Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — Shareholder Meeting (October 2014)
21 slides from Corporate Travel Management's shareholder meeting presentation, Oct 29, 2014
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 29th October 2014 JAMIE PHEROUS, MANAGING DIRECTOR Celebrating 20 Years 1994 2014
Slide 2: Disclaimer
Disclaimer For personal use only This document is not a prospectus under Australian law and does not constitute an offer, invitation or recommendation to subscribe for or purchase any security or financial product and neither this document nor anything contained in it shall form the basis of any con
Slide 3: Agenda
For personal use only Agenda: • CTM Footprint and Strategy • Trading Update • Acquisition Update
Slide 4: Years of Consecutive TTV Growth
20 Years of Consecutive TTV Growth 2200 For personal use only *2200 2000 1800 CTM established May 1994 (operating over 20 years) 1600 Listed on the ASX December 2010 1400 1384 1200 TTV $m 1000 800 884 600 682 400 502 352 316 200 235 16 19 29 42 56 81 140 0 00/01 01/02 02/03 03/04 04/05 05/06 06/07 0
Slide 5: Award Winning
Award Winning For personal use only 2014 Best National Travel 2014 Best Travel Agency Management Company Hong Kong Winner 9 of the last 11 years 5 of the last 7 years Page: 5
Slide 6: Strategy
Strategy Aspirations: For personal use only To be in every major region (ANZ, North America, Asia, Europe) with potential for emerging markets where suitable ANZ, continues to be a “fortress” of continued double digit profit growth that underpins global expansion strategy Win market share via
Slide 7: Unique regional value proposition
For personal use only Europe (plan by end of FY15) North America Asia 370 700 Employees Employees ANZ 450 Employees Unique regional value proposition Operating out of 37 cities in 15 countries Over 1500 employees Forecast FY15 TTV $2.2bn. Powerhouse in Asia Pac region underpinned by uniform values:
Slide 8: EBITDA Profit Contribution by Region
EBITDA Profit Contribution by Region For personal use only FY15: Guidance $38-$41m FY14: $28.9m FY13: $19.6m Other Other 13% 34% Other ANZ 50% 50% ANZ 66% ANZ 87% Building diversity through offshore Expansion FY15 off-shore profit contribution expected to be circa 50% before any future acquisitions
Slide 9: FY15 Initiatives
FY15 Initiatives For personal use only Page: 9
Slide 10: Technology
Technology • CTM’s industry-leading SMART technology is customer For personal use only focused to: • Reduce client operating costs • Manage the safety of their travellers • Maximise user experience • Maximise the effectiveness of their travel programs • SMART technology progressively being rolled ou
Slide 11: Agenda
For personal use only Agenda: • CTM Footprint and Strategy • Trading Update • Acquisition Update
Slide 12: Trading Update and Guidance
Trading Update and Guidance For personal use only Upgraded guidance: • FY15 underlying EBITDA guidance expected to be above $41m (previously $38-$41m) • Guidance reflects 100% contribution from Asia (CTM owns 75.1%) • Guidance assumes no economic shocks, continuation of USA acquisition integration s
Slide 13: ANZ Trading Update
ANZ Trading Update For personal use only New • Strong momentum from FY14 wins • Continue to win new business creating a solid FY15 Clients • Building market share Client • 1QFY15 client activity trading up for first time since Q2FY11 Activity • The majority of Top 20 clients trading higher than p.c.
Slide 14: North America Trading Update
North America Trading Update • Strong start in new client wins including global client segment For personal use only Clients • Sales and marketing investment expected to accelerate under one brand across 17 cities, 7 states into CY15 People and • Building upon local accountability and empowerment ac
Slide 15: Asia Trading Update
Asia Trading Update For personal use only • Key focus upon scalable corporate organic growth Clients • Already won and working on a number of regional tenders • Client retention strong through integration phase • Strong Management team in place with skin in the game People • Westminster recently awa
Slide 16: Agenda
For personal use only Agenda: • CTM Footprint and Strategy • Trading Update • Acquisition Update
Slide 17: Merger and Acquisition Discipline
Merger and Acquisition Discipline CTM’s acquisition strategy has remained consistent across all acquisitions: For personal use only Strong discipline in selection criteria – looking for the “1 in 100” Alignment - “Skin in the game” for leaders and/or senior management Focus on financial and pe
Slide 18: North America Acquisition Update: USTravel
North America Acquisition Update For personal use only USTravel: Acquisition completed 1 July 2014 @ 5x Dec13 NPBT USD$1.05m Extends North American footprint to the Pacific North West region Update: Tracking above our expectations for 1QFY2015 Being part of CTM has contributed to winning and
Slide 19: North America Acquisition Update: Avia International
North America Acquisition Update For personal use only Avia International: Acquisition completed 1 September 2014 @5.5x Dec13 NPBT USD$750k Bolsters presence in one of the largest travel markets in the USA (Houston), the centre of the US energy industry Update: Becomes our Centre of Excellence
Slide 20: Future Acquisitions
Future Acquisitions For personal use only UK/Europe: • Currently investigating a number of options, plan to have a solution by end of FY15 • Key plank of our global strategy to have comprehensive coverage in the key global corporate markets • Enables CTM to genuinely compete in the global/regional c
Slide 21: Thank you
For personal use only Thank you www.travelctm.com
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