Slide 1: Flight Centre Limited 2011 Half Year Results
For personal use only Flight Centre Limited 2011 Half Year Results 21 F February b 2011 Presentation by Andrew Flannery – chief financial officer Melanie Waters-Ryan – EGM of air, land and IT 1
Slide 2: 2011 first half – operational overview
2011 first half – operational overview For personal use only RECORD 1H PBT exceeded $100m for first time PROFIT PBT and NPAT up 37% and 38% respectively on 2009/10 TTV TTV up p 12% % to $ $5.7b GROWTH Strong increases in Australia and most other markets SALES 13% increase in consultant numbers year-
Slide 3: 2011 first half – financial overview
2011 first half – financial overview For personal use only SHAREHOLDER SHAREHO DER Record first half EPS – 70.6c 70 6c RETURNS 38% lift in interim dividend to 36c per share fully franked Operating cash flow in line with expectations and normal seasonal trading patterns CASH FLOW Large inflow expecte
Slide 4: Results
2011 first half - results For personal use only RESULTS IN BRIEF HALF YEAR RESULTS December 2010 December 2009 Variance % $’ million TTV $5,668 $5,056 12.1% Gross Profit $791.6 $722.8 9.5% EBITDA $121 3 $121.3 $100 5 $100.5 20 7% 20.7% EBIT $97.5 $73.9 31.9% Profit Before Tax $101.1 $73.6 37.4% Prof
Slide 5: Five-year result summary
Five-year result summary For personal use only December December December December December 2010 2009 2008 2007 2006 (ex abnormal) TTV $5,668 m $5,056 m $5,788 m $4,800 m $4,100 m Income margin 14.0% 14.3% 13.3% 13.4% 12.6% EBITDA $121.3 m $100.5 m $53.2 m $105.2 m $63.0 m PBT $101 1 m $101.1 $73 6
Slide 6: Results by country
2011 first half – results by country For personal use only SINGAPORE TTV: $18.3m CHINA CANADA EBIT: ($0.1) TTV: $32.4m BUSINESSES: 7 EBIT: $0.4m TTV: $357.4m UNITED KINGDOM BUSINESSES: 15 EBIT: $2.0m BUSINESSES: 192 TTV: $522.1m EBIT: $8.9m BUSINESSES: 222 HONG KONG TTV: $20.3m EBIT: ($0.1) BUSINESS
Slide 7: Geographic highlights
2011 first half – geographic highlights For personal use only TTV up 14% Record 1H EBIT – leisure and corporate businesses both performed well Leisure customers cautious and value focussed AUSTRALIA Good TTV growth in emerging businesses Significant fundraiser launched following QLD floods – expecte
Slide 8: Geographic highlights
2011 first half – geographic highlights For personal use only TTV down 19% in AUD (down 12% in local currency) Moderate reduction in trading losses, ahead of peak booking seasons USA TTV comparisons affected by FX impact, system changes FCm profitable and expanding – Garber acquired, new NYC and Was
Slide 9: Geographic highlights
2011 first half – geographic highlights For personal use only Business reconsolidated during 2H 09/10 INDIA Corporate performing in line with expectations Leisure results approaching breakeven (6 shops) TTV up 31% in AUD (up 40% in local currency) DUBAI Continued strong results from emerging corpora
Slide 10: Diversity – brands
Diversity – 36 brands For personal use only Leisure Wholesale Joint Ventures Flight Centre Infinity Intrepid Retail Liberty Travel Explore Employment Office Escape Travel GOGO Worldwide Vacations 99 Bikes Student Flights Escape Holidays Advance Traders Australia Travel Associates Ticket Centre Backr
Slide 11: Global expansion
2011 first half – global expansion For personal use only ESTABLISHED ESTAB ISHED Continued expansion by opening new shops within FLT FLT’s s established brands BRANDS Further organic growth opportunities in all brands and in all markets 80% interest in gapyear.com – UK-based social networking site f
Slide 12: Hyperstores – key features
Hyperstores – key features For personal use only KEY FEATURES Can house up to 50 consultants Cost-effective access to prime retail sites Lower rent obligation per person Flight Centre teams in prime walk-in locations Corporate and direct teams in other spaces Prominent locations: Oxfor
Slide 13: Pedal Group – solid growth
Pedal Group – solid growth For personal use only JV cycle business generated almost $250,000 in EBITDA and $11.5m $11 5m in sales 77% compound annual growth rate (CAGR) in sales over first three half years B th b Both businesses i operate t under d the th FLT business b i model d l Retailer 99 Bikes
Slide 14: FLT's niche brands – growing strongly
FLT’s niche brands – growing strongly For personal use only Achieved a 51% CAGR in TTV in Australia over the past four first halves Recorded a 75% CAGR in TTV in Australia over the past four first halves Delivered a 74% CAGR in TTV in the UK over the past five first halves Start-up Dubai operation h
Slide 15: Outlook
2011 – outlook For personal use only Strong first half growth and reasonable January results SOLID FOUNDATIONS 2H 2009/10 stronger period – not expecting to maintain current profit growth rate PROFIT Broad range outlined previously – $220m-$240million $220m $240million GUIDANCE No need to change gui
Slide 16: Strategic priorities (Argenti)
2011 – strategic priorities (Argenti) For personal use only Aim: Attract and retain the right leaders in the right numbers LEADERSHIP Key projects: Graduate recruitment, future leader project, mentoring, accreditation UNIQUE Aim: Source and manufacture unique air and land product for customers PRODU
Slide 17: Australia outlook
2011 – Australia outlook For personal use only Committed to working with tourism bodies, suppliers to stimulate Australian market DOMESTIC TOURISM Local tourism market currently experiencing some of the challenges retailers in other sectors have reported INTERNATIONAL Some sluggishness but solid ong
Slide 18: USA outlook
2011 – USA outlook For personal use only Continuing to target positive full year EBIT contribution PROFIT TARGET Compares to $2.3m loss (normalised) during 2009/10 System changes mean sales now recognised when travel documents issued TTV 2H will be stronger sales period – heading in to summer vacati
Slide 19: End of presentation – Questions
End of presentation For personal use only Questions 19
Slide 20: Appendix 1: Additional Segment Information, half year ended 31 December 2010
Appendix 1: Additional Segment Information (Unaudited) Half year ended 31 December 2010 (A$m) For personal use only Other Group Australia UK USA Rest of World Segment(1) TTV $5,668 $3,391 $522 $586 $1,107 $62 Gross Profit(2) $795 $440 $72 $83 $139 $61 Statutory EBITDA $121 $100 $11 ($2) $15 ($3) Dep
Slide 21: Appendix 1: Additional Segment Information, year ended 30 June 2010
Appendix 1: Additional Segment Information (Unaudited) Year ended 30 June 2010 (A$m) For personal use only Other Group Australia UK USA(3) Rest of World Segment(1) TTV $10,894 $6,407 $991 $1,537 $1,867 $92 Gross Profit(2) $1,563 $863 $142 $208 $263 $87 Statutory EBITDA $257 $192 $24 $4 $33 $4 Deprec
Slide 22: Appendix 2: Additional Segment Information, half year ended 31 December 2009
Appendix 2: Additional Segment Information (Unaudited) Half year ended 31 December 2009 (A$m) For personal use only Other Group Australia UK(5) USA(4) Rest of World Segments(1) TTV $5 055 $5,055 $2 978 $2,978 $482 $727 $838 $30 Gross Profit(2) $722 $409 $69 $99 $116 $29 Statutory EBITDA $101 $90 $9