Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Shareholder Meeting (October 2013)
23 slides from Flight Centre Travel's shareholder meeting presentation, Oct 31, 2013
Slide 1: Annual General Meeting
For personal use only Annual General Meeting October 31, 2013
Slide 2: Today's agenda
Today’s agenda For personal use only 2013 ANNUAL GENERAL MEETING Chairman’s address – Peter Morahan Managing director’s address – Graham Turner Items of business • Item 1: Re‐election of director – Gary Smith • Item 2: Election of director – Robert Baker • Item 3: Adoption of Remuneration Repo
Slide 3: Chairman's address: 2013 result summary
Chairman’s address: 2013 result summary For personal use only RESULTS IN BRIEF JUNE 2013 JUNE 2012 Variance % $’ million $ TTV $14.3b $13.2b 7.7% Total Revenue $1,986m $1,827m 8.7% Income margin 13 9% 13.9% 13 8% 13.8% 10bps Net margin (underlying) 2.4% 2.2% 20bps Profit Before Tax ((actual)) $349.2
Slide 4: Chairman's address: Balance sheet strength
Chairman’s address: Balance sheet strength For personal use only $1.26b global cash and investment portfolio at June 30, 2013 Includes $433.8m in general funds (company cash) – up from $400.8m at June 12 and $160.9m at June 09 Debt lowered to $46.2m after $USD60m loan repaid (Liberty acquisiti
Slide 5: Chairman's address: Solid shareholder returns
Chairman’s address: Solid shareholder returns For personal use only 250c 150c EPS 246c DPS 125c 137c 200c 200c 100c 112c 150c 140c 140 140c 75c 84 84c 100c 70c 50c 50c 25c 38c 9c 0c 0c 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 50 Share Price 40 Record EPS of $2 $2.46, 46 up 23% 30 Record
Slide 6: Chairman's address: Building for the future
Chairman’s address: Building for the future For personal use only NETWORK 5% growth during 2012/13 EXPANSION 2500th shop/business opened in July 2013 EXPORTING First Flight Centre shop opened in Dubai BRANDS Hyperstore model exported from UK to Australia and USA STRATEGIC Key projects underway and g
Slide 7: Chairman's address: Better online capability
Chairman’s address: Better online capability For personal use only 7
Slide 8: Diversified earnings
MD’s address: Diversified earnings For personal use only Record EBIT in Australia, UK, USA, Greater China and Singapore Combined overseas EBIT up 20% to circa $75million Mixing Mi i b business i with ith lleisure i – sales l growing i iin both b th sectors t Global corporate brands generated
Slide 9: 2012/13 results by country
MD’s address: 2012/13 results by country For personal use only SINGAPORE GREATER CHINA TTV: $81m, up 30% in TTV: $158m, up 33% CANADA AUD (up 27% in lc) in AUD (up ( 32% in lc)) EBIT: $1.6m TTV: $954m, up 14% EBIT: $1.5m UNITED KINGDOM BUSINESSES: 11 in AUD (up 14% in lc) BUSINESSES: 33 EBIT: $3.2m
Slide 10: Travel agent to travel retailer
MD’s address: Travel agent to travel retailer For personal use only Our killer theme: Travel agent to travel retailer The Flight Centre Travel Group is transitioning from a travel agency to a world class retailer of travel products to leisure and corporate customers Being a world class retailer mean
Slide 11: Travel agent to travel retailer
MD’s address: Travel agent to travel retailer For personal use only FLT’s killer theme is aligned to company’s longer term strategic “foci” and built around seven mini‐themes: 1. Brand and specialisation – brands with clear customer value propositions that mean something and are relevant to custom
Slide 12: 2013/14 guidance
MD’s address: 2013/14 guidance For personal use only Initially targeting $370m‐$385m PBT, assuming stable trading conditions and excluding any significant unforseen items Also excludes possible goodwill impairment (USA and/or India) Target represents 8‐12% growth on underlying 2012/13 PBT Pr
Slide 13: 2013/14 first quarter update
MD’s address: 2013/14 first quarter update For personal use only Australia, UK and NZ comfortably ahead of last year, South Africa up solidly in local currency Improved North America results – Canada and USA ahead of last year, driven largely by corporate results Asia and Middle East businesse
Slide 14: New Queen Street hyperstore
MD’s address: New Queen Street hyperstore For personal use only 14
Slide 15: 2013/14 expansion plans
MD’s address: 2013/14 expansion plans For personal use only Targeting 8‐10% network growth globally Corporate BDM numbers to grow more rapidly Predominantly P d i tl organic i growth th b butt some strategic t t i acquisitions i iti possible ibl Acquisitions likely to be capital‐light busine
Slide 16: FLT's USA corporate footprint
MD’s address: FLT’s USA corporate footprint For personal use only Seattle Minneapolis Chicago Detroit Boston Providence New York San Francisco Denver Ramsey Washington DC Philadelphia Charlotte Los Angeles San Diego Phoenix Dallas Atlanta Houston Miami Location of Existing Corporate Businesses Short
Slide 17: Capital management
MD’s address: Capital management For personal use only Company cash increasing Board intends to maintain healthy cash balances to: Allow All th the company tto capitalise it li on opportunities t iti th thatt will ill arise; i andd Buffer the company against any economic downturns – plan to
Slide 18: 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 Gary Smith Smith, a non‐executive non executive director retiring in accordance with Section 47 of FLT’s constitution, being eligible, be re‐elected as an FLT non‐
Slide 19: Item 2: Election of director
Item 2: Election of director For personal use only To consider and, if thought fit, pass the following ordinary resolution: “That Mr Robert Baker Baker, appointed in accordance withith Section 46(d) of FLT’s constitution, being eligible, be elected as an FLT non‐executive director.” Proxies The numb
Slide 20: Item 3: Remuneration Report
Item 3: 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 2013 be adopted.” Proxies The number of proxies received for the resolution is: For: 63,840,522 , , (98.7%
Slide 21: Item 4: Directors' Remuneration Facility
Item 4: Directors’ Remuneration Facility For personal use only To consider and, if thought fit, pass the following ordinary resolution: “That … the Directors’ Remuneration Rem neration Facility Facilit be increased by b $200,000, $200 000 from $650,000 to $850,000 per annum (including superannuation
Slide 22: Item 5: Change of Company Name
Item 5: Change of Company Name For personal use only To consider and, if thought fit, pass the following special resolution: “That … the company change its name from Flight Centre Limited to Flight Centre Travel Group Limited and the company’s constitution be amended to reflect the change of name …
Slide 23: Other business
Other business For personal use only Questions 23
Flight Centre Travel Group — Shareholder Meeting (October 2013) on 6ix