Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Shareholder Meeting (November 2020)
32 slides from Flight Centre Travel's shareholder meeting presentation, Nov 5, 2020
Slide 1: Annual General Meeting Flight Centre Travel Group
Annual General Meeting Flight Centre Travel Group ASX: FLT I November 5, 2020
Slide 2: Today's Schedule
Today’s Schedule Chairman’s Address - Gary Smith MD’s Address - Graham Turner Resolutions General Questions Polling 2
Slide 3: Operational Update
Operational Update
Slide 4: FY20: Overview
FY20: Overview ▪ Limited revenue generation opportunities since widespread travel restrictions were applied in March 2020 to slow COVID-19’s spread Most challenging year in ▪ Significant full year loss - incurred entirely since March FLT’s history ▪ Global leisure and global corporate businesses bot
Slide 5: FY20: Agents To The Rescue of Stranded Travellers
FY20: Agents To The Rescue of Stranded Travellers Customers queue outside Sydney International Airport Flight Centre shop as consultants help travellers beat the border closures Source: KARRYON 5
Slide 6: FY20: Financial Results
FY20: Financial Results ▪ $510m underlying loss before tax during FY20 (FY19: $343.1m PBT) ▪ $849m actual (statutory) FY20 result (FY19: $343.5m PBT) including circa $340m in one-offs (mainly non- Losses incurred after solid cash) start to year ▪ $102.7m underlying 1H PBT achieved and tracking near
Slide 7: FY20: Impact of COVID-19 on Trading Patterns
FY20: Impact of COVID-19 on Trading Patterns Eight Months to Feb 29 March 2020 FY20 Q4 Solid start to the year Governments act to slow virus’s spread Detailed response plan implemented ▪ Cash and liquidity runway extended - ▪ Full border closures implemented, along $900m raised via $700m capital rai
Slide 8: Cash Preservation Actions
Cash Preservation Actions $1.9b in annualised savings delivered ▪ Temporary reductions to reflect low revenue trading climate ▪ Two thirds of global workforce stood down or positions made redundant ▪ Possibility of further workforce reductions if heavy travel restrictions are maintained and governme
Slide 9: FY20: Operational Highlights
FY20: Operational Highlights ▪ TTV up 11.2% during 1H Solid TTV growth pre-COVID ▪ Continued at record levels in both January and February - before heavy travel restrictions were applied ▪ 17% 1H TTV growth globally - circa 24% growth in Americas Gaining corporate market- ▪ 16.1% 1H CAGR achieved du
Slide 10: Operational Highlights: New Global Leadership Team
Operational Highlights: New Global Leadership Team Strong management group with a long history in the business Graham “Skroo” Turner Melanie Waters-Ryan Chris Galanty Adam Campbell Global Managing Director Leisure Chief Executive Corporate Chief Chief Financial and CEO Officer Executive Officer Offi
Slide 11: In Summary
In Summary Weatheringchallenging challengingtrading trading ▪ Continued COVID-related uncertainty early in FY21 Weathering conditions ▪ FLT is well equipped to meet short-term challenges conditions and prosper in longer term ▪ Significantly lower global cost base Building on a solid financial ▪ Exte
Slide 12: Outlook
FLIGHT, CENTRE TRAVEL GROUP”
Slide 13: Lengthy liquidity runway (September)
Lengthy liquidity runway (September) Liquidity positions a) Working capital assets (excl. cash and investments) As at 30 September 2020 $m As at 30 September 2020 $m Cash and investments 1,691 Retail and corporate debtors 258 Working capital assets (excl. cash and investments) 527 a Trade and other
Slide 14: Net Operating Cash Outflow
Net Operating Cash Outflow Underlying Net Operating Cash Run Rate (excludes Refunds and Once-Off Costs) September 20 Hibernation Operational Costs* (71) Capex (4) Hibernation Cash Costs (75) Variable Costs (3) Total Operating Cash Outflow (78) Cash Revenue 25 Net Operating Cash Run Rate (53) BAU Sub
Slide 15: One-Offs Cash Costs & Hibernation Cash Costs
One-Offs Cash Costs & Hibernation Cash Costs - Jan 21 Key Points One-Off Cash Costs $m ▪ The original one-off cash cost estimate Original Initiatives to $65ncrr ($210m estimate) 165 was $210m for initiatives that would reduce the net operating cash run rate Additional Cost Reduction Initiatives 60 t
Slide 16: Trading Update: Global Activity - September 2020
Trading Update: Global Activity - September 2020 Group 12% Sales gradually increasing and tracking at +12% of pre-COVID levels globally Corporate 18% Leisure 8% Canada Corporate 27% Europe Leisure 7% Corporate 22% UK Corporate 11% United States Leisure 6% Corporate 9% Greater China Leisure 17% Corpo
Slide 17: FY21: Outlook
FY21: Outlook ▪ Limited visibility around government objectives and timeframes for border restriction to be lifted FY21 guidance deferred ▪ Too early and too much ongoing uncertainty to provide market guidance ▪ Local travel – corporate and leisure – likely to make up a larger proportion of TTV and
Slide 18: Customer Sentiment: Which travel type are you considering booking
Customer Sentiment: Once restrictions are lifted, which travel type are you considering booking in the next 12 months? Financial Results 18
Slide 19: Customer Sentiment: Which Australian destination would you like to visit next?
Customer Sentiment: Which Australian destination would you like to visit next? Financial Results 19
Slide 20: Strategic Update: Corporate
Strategic Update: Corporate ▪ Ongoing market-share focus Growing to win ▪ Organic growth - successfully retaining customers and winning new accounts ▪ More than $US500m in new accounts (pre-COVID spend) already secured during FY21 for FCM alone ▪ Customer-centric DNA - providing customers with flexi
Slide 21: Pre-COVID: A $US1.5tn Global Corporate Travel Market
Pre-COVID: A $US1.5tn Global Corporate Travel Market Denotes FLT equity presence Source: GBTA & Rockport Analytics Corporate 21
Slide 22: COVID-19 Response: Positioning for Recovery
COVID-19 Response: Positioning for Recovery INVESTING IN CUSTOMERS Continued customer wins and implementation Excellence in customer relationships State of the Market customer research Redefined supplier partners as customers INVESTING IN TECHNOLOGY Acquired full control of customer booking experien
Slide 23: Leisure Strategic Update: Transformation program fast-tracked
Leisure Strategic Update: Transformation program fast-tracked GLOBAL LEISURE: 2-SPEED TRANSFORMATION FOCUS SPEED 1 SPEED 2 Spanning core leisure business & focussing on Speed 1 fast Pivots & new models in Leisure focused on operational effectiveness tracked in emerging & future trends where value in
Slide 24: Leisure Strategic Update: Rejuvenation and modernisation
Leisure Strategic Update: Rejuvenation and modernisation Rejuvenate Flight Centre Brand Flight Centre in Australia, New Zealand and South Africa aims to be one of the most famous travel retail brands, with leading market share and the #1 customer choice for travellers. Flight Centre in the Americas
Slide 25: Leisure Strategic Update: FCB digital commerce
Leisure Strategic Update: FCB digital commerce ANZ South Africa Canada Continuous investment in Upgrading to proprietary Investments in app, flight capability, OBT. Well positioned in the packaging offers, talent and introduction of packages market. tech to grow e-commerce and new deals. business. F
Slide 26: Leisure Strategic Update: E-Commerce portfolio
Leisure Strategic Update: E-Commerce portfolio Opportunity to leverage highly successful operating models and technology. Jetmax StudentUniverse Low-cost OTA operating in 5 countries. One of the world’s leading OTAs for Delivers a wide range of low-cost options youth/students. Membership model with
Slide 27: Leisure Strategic Update: B2B Growth
Leisure Strategic Update B2B Growth FLT aims to become the home of the Travel Entrepreneur through a leading commercial, product and technical offering 1 2 3 Attractive commercial Widest range of content Market leading technology offering to grow and retain supplied to member and platform enabling t
Slide 28: Leisure Strategic Update: Premium/luxury
Leisure Strategic Update Premium/luxury A leading network of premium advisors famous for providing 7-star service and unique products for discerning & luxury travellers. 1 2 3 Aims to become the Unique product and a Drive growth through largest network of move to a more luxury career path progressio
Slide 29: Resolution 1: Re-elect John Eales
Resolution 1: Re-elect John Eales The number of proxies received for the resolution … is: For: 88,287,512 (87.99%) Against: 11,569,966 (11.53%) Open: 481,038 (0.48%) Abstain: 382,057 29
Slide 30: Resolution 2: Adopt Remuneration Report
Resolution 2: Adopt Remuneration Report The number of proxies received for the resolution … is: For: 81,274,249 (97.17%) Against: 1,902,509 (2.27%) Open: 471,889 (0.56%) Abstain: 358,955 30
Slide 31: Resolution 3: Refresh Placement Capacity
Resolution 3: Refresh Placement Capacity The number of proxies received for the resolution … is: For: 83,769,808 (98.20%) Against: 1,044,024 (1.22%) Open: 489,661 (0.58%) Abstain: 13,316,608 31
Slide 32: End of Presentation
End of Presentation General Questions?
Flight Centre Travel Group — Shareholder Meeting (November 2020) on 6ix