Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Shareholder Meeting (November 2024)
44 slides from Flight Centre Travel's shareholder meeting presentation, Nov 14, 2024
Slide 1: 2024 Annual General Meeting
2024 Annual General Meeting November 14, 2024 1 | FLT
Slide 2: Acknowledgement of Country
Acknowledgement of Country We acknowledge the Traditional Owners of our Country throughout Australia and recognise their ongoing connection to lands, waters and communities. We pay our respects to Aboriginal and Torres Strait Islander Elders past, present and emerging, and support the continuation o
Slide 3: How to ask a question
How to ask a question • To ask a written question select the Q & A icon • Select the topic your question relates to from the drop-down list • Type your question in the text box and press the send button • To ask a verbal question follow the instructions below the broadcast window. 3 | FLT
Slide 4: How to vote
How to vote • When the poll is open, select the vote icon at the top of the screen Items of Business • To vote, select either For, Against or Abstain 2A Re-elect Mr Sam Sample as a Director FOR AGAINST ABSTAIN • You will see a vote confirmation 2B Re-elect Ms Jane Citizen as a Director • To change o
Slide 5: Today's Agenda
TODAY’S AGENDA 1 2 3 4 Chairman’s Address CEO’s Address Resolutions General Questions Gary Smith Graham “Skroo” Turner
Slide 6: Chairman's Address: Gary Smith
Chairman’s Address: Gary Smith
Slide 7: Strong financial performance
FY24 HIGHLIG HT S Strong financial performance $’m Sales FY24 FY23 ✓ Record TTV of $23.74b - circa $1.8b YOY increase TTV 23,744 21,939 ✓ 131% underlying PBT increase to $320m, statutory PBT up 212% to $219.7m Revenue 2,711 2,281 ✓ 72bps underlying profit margin improvement to 1.35% – driven by reve
Slide 8: Balance Sheet strength
FY24 $'m 30-Jun-24 30-Jun-23 Mvmt Balance Sheet strength Cash & cash equivalents 1,138 1,328 (190) Financial assets 10 20 (10) Trade & other receivables 885 835 50 Contract assets 301 318 (17) Other current assets 149 129 20 ANALYSIS Current assets 2,483 2,630 (147) • Balance sheet further strengthe
Slide 9: Almost $450m in capital management initiatives undertaken
FY24 Almost $450m in capital management initiatives undertaken IN LINE WITH POLICY ANNOUNCED AT START OF FY24 & UNDERPINNED BY STRONG CASH GENERATION Circa $385m • $252m of bank debt (SFA) repaid during FY24 investment in debt & • Additional $49m in overdraft facilities repaid convertible note • $84
Slide 10: Strong divisional results
FY24 Strong divisional results CORPORATE SEGMENT LEISURE SEGMENT • 44% underlying PBT increase to $211m, record Corporate Traveller profit • Underlying PBT more than doubled to $188m • 10% TTV growth to record $12.1b (51% of group TTV in FY24 v 38% in FY19) • 10% TTV growth to $11b (46% of group TTV
Slide 11: A more productive business
A more productive business TTV Per FTE (Avg in A$m) FY19 FY24 +102% $2.50 +14% $2.00 FY19 $1.50 TTV $1.00 $0.50 $0.00 Corporate Leisure 11 | FLT
Slide 12: Investing in our greatest asset – our people
Investing in our greatest asset – our people 12 | FLT
Slide 13: Travel Associates
TRAVEL ASSOCIATES Awarded Most Outstanding Branded Travel Agency Group 13 | FLT
Slide 14: Ongoing investment in sustainability
Ongoing investment in sustainability New sustainability report produced & released Work underway on next edition 14 | FLT
Slide 15: Mass adoption of Melon & FCM Platform
HOW WE WIN C O R P O R AT E Mass adoption of Melon & FCM Platform Combining a tailored, proprietary digital experience with best-in-class personal service & content access Melon is a one-stop shop for our customers to search, book and Our vision is to be the “Alternative”, the most flexible business
Slide 16: Trialing Machine Learning / Artificial Intelligence
LEISURE Trialing Machine Learning / Artificial Intelligence 0 00 0 Propensity AI Models & Generative AI Grow Tour Demand Forecasting Search Optimisation Travel Ideation • Using Machine Learning models to analyse Inclusions: • Trialing GenAI to generate personalized trip • Leveraging AI models to pre
Slide 17: AI powering productive operations
C O R P O R AT E AI powering productive operations ONGOING FOCUS ON IMPROVING PRODUCTIVITY & THE CUSTOMER EXPERIENCE Continued development of capabilities & product suite with several new initiatives underway including: • Revolutionizing Customer Service with AI: Our new AI feature intelligently cat
Slide 18: Prioritising shareholder value creation
P ri o ri t i s i n g s h a reh o l d e r v a l u e c re a t i o n ONGOING FOCUS AREAS 1 STRE NG THE NING O UR GL OBAL PRE SENC E Organic growth focus, supported by strategic M&A – Cruise Club UK acquisition 2 E NH ANCI NG DI GI TAL CAPABI LI TIE S Aiming to boost productivity, grow sales and enhanc
Slide 19: CEO's Address: Graham "Skroo" Turner
CEO’s Address: Graham "Skroo" Turner
Slide 20: Flight Centre Travel Group (FLT): Our story
Flight Centre Travel Group (FLT): Our story A diverse global business ✓ 4 key divisions in 4 regions – Australia’s largest travel retailer & corporate travel manager ✓ Circa 15,000 global workforce (including independent agents) Americas Proven track record of sales growth in a resilient sector ✓ 37
Slide 21: A materially larger corporate business
A materially larger corporate business TTV materially above FY19 in all regions TTV growth rates v FY19 14b • Global Corporate: +36% FY19 TTV($b) FY24 TTV($b) 12b • Americas: +27% • ANZ: +17% 10b • EMEA: +73% 8b • Asia: +49% 6b 4b 2b - Global Corporate Americas ANZ EMEA Asia With Amex GBT’s acquisit
Slide 22: Achieving scale benefits, with further productivity uplift to come
C O R P O R AT E Achieving scale benefits, with further productivity uplift to come Productive Operations Starting to achieve scale benefits 1 DI GI TISATI ON & STANDARDI SATI ON ✓ 11% transaction volume growth & record TTV achieved during FY24 with reduced workforce (circa 95% of OF O PE RATIO NS F
Slide 23: Trusted Portfolio of Travel Brands
LEISURE Trusted Portfolio of Travel Brands FOUR LE ISURE CATEGORIES, OPERATING WITH A LEANER COST BASE & SCALABLE OFFERINGS Mass Market Luxury Specialist Independents Global omni-channel travel retailer The leading network of Specialist brands: Fast growing community famous for flights + holidays, l
Slide 24: A more profitable, productive & efficient leisure business
A more profitable, productive & efficient leisure business Leisure TTV Split 18% 19% Leisure FY19 FY24 67% TTV 55% 9% TTV • Specialists 17% • Independents • Luxury 6% • Mass 9% • 45% of leisure TTV during FY24 generated by emerging (Horizon 2) businesses 24 | FLT
Slide 25: Expanding our addressable markets
Expanding our addressable markets Corporate Leisure • New Ignite partnership with Aldi - Aldi Holidays packages • Meetings & Events – new global business launched (FCM • Travel Money wholesale FX offering Meetings & Events] • More products available online, including Anywhere 2 • Specialist Corporat
Slide 26: Proactively targeting cruise market-share
L EI SUR E Proactively targeting cruise market-share Si gnific ant inves tme nts in a buoyant s ec tor that is growing rapidly Leisure expansion • Cruiseabout brand reintroduced - 3 shops now open in Australia • MyCruise (Ignite) offering performing strongly in Australia • Cruise Club UK business ac
Slide 27: FY25: Trading Update
FY 25: Tra di ng Upd ate Commentary • Cyclical challenges leading to patchy trading during FY25 1st quarter compared to reasonably strong & more consistent trading period in FY24 • Solid rebound in October (TTV up circa 6% & underlying PBT up circa 30%) after a reasonable July but relatively soft Au
Slide 28: Further airfare price deflation
Further airfare price deflation Continued reductions in average international economy airfares sold in Australia during the 1st quarter (compared to PCP) 28 | FLT
Slide 29: FY25: Cheaper airfares driving leisure volume growth
FY25: Cheaper airfares driving leisure volume growth Commentary • Cheaper fares starting to stimulate sales - 15% increase in international airfares sold in Australia during 1st quarter with growth rate maintained in October. • Leisure travellers typically looking for value - fuelling strong growth
Slide 30: FY25: Continued corporate volume growth
FY25: Continued corporate volume growth FY25: Continued corporate volume growth Commentary • 3% increase in corporate transaction volumes during first quarter in flat market globally • Volume growth achieved on record FY24 result & with leaner workforce – pointing to productivity gains • Growth driv
Slide 31: FY25: Outlook & guidance
FY25: Outlook & guidance Commentary • Targeting an underlying profit before tax between $365m & $405m • Mid-point of $385m represents 20% growth on FY24 &, if achieved, will be a record, eclipsing the $384.7m underlying FY18 result • Normal market growth rate of 4-5% expected, in line with IATA's lo
Slide 32: Earnings seasonality: Heavier 2H Profit Weighting
Earnings seasonality: Heavier 2H Profit Weighting % of Full Year Underlying PBT 41% 34% FY19 FY19 FY24 TTV TTV 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 32 | FLT
Slide 33: Possibility of heavier than normal 2H weighting during FY25
E AR NINGS SEASONALI TY Possibility of heavier than normal 2H weighting during FY25 M ACRO EC ONOM IC & GE OPOL ITI CAL TAILWINDS 1 More favourable trading conditions possible during second half if economic cycle improves & with increased political stability LE ISU RE & CO RPORATE VO LUM E U PL IFTS
Slide 34: Key drivers: Underlying profit margin improvement
Key d r i ve rs : U n de r l y i n g p ro f i t m ar g i n i m p rov em e n t Ongoing focus on delivering sustainable, long-term value. 1 RE VENUE MARG IN RE COVE RY 170 basis point improvement over past 2 years & targeting further improvement through supplier agreements & strategic initiatives 2 C
Slide 35: Formal Business
Formal Business 35 | FLT
Slide 36: Re-elect Robert Baker
Re so lu ti on 1 Re-elect Robert Baker The number of proxies received for the resolution is: Decision Votes % 122,845,460 96.84% For 3,846,254 3.03% Against 165,898 0.13% Open 126,409 Abstain 36 | FLT
Slide 37: Re-elect Colette Garnsey
Re so lu ti on 2 Re-elect Colette Garnsey The number of proxies received for the resolution is: Decision Votes % 123,446,068 97.30% For 3,258,894 2.57% Against 166,618 0.13% Open 112,431 Abstain 37 | FLT
Slide 38: Approve grant of deferred incentive plan rights to managing director
Resolution 3 Approve grant of deferred incentive plan rights to managing director The number of proxies received for the resolution is: Decision Votes % 109,011,815 98.85% For 1,107,128 1.00% Against 164,581 0.15% Open 109,544 Abstain 38 | FLT
Slide 39: Approve increase to non-executive directors' fee pool
Re so lu ti on 4 Approve increase to non-executive directors’ fee pool The number of proxies received for the resolution is: Decision Votes % 109,309,721 99.11% For 805,528 0.74% Against 164,670 0.15% Open 113,159 Abstain 39 | FLT
Slide 40: Approve remuneration report
Re so lu ti on 5 Approve remuneration report The number of proxies received for the resolution is: Decision Votes % 108,320,958 98.25% For 1,760,010 1.60% Against 164,555 0.15% Open 147,555 Abstain 40 | FLT
Slide 41: General questions?
General questions? 41 | FLT
Slide 42: Meeting is paused for voting to be finalised
Meeting is paused for one minute for voting to be finalised
Slide 43: Voting is now closed
VOTING IS NOW CLOSED
Slide 44: Meeting has closed
MEETING HAS CLOSED
Flight Centre Travel Group — Shareholder Meeting (November 2024) on 6ix