Web Travel Group Limited · ASX:WEB
Web Travel — Shareholder Meeting (October 2020)
29 slides from Web Travel's shareholder meeting presentation, Oct 22, 2020
Slide 1: Chairman address and Managing Director presentation
22 October 2020 Market Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000 Dear Sir Chairman address and Managing Director presentation Attached is the Chairman address to be delivered by Roger Sharp – Chairman, and the Managing Director presentation to be pr
Slide 2: Chairman's address
22 October 2020 Chairman’s address Good afternoon ladies and gentlemen it is now just after 5.00pm Melbourne time, and I would like to extend a warm welcome to you to the Webjet Annual General Meeting for 2020. My name is Roger Sharp, and I will chair today’s meeting. Our Company Secretary Tony Rist
Slide 3: Your Company's Response to the Pandemic
Your Company’s Response to the Pandemic Our response involved a review of our strategy as a company, our people, our technology, our operating costs, our investments and our balance sheet. It was quickly becoming unclear how long the crisis would last, so we decided to focus on the matters that we c
Slide 4: Recovery
Recovery Let’s turn to the recovery. At the time of the half year result, it was almost inconceivable that we would end up in the current situation. It is fair to say that this is nothing like other pandemics that the industry has experienced, and will likely require widespread availability of vacci
Slide 5: Executive options and board remuneration explanation
Firstly, your board cannot plan for volatility in the share price when we negotiate such arrangements, nor indeed as we govern your company. We simply use the facts available to us at the time and at all times seek to do the right thing by our stakeholders. And secondly, these are not “free” shares.
Slide 6: Managing Director's Presentation
Managing Director's Presentation Webjet Limited e
Slide 7: Key points (FY20 underlying operations)
• • • • • • • • • Note: All financials are for Underlying Operations (unless otherwise stated) and all • comparisons are over the prior corresponding period (pcp) 1) Q420 average monthly operating expense (excluding write down of deposits, commissions and overrides in WebBeds) and CAPEX/Interest/Tax
Slide 8: Impact of COVID-19 on 2H20
$200M $155.5M Impact of COVID-19 $150M $129.5M on 2H20 $96.3m WebBeds $70.6m $100M $86.3M Average Monthly TTV (A$m) 215.6 $69.2M $60.3M 172.2 146.3 $13.3m $12.7m $57.3m $39.0m $50M $31.7m $26.4M 66.9 $7.3m $6.6m $6.1m $15.3m $61.4m $61.5m $1.7m 1.5 2.2 5.7 $28.8m $28.8m $32.6m $22.6m Pre-Covid(1) Ja
Slide 9: Average monthly costs
Average monthly costs $27.7M $420M $350M $5.8m $100m $13.5M $140m $14.2M $2.6m $21.9m $320m (1) $210m $11.6m (1) (1) 1H20 Q420 30 June 2020 Proforma 30 June 2020 Opex CAPEX/Interest/Tax Cash and cash equivalents Undrawn credit facilities • • • • • • • • • • • • • • 1) Q420 average monthly operating
Slide 10: 1Q21 monthly cash burn (including working capital) - $6 million
1Q21 monthly cash burn (including working capital) - $6 million $320m +$3m +$13m $302m $293m ($7m) ($27m) (1) ($9m) per month (1) Cash burn WebBeds Webjet OTA Online Republic Proforma 1Q21 Cash 30 September 2020 Opex/CAPEX/ Working Capital Working Capital Working Capital 30 June 2020 Interest/Tax (a
Slide 11: Webjet Limited
Webjet Limited . . rou
Slide 12: Travel recovery outlook
Source: statistica.com Source: Phocuswright’s COVID-19: The Path to Recovery, September 2020 7
Slide 13: Business travel slower to recover than leisure travel
“Historically business travel has been more volatile and slower to recover than leisure travel after economic downturns and other disruptions to travel patterns.” (1) 1) McKinsey and Company "For corporate travel, a long recovery ahead." Travel, 8 Logistics & Transport Infrastructure Practice. Augus
Slide 14: Leisure traveller preferences in a COVID-19 world
1) Source: Amadeus “Destination X: Where to Next. What Leisure Travellers want in a COVID-19 world.” September 2020 9
Slide 15: BCG travel recovery insights
1) Source: BCG Travel Recovery Insights Portal. https://public.tableau.com/profile/the.boston.consulting.group#!/vizhome/BCGs TravelRecoveryInsightsPortal/PortalHome?publish=yes l 10
Slide 16: Leisure traveller preferences in a COVID-19 world
1) Source: Amadeus “Destination X: Where to Next. What Leisure Travellers want in a COVID-19 world.” September 2020 11
Slide 17: Webjet is well placed to capture demand for travel
Webjet Limited Webjet is well placed to capture demand for travel. Outlook- Demand to return to long term growth levels Webjet is a global travel business and well-placed to capture the pick up in travel activity + Provides a critical, cost effective distribution channel for the travel industry, * D
Slide 18: WebBeds - TTV growth as markets re-open
• • • • • WebBeds - TTV growth as markets re-open Average Monthly TTV (A$m) Average Daily TTV 215.6 172.2 Break-even = 45% of CY19 TTV 146.3 66.9 13% 12% 12% 12% 12% 10% 11% 10% 11% 11% 25.1 23.0 7% 9% 14.6 5% 6% 7% 5.7 3% 3% 1.5 2.2 1% 1% 1% 0% 1% 1% 1% 1% 1% 2% 2% (1) 5-Aug 2-Sep 9-Sep 10-Jun 17-J
Slide 19: APAC - 1Q21 saw bookings and TTV almost double
APAC - 1Q21 saw bookings and TTV almost double Bookings (% of last year) TTV (EUR) (% of last year) 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% • • • • 14
Slide 20: Significant increase in bookings as markets reopen with only limited marketing spend
• • • • • Significant increase in bookings as markets reopen with only limited marketing spend - Average Monthly Bookings (000s) - Average Daily Bookings - - Social distancing relaxed on - domestic flights NSW/QLD border opens 131.3 131.1 NSW/SA 121.6 - JQ/QF/VA add border opens domestic capacity VI
Slide 21: Webjet share across all GDS bookings
Domestic bookings performance (% of last year) Outperforming 2x 19.2% 19.3% 14.2% 12.1% 10.0% 8.5% 7.1% 6.0% 6.2% 3.6% May-20 Jun-20 Jul-20 Aug-20 4 month avg (May-20 to Aug-20) (1) Total Market Webjet OTA (2) Webjet share across all GDS bookings – Travel Agency Offline & Online 9.0% average market
Slide 22: Bookings growth as global domestic markets start to reopen
• • • • Bookings growth as global domestic markets start to reopen - Average Monthly Bookings (000s) - Average Daily Bookings - NZ restrictions lifted - - Restrictions reimposed 42.3 43.8 41.3 Easing of restrictions - Break-even = 37% of CY19 Bookings - 20% 20% 17% 18% 20% 18% 18% 20% 22% 22% 21% 14
Slide 23: FY21 Outlook
SME REevK TAIWS FY21- Outlook Capital strength through to 2022 Focus on market share growth globally FY21YTD * Global travel industry continues to be under pressure - second waves, ongoing border closures; uncertainty regarding timing of vaccine * Ongoing focus on managing costs- cash burn lower tha
Slide 24: Webjet Limited
Webjet Limited
Slide 25: ;. eaere
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Slide 26: FY20 financial results summary
FY20 FY19 (2) 1H20 2H20 FY20 1H19 2H19 (2) FY19 (2) Apr19- Sep19 Oct19- Mar20 Apr19- Mar20 Apr18- Sep18 Oct18- Mar19 Apr18- Mar19 TTV 2,388 1,697 4,086 1,852 1,766 3,618 Revenue (3) 227.7 160.0 387.7 171.4 172.1 343.5 Underlying EBITDA 103.3 35.8 139.2 62.3 48.2 110.5 Non-operating Expenses (38.4) (
Slide 27: Bookings, TTV and revenue by business
1H20 2H20 FY20 1H19 (3) 2H19 (3) FY19 (3) Underlying Operations (2) Apr19-Sep19 Oct19-Mar20 Apr19-Mar20 Apr18-Sep18 Oct18-Mar19 Apr18-Mar19 Bookings (000s) Webjet OTA 809 674 1,483 804 775 1,579 Online Republic 255 203 457 243 251 494 B2C 1,064 876 1,941 1,047 1,026 2,073 APAC 700 684 1,384 255 422
Slide 28: Convertible notes rationale
Webjet Limited Rationale Supports our ongoing focuson maintaining a strong balance sheet as we continue to navigate the challenging operating environment caused by COVID-19. Diversify Webjet's funding sources and increase our financial and strategic flexibility Strengthen capital position enabling t
Slide 29: Convertible notes accounting treatment
(1) At , the €100 million / A$163 million NOTE = DEBT LIABILITY + EMBEDDED DERIVATIVE bond is split between a Debt component and a Derivative Liability component. Estimated split is Initial recognition approx. 80% debt and 20% derivative (to be finalised during audit) €100m / $163m €80m / $130m €20m
Web Travel Group — Shareholder Meeting (October 2020) on 6ix