Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Shareholder Meeting (October 2018)
34 slides from Flight Centre Travel's shareholder meeting presentation, Oct 22, 2018
Slide 1: Annual General Meeting
For personal use only Annual General Meeting Flight Centre Travel Group ASX: FLT | October 22, 2018
Slide 2: Agenda
AGENDA For personal use only Today’s Chairman’s Address Schedule MD’s Address Resolutions General Questions Polling Refreshments
Slide 3: Results & Highlights: New Milestones Established
Results & Highlights: New Milestones Established For personal use only Record TTV of Up 8.5% & $1.7b higher than previous record (FY17) $21.8b Represents almost $60m in TTV on average every day Record Profit Near top of upgraded guidance & $55m above FY17 result $384.7m (underlying) 16.8% year-on-ye
Slide 4: FY18 Result Drivers: Margins
FY18 Result Drivers: Margins For personal use only Income 25bps decrease – decrease was expected & driven largely by ongoing business mix changes Margin Reflects rapid growth in lower revenue margin businesses – multi-national corporate (FCM), FX (Travel Money), leisure OTAs Cost Margin 50bps improv
Slide 5: FY18: Building For The Future
FY18: Building For The Future For personal use only New in-store Rebrand & Grow FCM technology Hotel management systems (GDS) plan completed in suite consolidated business acquired now fully deployed Australia – 1200 & relaunched as (BHMA), Americas- after Australia & NZ sales people across
Slide 6: FY18: Rebrand & Grow Strategy
FY18: Rebrand & Grow Strategy For personal use only Brand mergers in Australia to create stronger networks targeting 3 key sectors Mass Market Premium Youth Focus on our No.1 travel brand – Flight Growing a network of premium agents Smaller but better network of Student Centre dominating the flight,
Slide 7: FY18: Business Transformation Program
FY18: Business Transformation Program For personal use only Successfully Executing Key Strategies Dealing with Loss-making businesses removed, downsized or pivoted problem areas USA & Canada leisure profits for 1st time since FY12 & FY11 respectively Globalisation Profit growth driven by overseas bu
Slide 8: FY18: Solid Progress Towards Transformation Targets
FY18: Solid Progress Towards Transformation Targets For personal use only 7 2 100 Goal: Goal: Goal: 7% per annum TTV growth on average in Return to 2% full year net margin by FY22 <$100m in underlying* cost growth during constant currency through to FY22 (subject to mix) FY18 FY18 Outcome: FY18 Outc
Slide 9: FY18: New Revenue Streams
FY18: New Revenue Streams For personal use only Leisure Home-based businesses acquired in Australia & NZ US start-up,(Independent by Liberty Travel) proving popular Corporate Businesses acquired in Canada & NZ Investment in Germany start-up TEN Global DMC network starting to take shape – Olympus (Am
Slide 10: BHMA
BHMA For personal use only Thailand-based hotel management company FLT’s first acquisition in the hotel sector Small, but sensible strategic investment Portfolio centred on Thailand at acquisition, but now diversifying Expansion into Bali and Vietnam Targeting additional properties in de
Slide 11: FY18: Investing in Our People
FY18: Investing in Our People For personal use only New Australian leisure wage model on the way – overwhelming support from staff Workplace Flexibility & Diversity Programs Paid Parental Leave in Australia Mentoring UK Apprenticeship Program FCM Leave, Student Flights Unlimited Leave
Slide 12: FY18: Developing our CSR Platform
FY18: Developing our CSR Platform For personal use only Making A Now a signatory to UN Difference Global Compact Work underway on inaugural Sustainability Report Brighter Futures Program initiated FC Foundation Four key areas: FCTG Worldwise FCTG People FCTG Environmental Sustainability
Slide 13: Our Structure: Now a Major Global Presence
Our Structure: Now a Major Global Presence For personal use only Leisure TEN AU/NZ Three Key Sectors in EMEA Five Key Geographies Asia/India Americas Global (TEN) Corporate
Slide 14: Our Structure: Changing Geographic Mix
Our Structure: Changing Geographic Mix For personal use only Half of our company’s sales are now being generated outside of Australia
Slide 15: Our Structure: Changing Geographic Mix
Our Structure: Changing Geographic Mix For personal use only $151m FY18 Profit Contribution EMEA & Americas 200 businesses now 150 capable of driving EMEA & Americas 100 overall profit growth Profit Contribution ($m) 50 0 FY14 FY15 FY16 FY17 FY18
Slide 16: FY19: Trading Update
FY19: Trading Update For personal use only 1st Quarter TTV tracking slightly above longer term target of 7% per year in constant currency Growth Increased PBT but modest growth on PCP Growth driven by overseas businesses as expected Further strong results in the Americas NZ, South Africa, UAE & Asia
Slide 17: FY19: Trading Update
FY19: Trading Update For personal use only Australia Corporate business again performing well Client wins & up-trading driving growth Some ongoing disruption in leisure, as expected Leisure improvement expected during 2H EBA now accepted by staff (but yet to be ratified) Network planning & enhanceme
Slide 18: Right-Sizing the Australian Leisure Business
Right-Sizing the Australian Leisure Business For personal use only TTV benefits expected Consultant later in year numbers now in line with Largest ever PCP recruitment drive completed during 350 fewer Q1FY19 consultants in place at June 30 than one year earlier
Slide 19: FY19: Market Guidance
FY19: Market Guidance For personal use only Targeting an underlying PBT between $140m First & 150m for 6 months to Dec 31, 2018 Half Represents 0-7% growth on PCP Targeting $390m-$420m underlying PBT Full Year Circa 1-9% growth on record FY18 result
Slide 20: FY19: Growth Drivers
FY19: Growth Drivers For personal use only 3.6% compounding growth Reasonable trading conditions Ongoing market growth globally expected from 2017-2036 – in Australia means industry will double International airfare prices remain highly affordable but Further benefits expected from New BT focus & pr
Slide 21: Business Transformation (BT) Program
Business Transformation (BT) Program For personal use only Launched April 2017 Years 2 & 3 The “Clean-up” Investment & stage – businesses Business & brands Engineering across our 3 divisions Year 1
Slide 22: Business Transformation: Updated Targets in Place
Business Transformation: Updated Targets in Place For personal use only Unchanged New Target Unchanged 7 10 2 TTV Growth Cost Margin Net Margin 7% per annum TTV growth on average in 10% cost margin (underlying*costs as a 2% full year net margin by FY22 constant currency through to FY22 percentage of
Slide 23: Key BT Projects: TEN
Key Globalisation – product procurement & Projects distribution BT: TEN & For personal use only Product Yield & pricing Vertical integration, structuring & growth of in-destination businesses Content & connectivity – key partner in Sabre’s Beyond NDC & Amadeus’s NDCX programs
Slide 24: Key BT Projects: Corporate
Key FCM Truly Global – leveraging global Projects capabilities to improve customer offerings & reduce costs BT: Corporate For personal use only Lower cost offerings – self service models Continued investment in tech & product suite, which includes Sam :] (AI app) & Your CT (new SME portal) Savi – ne
Slide 25: Your CT: New Portal for SME customers
Your CT: New Portal for SME customers For personal use only PROFILE APPROVE & MANAGEMENT REQUEST TRAVEL TRAVEL POLICY ALERTS BOOKING INVOICE DATA TRAVELLER REPORTS TRACKING
Slide 26: Key BT Projects: Leisure
Key FCB 2.0 – using robotics, AI & other initiatives to reduce customer pain points, bureaucracy & improve Projects performance BT: Leisure For personal use only Premium focus – expanding our independent contractor, affiliate & franchise models Global view to youth sector – online-led model utilisin
Slide 27: New Initiatives: FC Exclusives
New For personal use only Initiatives: FC Exclusives
Slide 28: Outlook: Emerging Businesses
Outlook: ci events Travel For personal use only Money Emerging Businesses Stage & Screen Jetmax Gaining Scale $31m FY18 FLT Asia Profit 99 Bikes Contribution Not expected to be major profit drivers in the near-term, but ongoing growth expected
Slide 29: FY19: New EBA Almost in Place
FY19: New EBA Almost in Place For personal use only Key Points Overwhelming support (85%+) from staff in Australia (Flight Centre brand & Student Flights) Four-year agreement must now be formally ratified before it can be introduced Positive development for the company & its people but has caused so
Slide 30: Resolution 1: Election of Colette Garnsey
Resolution 1: The number of proxies received for the For personal use only resolution … is: Election of Colette Garnsey For: 81,463,461 (98.81%) Against: 81,339 (0.10%) Open: 898,464 (1.09%) Abstain: 110,423
Slide 31: Resolution 2: Re-election of Rob Baker
Resolution 2: The number of proxies received for the For personal use only resolution … is: Re-election of Rob Baker For: 80,457,514 (97.59%) Against: 1,085,052 (1.32%) Open: 898,902 (1.09%) Abstain: 112,219
Slide 32: Resolution 3: Adoption of the Remuneration Report
Resolution 3: The number of proxies received for the For personal use only resolution … is: Adoption of the Remuneration For: 64,457,398 (95.94%) Report Against: 1,828,918 (2.72%) Open: 897,637 (1.34%) Abstain: 169,734
Slide 33: Resolution 4: Directors' Fee Pool Increase
Resolution 4: The number of proxies received for the For personal use only resolution … is: Directors’ Fee Pool Increase For: 65,738,930 (97.86%) Against: 538,097 (0.8%) Open: 895,280 (1.34%) Abstain: 181,380
Slide 34: End of Presentation: Questions?
For personal use only End of Presentation Questions? 34
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