Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — H1 2021 Earnings Presentation
31 slides from Corporate Travel Management's earnings presentation, Feb 17, 2021
Slide 1: Half Year Results Presentation
ASX Announcement 17 February 2021 Half Year Results Presentation Attached is a copy of Corporate Travel Management’s Limited Half Year Results Presentation for the half year ended 31 December 2020. Authorised for release by the Board. Contact details Media enquiries: Alasdair Jeffrey – Rowland – Ala
Slide 2: Half Year Results 2021: Stronger, Larger, Ready for Recovery
Corporate Travel Management Half Year Results 2021. Stronger, Larger, Ready for Recovery. Date: 17 February 2021 Presenters: Jamie Pherous, Managing Director, Neale O’Connell, Global CFO and Cale Bennett, Deputy Global CFO www.travelctm.com
Slide 3: Disclaimer
Disclaimer The information in this presentation contains summary information about the current activities of Corporate Travel Management Limited ACN 131 207 611 (Company) and its subsidiaries. It should be read in conjunction with the Company’s other periodic and continuous disclosure announcements
Slide 4: Index
Index 1H21 Highlights Page 4 Regional Performance Page 9 Group Financial Summary Page 17 Acquisition Update Page 22 Technology - Competitive Advantage Page 26 FY21 Outlook Page 28 Page 3
Slide 5: 1H21 Highlights
| 1H21 Highlights. Page 4
Slide 6: Group financial highlights
Group financial highlights Change on Reported ($AUDm) HY21 • Underlying EBITDA loss of $15.7m P.C.P • New revenue growth drove the result, with strong revenue TTV (unaudited) 403.8 (88%) recovery at 33% of the p.c.p. Revenue and other income 74.2 (67%) • Liquidity strengthened through the half • Zer
Slide 7: Better than expected 1H21 performance
Better than expected 1H21 performance Criteria Market update 29 Sept 2020 1H21 outcomes 1. Underlying EBITDA 1H21 Loss of $2.9m per month to 31 October, then 1H21 loss $15.7m (+$5.5m) Loss including T&T acquisition1 $4.8m/month (1 Nov) January 21 loss $2.8m including T&T, despite Implies 1H21 loss o
Slide 8: Ready for recovery - executing to plan
Ready for recovery - executing to plan How What we said Outcomes Capital light model Lower fixed cost versus peers • Swiftly re-sized the cost base to limit losses and preserve cash • Kept cost base in line with activity, service levels not interrupted • Did not need to emergency raise High exposure
Slide 9: Transformational acquisition executed during 1H21
Transformational acquisition executed during 1H21 Largest Corporate Travel Players by TTV (AUD$bn)1 + #5 #7 #9 + • Positions CTM as the 5th largest corporate travel management PF TTV Uplift (CY19; AUD$bn)2 PF Revenue Uplift (CY19; AUD$m)2 company in the world • Supported by a strong group balance sh
Slide 10: Regional performance
| Regional performance. Page 4 Page 9
Slide 11: 1H21 Regional overview
1H21 Regional overview Australia & CTM Consolidated New Zealand North America Asia Europe Group Period ending Dec-20 Dec-19 Δ% Dec-20 Dec-19 Δ% Dec-20 Dec-19 Δ% Dec-20 Dec-19 Δ% Dec-20 Dec-19 Δ% Dec-20 Dec-19 Δ% REPORTED (AUD) $m $m $m $m $m $m $m $m $m $m $m $m TTV 403.8 3,310.2 (88%) 155.3 686.5 (
Slide 12: ANZ
ANZ 1H21 1H20 Δ% • Profitable for 1H21 – an extraordinary achievement on 29% revenue of the p.c.p. Reported (AUD) $m $m • EBITDA December 20 profit $1.9m when borders opened, proving CTM can operate a successful domestic-only TTV 155.3 686.5 (77%) business Revenue and other income 18.1 61.8 (71%) •
Slide 13: ANZ – case study in activity recovery
ANZ – case study in activity recovery ANZ total booking comparison % vs 2019 100% 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 01 02 03 04 05 06 07 08 09 10 11 12
Slide 14: Asia
Asia 1H21 1H20 Δ% • Better than expected result, focused on minimising losses until international returns Reported (AUD) $m% $m% • Winning business with CTM technology being a key driver (10.8) 1,299.8 (101%) of success TTV • Revenue more accurate reflection of activity than TTV given Revenue and ot
Slide 15: Europe
Europe 1H21 1H20 Δ% • Strong revenue performance despite on-going COVID-19 disruptions Reported (AUD) $m% $m% • Heavily skewed to domestic travel TTV 77.8 565.4 (86%) • Using our project expertise, provided travel services to support UK repatriation programme (>38,000 repatriated Revenue and other i
Slide 16: North America
North America • Region the largest contributor to revenue, new client wins 1H21 1H20 Δ% • Only region without government support. With like-for-like Reported (AUD) JobKeeper government support, NA would have broken $m% $m% even TTV 181.5 758.5 (76%) • Includes two months of T&T contribution Revenue
Slide 17: USA and UK – CTM regions leveraged to fastest vaccine roll-out
USA and UK – CTM regions leveraged to fastest vaccine roll-out ‘Pre-variant’ herd immunity projections look promising1 ▲22 Feb 21 ● 24 Apr 21 ▲ Healthcare and high-risk population immunised ▲9 Apr 21 ● 10 Jul 21 ● Herd immunity estimate ▲1 Apr 21 ● 9 Jun 21 ▲9 May 21 ● 2 Sep 21 ▲1 Jul 21 ● 8 Dec 21
Slide 18: Group financial summary
| Group financial summary. Page 17
Slide 19: Comparative underlying profit and loss
Comparative underlying profit and loss 1H21 1H20 Δ% • Revenue is a more accurate reflection of activity and $AUD (m) performance than TTV, given the abnormal level of TTV 403.8 3,310.2 (88%) cancelations, materially overinflating revenue to TTV 74.2 222.3 (67%) margins Revenue and other income Under
Slide 20: Underlying EBITDA reconciliation
Underlying EBITDA reconciliation Non-recurring items: $AUD(m) 1H21 1H20 Underlying EBITDA (15.7) 64.5 • Acquisition costs relate primarily to T&T acquisition as previously Acquisition costs (6.6) (0.6) flagged Integration costs (4.5) - • Integration costs – total T&T integration costs flagged as $13
Slide 21: Comparative statutory balance sheet
Comparative statutory balance sheet $AUD(m) Dec-20 Jun-20 Cash 124.6 92.8 • Acquisitions and capital raising have delivered a stronger and well positioned balance sheet for 2H21 Receivables and other assets 94.6 81.0 and beyond Total current assets 219.2 173.8 Investments and financial assets 7.9 0.
Slide 22: Cash flow summary
Cash flow summary $AUD (m) 1H21 1H20 EBITDA (27.4) 64.9 • Operating cash reflects EBITDA result and working capital Non-cash items 4.8 2.1 changes, predominately, refunds claimed Change in working capital (14.8) (46.9) • Capital raising injected cash to fund acquisitions and maintain Income tax paid
Slide 23: Acquisition update
| Acquisition update. Page 22 Page 22
Slide 24: T&T - Key transaction highlights
T&T - Key transaction highlights • Travel & Transport, CY19 TTV of USD$2.8bn (AUD$4.0bn)1 • CTM will strengthen its position as one of the leading corporate travel managers in the world based on CY19 TTV • Materially increases the size of CTM’s North American business, and offers a highly complement
Slide 25: Integration on track – executing material combination benefits
Integration on track – executing material combination benefits The combination of CTM and T&T was estimated to deliver USD$18m (AUD$25m)1 of synergies on a full run-rate basis, based on CY19 What we said Delivered Outcomes Combined Management • Retain T&T key leadership and create a combined • Combi
Slide 26: CTM is a much larger business post-COVID
CTM is a much larger business post-COVID AUD$m; CY19 Pro-Forma1 Pro-Forma CTM North CTM North CTM Pro-Forma T&T3 Synergies4 America ANZ Asia Group5 America Europe Europe Pro-Forma4 TTV2 4,025 - 1,528 1,168 5,177 1,544 1,372 2,748 10,842 Revenue 296 - 149 100 426 119 125 85 755 Underlying EBITDA 41 2
Slide 27: Technology – competitive advantage
| Technology – competitive advantage. Page 26
Slide 28: Pandemic response - continue to invest in capex
Pandemic response - continue to invest in capex Budget Optimisation • Unused Ticket Credit management tools • Negotiation with key suppliers to provide more favourable cancelation/change terms Safety & Hygiene integrated with Lightning proprietary OBT • Airline Reassurance Data for 100+ global airli
Slide 29: FY21 Outlook
| FY21 Outlook. Page 28
Slide 30: 2H21 Outlook
2H21 Outlook • Given evolving government decisions on border restrictions and vaccine impacts are unknown, CTM is not in a position to offer 2H21 guidance • Expectation that ANZ and EUR regions are profitable in 2H21 Key catalysts for returning Group profitability: 1. ANZ domestic borders (Bne-Syd-M
Slide 31: travelctm.com
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