Slide 1: Flight Centre Limited 2006 Full Year Results
Flight Centre Limited 2006 Full Year Results 31 August 2006 — amended presentation
Slide 2: 2006 Full Year Results
2006 Full Year Results FLIGHT CENTRE 2006 2005 Variance TTV $7.8b $6.9b 13% Revenue $1.0b $899.0 m 11.6% Net Profit (Before Tax) $120.0 m $ 115.6 m 4% EBITDA $148.0 m $140.0m 6% NPAT $79.9 m $76.9m 4% Dividend Final 32.0c /share 28.0¢ /share 14%
Slide 3: Historical Performance
Historical Performance FLIGHT CENTRE 2006 2005 2004* 2003* TEV (bil) 78 6.9 5.9 4.6 % increase on LY 13% 17% 28% 28% Income Margin 12.7% 13.0% 13.5% 13.7% PBT (mil) 120.0 $115.6 121.3 102.3 NPAT(mil) 79.9 76.9 81.9 70.0 % increase on LY 4% (6%) 17.0% 12.9% EBITDA 148.0 140.0 157.0 126.9 Capex (mil)
Slide 4: 2006 Overview
2006 Overview FLIGHT CENTRE kobe Ee * Continued sales growth — exceeded $1b in revenue for 15* time e Return to full year profit growth — good improvement after being 23% down at first quarter and 4% at half year ¢ Corporate travel strength — FCm Travel Solutions now in 50 countries and important co
Slide 5: Surcharges... an example: Anatomy of an Airfare
Surcharges... an exal FLIGHT CENTRE kobe Ee Anatomy of an Airfare The Flight: Qantas, Sydney-Loncon return with a Singapore stopover Gross Price: $1,558 Plus Taxes/Surcharges: $509.48* (zero margin) Total cost to customer: $2,067.48 Flight Centre Limited earns zero margin on 25% of the fare * Qantas
Slide 6: Taxes and Surcharges
Taxes and Surcharg FLIGHT CENTRE kobe Ee A breakdown of the applicable taxes and surcharges ... * $38.00 - Australian departure « $3.40 ~- Noise levy tax applicable to Sydney arrivals thn * $312.00 - Fuel surcharge 61% « $18.00 ~- Singapore passenger service charge » $32.80 ~- UK passenger service c
Slide 7: 2006: Highlights
2006: Highlights FLIGHT CENTRE kobe Ee « FCm Travel Solutions: Good profits and expansion, set to account for at least half of company profit within 5 years e South Africa: Significant profit increases from small base in leisure and corporate e North America: Increased corporate travel profit, Canad
Slide 8: 2006: FCm Goes Global
PLIGHT CENTRE ete 2006: FCm Goes Glo 8
Slide 9: 2006: Performance – Australia and New Zealand
2006: Performance Australia New Zealand e TTV: $4.9b, up 10% e TTV: $657.7m, up 3% e Reasonable front-end e Disappointing results leisure performance e Poor back-end results — linked to surcharge e Margin pressure from home carrier growth e Corporate profitability ¢ Shop of Future and problem franch
Slide 10: 2006: Performance – UK and South Africa
2006: Performance UK South Africa e TTIV: $961.8m, up 6% e TTV: $401.9m, up 10% e Disappointing profit e Strong leisure and growth corporate results e Significant investment in « Good profit growth from leisure - 17 new shops relatively small base e Targeting greater returns in both leisure and corp
Slide 11: 2006: Performance – North America
2006: Performance FLIGHT CENTRE ka i ae North America Leisure (continued) © TTV: $585.3m, up 22% e 2°¢ half profit in Canada . leisure e Strong SME profit growth . in FCm businesses in USA *_- Small reduction in US and Canada leisure losses ¢ Canada home to most ¢ Review of LA retail profitable FCm
Slide 12: 2006: Performance – India, China and Hong Kong
2006: Performance FLIGHT CENTRE ka i ae India China & Hong Kong e TTV: $282m, up 100% © TIV: $54.1m, up 22% e Strong results and growth , ° Seeking productivity e Sales growth and improvements in growth slight reduction in market losses e Aim to generate profits in both regions by 2008
Slide 13: 2007: Issues and Strategies
2007: Issues and S FLIGHT CENTRE kar ee Growth - continued expansion (leisure, wholesale and corporate), mainly overseas Gross margins — shift in airline surcharge policies slowly gaining momentum, higher margin product sales and preferred suppliers Online — further enhancements to improve transacti
Slide 14: 2007: Guidance
2007: Guidance FLIGHT CENTRE kobe Ee ¢ Some significant current and future challenges to address « Company fundamentals sound — sales growth, geographic and brand diversity, strong cash position e Targeting double-digit TTV growth « Aiming to bring profit growth closer into line with TTV growth e Bu
Slide 15: End of Presentation – Questions
End of Presentation kobe Ee Questions
Slide 16: Appendices
Appendices FLIGHT CENTRE kobe Ee Brand Diversity Shop Numbers Cash and Investments Depreciation & Amortisation Shop of the Future
Slide 17: Business Units by Country
Business Units by Cc FLIGHT CENTRE ka i ae Current Year Total Australia NZ Canada us UK South Africa HongKong China India Total Leisure 693 116 129 19 100 96 0 i] i] 1,183 FCm Solutions 95 21 12 6 58 i] 7 9 13 230 Wholesale / Complementary 116 42 an 6 23 28 8 5 0 239 Current Year Total 904 179 152 3
Slide 18: Cash & Investments
Cash & Investments FLIGHT CENTRE kobe Ee Jun 06 Jun 05 % Var A$m A$m Company Cash 113.5 98.9 14% Client Cash 160.7 140.7 14% Investments 204.8 192.4 6% Total 479.0 432.0 11%
Slide 19: Depreciation & Amortisation
Depreciation & Amo FLIGHT CENTRE kobe Ee Jun06 Jun05 % Var A$Sm A$m Depreciation 25.1 27.0 (7%) Amortisation Other Intangibles 11.4 6.2 84% Total 36.5 33.2 10%
Slide 20: Brand Diversity
FLIGHT Brand Diversity CENTRE Leisure Corporate ¢ Flight Centre, flightcentre.com e FCm Travel Solutions e Escape Travel, e Cj Events escapetravel.com.au e Student Flights, studentflights.com.au e Stage&Screen e Kistend/Campus e Travel Associates e Overseas Working Holidays, Wholesale owh.com.au e I
Slide 21: Shop of the Future
Shop of the Future Key Features e LCD screen with rotating destinational imagery e Customer terminals for client research e “On-sale Now” panel featuring current ad campaigns and specials ¢ Swivelling consultant terminals that allow clients to view product and destinational images e Improved world m
Slide 22: FLIGHT
FLIGHT CENTRE. Rb HE Ae ani