Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — Investor Presentation (March 2019)
20 slides from Corporate Travel Management's investor presentation, Mar 20, 2019
Slide 1: Building a Global Business
Presenter Name: Jamie Pherous, Managing Director 20th March 2019 Building a Global Business
Slide 2: Disclaimer
Disclaimer. The information in this presentation does not constitute personal investment advice. The presentation is not intended to be comprehensive or provide all information required by investors to make an informed decision on any investment in Corporate Travel Management Limited ACN 131 207 611
Slide 3: Corporate Travel Management
Corporate Travel Management. CTM is an award-winning provider of innovative and cost effective travel management solutions to the corporate market. Its proven business strategy combines personalised service excellence with client facing technology solutions, to deliver a return on investment to clie
Slide 4: Who we are. Value Proposition
Who we are. 1994… Value Proposition …2019 • Highly personalised service • Compelling technology that adds • Approx. 2,700 staff 2 staff in Brisbane, Australia value • Global business with over 70% revenue derived off – • Return on investment methodology shore • FY19 TTV $6.5bn forecast Page 4
Slide 5: Growth Profile
Growth Profile. Insert Heading Here Insert Heading Here
Slide 6: 25 Years of consecutive TTV growth
25 Years of consecutive TTV growth. 6500 Forecast Phase 1 - Build out a global network Phase 2 - Grow each region beyond TTV TTV since IPO: $1bn with organic growth the primary driver 4958 Grown over 18 fold in 9 years 4162 3587 2656 1384 884 682 352 502 TTV AUD$m 09/10 10/11 11/12 12/13 13/14 14/15
Slide 7: Building a global business
Building a global business. * 1H Underlying EBITDA by region, before global overhead costs A global company 1H19 $64.6m 18% 24% Acquisitions becoming significant 1H14 $10.4m IPO: 1H11 $5.0m 20% 26% 100 80% 32% % ANZ ANZ NA Asia NA ANZ Europe FY19 - Now a global company with majority of profits gener
Slide 8: Replicating a high quality model off-shore - Award wining in every region
Replicating a high quality model off-shore - Award wining in every region. Page 8
Slide 9: Growth Strategy FY14 - 21
Growth Strategy FY14 - 21. Insert Heading Here Insert Heading Here
Slide 10: Thematic for long term investment
Thematic for long term investment. 1. Growing global market estimated at USD1.5 trillion, growing at USD40bn p.a. 2. Highly fragmented- largest global player approximately 2+% 3. No government regulatory framework to inhibit global growth. 4. Huge barrier to entry to build out a global network, and
Slide 11: 3 distinct strategic growth phases FY14-FY21
3 distinct strategic growth phases FY14-FY21. 3 Phase Strategy Phase 2 Phase 3 Phase 1 Grow each region beyond TTV$1bn+ with organic growth the Realise the potential created in Established a global network primary driver Phase 1 and 2 to grow organically through acquisition (FY14-17) at optimum leve
Slide 12: Measures of success - #1 Return on Equity (ROE)
Measures of success - #1 Return on Equity (ROE). 30 • ROE is our applicable measure given CTM acquires via capital 25 raisings 20 • Averaging 20% ROE since FY14 (Phase 1) % 15 10 5 0 2014 2015 2016 2017 2018 2019* ROE Average *Forecast Source: CTM Annual reports Page 12
Slide 13: Measures of success - #2 organic growth
Measures of success - #2 organic growth Organic growth post completion of global footprint (Phase 2) • Organic growth is the key driver post completion of regional footprint • Average 18% organic CAGR in phase 2 * Forecast Page 13
Slide 14: Measures of Success - #3 Operating cash conversion near 100%
Measures of Success - #3 Operating cash conversion near 100% Operating cash conversion % at half yearly reporting dates • Operating cash conversion rolling 7 year 180% average near 100%, through phase 1 and 2 expansion 160% • Expectation that CTM will achieve approximately 140% 100% operating cash c
Slide 15: Measures of success - #4 best practice metrics through technology
Measures of success - #4 best practice metrics through technology Revenue/ Increasing Revenue EBITDA/Revenue % • Clients benefit in lower fees: TTV Yield % per FTE Margin • Lower fees booking on-line Benefit • Revenue/TTV margins similar to peers to -16% clients +23% +33% 157k • Revenue per FTE and
Slide 16: Future proofing technology – controlling our destiny
Future proofing technology – controlling our destiny. What is CTM SMART technology? 2. Competitive Advantage - in-house Development, in-region CTM developed, integrated end-to-end solution for clients, including: • Speed to market - frequent releases • SMART portal, diagnostic widgets, across 4 regi
Slide 17: Technology hubs located in all global regions
Technology hubs located in all global regions. Region Tech hub location ANZ Sydney, Australia EUROPE Hale, United Kingdom USA Los Angeles, USA ASIA Hong Kong Goal : To accelerate speed to market and tailor client development, in-region Page 17
Slide 18: How we will execute - Key strategic initiatives FY19-21
How we will execute - Key strategic initiatives FY19-21. Continued Organic Client Facing Productivity & Leverage Our Scale & Our People Growth & Acquisition Innovation Internal Innovation Geography 1. Enhance our value 1. Continuous 1. Internal innovation 1. Demonstrating CTM 1. Empower our teams to
Slide 19: Summary - a successful business with a long term strategy
Summary - a successful business with a long term strategy. • Proudly operating for 25 years, achieving year-on-year TTV growth in every year of operation • Built a global corporate travel business ex Australia that is forecast to achieve TTV$6.5bn for FY19, representing under 1% of the total global
Slide 20: travelctm.com
ccm travelctm.com
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