Slide 1: Flight Centre Limited 2008 Full Year Results
For personal use only Flight Centre Limited 2008 Full Year Results 26 August 2008 (released prior to audit sign-off)
Slide 2: 2008 Highlights
2008 Highlights For personal use only RECORD Healthy global sales, improved margin and ongoing focus on cost FINANCIAL RESULTS control have led to strong profit growth ENHANCED SHAREHOLDER Increased EPS and dividend payments RETURNS BUSINESS GROWTH Organic expansion complemented by acquisitions / jo
Slide 3: 2008 Results in Brief
2008 Results For personal use only RESULTS IN BRIEF RESULTS IN BRIEF 2008 JUNE 2007 % Variance (excl abnormal) $’ million TTV TOTAL $10,882 $8,875 22.6% TOTAL – excl Liberty $10,046 $8,875 13.2% REVENUE TOTAL $1,454 $1,154 26.0% Total – excl Liberty $1,366 $1,154 18.4% EBITDA $244.4 $175.0 39.7% EBI
Slide 4: Recent growth performance
Recent growth performance For personal use only JUNE 2008 JUNE 2007 JUNE 2006 JUNE 2005 (excl abnormal) TTV $10,882 m $8,875 m $7,809 m $6,872 m Income Margin 13.4% 13.0% 12.7% 13.0% PBT $212.9 m $151.6 m $120.0 m $115.6 m NPAT $143.2 m $103.5 m $79.9 m $76.9 m EBITDA $244.4 m $175.0 m $147.6 m $140
Slide 5: Profit drivers
2008 Profit drivers For personal use only TTV GROWTH Largest year of global expansion – organic growth, acquisitions & JVs GROSS MARGIN Land & higher margin air sales, access to wholesale margin ONLINE & IT PLATFORM Various projects completed & in roll out PEOPLE Focus on training & developmen
Slide 6: Global footprint
Global footprint For personal use only CANADA UNITED KINGDOM GREATER CHINA TTV : $667m up 4.4% TTV : $1.2b up 3.3% (16.9% in local currency) (13.7% in local currency) TTV : $92m up 12.2% 168 businesses 198 businesses (27.1% in local currency) 34 businesses LIBERTY TTV : $835m (5 months) 232 business
Slide 7: Global review: Australia, New Zealand, South Africa
2008 Global review For personal use only AUSTRALIA NEW ZEALAND SOUTH AFRICA Strong leisure & Profit improvement in Continued healthy corporate results leisure & corporate growth travel Ongoing business Increased brand growth Increased leisure diversity – Travel specialisation Associates
Slide 8: Global review: United Kingdom, India, China
2008 Global review For personal use only UNITED KINGDOM INDIA CHINA Strong leisure travel Strong profit growth in Continued improvement growth targeting niche corporate travel & reduced losses – sectors (specialisation) approaching breakeven Encouraging signs from in large UK market position
Slide 9: Global review: North America
2008 Global review For personal use only NORTH AMERICA CANADA USA (excl Liberty) Strong corporate travel performance Continued corporate travel profit Improved leisure travel results during period of rapid expansion Targeting further improvement & FCm launched in new cities business growth
Slide 10: LibGo Travel Group
LibGo Travel Group For personal use only FLT’s largest acquisition – settled on 31 January 2008 Integration and restructure programs underway under new leadership team to modernise and reinvigorate the business Initiatives in their infancy – expected to gain momentum during 2008/09 Not curre
Slide 11: Liberty – integration priorities
Liberty – integration priorities For personal use only MARGINS Focus on costs, IT spend, preferred suppliers and structure. More than 180 support roles rationalised - selling staff now 70% of workforce SHOPS & NEW Refresh program, shops rebranded, specialist retail teams, business BUSINESS travel of
Slide 12: FLT's medium term growth plan
FLT’s medium term growth plan For personal use only CORE Grow FLT’s retail and corporate mainstream travel businesses BUSINESS WHOLESALE Expand FLT’s wholesale travel business to give company greater BUSINESS vertical control and margin TRAVEL Develop FLT’s presence in travel related businesses wher
Slide 13: 2009 Profit drivers
2009 Profit drivers For personal use only PEOPLE Attract and retain the right people GROWTH Grow core, specialist and new businesses SALES Continue to develop an integrated and aligned approach to sales, the customer and marketing PRODUCT Expand the integrated global product and buying system CORPOR
Slide 14: 2009 Outlook
2009 Outlook For personal use only TARGETING 10-15% PRETAX PROFIT GROWTH DEMAND Global growth opportunities: cheap airfares, strong AUD, full employment, forecast passenger growth – short haul international, cruises, tours, premium air Aiming to use strong market position and supplier relationships
Slide 15: End of presentation – Questions
End of presentation For personal use only Questions 15
Slide 16: Flight Centre Family
Flight Centre Family For personal use only Leisure Corporate Wholesale Online 16