Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — FY2023 Earnings Presentation
28 slides from Corporate Travel Management's earnings presentation, Aug 23, 2023
Slide 1: FY23 Results Presentation
ASX Announcement 23 August 2023 FY23 Results Presentation Attached is Corporate Travel Management Limited’s 2023 full year results presentation for the year ended 30 June 2023. Authorised for release by the Board. Contact details Media enquiries: Alasdair Jeffrey – Rowland – Alasdair.Jeffrey@rowland
Slide 2: Corporate Travel Management Full Year 2023 Results
Corporate Travel Management FULL YEAR 2023 RESULTS
Slide 3: Disclaimer
Disclaimer The information in this presentation contains summary information about the current activities of Corporate Travel Management Limited ACN 131 207 611 (Company) and its subsidiaries. It should be read in conjunction with the Company’s other periodic and continuous disclosure announcements
Slide 4: Index
FY23 RESULTS Index FY23 Highlights Page 4 Regional Overview Page 7 AI/Automation Page 15 Financial Overview Page 17 FY24 Guidance Page 21 Appendix Page 24 Page 3
Slide 5: FY23 Highlights
FY23 Highlights Page 4
Slide 6: Group financial highlights
FY23 RESULTS FY23 Group financial highlights Momentum; successfully converting revenue to profit: Reported AUD($m) FY23 FY22 % • FY23 Revenue above CTM’s $648m guidance. Revenue and other income 660.1 388.7 +70% • Successfully converting revenue recovery into EBITDA, and importantly PBTa, NPAT. Unde
Slide 7: FY23 scorecard – taking strong momentum into FY24
FY23 RESULTS FY23 scorecard – taking strong momentum into FY24 New Client 30 June FTE Staff Wins¹ Client Retention Count FY23 $2.95bn 97% 3,206 (+349 v FY22) Feb-Jun Feb-Jun 23 EBITDA PBTa² EBITDA/ 2H23 >$20m revenue margin momentum $16.5m mthly avg 31.5% mthly avg ¹ Based upon client assumptions of
Slide 8: FY23 Regional Overview
FY23 Regional Overview Page 7
Slide 9: Group overview AUD($m)
FY23 RESULTS FY23 Group overview AUD($m) Australia & New AUD($m) CTM Consolidated North America Europe Asia Global o/head Zealand FY23 % 2H23 1H23 FY22 FY23 FY22 % FY23 FY22 % FY23 FY22 % FY23 FY22 % FY23 FY22 % Revenue and other 660.1 70% 368.2 291.9 388.7 303.7 217.7 40% 143.0 83.9 70% 160.1 68.3
Slide 10: North America
FY23 RESULTS North America p.c.p. AUD($m) FY23 FY22 change Revenue and other income 303.7 217.7 +40% Underlying EBITDA 44.8 27.2 +65% EBITDA / Rev Margin 14.8% 12.5% Highlights Outlook • Integration completed • Incremental growth via new client wins. • Focussed on market share growth, technology and
Slide 11: North America revenue recovery – trajectory to FY24
FY23 RESULTS North America revenue recovery – trajectory to FY24 Deliberate downsizing of low margin, non-core divisions; impact -17% of FY19 pro-forma revenue FY24f 100% revenue 100% recovery known new clients won 90% not yet transacting 80% client wins transacting 70% 60% 50% 4Q23: 85% revenue Key
Slide 12: Europe
FY23 RESULTS Europe p.c.p. AUD($m) FY23 FY22 change Revenue and other income 143.0 83.9 +70% Underlying EBITDA 84.1 37.4 +125% EBITDA / Rev Margin 58.8% 44.6% Highlights: Outlook • Record financial metrics – approximately doubled • FY23 full year result a recurring baseline for future growth EBITDA
Slide 13: Bridging and Accommodation services contract - high level overview
FY23 RESULTS Bridging and Accommodation services contract - high level overview Contract is an extension of CTM’s core competencies built over the last 4 years • Humanitarian and crisis management projects CTM was proud to be part of include Ukraine, Afghanistan, Sudan extractions, Thomas Cook colla
Slide 14: ANZ
FY23 RESULTS ANZ p.c.p. AUD($m) FY23 FY22 change Revenue and other income 160.1 68.3 +134% Underlying EBITDA 42.4 11.9 +256% EBITDA / Rev Margin 26.5% 17.4% Highlights: Outlook: • HLO Corporate integration completed - retained WoAG • 3 objectives to convert recovery into revenue and profit: and Stat
Slide 15: Asia
FY23 RESULTS Asia p.c.p. AUD($m) FY23 FY22 change Revenue and other income 51.6 17.3 +198% Underlying EBITDA 13.9 (3.0) n.m. EBITDA / Rev Margin 26.9% n.m. Highlights: Outlook • Region has undergone a stunning turnaround since • Highly leveraged to The Greater Bay Area of China (GBA) China opening i
Slide 16: AI / Automation
AI / Automation Page 15
Slide 17: Artificial intelligence (AI) and Robotic Process Automation (RPA)
FY23 RESULTS Artificial intelligence (AI) and Robotic Process Automation (RPA) • Developing in-house for over 2 years, we own our technology to quickly modify, learn, Why AI will be a winner for CTM improve • Building AI that works from our existing product suite and data warehouse Clients: • Enabli
Slide 18: Financial Overview
Financial Overview Page 17
Slide 19: Profit and loss
FY23 RESULTS Profit and loss AUD($m) FY23 FY22 % • Transactional revenues contributed 89% of total Revenue and other income 660.1 388.7 70% revenue (FY22: 87%), validating CTM’s low reliance on supplier overrides Underlying EBITDA1 167.1 59.8 179% Underlying PBTa2 124.8 22.3 460% • Strong conversion
Slide 20: Comparative statutory balance sheet
FY23 RESULTS Comparative statutory balance sheet AUD($m) Jun 23 Jun 22 • Cash balance at 30 June 2023: $151.0m Cash 151.0 142.1 • Increased receivables and payables a function of the Receivables 464.5 276.3 growth activity in new client and contract wins Other current assets 11.6 15.1 transacting in
Slide 21: Cash flow summary
FY23 RESULTS Cash flow summary AUD($m) FY23 FY22 • $80m operating cash was generated solely in 2H EBITDA statutory 163.0 48.2 • 2H operating cash was negatively impacted by the rapid increase in Non-cash items 4.2 4.4 UK government activity on invoice terms c$47m Change in working capital (82.2) 26.
Slide 22: FY24 Guidance
FY24 Guidance Page 21
Slide 23: FY24 Guidance - converting incremental revenue to profit
FY23 RESULTS FY24 Guidance - converting incremental revenue to profit AUD ($m) FY23 actual % growth FY24 Guidance Revenue $660.1m 17% - 29% $770m - $850m EBITDA $167.1m 44% - 68% $240m - $280m PBTa $124.8m 55% - 87% $193m - $233m Top of range • $850m revenue (out-performance) Mid-point • $810m reven
Slide 24: July trading activity and Summary
FY23 RESULTS July trading activity and Summary • On track for $810m in FY24 being 100% pro-forma FY19 recovery Revenue • On track. Staff numbers to grow by only 6.5% in FY24 versus revenue @17%-29% Turning incremental revenue to profit • Two-year investment in AI and RPA starting to deliver returns
Slide 25: Appendix: original assumptions to FY24 full recovery
Appendix: original assumptions to FY24 full recovery Page 24
Slide 26: Recap - path to FY24 $265m EBITDA
FY23 RESULTS Recap - path to FY24 $265m EBITDA- how it was built in FY21-22 FY19 T&T2 HLO2 Subtotal Synergies Subtotal Additional, growth FY24 Pro-forma FY19 with synergies related FY19 FY19 @100% assuming @100% @100% @ 100% market market revenue 100% market market market recovery revenue revenue re
Slide 27: Glossary
FY23 RESULTS Glossary AI Artificial intelligence Client SLA’s Client Service Level Agreements CTM regions ANZ- Australia and New Zealand, NA - North America, EU- UK and Europe, Asia - Asia EBITDA Earning before Interest, Tax , Depreciation, Amortisation EPS Earnings per share FTE Full time equivalen
Slide 28: travelctm.com
ccm travelctm.com
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