Slide 1: 2007 Full Year Results
For personal use only Flight Centre Limited 2007 Full Year Results 23 August 2007 (Released prior to audit sign-off)
Slide 2: Results in Brief
2007 Full Year Results For personal use only FY 2007 FY 2006 % Variance Results in Brief Actual ex Abnormal Actual ex Abnormal Actual ex Abnormal Total Transaction Value - TTV $8.9 b $7.8 b 14% Revenue $1.15 b $1.0 b 15% EBITDA $197.4 m $175.0 m $147.6 m $147.6 m 34% 19% EBIT $161.3 m $138.8 m $111.
Slide 3: Historical Performance
Historical Performance For personal use only 2007 2006 2005 2004* TTV (bil) 8.9 7.8 6.9 5.9 % increase on LY 14% 13% 17% 28% Income Margin 12.98% 12.7% 13.0% 13.5% PBT (mil) – excluding building 151.6 120.0 115.6 121.3 NPAT(mil) 120.8 79.9 76.9 81.9 % increase on LY 51.2% 3.9% (6.1%) 17.0% EBITDA –
Slide 4: 2007 Overview
2007 Overview For personal use only • Record results – after tax profit exceeded $100m for first time • TTV approached $9billion – 14% increase exceeded shop and selling staff growth • 1570 business units at June 30, up from 1443 • Increased income margin • Results fuelled by strong second half: • 2
Slide 5: 2007: Performance Review (Australia, New Zealand)
2007: Performance Review For personal use only Australia New Zealand • TTV: $5.5b, up 12.5% • TTV: $677.8m, up 3% • Strong performance in • Disappointing results most geographies • Signs of turnaround in • Seeking improvement in leisure business late in NSW and in FCm corporate business year under n
Slide 6: 2007: Performance Review (UK, South Africa)
2007: Performance Review For personal use only UK South Africa • TTV: $1.2b, up 20% • TTV: $414.4m, up 3% • Improved leisure • Strong leisure and travel performance corporate results – • Continued solid profits TTV up 20% in local in FCm (Britannic) currency • Targeting greater • Good profit growth
Slide 7: 2007: Performance Review (North America)
2007: Performance Review For personal use only North America • TTV: $821.5m, up 40% • Ongoing leisure travel • Strong SME profit growth losses in FCm businesses in USA • Leisure contributing to and Canada overall growth – TTV • Good contributions from generation and as training corporate acquisition
Slide 8: 2007: Performance Review (India, China & Hong Kong)
2007: Performance Review For personal use only India China & Hong Kong • TTV: $320m, up 13.5% • TTV: $82.2m, up 52% • Good results and • Ongoing losses in growth emerging corporate • Seeking productivity market improvements in • Aim to generate growth market profits in both regions within two years
Slide 9: 2008: Expectations
2008: Expectations For personal use only • Australia: Ongoing growth in mature market • NZ: Improvement as leadership team enters 2nd year • RSA: Healthy profit growth – strong brands, economy, leadership and margins • UK: Improved profit results in leisure and ongoing growth in corporate (SME) • No
Slide 10: 2008: Guidance
2008: Guidance For personal use only • Targeting 10-15% TTV growth • Aiming for bottom-line profit growth in line with TTV growth • Achievable goals with momentum from 2006/07 and good July results • Some significant current and future challenges to address – strategies in place to improve performan
Slide 11: 2008: Strategies
2008: Strategies For personal use only • TTV Growth Develop and deploy a volume sales growth system to deliver leisure, corporate and wholesale expansion in all geographies. Aims: Shop and business growth, sales staff growth, business leads/enquiry growth • Gross margins – Identify, develop and depl
Slide 12: 2008: Strategies (cont)
2008: Strategies (cont) For personal use only • People Attract and retain staff by making FLT the best place to work in all geographies Aims: People for Success surveys and action plans, employee benefits package, leadership development, succession planning, recruitment and selection • Costs Develop
Slide 13: 2008: Progress Update
2008: Progress Update For personal use only • Increased capex – shop of future roll-out, projects nearing completion • Expansion into Dubai: FCm outlet opened July 2007 • India leisure: Two shops leased in Delhi and set to open in 2007/08 – small and strategic investment for future • UK synergies: L
Slide 14: 2008: Capital Management
2008: Capital Management For personal use only • No significant capital management changes planned • No plan to initiate joint venture or privatisation agreements with private equity partners in foreseeable future • Conservative approach to managing client funds • Probable introduction of some debt
Slide 15: Acquisition Strategy
Acquisition Strategy For personal use only • Primarily targeting small, profitable companies with niche products and services • Will consider larger opportunities that enhance FLT’s overall operations and provide scale in some international markets • FLT expects to pay $30m in deferred acquisition c
Slide 16: End of Presentation
End of Presentation For personal use only Questions 16
Slide 17: Appendices
Appendices For personal use only Brand Diversity Cash and Investments Depreciation & Amortisation “Unbeatable” 17
Slide 18: Brand Diversity
Brand Diversity For personal use only Leisure Corporate • Flight Centre, flightcentre.com • FCm Travel Solutions • Escape Travel, • Ci Events escapetravel.com.au • Stage&Screen • Student Flights, studentflights.com.au • Kistend/Campus • Travel Associates • Overseas Working Holidays, Wholesale owh.co
Slide 19: Cash & Investments
Cash & Investments For personal use only Jun 07 Jun 06 % Var A$m A$m Company 180.0 160.0 12.5% Client 456.0 319.0 42.9% Total 636.0 479.0 32.8% 19
Slide 20: Depreciation & Amortisation
Depreciation & Amortisation For personal use only Jun 07 Jun 06 % Var A$m A$m Depreciation 26.7 25.1 6% Amortisation Other Intangibles 9.4 11.4 (18%) Total 36.1 36.5 (1%) 20
Slide 21: "Unbeatable"
For personal use only “Unbeatable” 21