Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — Merger or Acquisition (December 2016)
23 slides from Corporate Travel Management's merger presentation, Dec 14, 2016
Slide 1: Corporate Travel Management
Acquisitions helping to build CTM’s global footprint: For personal use only Redfern Travel, UK Andrew Jones Travel, Australia Corporate Travel Management CTM is an award-winning provider of innovative and cost effective travel management solutions to the corporate market. Its proven business strateg
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: Agenda
Agenda: For personal use only • New Strategic Acquisitions • Strategic Rationale • Funding Highlights • Updated Guidance • Entitlement Offer Detail
Slide 4: The Two Acquisitions
The Two Acquisitions Corporate Travel Management Limited (“CTM” or “the Company”, ASX Code CTD) is pleased to announce two new strategic acquisitions that will be effective 1 February 2017*: For personal use only Redfern Travel, UK: • Redfern is a significant provider of travel services to both the
Slide 5: The Redfern Business
The Redfern Business For personal use only • Redfern is a leading UK Travel Management Company (TMC), specialising in delivering on-line travel services, through a fully automated and integrated proprietary travel system, headquartered in Bradford, UK. • Redfern's historical TTV growth is 13% CAGR o
Slide 6: Key Management
Key Management For personal use only Mark Bowers brings thirty years travel and business experience to his role as CEO for Redfern Travel, including senior management and Board positions in travel management companies, trade associations and airlines. Mark has steered Redfern through a period of rap
Slide 7: The Andrew Jones Travel Business
The Andrew Jones Travel Business For personal use only • Andrew Jones Travel (AJT) is recognised as the leading TMC in Tasmania, with over 30 years’ experience in this market. • AJT will bring its long standing leadership team into the CTM family, and Vendors will own CTD stock. • The Tasmanian corp
Slide 8: Key Management
Key Management For personal use only Andrew Jones, Founder, commenced work at Thomas Cook Travel in Hobart . At the age of 25 years, he opened Andrew Jones Travel as a sole trader. The business has now grown to be Tasmania’s and one of Australia’s most successful Travel Agencies, employing over 40 s
Slide 9: Agenda
Agenda: For personal use only • New Strategic Acquisitions • Strategic Rationale • Funding Highlights • Updated Guidance • Entitlement Offer Detail
Slide 10: Strategic Rationale - Redfern Travel (Redfern)
Strategic Rationale - Redfern Travel (Redfern) CTM considers Redfern to be a major strategic acquisition because it delivers the following key benefits to the CTM family: For personal use only • Leverage UK/Europe scale: The Redfern acquisition will create a business unit with consolidated annualise
Slide 11: Strategic Rationale – Andrew Jones Travel
Strategic Rationale – Andrew Jones Travel CTM’s motivation to acquire the Andrew Jones Travel (AJT) business is based on the following key elements: For personal use only • Geographic coverage: AJT is widely regarded as the best TMC in Tasmania, with exposure to the growing industrial market focused
Slide 12: M & A Discipline
M & A Discipline For personal use only In keeping with CTM’s strong M&A discipline, both acquisitions fit its strict criteria: Redfern Andrew Jones Travel Strong Market Reputation/ Market Leader Excellent Management Teams with CTD Stock High Historical Client and Staff Retention Builds Scale, Geogra
Slide 13: CTM Global Footprint
CTM Global Footprint _____________________________________________________ For personal use only CTM office Partner office The addressable Global Market size is estimated to be USD1.4 trillion, growing at USD40bn p.a. Page: 13 CTM represents less than 1% of this market and operates out of 53 countri
Slide 14: Agenda
Agenda: For personal use only • New Strategic Acquisitions • Strategic Rationale • Funding Highlights • Updated Guidance • Entitlement Offer Detail
Slide 15: Funding Highlights
Funding Highlights For personal use only • The acquisitions of Redfern and AJT will be fully funded through an underwritten 1 for 21 Renounceable Entitlement Offer at $15.00 per share to raise $71.085 million. • The offer price per share reflects a 6.4% discount to the theoretical ex-rights price (T
Slide 16: Proforma Balance Sheet
Proforma Balance Sheet Andrew Jones Pro-forma CTM¹ Redfern² For personal use only Travel¹ Funding Group Total AUDm AUDm AUDm AUDm Cash 81.2 1.8 9.1 92.1 Receivables and other 173.0 40.5 0.8 214.3 Total Current Assets 254.2 40.5 2.6 9.1 306.4 PP&E 5.4 1.2 0.3 9.3 Intangibles 308.1 0.3 83.8 392.2 Tota
Slide 17: Agenda
Agenda: For personal use only • New Strategic Acquisitions • Strategic Rationale • Funding Highlights • Updated Guidance • Entitlement Offer Detail
Slide 18: Guidance Update
Guidance Update Previous guidance issued at the CTM AGM held on 27th October 2016 reiterated an EBITDA range of $85m-$90m for the year ending 30 June 2017. For personal use only As a result of both performance to date and the projected impact of these acquisitions, CTM’s updated FY17 underlying EBIT
Slide 19: Agenda
Agenda: For personal use only • New Strategic Acquisitions • Strategic Rationale • Funding Highlights • Updated Guidance • Entitlement Offer Detail
Slide 20: Entitlement Offer Detail
Entitlement Offer Detail For personal use only Fully Underwritten Renounceable Entitlement Offer Entitlement Offer Ratio 1 for 21 Amount Raised $71.085 million Capital Structure Current Issued Capital 99,519,478 shares New Shares Issued Under Entitlement Offer 4,739,023 shares New Shares Issued as C
Slide 21: Key Dates of Offer
Key Dates of Offer Event Date For personal use only Announcement of the Entitlement Offer Wednesday, 14 December 2016 Mailing of the Entitlement Offer details Thursday, 15 December 2016 Ex-date and Rights trading commences Friday, 16 December 2016 Record Date for Entitlement Offer (7.00pm AEDT) Mond
Slide 22: CTM Corporate and Transaction Risk Profile
CTM Corporate and Transaction Risk Profile Acquisition of Redfern and Andrew Jones Travel • Subject to the satisfaction of limited conditions precedent, including no material adverse changes between contract signing and ownership date (1 Feb17) and obtaining certain For personal use only consents to
Slide 23: travelctm.com
corporate travel management. travelctm.com
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