Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Shareholder Meeting (November 2017)
30 slides from Flight Centre Travel's shareholder meeting presentation, Nov 9, 2017
Slide 1: 2017 AGM
17 AGM 09 November, 2017 ELIGHT.CENTRE
Slide 2: FY17: A Snapshot
FY17: A Snapshot • Enhanced productivity • $20b+ in TTV • Expansion in 3 core • $1b+ in online leisure sales sectors • Growth in unique product sales Strategic Sales Targets Objectives Surpassed Achieved Transformation Stronger IT Program Backbone Initiated • New in-store systems • TTV, net margin &
Slide 3: FY17 Financial Results
FY17 Financial Results • Achieved $20b+ TTV target Profit & Loss PCP Mov't • 21st year of growth in 22 years since listing AUD $m FY17 FY16 % Group TTV 20,109 19,305 4% • $329.5m underlying PBT Operating revenue 2,647 2,612 1% • Profit significantly impacted by cyclical factors – Other revenue 30 30
Slide 4: Sales Growth Outpacing Industry Growth
Sales Growth Outpacing Industry Growth FY17 Growth (%) 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Australian Outbound Departures FLT Australian Leisure TTV FLT International Tickets (ex Australia)
Slide 5: Financial Results: FY17 Highlights
Financial Results: FY17 Highlights Balance Sheet Strength Cash Generation Shareholder Returns • $530.1m in • $295.4m • $140.4m returned company cash & operating cash to shareholders investments at inflow during via fully franked June 30 FY17 interim & final • $55.9m in debt dividends • $474.3m posit
Slide 6: FY17: Results By Country
FY17: Results By Country Rest of Europe Greater China Canada TTV: $170m, up 170 % in AUD TTV: $281m, up 5% in TTV: $1.3b, up 1% in AUD EBIT: ($1.9m) AUD (up 8% in lc) AUD (up 4% in lc) BUSINESSES: 20 AUD EBIT: $0.0m India AUD EBIT: $7.6m BUSINESSES: 42 BUSINESSES: 223 TTV: $571m, up 36% in AUD (up 4
Slide 7: Strategic Acquisitions
Strategic Acquisitions Strategic Rational Date Completed Segment Ownership Leisure Ignite Voucher-based model selling unique product offers direct & via shop Sep-16 Aust & NZ 49% network Sunny Provides FCTG the required licence to sell outbound travel to Chinese Oct-16 Asia 100% nationals Travel Par
Slide 8: Investing In Our People
Investing In Our People = ELIGHT.CENTRE
Slide 9: Investing In Our People - Healthwise
Investing In Our People - Healthwise
Slide 10: Investing In Our People – New Global Head Office
Investing In Our People – New Global Head Office
Slide 11: Corporate Social Responsibility
Corporate Social Responsibility The Flight Centre Foundation has now donated $10.5m to its chosen charities and causes
Slide 12: FY18: Positive Momentum to Start New Year
FY18: Positive Momentum to Start New Year TTV Growth Profit Growth • 6.4% growth during • 4.7% underlying FY17 2H growth during FY17 2H • 1.8% growth during • Down 22.4% FY17 1H duringFY17 1H
Slide 13: FY18 Guidance: Targeting Growth
FY18 Guidance: Targeting Growth 6 Months to Dec 31, 17 Year to June 30, 18 • $120m-$135m underlying 1st Half • $350m-$380m underlying PBT PBT expected expected for FY18 • 6-19% growth on 1H FY17 • 6.2-15.6% growth on FY17
Slide 14: Trading Update: FY18
Trading Update: FY18 EMEA & Americas operations trading at record levels International Recovery in Asia – businesses expected to region now returning to be key growth drivers profit Stronger contribution expected from larger network of in- destination businesses
Slide 15: FY18 Trading Update - Australia
FY18 Trading Update - Australia In-store system change Slight contraction in 1H results likely to be underway & likely to sales force while rollout broadly in line with PCP cause some disruption is underway during 1H Corporate business Rebound expected Airfare pricing now performing well & during 2H
Slide 16: FY18 Strategic Update
FY18 Strategic Update Three Core Pillars in Five Key Geographies: Leisure Australia/NZ TEN EMEA Asia Americas Global (in-destination) Corporate
Slide 17: Strategic Update: Leisure P2P Index
Strategic Update: Leisure P2P Index CONTACT FLAGSHIP INDEPENDENT OTA COMMUNITY SPECIALIST EVENTS CENTRES STORES CONTRACTOR • High volume, • 24/7 sales, • Hyperstores • Smaller • Affiliates • FCBT • Travel Expos, simple Chat & assist • Super regionals shopping • Mobile agents • First & Business Disco
Slide 18: Strategic Update: Digital Commerce
Strategic Update: Digital Commerce Online Completion $1B DIGITAL COMMERCE Online Origination $4B+ * Platforms & Online Tech Completion Digital Commerce Team 300+ Online Origination Countries Served 10+
Slide 19: Strategic Update: Home-Based Leisure Model
Strategic Update: Home-Based Leisure Model Access to new talent Strong growth sector Lower cost model pool of highly globally experienced agents Greater flexibility & New distribution new career Added convenience & channels for FLT's opportunities for FLT choice for customers manufactured products s
Slide 20: Strategic Update: Corporate
Strategic Update: Corporate • Continued Sales Growth: • Brand Diversity: Specialist $6.6b in FY17 TTV, SME, TMS, MICE, education, consolidating FLT’s position entertainment businesses as one of the world’s largest travel managers • System Enhancements: Ongoing upgrades to leading technology & produc
Slide 21: Strategic Update: Travel Experience Network
Strategic Update: Travel Experience Network Greater control over customer offering Tour Operators Ability to create unique products Distribution via FLT shop & corporate business network Destination Management Margin – vertical integration Hotel Management Companies (DMCs) New external revenue strea
Slide 22: Strategic Update: Business Transformation
Strategic Update: Business Transformation Utilising internal Aiming to fast-track Program initiated resources, backed by TTV growth & slow cost during 2H FY17 external expertise growth when required Progress already being Key targets in place made
Slide 23: Transformation Targets
Transformation Targets 7 2 100 • 7% per annum • Return to 2% net • Less than $100m growth on margin within 3 to in cost growth in average in 5 years (subject to constant currency constant currency business mix) during FY18 • = $4.5b TTV • Net margin = growth over next PBT/TTV 3 years
Slide 24: Key Initiatives
Key Initiatives • Digital Commerce • Globalisation – Air, Growth Land & IT • Investment in Growth • Controlling Costs & Brands & Business Improving Efficiency Models in Leisure, Corporate & Travel Experience Network
Slide 25: Transformation: Progress Update
Transformation: Progress Update Initiatives in place to slow cost growth TTV growing in line Working more closely with or slightly above with major landlords to longer term target get better rental Loss-making businesses outcomes closed or pivoted - Singapore, UAE, Canada, US leisure offerings
Slide 26: ITEM 1: RE-ELECTION OF DIRECTOR
ITEM 1: RE-ELECTION OF DIRECTOR To consider and, if thought fit, pass the following ordinary resolution: “That Mr. John Eales, who retires by rotation and, being eligible, be re-elected as an FLT non- executive director.”
Slide 27: ITEM 1: RE-ELECTION OF DIRECTOR
ITEM 1: RE-ELECTION OF DIRECTOR The number of proxies received for the resolution … is: For: 78,637,355 (98.85%) Against: 726,188 (0.91%) Open: 194,090 (0.24%) Abstain: 75,602
Slide 28: ITEM 2: REMUNERATION REPORT
ITEM 2: REMUNERATION REPORT To consider and, if thought fit, pass the following ordinary resolution: “That the Remuneration Report for the financial year ended 30 June 2017 be adopted.”
Slide 29: ITEM 2: REMUNERATION REPORT
ITEM 2: REMUNERATION REPORT The number of proxies received for the resolution … is: For: 62,941,561 (97.86%) Against: 1,186,641 (1.84%) Open: 193,985 (0.3%) Abstain: 91,850
Slide 30: End of Presentation
End of Presentation Questions?
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