Web Travel Group Limited · ASX:WEB
Web Travel — H1 2016 Earnings Presentation
34 slides from Web Travel's earnings presentation, Feb 18, 2016
Slide 1: 1H16 Results Update
1H16 RESULTS UPDATE John Guscic Managing Director 18 February 2016
Slide 2: 1H16 highlights
1H16 Half year results 1H16 highlights Strong growth in B2C continues; B2B growth investment underway Half Year Ended 1H FY16 1H FY15 Inc. / (Dec.) 31 December $m $m $m TTV Revenue 796 73.8 620 58.2 176 15.6 28.3% 26.8% Costs 55.6 43.7 11.9 TTV Revenue EBITDA 18.2 14.4 3.7 Depr & Amortisation Intere
Slide 3: Segment summary
1H16 Half year results Segment summary 1H FY16 $m 1H FY15 $m $m Inc. / (Dec.) % Group TTV up 28.3% Segment TTV B2C Sunhotels 608 94 497 77 110.8 17.2 22.3% 22.4% 22.3% Webjet TTV 20.1% LOH 94 46 47.6 103.3% B2C TTV Zuji TTV 30.9% Revenue B2C 56.5 46.4 10.1 21.8% 103.3% Sunhotels LOH 9.1 8.3 7.4 4.4
Slide 4: Organic growth rate doubles; TTV margins on target
1H16 Half year results Organic growth rate doubles; TTV margins on target NUMBER OF BOOKINGS REVENUE/TTV MARGIN 10.2% 9.4% 9.3% 8.5% Sunhotels 1H13 1H14 1H15 1H16 • 3 year CAGR - 29% • 3 year organic CAGR - 14% • Margin remains in target 9.0-9.5% range • 1H16 bookings - up 28% 4
Slide 5: Strong balance sheet
1H16 Half year results Strong balance sheet Dec / Jun Dec / Dec $m Dec-15 Jun-15 Dec-14 Change Change Cash 69.6 76.2 57.5 (6.7) 12.0 Other current assets 54.5 41.5 38.0 13.0 16.5 Non-current assets 89.3 85.1 83.5 4.2 5.8 Total Assets 213.4 202.8 179.1 10.6 34.3 Curent Liabilities 93.5 87.6 67.4 5.9
Slide 6: Ongoing capital investment
1H16 Half year results Ongoing capital investment 1H 16 1H 15 2H 15 FY15 1H16 vs 1H15 B2B A$ 1.6 A$ 0.8m A$ 1.3m A$ 2.1m A$ 0.8m Up 101.1% B2C A$ 2.6 A$ 2.4m A$ 3.0m A$ 5.4m A$ 0.2m Up 9.1 % Total A$ 4.2 A$ 3.2m A$ 4.3m A$ 7.5m A$ 1.0m Up 32.1% CAPEX • FY16 CAPEX expected to be $8.5 million B2B (CAP
Slide 7: Fully franked interim dividend increased to 6.50 cents
1H16 Half year results Fully franked interim dividend increased to 6.50 cents Cents Paid – Fully Franked 7.25¢ 7.25¢ 7.00¢ 7.00¢ 6.00¢ 6.00¢ 6.25¢ 6.25¢ 6.50¢ FY12 FY13 FY14 FY15 FY16 Interim Final 7
Slide 8: B2C Travel
B2C TRAVEL Online travel agency
Slide 9: B2C summary
1H16 Webjet Half year results B2C summary 1H FY16 1H FY15 Inc. / (Dec.) $m $m $m 22.3% 21.8% TTV Revenue TTV 608 497 111 Revenue 56.5 46.4 10.1 Costs 41.6 35.3 6.3 18.0% 33.6% EBITDA Costs EBITDA 14.9 11.1 3.7 • Due to shared operating costs within the B2C businesses and commercially sensitive relat
Slide 10: B2C Travel / B2B Travel
B2C TRAVEL B2B TRAVEL Australia Australia Middle East Europe New Zealand Singapore Africa Hong Kong North America
Slide 11: 1H16 highlights
1H16 Webjet Half year results 1H16 highlights Business performance remains strong • TTV grew 20.1% • TTV margins remained constant Webjet 1H15 1H16 • B2C EBITDA grew 33.6% TTV $ 398m $ 479m Growth 20.1% Continue to see record TTV each month • As of 31 January 2016, Webjet has seen 21 months of conse
Slide 12: Bookings continue to move online
1H16 Webjet Half year results Bookings continue to move online % TTV (1H16) % Bookings (1H16) 15% 13% 33% Year-on-year Webjet bookings 67% International 87% Domestic Webjet Growth Market Growth (1) Webjet continues to significantly 14% Webjet Domestic 0.6% Domestic Bookings outperform the Bookings m
Slide 13: Website visitors growing; conversion improving
1H16 Webjet Half year results Website visitors growing; conversion improving Visitation Growth 8% YoY Ongoing Conversion Improvement % conversion improvement YoY 13
Slide 14: Mobile visitation growing, TTV growing faster
1H16 Webjet Half year results Mobile visitation growing, TTV growing faster Mobile & App Visitation vs TTV Growth Mobile & App Visitation and TTV excludes Tablet. 14
Slide 15: Higher margin revenue streams also growing
1H16 Webjet Half year results Higher margin revenue streams also growing Packages TTV PACKAGES • Annualised TTV run rate $55 million, up 53% year-on-year • Exclusives break even in 1H16 Other • Travel insurance and car hire TTV A$55.0m continue to grow - up 30% year- A$44.0m A$36.0m on-year • Cruise
Slide 16: B2C Travel / B2B Travel
B2C TRAVEL B2B TRAVEL Australia Australia Middle East Europe New Zealand Singapore Africa Hong Kong North America
Slide 17: Organic growth coming through
1H16 Half year results Organic growth coming through ZUJI 1H15 1H16 Business growing but margins TTV $98.6 m $129 m remain under pressure Growth 30.9% • Bookings up 34% year-on-year ZUJI AU $34.3 m $39.5 m • TTV up 30.9% Growth 15.3% • Strong organic growth in ZUJI Asia $64.3 m $89.5 m both Hong Kon
Slide 18: Key highlights
1H16 Half year results Key highlights ZUJI Hong Kong ZUJI Singapore ZUJI Australia Ongoing increase of Air New partnerships Improved content content • Improved ancillary cross- • Established multiple new • Includes additional LCC affiliate relationships to drive sell content significant air volume •
Slide 19: B2B Travel
B2B TRAVEL Digital provision of hotel rooms to global partners
Slide 20: B2B summary
1H16 Half year results B2B summary 1H FY16 1H FY15 Inc. / (Dec.) $m $m $m 52.7% 46.7% Revenue TTV 188 123 65 TTV Revenue 17.3 11.8 5.5 Costs 14.0 8.5 5.5 64.9% Costs Flat EBITDA EBITDA 3.3 3.3 (0.0) 20
Slide 21: B2C Travel / B2B Travel
B2C TRAVEL B2B TRAVEL Australia Australia Middle East Europe New Zealand Singapore Africa Hong Kong North America
Slide 22: Winning market share
1H16 Half year results Winning market share LOH strong growth trajectory continues • TTV up 103.3% year-on-year - Up 64% in base currency (USD) • TTV margin at 8.8% LOTS OF • EBITDA up 25% year-on-year HOTELS 1H15 1H16 Winning market share in key markets TTV $46 m $94 m • Cementing our position as #
Slide 23: Improving our inventory offering
1H16 Half year results Improving our inventory offering TTV margin expected to remain above 8% Direct Global chain Multi-supply contracting in dynamic inventory Total supply aggregation key cities agreements offering • 10 third party • 1,200 • 2 chains online • 12 external partners agreements in • D
Slide 24: Strategy
1H16 Half year results Broader distribution Cementing our position as #3 player in Middle East and Africa market • Expanding customer base: Becoming more embedded with existing customer base; new customers growing • Expanding inventory offering: Unique cost model allows LOH to offer more inventory a
Slide 25: LOH North America launched
1H16 Half year results LOH North America launched North America Market Entry Key Source Markets Opportunity to replicate success of New York - Las Vegas - Orlando LOH in North American market • Geographically fragmented market: Large wholesale market potential • Multi-supply aggregation model: Targe
Slide 26: B2C Travel / B2B Travel
B2C TRAVEL B2B TRAVEL Australia Australia Middle East Europe New Zealand Singapore Africa Hong Kong North America
Slide 27: Business growth coming through
1H16 Half year results Business growth coming through TTV and revenue growth coming through • TTV up 22.4% year-on-year - Up 17% in base currency (EUR) • TTV margins at 9.6% Sunhotels 1H15 1H16 • EBITDA down 21% TTV $ 77 m $ 94 m EBITDA in line with expectations • 1H16 EBITDA impacted by cost Revenu
Slide 28: Growth investment underway
1H16 Half year results Growth investment underway Attractive growth opportunities in European market • Increased salesforce: Grown by 55% since acquisition; all key senior hires now in place • Market expansion: • Deeper penetration of already penetrated markets: UK, Spain, Germany • Further penetrat
Slide 29: B2B Travel Outlook
webjet limited B2B Travel Outlook
Slide 30: The B2B market opportunity
1H16 Half year results The B2B market opportunity Middle East and Africa Europe US Market size $3 Billion $20 Billion $15 Billion 30 Highly experienced management team Over 100 years Over 100 years Over 50 years B2B experience for the B2B experience for the B2B experience for the LOH team SunHotels
Slide 31: B2B EBITDA targeted to double in FY17
1H16 Half year results B2B EBITDA targeted to double in FY17 • B2B EBITDA targeted to double in FY17 Outlook for B2B • We expect B2B EBITDA to be around $6 million in FY16 • • We B2B are targeting B2B acquisition EBITDAhas strategy of $12 millionsuccessful; been in FY17 integration complete and stro
Slide 32: FY16 Guidance
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Slide 33: FY16 Guidance confirmed
1H16 Half year results FY16 Guidance confirmed Outlook for FY16 • TTV growth at the beginning of 2H16 has continued at EBITDA more than 30% and although this implies an acceleration it is too early to change market guidance of $33.5 million EBITDA. • We continue to track ahead of our 5 year CAGR EBI
Slide 34: Thank You
THANK YOU February 2016 a *Zuji [ Etat lotsofo 4