Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — FY2017 Earnings Presentation
36 slides from Corporate Travel Management's earnings presentation, Aug 22, 2017
Slide 1: Corporate Travel Management Full year results 2017
For personal use only CORPORATE TRAVEL MANAGEMENT Full year results 2017. Presented by: Jamie Pherous, Founder & Managing Director Date: 22nd August 2017
Slide 2: Disclaimer
Disclaimer. For personal use only The information in this presentation does not constitute personal investment advice. The presentation is not intended to be comprehensive or provide all information required by investors to make an informed decision on any investment in Corporate Travel Management L
Slide 3: Overview
Overview. For personal use only CTM is an award-winning provider of innovative and cost effective travel management solutions to the corporate market. Its proven business strategy combines personalised service excellence with client facing technology solutions to deliver a return on investment to cl
Slide 4: Group Result Highlights
Group Result Highlights. Change on Reported (AUD) FY2017 • Underlying EBITDA up 43% to $98.6m. On a constant currency ͣ P.C.P For personal use only basis, underlying EBITDA up 51% to $104.0m, (-$5.4m FX effect). TTV (unaudited) 4161.9m +16% • Strong TTV growth despite negative impact from ticket pri
Slide 5: Strategy Execution
For personal use only Strategy Execution.
Slide 6: Recap: How and why we grow - Innovation the Key
Recap: How and why we grow - Innovation the Key. For personal use only OUTCOMES OUTCOMES • FY17 – record value of new clients won at • High staff engagement across the world record conversion rates across all regions CLIENTS PEOPLE • Staff empowerment drives agile decision • 97% + Client retention m
Slide 7: Benefits of scale and technology: IPO to FY17
Benefits of scale and technology: IPO to FY17 Revenue/ Increasing Increasing EBITDA EBITDA/Revenue TTV Yield % For personal use only Revenue per FTE per FTE % Margin -13% +48% 148k +246% +71% 45k 9.0% 8.9% 30.4% 7.8% 128k 25.3% More than 29k off-set by Result 17.8% 100k 13k FY10 FY13 FY17 FY10 FY13
Slide 8: Growth profile
For personal use only Growth profile.
Slide 9: Underlying FY17 EBITDA Growth Summary
Underlying FY17 EBITDA Growth Summary (AUD$m). For personal use only AJT (5mth 0.5m) Redfern (5mth 6.5m) Travizon (12mth 5.0m) Montrose (6mth 3.8m) EUR 5.8m USA 5.9m ANZ 7.5m ASIA -3.2m *M&A EBITDA values represent EBITDA at time of acquisition announcement for p.c.p. • Organic growth the catalyst f
Slide 10: CTM Global Footprint and Performance Overview
CTM Global Footprint and Performance Overview (AUD$m) _____________________________________________________ EUROPE For personal use only Market Size USD500b CTM Market Share <1% Revenue $49.2m (+32%) (*+59%) EBITDA $18.4m (+202%) (*+259%) ASIA Market Size USD650b USA CTM Market Share 1%+ Market Size
Slide 11: EBITDA Contribution by Region
EBITDA Contribution by Region*. * Before global overhead costs FY17 $98.6m For personal use only FY16 $69.0m 16% FY15 $49.1m 8% 24% 28% 5% 30% 37% 30% 47% 18% 30% 27% Asia NA ANZ EUR Asia NA ANZ Europe Asia NA ANZ Europe • Building a diversified global business, with 70% of profits derived off-shore
Slide 12: Diluted EPS Growth since IPO
Diluted EPS Growth since IPO. 52.5 For personal use only 42.8 30.6 cents per share 27.9 25.1 18.8 16.3 17.4 14.9* 13.5 11.6 9.8 8.2 21.9 7.2 17.7 6.6 3.6 10.5 6.3 6.5 6.7 7.2 3.0 2010 2011 2012 2013 2014 2015 2016 2017 HY FY * Restated downwards for voluntary change in accounting policy on recogniti
Slide 13: Award winning
Award winning. For personal use only CTM ASIA CTM Europe CTM North America CTM North America Best Travel Agency Best Travel Management Loyalty Travel Innovations Travel Agent Allure Travel By CTM Hong Kong Company (£50m to Organizations - Overall - Travel Agent North America’s Leading Travel Agency
Slide 14: Regional Performance
For personal use only Regional Performance.
Slide 15: FY17 Regional overview
FY17 Regional overview For personal use only Australia & New CTM Consolidated North America Asia Europe Group Zealand % Jun-17 Jun-16 Jun-17 Jun-16 Jun-17 Jun-16 Jun-17 Jun-16 Jun-17 Jun-16 Jun-17 Jun-16 change Reported (AUD) $m $m $m $m $m $m $m $m $m $m $m $m TTV 4,161.9 3,587.1 16% 962.3 848.6 13
Slide 16: ANZ
ANZ For personal use only Jun-17 % Jun-16 Change Underlying EBITDA up 28% on the p.c.p.: Reported (AUD) • Winning market share through record new client wins and retention $m $m TTV 962.3 848.6 13% • Mature management team executing to plan • 80% of all client transactions are on-line Revenue 91.5 7
Slide 17: North America
North America % Jun-17 Jun-16 Change Underlying EBITDA up 69% on the p.c.p.: For personal use only Reported (AUD) $m $m • A strong year via combination of client wins, integration success, leveraging scale TTV 1,309.9 867.0 51% • 2HFY17 client activity decline as uncertainty on US tax and infrastruc
Slide 18: Asia
Asia Jun-17 Jun-16 % Underlying EBITDA down 15% on the p.c.p.: For personal use only Change Reported (AUD) • Tough year from headwinds outside CTM control (ticket prices, China), reducing $m $m supplier payment revenue, previously flagged in 1HFY17 TTV 1,301.1 1,532.8 (15%) • Closed down and sold of
Slide 19: Europe
Europe % Underlying EBITDA up 202% on the p.c.p.: Jun-17 Jun-16 For personal use only Change Reported (AUD) $m $m • An excellent year due to execution by applying CTM business model TTV 588.6 338.7 74% • Integral role to CTM group’s success in regional and global client wins Revenue 49.2 37.2 32% •
Slide 20: Group Financial Performance
For personal use only Group Financial Performance.
Slide 21: Comparative Statutory Profit and Loss
For personal use only Comparative Statutory Profit and Loss. $AUD (m) % 2017 2016 Change Revenue and other income 325.9 264.8 23% EBITDA adjusted for one-off non-recurring / • Increased EBITDA margin resulting from automation, scale 98.6 69.0 43% acquisition costs (adjusted EBITDA) and integration e
Slide 22: Group Balance Sheet
Group Balance Sheet. $AUD (m) June June For personal use only 2017 2016 Cash 79.2 81.2 Receivables and other 205.7 173.0 Total current assets 284.9 254.2 • Receivables and payables increased in line with business growth PP&E 5.3 5.4 Intangibles 441.0 308.1 • Intangibles increase is largely goodwill
Slide 23: Key Financial Commitments – M&A
Key Financial Commitments – M&A (AUD). AUD $m 1H18 2H18 1H19 2H19 1H20 Total For personal use only Chambers Travel, Europe 12.9m 12.8m 25.7m Travizon Travel, USA 19.7m 19.7m Redfern Travel, UK 8.3m 8.3m 16.6m TOTAL 40.9m 12.8m 8.3m 62.0m Shares 6.5m 6.4m 12.9m Maximum cash payable 34.4m 6.4m 8.3m 49
Slide 24: Normalised Operating Cash Conversion
Normalised Operating Cash Conversion. For personal use only $AUD (m) June June • Timing of BSP payments have largest impact on 2017 2016 operating cash flow. These timing differences are Cash flows from operating activities 69.3 70.2 short term (1-7 days) Add back: tax and interest 22.1 13.4 Total o
Slide 25: Cash Flow Summary
Cash Flow Summary. $AUD (m) FY2017 FY2016 For personal use only • Investing cash flows primarily relate to Redfern and EBITDA 97.0 70.1 Travizon acquisitions and Montrose earn-out Non cash items 0.1 (2.6) consideration Change in working capital (5.8) 16.0 Income tax paid (20.0) (12.2) • 2017 Capex i
Slide 26: FX is majority accounting translation
FX is majority accounting translation. For personal use only UK/Europe USA Asia ANZ Short term debt in Short term debt in Cashflow primarily Local cashflow GBP (to fund M&A) USD (to fund M&A) used to pay minority primarily used to shareholder pay dividends to dividend within Asia CTD shareholders Kn
Slide 27: Acquisition Update
For personal use only Update. Acquisition
Slide 28: Recap: Why acquisition execution is successful?
Recap: Why acquisition execution is successful? Target Qualification Execution For personal use only Disciplined Transition Strategy Discipline (-3 to 6 months) (+0 to 36 months) (-36 to -3 months) • Geography, Scale, Niche • “1 in 100” • Identify upsides that • Intentionally leverage enhance; stren
Slide 29: EBITDA Growth Ex-Acquisition
EBITDA Growth Ex-Acquisition Proven Selection and Integration execution For personal use only $40.0 USD27.1m Organic growth AUD36.3m post-acquisition $35.0 Accum. acquired EBITDA Growth Post Acquisition Consistent $30.0 USD11.5m business model AUD26.3m $25.0 $20.0 HKD106.0m GBP11.0m $15.0 HKD42m GBP
Slide 30: Technology CTM SMART
For personal use only Technology. CTM SMART
Slide 31: Our technology approach - best practice, delivering results
Our technology approach- best practice, delivering results. User Experience Focusing on delivering For personal use only technology that is easy to use and adopt Development World Class development “CTM offers us not only the flexibility and team experienced in the travel industry professionalism in
Slide 32: Technology hubs now located in all global regions
Technology hubs now located in all global regions For personal use only Region Tech hub location ANZ Sydney, Australia EMEA Hale, United Kingdom NA Los Angeles, California ASIA Hong Kong Goal : Accelerate speed to market and tailor client development, in-region PAGE 32
Slide 33: FY18 Guidance
For personal use only FY18 Guidance.
Slide 34: FY18 Guidance
For personal use only FY18 Guidance. FY18 underlying EBITDA range of AUD$120-125m (22.0%-27.5% growth on the p.c.p.) Guidance Assumptions: 1. Foreign Currency cross-rates average USD76c/GBP60p during the year. Assumes HKD and USD pegged. FX sensitivity upon EBITDA : • for every +/- USD1c movement =
Slide 35: Questions?
For personal use only Questions?
Slide 36: Thank you
For personal use only Thank you.
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