Slide 1: Flight Centre Limited 2010 Half Year Results
For personal use only Flight Centre Limited 2010 Half Year Results February 25, 2010 Presentation by Andrew Flannery – chief financial officer
Slide 2: 2010 first half - highlights
2010 first half - highlights For personal use only Strong growth – actual pre-tax profit up 115% (up 19% on normalised 08/09 result) PROFIT 2008/09 included record 1Q – opportunity for strong 2H growth compared to weak PCP Good volumes – up 20% on PCP in some markets SALES Average prices (yields) st
Slide 3: 2010 first half - results
2010 first half - results For personal use only RESULTS IN BRIEF HALF YEAR RESULTS December 2009 December 2008 Variance % $’ million TTV $5,201 $5,788 (10.1 %) Gross Profit $722.8 $773.1 (6.5 %) EBITDA $100.5 $53.2 88.9% EBIT $73.9 $25.0 195.6% Profit Before Tax (actual) $73.6 $34.2 115.2% Profit Af
Slide 4: Five-year result summary
Five-year result summary For personal use only December December December December December 2009 2008 2007 2006 2005 (ex abnormal) TTV $5,201 m $5,788 m $4,800 m $4,100 m $3,700 m Income margin 13.9% 13.3% 13.4% 12.6% 12.9% EBITDA $100.5 m $53.2 m $105.2 m $63.0 m $63.0 m PBT $73.6 m $34.2 m $90.9 m
Slide 5: First half – financial overview
2010 first half – financial overview For personal use only Cost discipline maintained after 2008/09 restructuring COSTS Wages, rent and advertising major expense items – variable wage and ad costs CAPITAL Reduced 1H cap-ex after major investment in projects and shop refurbs in recent years EXPENDITU
Slide 6: First half - operational overview
2010 first half - operational overview For personal use only SHOP Moderate growth in shops and businesses compared to December 31 2008 GROWTH Comparison impacted by US shop closures (Feb 09) and India deconsolidation (Mar 09) LEISURE Results generally good – healthy sales volumes globally TRAVEL Aus
Slide 7: Review – Australia, UK
2010 review – Australia, UK For personal use only TTV $3.0b, up 1% EBIT $77.5million 1056 businesses – ongoing expansion opportunities Strong sales performance – ticket numbers well up on 2008/09, but yields still AUSTRALIA down (17% on average on international flights ex Australia during 1H) Increa
Slide 8: Review – North America
2010 review – North America For personal use only TTV $872m, down 24% in AUD (down 16% in local currency) EBIT ($10.9m) 233 businesses USA TTV comparisons affected by 40 shop closures during 2H 2009 Reduced losses, results in line with expectations in challenging market New Liberty revenue and shop-
Slide 9: Review – other geographies
2010 review – other geographies For personal use only COUNTRY RESULTS REVIEW New Zealand TTV: $260.7m TTV down 6% in AUD (down 3% in local currency) EBIT: $1.5m Increased profit from small base Businesses: 154 Continued retail expansion – 3 Cruiseabout shops open Corporate results improving, but dow
Slide 10: Outlook
2010 – outlook For personal use only SOLID Significant momentum after good 1H FOUNDATIONS Stronger sales force, brand diversification, leaner cost base and healthy balance sheet GROWTH Clear opportunities in corporate and wholesale travel, niche leisure areas OPPORTUNITIES Flight Centre brand still
Slide 11: Strategic priorities
2010 – strategic priorities For personal use only INDIA, CANADA Improve the return on FLT’s investment in these emerging countries & THE USA Ensure the company’s “One Best Way” operating culture is in place in all brands and ONE BEST WAY businesses LEADERSHIP Attract and retain more of the right lea
Slide 12: Profit guidance
2010 – profit guidance For personal use only Targeting $160m-$180m pre-tax profit, assuming no major abnormal items arise Targeted result represents 62%-82% growth on normalised 2008/09 result PROFIT TARGET Tax rate likely to be within normal range (30%-33%) over full year No assets currently impair
Slide 13: End of presentation – Questions
End of presentation For personal use only Questions