Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — FY2012 Earnings Presentation
29 slides from Flight Centre Travel's earnings presentation, Aug 28, 2012
Slide 1: Flight Centre Limited 2012 Full Year Results
For personal use only Flight Centre Limited 2012 Full Year Results August 28, 2012 Presentation by Graham Turner – managing director Andrew Flannery – chief financial officer Melanie l i Waters‐Ryan – chief hi f operating i officer ffi
Slide 2: 2012: Result highlights
2012: Result highlights For personal use only RECORD Best sales and profit results in FLT’s history – comfortably surpassed 2010/11 records RESULTS All 10 countries profitable (EBIT) for second consecutive year IMPROVING GLOBALLY Record results in Australia, UK, USA, Dubai, Singapore and Greater Chi
Slide 3: 2012: Financial highlights
2012: Financial highlights For personal use only Reached $13.2b – up 8.5% globally TTV High AUD affected translation of overseas sales results – TTV up almost 11% at like‐for‐like exchange rates $290.4m PBT is 18.4% higher $ g than underlying y g $245.2m $ PBT in 2010/11 / ((36.3% higher g than actu
Slide 4: FLT's continued growth
2012: FLT’s continued growth For personal use only TTV: Has more than tripled since 2002 and has exceeded prior year 16 times in 17 years since listing PBT: Exceeded prior year 15 times in past 17 years (GFC and 2005 were exceptions) NPAT: $200m profit achieved 5 years after $100m milestone and 10 y
Slide 5: Results by country
2012: Results by country For personal use only SINGAPORE TTV: $63m, up 57% in CANADA AUD (up 59% in lc) EBIT: $1.0m GREATER CHINA TTV: $836m, up 8% in UNITED KINGDOM BUSINESSES: 10 TTV: $118m, up 13% AUD (up 13% in lc) EBIT: $8.9m TTV: $1.2b , up 8% in in AUD (up 14% in lc) BUSINESSES: 215 AUD (13%
Slide 6: Segmented results - Australia
2012: Segmented results ‐ Australia For personal use only HIGHLIGHTS Record profit and sales Solid performance from FLT’s most mature business Leisure and corporate travel profit growth Corporate business gaining market‐share and consolidating its position as Australia’s largest corporate tr
Slide 7: Segmented results - UK
2012: Segmented results ‐ UK For personal use only HIGHLIGHTS Strong performance in challenging conditions Record profit – easily exceeded previous best EBIT up 53% in AUD Closing in on GBP1billion TTV target by end of 2014 Corporate and leisure businesses performing well Targeting furth
Slide 8: Segmented results - USA
2012: Segmented results ‐ USA For personal use only HIGHLIGHTS Record $9.9m EBIT – almost double initial target for 2011/12 Improvement trend continued after losses of more than $60m three years ago Corporate, wholesale and Liberty leisure businesses all profitable profitable, moderate e‐comme
Slide 9: Segmented results - other
2012: Segmented results – other For personal use only HIGHLIGHTS ASIA‐MIDDLE EAST Record EBIT in Greater China, Singapore and Dubai EBIT doubled in Dubai, tripled in Singapore India profitable but below expectations 6 new leisure shops in India (100% growth) Singapore and HK leisure shops
Slide 10: Expanding FLT's brand footprint
2012: Expanding FLT’s brand footprint For personal use only 10
Slide 11: Expanding FLT's brand footprint
2012: Expanding FLT’s brand footprint For personal use only GROWTH HIGHLIGHTS 5% growth in shop and business numbers globally to 2362 Sales staff growing slightly faster – up 6% Mainly organic growth, plus small acquisition in Canada (govoluntouring) – further small acquisitions possible in th
Slide 12: Exporting FLT's brands
2012: Exporting FLT’s brands For personal use only SINGAPORE CANADA Second Flight g Centre shop p opened p govoluntouring l i acquired i d Third shop on the way FCm, My Adventure Store introduced GREATER CHINA First Flight Centre shop UNITED KINGDOM opened in Hong Kong My Adventure Store launched DU
Slide 13: Works in progress
2012: Works in progress For personal use only YEAR OF THE Giving customers what they want, want when and how they want it CUSTOMER Extended trading hours, new customer complaints systems, online payment facilities BIG EASY Series of initiatives introduced to make it easier for customers to book with
Slide 14: Year of the customer
2012: Year of the customer For personal use only KEY ELEMENTS Global Sales Academy Rollingg out throughout g the world Call recording facility compels consultants and leaders to focus on the customer experience, sales techniques and behaviours Customer Excellence Program R l ti Real‐time f
Slide 15: Big Easy Project
2012: Big Easy Project For personal use only KEY ELEMENTS Universal Desktop – new consultant desktop rolled out. Increased range of mainstream air options for consultants, validates and guarantees fares and taxes, holds detailed customer profiles LCC Platforms – plan to introduce easier to use t
Slide 16: The blended travel experience
2012: The blended travel experience For personal use only 16
Slide 17: The blended travel experience
2012: The blended travel experience For personal use only KEY ELEMENTS FLT is creating a new category of travel agency – a blended travel network Company has looked overseas to retailers in the USA and UK to develop this model Will not be purely an online travel agent or a bricks and mortar bu
Slide 18: flightcentre.com.au
2012: flightcentre.com.au For personal use only KEY ELEMENTS Continued enhancements to FLT’s flagship Australian website Now offering: Flights to more than 2700 destinations worldwide More than 100,000 hotels globally from a number of suppliers More than 30,000 cruise itineraries More th
Slide 19: Exporting the hyperstore
2012: Exporting the hyperstore For personal use only KEY ELEMENTS Multiple teams working together in one high profile location Lowers rent cost per person – delivers cost effective access to larger, prime sites Allows for longer trading hours to meet customer expectations Experts always on h
Slide 20: 2013: Outlook
2013: Outlook For personal use only Targeting 6‐8% sales network expansion PROFIT Major projects underway but in their infancy and may slow TTV and PBT growth in the short‐term TARGET Initial target of $305m‐$315m PBT – bottom of range represents 5% growth on 2011/12 record Ongoing economic uncertai
Slide 21: Airfares: Average international yield (Aus)
Airfares: Average international yield (Aus) For personal use only $ $1,600 OVERVIEW GFC $1,500 No major change in airfare $1,400 prices during 2011/12 Average remains well below $1,300 pre‐GFC levels Route specific – some fares $1,200 are cheaper now than 12 months ago, others are $1,100 sligh
Slide 22: 2013: Top global foci
2013: Top 7 global foci For personal use only Improve retail efficiency and shop operations to provide an exciting, inspiring and engaging in‐store 1 experience (Travel Shopping of the Future Project), which links with FLT’s expanded online offerings Focus on the area, a grouping of 12‐20 shops and
Slide 23: End of presentation: Questions
End of presentation For personal use only Questions 23
Slide 24: Appendices
Appendices For personal use only 1. 2012 results in brief 2. Five‐year results summary 3. Additional cash flow details 4. Additional debt details 5. Global diversity 24
Slide 25: Appendix 1: 2012 results
Appendix 1: 2012 results For personal use only RESULTS IN BRIEF FULL YEAR RESULTS JUNE 2012 JUNE 2011 V i Variance % $’ million TTV $13,238m $12,200m 8.5% G Gross P Profit fit $1 827 $1,827m $1 678 $1,678m 8 9% 8.9% Income margin 13.8% 13.8% ‐ Net margin (underlying) 2.2% 2.0% 20bps Underlying Profi
Slide 26: Appendix 2: Five-year result summary
Appendix 2: Five‐year result summary For personal use only JUNE 2012 JUNE 2011 JUNE 2010 JUNE 2009 JUNE 2008 (restated) TTV $13 238 $13,238m $12 200 $12,200m $10 894 $10,894m $11 242 $11,242m $10 880 $10,880m Income margin 13.8% 13.8% 14.3% 13.6% 13.3% EBITDA $330.7m $256.9m $257.3m $86.3m $231.4m P
Slide 27: Appendix 3: Cash flow analysis
Appendix 3: Cash flow analysis For personal use only CASH FLOW $341m operating cash inflow was recorded over the full year, compared to a $155m inflow during 2010/11 The year‐on‐year growth in operating cash flow reflects: FLT’s healthy global TTV growth Stronger than normal build‐up of clie
Slide 28: Appendix 4: Debt analysis
Appendix 4: Debt analysis For personal use only DEBT Reported debt decreased from $168m at June 30 2011 to $107m at June 30 2012 Some borrowings were repaid but year‐on‐year reduction primarily brought about by a change in Business Ownership (unsecured note) Scheme funding arrangements Under p
Slide 29: Appendix 5: Global diversity - brands
Appendix 5: Global diversity – 36 brands For personal use only Leisure Wholesale Services Flight Centre Infinity Employment Office (JV) Liberty Travel Explore Moneywise Escape Travel GOGO Healthwise Student Flights Worldwide Traveler FC Business School Travel Associates Escape Holidays Cruiseabout T
Flight Centre Travel Group — FY2012 Earnings Presentation on 6ix