Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Shareholder Meeting (November 2015)
36 slides from Flight Centre Travel's shareholder meeting presentation, Nov 11, 2015
Slide 1: Annual General Meeting, Brisbane, 11 November 2015
For personal use only ANNUAL GENERAL MEETING BRISBANE, 11 NOVEMBER 2015
Slide 2: Today's Agenda
TODAY’S AGENDA For personal use only • Chairman’s address – Gary Smith • Managing director’s address – Graham Turner • Items of business – Item 1: Re-election of director – Robert Baker – Item 2: Adoption of Remuneration Report • Other business
Slide 3: FY15: Result Highlights
FY15: RESULT HIGHLIGHTS For personal use only • Solid Sales Growth – Record results achieved globally • Geographical Diversification – Strong profit contributions from offshore • Balance Sheet Strengthened – Record cash balance at year-end • Building For The Future – Ongoing strategic evolution, inv
Slide 4: FY15: Results Summary
FY15: RESULTS SUMMARY For personal use only $’ million JUNE 2015 JUNE 2014 % TTV $17.6b $16.0b 9.7% Revenue $2.4b $2.2b 6.8% Income margin 13.6% 14.0% 40bps Net margin (underlying) 2.07% 2.35% (28bps) Underlying Profit Before Tax $363.7m $376.5m (3.4%) Adjusted Items ($2.6m) ($52.7m) - Statutory Pro
Slide 5: FY15: Impact of Adjusted Items
FY15: IMPACT OF ADJUSTED ITEMS For personal use only $’ million JUNE 2015 JUNE 2014 % Statutory Profit Before Tax $366.3m $323.8m 13.1% Topdeck Tours ($2.6m) - - Write-downs to goodwill & brand names - $61.3m - ACCC Fine - $11.0m - One-off gain within FCGP business - ($19.6m) - Underlying Profit Bef
Slide 6: FY15: Operational Overview
FY15: OPERATIONAL OVERVIEW For personal use only • Record TTV in all 10 regions • Overseas businesses exceeded $100m in EBIT for 1st time – record earnings in UK, USA, South Africa & Singapore • Australian EBIT topped $250m for 3rd consecutive year • 2nd best underlying PBT result, but down on PCP &
Slide 7: FY15: Asia & the Middle East
FY15: ASIA & THE MIDDLE EAST For personal use only • Greater China, India, Singapore & UAE businesses all profitable • Combined turnover circa $AUD870m – about 5% of FLT’s global TTV • Rapid shop & business growth – greater than 30% in some countries • Earmarked for further growth during FY16
Slide 8: FY15: Results by Country
FY15: RESULTS BY COUNTRY For personal use only CANADA UK & IRELAND INDIA GREATER CHINA TTV: $1.2b, up 10% in TTV: $1.9b, up 24% in TTV: $386m, up 15% TTV: $232m, up 18% AUD (up 9% in lc) AUD (17% in lc) in AUD (up 6% in lc) in AUD (up 9% in lc) EBIT: ($3.9m) EBIT: $49.5m EBIT: $3.5m EBIT: $2.3m BUSI
Slide 9: FY15: Costs & Cap-Ex
FY15: COSTS & CAP-EX For personal use only • Wages, advertising & rent generally increased in line with expectations • New front-end wage model introduced – led to increased costs in Australian leisure business • Marketing & advertising structures overhauled to create PACE areas • Increased cap-ex –
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For personal use only
Slide 11: For personal use only
For personal use only
Slide 12: For personal use only
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Slide 13: FY16: Cap-Ex Breakdown
FY16: CAP-EX BREAKDOWN For personal use only • Shops – Up to $70m on shop refurbishments & new store fit-outs – Roll out of new shop design across network • Head office moves – $20m spend on upcoming head office moves/fit-outs in Australia, USA & Singapore • IT hardware & software – $30m investment
Slide 14: FY15: Cash & Dividends
FY15: CASH & DIVIDENDS For personal use only • General cash up 18.6% to record $564.7m & only $32.8m in debt • Leading to $531.9m positive net debt position • $1.45b global cash and investment portfolio • Interim & final dividends in line with PCP – 60% return of underlying NPAT • More than $1.25b n
Slide 15: FY15: Capital Management
FY15: CAPITAL MANAGEMENT For personal use only • 250% increase in general cash since 2009 – reflects cash accumulation strategy post GFC • Internal aim to maintain sufficient cash to cover operating expenses for three months – will continue to review three-month policy • Investing in strategic acqui
Slide 16: FY15: Network Growth
FY15: NETWORK GROWTH For personal use only • 5.5% shop and business growth to 2,825 • 6.3% increase in sales staff globally • More rapid expansion in emerging regions and high growth sectors – FX, cruise • Exporting brands – cievents to Canada, Travel Money to USA, Stage & Screen to UK • Acquisition
Slide 17: Highlighting FLT's Diversity
HIGHLIGHTING FLT’S DIVERSITY For personal use only • More than just an “on-seller” – now a true retailer of travel products • Extensive leisure, corporate & wholesale travel presence – now one of the world’s largest corporate travel managers • Global footprint – company-owned presence in 10 regions
Slide 18: Brand Diversity
BRAND DIVERSITY For personal use only CORPORATE LEISURE / BRANDS WHOLESALE
Slide 19: Ongoing Business Evolution
ONGOING BUSINESS EVOLUTION For personal use only • Successfully launching and growing brands – Cruiseabout, Travel Money, Student Flights • FCm Travel Solutions global network created in 2004 & now in 90+ countries • Vertical integration – FCGP, Top Deck, Back Roads, Buffalo, AVMIN • Enhanced online
Slide 20: 20-Year Growth Profile
20-YEAR GROWTH PROFILE For personal use only • TTV has now increased 19 times in 20 years as a public company • 16.5% compound annual growth rate • Statutory PBT has increased at a 16.9% CAGR • $20,000 investment at FLT’s float now worth circa $788,000 • Fictional shareholder would have received an
Slide 21: Our Journey from Travel Agent To
OUR JOURNEY FROM TRAVEL AGENT TO For personal use only
Slide 22: Our Journey
OUR JOURNEY For personal use only OUR OUR OUR PRODUCT SHOP SALES JOURNEY JOURNEY JOURNEY OUR OUR BUSINESS PEOPLE JOURNEY JOURNEY
Slide 23: Blended Travel
For personal use only BLENDED TRAVEL
Slide 24: Brand Product Ranges
For personal use only BRAND PRODUCT RANGES
Slide 25: Escapes Range
For personal use only ESCAPES RANGE
Slide 26: Manufactured Product
MANUFACTURED PRODUCT For personal use only TRAVEL RED LABEL SERVICE WATERTIGHT TECHNICAL DEALS PACK N RELAX
Slide 27: International Airfare Packages
INTERNATIONAL AIRFARE PACKAGES For personal use only
Slide 28: You Are Never on Your Own When You Book With Us
YOU ARE NEVER ON For personal use only YOUR OWN WHEN YOU BOOK WITH US
Slide 29: FY16: Growth Drivers
FY16: GROWTH DRIVERS For personal use only • Australian profit and sales growth • Greater contributions from off-shore as businesses gain scale • Overall market growth – “Golden Era of Travel” • Full year contribution from Top Deck (acquired after peak profit period in FY15) and Koch • Network expan
Slide 30: FY16: Other Opportunities
FY16: OTHER OPPORTUNITIES For personal use only • Low cost carriers – Working closely with several LCCs for mutual benefit – Supports FLT’s commitment to offering Widest Choice of Airfares • Online – Adding fares & content to websites + personalising online experience – Plan to develop or acquire de
Slide 31: FY16: Guidance
FY16: GUIDANCE For personal use only • Solid global growth prospects • $380m - $395m underlying PBT target • Excludes significant unforseen items and $11m gain (ACCC test case) • Targeted range represents 4%- 8% growth on statutory FY15 result • Currently tracking in line with expectations
Slide 32: FY16: Market Conditions
FY16: MARKET CONDITIONS For personal use only • Reasonable conditions globally • UK & South Africa businesses recording strongest profit growth to date • Subdued consumer confidence in Australia – leading to modest growth in outbound travel (up 2.3% YTD) • FLT achieving slightly stronger TTV growth
Slide 33: Item 1: Re-election of Director
ITEM 1: RE-ELECTION OF DIRECTOR For personal use only To consider and, if thought fit, pass the following ordinary resolution: “That Mr Robert Baker, who retires by rotation and, being eligible, be re-elected as an FLT non-executive director.” Proxies The number of proxies received for the resolutio
Slide 34: Item 2: Remuneration Report
ITEM 2: REMUNERATION REPORT For personal use only To consider and, if thought fit, pass the following ordinary resolution: “That the Remuneration Report for the financial year ended 30 June 2015 be adopted.” Proxies The number of proxies received for the resolution is: • For: 60,017,029 (99.03%) • A
Slide 35: Questions?
For personal use only QUESTIONS?
Slide 36: For personal use only
For personal use only You are also invited to help make our world a better place.
Flight Centre Travel Group — Shareholder Meeting (November 2015) on 6ix