Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — 2012 RBS Morgans Conference
11 slides from Flight Centre Travel's conference presentation, Oct 10, 2012
Slide 1: Flight Centre Limited – 2012 RBS Morgans Conference
For personal use only Flight Centre Limited 2012 RBS Morgans Conference October 10, 2012 Presentation by Andrew Flannery – chief financial officer 1
Slide 2: FLT: An overview
FLT: An overview For personal use only More than 2400 shops and businesses OUR NETWORK Sales force growing 6‐8% annually Workforce now includes more than 15,000 people OUR PEOPLE 80% are in sales roles – low cost business model Company‐owned Company owned businesses in 10 0 countries OUR COUNTRIES F
Slide 3: 2012: Result overview
2012: Result overview For personal use only TTV: Up 8.5% 8 5% to $13.2b $13 2b – has exceeded prior year 16 times in 17 years since listing PBT: $290.4m – has exceeded prior year 15 times in past 17 years NPAT: Surpassed $200m for 1st time, 5 years after $100m milestone and 10 years after passing $5
Slide 4: Hedge fund myths
FLT: Hedge fund myths For personal use only FIVE COMMON MISCONCEPTIONS 1. FLT is a traditional retail travel agency × 2. The company will continue to rely heavily on Australia × 3. Earnings are volatile and are linked to the Australian dollar × 4. The business will suffer as travel migrates online ×
Slide 5: Expanding corporate travel presence
FLT: Continued evolution For personal use only EXPANDING CORPORATE TRAVEL PRESENCE • FLT is one of the few large travel companies that has significant corporate and leisure travel businesses • Corporate travel presence extends 20 years • Now one of the world’s largest corporate travel managers and w
Slide 6: Decreasing reliance on Australia
FLT: Continued evolution For personal use only DECREASING RELIANCE ON AUSTRALIA • Overseas businesses are making an increasingly valuable contribution • Together, offshore businesses contributed more than $60m in EBIT during 2011/12 • All 10 countries profitable for 2nd consecutive year • UK and USA
Slide 7: The dollar and earnings volatility
FLT: Continued evolution For personal use only THE DOLLAR AND EARNINGS VOLATILITY FLT has always seen itself as a growth company • TTV has exceeded prior year 16 times in 17 years since listing, PBT up 15 times in 17 years (GFC and 2005 were exceptions) • Generally able to achieve good results thr
Slide 8: Developing online
FLT: Continued evolution For personal use only DEVELOPING ONLINE • Most online travel transactions are simple point‐to‐point (domestic) flights and last‐minute accommodation • Relatively low online penetration in corporate – complex arrangements, frequently changing itineraries • FLT is expanding on
Slide 9: Developing online – blended travel
FLT: Continued evolution For personal use only DEVELOPING ONLINE – BLENDED TRAVEL • FLT is creating a new business category – a blended travel agency • Will combine the on and offline models’ best features to offer customers instant and deep access to FLT’s products in ways and at times that suit th
Slide 10: The USA
FLT: Continued evolution For personal use only THE USA • FLT’s combined US business lost $60million during 2008/09 • Three years later was the company’s third largest profit contributor • Generated $9.9m in EBIT during 2011/12 – double initial target • Steady year‐on‐year improvement throughout the
Slide 11: End of presentation – Questions
End of presentation For personal use only Questions 11
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