Web Travel Group Limited · ASX:WEB
Web Travel — Webjet — Investor Presentation (November 2014)
38 slides from Web Travel's investor presentation, Nov 26, 2014
Slide 1: Company Strategy Update
For personal use only COMPANY STRATEGY UPDATE John Guscic Managing Director 26 November 2014 0
Slide 2: What is Webjet Limited?
What is Webjet Limited? For personal use only • Online travel company selling to both consumers and business organisations • B2C • Leading consumer brands (Webjet and ZUJI) WEBJET LIMITED • Regional coverage − Australia/New Zealand B2C Travel B2B Travel − Singapore/Hong Kong • B2B • Sells hotel room
Slide 3: Webjet Limited: Target EBITDA growth rates
For personal use only WEBJET LIMITED B2C Travel B2B Travel Target EBITDA growth rate Target EBITDA growth rate 5-10% pa for next 5 years 20% pa for next 5 years Strategy Update FY15 2 2
Slide 4: B2C Travel
For personal use only B2C TRAVEL Online travel for the consumer market Unsaved Document / 21/09/2012 / 14:14 Strategy Update FY15 3
Slide 5: B2C Travel: Australia and New Zealand
For personal use only WEBJET LIMITED B2C Travel B2B Travel Australia New Zealand Strategy Update FY15 4 4
Slide 6: Webjet: Offer a range of air and non-air products
Webjet Offer a range of air and non-air products For personal use only AIR Air • Domestic and International flights • Booking fee includes our 30 minute price guarantee Hotels • Over 150,000 hotels and 1 million hotel rooms on sale each day TTV Split (%) FY14 • Book accommodation in conjunction with
Slide 7: Webjet - Air: Market environment remains flat
Webjet - Air Market environment remains flat For personal use only • Our core market (Australian domestic travel) continues to be flat − In FY14, domestic leisure market growth ~0% (BITRE) − FY15 YTD domestic passenger traffic remains flat (1) Source: http://www.bitre.gov.au/statistics/aviation/dome
Slide 8: Webjet - Air: Competitive environment relatively unchanged
Webjet - Air Competitive environment relatively unchanged For personal use only Commission structures • Key competitors - Airlines Airlines - Other OTAs Domestic 0% • Metasearch has not been a key threat to date International ~ 5% plus over-rides − Structure of Australian market limits impact − 0% c
Slide 9: Webjet - Air: Resuming growth in the core business
Webjet - Air Resuming growth in the core business For personal use only • Despite a flat domestic leisure market, bookings for FY15 YTD have grown more than 10% compared to the same period last year − Website improvements providing better consumer experience − Improved onsite merchandising − New mob
Slide 10: Remains #1 OTA brand in Australia
Webjet - Air Remains #1 OTA brand in Australia For personal use only Source: Hitwise internet visitation reports, Online Travel Agency Category 2014 Strategy Update FY15 9
Slide 11: Webjet - Non air: Growing higher margin revenue streams
Webjet - Non air Growing higher margin revenue streams For personal use only Non-Air Initiatives Hotels • No longer a key growth focus due to intense market competition but continues to perform well in path • TTV expected to remain constant going forward Packages • Dynamic packages allow customers t
Slide 12: B2C Travel: Singapore and Hong Kong
For personal use only WEBJET LIMITED B2C Travel B2B Travel Australia Singapore Hong Kong Strategy Update FY15 11 11
Slide 13: ZUJI: Rationale for acquisition
ZUJI Rationale for acquisition For personal use only • Leading OTA in Singapore and Hong Kong; with substantial operations in Australia − Acquired from Travelocity in March 2013 for US$25 million • Rationale for acquisition (1) Status − Regional expansion in OTA space − Enhance already strong onli
Slide 14: Asian Market - Asia offers attractive growth potential
Asian Market - Background ZUJI Asia offers attractive growth potential For personal use only Online travel growth rates are higher than Australia/ New Zealand Online penetration rates are low Strategy Update FY15 13
Slide 15: Asian Market - High LCC penetration in APAC
Asian Market - Background ZUJI High LCC penetration in APAC For personal use only Expanding LCC offering to meet market demand Source: CAPA Strategy Update FY15 14
Slide 16: ZUJI: Post acquisition performance
ZUJI Post acquisition performance For personal use only • 18 months post acquisition − Business was losing $6 million EBITDA pa on acquisition − Cost synergies all extracted − Revenue synergies starting to flow through in Singapore and Australia – Hong Kong is taking longer than expected − Hotels no
Slide 17: ZUJI: Acquisition plan timeline
ZUJI Acquisition plan timeline For personal use only FY14 FY15 FY16 Business integration Completed IT Cloud transition Completed Cost take out Completed Quality improvement program Completed Chinese language sites Completed Mobile platform Completed LCC content Expected 2H Propelling the brand Strat
Slide 18: ZUJI: TTV growth in some markets
ZUJI TTV growth in some markets For personal use only • TTV growth flowing through in 2 of our TTV by region (%) FY14A 3 markets • Australia and Singapore showing growth − TTV expected to be up in both markets for FY15 − Better positioning of ZUJI offering HK SGP AU in Australia and Singapore • Hong
Slide 19: IT Transformation
Unsaved Document / 21/09/2012 / 14:14 For personal use only IT TRANSFORMATION Strategy Update FY15 18
Slide 20: IT: What was done and why?
IT What was done – and why? For personal use only WHAT? WHY? • Rewrote entire Webjet front end and • Running out of “headroom” moved to Cloud platform • Cost effective IT operations − Completed October 2013 • Needed adaptable/ flexible technology • Moved ZUJI onto Webjet platform platform to remain
Slide 21: B2B: Providing hotel rooms to partners
For personal use only B2B Providing hotel rooms to partners via the online channel Unsaved Document / 21/09/2012 / 14:14 Strategy Update FY15 20
Slide 22: B2B: Rationale for expansion into B2B market
B2B Rationale for expansion into B2B market For personal use only • Next step in becoming a global online travel company • Looking for growth opportunities − Growth opportunities remain in core Australian business but market is maturing − ZUJI acquisition provides B2C growth opportunities in Asia Pa
Slide 23: B2B: Overview of B2B market
B2B Overview of B2B market For personal use only • Sell hotel rooms to travel agent partners via online channel • Key suppliers − Hotel chains; individual hotels; third party Online versus offline penetration rates 2014 suppliers 100% • Considerable growth opportunities 80% − Global market ~$50 Bn (
Slide 24: B2B Travel: Middle East and Africa
For personal use only WEBJET LIMITED B2C Travel B2B Travel Middle East Africa Strategy Update FY15 23 23
Slide 25: LOH: What is it?
LOH What is it? For personal use only • Established in Dubai in July 2012 and Why Middle East? launched in February 2013 • Fast growing offline market • Start-up to #3 in market within 16 months • Highly fragmented market place − Annualised TTV run rate $80 million • In-house expertise facilitated s
Slide 26: LOH: Multi supply aggregation strategy
LOH Multi supply aggregation strategy For personal use only OTHER PLAYERS LOH Offer own inventory Offer inventory from all suppliers plus directly contracted hotels TRAVEL AGENT CUSTOMERS Unique product offering for the market – “last room availability” Strategy Update FY15 25 25
Slide 27: LOH: Sourcing strategy drives margin growth
LOH Sourcing strategy drives margin growth For personal use only Step 1: Step 2: Step 3: Multi-supply Direct Global chain dynamic inventory aggregation contracting in agreements - 2015 key cities Done Done Ongoing • 12 partners • 1,200 • Deals completed with; integrated agreements in − Hilton, IHG,
Slide 28: LOH: Business mix
LOH Business mix For personal use only Top Source Key Target Top Destinations Markets markets • Saudi Arabia • Turkey • United Arab Emirates • United Arab • South Africa • Turkey Emirates • Kuwait • Saudi Arabia • Qatar • United Kingdom • France • United States of America Considerable growth opportu
Slide 29: B2B Travel: Europe
For personal use only WEBJET LIMITED B2C Travel B2B Travel Europe Strategy Update FY15 28 28
Slide 30: SunHotels: What is it?
SunHotels What is it? For personal use only • Established B2B business based in TTV by region (%) FY14 Spain − FY13 EBITDA EUR 2.6 million − Expected on-going TTV margin 9% • Attractive inventory offering − 40,000 unique city and beach properties − 6,000+ directly contracted – including key beach pr
Slide 31: SunHotels: Acquisition rationale
SunHotels Acquisition rationale For personal use only • Second step in building a global B2B Acquisition details business • Purchase price EUR 19 million • Acquisition strategy more suitable for • 100% Euro-debt funded European market • $1 million acquisition costs − Unique properties difficult to a
Slide 32: B2B – 2016 and beyond
B2B – 2016 and beyond For personal use only • Shared technology platform rollout − Create common inventory pool enabling LOH and SunHotels to access inventory for their respective customer bases − Combined inventory to be available to B2C businesses − Rollout expected in FY16 • Build global B2B busi
Slide 33: FY15 Guidance
Unsaved Document / 21/09/2012 / 14:14 For personal use only FY15 GUIDANCE Strategy Update FY15 32
Slide 34: FY15 Guidance
FY15 Guidance For personal use only • Expect FY15 EBITDA of $27 million − After expensing $1 million costs associated with acquisition of SunHotels • B2C − Webjet • 10% growth in TTV and bookings YTD. Expect to continue for remainder of FY15 − ZUJI • TTV growth expected in Australian and Singapore b
Slide 35: Webjet Management Team
For personal use only WEBJET MANAGEMENT TEAM MD and Key Executives Unsaved Document / 21/09/2012 / 14:14 Strategy Update FY15 34
Slide 36: Executive Management Team
EXECUTIVE MANAGEMENT TEAM For personal use only Key Experience John Guscic • Associated with Webjet Limited since 2003 Managing Director, Webjet Limited − Board member since 2006; Managing Director since 2011 • Extensive experience in B2B space − Chief Commercial Officer, GTA based in London − Manag
Slide 37: Executive Management Team (cont'd)
EXECUTIVE MANAGEMENT TEAM (cont’d) Key Experience For personal use only David Galt • Substantial Travel experience, including 8 years at Webjet in senior CEO, Australia / New Zealand commercial and marketing roles • 13+ years in search engine, e-mail and mobile marketing Paul Ryan • Over 20 years of
Slide 38: For personal use only
For personal use only Strategy Update FY15 37 37