Web Travel Group Limited · ASX:WEB
Web Travel — FY2019 Earnings Presentation
37 slides from Web Travel's earnings presentation, Aug 22, 2019
Slide 1: FY19 Results Presentation
WEBJET LIMITED FY19 RESULTS PRESENTATION JOHN GUSCIC, Managing Director TONY RISTEVSKI, Chief Financial Officer 22 August 2019 B2C TRAVEL B2B HOTELS Page 1
Slide 2: Ongoing Record Performance
$$3.8 3 BN BN $366.4 $291 MM $$ 124.6 87.4 MM Ongoing TTV Revenue Revenue (2) EBITDA Record Up Up Up54% Up 71% Performance (1) Up 54% 27% 26% 43% Demonstrating Profitable Global 98% Growth $ 43.2 81.3 M $ 43.2 M Adjusted NPAT NPAT (before AA3) Cash Up Up 30% 46% Conversion Up 30% (4) (1) Shows resul
Slide 3: FY19 Key highlights
WebBeds is now the largest and fastest growing business • In just 6 years since start-up, delivered $2.2 billion TTV and $67.3 million EBITDA • The clear #2 global B2B player and fastest growing B2B business in the world • Organic EBITDA up 30% FY19 • Focus on delivering profitable growth – TTV marg
Slide 4: EBITDA
WebBeds is now the largest business by EBITDA (1) EBITDA $160M $124.6M $140M more than $120M doubled in 2 $100M $87.4M $67.3M years $80M $51.0M $27.2M $0.4M $13.3M $12.5M $60M $15.0M $40M $58.7M $60.8M $20M $43.1M $0M ($7.5M) ($11.7M) ($15.9M) ($20M) FY17 FY18 FY19 (1) EBITDA is for Continuing Opera
Slide 5: Profitable growth
(1) EBITDA Margin Profitable growth EBITDA margins continue to increase (1) For Continuing Operations - refer to page 35 for (2) full description (2) B2C is Webjet OTA and Online Republic combined Page 5
Slide 6: WebBeds
B2B HOTELS WebBeds DIGITAL PROVISION OF HOTEL ROOMS TO GLOBAL PARTNERS Page 6
Slide 7: WebBeds delivering profitable growth
A$ FY19 FY18 Change Bookings ('000s) 3,444 2,277 51% TTV 2,154 million 1,354 million 59% Revenue (1) 184.5 million 114.0 million 62% WebBeds EBITDA 67.3 million 27.2 million 148% delivering TTV / Revenue Margin (2) 8.6% 8.4% 15bps TTV / Revenue Margin (excl TC) 9.4% 9.2% 23bps profitable EBITDA Marg
Slide 8: WebBeds Europe Highlights
A$ FY19 FY18 Change Bookings ('000s) 1,628 1,296 26% TTV 1,122 million 775 million 45% WebBeds EBITDA 35.7 million 17.6 million 102% Europe Outstanding EBITDA in a difficult market environment Highlights • Strong growth despite ongoing impact of record hot 2018 European summer, uncertainty surroundi
Slide 9: WebBeds Europe: Thomas Cook partnership update
A$ FY19 FY18 Change Bookings ('000s) 214 142 50% TTV 197 million 116 million 70% WebBeds Europe Thomas Cook investment has delivered in full on our sourcing expectations • Over 3,000 direct contracts acquired from Thomas Cook are available to all WebBeds customers Thomas • Sales of these direct cont
Slide 10: WebBeds AMEA Highlights
A$ FY19 FY18 Change Bookings ('000s) 952 571 67% TTV 623 million 385 million 62% WebBeds EBITDA 25.8 million 11.6 million 123% AMEA Middle East & Africa – ongoing growth in a difficult market • Market share continues to improve – driven by DOTW and organic growth Highlights • Now the regional market
Slide 11: WebBeds Asia Pacific Highlights
A$ FY19 FY18 Change Bookings ('000s) 863 410 111% TTV 409 million 195 million 110% WebBeds EBITDA 5.8 million (2.1 million) 380% Asia FY17 and FY18 investments now delivering EBITDA Pacific • Now the #2 player in the region – operating in 17 countries • Strong EBITDA growth in 2H19 Highlights • 1H19
Slide 12: WebBeds Umrah Holidays International
Significant new market opportunity WebBeds • • The Kingdom of Saudi Arabia has a vision to welcome 30 million religious visitors a year by 2030 Opportunity to leverage the WebBeds global distribution network and strong partnership with hotels in Umrah the Kingdom of Saudi Arabia to offer a range of
Slide 13: DOTW Successful integration
DOTW Successful integration into WebBeds regional structure; cost synergies tracking ahead of plan • Acquisition announced 5 November 2018 and completed on 21 November 2018 Successful • Since 1 January 2019, DOTW has been integrated into the WebBeds regional structure (6 weeks post completion) integ
Slide 14: WebBeds FY20 EBITDA opportunities
We expect between $27 to $33 million additional EBITDA in FY20 (revised from at least $40 million WebBeds at 1H19) • In addition to organic growth in our existing WebBeds businesses, we expect the following to deliver FY20 EBITDA between $27 - $33 million additional EBITDA in FY20 opportunities • DO
Slide 15: WebBeds FY22 "8/4/4" target
“8/4/4” profitability target for FY22 WebBeds • By FY22 we believe we can deliver “8/4/4” – 8% revenue/TTV and 4% costs/TTV to drive 4% EBITDA/TTV FY22 “8/4/4” • Equating to 50% EBITDA margin target • IT platforms • We continue to evaluate and assess options in relation to the various B2B platforms,
Slide 16: Webjet.com.au
WEBJET.COM.AU AUSTRALIA / NEW ZEALAND Page 16
Slide 17: Driving margin improvement in a difficult market
A$ FY19 FY18 Change Bookings ('000s) 1,565 1,549 1% Driving TTV 1,378 million 1,345 million 2% margin Revenue 150.5 million 145.6 million 3% improvement EBITDA 60.8 million 58.7 million 4% in a difficult TTV / Revenue Margin 10.9% 10.8% 10bps EBITDA Margin 40.4% 40.3% 5bps market Solid EBITDA perfor
Slide 18: Flight bookings continue to outperform the market
Webjet OTA is now 50% of the entire OTA flight market Market Growth Flight Webjet Growth bookings 1.0% 0.8% 0.4% Webjet Domestic Domestic Year-on-year continue to Webjet flight Bookings (2) Bookings (3) bookings (1) outperform 6.8% 4.0% the market Webjet International Bookings (4) International Book
Slide 19: Brand strength driving higher TTV margin
• TTV margin increase coming through Key FY19 initiatives Brand across both flights and ancillary products • Continued growth in size and scale is strength helping deliver value to both airlines and other partners • Introduction of HSBC Interest Free – letting customers book now and pay later • Reco
Slide 20: Online Republic
ONLINE REPUBLIC Global Marketplace Page 20
Slide 21: Improved TTV margins but 2H19 impacted by external events
A$ FY19 FY18 Change Bookings ('000s) 496 501 1% Improved TTV TTV 299 million 313 million 4% margins Revenue 31.4 million 31.5 million 0% but 2H19 EBITDA 12.5 million 13.3 million 6% impacted by TTV / Revenue Margin 10.5% 10.1% 41bps external EBITDA Margin 40.0% 42.1% 217bps events Strategy to focus
Slide 22: Cars performed well but Motorhomes and Cruise under-performed
MOTORHOMES CAR HIRE CRUISE Cars performed • Strong 1H19 bookings growth • Yield improved on flat • Cruise continued to but 2H19 bookings fell bookings growth in line with underperform in FY19 well but significantly following focus on profitable bookings • Constrained capacity in the Christchurch inc
Slide 23: Corporate
Corporate Page 23
Slide 24: Corporate Division
EBITDA (A$M) FY19 FY18 Change B2B 67.3 million 27.2 million 148% Corporate B2C (1) 73.3 million 72.0 million 2% Division Corporate (15.9 million) (11.7 million) 36% Total EBITDA 124.6 million 87.4 million 43% • FY19 Corporate costs for Continuing Operations include: • FX losses of $2.2 million ($1.8
Slide 25: FY19 Financial Highlights
FY19 Financial Highlights Page 25
Slide 26: FY19 Financial Highlights
FY19 Financial Highlights (1) FY19 vs FY18 Statutory Result Continuing Operations Increased (includes one-offs) (excludes one-offs) EPS (before AA) TTV $3,831m 27% $3,831m 27% Up 31% Revenue (2) $366.4m 26% $366.4m 26% EBITDA $123.1m 43% $124.6m 43% EBITDA Margin 33.6% 395bps 34.0% 398bps NPAT (befo
Slide 27: Strong Balance Sheet
Cash & Equivalents Stable Jun-19 Jun-18 Change Summary Balance Sheet • $211.4 million as at 30 June 2019 $m $m $m includes $29.2 million of client funds Cash & equivalents 211.4 190.8 20.6 Strong Trade & receivables Other current assets 341.2 26.9 261.0 18.2 80.2 8.7 • $190.8 million as at 30 June 2
Slide 28: Cash Flow
FY19 FY18 FY19 FY18 Cash Flow Summary Operating Cash Conversion $m $m $m $m Cash Flow EBITDA Change in working capital Income tax paid 123.1 (52.6) (12.3) 86.3 46.2 (6.6) Cash flow from Operating Activities Add back: tax and interest Add back: Delay in Supplier Payments from FY18 45.7 24.8 53.0 120.
Slide 29: CAPEX Summary
CAPEX Summary $27.9M $32.7M FY18 B2C B2B DOTW FY19 • FY19 CAPEX was $32.7 million, up 17% on pcp largely due to DOTW • Assuming full year ownership of JacTravel in FY18 and excluding DOTW, underlying CAPEX was down 4% • FY19 B2C CAPEX spend down on pcp due to property upgrade in FY18 • FY20 CAPEX ex
Slide 30: CAPEX
$140M 100% CAPEX $120M $124.6M Declining $100M 80% spend $87.4M 60% $80M relative to EBITDA $60M $51.0M 40% 34.3% $40M 31.9% 26.2% 20% $20M $0M 0% FY17 FY18 FY19 EBITDA (Continuing Operations) CAPEX as % of EBITDA Trend expected to continue in FY20 Page 30
Slide 31: Final Dividend (fully franked)
Final Dividend (fully franked) 13.5 CENTS 13.50c PAID 10.00c 12.00c Full year 8.00c dividend up 10% 6.50c 7.50c 8.00c 8.50c FY16 FY17 FY18 FY19 Interim Final Future dividend increases to be lower than EPS growth in order to retain cash for future growth opportunities Page 31
Slide 32: FY20 Outlook
A strong start to FY20 – 6 weeks trading to 12 August 2019 • WebBeds – TTV up more than 50% over reported pcp (excluding Thomas Cook) FY20 • Webjet OTA – TTV up 9% • Online Republic – TTV up 4% Outlook • Strong pipeline of acquisition opportunities WebBeds • We continue to see significant opportunit
Slide 33: Thank You
Thank You B2C TRAVEL B2B HOTELS Page 33
Slide 34: Appendix
Appendix B2C TRAVEL B2B HOTELS Page 34
Slide 35: Description of Result Categories
Description of Result Categories Statutory Result Continuing Operations • FY19 includes 7 months of DOTW, acquisition and • FY19 excludes acquisition and integration costs ($15.2M), integration costs ($15.2M), reduction in earnout liability reduction in earnout liability ($18.5M) and debt ($18.5M) a
Slide 36: Financial Results
Financial Results Statutory Result Continuing Operations (1) FY19 FY18 Change FY19 FY18 Change $m $m $m % $m $m $m % TTV 3,831 3,012 819 27% 3,831 3,012 819 27% Revenue 366.4 291.0 75.4 26% 366.4 291.0 75.4 26% Revenue as Principal (2) - 470.6 (470.6) (100%) - 470.6 (470.6) (100%) Total Revenue (3)
Slide 37: Segment Summary Continuing Operations
Group TTV (continuing operations) 27% pcp FY19 FY18 Change Continuing Operations (1) $m $m $m % B2C TTV 1% • Webjet TTV 2% TTV Webjet 1,378 1,345 33 2% • Online Republic 4% Online Republic 299 313 (13) (4%) AMEA 623 385 239 62% B2B TTV 59% Europe (incl TC) 1,122 775 347 45% Asia 409 195 21