Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — FY2015 Earnings Presentation
29 slides from Corporate Travel Management's earnings presentation, Aug 26, 2015
Slide 1: Full Year Results 2015
For personal use only Full Year Results 2015 Jamie Pherous, Managing Director Steve Fleming, Global CFO Laura Ruffles, Global COO
Slide 2: Disclaimer
Disclaimer 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 For personal use only Travel Management Li
Slide 3: Overview FY15 Results
For personal use only Overview FY15 Results Page: 3
Slide 4: Group Result Highlights
Group Result Highlights $m FY2015 Change on P.C.P Underlying EBITDA up 70% to $49.1m For personal use only versus Feb15 revised upgraded guidance, $48m+ TTV (unaudited) 2,656 ↑ 92% Over half of profit growth is organic Revenue and other 197.9 ↑ 79% Strong top line growth in every CTM region. C
Slide 5: FY15 Execution of Initiatives
FY15 Execution of Initiatives Outcome: For personal use only • Above market growth and client retention in every CTM region Outcome: • Expanded into Europe • NA integration to optimise scale moving forward • Building Global Supplier Strategy team Outcome: • Profit margin ↑ in ANZ/Asia/Europe Outcome
Slide 6: CTM – Years Since IPO
For personal use only CTM – 5 Years Since IPO Page: 6
Slide 7: CTM Footprint
CTM Footprint EUROPE Market Size USD500b CTM Market Share <1% For personal use only ASIA USA Market Size USD650b Market Size USD320b CTM Market Share 1%+ CTM Market Share <1% Unique Value Proposition ANZ Market Size AUD7.5b Operating out of 56 cities in 32 countries CTM Market Share 12% Over 1800 em
Slide 8: Over Years of Continued Growth
Over 20 Years of Continued Growth 3500 For personal use only 3250 Key growth metrics since FY10 IPO 3000 Dec10 TTV up over 750% 2750 Statutory EBITDA up over 850% ASX200: 2656 2500 4700 Source: 2010 CTM Prospectus 2250 2000 TTV AUDm 1750 1500 1384 1250 1000 884 750 682 500 502 250 316 352 235 16 19
Slide 9: EPS Growth Since IPO
EPS Growth Since IPO Dec 10 For personal use only 30.0 27.9 cents per share 25.0 20.0 18.8 16.3 *14.9 15.0 13.5 10.0 6.6 5.0 - 2010 2011 2012 2013 2014 2015 * Restated downwards for voluntary change in accounting policy on recognition of pay direct commissions Page: 9
Slide 10: Award Winning across CTM regions
Award Winning across CTM regions For personal use only ANZ 2014 Best National Travel ASIA Management Company 2014 Best Travel Agency 9 of the last 12 years Hong Kong Winner 6 of the last 8 years ETM Best Events Company 3 of the last 4 years 2015 UK Ranked 28th Most 2015 Best Travel Innovative Compan
Slide 11: Building Geographic Diversity – EBITDA Contribution by region
Building Geographic Diversity – EBITDA Contribution by region* * Before global overhead costs For personal use only FY10 FY14 FY15 16% 5% 30% 17% 47% 67% 18% 100% ANZ Asia NA ANZ Asia NA ANZ EUR Majority of profit derived off-shore in FY15 and expect this trend to continue in FY16 Page: 11
Slide 12: FY15 Financial Performance and FY16 Outlook by Region
For personal use only FY15 Financial Performance and FY16 Outlook by Region Page: 12
Slide 13: Underlying EBITDA Growth Summary
Underlying EBITDA Growth Summary ($m) For personal use only 0.7 1.6 2.2 49.1 6.1* 4.5 1.5 2.8 4.1 28.9 FY14 ANZ Organic NA M&A NA Organic Asia Organic Asia M&A Europe M&A Europe Global FY15 Organic O/head * The results represents full year for comparative purposes only. CTM acquired the business 31
Slide 14: ANZ
ANZ Underlying EBITDA up 19.5% on the p.c.p. (19.5% organic): $AUD ANZ For personal use only Strong client wins, despite difficult economic conditions. Significantly outperformed peers FY2015 FY2014 % Change Yield decline due to increased client on-line adoption, but it is TTV 813.8m 715.7m 13.7
Slide 15: Asia
Asia Underlying EBITDA up 200% on the p.c.p. (39.4% organic): For personal use only $AUD Asia Strong growth in the corporate and wholesale segments. Outperforming the market on all fronts FY2015 FY2014ˆ % Change World99 performing well TTV (unaudited) 1082.0m 825.6m 31.0% Leveraging CTM techno
Slide 16: North America
North America For personal use only Underlying EBITDA up 79.3% on the p.c.p. (17.3% organic): $AUD North America Primary focus upon integration, and building a long term organisational structure to enable scalable platform for future FY2015 FY2014 % Change growth. Forgone $2m+ of profit in short t
Slide 17: NA - Organic EBITDA and TTV Growth, after combining businesses
NA - Organic EBITDA and TTV Growth, after combining 5 businesses EBITDA Contribution at TTV at For personal use only acquisition date acquisition date CTM opened in NA in FY13 through Acquisition business and acquisition date ($m) ($m) acquisition. Since then, have acquired four other companies, w
Slide 18: UK/Europe
UK/Europe $AUD Europe For personal use only Acquired 2 January 2015 Performance for six months in line with expectation from date of acquisition (2 Jan 2015) to 30 June 2015 FY2015* FY2014ˆ % Change Strong market share growth during the six months from date of TTV (unaudited) 147.3m 129.0m 14.
Slide 19: Group Financial Performance
For personal use only Group Financial Performance Page: 19
Slide 20: Comparative Statutory Profit and Loss
Comparative Statutory Profit and Loss For personal use only $AUD (m) FY 2015 % change FY 2014 Strong organic growth across the group TTV (unaudited) 2,656 91.9% 1,384 Increased amortisation and depreciation due to Revenue and Other Income 197.9 79.1% 110.5 impact of M&A activity Operating Expens
Slide 21: Group Balance Sheet
Group Balance Sheet ($m) $AUD (m) June 15 $m June 14 $m For personal use only No debt Cash 40.7 32.0 Receivables and payables increased in line with business growth Receivables and other 158.0 103.9 Total current assets 198.7 135.9 Intangibles are largely goodwill and acquisitions - increase y
Slide 22: Key Financial Commitments – M&A
Key Financial Commitments – M&A AUD $m 1H16 2H16 1H17 2H17 1H18 2H18 1H19 Total For personal use only Travelcorp¹ 4.2 USTravel¹ 4.3 Avia¹ 6.1 Diplomat¹ 3.2 Chambers¹ 7.8 10.8 11.3 TOTAL 14.6 3.2 7.8 10.8 11.3 47.7 Cash 10.7 3.2 3.9 5.4 5.65 28.85 component Stock 3.9 - 3.9 5.4 5.65 18.85 • Expectatio
Slide 23: Cash Flow Summary
Cash Flow Summary ($m) The Group is debt free at 30 June 2015 FY15 $m FY14 $m For personal use only $ AUD (m) Working capital change is due to a number of 47.7 27.1 EBITDA factors: $6m due from new global supplier deal Change in working capital (14.8) (10.3) received post 30 June Income tax pa
Slide 24: Looking forward
For personal use only Looking forward Page: 24
Slide 25: FY16 Key Strategic Initiatives
FY16 Key Strategic Initiatives • Enhance our value proposition and leverage competitive advantage across CTM network Continued Organic Growth • Outperform in local, regional and global segments, through a motivated sales team For personal use only • Execute upon M&A opportunities, remain disciplined
Slide 26: CTM SMART Technology – significant client uptake
CTM SMART Technology – significant client uptake For personal use only Number of Number of clients using SMART SMART: Travel Applications 462 13 Number of SMART Portal users 40,000+ Page: 26
Slide 27: FY16 Guidance
FY16 Guidance For personal use only • FY16 growth in underlying EBITDA to be in the range of 25%-30% (circa $61.3m-$63.8m) • Any future acquisitions would be in addition to this guidance Assumptions: • No further economic shocks • Continuation of acquisition, and subsequent integration success • Cli
Slide 28: Summary
Summary • Excellent execution in FY15 resulting in above-guidance performance: For personal use only • EPS growth of 48% for FY15, over 33% CAGR since listing in 2010 • Over half of the profit growth is organic, despite 4 accretive acquisitions during year • Top line growth attributable to CTM globa
Slide 29: Thank you
For personal use only Thank you www.travelctm.com
Corporate Travel Management — FY2015 Earnings Presentation on 6ix