Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Shareholder Meeting (November 2019)
32 slides from Flight Centre Travel's shareholder meeting presentation, Nov 7, 2019
Slide 1: Annual General Meeting
For personal use only Annual General Meeting Flight Centre Travel Group ASX: FLT | November 7, 2019
Slide 2: Agenda
AGENDA For personal use only Today’s Chairman’s Address – Gary Smith Schedule MD’s Address – Graham Turner Resolutions General Questions Polling Refreshments
Slide 3: Results & Highlights: New TTV Milestone Established
Results & Highlights: New TTV Milestone Established For personal use only Record Exceeded record FY19 result by 8.8% or almost TTV of $2billion $23.7b Growth achieved with fewer sales staff - further productivity gains Record TTV in all countries apart from Nordics 23rd year of TTV growth in 24 year
Slide 4: Results & Highlights: Profit
Results & Highlights: Profit For personal use only $343.1m Within amended guidance range ($335m-$360m) but underlying below initial target & record FY18 result PBT Actual (statutory) PBT slightly higher than underlying PBT at $343.5m (FY18: $364.3m) Underlying results adjusted to exclude impacts of
Slide 5: Results & Highlights: Cost Growth Slowing
Results & Highlights: Cost Growth Slowing For personal use only 14 12 10 Underlying* Cost 8 Growth 6 (% in constant 4 currency) 2 0 FY14 FY15 FY16 FY17 FY18 FY19 *Excludes touring cost of sales
Slide 6: Results & Highlights: Globalisation
Results & Highlights: Globalisation For personal use only Other FY19 TTV Contribution 1% Asia More than half of 8% FLT’s TTV was EMEA 14% generated overseas Australia & Americas NZ 24% 53%
Slide 7: Results & Highlights: Corporate Growth
Results & Highlights: Corporate Growth For personal use only Corporate TTV By Region ($AUb) 3.5 Corporate TTV ($AUb) 3 10 2.5 8 2 6 1.5 4 1 2 0.5 0 0 Australia/New Americas EMEA Asia FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Zealand Corporate TTV ($AUb) FY19 Corporate TTV ($AUb)
Slide 8: Diversity a Strength: Globalisation
Diversity a Strength: Globalisation For personal use only International Profit & TTV weighted towards international businesses businesses for 1st time driving growth Reflects strong growth overseas & soft Australian leisure results in challenging trading cycle Record TTV in all regions Record profit
Slide 9: Diversity a Strength: Americas Now An Earnings Powerhouse
Diversity a Strength: Americas Now An Earnings Powerhouse For personal use only Americas Profit Growth 120 Underlying 100 earnings in the 80 $ million AUD Americas topped $100m & have 60 increased almost 40 5-fold since FY16 20 0 FY16 FY17 FY18 FY19
Slide 10: Diversity a Strength: Corporate
Diversity a Strength: Corporate For personal use only Continued 15.2% TTV growth globally to record $8.9b out- performance Corporate brands generated 37.7% of group TTV Scalable organic growth through Corporate Traveller (SME) & FCM (TMS) brands Investment in systems & products to bolster world clas
Slide 11: Diversity a Strength: Strong pipeline of account wins
Diversity a Strength: Strong pipeline of account wins For personal use only $1.3b+ globally of new business (TTV) won by % of New FCM TTV Won by Region FCM alone Americas EMEA Asia ANZ during FY19 & 8% circa $2b across 23% 36% corporate division 33%
Slide 12: Leisure: Pillars, Paths
Leisure: 3 Pillars, 2 Paths For personal use only MASS PREMIUM YOUTH ● Market leader and Specialist UK ● Specialist AU ● Growth in new models USA ● Unmanaged small business FCBT NZ ● Vertical expansion CAN ● Vertical specialist RSA ● Digitisation ASIA ● Digitisation
Slide 13: Exclusives
srucurcene EXCLUSIVES HAND-PICKED HOLIDAYS AT AMAZING PRICES /ALUED AT *1599 + A total of 9 nights accommodation in Being, + BONUS experience China’ high-speed bulle train VALU ss ‘Wx, Suzhou, Hangzhou & Shanghai + BONUS r Wve round trip airport & hotel transfers + Return full service economy airfar
Slide 14: TTG: A Longer Term Growth Driver
TTG: A Longer Term Growth Driver For personal use only BRANDS PROFILE KEY FOCUS AREAS ● Small group touring ● Back-Roads Touring market is the 55+ Global ● Youth of tomorrow focussed ● Topdeck targets 18 – 30s Touring ● Global B2B experiences brand ● The brand behind our partner’s brands Global ● Tr
Slide 15: Global Technology Transformation Program Initiated
Global Technology Transformation Program Initiated For personal use only Company-wide 5- PROGRAM OBJECTIVES phase IT review underway with US- 01 Total visibility into all current projects, spends & outcomes based travel tech 02 A rationalised roadmap in line with business priorities consultancy Huds
Slide 16: Record Dividend Payments To Shareholders
Record Dividend Payments To Shareholders For personal use only $ per share final dividend (declared August 2019) 0.98 $310.2m $3.07 in funds returned to shareholders per share in fully franked dividends returned to shareholders $ per share interim dividend $ per share special dividend (declared Feb
Slide 17: Trading Update
FY20: Update For personal use only Challenging conditions during 4 months to Oct 31 – YTD continuation of FY19 2H Trading Mainly impacting bottom-line results Not yet capitalising on strong Q1 TTV growth – above 7% target & at record levels across all 4 geographic segments 11.4% Q1 TTV growth achiev
Slide 18: Continued Out-Performance In Corporate
FY20: Continued Out-Performance In Corporate For personal use only 18% Q1 TTV • 27.6% TTV growth across the growth & Americas (29.5% growth in USA) now on • 36.2% EMEA growth – bolstered track to by 3Mundi acquisition become a $10b • 11.6% growth in Asia business • Australia/NZ TTV up 1.7% in during
Slide 19: Leisure Growth in Subdued Trading Climate
FY20: Leisure Growth in Subdued Trading Climate For personal use only 4.5% 5.7% growth in Australia, despite subdued trading conditions Q1 TTV growth Growth driven by new & emerging businesses globally Gaining scale & delivering meaningful TTV but not significant profit contributors yet Ready-made p
Slide 20: Strong Online Leisure Growth In Australia
FY20: Strong Online Leisure Growth In Australia For personal use only Rapid growth on flightcentre.com.au Q1 TTV Growth since online booking fees were removed – predominantly new customers • Jetmax (BYOjet & Year-on-Year TTV Growth (%) Aunt Betty) up 140% 80% 60% to $135m 40% • flightcentre.com.au u
Slide 21: 1H Challenges: Not Yet Capitalising On Strong Top-line Growth
FY20: 1H Challenges For personal use only Not Yet Tracking against a much stronger trading cycle in Australia Capitalising On Strong Safety concerns in Dominican Republic affecting North American Top-line leisure business (circa $US5m full year hit expected) Growth UK business performing well – reco
Slide 22: 1H Challenges: Timing Factors Impacting Results
FY20: 1H Challenges For personal use only Timing Additional wage cost step-up in Australia during FY20 Q1 (EBA adopted at start of FY19 Q2 Factors Also Consultancy costs linked to projects initiated late in FY19 Impacting Results Upside development expenses (incurred from FY19 Q4) $11.5m adverse int
Slide 23: Guidance
FY20: Guidance For personal use only First Half Full Year • Underlying PBT will be below $140.4m • Year-on-year profit growth expected FY19 result, as announced previously during seasonally busier 2H • Reflects challenging 1st 4 months • Targeting an underlying PBT between • Stabilisation anticipate
Slide 24: 2H Growth Drivers
FY20: 2H Growth Drivers For personal use only Contributions Like-for-like from acquired conditions 3Mundi & from late in LDV Q2 businesses Possible benefits from Traction from Australian FY20 Profits Expected to improvement stimulus strategies packages be Heavily 2H Weighted World events Costs start
Slide 25: Corporate Strategies
FY20: Corporate Strategies For personal use only 1) Hyper investment in sales & marketing 2) Investment in technology 3) Our people 4) Cost reduction & efficiency gains 5) Market leading & unique products 6) Further geographic expansion
Slide 26: Slower growth in Australian outbound travel
FY20: Slower growth in Australian outbound travel For personal use only % Growth 8.00% 6.00% 4.00% Growth 2.00% 0.00% FY09-18 FY19 July & August (CAGR) (FY20)
Slide 27: Leisure Strategies
FY20: Leisure Strategies For personal use only 1) Customer systems & centricity 2) Digitisation (online/offline) 3) Product & pricing 4) Modern marketing 5) Network 6) Model shift
Slide 28: Leisure Strategies
FY20: Leisure Strategies For personal use only Stream 1 Stream 2 • Operational efficiency focus • Mid to longer term focus • Consultant productivity, • Identifying opportunities marketing, managed network within a shifting market & reduction, costs, REM, challenging current models simplification • F
Slide 29: Overview In Summary
FY20: Overview For personal use only Challenging start to FY20 in profit terms but record TTV achieved In Summary TTV growth being fuelled by corporate businesses – rapidly gaining market-share and poised to become a $10b global business this year New & emerging leisure businesses in Australia also
Slide 30: Resolution 1: Re-election of Gary Smith
Resolution 1: The number of proxies received for the For personal use only resolution … is: Re-election of Gary Smith For: 68,042,360 (84.91%) Against: 11,940,711 (14.9%) Open: 151,765 (0.19%) Abstain: 138,075
Slide 31: Resolution 2: Adoption of the Remuneration Report
Resolution 2: The number of proxies received for the For personal use only resolution … is: Adoption of the Remuneration For: 62,839,338 (96.76%) Report Against: 1,947,932 (3.00%) Open: 156,085 (0.24%) Abstain: 112,556
Slide 32: End of Presentation: Questions?
For personal use only End of Presentation Questions? 32
Flight Centre Travel Group — Shareholder Meeting (November 2019) on 6ix