Slide 1: 1H18 Results Presentation
by JOHN GUSCIC, Managing Director 22 February 2018 Page 1
Slide 2: Webjet flight bookings outperforms market by more than 4 times
Webjet flight bookings outperforms market by more than 4 times • Strong growth in higher margin products Fastest growing B2B player in the world • Significantly outperforming market growth rates in all regions • Growing more than 12 times the global market (1) Delivering strong financial performance
Slide 3: Statutory Result and Continuing Operations
Continuing 1H18 vs 1H17 (1) Statutory Result Operations (2) (includes proceeds of sale (excludes proceeds of sale of Zuji and one-offs) of Zuji and one-offs) TTV 41% 55% Total Revenue 188% 290% (1) 1H17 Restatement-- reflects the accounting treatment adopted in respect of Thomas Cook agreement for F
Slide 4: 1H18 Financial Results Summary
Statutory Result Continuing Operations (2) 1H18 1H17 Change 1H18 1H17 Change $m $m $m % $m $m $m % TTV 1,443 1,025 418 41% 1,443 932 511 55% Revenue 131.9 119.2 12.7 11% 131.9 86.7 45.2 52% Revenue as Principal (3) 227.9 5.6 222.3 nm 227.9 5.6 222.3 nm Total Revenue 359.8 124.8 235.0 188% 359.8 92.3
Slide 5: Continuing Operations TTV and EBITDA by Segment
(1) Continuing Operations 1H18 1H17 Change $m $m $m % Group TTV (continuing operations) 55% pcp TTV Webjet (2) 642 527 115 22% B2C TTV 16.8% Zuji (inc VAH) 18 31 (14) (43%) Online Republic (2) 154 138 16 11% • Webjet TTV 21.8% LOH 146 110 36 33% Sunhotels 156 113 44 39% • Online Republic 11.
Slide 6: Summary Balance Sheet
Summary Balance Sheet Dec-17 Jun-17 Change Cash & Equivalents • $126.9 million as at 31 December $m $m $m 2017 includes $17.2 million of client funds Cash & equivalents 126.9 178.1 (51.2) • $74 million cash was used Trade & receivables 212.3 120.8 91.4 during the period to fund Other current assets
Slide 7: Seasonal Cash Flow
1H18 1H17 Cash Flow Summary $m $m $m Seasonal Cash Flow EBITDA 40.0 25.2 50.0 Change in working capital (39.8) (25.1) 40.0 Income tax paid (2.9) (1.1) 30.0 Interest (3.6) (7.8) Cash from Operating Activities (6.4) (8.8) 20.0 10.0 Capital Expenditure (12.8) (5.2) 0.0 Acquisition / Disposals (320.3) 2
Slide 8: Operating Cash Conversion 1H18
Excluding Jac Jac Impact Operating Cash Conversion 1H18 1H17 1H18 1H18 $m $m $m $m Cash flow from Operating Activities (6.4) (8.8) 4.7 (11.1) Add back: tax and interest 6.5 8.9 5.5 1.0 Total Operating cash conversion 0.1 0.1 10.2 (10.1) Add back BSP timing (1) (4.0) (0.4) (4.0) 0.0 Operating Cash Fl
Slide 9: CAPEX and Underlying EBITDA
$80m $70m $60m $50m $40m $30m $20m $10m - FY14 FY15 FY16 FY17 FY18E (1) CAPEX Underlying EBITDA (1) 1H18 Actual plus 2H18 budget Page 9
Slide 10: Capex Initiatives
1H Capex CAPEX • 1H18 CAPEX $13.0M, up 152% pcp • Excluding JacTravel, $10.5M, up 103% across a range of initiatives • Expected 2H18 spend of $12.5M ($8.8M 2H Capex excluding JacTravel) • FY18 total $25.5M ($19.3M excluding JacTravel) INITIATIVES Land & Buildings – New office and fit out for Full Ye
Slide 11: Dividends
10.00¢ 8.00¢ 7.25¢ 7.25¢ . 7.50¢ 8.00¢ 6.25¢ 6.25¢ 6.50¢ FY14 FY15 FY16 FY17 FY18 Interim Final Page 11
Slide 12: B2C Travel
Bee B2C TRAVEL LEADING ONLINE CONSUMER TRAVEL BRANDS
Slide 13: Webjet.com.au Australia / New Zealand
Page 13 WEBJET.COM.AU AUSTRALIA / NEW ZEALAND
Slide 14: Webjet Bookings 1H18
Webjet 1H18 1H17 Change Bookings 754,000 671,000 12% Flights 11% Packages (1) 86% TTV (2) $642 million $527 million 22% Revenue $66.3 million $50.2 million 32% EBITDA $25.7 million $20.4 million 26% TTV / Revenue Margin 10.3% 9.5% 1% EBITDA Margin 38.8% 40.6% (2%) Business performance continues to b
Slide 15: Webjet bookings outperforming the market
% TTV (1H18) % Bookings (1H18) 11% Year-on-year 37% 15% Webjet bookings 85% 63% International Domestic 1H17: 10% Webjet Webjet Growth Market Growth outperforming the market by more 10% 2.2% than 4 times Webjet Domestic Domestic Bookings Bookings (1) 15% 4.5% (1) Domestic Passenger numbers growth – 5
Slide 16: Webjet product initiatives launched
1 Launched physical Gift Cards in over 2,000 retail outlets nationally 2 Launched in-App price alerts to notify customers when fare prices change 3 Completed re-architecture of mobile flight search, hotels & packages sites to allow multiple site releases daily 4 Launched responsive payment pages, no
Slide 17: Flights and Ancillaries
Flights Ancilliaries 27% 19% 73% 81% 1H16 1H18 • All ancillary products (Exclusives/packages, car hire, insurance and hotels) are higher revenue margin than flights. In aggregate, ancillary products are growing faster than flights. • Since FY16, Exclusives has focused on tour offerings. In FY17, in
Slide 18: Online Republic New Zealand
ONLINE REPUBLIC NEW ZEALAND Page 18
Slide 19: Online Republic 1H18
Online Republic 1H18 1H17 Change Bookings 243,000 206,000 18% TTV (1) $154 million $138 million 11% Revenue $14.9 million $14.3 million 4% EBITDA $6.1 million $7.2 million (15%) TTV / Revenue Margin 9.7% 10.4% (1%) EBITDA Margin 40.7% 50.1% (9%) Cars and Motorhomes growing well but Cruise experience
Slide 20: Motorhomes, car hire and cruise bookings
• Motorhomes bookings • Car hire bookings growth • Cruise bookings fell 4% growth 11% over pcp 21% over pcp over pcp • Foreign language websites • Improving pricing strategies • Overall Cruise market driving bookings growth in for insurance products to growing but difficult trading several higher ma
Slide 21: WebBeds
WebBeds DIGITAL PROVISION OF HOTEL ROOMS TO GLOBAL PARTNERS () Beds lotscf sunhotels aa eS
Slide 22: WebBeds 1H18 results
A$ 1H18 1H17 (1) Change Bookings 1,054,000 322,000 227% TTV 629 million 235 million 168% Revenue 49.4 million 18.3 million 170% EBITDA 12.8 million 0.9 million nm TTV / Revenue 7.9% 7.8% 0% Margin (2) EBITDA Margin 25.9% 4.7% 21% EBITDA 4.2 million 0.9 million 380% (ex JacTravel) (1) 1H17 Restated t
Slide 23: Lots of Hotels 1H18
Lots of Hotels 1H18 1H17 Change Bookings 207,000 125,000 66% TTV $146 million $110 million 33% AMEA • TTV up 33%; 29% in base currency • Bookings growth up 66.2% Middle East - Strong growth in flat market • Continuing to gain share against #2 player • Greater proportion of higher margin supply sourc
Slide 24: Sunhotels 1H18
Sunhotels 1H18 1H17 Change Bookings 238,000 184,000 29% TTV $156 million $113 million 39% Strong growth in all markets 1H18 = TTV $156M • Bookings up 28.8% compared to European market growth of around 2% 20.9% • TTV up 39%; 34% in base currency 2.0% 35.6% • Diversification of TTV sources - increased
Slide 25: FIT Ruums 1H18
FIT Ruums 1H18 1H17 Change Bookings 113,000 2,000 nm TTV $50 million $1 million nm Strong start up performance continues • $50 million TTV to 31 December 2017 – just 13 months from start up • Asia is fastest growing B2B region in the world and we see significant growth opportunities • Decision to in
Slide 26: JacTravel 1H18
JacTravel 1H18 Proforma 1H18 (1) Bookings 447,000 732,000 TTV $232 million $400 million EBITDA $8.6 million $19 million Integration progressing to plan • Business performing in line with business acquisition plan • Majority of JacTravel 7000 incremental direct contracts now available on WebBeds • Si
Slide 27: JacTravel inventory reducing reliance on third party inventory
12% 10.4% 10% 8% % of Total TTV - 6% WebBeds 5.3% Inter 4% Company creations % 2% 0% Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 JacTravel inventory reducing reliance on third party inventory • JacTravel inventory TTV as % of total WebBeds TTV has grown from 1% to 5% since September 2017 • JacT
Slide 28: Thomas Cook Partnership
Thomas Cook Partnership 1H18 1H17 Change Bookings (‘000s) 49,000 12,000 324% TTV $44 million $12 million 284% Thomas Cook agreement continues on track • 2400 of the more than 3000 Thomas Cook contracts acquired are now available through WebBeds • WebBeds recognises no revenue for any sales made to T
Slide 29: WebBeds booking statistics
96m 104k 625k 737 AUD TTV Bookings Room Nights Destinations Booked in 103 countries Booking period from 1 June 2017 – 31 January 2018
Slide 30: WebBeds Regional Focus
Webseds WebBeds Regional Focus
Slide 31: Customer centric structure designed to deliver greater efficiency
Customer centric structure designed to deliver greater efficiency • From January 2018, WebBeds now structured around regions rather than brands • Moving to a new WebBeds global brand – Lots of Hotels, Sunhotels, FIT Ruums and JacTravel will continue to operate under the broader WebBeds umbrella • Gr
Slide 32: By Brand
By Brand 1H18 1H17 Change LOH 207 125 66% Sunhotels 238 184 29% Bookings FIT Ruums 113 2 nm (‘000s) JacTravel 447 0 nm Thomas Cook 49 12 324% LOH 146 110 33% Sunhotels 156 113 39% TTV FIT Ruums 50 1 nm (A$M) JacTravel 232 0 nm Thomas Cook 44 12 284% Page 32
Slide 33: By Region
By Region (1) 1H18 1H17 Change AMEA 279 124 125% Bookings Europe (incl TC) 590 192 208% (‘000s) Asia 185 6 nm AMEA 195 110 77% TTV Europe (incl TC) 350 121 188% (A$M) Asia 84 3 nm AMEA 5.2 1.3 300% EBITDA Europe (incl TC) 8.9 0.5 nm (A$M) Asia (1.3) (0.9) (44%) (1) Under the new regional format, cli
Slide 34: Revenue margins improved from 7.8% to 8.5%
Revenue margins improved from 7.8% to 8.5% • Overall TTV / revenue margin for the WebBeds B2B business was 7.9% in 1H18 (up from 7.8% in 1H17) reflecting the impact of Thomas Cook TTV. Excluding Thomas Cook, 1H18 TTV margin was 8.5%. • TTV margins are higher in more mature markets – highest is Europ
Slide 35: Rezchain
Webseds Rezchain A unique competitive advantage
Slide 36: Streamlining Reconciliation Process
Streamlining Improving Reconciliation Data Integrity Process Reducing Costs Page 36
Slide 37: Rezchain journey to date
Journey to date Phase 1 roll out with third • Microsoft has been an invaluable party partners underway partner from the start of 2 year • Signed 4 significant external journey partners to participate in Rezchain • Architecture and infrastructure in • Thomas Cook 4th iteration as newer features and •
Slide 38: FY18 YTD
J webjet limited FY18 YTD — i
Slide 39: Total Booking Growth
Total Booking Growth: • B2C 4 yr CAGR = 20% • B2B 4 yr CAGR = 156% • B2C+B2B = 41% 1H14 1H15 1H16 1H17 1H18 Webjet Webjet Webjet Webjet Webjet Lots of Hotels Lots of Hotels Lots of Hotels Lots of Hotels Lots of Hotels Sunhotels Sunhotels Sunhotels Sunhotels Online Republic Online Republic FIT Ruums
Slide 40: FY18 EBITDA Guidance
FY18 EBITDA Guidance • On track to deliver more than $3 billion TTV • FY18 EBITDA guidance of at least $80 million inclusive of JacTravel acquisition costs • Noting no recognition of Thomas Cook revenue (while expenses recognised) and only a partial year contribution from JacTravel FY18 – FY20 booki
Slide 41: Thank You
webjet limited Thank You Webseds jotscthotels’ © WBisunhotels. () “RWS JacTravel
Slide 42: Appendix
webjet limited Appendix Webseds jotscthotels’ © WBisunhotels. () “RWS JacTravel
Slide 43: Proforma
Proforma Underlying Continuing Statutory Result Continuing Performance Operations Operations • 1H18 includes 4 months • 1H18 excludes • Underlying Performance • Continuing Operations for of JacTravel and $1.0m JacTravel and for 1H17 and 1H18 1H17 and 1H18 costs associated with associated acquisition
Slide 44: Statutory Result, Underlying and Proforma
Proforma Statutory Underlying Continuing 1H18 vs 1H17(1) Continuing Result Performance (2) Operations Operations(3) (includes 4 months (Underlying (Continuing (excludes JacTravel, JacTravel, proceeds of Performance Operations, proforma proceeds of sale of Zuji and sale of Zuji and including 4 months
Slide 45: 1H18 Results Comparison
Statutory Result Underlying Performance (excl Jac) Continuing Operations (2) Proforma Continuing Operations (3) 1H18 1H17 Change 1H18 1H17 Change 1H18 1H17 Change 1H18 1H17 Change $m $m $m % $m $m $m % $m $m $m % $m $m $m % TTV 1,443 1,025 418 41% 1,211 932 280 30% 1,443 932 511 55% 1,611 932 680 73