Flight Centre Travel Group Limited · ASX:FLT

Flight Centre Travel — Macquarie Securities Australia Conference 2013

17 slides from Flight Centre Travel's conference presentation, May 3, 2013

  1. Slide 1: 10 Things You Wanted to Know About FLT

    For personal use only Macquarie Securities Australia Conference Presentation 10 Things You Wanted to Know About FLT … But Were Afraid to Ask Andrew Flannery, CFO 3 May, 2013 1

  2. Slide 2: Overview of today's presentation

    Overview of today’s presentation For personal use only 1. Guidance 2. Australia 3. The UK 4. The USA 5. Blended travel 6. Corporate travell 7. The Aussie dollar 8. Expansion i and d acquisition i i i strategy 9. Airfare prices – current trends 10. Capital C i l management plans l 2

  3. Slide 3: 1) Guidance

    1) Guidance For personal use only  Market guidance upgraded yesterday  Now targeting underlying $325m‐$340m $325m $340m PBT – previously $305m‐ $305m $315m  Will represent 12‐17% growth on record 2011/12 PBT ($290.4m)  Guidance excludes unforeseen items that could arise  All 10 countries profit

  4. Slide 4: 2) Australia

    2) Australia For personal use only  On track for another record profit and sales result  Turnover up 9% YTD in market some competitors have described as “flat” flat  Winning market‐share in leisure and corporate travel  Leisure rebound during 2H after underperforming corporate in recent years 

  5. Slide 5: 3) The UK

    3) The UK For personal use only  Main profit driver outside Australia and third largest sales generator ((behind Australia and USA))  Performing strongly in challenging economy and gaining market‐share  Subject to May‐June trading, could surpass 2011/12 EBIT record by 30%  Specialisation and hyp

  6. Slide 6: 4) The USA

    4) The USA For personal use only  On track for third consecutive profit – now targeting $10m EBIT (in line with last as year) yea )  Corporate outperforming leisure and wholesale  Corporate footprint in 14 cities – expansion into 15th city (San Diego) set for next month and likely to enter Atlant

  7. Slide 7: 5) Blended travel

    5) Blended travel For personal use only  Flight Centre is pioneering a new Blended Travel model  Model M d l recognises i th thatt customers t h have power tto ttransactt and d iinteract t t when and how they want  Website becomes a 24/7 booking channel (cyber twin) for FLT’s agents  Taking away

  8. Slide 8: Blended travel milestones

    Blended travel milestones For personal use only KEY STATUS ELEMENTS MILESTONES PHASE 1   Pre and post booking processes blended  Customers able to enquire, pay and view itineraries online  More products and services available online PHASE 2   Published international fares, global hotels  Onli

  9. Slide 9: Consultant select – the human touch

    Consultant select – the human touch For personal use only 9

  10. Slide 10: 6) Corporate travel

    6) Corporate travel For personal use only  FLT one of few travel companies that mixes “business with leisure” on a large scale  Award A d winning i i corporate t offering ff i – FCm FC judged j d d world’s ld’ best b t TMC pastt two t years  Other brands include Corporate Traveller, cievents, Cam

  11. Slide 11: 7) The Aussie dollar

    7) The Aussie dollar For personal use only  No correlation between FLT’s Australian results and a strong AUD  Record R d results lt achieved hi d when h ddollar ll ttraded d d att $USD0 $USD0.70 70 and dbbelow l  Cheap fares and consumer confidence are main leisure travel demand drivers – recent

  12. Slide 12: 8) Expansion and acquisitions

    8) Expansion and acquisitions For personal use only  Shop and business network is currently growing about 6% per year  Rate R t varies i ffrom country t tto country t and d ffrom b brand d tto b brand d  Opportunities in all markets  Development p of blended leisure model not likelyy to affect s

  13. Slide 13: More than 20 acquisitions including:

    More than 20 acquisitions including: For personal use only SINGAPORE Air Services IInternational t ti l (2010) CANADA GREATER CHINA Govoluntouring (2012) UNITED KINGDOM China Comfort (2004) Gapyear (2010) American International Britannic (2003) Travel (2002) INDIA Friends Globe Travels USA (2010) Ga

  14. Slide 14: 9) Airfare prices

    9) Airfare prices For personal use only  International fares remain highly affordable – stimulating leisure demand  FLT research during 1H showed that cheapest advertised fares to 10 popular international destinations were 25% cheaper than five years ago  Year‐on‐year movement is, however, less c

  15. Slide 15: 10) Capital management

    10) Capital management For personal use only  General funds (company cash) likely to be in excess of $400m at 30 June 2013, leading to $300m+ positive net debt position  Normal tax instalment and final dividend payments will take funds below $400m during 2013/14 1H  Also Al considering id i retir

  16. Slide 16: By the numbers: fast financial facts

    By the numbers: 10 fast financial facts For personal use only 14 FLT’s rankingg in the recent Australian Corporate p Reputation p Index 16 Times PBT has exceeded prior year in 18 years as a public company 17 (Years) Average tenure of FLT’s Australia‐based management team 20 ((Percent)) Growth in fli

  17. Slide 17: End of presentation – Questions?

    End of presentation For personal use only  Questions? 17

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