Slide 1: Flight Centre Limited 2008 Half Year Results
For personal use only Flight Centre Limited 2008 Half Year Results 26 February 2008
Slide 2: 2008 Highlights
2008 Highlights For personal use only ● Record Financial Results --> Healthy global sales, improved margin and ongoing focus on cost control have led to strong profit growth ● Enhanced Shareholder Returns --> Increased EPS and 87.5% increase in interim dividend ● Business Growth --> Organic expansio
Slide 3: 2008 Half Year Results: Results in Brief
2008 Half Year Results For personal use only Half Year Half Year - Dec 06 % Variance Results in Brief Dec 07 Actual ex Abnormal Actual ex Abnormal TTV $4.8 b $4.1 b 17.6% Revenue $642.9 m $514.1 m 25.1% EBITDA $107.2 m $85.4 m $63.0 m 25.5% 70.2% EBIT $87.7 m $67.5 m $45.1 m 29.7% 94.3% Profit befor
Slide 4: Historical Performance
Historical Performance For personal use only Dec 2006 Dec 2007 Dec 2005 Dec 2004 * excluding abnormal TTV $4.8b $4.1b $3.7b $3.2b % increase on LY 18% 12% 14% 19% Income Margin 13.4% 12.6% 12.9% 13.0% PBT $92.9m $53.0m $49.8m $51.9m NPAT $62.6m $35.4m $33.6m $36.4m % increase on LY 77% 5% (8%) 7% EB
Slide 5: Revenue Growth
Revenue Growth For personal use only Key Drivers ● Healthy sales growth during the period in favourable global trading conditions ● FLT’s ongoing commitment to improving margins by identifying, developing and deploying innovative preferred and alternative sources of revenue ● An improved sales perfo
Slide 6: Strategic Update
Strategic Update For personal use only • TTV growth – healthy growth globally, organic growth and acquisitions • Gross Margin – land and higher margin air sales, new revenue streams • Online & IT platform – various projects underway and set for completion • People – “Unbeatable Careers”, focus on tr
Slide 7: 2008 Performance Review: Australia and New Zealand
2008 Performance Review For personal use only Australia New Zealand ● TTV: $3b, up 18.9% ● TTV: $320m, up 6.3% ● Strong leisure and corporate ● Profit growth in leisure and results corporate travel ● Ongoing business growth: ● Continued improvement ● opening of 100th Escape Travel shop ● Calypso (pr
Slide 8: 2008 Performance Review: South Africa and United Kingdom
2008 Performance Review For personal use only South Africa United Kingdom ● TTV: $213m, up 11.9% ● TTV: $620m, up 17.7% ● Continued growth in leisure ● Strong growth in leisure and corporate profits travel profits - specialisation strategy proving successful ● Increased brand diversity - ● Corporate
Slide 9: 2008 Performance Review: North America
2008 Performance Review For personal use only North America ● TTV: $421m, up 11.1% ● Healthy profit growth in corporate travel operations, although Bannockburn and Garber results below expectations ● Marginal reduction in leisure travel losses ● Further improvement expected following Liberty integra
Slide 10: 2008 Performance Review: India and Greater China
2008 Performance Review For personal use only India Greater China ● TTV: $190m, up 42.2% ● TTV: $47.6m, up 22.8% ● Strong profit growth in ● Reduced losses from corporate travel business corporate operations ● India leisure & Dubai ● Aim to generate profit within corporate businesses two years launc
Slide 11: Liberty Travel
Liberty Travel For personal use only ● FLT's largest acquisition - settled on 31 January 2008 ● Acquisition completed at opportune time and at an attractive price ● Expected to deliver tangible benefits in short-medium term - EPS accretive in 2009 ● Benefits and other improvements expected to buffer
Slide 12: Outlook: Continued Focus on Key Strategies
Outlook For personal use only Continued Focus on Key Strategies ● Expecting minimum of $200m pre tax profit ● Solid foundations and momentum ● Strong cashflow and balance sheet - able to take advantage of growth opportunities Acquisitions ● FLT to continue to evaluate strategic opportunities globall
Slide 13: Outlook: Capital Management
Outlook For personal use only Capital Management ● No change to dividend policy - 60% pay-out of after-tax profit ● Working to implement new corporate structure by July 1 2008 ● Structure will provide FLT with greater flexibility and opportunity to use strength of balance sheet to benefit shareholde
Slide 14: End of Presentation: Questions
End of Presentation For personal use only Questions 14
Slide 15: Appendices
Appendices For personal use only Brand Diversity Cash and Investments Depreciation & Amortisation “Unbeatable” 15
Slide 16: Brand Diversity
Brand Diversity For personal use only Leisure Corporate • Flight Centre • FCm Travel Solutions – flightcentre.com • Ci Events • Escape Travel • Stage & Screen – escapetravel.com.au • Kistend Campus • Student Flights – studentflights.com.au Wholesale • Travel Associates • Infinity Holidays – travel-a
Slide 17: Cash & Investments
Cash & Investments For personal use only December 07 June 07 Dec 06 Cash & Investments (AUD $ m) (AUD $ m) (AUD $ m) Company $203.3 m $180.1 m $163.7 m Client $428.6 m $455.6 m $318.6 m Total $631.9 m $635.8 m $482.3 m 17
Slide 18: Depreciation & Amortisation
Depreciation & Amortisation For personal use only December 07 December 06 Depreciation & Amortisation % Variance (AUD $ m) (AUD $ m) Depreciation 12% $14.7 m $13.1 m Amortisation 3% $4.9 m $4.8 m Total 9% $19.6 m $17.9 m 18
Slide 19: Unbeatable
For personal use only “Unbeatable” 19