Tourism Holdings Limited · NZX:THL
Tourism — Shareholder Meeting (October 2016)
28 slides from Tourism's shareholder meeting presentation, Oct 18, 2016
Slide 1: Unforgettable experiences. Sustaining success
Unforgettable experiences. Sustaining i uccess
Slide 2: Welcome to the 30th Annual Meeting
Welcome to the 30th Annual Meeting for Tourism Holdings Limited. My name is Rob Campbell, your Chairman. As we have a quorum present, and it is 2:00pm, I declare the Annual Meeting open. Today we are conducting this Annual Meeting simultaneously here and on the Internet. We want to provide all share
Slide 3: Proxies and postal votes received
As indicated on the screen, we have received 39.6 million valid proxies and postal votes, representing 34.2% of the ordinary shares on issue. Of those, 33.4 million have identified me, as Chair of the meeting, as proxy. 3
Slide 4: Board overview of where the business is heading
I will provide a brief overview of where the Board see the business heading, before handing over to our CEO, Grant Webster, to provide a little more detail ‐ specifically on the new initiatives we are undertaking and profit guidance. 4
Slide 5: Chairman's address: business models of the next decade
Recently thl held a leadership conference. There were just on 100 leaders from the business both here in New Zealand and overseas, out of our total staff of about 900. This leadership group is young and highly motivated to succeed and ready to challenge both themselves and the business. I was fortun
Slide 6: Chief Executive's Address
CHIEF EXECUTIVE'S ADDRESS
Slide 7: Overview of the FY16 result
Thank you Rob. Firstly, a quick overview of the FY16 result. We have reviewed the results in our releases in some detail so I will just review the highlights: • We increased revenue by 18% for the year, whilst only increasing average funds employed by 3%; • We increased EBIT by 20%; • We improved th
Slide 8: Six key new initiatives for the year
We had six key new initiatives for the year ‐ all improved the way we operate as a business in some form, many succeeding beyond our expectations and some slower than desired. • Flex fleet was deemed a success and is being repeated. • Telematics is now reducing costs effectively in Australia. We nee
Slide 9: Mighway sharing economy platform
The most significant new initiative is the Mighway sharing economy platform we launched at the Annual Meeting last year. Mighway is one way in which we can access a broader platform for growth, without the historical levels of capital intensity. What have we learnt about this platform and what is ne
Slide 10: In-vehicle tablet technology, Campermate and Geozone
We are also progressing with the in‐vehicle tablet technology and associated customer engagement through Campermate and the other Geozone white label products. We haven’t seen this reach its potential yet, however we are growing the customer base in New Zealand and Australia significantly, creating
Slide 11: Returns targets and global expansion
We are clear on the need for the business as a whole to achieve over 14% returns. Investing in new business models that expand our platform in a lower capital risk manner are part of the strategy that will see the business well exceed those targets in the future. We make these investments with caref
Slide 12: Renewed focus on sustainability
This year we are renewing our focus on what sustainability means to thl. We have a tremendous amount of activity as a business and we still have work to do in order to imbed sustainability principles and practices in our business. But it does start with me, the Board and executive. We need to mainta
Slide 13: Capital commitments and profit expectations
Given all that, you will also be interested to know how we see all this playing out in terms of our capital commitments and profit expectations for the year. From a capital perspective, we expect to spend around $50m on core fleet this year ‐ that’s marginally lower than last year and around $90M on
Slide 14: First half profit expectation
We expect the first half to be around $9.5M net profit after tax, compared to $8.2M in the prior corresponding period. This reflects positive growth in the core businesses, offset by the investment in Mighway, Geozone and the foreign exchange translation of earnings impact. 14
Slide 15: Full year expectation and dividends
The full year expectation is in the range of $27.5M ‐ $28.5M, compared to $24.4M last year. We also continue to provide a steady dividend stream. In FY16 we increased dividends to 19cps, an increase of 27%, whilst profit improved 21%. Dividend growth exceeding profit growth is clearly not sustainabl
Slide 16: Competitive landscape and New Zealand tourism
Before closing, I would like to make some comments on the competitive landscape and tourism in New Zealand. From a competitive perspective, we are seeing a maturing of the industry globally. This month our largest competitor in the RV space, Apollo, have announced an IPO in the Australian market. We
Slide 17: In closing
In closing – thl is a business in the tourism industry, an industry experiencing unprecedented global growth. Some say it’s a tourism boom. I prefer not to use that word, as it implies there will be a bust. I believe we are in a new tourism paradigm where China, India, South America and other nation
Slide 18: Questions from the floor and online
I would like to open up to the floor, and online, for questions. If you are attending the meeting online, you are able to ask questions by clicking on ‘ask a question’. Further information on this is set out in the virtual Annual Meeting online portal guide that has been sent to shareholders. To ens
Slide 19: Formal items of business
There being no more questions, I will now move on to the formal items of business on the agenda. 19
Slide 20: Director retirement by rotation
Under NZSX Listing rule 3.3.11, and in accordance with the constitution of the Company, at least one third, or the number nearest to one third, of the total number of Directors must retire by rotation at each Annual Meeting of shareholders. Also, in accordance with our Board Charter, Directors on th
Slide 21: Poll voting process
As indicated, we are operating a poll vote for all Resolutions today. Eligible shareholder or proxies have been given a voting card. For each Resolution, you need to tick the box indicating whether you are voting for or against the Resolution, or abstaining. Link representatives will collect the vot
Slide 22: Resolution 1 – Election of Debra Ruth Birch
Resolution 1 – Election of Debra Ruth Birch That Debra Ruth Birch (appointed as a Director by the Board on 5 September 2016) be elected as a Director of the Company. I will now ask Debbie to speak briefly. [Debbie] Thank you Debbie. Are there any questions for Debbie? If not, can you please cast you
Slide 23: Resolution 2 – Re-election of Christina Florence Domecq
Resolution 2 – Re‐election of Christina Florence Domecq That Christina Florence Domecq, who retires by rotation and is eligible for re‐election, be re‐elected as a Director of the Company. I will now ask Christina to speak. [Christina] Thank you Christina. Are there any questions for Christina? If n
Slide 24: Resolution 3 – Re-election of Kay Jocelyn Howe
Resolution 3 – Re‐election of Kay Jocelyn Howe That Kay Jocelyn Howe, who retires by rotation and is eligible for re‐election, be re‐elected as a Director of the Company. I will now ask Kay to speak. [Kay] Thank you Kay. Are there any questions for Kay? If no, can you please cast your vote on your v
Slide 25: Resolution 4 – Remuneration of Auditors
Resolution 4 – Remuneration of Auditors That the Directors are authorised to fix the remuneration of the auditors for the ensuing year. Are there any questions in relation to Resolution 4? If there are no questions, I would ask you to cast your vote on your voting card, or online, for Resolution 4.
Slide 26: General business and close of meeting
That ends the Resolutions for this meeting. We will move on to General Business. Are there any other items shareholders would like to raise? There being no other matters of business, I would like to thank you all for attending and I now declare the meeting closed and invite those of you attending in
Slide 27: Thank You
THANK YOU 27
Slide 28: Disclaimer
DISCLAIMER tnt The information in this presentation dated 18 October 2016 may contain forward-looking statements and projections. These reflect thi's current expectations, based on what it thinks are reasonable assumptions. However, for any number of reasons the future could be different and the ass
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