Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — FY2020 Earnings Presentation
35 slides from Corporate Travel Management's earnings presentation, Aug 19, 2020
Slide 1: FY20 Results Presentation
ASX Announcement 19 August 2020 FY20 Results Presentation Attached is Corporate Travel Management Limited’s full year results presentation for the year ended 30 June 2020. Authorised for release by the Board. Contact details Media enquiries: Alasdair Jeffrey – Rowland – Alasdair.Jeffrey@rowland.com.
Slide 2: Corporate Travel Management Full Year 2020 Results
Corporate Travel Management Full Year 2020 Results 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 FY20 Highlights Page 4 Positioning for Recovery Page 7 Activity Update Page 13 Regional Performance Page 19 Group Financial Summary Page 25 FY21 and Strategy Page 31 Page 3
Slide 5: FY20 Highlights
| FY20 Highlights Page 4
Slide 6: Group financial highlights
Group financial highlights Change on • Underlying EBITDA $65.0m ($74.4m applying AASB 16), Reported ($AUDm) FY20 P.C.P including $0.5m underlying EBITDA for 2H20 TTV (unaudited) 4,561.8 (29%) • Strong liquidity position: Revenue and other income 349.9 (22%) • Zero debt Underlying EBITDA¹ 65.0 (57%)
Slide 7: Better than expected 4Q20 performance
Better than expected 4Q20 performance Criteria Market update 7 May 2020 Year end outcomes 1. Underlying EBITDA 4Q20 Expected loss range $5-10m per month ^ Averaged $3m loss per month $2.2m loss July 2020 2. 4Q20 revenue $2-5m per month (5-10% of prior year) Averaged $11.5m* per month (27.5% of prior
Slide 8: Positioning for Recovery
| Positioning for Recovery Page 7
Slide 9: Positioning for recovery
Positioning for recovery How Outcomes Capital light model • Lower fixed cost versus peers • Can swiftly re-size the cost base, as required Strong balance sheet • Well positioned to take advantage of any M&A/industry consolidation that may occur due to COVID-19 • $60m net cash (net of client creditor
Slide 10: CTM has a high level of exposure to essential travel - 4Q20
CTM has a high level of exposure to essential travel - 4Q20 Represents relative regional contribution to revenue 4Q20 Europe - 38% North America - 35% Other 1% *EssentialANZ - 19% Services 84% *Essential Other Asia – 8% Services 38% 16% Other 62% *Essential Services 99% *Essential Services 84% Other
Slide 11: Over 81% of revenues are derived from off-shore markets
Over 81% of revenues are derived from off-shore markets North America Europe 4Q20 revenue split* ANZ 19% Asia 8% Europe 38% 38% Nth America 35% Flightradar24.com 2pm Local Time Wed 5th August 2020 • Lower reliance on one single market due to geographic diversification • Europe and USA the largest co
Slide 12: Ability to operate profitably as a domestic travel business
Ability to operate profitably as a domestic travel business Pre-COVID-19 Group monthly CTM can operate a high performing domestic-only business until international recovers: revenues approx $42m • Approx. 60% of pre-COVID19 group revenues ($25m/month) relate to domestic travel, generated from ANZ/EU
Slide 13: Technology response to COVID-19 - continue to invest in capex
Technology response to COVID-19 - continue to invest in capex Budget Optimisation • Unused Ticket Credit management tools Safety & Hygiene integrated with Lightning proprietary OBT • Airline Reassurance Data for 100+ global airlines, presenting airlines’ health and safety features within the booking
Slide 14: Activity Update
| Activity Update Page 13
Slide 15: Case Study - NZ recovery
Case Study - NZ recovery New Zealand Booking Comparison % 2020 vs 2019 120% NZ Ends 100% Lockdown 80% 60% 40% 20% 0% 01-May 08-May 15-May 22-May 29-May 05-Jun 12-Jun 19-Jun 26-Jun 03-Jul 10-Jul 17-Jul 24-Jul 31-Jul 07-Aug Take-aways: 1. Clear pent-up demand for corporate travel • Took just 12 weeks
Slide 16: North America outlook
North America outlook North America Booking Comparison % 2020 vs 2019 40% 2nd wave 30% 20% 10% 0% 01-May 08-May 15-May 22-May 29-May 05-Jun 12-Jun 19-Jun 26-Jun 03-Jul 10-Jul 17-Jul 24-Jul 31-Jul • Resilience of the US market. Despite deteriorating US COVID-19 statistics, steady client activity grow
Slide 17: Europe outlook
Europe outlook Europe Booking Comparison % 2020 vs 2019 40% 30% UK Repatriation project ends 20% 10% 0% 01-May 08-May 15-May 22-May 29-May 05-Jun 12-Jun 19-Jun 26-Jun 03-Jul 10-Jul 17-Jul 24-Jul 31-Jul • Post July, experiencing increasing activity with the opening of international travel between con
Slide 18: ANZ outlook
ANZ outlook ANZ Booking Comparison % 2020 vs 2019 40% VIC - NSW/QLD border closed QLD intrastate WA intrastate opens 30% opens 20% 10% 0% 01-May 08-May 15-May 22-May 29-May 05-Jun 12-Jun 19-Jun 26-Jun 03-Jul 10-Jul 17-Jul 24-Jul 31-Jul • Travel activity has doubled even through the second wave, due
Slide 19: Asia outlook
Asia outlook Asia Booking Comparison % 2020 vs 2019 40% 30% 20% 3rd wave 10% 0% 01-May 08-May 15-May 22-May 29-May 05-Jun 12-Jun 19-Jun 26-Jun 03-Jul 10-Jul 17-Jul 24-Jul 31-Jul • Region scaled back to minimal costs, given international travel reliance. Asia represents only 8% of 4Q20 revenue • Sinc
Slide 20: Regional Performance
| Regional Performance Page 19
Slide 21: FY20 regional overview
FY20 regional overview CTM Consolidated Australia & New Zealand North America Asia Europe Global o/head FY20 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 FY19 AUD $m $m $m $m $m $m $m $m $m $m $m $m TTV 4,561.8 6,457.5 (29%) 958.8 1,335.5 (28%) 1,146.3 1,459.1 (21%) 1,523.5 2,519.0 (40%) 933.2
Slide 22: North America
North America % • CTM’s largest contributor to revenue in 2H20, reinforcing the FY20 FY19 success of continuing client wins Change $m $m • The only region with no government support Reported (AUD) • Heavily weighted to domestic travel TTV 1,146.3 1,459.1 (21%) • New leadership executing to plan: Rev
Slide 23: Europe
Europe % • Region continues to materially outperform market, due to FY20 FY19 essential travel clients and winning business Change Reported (AUD) $m $m • Heavily weighted to domestic travel TTV 933.2 1,143.9 (18%) • Respected operator with essential travel providers resulting in a number of large tr
Slide 24: ANZ
ANZ % • Region continues to win market share and outperform market FY20 FY19 Change • ANZ region just the 3rd largest contributor to 4Q20 revenue Reported (AUD) $m $m • Heavily weighted to domestic travel and highly leveraged to TTV 958.8 1,335.5 (28%) domestic recovery, due to high on-line usage CT
Slide 25: Asia
Asia % • Unlike other CTM regions, Asia is predominantly reliant on FY20 FY19 international travel, with lower volume of essential travel clients Change Reported (AUD) $m $m • Transactions running at 2-5% of prior year volumes 1,523.5 2,519.0 (40%) • Reduced cost base as low as possible without comp
Slide 26: Group Financial Summary
| Group Financial Summary Page 25
Slide 27: Key financial highlights
Key financial highlights Financial results better than expected in 4Q20 as COVID-19 took hold with a rationalised cost base • Apr-June underlying EBITDA loss averaged only $3m/month (expected $5-10m/month) due to rapid cost downsize and higher than expected revenues relating to essential client base
Slide 28: Profit and loss
Profit and loss PCP % • COVID-19 impacted from late Feb 20 FY20 FY19 $AUD(m) Change • Includes $7.7m of global government grants in TTV 4,561.8 6,457.5 (29%) other income. Grants average $2.5m/month (JobKeeper a minority), but this is off-set by the Revenue and other income 349.9 449.5 (22%) cost of
Slide 29: Non-recurring items: COVID-19 impacts and actions
Non-recurring items: COVID-19 impacts and actions • Bad debts primarily market impacts and supplier failure e.g $AUD(m) FY20 Virgin totalling $13.0m, being • Credit losses - $4.6m 1H20: (3.7) • Volume based revenue impact - $8.4m Significant COVID-19 impacts: • Debtor collection strong - focus drove
Slide 30: Comparative statutory balance sheet
Comparative statutory balance sheet $AUD(m) Jun 20 Dec 19 Jun 19 • Cash has increased by $6.5m from 1H20 to $92.8m Cash 92.8 86.3 138.8 Receivables and other 81.0 278.5 339.4 • Approximately $60m of this balance is net cash (net of Total current assets 173.8 364.8 478.2 $2.4m client cash and $30m cl
Slide 31: Cash flow summary
Cash flow summary $AUD(m) FY20 FY19 • Strong operating cash flow of $79.2m EBITDA statutory 63.8 143.8 • Investing cash flows primarily relate to CTP acquisition Non-cash items (24.1) 2.9 in 2H20 Change in working capital 64.8 15.6 • FY20 capex broadly in line with guidance Income tax paid (21.2) (2
Slide 32: FY21 and Strategy
| FY21 and Strategy Page 31
Slide 33: Guidance
FY21 Guidance Given government decisions on border restrictions are unknown, CTM is not in a position to offer FY21 guidance Activity recap 4Q20 • Activity materially bounced off late April lows • 4Q20 underlying EBITDA loss was $9m (averaged $3m/month), with no further significant one-off costs exp
Slide 34: CTM's focus remains on long-term strategy and execution
CTM’s focus remains on long-term strategy and execution A track record of strong performance and execution • CTM has been successfully operating for 26 years • Since inception in 1994 CTM has delivered TTV, EBITDA and dividend growth in 24 of 26 years, in all economic conditions Huge potential growt
Slide 35: travelctm.com
ccm travelctm.com
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