Slide 1: Webjet Limited FY18 Results Presentation
WEBJET LIMITED FY18 RESULTS PRESENTATION JOHN GUSCIC, Managing Director TONY RISTEVSKI, Chief Financial Officer 23 August 2018 B2C TRAVEL B2B HOTELS Page 1
Slide 2: FY18 Financial highlights
$ 3 BN $291 M TTV FY18 Revenue Financial Up 54% Up 54% highlights (1) $ 87.4 M 55.7 M $ 43.2 EBITDA NPAT (before AA) Up 71% Up 63% Up 30% (1) For the Continuing Operations- refer to page 33 for full description Page 2
Slide 3: FY18 Key highlights
Record financial performance • For the continuing operations FY18 • $87.4 million EBITDA – up 71% • $55.7 million NPAT (before AA) – up 63% Key • 30.0% EBITDA margin – up 303bps highlights Booking CAGR continues to increase • 4-Year Total Booking CAGR - 44% • 4-year Organic Booking CAGR - 28% Scale
Slide 4: Webjet.com.au Australia / New Zealand
WEBJET.COM.AU AUSTRALIA / NEW ZEALAND Page 4
Slide 5: Ancillary products and scale driving EBITDA growth
A$ FY18 FY17 Change Ancillary Bookings ('000s) TTV (1) 1,549 1,404 +10% products 1,345 million 1,176 million +14% Revenue 145.6 million 121.2 million +20% and scale EBITDA 58.7 million 43.1 million +36% driving TTV / Revenue Margin 10.8% 10.3% +52bps EBITDA EBITDA Margin 40.3% 35.6% +473bps growth •
Slide 6: Flight bookings continue to outperform
Webjet OTA is now 50% of the entire OTA flight market Flight Webjet Growth Market Growth Bookings 9% 8% 2.5% Webjet Domestic Domestic continue to Year-on-year Bookings (1) Bookings Webjet flight outperform bookings 14% 4.1% in line with Webjet International International Bookings (2) Bookings growth
Slide 7: Brand strength driving increased sales across entire product range
Ancillary revenues becoming more meaningful Brand Flights Ancilliaries strength 27% driving 20% 73% increased 80% sales across FY16 FY18 entire • product Technology improvements facilitating greater cross-sell across ancillary products • In aggregate, ancillary products are growing faster than fligh
Slide 8: Online Republic
ONLINE REPUBLIC Global Marketplace Page 8
Slide 9: Improved 2H reflects strategy to reduce acquisition costs and increase TTV margins
A$ FY18 FY17 Change Bookings ('000s) 501 446 +12% TTV (1) Improved 2H 313 million 292 million +7% Revenue 31.5 million 29.9 million +5% reflects EBITDA 13.3 million 15.0 million -11% strategy to TTV / Revenue Margin 10.1% 10.3% -18bps reduce EBITDA Margin 42.1% 50.0% -792bps acquisition costs and •
Slide 10: Strong growth in Motorhomes and Cars offset by Cruise
MOTORHOMES CAR CRUISE Strong HIRE growth in • Motorhomes bookings growth 16% yoy • Car hire bookings growth 14% yoy • Cruise bookings fell 6% yoy Motorhomes • Lower growth in Australia/NZ • Strong market • Awarded CLIA NZ “cruise and Cars source markets (up 5%) offset by significant growth in outper
Slide 11: B2B Hotels WebBeds
B2B HOTELS WebBeds DIGITAL PROVISION OF HOTEL ROOMS TO GLOBAL PARTNERS Page 11
Slide 12: WebBeds strategy delivering results
A$ FY18 FY17 Change Bookings ('000s) 2,277 726 +214% WebBeds TTV Revenue (1) 1,354 million 114.0 million 482 million 37.6 million +181% +203% Strategy EBITDA 27.2 million 0.4 million +7,649% delivering TTV / Revenue Margin (2) 8.4% 7.8% +61bps results TTV / Revenue Margin (excl TC) 9.2% 8.3% +93bps
Slide 13: Multi-supply aggregation strategy
Multi-supply aggregation • Full global inventory offering strategy • Highly competitive pricing • User-friendly technology Size is a competitive advantage FY18 FY17 Directly contracted hotels 21,000+ 10,000 Third party suppliers 60 30 Hotel chain connections 25 15 Page 13
Slide 14: WebBeds regional overview
Region (1) FY18 FY17 Change WebBeds AMEA 571 273 +109% Bookings Europe (incl TC) 1,296 387 +235% ('000s) Regional Asia 410 65 +530% overview AMEA 385 214 +80% TTV Europe (incl TC) 775 241 +221% (A$M) Asia 195 27 +620% Since 1 January 2018, WebBeds has been structured AMEA 11.6 2.7 +335% around regio
Slide 15: WebBeds AMEA highlights
A$ FY18 FY17 Change Bookings ('000s) 571 273 +109% TTV 385 million 214 million +80% WebBeds EBITDA 11.6 million 2.7 million +335% AMEA Middle East & Africa – continued strong bookings growth in flat market Highlights • TTV up 43%, 31% in base currency • Organic bookings up 19%. Underlying market gro
Slide 16: WebBeds Europe highlights
A$ FY18 FY17 Change Bookings ('000s) 1,296 387 +235% TTV 775 million 241 million +221% WebBeds EBITDA 17.6 million 0.9 million +1,782% Europe Strong bookings growth and ongoing diversification of TTV sources Highlights • Excluding TC, TTV up 208%; 186% in base currency • Organic bookings up 65%. Und
Slide 17: WebBeds Europe Thomas Cook partnership
A$ FY18 FY17 Change Bookings ('000s) 142 28 +414% TTV 116 million 27 million +326% WebBeds Europe Thomas Cook agreement continues on track • The majority of the 3,000 direct contracts acquired from Thomas Cook are now available through Thomas WebBeds • WebBeds recognises no revenue for any sales mad
Slide 18: WebBeds Asia Pacific highlights
A$ FY18 FY17 Change Bookings ('000s) 410 65 +530% TTV 195 million 27 million +620% WebBeds EBITDA (2.1 million) (3.2 million) +37% Asia Asia Pacific remains the fastest growing B2B region with significant potential Pacific • TTV up 620%; 579% in base currency • Organic bookings up 318%. Underlying m
Slide 19: JacTravel inventory driving competitive advantage
Increasing Relevance of JacTravel Inventory JacTravel inventory driving competitive advantage Direct contracts are a key component of our global distribution network • TTV from JacTravel inventory sold to non-JacTravel clients as % of total WebBeds TTV has grown from 1% to 9% since September 2017 •
Slide 20: Corporate
Corporate Page 20
Slide 21: Corporate Division
EBITDA (A$M) FY18 FY17 Change B2C 72.0 million 58.1 million +24% B2B 27.2 million 0.4 million +7,649% Corporate Corporate (11.7 million) (7.5 million) -56% Division Total EBITDA 87.4 million 51.0 million +71% • FY18 Corporate costs for Continuing Operations include: • FX losses of $2.2 million (comp
Slide 22: FY18 Financial Highlights
FY18 Financial Highlights Page 22
Slide 23: FY18 Financial Highlights
FY18 Financial Highlights (1) FY18 vs FY17 Statutory Result Continuing Operations (includes proceeds of sale (excludes proceeds of sale of Zuji and one-offs) of Zuji and one-offs) TTV $3,012m 47% $3,012m 54% Total Revenue $761.6m 224% $761.6m 272% Revenue (2) $291.0m 33% $291.0m 54% EBIT
Slide 24: Organic Bookings Growth Continues to Increase
Organic Bookings Growth Continues to increase Total Booking Growth: • B2C 4 yr CAGR = 21% • B2B 4 yr CAGR = 147% • B2C+B2B = 44% FY14 FY15 FY16 FY17 FY18 Webjet Webjet Webjet Webjet Lots of Hotels Webjet Lots of Hotels Lots of Hotels Lots of Hotels Sunhotels Lots of Hotels Sunhotels Sunhotels Sunhot
Slide 25: Balance Sheet Incorporating JacTravel
Cash & Equivalents • $190.8 million as at 30 June 2018 Jun-18 Jun-17 Change includes $25.9 million of client Summary Balance Sheet $m $m $m funds • $74 million of existing cash Balance reserves was used during Cash & equivalents 190.8 178.1 12.6 the period to fund the Trade & receivables 261.0 117.4
Slide 26: Cash Flow and Cash Conversion
FY18 FY17 FY18 FY17 Cash Flow Summary Operating Cash Conversion $m $m $m $m Cash Flow EBITDA 86.3 51.0 Cash flow from Operating Activities Add back: tax and interest 120.8 11.6 34.8 12.4 and Cash Change in working capital 46.2 (3.8) Income tax paid (6.6) (12.1) Total Operating cash conversion 132.5
Slide 27: CAPEX Summary
Full Year Capex CAPEX Summary 27.9 17.5 - FY17 Organic JACTravel Corporate Land & Buildings Investment FY18 CAPEX INITIATIVES • FY18 CAPEX $27.9M, up 60% on pcp Land & Buildings – New office and fit out for • Excluding JacTravel and one off Online Republic; new fit out for Webjet and Software purcha
Slide 28: Final Dividend 12 Cents Paid Fully Franked
Final Dividend 12 CENTS PAID FULLY FRANKED 10.00c 12.00c . 8.00c 7.25c 7.50c 8.00c 6.25c 6.50c FY15 FY16 FY17 FY18 Interim Final Page 28
Slide 29: FY19 YTD Update
Update on July trading • B2C FY19 • Webjet TTV up 13% • Online Republic TTV up 3% • YTD B2B • WebBeds TTV up 167% UPDATE Reiterating bookings growth targets • We continue to see significant growth opportunities in both the B2C and B2B markets and reiterate our medium term bookings growth targets for
Slide 30: Q&A
Q&A B2C TRAVEL B2B HOTELS Page 30
Slide 31: Thank You
Thank You B2C TRAVEL B2B HOTELS Page 31
Slide 32: Appendix
Appendix B2C TRAVEL B2B HOTELS Page 32
Slide 33: Description of Result Categories
Description of Result Categories Statutory Result Continuing Operations • FY18 includes 10 months of JacTravel and $1.7M costs • Underlying Performance for FY17 and FY18 associated with JacTravel acquisition • FY18 also includes 10 months of JacTravel • FY17 includes Zuji trading performance and pro
Slide 34: Financial Results
Financial Results Statutory Result Continuing Operations (1) FY18 FY17 Change FY18 FY17 Change $m $m $m % $m $m $m % TTV 3,012 2,043 969 47% 3,012 1,950 1,061 54% Revenue 291.0 218.7 72.3 33% 291.0 188.8 102.2 54% Revenue as Principal (2) 470.6 16.2 454.4 2814% 470.6 16.2 454.4 2814% Total Revenue (
Slide 35: Segment Summary Continuing Operations
Continuing Operations (1) FY18 FY17 Change Group TTV (continuing operations) 54% pcp $m $m $m % B2C TTV 13% TOTAL TTV Webjet (2) 1,345 1,176 169 14% • Webjet TTV 14% (2) Online Republic 313 292 21 7% • Online Republic 7% AMEA 385 214 171 80% Europe (incl TC) 775 241 533 221% Segment Asia 195