Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — H1 FY2018 Earnings Presentation
30 slides from Corporate Travel Management's earnings presentation, Feb 20, 2018
Slide 1: Half year results 2018
CORPORATE TRAVEL MANAGEMENT Half year results 2018. Presented by: Jamie Pherous, Founder & Managing Director Date: 20th February, 2018
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: Overview
Overview CTM is an award-winning provider of innovative and cost effective travel management solutions to the corporate market. Its proven business strategy combines personalised service excellence with client facing technology solutions to deliver a return on investment to clients. Headquartered in
Slide 4: Group Result Highlights
Group Result Highlights Change on Reported ($AUDm) 1H2018 • Underlying EBITDA up 32% to $53.5m. On a constant currency ͣ P.C.P basis, underlying EBITDA up 35% to $54.6m, (-$1.1m FX effect) TTV (unaudited) 2,258.5 +21% • Strong TTV growth despite negative impact from ticket price decline in Asia Reve
Slide 5: Growth profile
Growth profile.
Slide 6: Underlying 1H18 EBITDA Growth Summary (AUD$m)
Underlying 1H18 EBITDA Growth Summary (AUD$m) Full Year EBITDA Build $125m 57% AJT 0.5 71.5 43% Redfern 6.2 53.5 (7.8 in constant currency) 1H 2H *M&A EBITDA values represent EBITDA at time of acquisition announcement for p.c.p. • Organic growth the catalyst for performance, representing +16.6% orga
Slide 7: CTM Global Footprint and 1H Performance Overview (AUD$m)
CTM Global Footprint and 1H Performance Overview (AUD$m) _____________________________________________________ EUROPE TTV run Market Size USD500b CTM Market Share <1% rate TTV $457.0m (+181%) (*+182%) approx. Revenue $35.9m (+114%) (*+114%) EBITDA $12.9m (+239%) (*+242%) AUD$5bn ASIA# Market Size US
Slide 8: Recap: How and why we grow – Executing to Plan
Recap: How and why we grow – Executing to Plan. OUTCOMES OUTCOMES • 1H18 - record value of new clients won at • High staff engagement across the world record conversion rates across all regions CLIENTS PEOPLE • Staff empowerment drives agile decision • 97% + Client retention making INTUITIVE PRODUCT
Slide 9: Regional Performance
Regional Performance.
Slide 10: 1H18 Regional overview
1H18 Regional overview Australia & New CTM Consolidated Zealand North America Asia# Europe Group Dec-17 Dec-16 Dec-17 Dec-16 Dec-17 Dec-16 Dec-17 Dec-16 Dec-17 Dec-16 Dec-17 Dec-16 REPORTED AUD $m $m $m $m $m $m $m $m $m $m $m $m TTV 2,258.5 1,870.2 21% 541.2 449.6 20% 592.4 619.1 (4%) 667.9 638.6 5
Slide 11: ANZ
ANZ 1H18 1H17 % Change Underlying EBITDA up 20% on the p.c.p.: Reported (AUD) $m $m • Region continues to outperform market TTV 541.2 449.6 20% • Winning market share through record new client wins and retention Revenue 50.5 41.7 21% • 80% of all client transactions are on-line Underlying EBITDA 18.
Slide 12: North America
North America 1H18 1H17 % Change Underlying EBITDA up 6% on the p.c.p. (9% on constant currency): Reported (AUD) $m $m • As previously flagged challenging 1st half characterised by: TTV 592.4 619.1 (4%) • Weather, floods and fire – USD2m effect to profit Revenue 59.4 60.4 (2%) • Additionally client
Slide 13: Positive impact of USA tax changes on NPAT
Positive impact of USA tax changes on NPAT Further upside to FY17 FY18# FY19 the NPAT of the Group Effective tax amount 38% 31% 24% NPAT upside in USD 2.1m 3.3m NPAT upside in AUD* 0 2.8m 4.3m • Additional cash benefit from 100% tax deduction on capital expenditure and R&D (FY19 estimate USD1.5-2.0m
Slide 14: Asia
Asia Underlying EBITDA 0% on the p.c.p. (+4% on constant 1H17 % 1H17 1H18 % Change currency): Adjusted* Change reported Reported (AUD) $m $m $m • Unexpected further ticket decline negatively impacting supplier revenues 1H TTV 667.9 600.4 11% 638.6 5% • Underlying business performing well (+16% TTV i
Slide 15: Europe
Europe % 1H18 1H17 Change Underlying EBITDA up 239% on the p.c.p.: Reported (AUD) $m $m • Strong execution and outperformance TTV 457.0 162.9 181% • Improved EBITDA margin a combination of move to online and Redfern Revenue 35.9 16.8 114% contribution, scale Underlying EBITDA 12.9 3.8 239% • On-line
Slide 16: Group Financial Performance
Group Financial Performance.
Slide 17: Comparative Statutory Profit and Loss
Comparative Statutory Profit and Loss $AUD (m) % 1H18 1H17 Change TTV 2,258.5 1,870.2 +21% • Increased EBITDA margin resulting from automation, scale and integration execution Revenue and other income 172.8 150.5 +15% • Yield negatively impacted from ticket price decline in Asia, EBITDA adjusted for
Slide 18: Group Balance Sheet
Group Balance Sheet $AUD (m) Dec June 2017 2017 • Fall in receivables and payables from June 2017 due Cash 72.4 79.2 to seasonality Receivables and other 188.8 205.7 • Future acquisition earn-out payables approximately Total current assets 261.2 284.9 $21.8m PP&E 5.7 5.3 • Borrowings at December 201
Slide 19: Normalised Operating Cash Conversion
Normalised Operating Cash Conversion $AUD (m) 6mth 6mth • Timing of BSP payments have largest impact on operating cash flow. These timing differences are ended ended short term (1-7 days) Dec 17 Dec 16 • New component, Rail Settlement Plan (RSP) in Cash flows from operating activities 25.7 42.4 Euro
Slide 20: Cash Flow Summary
Cash Flow Summary $AUD (m) 6mth FY18 6mth FY17 Statutory EBITDA 53.1 40.1 • Investing cash flows primarily relate to Travizon and Redfern earn-out consideration Non cash items 0.5 (0.2) Change in working capital (13.4) 14.1 • FY18 Capex expected to be approximately $11m, Income tax paid (13.2) (11.0
Slide 21: Acquisition Discipline
Acquisition Discipline.
Slide 22: Recap: M & A Discipline
Recap: M & A Discipline In keeping with CTM’s strong M&A discipline, all 17 acquisitions followed this strict criteria Targets must possess: Proven Selection • Strong Market Reputation/Market Leader and Integration execution • Excellent Management Team Organic growth post-acquisition • High Historic
Slide 23: CTM SMART Technology
CTM SMART Technology.
Slide 24: CTM approach: Best practice, delivering best results
CTM approach Best practice, delivering best results. User experience: Focusing on Quality Assurance: Ensuring our delivering technology that is easy to technology meets the high standard we use and adopt set, CTM has been accredited ISO 27001:2013 & ISO9001:2015 Development: World Class Agile & Cont
Slide 25: Technology regional centres now located in all global regions
Technology regional centres now located in all global regions Region Tech hub location ANZ Sydney, Australia EMEA Hale, United Kingdom NA Los Angeles, California ASIA Hong Kong Goal : Accelerate speed to market and tailor client development, in-region PAGE 25
Slide 26: FY18 Guidance Update and Strategy
FY18 Guidance Update and Strategy.
Slide 27: FY18 Guidance update
FY18 Guidance update Original FY18 underlying EBITDA range of AUD$120-125m (22.0%-27.5% growth on the p.c.p.) CTM is tracking at the top end of FY18 Guidance, despite unfavourable FX. This implies 2H EBITDA organic growth on the p.c.p. of nearly 23%, supporting the underlying success of the business
Slide 28: Key Strategic FY18 Initiatives
Key Strategic FY18 Initiatives Continued Organic Client Facing Productivity & Leverage Our Scale Our People Growth & Acquisition Innovation Internal Innovation & Geography 1. Enhance our value 1. Implementation of 1. Internal innovation 1. Demonstrating 1. Empower our teams proposition to client SMA
Slide 29: Questions?
Questions?
Slide 30: Thank you
Thank you. int corporate travel management
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