance 15%-20% underlying EBITDA growth on p.c.p. (circa $24.2-$25.2m EBITDA): Basis of Guidance: • Subject to no further erosion in the broader ANZ economy. • Integration of Travelcorp USA with existing business • Any acquisitions will be in addition to th
Slide 24: FY14 Initiatives
For personal use only FY14 Initiatives
Slide 25: FY14 Technology
FY14 Technology For personal use only FY14 continued investment in CTM Technology: • Business Intelligence Global rollout • Client Portal X – Next generation • Travel Forecaster • Enhanced Traveller Tracking • Hotel Review System • Taxi Solution • Globalfares Total investment in future technology ci
Slide 26: FY14 Exposure to Currency and Mining Sector
FY14 Exposure to Currency and Mining Sector For personal use only Currency Effect on corporate activity/CTM: • No correlation to currency movements and client Total TTV Vs Mining TTV 80,000,000 activity. 70,000,000 • Corporate sentiment and local GDP a very strong correlation (explains activity decl
Slide 27: Year Plan
5 Year Plan For personal use only Aspirations: • 5 year forward planning for ANZ, to ensure it continues to be a “fortress” of continued growth and high profitability that underpins global expansion strategy • To be in every major region (Asia, Europe, North America, ANZ) with potential for emerging
Slide 28: Questions?
Questions? For personal use only travelctm.com
Corporate Travel Management — FY2013 Earnings Presentation on 6ix