Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Morgan's Conference 2024
15 slides from Flight Centre Travel's conference presentation, Oct 18, 2024
Slide 1: Morgan's Conference Presentation
For personal use only Morgan’s Conference Presentation Graham Turner, October 18 2024
Slide 2: Flight Centre Travel Group (FLT): Our story
Flight Centre Travel Group (FLT): Our story For personal use only A diverse global business ü 4 key divisions in 4 regions – Australia’s largest travel retailer & corporate travel manager ü Circa 15,000 global workforce (including independent agents) – recently recognised as a Americas Great Place T
Slide 3: Re-emerging from the pandemic with a structurally lower cost base
Re-emerging from the pandemic with a structurally lower cost base For personal use only ü Record TTV delivered during FY24 with less than 90% of FLT’s traditional cost base 3 | FLT
Slide 4: A more productive business
A more productive business For personal use only TTV Per FTE (Avg in A$m) $2.50 +14% +102% $2.00 $1.50 FY19 TTV $1.00 $0.50 $0.00 Corporate Leisure FY19 FY24 4 | FLT
Slide 5: Evolving Margin Profile
Evolving Margin Profile For personal use only FY19 FY24 • 12.9% Revenue Margin • 11.4% Revenue Margin • 10.9% Underlying Cost Margin • 9.6% Underlying Cost Margin • 1.4% Underlying PBT Margin • 1.35% Underlying PBT Margin • Revenue margin movement driven by business mix changes (growth in corporate
Slide 6: Heavier 2H Profit Weighting
Heavier 2H Profit Weighting For personal use only % of Full Year Underlying PBT 41% 34% FY19 59% TTV 66% • 1H • 2H • FLT now has a heavier 2H earnings skew, with almost two thirds of FY24 underlying PBT generated during the six months to June 30 6 | FLT
Slide 7: A materially larger corporate business
A materially larger corporate business For personal use only TTV growth rates v FY19 + Global Corporate: +36% + Americas: +27% + ANZ: +17% + EMEA: +73% + Asia: +49% • With Amex GBT’s acquisition of CWT, FLT is estimated to be the world’s 3rd largest corporate travel manager
Slide 8: Corporate now FLT's major TTV contributor
Corporate now FLT’s major TTV contributor For personal use only TTV Split by Pillar 7% 3% Corporate division generated more than 50% of FY24 TTV v sub 40% for FY19 38% FY19 FY24 46% 55% 51% TTV TTV Leisure Corporate Other 8 | FLT
Slide 9: FCM now FLT's largest brand
FCM now FLT’s largest brand For personal use only TTV Split (FCM v Other Brands) 20.3% 31.3% FCM FY19 TTV FY24 TTV 79.7% 68.7% Other • FCM generated 31% of FLT’s FY24 TTV, compared to circa 20% in FY19 • Currently a lower profit margin business, but improvements expected as Productive Operations ini
Slide 10: A more profitable, productive & efficient leisure business
A more profitable, productive & efficient leisure business For personal use only Leisure TTV Split 18% 19% Leisure FY19 FY24 67% 55% TTV 9% TTV • Specialists 17% • Independents • Luxury 6% • Mass 9% • Decreased reliance on mass-market Flight Centre brand – 45% of leisure TTV generated by emerging (H
Slide 11: Strong Growth in Online Leisure Sales
Strong Growth in Online Leisure Sales For personal use only 10% TTV Split by Channel 15% FY19 TTVFY19 FY24 Online TTV Offline TTV 90% 85% • FLT was the largest seller of airfares online in Australia for nine months to September 30, 2024 (Source: MIDT) • Online volume is heavily weighted toward lower
Slide 12: FY25: Trading update
FY25:Trading update • Market guidance to be provided at AGM (Nov 14), with profit again expected to be heavily second half weighted For personal use only • Trading marginally above FY24 Q1 across most key metrics – TTV, profit margin, underlying profit - but currently too early to draw conclusions a
Slide 13: FLT: Recent Developments
FLT: Recent Developments For personal use only LEISURE CORPORATE OTHER • Aldi Holidays range launched (powered by Ignite) • Continued focus on productivity gains • Circa $60m convertible note buy-back (Tranche 2 • Strong uptake of proprietary platforms (Melon & notes) - overall balance now $665m fac
Slide 14: For personal use only
For personal use only 1300 510 810
Slide 15: Thank you, Questions
For personal use only THANK YOU QUESTIONS This announcement has been authorised by the CEO of Flight Centre Travel Group Limited.
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