Helloworld Travel Ltd · ASX:HLO
Helloworld Travel — Shareholder Meeting (October 2022)
51 slides from Helloworld Travel's shareholder meeting presentation, Oct 11, 2022
Slide 1: ASX cover letter for CEO address and AGM presentation
11 October 2022 The Manager Markets Announcement Office ASX Limited Level 4, 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam, Please find attached the CEO’s address and AGM Presentation to be presented at Helloworld Travel Limited’s 2022 Annual General Meeting, being held today at 10:00am AEDT. Your
Slide 2: CEO's Address
CEO’s Address Melbourne, 11 October 2022 Thank you, Garry. Thank you for joining us this morning and for your continued support of Helloworld Travel Limited. In particular, I welcome back our many long-term shareholders and of course welcome our new shareholders. We are pleased to once again convene
Slide 3: Travel recovered strongly in Q4
Travel recovered strongly in Q4 With the re-opening of the New Zealand borders, we have seen bookings for trans-Tasman travel pick up significantly and we expect this coming summer period will be extremely busy in both directions. In the meantime, Fiji which has been open since December 2021, has se
Slide 4: Capital and debt management
impact of this equity issuance, we kept this raising to a minimum, issuing 30 million new shares at $1.65. Following on from the sale of our Corporate Travel Management businesses, we repaid the remaining $70 million of external bank debt. With the exception of some minor bank guarantees, mainly to
Slide 5: Resworld platform and Travel Academy
During the course of the year, we continued to develop our Resworld platform and added a substantial number of new agents to the system. We continue to deliver regular enhancements to better support our users and see great potential for the continued rollout of this system in Australia and New Zeala
Slide 6: Freight – an emerging business
Freight – an emerging business In 2018 Helloworld purchased Show Travel from Avis which included the Show Freight business. With the sale of our corporate travel operations to CTM, HLO retained the Show Freight business and in early 2021 purchased the business of ATS Logistics, which also managed ev
Slide 7: Outlook for FY23
Outlook for FY23 On the back of the first quarter, we are pleased to announce that we expect a continued recovery in FY23 with underlying EBITDA in the range of $22.0 million to $26.0 million, subject to no material adverse change in operating conditions impacting our business and the continued reco
Slide 8: Annual General Meeting
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Slide 9: Disclaimer
Disclaimer The information contained in these materials or discussed at the presentation is not intended to be an offer for subscription, invitation or recommendation with respect to shares or securities in any jurisdiction. No representation or warranty, express or implied, is made as to the fairne
Slide 10: Mr Garry Hounsell, Chairman
Mr Garry Hounsell Chairman Helloworld Travel Limited Annual General Meeting 2022 a
Slide 11: Directors
Directors Garry Hounsell Andrew Burnes AO Chairman Chief Executive Officer & Managing Director Cinzia Burnes Andrew Finch Rob Dalton Executive Director Non-Executive Director Non-Executive Director GGM Wholesale & Inbound 4
Slide 12: Management in Attendance
Management in Attendance Mike Smith Sylvie Moser Chief Financial Officer Group Company Secretary 5 5
Slide 13: Auditors in Attendance
Auditors in Attendance Brett Croft Amy Burgin Partner Assurance Partner Assurance 6 6
Slide 14: Chairman's comments
Chairman’s comments Helloworld Travel Limited Annual General Meeting 2022
Slide 15: TTV increased 140% YoY to $1.077 billion
TTV increased 140% YoY to $1.077 billion $124,102 $266,367 $238,809 $448,012 8
Slide 16: Highlights from FY22
Highlights from FY22 • Full year statutory profit after tax of $90 million. • Dividend declared of 10 cents per share, fully franked, to be paid 23 September 2022. • Return to operational profitability in Q4 2022. • Strong balance sheet with $89.1 million of unrestricted cash, 3.5 million Corporate
Slide 17: Mr Andrew Burnes AO, CEO & Managing Director
Mr Andrew Burnes, AO CEO & Managing Director 10 10
Slide 18: Our travel operations
Our travel operations • Retail and business travel agency networks • Leisure travel wholesaling • Inbound tour operating • Air ticket consolidation • Online B2C • Tour operating • Event freight services • Transport services 11 11
Slide 19: Travel recovered strongly in Q4
Travel recovered strongly in Q4 • During Q2 of FY22, fully vaccinated Australians commenced travelling overseas again. • Australia welcomed international tourists in Q3 of FY22 and the Western Australian border restriction was removed. • New Zealand borders opened to Australians in April 2022 and ha
Slide 20: Performance highlights
Performance highlights • At the end of the second quarter, announced the sale of the corporate and entertainment travel management division to CTM (ASX: CTD) for $175 million comprising $100 million cash and $75 million in CTD shares. At completion date, being 31 March 2022, total consideration was
Slide 21: Capital and Debt management / Dividend history
Capital and Debt management • When the pandemic struck, Helloworld had ~$100 million of external bank debt. • During the pandemic, $30 million of debt was repaid from surplus cash. • The remaining $70 million of debt was repaid from the sale proceeds of the corporate travel management businesses. •
Slide 22: Network members
Network members Helloworld’s agent networks show steadfast resilience and maintain a strong presence for expected travel demand 2,396 31 March 2020 | 2,064 at 30 June 2022 | (-14%) • The vast majority of retail agencies in Helloworld’s networks have survived the pandemic and have met the challenges
Slide 23: Travel Academy – recruitment and talent development
Travel Academy – recruitment and talent development • In May 2022, HLO announced the launch of the Helloworld Travel Academy to attract and train new travel agency consultants across Australia. • The initiative is going very well with 185 new trainees now enrolled across Australia. • Attracting new
Slide 24: Delivering new technology solutions
Delivering new technology solutions • Wholesale delivered the “Mango” platform, our own front-end portal that operates off Tourplan NX. Mango was rolled out across our wholesale operations in October 2021, providing greater functionality, ease of loading and a wider array of product for all retail a
Slide 25: Freight – an emerging business
Freight – an emerging business • HLO is investing in freight capabilities. • We have a full-time team of over 40 people and a great team of sub-contractor partners. • Entertainment Logistics has over 110 tri-axle Pantech trailers and over 30 other vehicles including prime movers, rigid trucks and va
Slide 26: TTV increased 140% YoY to $1.077 billion
TTV increased 140% YoY to $1.077 billion $124,102 $266,367 $238,809 $448,012 19
Slide 27: September Quarter
September Quarter • TTV for continuing operations in the September 2022 quarter was $561.0 million, up 352% on the same period last year. • Revenue for the quarter totalled $29.3 million, up 174% on the same period last year for continuing operations. • EBITDA for continuing operations was $5.3 mill
Slide 28: Outlook for FY23
Outlook for FY23 • International and domestic travel is returning and confidence is improving as travellers book with longer lead times. • New Zealand borders reopened to tourists from around the world in August, which is expected to generate strong demand for the region generally. • Cruise operatio
Slide 29: Thank you
Thank you Helloworld Travel Limited Annual General Meeting 2022
Slide 30: Formal Business
Formal Business 23
Slide 31: Registration and Voting
Registration and Voting 2. Click “register” in the 1. Log in or register at: banner at the bottom of your 3. Record your vote. Once you https://investor.automic.com.au/#/home screen, then select “register” confirm it is lodged and final for this meeting To contact support: Call 1300 816 159 or open
Slide 32: Discussion on FY22 Financial Statements and Reports
Discussion on FY22 Financial Statements and Reports 25
Slide 33: Resolution 1: Adoption of Remuneration Report
Adoption of Remuneration Report Resolution 1 “That the Remuneration Report, which forms part of the Directors’ Report for the financial year ended 30 June 2022, be adopted.” 26
Slide 34: Questions
Adoption of Remuneration Report Questions 27
Slide 35: Adoption of Remuneration Report – proxy votes
Adoption of Remuneration Report Proxy Votes Number Percentage For 63,631,128 99.73 Against 90,506 0. 14 Open-Usable 83,342 0.13 Abstain 57,394 - Excluded 41,233,499 - 28
Slide 36: Resolution 2: Election of Director – Robert Dalton
Election of Director – Robert Dalton Resolution 2 "That Robert Dalton, having been appointed as a Director of HLO since the last Annual General Meeting and who retires in accordance with the Company’s Constitution and the ASX Listing Rules and, being eligible, is elected as a Director of HLO.” 29
Slide 37: Questions
Election of Director – Robert Dalton Questions 30
Slide 38: Election of Director – Robert Dalton – proxy votes
Election of Director – Robert Dalton Proxy Votes Number Percentage For 104,983,689 99. 90 Against 14,252 0. 01 Open-Usable 85,877 0.08 Abstain 12,051 - Excluded - - 31
Slide 39: Re-Election of Directors
Re-Election of Directors Helloworld Travel Limited Annual General Meeting 2022
Slide 40: Resolution 3.1: Re-Election of Director – Garry Hounsell
Re-Election of Director – Garry Hounsell Resolution 3.1 “That Garry Hounsell, who retires by rotation in accordance with the Company’s Constitution and the ASX Listing Rules and, being eligible, is elected as a director of HLO.” 33
Slide 41: Questions
Re-Election of Director – Garry Hounsell Questions 34
Slide 42: Re-Election of Director – Garry Hounsell – proxy votes
Re-Election of Director – Garry Hounsell Proxy Votes Number Percentage For 90,478,851 86.10 Against 14,523,241 13.82 Open-Usable 85,465 0.08 Abstain 8,312 - Excluded - - 35
Slide 43: Resolution 3.2: Re-Election of Director – Cinzia Burnes
Re-Election of Director – Cinzia Burnes Resolution 3.2 “That Cinzia Burnes, who retires by rotation in accordance with the Company’s Constitution and the ASX Listing Rules and, being eligible, is elected as a director of HLO.” 36
Slide 44: Questions
Re-Election of Director – Cinzia Burnes Questions 37
Slide 45: Re-Election of Director – Cinzia Burnes – proxy votes
Re-Election of Director – Cinzia Burnes Proxy Votes Number Percentage For 100,290,866 95.43 Against 4,715,895 4.49 Open-Usable 83,796 0.08 Abstain 5,312 - Excluded - - 38
Slide 46: Resolution 4: Adopt New Constitution
Special Resolution Adopt New Constitution and Repeal Existing Constitution Resolution 4 “That the document titled Constitution of Helloworld Travel Limited tabled, at the physical venue of Meeting and signed by the Chairman of the Meeting for the purposes of identification, is adopted as the New Con
Slide 47: Questions
Special Resolution Adopt New Constitution and Repeal Existing Constitution Questions 40
Slide 48: Adopt New Constitution – proxy votes
Special Resolution Adopt New Constitution and Repeal Existing Constitution Proxy Votes Number Percentage For 99,981,351 95.16 Against 5,010,047 4.77 Open-Usable 75,837 0.07 Abstain 28,634 - Excluded - - 41
Slide 49: Poll Procedure
. x Lay Poll Procedure Helloworld Travel Limited Annual General Meeting 2022
Slide 50: Closure of Poll
Closure of Poll Results of Poll Announced to ASX 43
Slide 51: Thank you
Thank you Helloworld Travel Limited Annual General Meeting 2022
Helloworld Travel — Shareholder Meeting (October 2022) on 6ix