Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Flight Centre — Shareholder Meeting (October 2004)
17 slides from Flight Centre Travel's shareholder meeting presentation, Oct 28, 2004
Slide 1: Annual General Meeting 28 October 2004
FLIGHT CENTRE LIMITED Annual General Meeting 28 October 2004
Slide 2: Ninth year as a listed public company
« Ninth year as a listed public company ¢ Improved financial results * Increased shareholder returns ¢ Additional IT and productivity investment for 04/05 « 6,900 people were instrumental in overall achievements
Slide 3: Financial performance
ance 12 months Growth to 30 June 2004 % Profit - before Tax & Goodwill $131.4m 21% - before Tax $121.3m 19% - after Tax $81.9m 17% TTV $5.96 29% Revenue $799m 28% FLIGHT CENTRE LIMITED
Slide 4: Shareholder Returns
| Shapholcer Returns 30 June 30 June Chg 2004 2003 % Earnings per share -Basic EPS 87.4¢ 77.0¢ 14% Dividends per share -Full Year dividend* 61.0¢ 43.5¢ 40% -Special dividend* 40.0¢ - 100% -Payout ratio** 70% 58% *fully franked *“based on Full Year dividend
Slide 5: Operational Overview
_ . Operational Overview — « Australia Flight Centre brand performed strongly « New Zealand & South Africa generated healthy profits « UK Britannic successful in first full year « US business in fifth year and continue to reduce losses « Canada results disappointing and affected by uncertainty surro
Slide 6: Expansion
Expansion « Continue to benefit from brand and geographic diversity - Diversity enhanced in 2003/04 through: * opening of 120 new shops worldwide * appropriate entry into China corporate travel market * acquisition of Kistend a niche travel brand * Creation of FCm Travel Solutions « Recent acquisiti
Slide 7: FCm Travel Solutions
=eon Travel Solutions = * Strong future growth opportunity Fo” « Leading corporate travel provider in Australia, TRAVEL New Zealand and UK ¢ Expanding in South Africa, North America and Asia ¢ Build through licensing & acquisition opportunities ¢ We are looking for: « the right opportunities + in th
Slide 8: Technology Strategy
egy | “Tech nology Strat « Technology strategy has been strengthened with: « acquisition of travelthere.com « Adds to e-commerce platforms in Australia including: + flightcentre.com (most popular travel agency site) * escapetravel.com.au ¢ studentflights.com.au * quickbeds.com (hotel booking service
Slide 9: Capital Expenditure
fe ~ Capital Expenditu ie a « Technology majority of overall ¢ Shop refurbishments capital expenditure - Fit-outs - $58.5 million spent in 2003/04 - Included $14.2 million acquisition of a commercial building * 316 Adelaide Street, Brisbane * significant benefits of being owner-occupier
Slide 10: Corporate Governance
ance | | Co rporate Govern « Formal company philosophies adopted when listed + An egalitarian and transparent company based on: * alean organisational structure - fundamental values of honesty, integrity, fairness, respect «- Embrace the ASX Corporate Governance Guidelines
Slide 11: 2005 First Quarter Results
2005 First Quarter Results. 3 months Growth to 30 Sep 2004 % TTV $1,625m 20% Revenue $211m 17% Profit - before Tax & Goodwill $29.3m - - before Tax $26.7m - - after Tax $17.7m - Basic EPS 18.8¢ (1%) FLIGHT CENTRE LIMITED
Slide 12: 2005 First Quarter
| 2005 First Quaner * Improved results in all international markets ¢ Strong profit growth in UK leisure travel operations ¢ Upstaffing - consultants per shop increasing globally from 4.2 to 4.7 in the past year ¢ Achieved 20% growth in TTV to $1.6 billion ¢ Profit both before and after tax in-line
Slide 13: 2005 First Quarter
r 2005 First Quarte ¢ To improve profit results and margins we will continue to: * focus on higher margin sales + enhance productivity in stores and support areas * reduce overall costs + Initiatives and projects to improve performance: - airfares database * consultant desktop * enhanced on-line boo
Slide 14: 2005 First Quarter
| 2005 First Quaner « Focused on establishing a solid foundation for the full year by investing in key areas of our business ¢ Benefits will flow through during the year ¢ Introduced seven day trading in our Australian retail operations
Slide 15: Global Strategies
Global Strategies ¢ Principal global strategies focus on: « Enhancing productivity « Increasing land-based business « Upstaffing to support shop growth * Building FCm Travel Solutions corporate travel network « Enhancing supplier relationships
Slide 16: Outlook
ii Outlook ¢ Continue to implement our principal global strategies ¢ Maintain a strong balance sheet for acquisitions ¢ Maintain our guidance of 15% growth in profit before tax ¢ We are happy with our contractual relationships with Qantas and Virgin Blue ¢ Focus on enhancing key supplier arrangement
Slide 17: Flight Centre Limited
FLIGHT CENTRE IMITED