Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Shareholder Meeting (November 2023)
33 slides from Flight Centre Travel's shareholder meeting presentation, Nov 15, 2023
Slide 1: FLT: Annual General Meeting
FLT: Annual General Meeting November 15, 2023 This announcement has been approved by FLT’s Board
Slide 2: Acknowledgement of Country
Acknowledgement of Country We acknowledge the Traditional Owners of our Country throughout Australia and recognise their ongoing connection to lands, waters and communities. We pay our respects to Aboriginal and Torres Strait Islander Elders past, present and future, and support the continuation of
Slide 3: Today's Agenda
TODAY’S AGENDA 1 2 3 4 Chairman’s Address CEO’s Address Resolutions General Questions Gary Smith Graham “Skroo” Turner
Slide 4: How to ask a question
How to ask a question • To ask a written question select the Q & A icon • Select the topic your question relates to from the drop-down list • Type your question in the text box and press the send button • To ask a verbal question follow the instructions below the broadcast window. 4 | FLT
Slide 5: How to vote
How to vote • When the poll is open, select the vote icon at the top of the screen Items of Business • To vote, select either For, Against or Abstain 2A Re-elect Mr Sam Sample as a Director FOR AGAINST ABSTAIN • You will see a vote confirmation 2B Re-elect Ms Jane Citizen as a Director • To change o
Slide 6: Chairman's Address: Gary Smith
Chairman’s Address: Gary Smith
Slide 7: FY23: Results & highlights
FY23: Results & highlights Financial Snapshot TTV: $22b – almost 115% year-on year (YOY) growth Sharp TTV Recovery Trajectory ✓ • • 2nd strongest full year result achieved (behind FY19) Record corporate TTV of $11b 25.0 20.1 21.8 23.7 21.9 19.3 20.0 17.6 ‒ 96% above prior year 16.1 15.3 ‒ 24% above
Slide 8: FY23: Executing global strategies
FY23: Executing global strategies Financial Operational ✓ Cost Control: Maintaining a ✓ Corporate Business Growing to Win: structurally lower cost base (circa 75% Outpacing industry recovery by of pre-COVID) while investing in future delivering record TTV & record growth drivers – people, products,
Slide 9: Corporate: Outpacing industry recovery
Corporate: Outpacing industry recovery Growing to win 1 • Surpassed previous TTV record by 23.6% with new milestones established in all 4 geographic regions: − EMEA +59% on previous record − Asia +24% − Americas +15.6% − ANZ +10.5% • New account pipeline (circa $2.6b during FY23) more than offsettin
Slide 10: Leisure: Transformed business recovering rapidly
Leisure: Transformed business recovering rapidly Strong TTV growth, returning to profit • $10b FY23 TTV, up 162% on FY22, with Leisure generating 46% of Group FY23 TTV • Record contributions from luxury, leisure online & independent agency businesses • 2H momentum - generated $129m underlying EBITDA
Slide 11: FY23: Strong balance sheet
FY23: Strong balance sheet FY23 Analysis • Circa $1.4b cash and investments at 30 June 2023. • Client creditors has increased due to higher turnover, plus the acquisition of Scott Dunn. • Contract assets includes volume incentives, which have increased with TTV., that were earned during the year but
Slide 12: New capital allocation framework in place
New capital allocation framework in place Maximising shareholder returns & long-term growth while balancing a conservative capital structure underpins FLT’s capital allocation framework Portfolio growth Business reinvestment Transformation & optimisation 2% Underlying PBT margin by 2025 M&A opportun
Slide 13: Investment in Key Growth Drivers
Investment in Key Growth Drivers People • 2500 added to FTE workforce during FY23 • Now fully staffed in corporate & recruiting normally in leisure Network • Enhancements to increase scale, brand & geographic diversity & improve customer access to businesses & services • Acquisitions (Scott Dunn and
Slide 14: Leveraging AI to enhance customer experience
Leveraging AI to enhance customer experience 14 | FLT
Slide 15: Environment Governance
Flight Centre Travel Group has a sustainability vision of “preserving and enriching a world worth seeing." Our purpose is to open up the world for those who want to see. As one of the world’s largest travel retailers and corporate travel managers, we recognise our responsibility to preserve the plac
Slide 16: Highly experienced leadership team in place
Highly experienced leadership team in place 220 years of combined travel industry experience with circa 20 years average tenure within FLT Adam Campbell James Kavanagh Charlene Leiss Steve Norris Chief financial officer CEO - Leisure MD - Americas MD - EMEA Skroo Chief executive officer Chris Galant
Slide 17: CEO's Address: Graham Turner
CEO’s Address: Graham Turner 17 | FLT
Slide 18: FY24: Strong start to new fiscal year
FY24: Strong start to new fiscal year • Further TTV growth – 2nd strongest start to a year Full industry recovery expected in CY24 & passenger numbers set • Continued margin improvement – delivering strong 1Q profit to double by 2040 (3.4% CAGR) [Source: IATA Global Outlook for uplift Air Transport
Slide 19: FY24: 1Q result overview
FY24:1Q result overview • $6b in TTV – more than $900m (c.20%) increase v PCP & just below record FY20 1Q result ($6.2b) • Strong revenue uplift (38%) – well above TTV growth & leading to 160bps revenue margin improvement to 11.2% • Underlying cost margin (excluding touring cost of sales) fairly fla
Slide 20: FY24: 1Q highlights
FY24: 1Q highlights Our Strategic Factors Enter your subhead line here Corporate TTV again @ record levels • Topped $3.1b & again outpaced broader industry recovery • Overall industry recovery rate circa 72% (based on MIDT data for 1Q 2024 as a percentage of 1Q FY19) Organic growth driven • High cus
Slide 21: Other Segment: Key Components
Other Segment: Key Components 01 Unallocated head office expenses Travel services businesses – hotel 02 management, touring, destination management 03 Avmin (air charter) 04 Pedal Group cycle JV 05 GoGo (US Wholesale) 06 TP Connects (airfare aggregation) 21 | FLT
Slide 22: FY24: Guidance & outlook
FY24: Guidance & outlook • Currently expect underlying full year PBT between $270m & $310m • Mid-point broadly in line with consensus & represents 175% growth on FY23 • 2Q PBT will be below 1Q – reflects seasonality (traditional decrease in bookings during Christmas holiday period ahead of increase
Slide 23: Travel's resilience
Travel’s resilience Downturns have tended to be short-lived & have been followed by sharp uplifts Monthly Outbound Departures - GFC Short-Term Resident Departures - SARS/Iraq War 800,000 600,000 700,000 500,000 600,000 400,000 500,000 400,000 300,000 # # 300,000 200,000 200,000 100,000 100,000 - - J
Slide 24: Corporate: Key result drivers
Corporate: Key result drivers Continued organic sales growth Investment in leading Sales & Marketing Machine (Digital High customer retention rates Secure pipeline of new TTV from recent account wins marketing, CRM, BDMs) Greater efficiency/Scale benefits Continuing to reduce costs per transaction -
Slide 25: Leisure: Key result drivers
Leisure: Key result drivers Global expansion of core offering Physical Expansion Start Up Grow winning models in core markets (consultants, teams, independent agents) Cruiseabout B2C & CruiseHQ wholesale B2B Investing in customers Digital Experience Products Customer Loyalty Solutions (Omni channels
Slide 26: New products
New products Click & Deliver & Click & Collect offerings just introduced in Travel Money New services appealing to younger demographic – expanding Travel Money's customer base Being used predominantly 25-45-year-old age group In-store customer typically aged 55+ 26 | FLT
Slide 27: FY25: Continuing to target 2% underlying PBT margin
FY25: Continuing to target 2% underlying PBT margin • Aspirational target set during the pandemic – most recently achieved during FY15 FLT Financial Performance - FY13 to Q1FY24 25,000 5.0% • Clear path in place toward target through revenue margin improvement & lower 22,500 3.0% 20,000 cost margins
Slide 28: Today's Resolutions
Today’s Resolutions
Slide 29: Resolution 1: Re-election of John Eales
Resolution 1: Re-election of John Eales The number of proxies received for the resolution is: Decision Votes % 124,600,948 98.68% For 1,490,406 1.18% Against 170,244 0.14% Open 111,430 Abstain 29 | FLT
Slide 30: Resolution 2: Remuneration Report adoption
Resolution 2: Remuneration Report adoption The number of proxies received for the resolution is: Decision Votes % 106,745,043 97.4% For 2,534,522 2.31% Against 326,706 0.29% Open 166,347 Abstain 30 | FLT
Slide 31: Resolution 3: Refresh Placement Capacity
Resolution 3: Refresh Placement Capacity The number of proxies received for the resolution is: Decision Votes % 98,242,782 92.56% For 7,720,028 7.27% Against 171,836 0.17% Open 18,921,070 Abstain 31 | FLT
Slide 32: End of Presentation: Questions?
END OF PRESENTATION QUESTIONS?
Slide 33: Appendix 1: Glossary
Appendix 1: Glossary ABV = Average booking value PCP = Prior corresponding period Avg = Average PPE = Property, plant & equipment BDM = Business development manager Profit margin = PBT as a percentage of TTV BPS = Basis points Revenue margin = Revenue as a percentage of TTV CRM = Customer relationsh
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