Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — H1 2014 Earnings Presentation
24 slides from Corporate Travel Management's earnings presentation, Feb 11, 2016
Slide 1: Half Year Results 2014
HALF YEAR RESULTS 2014 Jamie Pherous, Managing Director Steve Fleming, CFO
Slide 2: Disclaimer
Disclaimer This document is not a prospectus under Australian law and does not constitute an offer, invitation or recommendation to subscribe for or purchase any security or financial product and neither this document nor anything contained in it shall form the basis of any contract or commitment. I
Slide 3: Agenda
Agenda • Key Financial Highlights • Acquisition Update • FY14 Technology • FY14 Initiatives • Trading Update Page: 2
Slide 4: Group Result Highlights
Group Result Highlights Underlying EBITDA up 28% to $10.4m, excluding $1.1m one- off acquisition costs TTV (unaudited) ↑ 14% Strong Client Wins & Retention across Group Revenue ↑ 15% ANZ – experienced tough trading conditions in pre and post federal election. Record new business wins in first
Slide 5: Sales Growth by FY Half
Sales Growth by FY Half 1,500 1,300 *1300 1,100 900 884 TTV $M 681 700 (unaudited) 502 491 500 432 350 315 300 222 166 100 -100 2010 2011 2012 2013 2014 * Forecast (includes 5 months contribution from Westminster Travel 1st Half Full Year Page: 4
Slide 6: EBITDA Summary
EBITDA Summary 0.9 10.4 0.9 0.5 *8.1 EBITDA $m 1HFY13 ANZ USA M&A USA Organic 1HFY14 * Restated for voluntary change in accounting policy in recognition of pay direct commissions Page: 5
Slide 7: Profit and Loss - ANZ
Profit and Loss - ANZ Underlying EBITDA up 6% on p.c.p: $AUD ANZ Margin improvement due to productivity execution without compromising 1H2014 1H2013^ % Change client satisfaction or staff engagement Continued tough economic conditions TTV 353m 371m -5% Real organic growth 1H +7%, offset by com
Slide 8: Profit and Loss – North America
Profit and Loss – North America $AUD North America Strong 1H result like for like EBITDA up 75% on p.c.p due to strong organic growth and leveraging scale 1H2014 *1H2013 % Change Business process integration on track for completion June TTV 138m 114m +21% 2014 Stronger 2H expected due to seaso
Slide 9: Comparative Statutory FY14 Profit and Loss
Comparative Statutory FY14 Profit and Loss 1H2014 % change *1H2013 Underlying EBITDA margins have improved slightly as a result of: TTV (unaudited) 490.7 431.1 • Improvement of 1H margin in ANZ, despite tough economic Revenue 43.3 15% 37.6 conditions Other Income Operating Expenses (34.0) (29.5) •
Slide 10: Group Balance Sheet ($m)
Group Balance Sheet ($m) Dec 13 $m *June 13 $m Minimal debt ($370k) at balance date Cash 9.8 13.5 Receivables and other 20.0 23.9 Strong working capital position as reflected in the Total current assets 29.8 37.4 cash flow statement PP&E 2.9 3.2 Receivables have fallen from June 2013 due to In
Slide 11: Cash Flow Summary ($m)
Cash Flow Summary ($m) 6 mths *6 mths Operating cash flow has been positively impacted by improved FY13 $m FY12 $m supplier management and a positive contribution by North American operations EBITDA 9.3 8.1 Change in working capital 0.1 1.9 Other investing cash flows relate to North American acq
Slide 12: Agenda
Agenda • Key Financial Highlights • Acquisition Update • FY14 Technology • FY14 Initiatives • Trading Update Page: 11
Slide 13: Key Financial Commitments – M&A
Key Financial Commitments – M&A R&A Travel Outstanding earn-out up to USD$1.6m (this reflects top tier and is expected to be achieved) Payment due 31 August 2014 TravelCorp Outstanding earn out of up to USD$9.4m Payment due combination of August 2014 and August 2015, subject to future profit
Slide 14: CTM Footprint
CTM Footprint NORTH AMERICA 200 Employees ASIA Beijing 700 Employees Seoul Denver Baton Rouge Shanghai Tokyo Dallas Fort Worth New Orleans Guangzhou Taipei Houston Lafayette Macau Hong Kong Bangkok Manila Ho Chi Minh Kuala Lumpur Singapore Jakarta Brisbane ANZ Unique regional value proposition Gold
Slide 15: Asia Update
Asia Update Completed acquisition of 75.1% of Westminster Travel on 29th January 2014: Strong Management Team in place with skin in the game Already working together on a number of regional tenders and global initiative planning for FY15 Sold interest in HRG joint venture back to HRG (joint ve
Slide 16: Merger and Acquisition Discipline
Merger and Acquisition Discipline CTM’s acquisition strategy has remained consistent across 8 acquisitions: Strong discipline in selection criteria – looking for the “1 in 100” Alignment - “Skin in the game” for leaders and/or senior management Focus on financial and people due diligence for c
Slide 17: Agenda
Agenda • Key Financial Highlights • Acquisition Update • FY14 Technology • FY14 Initiatives • Trading Update Page: 16
Slide 18: FY14 Technology
FY14 Technology CTM Business Intelligence - global rollout Portal X ‘Next Gen’ – the technology centrepiece Hotel Reviews – agnostic and exclusive to CTM Taxi Share – tapping into the untapped Risk Alerts – enhanced duty of care Traveller Mapping – interactive and visual Pre-Trip Appro
Slide 19: Agenda
Agenda • Key Financial Highlights • Acquisition Update • FY14 Technology • FY14 Initiatives • Trading Update Page: 18
Slide 20: FY14 Initiatives
FY14 Initiatives Market Record New Leading Client Wins Client in 1HFY14 Innovation Improved EBITDA USA EBITDA up 75% margins whilst Global footprint maintaining high boosted by Westminster client and staff Acquisition satisfaction Page: 19
Slide 21: Agenda
Agenda • Key Financial Highlights • Acquisition Update • FY14 Technology • FY14 Initiatives • Trading Update Page: 20
Slide 22: Trading Update and Guidance
Trading Update and Guidance FY14 underlying EBITDA guidance reiterated at $27m-$28m Assumes 5 months contribution from the 75.1% share of Westminster Travel ANZ and North America continue to trade in line with previous guidance Trading Update ANZ – 1H client wins exceed total of FY13 wins Ex
Slide 23: 5 Year Plan
5 Year Plan Aspirations: 5 year forward planning for ANZ, to ensure it continues to be a “fortress” of continued growth and high profitability that underpins global expansion strategy To be in every major region (ANZ, North America, Asia, Europe) with potential for emerging markets where suitabl
Slide 24: Questions?
Questions? Page: 23
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