Slide 1: Flight Centre Limited 2009 Full Year Results
For personal use only Flight Centre Limited 2009 Full Year Results 25 August 2009 Presentation by Graham Turner – Managing Director Andrew Flannery – Chief Financial Officer
Slide 2: 2009 Highlights
2009 Highlights For personal use only Reasonable results in challenging conditions – $99.8m trading profit, $40.4m actual PROFIT Actual affected by impairment, write-downs, US trading losses and expenses TTV up but boosted by full year of Liberty and GoGo results SALES 2Q and 3Q slowdown in underlyi
Slide 3: 2009 results
2009 results For personal use only RESULTS IN BRIEF FULL YEAR RESULTS JUNE 2009 JUNE 2008 Variance % (Restated) $’ million TTV $11,240 $10,880 3.3% Gross Profit $1,516 $1,452 4.4% EBITDA $88.5 $231.4 (61.8%) EBIT $28.7 $187.4 (84.7%) Profit Before Tax (actual) $40.4 $201.0 (79.9%) Profit After Tax (
Slide 4: Recent growth performance
Recent growth performance For personal use only JUNE 2008 JUNE 2007 JUNE 2009 JUNE 2006 (restated) (^ex abnormal) TTV $11,240 m $10,880 m $8,880 m $7,810 m Income margin 13.5% 13.3% 13.0% 12.9% EBITDA $88.5 m $231.4 m $175.0 m $147.6 m PBT $40.4 m $201.0 m $151.6 m $120.0 m NPAT $38.2 m $134.8 m $10
Slide 5: Balance sheet and cash flows
Balance sheet and cash flows For personal use only BALANCE Strengthened, despite challenging market conditions SHEET $161m at 30 June GENERAL CASH Strong growth during second half (up from $125m at 31 December) Large operating inflow during 2H, after large 1H outflow STRONGER CASH FLOWS Reflects bus
Slide 6: Investment portfolio
Investment portfolio For personal use only INVESTMENT PORTFOLIO REPORTING PERIOD JUNE 2009 DEC 2008 JUNE 2008 (Restated) $’ million Total investment portfolio $786 $660 $985 Cash 88% 68% 75% Fixed and floating rate notes 10% 24% 19% Corporate collateralised debt obligations (CDOs) 2% 3% 2% Asset or
Slide 7: Operational overview
Operational overview For personal use only MARKET Sales volumes stabilised during 4Q, after 2Q and 3Q slowdown CONDITIONS Cheap airfares and travel deals starting to stimulate demand Healthy throughout 2008/09 and strong in July 09 CUSTOMER Liberty enquiry per consultant now in line with Australian
Slide 8: Global review
Global review For personal use only TTV $5.9b (down 7%), 1046 businesses 1000th business opened AUSTRALIA Flight Centre judged Australia’s 14th most valuable brand at $630m (Source: Interbrand) Nationwide Cruiseabout network created Promising results from recruitment marketing and cycle JVs – 99 Bik
Slide 9: Global review
Global review For personal use only TTV $695.4m, up 4% (up 6% in local currency), 184 businesses New brands introduced – Employment Office and Stage & Screen CANADA Infinity rebranded GoGo and now targeting external agency groups Reasonable corporate profit, leisure results adversely affected by swi
Slide 10: Global review
Global review For personal use only TTV $1.1b, down 8% (down 9% in local currency), 209 businesses Strong growth in BDM numbers UNITED New leisure travel service created for existing corporate clients KINGDOM Employment Office launched Boutique coach touring business acquired – Back Roads Touring TT
Slide 11: Strategic priorities – 09/10
Strategic priorities – 09/10 For personal use only Increase market share in core, specialist travel and new businesses GROWTH Focus on increasing same store sales, supplemented by modest shop growth CUSTOMER Build customer loyalty to increase repeat business and maximise marketing RETENTION investme
Slide 12: Outlook – 09/10
Outlook – 09/10 For personal use only MARKET Some positive momentum from 4Q, particularly in US CONDITIONS Encouraging early trading results in 09/10 DEMAND Volumes recovering – cheap airfares and holidays stimulating demand CONTRACTS Reasonable agency contracts in place with major suppliers, includ
Slide 13: Capital management
Capital management For personal use only Continuing focus on cash, cost containment and balance sheet strength CASH Aim to improve net debt position FOCUS Controlled capital expenditure program – significantly reduced from prior years FLT maintaining a conservative short-term approach in improving b
Slide 14: End of presentation
End of presentation For personal use only Questions
Slide 15: 2009 PBT reconciliation
2009 PBT reconciliation For personal use only 120.0 Millions 24.3 100.0 80.0 6.0 14.5 60.0 7.3 99.8 3.8 3.5 40.0 20.0 40.4 0.0 Underlying trading PBT Sale of US equities Investment portfolio Project w rite dow ns Write dow ns of Goodw ill impairment in Deconsolidation of India Reported PBT impairmen