Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Morgans Queensland Conference 2019
20 slides from Flight Centre Travel's conference presentation, Oct 9, 2019
Slide 1: Morgans Queensland Conference
For personal use only MORGANS QUEENSLAND CONFERENCE Graham Turner, CEO October 9, 2019
Slide 2: Company Overview
For personal use only COMPANY OVERVIEW 20,000 people worldwide Our Strong corporate culture built around 3 core values – egalitarianism, ownership & irreverence Business Operating in 3 key sectors – leisure, corporate & in-destination travel experiences (now known as The Travel Group or TTG) Leisure
Slide 3: FY19 Result Recap
For personal use only FY19 RESULT RECAP RECORD TTV OF UNDERLYING GLOBALISATION CORPORATE $310.2m $23.7b PBT OF $343.1m SHAREHOLDER RETURN 23rd year of growth in 24 years In line with amended guidance Strong results in key overseas Continued out-performance & $3.07 per share in fully franked since li
Slide 4: Key FY19 Themes: Diversity & Globalisation
For personal use only KEY FY19 THEMES: DIVERSITY & GLOBALISATION A market leader in both leisure & corporate travel More than half of FLT’s TTV is now generated overseas FY19 TTV Contribution FY19 TTV Contribution TTV weighted Leisure Corporate TTG 1% Asia Other towards leisure but 8% EMEA 1% mix li
Slide 5: Corporate: Growing & Gaining Scale Globally
CORPORATE: GROWING & GAINING SCALE GLOBALLY For personal use only Corporate TTV ($AUb) Corporate TTV Contributions – 10 FY19 9 8 7 Asia 6 12% Australia/ 5 New 4 Zealand EMEA 3 33% 22% 2 1 0 Americas 33% Corporate TTV ($AUb) 15.2% corporate TTV growth to $8.9b during FY19 & further growth during FY20
Slide 6: Europe: Platform in Place for Rapid Growth
EUROPE: PLATFORM IN PLACE FOR RAPID GROWTH For personal use only Expanding Significant continental Europe footprint – home to some of the world’s largest corporate travel markets Presence in Key Equity owned businesses in key countries – France, Germany, Corporate Switzerland, Netherlands, Sweden, F
Slide 7: Leisure: Ongoing Evolution – Pillars, Paths
For personal use only LEISURE: ONGOING EVOLUTION – 3 PILLARS, 2 PATHS 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 7
Slide 8: Australia: Leisure Brands & Models
AUSTRALIA: LEISURE BRANDS & MODELS For personal use only Brands & models covering 100% of the leisure travel market CONTACT CENTRE SPECLIALSIATION FLAGSHIP/HYPER ACCELERATED COMMUNITY OWNERSHIP FRANCHISE FCBT OTA IC BRAND FLIGHT CENTRE Y Y Y Y Y Y Y N Y UNIVERSAL TRAVELLER Y Y Y N N Y Y N Y TRAVEL A
Slide 9: Strong Growth in New/Emerging Leisure Models
STRONG GROWTH IN NEW/EMERGING LEISURE For personal use only MODELS Online – about $1.3b in online leisure TTV during FY19 Home-based/Independent contractor Specialist Flight Centre brand businesses Ready-made packages/flash sale 9
Slide 10: Further Online Growth: TTV Doubling in Australia
FURTHER ONLINE GROWTH: TTV DOUBLING IN For personal use only AUSTRALIA Rapid growth on flightcentre.com.au Q1 TTV Jetmax* up 140% to since online booking fees were removed Growth $135m Year-on-Year TTV Growth (%) 80% 60% flightcentre.com.au up 40% 20% Year-on-Year TTV 65% to $120m 0% Growth (%) *Jet
Slide 11: flightcentre.com.au customer profile
For personal use only flightcentre.com.au 54% of online bookings are made by under-45s Customer Domestic Weighted: Predominantly travellling within Percentage of Bookings By Age Group Australia – more than 80% of bookings (circa 60% of TTV) Profile 18-24 New Customers: Only 8% crossover with retail
Slide 12: Home-Based/Independent Contractor
For personal use only HOME-BASED/INDEPENDENT CONTRACTOR Developing Networks in place in Australia, NZ, Canada, USA & South Africa – delivered circa $380m in TTV during FY19 a Global Circa 10% TTV growth in early FY20 trading Footprint Small acquisition recently in Canada (Ixtapa Travel) – entry to a
Slide 13: Specialist Flight Centre Brand Businesses
For personal use only SPECIALIST FLIGHT CENTRE BRAND BUSINESSES Dedicated Flight Centre Business Travel (FCBT), Groups, Offerings Round-The-World, First & Business Class, Groups for Key About $430m in TTV in Australia during FY19 Sectors Additional $340m from FCBT in UK during FY19 13
Slide 14: Ignite: Ready-Made Package Sector Taking Off
For personal use only IGNITE: READY-MADE PACKAGE SECTOR TAKING OFF Business Now 100% owned by FLT (previously 49%) Overview 3 key divisions – My holidays, Flight Centre Exclusives & Rewards Highly productive models – opportunity to export to other FLT geographies Making complex packages simple for c
Slide 15: Customer Journey
Customer Journey For personal use only Inspiration (Advertising) 1.Customer inspired by advertising across a range of channels Press Digital Database 2.Majority of enquiries submitted via form on website 3.All bookings completed by ITG’s Enquiries onsite call centre Phone (30%) Online (70%) Bookings
Slide 16: My Fiji Marriott package example
RIS) MARRIOTT RESORT MOMI BAY ***#® ALL 1300 003 454 VISIT MYFIJLCOM, imcwwoes exciusive $1750 BONUS VALUE FIJI MARRIOTT RESORT MOMI BAY ***** YOUR 7 NIGHT PACKAGE INCLUDES n upgraded Duplex Lagoon + Return economy cirfares to Fil fin Airways incl 23kg checked luggage + Butfet breokfost dolly + Retu
Slide 17: Customer Journey
Customer Journey For personal use only (Inspiration)Advertising 1.Customer inspired by advertising Database Press Digital Store across a range of channels (limited) 2.Majority of enquiries in stores Enquiries 3.All bookings recorded within Store Phone Online centralised system Bookings Store Ignite
Slide 18: Exclusives
EXCLUSIVES HAND-PICKED HOLIDAYS AT AMAZING PRICES + A total of 9 nights accommodation in Being, ‘Wx, Suzhou, Hangzhou & Shanghai + Return full service economy airfares inc checked luggage + Start your momi dally at each ho g with delicious breakfast ITINERARY: BEING — WUX! SUZHOU - HANGZHOU ~ SHANGH
Slide 19: FY20: Guidance to be Provided at AGM (Nov 7)
FY20: GUIDANCE TO BE PROVIDED AT AGM For personal use only (Nov 7) Q1: Challenging Comparative Q2: Stabilisation 2H: Recovery •Ongoing TTV growth but underlying profit below •Expecting results to stabilise in near-term – like- •Opportunity to achieve stronger growth in prior year & initial expectati
Slide 20: Questions?
For personal use only QUESTIONS? 20
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