Helloworld Travel Ltd · ASX:HLO
Helloworld Travel — H1 2021 Earnings Presentation
24 slides from Helloworld Travel's earnings presentation, Feb 24, 2021
Slide 1: 1H21 Investor Presentation
1H21 Investor Presentation Andrew Burnes AO CEO David Hall CFO
Slide 2: Disclaimer
Disclaimer The information contained in these materials or discussed at the presentation is not intended to be an offer for subscription, invitation or recommendation with respect to shares or securities in any jurisdiction. No representation or warranty, express or implied, is made as to the fairne
Slide 3: Our business
Our business • Retail and corporate travel agency networks • Corporate travel management • Leisure travel wholesaling • Inbound tour operating • Online B2C • Air Ticket consolidation • Tour operating 3 • Event freight services 3
Slide 4: Surviving a global calamity
Surviving a global calamity • On March 19 and 20 2020, the Australian & New Zealand Governments announced the closure of their international borders to everyone except returning citizens and residents and banned their citizens leaving. Effective 19 February 2021, those bans remain in place and are e
Slide 5: Finding the pathway forward
Finding the pathway forward • Over the last four years, HLO has made a number of strategic business acquisitions to complement the Group’s existing operations and expand future product offerings to an increased network of agents, suppliers and customers. • On 30 June 2020, HLO disposed of its USA Wh
Slide 6: There is light down the tunnel
There is light down the tunnel • Slides 7 & 8 show how things are improving in terms of both infection rates both globally and specifically in the UK. • There is now a widespread expectation that in the UK, Europe and North America in particular, infection rates will continue to fall as vaccines are
Slide 7: Global Weekly Infection Levels
Global Weekly Infection Levels 7 7
Slide 8: Covid-19 cases in the UK
TRAVEL LIMITED helloworld : m4 AX Covid-19 cases in the UK New daily reported cases and 7-day rolling average
Slide 9: Share price – 12 month period
Share price – 12 month period Helloworld Travel Limited Flight Centre WEBJET Corporate Travel Management 9 Share price data as at 23 February 2021 9
Slide 10: Business focus: Corporate Businesses
Business focus HLO Corporate Businesses • HLO’s corporate businesses comprise QBT, TravelEdge, Show Travel and APX (NZ). On a year to date basis, Australian operations are running at 42% of prior year TTV and 28% of revenue, while NZ TTV and revenue is running at 29% and 30% of prior year levels. •
Slide 11: Business focus: Leisure Travel Wholesale
Business focus HLO Leisure Travel Wholesale Businesses • CruiseCo acquisition – the cruise wholesaling specialist aligns with HLO strategy of expanding its cruise offering in Australia and New Zealand and is complimentary to HLO’s existing cruise wholesale business, Seven Ocean cruising. • Cruise de
Slide 12: Business focus: Investments in technology
Business focus Investments in technology for future opportunities HLO has continued to invest in our technology platforms to maximise the opportunities for our agents, our supplier partners, and most importantly for our end-user customers. • ResWorld is our internally developed mid-office system, av
Slide 13: Travel Agency members
Travel Agency members Unrivalled portfolio of leading travel agency networks 2,274 at 31 DECEMBER 2020 | 2,496 at 30 JUNE 2020 • HLO has been assisting our retail travel agents and travel brokers to manage their way through this period until demand returns. This has included suspending all franchise
Slide 14: 1H21 Group results (underlying)
FY20 Group results (underlying) Impact of COVID-19 on travel operations - travel restrictions continue to severe impact on 1H21 1H20 Change the business with TTV and revenue at ~15% of $m $m % the same period last year. The December quarter saw some positive Total Transaction Value (TTV) 432.9 3,559
Slide 15: Reconciliation of underlying EBITDA
Reconciliation of underlying EBITDA 1H21 1H20 One-off charges $m $m The Group’s statutory PBT result includes a Underlying EBITDA (6.5) 48.6 number of one-off charges, most Restructuring costs (3.5) - significantly are the costs associated with the restructuring of the business as a COVID-19 related
Slide 16: Australia
Australia • TTV running at 10-15% of p.c.p adversely impacted COVID-19 however we are seeing an upward trend 1H21 1H20 Change towards the end of 1H21 as domestic border restrictions ease and corporate travel increases. $m $m % Leisure travel TTV has been slower to come back. Total Transaction Value
Slide 17: New Zealand
New Zealand 1H21 1H20 Change • TTV running at circa 10% of p.c.p mostly following the same trend as the Australian $m $m % market with corporate travel achieving Total Transaction Value (TTV) 54.3 512.8 (89.4%) 29% of p.c.p. Revenue 3.4 32.3 (89.3%) • The revenue margin of 6.3% has been maintained i
Slide 18: Rest of the World
Rest of the World 1H21 1H20 Change $m $m % • The U.S Wholesale Division was sold 30 June Total Transaction Value (TTV) 0.0 27.0 (100%) 2020. The ROW segment represents the results of the Fiji inbound businesses. Revenue 0.1 5.2 (97.6%) • Trading losses relating to U.S Wholesale Revenue margin % 0.0%
Slide 19: Liquidity and funding
Liquidity and funding As at 30 June 2020, the expiration of the Westpac Banking Corporation (Westpac) loan facilities was Liquidity Dec-20 Jun-20 Change extended, with the earliest scheduled expiry $m $m $m occurring in April 2022. As at 31 December 2020, the Total cash 142.7 131.9 10.8 Group had
Slide 20: Cash Flow
Cash Flow $000’s 1H21 1H20 Net cash used in operating activities (8,942) (45,432) Decline in 1H21 operating cash Payments for intangibles (3,000) (11,346) flow driven by COVID-19 and Payments for property, plant and equipment (26) (1,865) Payments for acquisition of controlled entities, net of cas
Slide 21: Outlook
Outlook • Restructuring to enable the business to provide key deliverables to customers and to expand as required when international borders begin to open up • Continued investment in our product and service offerings across all divisions of the business • Medium term (12-18 months), pent up demand
Slide 22: Appendix
helloworld Appendix
Slide 23: Company background information
Company background information A$2.52 A$391.0 M Share Price at 155.2M A$142.7 M Cash Market Cap at Shares Issued A$81.0 M Debt 31 Dec 2020 31 December 2020 Board and Management Team Non-Executive Director and Chairman - Garry Hounsell Mr Hounsell was appointed to the Board as Chairman on 4 October 2
Slide 24: helloworld
helloworld