Helloworld Travel Ltd · ASX:HLO
Helloworld Travel — FY2021 Earnings Presentation
23 slides from Helloworld Travel's earnings presentation, August 2021
Slide 1: Helloworld Travel Limited FY21 Results
TRAVEL LIMITED Andrew Burnes CEO David Hall CFO
Slide 2: Disclaimer
Disclaimer The information contained in these materials or discussed at the presentation is not intended to be an offer for subscription, invitation or recommendation with respect to shares or securities in any jurisdiction. No representation or warranty, express or implied, is made as to the fairne
Slide 3: Our travel operations
Our travel operations • Retail and business travel agency networks • Corporate travel management • Leisure travel wholesaling • Inbound tour operating • Air Ticket consolidation • Online B2C • Tour operating • Event freight services 3
Slide 4: A year of extraordinary challenges
A year of extraordinary challenges • The global travel industry has been an industry of growth, delivering significant economic benefits to those directly and indirectly engaged in it. The total size of the industry in 2019 was estimated at US$2.9 trillion. In 2020 this shrunk to US$1.5 trillion in
Slide 5: Performance highlights
Performance highlights • TTV was approximately 15% of pre-COVID levels over much of the year, rising to 25% in Q4. • Losses kept to a minimum. • Continued improvements to technology suite resulting in improved customer outcomes, cost reductions and enhanced capability. • Massive refund and travel cr
Slide 6: Total Transaction Value (TTV)
160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 VIC Lockdown 89,573 due to COVID-19 aaa ve 729 74,447 72,588 _ — _ —T I ] ill helloworld Total Transaction Value (TTV) Wl Gross TTV per Month =— Cumulative Gross TTV AUS Lockdowns and State border restrictions 141,849 134,293 AUS State bord
Slide 7: FY21 Group Results (Underlying)
FY21 Group Results (Underlying) FY21 FY20 Change FY21 NOTES $m $m $ (1) Other income includes government wage Total Transaction Value (TTV) 1,081 5,006 (3,925) subsidy support of $23.0m including Total Revenue and other income (1) 94.2 294.9 (200.7) Australia of $21.9m and New Zealand A$1.1m Revenue
Slide 8: Cash Flow
Cash Flow $’m FY21 FY20 Net cash used in operating activities (13.5) (41.4) • Cash burn minimised with costs under tight control Payments for intangibles (6.4) (16.6) • Monthly net operating cash outflows maintained at circa $1.2m Payments for property, plant and equipment (2.8) (2.9) Payments for a
Slide 9: Travel poised for rapid return in FY22
Travel poised for rapid return in FY22 • From mid-December 2021, Qantas is planning to commence flights between Australia and Fiji, Singapore, the United States, Japan, United Kingdom and Canada.* • Pent up demand for domestic and international leisure, VFR** and corporate travel is at extraordinary
Slide 10: Network members
Network members HLO agent networks showing steadfast resilience and maintain a strong presence for expected travel demand BRANDED ASSOCIATE MAGELLAN BUSINESS TRAVEL INDEPENDENT TRAVEL BROKER NETWORK NETWORK TRAVEL GROUP NETWORK NETWORK NETWORKS 2,224 at 30 JUNE 2021 | 2,496 at 30 JUNE 2020 • The HLO
Slide 11: Best of breed technology solutions
Best of breed technology solutions • HLO has reduced its operational capacities in line with COVID-19 impacts we have continued throughout FY21 to invest in further development of our core technologies. • In HLO’s corporate division, we continue to work with our GDS and portal partners and have roll
Slide 12: Outlook
Outlook • Australia is on the pathway to achieve a vaccination rate of 80 per cent by end November 2021. • It is expected that State borders will be largely re-opened by Christmas and international borders should begin to open up in December 2021. • In the meantime, HLO will continue to run its busi
Slide 13: Performance summary
Performance summary Ongoing impact of COVID-19 • Since March 2020 domestic and global travel restrictions in place in all source markets • Government imposed travel restrictions have shut down all international and much domestic travel in Australia and New Zealand • TTV was circa 15% of pre-COVID le
Slide 14: Business focus
Business focus HLO Corporate Travel Businesses • HLO’s corporate travel businesses comprise QBT, AOT Hotels, TravelEdge, Show Travel, Show Freight, APX (NZ) and Atlas Travel (NZ). On a year-to-date basis, Australian operations are running at 67% of prior year TTV and 51% of revenue, while NZ TTV and
Slide 15: Business focus
Business focus HLO Leisure Wholesale Businesses • CruiseCo acquisition in FY21 – the cruise wholesaling specialist is now fully integrated with HLO’s existing cruise wholesale business, Seven Ocean Cruising. Enabling creation of new offerings and improved experiences for agents and consumers. • Crui
Slide 16: Reconciliation of Underlying EBITDA
Reconciliation of Underlying EBITDA FY21 FY20 • COVID-19 has caused unprecedented impacts to travel and tourism $m $m as a result of border closures, mandatory quarantine periods and Underlying EBITDA (14.1) 44.0 restrictions on domestic and international travel. Impairment of non-current assets (0.
Slide 17: Segment Results - Australia
Segment Results - Australia FY21 FY20 Change • Strong growth in TTV compared to quarter-on-quarter with stable borders. $m $m % • Corporate travel business showed strong rebound in months where domestic borders were open. AOT Total Transaction Value (TTV) 962.5 4,275.5 (77.5) Hotels was up 40% on FY
Slide 18: Segment Results – New Zealand
Segment Results – New Zealand • Cook Islands reopening and Trans-Tasman bubble FY21 FY20 Change generated increases in TTV when operating. $m $m % • Restructuring completed at the start of the year. Total Transaction Value (TTV) 118.5 688.9 (82.8) Revenue and Other Income 7.8 47.3 (83.5) Gross margi
Slide 19: Segment Results – Rest of the World
Segment Results – Rest of the World • HLO’s Fiji operations remain largely dormant during FY21 FY20 Change the year to border restrictions. $m $m % • Personnel in Fiji continue to provide database and other support functions Total Transaction Value (TTV) - 41.5 - • TTF and ATS are both well position
Slide 20: Liquidity and funding
Liquidity and funding Liquidity Jun-21 Jun-20 Change • As at 30 June 2021, HLO’s loan facilities were extended by Westpac, with $m $m $m Facility D expiring in September 2022 and Facility A, B & C expiring in March Total cash 131.0 131.9 (0.9) 2023. Drawn debt (81.0) (101.0) (20.0) • As at 30 June 2
Slide 21: Appendix
Appendix
Slide 22: Company background information
Company background information A$1.67 A$258.9 M 155.0M A$131.0 M Cash Share Price at Market Cap at Shares on issue A$81.0 M Debt 30 June 2021 30 June 2021 Board and Management Team Non-Executive Director and Chairman - Garry Hounsell Garry was appointed to the Board as Chairman on 4 October 2016 and
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