Slide 1: Full Year Results FY14
For personal use only FULL YEAR RESULTS FY14 John Guscic Managing Director 20 August 2014 0
Slide 2: Highlights
Highlights For personal use only • Performance in strategic growth businesses drive record result − ZUJI turnaround delivered around $2 million EBITDA contribution − Lots of Hotels (LOH) profitable in 2H FY14 • Webjet increased its lead as the #1 OTA brand in Australia • TTV up 9.4% to $967 million
Slide 3: Financial results overview
Financial results overview Year Ended 30 June 2014 FY14 vs. Reported FY13 FY14 vs. Normalised FY13 For personal use only $m FY14 FY13 FY14 FY13 (1) TTV 967 884 9.4% 967 778 24.3% Revenue 98.6 74.8 31.9% 98.6 66.5 48.3% Costs 75.3 62.5 20.6% 75.3 45.0 28.6% EBITDA 23.3 12.3 89.3% 23.3 21.6 8.1% Depre
Slide 4: Financial results summary
Financial results summary For personal use only • TTV up 9.4% to $967 million − Lower 2H result reflects non consolidation of Webjet US following sale of 35% stake in December 2013 − Elimination of unprofitable sales − Underlying real TTV growth is 19% • Revenues up 31.9% to $98.6 million − Driven b
Slide 5: Financial results summary (cont'd)
Financial results summary (cont’d) For personal use only • EBITDA up 8.1% to $23.3 million; 89.3% above FY13 Reported EBITDA (1) − Driven by $8 million turnaround in ZUJI business − LOH returned $0.5 million EBITDA in 2H14 – break even for full year − Webjet business essentially flat • NPAT up 33% t
Slide 6: Revenue margin continues to grow
Revenue margin continues to grow For personal use only Revenue / TTV margin 10.2% 8.5% 7.1% 7.3% 7.4% 7.4% 7.5% FY08 FY09 FY10 FY11 FY12 FY13 FY14 Full Year Results FY14 5
Slide 7: Continued growth in EPS
Continued growth in EPS For personal use only Normalised EPS (cents) 25.0 24.2 (1 ) 20.0 18.8 19.0 15.0 14.3 13.8 10.2 10.0 5.0 – June-09 June-10 June-11 June-12 June-13 June-14 (1) Result adjusted for the impact of one-off costs: Start-up costs for Lots of Hotels business of $2.3m, ZUJI acquisition
Slide 8: Strong balance sheet
Strong balance sheet For personal use only $m Jun-14 Jun-13 Change • Generated cash and equivalents of $21.6 Cash 51.8 66.8 (15.0) million • Cash balance includes $18.8 million of Other Current Assets 26.3 22.0 4.3 client funds ($29.0 million as at 30 June Non-Current Assets 51.1 45.4 5.7 2013) • Cu
Slide 9: Full year dividend increased to 13.5 cents
Full year dividend increased to 13.5 cents For personal use only Cents paid – fully franked 7.25 7.0 7.0 5.5 6.0 3.5 3.0 6.0 6.0 6.25 5.0 5.0 3.0 2.0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Category Interim Final Full Year Results FY14 8
Slide 10: Review of Businesses: B2C Travel
For personal use only REVIEW OF BUSINESSES B2C Travel ONLINE CONSUMER TRAVEL MARKET Unsaved Document / 21/09/2012 / 14:14 Full Year Results FY14 9
Slide 11: Webjet Limited
For personal use only WEBJET LIMITED B2C Travel B2B Travel Australia Australia Middle East Europe New Zealand Singapore Africa Hong Kong Full Year Results FY14 10
Slide 12: Webjet
Webjet For personal use only • Business performance inline with overall domestic travel market • Webjet brand remains strong − Continues to leads brand awareness among OTAs – increased marketshare as measured by Hitwise, further extending our #1 OTA ranking − Brand awareness reinforced through targe
Slide 13: Webjet (cont'd)
Webjet (cont’d) For personal use only • Ongoing focus on growing higher margin business streams − TTV margin continues to improve – up 2.2% during FY14 − TTV contribution from mobile grew 150% during FY14 − Packages business continues to grow – currently $30 million annualised TTV run rate (up 127%)
Slide 14: Strengthened Hitwise #1 OTA ranking
Strengthened Hitwise #1 OTA ranking For personal use only Increased market share by 14% during FY14 Webjet share of the Australian OTA market 14.00% 13.50% 13.00% 12.50% 12.00% 11.50% 11.00% 10.50% 10.00% Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Webj
Slide 15: Webjet continues to lead OTA brand awareness
Webjet continues to lead OTA brand awareness For personal use only Brand Share of Agency Search Terms 5.00% Brand Term's Share of Travel Agency Search Traffic 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Webjet Flight Centre Wotif Expedia Zuji Source: Hitwise upstream search terms Jan
Slide 16: Mobile TTV outperforming industry
Mobile TTV outperforming industry For personal use only Mobile TTV Contribution Growing Global average 4% Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Global average sourced from: Adobe Digital Index’s (ADI) “Travel 2014 Report’ Full Year Results FY14 15
Slide 17: Growth in Package businesses continues
Growth in Package businesses continues For personal use only Packages annualised TTV Run Rate $M $35 $30 $25 $20 $15 $10 $5 $- June 2013 December 2013 June 2014 16 Full Year Results FY14 16
Slide 18: ZUJI
ZUJI For personal use only • Leading OTA in Singapore and Hong Kong markets • Major quality improvement program underway − Established 24/7 high-quality service centres − External benchmarking has rated HKG and SIN service centres as #1 in the industry; Pre-acquisition results were substantially out
Slide 19: ZUJI
ZUJI For personal use only • Business delivered around $2 million EBITDA contribution for FY14 – $8 million EBITDA turnaround since acquisition − Elimination of unprofitable business streams − Focus on bottom line profit and more sustainable TTV margins − Successful extraction of cost synergies iden
Slide 20: B2C - Evolving Technology
B2C - Evolving Technology For personal use only • Completed cloud implementations across brands • Completed transition of ZUJI businesses to Webjet’s technology stack • Establish multi language capability on the platform, first site live is ZUJI HKG • Implement new mobile channels for all brands • D
Slide 21: B2C FY15: Webjet
B2C FY15 For personal use only Webjet • Continued improvement in margin mix through growth of non-air business streams − Webjet Exclusives launched June 2014 – strong bookings in first full month of operation − Webjet Cruise launched in August 2014 – robust marketing plan in place to grow cruise ove
Slide 22: B2C FY15: ZUJI
B2C FY15 For personal use only ZUJI • Ongoing product development − Additional Chinese language sites − Continued investment in mobile platforms • Focus on increasing market share in existing ZUJI markets • New market opportunities and ongoing content expansion − Online travel penetration rates in A
Slide 23: Review of Businesses: B2B Travel
For personal use only REVIEW OF BUSINESSES B2B Travel PROVIDING HOTEL ROOMS TO PARTNERS VIA THE ONLINE CHANNEL Unsaved Document / 21/09/2012 / 14:14 Full Year Results FY14 22
Slide 24: Lots of Hotels (LOH)
Lots of Hotels (LOH) For personal use only • Online B2B hotels business established in February 2013 − Now in 20 markets across Middle East and Africa − Plan to launch into a further 10 markets by December 2014 – solidifying unique position in Middle East and African markets • Proven and experienced
Slide 25: Lots of Hotels - Sourcing Strategy
Lots of Hotels - Sourcing Strategy For personal use only Step 1: Step 2: Step 3: Multi-supply Direct contracting in Global chain dynamic aggregation key cities inventory agreements - 2015 Done Ongoing Ongoing • 12 partners already • 1200 agreements • Deals completed with Hilton, integrated already i
Slide 26: Lots of Hotels – Business Mix
Lots of Hotels – Business Mix For personal use only Top Destinations Top Source Markets 1. United Arab Emirates 1. Saudi Arabia 2. Turkey 2. United Arab Emirates 3. Saudi Arabia 3. Qatar 4. United Kingdom 4. Kuwait 5. France 5. Jordan 6. United States of America 6. Turkey Full Year Results FY14 25
Slide 27: SunHotels
SunHotels For personal use only • Binding Heads of Agreement to acquire SunHotels Group effective from 1 July 2014 • Substantial online hotel provider specialising in provision of hotels and transfers in European resort destinations selling into major markets of Scandinavia and the UK • Provides imm
Slide 28: B2B FY15
B2B FY15 For personal use only • LOH and SunHotels will share a technology platform, customer service and inventory • Provides ability to expand inventory offers for each business within their respective markets • Opportunities for margin enhancement • Considerable opportunities to exploit new marke
Slide 29: FY15 Outlook
FY15 Outlook For personal use only • The company will provide guidance regarding FY15 outlook at the Annual General Meeting to be held on 26 November 2014 • July’s TTV and EBITDA performance is ahead of last year 28 Full Year Results FY14 28
Slide 30: For personal use only
For personal use only Full Year Results FY14 29