Web Travel Group Limited · ASX:WEB
Web Travel — Investor Day (November 2017)
43 slides from Web Travel's investor day presentation, Nov 22, 2017
Slide 1: WebBeds B2B Investor Day
WebBeds B2B Investor Day 22 November 2017 - Melbourne 23 November 2017 - Sydney Page 1
Slide 2: Agenda
1. What is the B2B market? Agenda 2. Strategy update 3. Business overview 1. WebBeds Europe 2. WebBeds Asia 3. WebBeds Middle East, Africa and Americas (MEAA) 4. WebBeds Global Page 2 4. FY18 guidance and YTD trading update
Slide 3: What is B2B?
What is B2B? What’s important • Inventory offering • Pricing • Easy technology to install and integrate • Good customer, technical and operational support Page 3
Slide 4: WebBeds: >US$50 Bn TTV Market Opportunity
>US $50 Bn TTV Market Opportunity Europe Asia Middle East/Africa The Americas WebBeds #2 player yet less than 3% of total global Market Size (TTV $US) market $20 Billion $18 Billion $3 Billion $15 Billion Key market characteristics Large number of Varies by country Relationship focused client Strong
Slide 5: What WebBeds offers: Multi-supply aggregation strategy
Multi-supply aggregation strategy What WebBeds • Full inventory offering offers • Low cost operations • Aggregate all supply offerings The greatest and display lowest priced breadth and option depth of - direct website access or inventory at XML connection competitive prices Page 5
Slide 6: What WebBeds offers: The network effect
The network effect What WebBeds • Fastest growing B2B player in offers the world The greatest • Leveraging our deep management expertise across breadth and all regions of the world depth of inventory at competitive prices Page 6
Slide 7: WebBeds In Action
© WebBeds WebBeds In Action
Slide 8: Agenda
1. What is the B2B market? 2. Strategy update Agenda 3. Business overview 1. WebBeds Europe 2. WebBeds Asia 3. WebBeds Middle East, Africa and Americas (MEAA) 4. WebBeds Global 4. FY18 guidance and YTD trading update Page 8
Slide 9: WebBeds is #2 B2B Player Globally
WebBeds is #2 B2B Player Globally THE MAKING OF Feb 2013: Jul 2014: Nov 2015: Aug 2016: Nov 2016: Aug 2017: Started with Purchased LOH expands Sunhotels signs Launched FIT Acquired WebBeds: LOH in Dubai as an organic Sunhotels to service the to the Americas agreement with Thomas Ruums as an organic
Slide 10: Our Global Network
WebBeds global network stereo Our Global Network + Andorra * Maldives + Angola + Malta * Argentina * Mauritius + Armenia * Mexico * Australia * Micronesia + Austria * Moldova + Azerbaijan + Monaco + Bahamas + Mozambique * Bahrain * Namibia * Bangladesh + Nepal * Barbados * Netherlands * Belarus + Ne
Slide 11: WebBeds Strategy overview
• Market overview • Global market >US$50 billion TTV • Highly fragmented market with few global players WebBeds • Industry consolidation represents significant opportunity to gain share Strategy • Build on our #2 global B2B position • Currently the fastest growing B2B player in the world overview •
Slide 12: WebBeds Management restructure
WebBeds Manageme nt restructure Page 12
Slide 13: WebBeds Management restructure rationale
WebBeds Manageme nt • Structured around regions rather than brands • Being as close to our customers as possible will help deliver the most appropriate product restructure • offerings and solutions for their individual needs The various brands will continue to operate under the broader WebBeds umbre
Slide 14: WebBeds Strategy Update Europe
Europe Market size: US $20 billion WebBeds • Important B2B market with large number of independent hotels; TTV margins in general higher than other regions Strategy • Focus on consolidating our #2 position Update • • Leverage complementary Sunhotels and JacTravel inventory offerings under WebBeds Eu
Slide 15: WebBeds Strategy Update: Asia, MEA, Americas
Middle East & Africa Asia (MEA) Market size: US $18 billion WebBeds • Fastest growing B2B region in the world • Market size: US $3 billion Smaller overall market opportunity; TTV Strategy • Focus for next 3 years is to gain market share and become leading player in region • margins in general lower
Slide 16: Agenda
1. What is the B2B market? Agenda 2. Strategy update 3. Business overview 1. WebBeds Europe 2. WebBeds Asia 3. WebBeds Middle East, Africa and Americas (MEAA) 4. WebBeds Global Page 16 4. FY18 guidance and YTD trading update
Slide 17: WebBeds Europe Market overview
Overall Market Inbound to Europe 2016 616M International Tourist Arrivals to Europe, accounting for 50% of global inbound tourism Overall Market Inbound Growth WebBeds +6.4% Northern Europe Europe +2% 0% Western Europe +3.8% Central/Eastern Europe +1.3% Southern/ Mediterranean Europe Market Outbound
Slide 18: WebBeds Europe: Why are we winning share?
WebBeds Europe Technology Supply Destinations Customer Base Service Level Supporting Growth Why are we High direct Strong global position in beach, Stretches across corporate and Superior service levels to our trade • Modern, responsive website contracting share; • Flexible, scalable, proprietary wi
Slide 19: WebBeds Europe Success Stories
MAJOR SOURCE MARKETS M A J O R D E S T I N AT I O N S Nordic Countries Spain United Kingdom United Kingdom WebBeds Germany Spain USA Italy Europe Italy Greece TOP GROWTH SOURCE TOP GROWTH Success M A R K E T S (1) D E S T I N A T I O N S (1) Stories Germany Morocco France Italy Israel United Arab Em
Slide 20: WebBeds Europe FY2018 YTD highlights
Sales • Organic share growth in mature markets through expanded inventory offering to existing clients • Strong client acquisition pipeline in growth markets: UK, Spain, Germany, Italy, Eastern Europe, Baltics, Ireland & Israel WebBeds • Focus on Wholesaler, Tour Operator and OTA clients in all mark
Slide 21: WebBeds Europe: What does this mean – 2018 and beyond
Partnerships Differentiation in B2B via Thomas Cook Supply Scale increasing purchasing Finance WebBeds power SU P P LY Greater automation Europe FINANCE Differentiation in B2B What does Technology TECH this mean – Contracting, connectivity & SA L E S pricing 2018 and developments to drive growth Sal
Slide 22: Agenda
1. What is the B2B market? Agenda 2. Strategy update 3. Business overview 1. WebBeds Europe 2. WebBeds Asia 3. WebBeds Middle East, Africa and Americas (MEAA) 4. WebBeds Global Page 22 4. FY18 guidance and YTD trading update
Slide 23: WebBeds Asia Market Overview
High growth – Physical retail shops still very Forecast to grow at 6% CAGR from 2016 to 2021* relevant – OTA penetration is not thorough and travel WebBeds Asia is not a ‘Single Market’ – Each country has its own peculiarities, habits, companies are still investing in physical shops. E.g. Ctrip OTA
Slide 24: WebBeds Asia Market Overview
Love for specific chains or known Pre-book branding everything - Hong Kong Market – India Market Last Minute Demand (on day Very Risk adverse bookings) consumer - Indonesia Market – Japan Market DIVERSITY WebBeds Asia Market Asian Travellers Overview FRAGMENTED Hotels Local OTAs Global OTAs Internat
Slide 25: 4 Key customer categories in Asia
Importance Customer Key Category Customer Markets Relationship Pricing Inventory Technology Service 4 Key customer OTAs Low High High Medium High Korea, China, categories in Asia Corporate / Leisure High Medium Medium High Low Taiwan, Malaysia, Hong Kong, Agents Japan Hong Kong, Tour High Medium Med
Slide 26: The Asian Team
1 2 Management has Across various Strong mix of over 10 years working together levels of management – experiences The Asian as a team running multi-billion dollar Global, Regional and Local ensure we Team businesses 1) Quickly capture key relationships 3 4 2) Understand how to best capitalize on mar
Slide 27: The Asia Strategy
Highly Scalable Tools to give our TTV partners an added edge, e.g. Business Intelligence, Multiple Cost Currency, Flexible THE ASIA Trading Terms STRATEGY Securing ‘Winning’ Results Credentials over last 12 months WebBeds Asia Appointed as supplier to China Airlines for their Online Dynamic Packagin
Slide 28: What's Hot in 2018
Building on success of strategic Tapping Offline Clients partnership Offline agents still form a large proportion [of travel WHAT’S Our Strategic Partnership with DidaTravel has yielded success with good cross-selling between intermediaries] in many key Asian markets. WebBeds Asia is working on vari
Slide 29: Agenda
1. What is the B2B market? Agenda 2. Strategy update 3. Business overview 1. WebBeds Europe 2. WebBeds Asia 3. WebBeds Middle East, Africa and Americas (MEAA) 4. WebBeds Global Page 29 4. FY18 guidance and YTD trading update
Slide 30: WebBeds MEA Market Overview
Competitive Market Trends WebBeds Environment MEA • Political instability threatens to • WebBeds is the #3 player in market undermine economic recovery Market • Recent rise of oil prices & minor • • Local OTAs/B2C players growing share Overall market conditions causing some Overview improvement in B
Slide 31: WebBeds MEA Business Overview
Why are we winning Customer Types share?and local • Credibility, relationships WebBeds knowledge/presence • Wholesale & Retail travel agents • Credibility, relationships and local MEA (majority) • • Competitive product (DC and TPS) knowledge/presence Competitive pricing Business • Aggregators/Consol
Slide 32: WebBeds Americas Market Overview
Competitive Market Trends Environment WebBeds Americas • North America - healthy travel economy & positive consumer confidence level • • Dominated by 2 global players Heavily hotel chain oriented consumer Market • LATAM - challenged Brazilian economy behaviour and political unrest • Multi-supplier p
Slide 33: WebBeds Americas Business Overview
Why are we winning Customer Types share? WebBeds • Loyalty program fulfillment companies • Strong relationships & local expertise Americas • Tour Operators/Consolidators under reciprocal partnership • Empowering clients with many suppliers under one commercial agreement Business • OTAs • Dynamic, co
Slide 34: WebBeds MEA and Americas FY2018 YTD Highlights
• Continue FY17 focus on deepening distribution capabilities in identified key WebBeds • markets Consolidation of talent for effective/efficient Distribution and Sourcing activities MEA and • Domestic and intra-regional content a top priority in both MEA and the Americas Americas • Continued focus o
Slide 35: Agenda
1. What is the B2B market? 2. Strategy update Agenda 3. Business overview 1. WebBeds Europe 2. WebBeds Asia 3. WebBeds Middle East, Africa and Americas (MEAA) 4. WebBeds Global 4. FY18 guidance and YTD trading update Page 35
Slide 36: WebBeds Global Overview
New Strategic role • Identify and drive revenue synergies across the regions to accelerate growth • Share knowledge, expertise, resources across the regions to drive efficiencies WebBeds 4 Key Areas of Focus Global • Commercial – building buying, distribution and brand power • Breadth and depth of i
Slide 37: WebBeds Commercial Focus
• Buying Power • Short Term: Shared inventory across WebBeds platforms • Consolidated 3rd party relationships; improved commercial terms WebBeds • • Single Competitive Contracts – One WebBeds voice, One deal Dynamic Inventory – global chains & supply technology Commercial • Distribution Power Focus
Slide 38: WebBeds IT Focus
Platform consolidation to drive revenue opportunities and efficiencies • Perform an independent review of the WebBeds platform to determine the future WebBeds solutions to deliver the Group’s objectives • Balance IT spend on tactical and strategic initiatives at a Group level IT • Streamline distrib
Slide 39: WebBeds Finance Focus
Common system • Design, implement and maintain common reporting and planning formats, structures and WebBeds processes • Define and implement the appropriate balance between central and decentralised Finance functions - taking advantage of “shared service” opportunities where appropriate Focus Impro
Slide 40: WebBeds Operations Focus
Focus on customer service excellence • Leverage existing contact centres to better serve WebBeds’ combined customer base (access to skills, time zones, cost effectiveness) WebBeds • Establish customer service standards across all WebBeds brands to ensure a consistent customer experience globally Ope
Slide 41: FY18 EBITDA guidance
FY18 EBITDA guidance Page 41
Slide 42: FY18 YTD Update: bookings growth target
FY18 – FY20 bookings growth target • As bookings are a key driver of growth, our aim is to continue to gain market share and grow FY18 more than the underlying market in each of our businesses: • 3 year B2C growth target – Bookings growth of more than 3 times the underlying market YTD growth rate. •
Slide 43: FY18 Guidance
FY18 EBITDA Guidance • On track to deliver $3 billion TTV • FY18 EBITDA guidance of $80 million FY18 • This reflects the inclusion of the below items: • One-off JacTravel acquisition costs of $1.2 million GUIDANC • Impact of $1.7 million Netflix tax (GST on inbound intangible supplies made by overse