Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — FY2016 Earnings Presentation
33 slides from Corporate Travel Management's earnings presentation, Aug 26, 2016
Slide 1: Full Year Results 2016
For personal use only Full Year Results 2016 Corporate Travel Management CTM is an award-winning provider of innovative and cost effective travel management solutions to the corporate market. Its proven business strategy combines personalised service excellence with client facing technology solution
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 For personal use only required by investors to make an informed decision on any investment in Corporate Travel Management Li
Slide 3: Group Result Highlights
Group Result Highlights $AUD (m) FY2016 Change on P.C.P For personal use only • Underlying EBITDA up 41% to $69.0m, statutory EBITDA $70.1m. Above upgraded guidance of $68m TTV (unaudited) 3,587 +35% • Over 80% of profit growth is organic Revenue and other income 264.8 +34% • CTM global network and
Slide 4: FY16 Strategic Outcomes
FY16 Strategic Outcomes For personal use only
Slide 5: Execution of Key Strategic Initiatives
Execution of Key Strategic Initiatives For personal use only Continued Organic Client Facing Innovation Productivity and Leverage Our Scale Our People Growth and Acquisition Internal Innovation and Geography 1. Enhance our value 1. Implementation of 1. Internal innovation 1. Building a structured 1.
Slide 6: High Client Satisfaction
High Client Satisfaction For personal use only Page: 06
Slide 7: High Staff Engagement
High Staff Engagement For personal use only Page: 07
Slide 8: Growth Profile
For personal use only Growth Profile
Slide 9: Underlying FY16 EBITDA Growth Summary ($m)
Underlying FY16 EBITDA Growth Summary ($m) For personal use only EUR (6 months) 1.4m USA Diplomat/Montrose 5.2m EUR 1.9m USA 6.5m ASIA 5.4m ANZ 2.6m • Organic growth the catalyst for performance ($16.4m of $19.9m) • Successful M&A integration • FX negligible effect on EBITDA growth in FY16 Page: 09
Slide 10: Regional Growth Profile Post Acquisition – Underlying EBITDA Local Currency
Regional Growth Profile Post Acquisition – Underlying EBITDA Local Currency Integration execution For personal use only $30.0 AUD28.3m Acquired EBITDA Growth Post Acquisition Organic growth post- $25.0 acquisition HKD120m USD15.6m $20.0 Consistent business model EBITDA $m +HKD56m +USD6.2m +AUD18.8m
Slide 11: EPS Growth (diluted) Since IPO December 2010
EPS Growth (diluted) Since IPO December 2010 For personal use only 45.0 42.8 40.0 35.0 27.9 25.0 30.0 cents per share 25.0 18.8 20.0 16.3 17.3 *14.9 13.5 15.0 11.6 6.6 9.8 8.2 7.2 10.0 17.8 3.6 10.6 5.0 7.2 6.3 6.5 6.7 3.0 - 2010 2011 2012 2013 2014 2015 2016 HY FY *Restated downwards for voluntary
Slide 12: P&L by Region
For personal use only P&L by Region
Slide 13: EBITDA Contribution by Region
EBITDA Contribution by Region* * Before global overhead costs FY16 $69.0m For personal use only FY15 $49.1m 8% 5% FY14 $28.9m 28% 30% 16% 37% 17% 47% 67% 18% 27% Asia NA ANZ Asia NA ANZ EUR Asia NA ANZ Europe Page: 13 Building diversity through offshore expansion
Slide 14: CTM Global Footprint and Performance Overview - FY16 (AUD)
CTM Global Footprint and Performance Overview - FY16 (AUD) _____________________________________________________ EUROPE For personal use only Market Size USD500b CTM Market Share <1% TTV: $338.7m (+42%) Rev: $37.2m (+33%) EBITDA: $6.1m (+45%) ASIA Market Size USD650b CTM Market Share 1%+ USA Market
Slide 15: ANZ
ANZ Underlying EBITDA up 10% on the p.c.p.: $AUD (m) ANZ For personal use only • Strong client wins, despite difficult economic conditions, and activity decline in resource clients FY2016 FY2015 % Change • Significant client move to CTM SMART Technology suite. 80% of all client transactions are on-l
Slide 16: Asia
Asia $AUD (m) ASIA For personal use only Underlying EBITDA up 34% on the p.c.p.: • Strong growth in the corporate and wholesale segments. Outperforming the FY2016 FY2015 % Change market on all fronts despite a tough economy TTV (unaudited) 1,532.8m 1082.0m 42% • Benefiting from global footprint thro
Slide 17: North America
North America Underlying EBITDA up 123% on the p.c.p.: For personal use only • An excellent half of execution, via a combination of • New corporate client wins • Integration success combined with leveraging scale $AUD (m) North America • Strong growth in Loyalty segment, a new growth lever for CTM F
Slide 18: Return on Investment Capital North America, including earn-outs – USD
Return on Investment Capital North America, including earn-outs – USD COST INCLUDING EARNOUT For personal use only AGENT ACQUIRED $USD R& A Travel 2012 9.4m Disciplined M&A strategy Travelcorp 2012 20.1m USTravel 2014 8.0m Avia 2014 9.0m Successful integration Diplomat 2015 7.5m Montrose 2016 (initi
Slide 19: UK/Europe
UK/Europe $AUD (m) Europe For personal use only • Strong client wins. Region playing an integral role to CTM group’s success in regional and global client wins FY2016 FY2015* % Change • Brexit uncertainty pre-vote had a significant effect on client activity (activity declined 20% in last 4 months of
Slide 20: Group Financial Performance
Group Financial Performance For personal use only
Slide 21: Comparative Statutory Profit and Loss
Comparative Statutory Profit and Loss For personal use only $AUD (m) FY2016 % Change FY2015 • Strong organic growth across the Group TTV (unaudited) 3,587 35% 2,656 • Increased EBITDA margin resulting from integration execution, Revenue and Other Income 264.8 34% 197.9 automation and buying power Op
Slide 22: Group Balance Sheet
Group Balance Sheet $AUD (m) June 2016 June 2015 For personal use only • Receivables and payables increased in line with business Cash 81.2 40.7 growth Receivables and other 173.0 158.0 • Intangibles increase is largely goodwill on Montrose USA Total current assets 254.2 198.7 acquisition PP&E 5.4 3
Slide 23: Key Financial Commitments – M&A (AUD)
Key Financial Commitments – M&A (AUD) AUD $m 1H17 2H17 1H18 2H18 1H19 2H19 Total For personal use only UK/Europe 10.3m 16.5m 26.8m California 35.4m 35.4m Boston 27.4m 20.3m 47.7m TOTAL 27.4m 35.4m 30.6m 16.5m 109.9m Cash component 13.7m 17.7m 25.4m 8.2m 65.0m Stock 13.7m 17.7m 5.2m 8.3m 44.9m Chart
Slide 24: Operating Cash Conversion
Operating Cash Conversion For personal use only Cash flows from operating activities $70.2m Add back: tax and interest $13.4m Total operating cash conversion $83.6m FY16 Underlying EBITDA $69.0m Operating cash Conversion % 121% Conversion % excluding FY15 one-offs: • $14.0m relating to working capit
Slide 25: Cash Flow Summary
Cash Flow Summary $AUD (m) FY2016 FY2015 For personal use only • Strong operating cash flow conversion over 120% EBITDA 70.1 47.7 • Timing of BSP payments has largest impact on operating cash flow, but Non cash items (2.6) - are immediate term timing differences (1-7 days) only Change in working cap
Slide 26: CTM SMART Technology
For personal use only CTM SMART Technology
Slide 27: CTM SMART Technology Framework
CTM SMART Technology Framework World Class release process For personal use only • Updates released every 2 weeks • Developing with, and for our clients • 1. Focus on speedand Domestic and international usability across all devices content • Agnostic 2. approach Policy and approvals • 3.Significant
Slide 28: CTM Lightning - OBT
CTM Lightning - OBT For personal use only • CTM owned and developed 1. Domestic and international content • Air, car, hotel 2. Policy and approvals • Enhanced user experience 3. Roll-out in Australia complete • Intuitive and quick 4. Major clients implemented in Australia • Deployed in Australia 5.
Slide 29: CTM Mobile – here and now
CTM Mobile – here and now For personal use only • End to end booking • 1. AnyDomestic combination of international and flight, hotel andcontent car • Weather 2. forecasts/ Currency Policy and conversion approvals • Continuous 3. feedback Roll-out loops with in Australia clients complete 4. Major cli
Slide 30: Loyalty Travel including Flybuystravel.com.au
Loyalty Travel including Flybuystravel.com.au For personal use only • Consumer booking tools expansion in ANZ and USA • 1. Domestic Earn, book and international and redeem content points in seamless solution • Any combination 2. of flights, Policy andhotels, car, packages approvals • Exclusive 3. pr
Slide 31: FY17 Guidance
For personal use only FY17 Guidance
Slide 32: FY17 Guidance
FY17 Guidance For personal use only Guidance: • FY17 underlying EBITDA range of $85-90m (23-30% growth on the p.c.p.) Assumptions: • Foreign currency AUD cross rate averages USD0.74c during the year • Assume flat client activity globally • Excludes any future potential acquisitions Page: 32
Slide 33: corporate travel management.
corporate travel management. travelctm.com
Corporate Travel Management — FY2016 Earnings Presentation on 6ix