Slide 1: John Guscic, Managing Director, August 31, 2017
by JOHN GUSCIC, Managing Director August 31, 2017 Page 1
Slide 2: B2C Travel and WebBeds
spanning both consumer markets (through B2C) and global wholesale markets (through B2B) B2C TRAVEL B2B TRAVEL - WebBeds Leading online consumer travel Online fulfillment of hotel bookings for brands our travel industry partners Webjet WebBeds Global Coverage: • Market leading OTA in Australia and •
Slide 3: FY17 highlights
• Webjet OTA continues to demonstrate strong growth in both domestic and international flight bookings and Packages • Online Republic fully integrated • 3 key events during the year has helped develop a global footprint across all key markets ➢ Strategic sourcing partnership with Thomas Cook in Augu
Slide 4: Continues to gain share
Continues to gain share; Robust bookings growth; bookings growth more than providing car hire for Webjet 6 times the market since January 2017 Continues to gain market New markets delivering From start up to $90 share in Middle East; growth; Thomas Cook million annualised TTV North America gaining c
Slide 5: Webjet Limited FY17 Financials
webjet limited FY17 FINANCIALS
Slide 6: Technical accounting matter
• On 28 July 2017 Webjet notified the market of a disagreement with its auditor, BDO Audit (SA) Pty Ltd (BDO), on a technical accounting matter relating to its financial statements for the year ending 30 June 2017 • In August 2016, Webjet entered into an agreement with Thomas Cook as preferred suppl
Slide 7: Webjet has decided to adopt BDO's treatment
• Since 28 July 2017, Webjet has worked closely with its financial and accounting advisors and with ASIC to resolve the most appropriate way to account for this transaction • Webjet has decided to adopt BDO’s treatment • Webjet’s leadership team is better engaged in focusing on executing its growth
Slide 8: TTV Revenue Costs
Statutory Result Continuing Operations (2) FY17 FY16 Incr / (Decr) FY17 FY16 Incr / (Decr) $m $m $m % $m $m $m % TTV 2,043 1,630 413 25.3% 1,950 1,437 513 35.7% Revenue 218.7 154.5 64.2 41.5% 188.8 137.6 51.2 37.2% Revenue as Principal 16.2 0.0 16.2 n/a 16.2 0.0 16.2 n/a Total Revenue 234.9 154.5 80
Slide 9: Group TTV continuing up 35.7%
Continuing Operations (1) FY17 FY16 Inc. / (Dec.) $m $m $m % TTV Webjet 1,141 990 152 15.3% Online Republic 267 22 245 1096.4% Zuji 59 80 (20) (25.5%) Group TTV (continuing) up 35.7% LOH 217 162 56 34.3% • B2C TTV up 34.5% Sunhotels 245 184 62 33.5% Fit Ruums 19 0 19 n/a • Webjet TTV up more than 15
Slide 10: TTV Revenue Costs
Continuing Operations (1) (2) Underlying Performance (Inc TC) (1) (2) FY17 FY16 Incr / (Decr) FY17 FY16 Incr / (Decr) $m $m $m % $m $m $m % TTV 1,950 1,437 513 35.7% 1,950 1,437 513 35.7% Revenue 188.8 137.6 51.2 37.2% 199.8 137.6 62.2 45.2% EBITDA 51.0 36.3 14.6 40.3% 62.5 36.3 26.2 72.0% EBIT 44.1
Slide 11: Summary Balance Sheet Jun-17
Summary Balance Sheet Jun-17 Jun-16 Change Cash balance $m $m $m • $178.1 million as at 30 June 2017 includes $21.2 million of Cash & equivalents 178.1 116.2 61.9 client funds Trade & receivables 120.8 80.8 40.0 • $116.2 million as at 30 June Other current assets 40.9 9.4 31.5 2016 includes $21.6 mi
Slide 12: Cash Flow Summary
FY17 FY16 Operating Cash Conversion FY17 FY16 Cash Flow Summary $m $m $m $m EBITDA 51.0 36.3 Cash flow from Operating Activities 34.8 46.6 Change in working capital (3.8) 15.8 Add back: tax and interest 12.4 5.5 Income tax paid (12.1) (5.1) Total Operating cash conversion 47.2 52.2 Interest (0.3) (0
Slide 13: CAPEX Initiatives
CAPEX INITIATIVES • FY17 CAPEX $17.4 million, up 94.1% year-on year • Land & Buildings - Sunhotels office • On a like for like basis, B2B and B2C expansion to support the Thomas Cook (excluding Online Republic) CAPEX up 22%, contract with the balance due to a range of initiatives • Innovation - Bloc
Slide 14: Dividend history
10.00¢ 8.00¢ 7.25¢ 7.25¢ 7.00¢ . 7.50¢ 6.00¢ 6.25¢ 6.25¢ 6.50¢ FY13 FY14 FY15 FY16 FY17 Interim Final Page 14
Slide 15: Total Booking Growth
Total Booking Growth: • B2C 3 yr CAGR = 20% • B2B 3 yr CAGR = 128% • B2C+B2B = 36% FY14 FY15 FY16 FY17 Webjet Webjet Webjet Webjet Lots of Hotels Lots of Hotels Lots of Hotels Lots of Hotels Sunhotels Sunhotels Sunhotels Online Republic Online Republic FIT Ruums Organic Acquisition Page 15
Slide 16: B2C Travel
B2C TRAVEL Leading Online Consumer Travel Brands . ef 2 webjet.com.au
Slide 17: Webjet FY17
A$ FY17 FY16 • TTV 1,468 million 1,092 million • Revenue 151.2 million (1) 106.6 million EBITDA 58.1 million 38.7 million 1. To demonstrate underlying performance on a comparative basis, FY17 revenue Revenue/ TTV excludes $16.2 million revenue earned by 10.3% 9.8% Webjet Exclusives now actin
Slide 18: Webjet.com.au Australia / New Zealand
WEBJET.COM.AU AUSTRALIA / NEW ZEALAND
Slide 19: Webjet Bookings FY17
Webjet FY17 FY16 Growth Bookings 1,404,000 1,261,000 11.4% Flights 12.7% Packages 38.2% Hotels (21.1%) TTV $1,141 million $990 million 15.3% EBITDA $43.1 million $37.7 million 14.3% Business performance continues to be strong • Bookings up 11.4%; Flights up 12.7%; Packages up 38.2%; Hotels down 21.1
Slide 20: Ongoing product improvements
Ongoing product improvements driving increased visitation and conversions Enhanced understanding Industry leading Increased ancillary Broadening of payment of consumer merchandising product sales for Low types (e.g. NAB rewards purchasing behaviours capabilities for airline Cost Carriers meeting pay
Slide 21: Webjet Booking Growth and TTV Growth
Webjet Booking Growth Webjet TTV Growth ‘000s $m 1,600 1,200 1,400 1,000 1,200 1,000 12-Year CAGR: 800 12-Year CAGR: 800 18% 600 25% 600 400 400 200 200 0 0 FY05 FY17 FY05 FY17 Webjet Margin Webjet Revenue Growth % of TTV $m 12.0% 140 10.0% 120 100 8.0% 12-Year CAGR: 12-Year 80 6.0% increase: 29% 60
Slide 22: Webjet outperforming the market
% TTV (FY17) 12.7% Year-on-year 39% 15% Webjet bookings 61% 85% International Domestic Webjet outperforming the 11.3% 1.5% Webjet Domestic Domestic Bookings (1) • market by more than 6 times Bookings (1) Domestic Passenger numbers 20.7% 3.7% growth – 12 months to June 2017. Source: BITRE. Webjet Int
Slide 23: Webjet Packages
• Webjet Packages allows • Exclusives separated out from • Travel insurance and car hire customers to dynamically Webjet Packages during the year continue to demonstrate strong package flights, accommodation to focus on Tour product offerings TTV growth. Insurance TTV up and car hire to best suit th
Slide 24: Zuji was sold to Uriel Aviation Holding Ltd
Zuji was sold to Uriel Aviation Holding Sale completed effective 31 Ltd, a Hong Kong based travel December 2016 technology business in November 2016 Purchase price of $56 million Webjet is currently operating Zuji represented a $28.0 million gain over Australia under license. It is not the purchase
Slide 25: Online Republic New Zealand
ONLINE REPUBLIC NEW ZEALAND Page 25
Slide 26: Online Republic FY17
Online Republic FY17 FY16 (1) Change Bookings 446,000 348,000 28% TTV $267 million $238 million 22% EBITDA $15.0 million $12.0 million 25% Business meeting acquisition projections after first full year of ownership • Bookings growth up 28% on pcp(1) Cars and Motorhomes growing in excess of their und
Slide 27: Motorhomes and car hire growth
• Motorhomes generated • Car hire generated bookings • Continued to grow but bookings growth of 22% growth of 31% experienced challenging • Growth in foreign language • From January 2017, car hire weather events over March- bookings provided through Webjet now provided April 2017 which impacted dive
Slide 28: WebBeds
WebBeds DIGITAL PROVISION OF HOTEL ROOMS TO GLOBAL PARTNERS. EIT RUUMS' |lotsof! sunhotels fh 8388
Slide 29: Underlying and statutory results
• A$ FY17 FY16 • • TTV 482 million 346 million • Underlying Revenue 48.7 million (1) 31.0 million Underlying EBITDA 11.9 million (1) 3.4 million (1) Adjusting the statutory result to reflect the Thomas Cook Management fee Statutory Revenue 37.6 million 31.0 million Statutory EBITDA 0.4 milli
Slide 30: WebBeds MEA
WebBeds MEAA: LOTS OF HOTELS MIDDLE EAST/ AFRICA / AMERICAS UAE ¢ Egypt * Saudi Arabia * Turkey * India * Kuwait ¢ Lebanon ° Nigeria * Erbil * Jordan * Algeria * Tunisia * USA °* Latin America
Slide 31: LOH FY17
LOH FY17 FY16 Growth Bookings 283,000 166,000 70.4% 3 year Bookings CAGR 67% TTV $217 million $162 million 34.3% Underlying WebBeds EBITDA $11.9 million (1) $3.4 million 247.7% Statutory WebBeds EBITDA $0.4 million $3.4 million (87.4%) Business experiencing strong turnaround • Bookings up 70.4%; Mid
Slide 32: Americas and MEA bookings
MEA BOOKINGS AMERICAS BOOKINGS + 68% + 30% FY16 FY17 • 1H 2H 1H 1H • 29.8% 10.0% 4,674% 20.3% Bookings ABV Bookings ABV 2H 2H 67.6% 13.3% 1,064% 19.9% Bookings ABV Bookings ABV Page 32
Slide 33: Growth destinations and source markets
Growth destinations benefiting from the global network effect Major Source Markets Major Destinations › Saudi Arabia › United Arab Emirates › United Arab Emirates › USA › Americas › United Kingdom › Qatar › Saudi Arabia › South Africa › France Top Growth Source Top Growth Destinations(1) Markets(1)
Slide 34: UK, USA, Spain, Bahrain and China
UK +68%% Spain +79% USA +198% Bahrain +67% • China +59% • 1. Figures represent year on year TTV growth for FY17 Page 34
Slide 35: WebBeds Europe
Page 35 sunhotels =» Quality hotels, competitive rates - search now! pont WebBeds Europe: SUNHOTELS EUROPE Spain * UK * Sweden * Mexico * Dubai * Finland * Germany * Switzerland * France * Netherlands ¢ Norway * Denmark * Czech Republic * Hungary * Greece * Mauritius * Portugal *
Slide 36: Sunhotels FY17
Sunhotels FY17 FY16 Growth Bookings 392,000 320,000 22.5% 3 year Bookings CAGR 25% TTV $245 million $184 million 33.5% Underlying WebBeds EBITDA $11.9 million(1) $3.4 million 247.7% Statutory WebBeds EBITDA $0.4 million $3.4 million (87.4%) Business continues to demonstrate growth • Bookings up 22.5
Slide 37: Gaining traction in European markets
Gaining traction in important European source travel markets; Destinations benefiting from the global network effect Major Source Markets Major Destinations › United Kingdom › Spain › Sweden › Greece › Norway › USA › Spain › Italy › Germany › United Kingdom Top Growth Source Top Growth Destinations(
Slide 38: Netherlands, USA, Spain, Italy and UAE
Netherlands +64% • USA +56% • Spain +47% Italy +79% UAE +46% 1. Figures represent year on year TTV growth for FY17 Page 38
Slide 39: Alliance on track
Alliance on track • IT and business integration continues on schedule • First of the 3,000 acquired contracts now available through WebBeds systems Expected financial impact • From CY2019 Sunhotels will be the preferred distribution partner for the majority of Thomas Cook Complimentary Hotel busines
Slide 40: WebBeds Asia
WebBeds Asia: FIT RUUMS ASIA Singapore * Hong Kong * Taiwan * South Korea ° India * Indonesia * Thailand * Malaysia * Japan * China Page 40
Slide 41: FIT Ruums FY17
FIT Ruums FY17 FY16 Growth Bookings 51,000 n/a n/a TTV $19 million n/a n/a Underlying B2B EBITDA $11.9 million(1) $3.4 million 247.7% Statutory B2B EBITDA $0.4 million $3.4 million (87.4%) Strong start up performance • $3.8 million investment to launch our B2B operations in Asia. Key costs included
Slide 42: Asia markets
CHINA HONG KONG INDIA INDONESIA JAPAN MALAYSIA SINGAPORE SOUTH KOREA • TAIWAN THAILAND Page 42
Slide 43: Top destination markets
Top 10 Destination Markets 1 Indonesia 2 China 3 Thailand 4 Japan 5 Singapore 6 USA 7 Malaysia 8 South Korea 9 United Kingdom 10 Australia Page 43
Slide 44: Destination markets
Thailand United Kingdom USA Japan South Korea • Malaysia China Singapore • Indonesia Australia Page 44
Slide 45: JacTravel
B2BHotels Group Tours Company JacTravel JACTRAVEL provider : EUROPE / AMERICAS / ASIA London * Edinburg * Dublin * Prague * Romania * USA Canada * Dubai * China * Hong Kong Page 45
Slide 46: WebBeds growth timeline
Feb 2013: Jul 2014: Nov 2015: Aug 2016: Nov 2016: Aug 2017: Started with Purchased LOH expands Sunhotels Launched FIT Acquired LOH in Dubai Sunhotels to to the signs Ruums as an JacTravel, as an organic service the Americas agreement organic start making start up, European with Thomas up to serve We
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Slide 48: Webjet Limited FY18 YTD
Za webjet limited FY18 YTD
Slide 49: Bookings growth target
Bookings growth target • Our strategy is to grow market share in all markets in which we operate. To do so means we need to grow faster than the underlying market • Average Booking Values (ABV) in both B2C and B2B markets are driven by market conditions over which we have little control and therefor
Slide 50: B2C and B2B mix
35% 65% • • • Webjet Lots of Hotels Sunhotels Webjet Online Republic Lots of Hotels FIT Ruums FY14 FY17 Organic Acquisition Page 50
Slide 51: 3 year growth targets and FY18 YTD update
• As bookings are a key driver of growth, our aim is to continue to gain market share and grow more than the underlying market in each of our businesses: • 3 year B2C growth target – Bookings growth of more than 3 times the underlying market growth rate • 3 year B2B growth target – Bookings growth o
Slide 52: John Guscic, Managing Director, August 31, 2017
by JOHN GUSCIC, Managing Director August 31, 2017 Page 52