Web Travel Group Limited · ASX:WEB
Web Travel — Webjet — FY2016 Earnings Presentation
37 slides from Web Travel's earnings presentation, Aug 18, 2016
Slide 1: FY16 Results Update
FY16 RESULTS UPDATE John Guscic Managing Director 18 August 2016
Slide 2: FY16 highlights
FY16 Results FY16 highlights Strong growth in B2C continues; B2B growth initiatives underway Full Year Ended FY16 FY15 Inc. / (Dec.) 30 June 2016 $m $m $m % TTV Revenue 1,630 155.3 1,266 120.3 364 35.0 28.8% 29.1% 28.8% 29.7% TTV Revenue Revenue (net of interest) 154.5 119.1 35.4 29.7% Costs 117.9 9
Slide 3: Segment summary
FY16 Results Segment summary TTV FY16 $m FY15 $m Inc. / (Dec.) $m % Group TTV up 28.8% Webjet Zuji LOH 990 273 162 831 207 96 159 66 66 19.1% 31.8% 69.3% 23.8% Webjet TTV 19.1% Sunhotels 184 133 51 38.8% B2C TTV Zuji TTV 31.8% Online Republic 22 22 n/a Total TTV 1,630 1,266 364 28.8% 69.3% Segment T
Slide 4: Strong organic bookings growth; TTV margins on target
FY16 Results Strong organic bookings growth; TTV margins on target NUMBER OF BOOKINGS REVENUE/TTV MARGIN 10.2% 000's of Bookings 9.4% 9.5% 8.6% 2,500 2,000 1,500 1,000 500 0 FY13 FY14 FY15 FY16 B2B B2C FY13 FY14 FY15 FY16 • FY16 bookings up 28% • B2C 3 year CAGR up 13% • Margin remains in target 9.0
Slide 5: Strong balance sheet
FY16 Results Strong balance sheet $m Jun-16 Jun-15 Change Cash 116.2 76.2 40.0 Other current assets 90.2 41.5 48.7 Non-current assets 171.6 85.1 86.5 Total Assets 378.0 202.8 175.1 Current Liabilities 197.1 87.6 109.5 Non-Current Liabilities 29.2 32.8 (3.5) Equity 151.7 82.5 69.2 Cash Balance • $116
Slide 6: Significant cash generation
FY16 Results Significant cash generation Summary Cash Flow FY16 FY15 Full Year Ended 30 June 2016 $m $m Cash flow from Operating Activities 46.6 35.4 Cash flow from Investing Activities (67.5) (27.9) Cash flow from Financing Activities 63.3 17.0 Net Cash Flow 42.4 24.5 Cash Conversion (Operating Act
Slide 7: Ongoing capital investment
FY16 Results Ongoing capital investment 1H 16 2H 16 FY16 FY15 FY16 vs FY15 B2B A$ 1.6 A$ 2.0m A$ 3.6m A$ 2.1m A$ 1.5m Up 71.4% B2C A$ 2.6 A$ 2.8m A$ 5.4m A$ 5.4m A$ 0.0m Up 1.8% TOTAL A$ 4.2 A$ 4.8m A$ 9.0m A$ 7.5m A$ 1.5m Up 20.7% CAPEX • FY16 CAPEX $9.0 million, up 21% year-on-year • On-going inve
Slide 8: Final dividend of 8 cents – up 10.3%
FY16 Results Final dividend of 8 cents – up 10.3% Cents Paid – Fully Franked 8.00¢ 7.25¢ 7.25¢ 7.00¢ 7.00¢ 6.00¢ 6.00¢ 6.25¢ 6.25¢ 6.50¢ FY12 FY13 FY14 FY15 FY16 Interim Final With the ongoing international expansion, it is unlikely that future dividends will be fully franked 8
Slide 9: B2C Travel
B2C TRAVEL Online travel agency
Slide 10: B2C summary
FY16 Results Webjet B2C summary A$ FY15 FY16 Change TTV $ 1,038m $ 1,285m $ 247m 23.8% 27.5% TTV Revenue Revenue $ 96.9m $ 123.5m $ 26.6m Costs $ 72.9m $ 90.3m $ 17.4m 23.8% 38.6% EBITDA EBITDA $ 24.0m $ 33.2m $ 9.3m Costs 10
Slide 11: B2C Travel / B2B WebBeds
B2C TRAVEL B2B WebBeds Australia Australia New Zealand Middle East Europe New Zealand Singapore Africa Hong Kong North America
Slide 12: Webjet FY16 highlights
FY16 Results Webjet FY16 highlights Business performance remains strong • TTV grew 19.1% Webjet FY15 FY16 • TTV margins remained constant TTV $ 831m $990m • EBITDA up year-on-year Growth 19.1% Continue to see record TTV each month • As of 30 June 2016, Webjet has seen 27 months of consecutive record
Slide 13: Bookings continue to move online
FY16 Results Webjet Bookings continue to move online % TTV (FY16) % Bookings (FY16) 15% 14% 37% Year-on-year Webjet bookings 63% International 86% Domestic Webjet Growth Market Growth (1) Webjet continues to significantly 13% Webjet Domestic 1.7% Domestic Bookings outperform the Bookings market 30%
Slide 14: Dominant share of OTA brand search in Australia
FY16 Results Webjet Dominant share of OTA brand search in Australia 14
Slide 15: Higher margin revenue streams also growing
FY16 Results Webjet Higher margin revenue streams also growing TTV PACKAGES Packages • Annualised TTV run rate $63 million, up 43% year-on-year • Exclusives now profitable A$63.0m A$44.0m Other A$30.0m A$13.2m • Travel insurance and car hire accelerating faster than flight FY13 FY14 FY15 FY16 bookin
Slide 16: B2C Travel / B2B WebBeds
B2C TRAVEL B2B WebBeds Australia Australia New Zealand Middle East Europe New Zealand Singapore Africa Hong Kong North America
Slide 17: Organic growth coming through
FY16 Results Organic growth coming through ZUJI FY15 FY16 Gaining share in key markets TTV $ 207m $ 273m • Number 2 OTA in Hong Kong Growth 31.8% and Singapore ZUJI AU $ 70m $ 80m • Bookings up 46% year-on-year Growth 14.3% • TTV up 32% ZUJI Asia $ 137m $ 193m • Strong organic growth in Growth 41.2%
Slide 18: Key highlights
FY16 Results Key highlights ZUJI Hong Kong ZUJI Singapore ZUJI Australia Ongoing increase of LCC New apps launched Ongoing enhancements content • New CMS launched • Mobile platforms continue to • Added Hong Kong Express gain traction, with high • Complete rebuild of customer retention rates holiday
Slide 19: B2C Travel / B2B WebBeds
B2C TRAVEL B2B WebBeds Australia Australia New Zealand Middle East Europe New Zealand Singapore Africa Hong Kong North America
Slide 20: Online Republic acquisition completed
FY16 Results Online Republic acquisition completed Business performance remains strong • Business progressing as expected Online Republic FY15 FY16 • Integration has gone well TTV $ 22m Highlights: Growth n/a • Successfully executed first TV EBITDA $ 0.8m campaign for Cruise Republic • Finalist in K
Slide 21: B2B WebBeds
B2B WebBeds Digital provision of hotel rooms to global partners
Slide 22: B2B summary
FY16 Results B2B summary A$ FY15 FY16 Change TTV $ 228m $ 346m $ 118m 51.6% 39.5% TTV Revenue Revenue $ 22.2m $ 31.0m $ 8.8m Costs $ 18.3m $ 27.6m $ 9.3m 50.7% 13.0% EBITDA EBITDA $ 3.9m $ 3.4m $ (0.5)m Costs • In November 2015, the B2B business was restructured to integrate the inventory platforms
Slide 23: B2C Travel / B2B WebBeds
B2C TRAVEL B2B WebBeds Australia Australia New Zealand Middle East Europe New Zealand Singapore Africa Hong Kong North America
Slide 24: Winning market share in a difficult market
FY16 Results Winning market share in a difficult market Delivering strong growth in a difficult market • TTV up 69.3% year-on-year - Up 46.9% in base currency (USD) LOH FY15 FY16 • TTV margin constant TTV $ 96m $ 162m Strong bookings growth Growth 69.3% • FY16 bookings up 61% year-on-year - 1H16 boo
Slide 25: Growth profile
FY16 Results Growth profile Major Source Markets Major Destinations › Saudi Arabia › United Arab Emirates › United Arab Emirates › Saudi Arabia › Qatar › United Kingdom › South Africa › USA › Kuwait › France Top Growth Source Top Growth Destinations(1) Markets(1) › Algeria +227% › Spain +86% › South
Slide 26: LOH North America launched
FY16 Results LOH North America launched North America Market Entry Key Source Markets Opportunity to replicate success of New York - Las Vegas - Orlando LOH in North American market • Geographically fragmented market: Large wholesale market potential • Multi-supply aggregation model: Target wholesal
Slide 27: B2C Travel / B2B WebBeds
B2C TRAVEL B2B WebBeds Australia Australia New Zealand Middle East Europe New Zealand Singapore Africa Hong Kong North America
Slide 28: FY17 investment delivering growth
FY16 Results FY17 investment delivering growth Strong TTV and revenue growth coming through • TTV up 38.8% year-on-year - Up 31.0% in base currency (EUR) Sunhotels FY15 FY16 • TTV margins constant TTV $ 133m $ 184m Strong bookings momentum Growth 38.8% • FY16 bookings up 39% year on year - 1H16 book
Slide 29: Growth profile
FY16 Results Growth profile Extended market leading position in Nordics; market expansion coming through in key markets Major Source Markets Major Destinations › Sweden › Spain › England › USA › Norway › Greece › Spain › Thailand › Finland › Portugal Top Growth Source Top Growth Destinations(1) Mark
Slide 30: B2B WebBeds: Major European Growth Opportunity
B2B WebBeds Major European Growth Opportunity
Slide 31: Who is Thomas Cook?
FY16 Results Who is Thomas Cook? Thomas Cook is the oldest and best loved name in travel with sales of £7.8 billion and 20 million customers each year. 31
Slide 32: Complementary Products: At the heart of the strategy
FY16 Results Complementary Products: At the heart of the strategy “We currently make around £2 billion of revenue* from complementary products. A 1% uplift in EBIT margin through cost efficiencies should deliver an uplift of around £20-£25 million in EBIT benefits by 2018.” - Thomas Cook chief execu
Slide 33: Thomas Cook Strategic Sourcing Partnership
FY16 Results Thomas Cook Strategic Sourcing Partnership New Strategic Partnership Partnership Details • Sunhotels has entered a major • Upfront payment to Thomas Cook strategic partnership to grow the of GBP 21 million Complementary Hotel business • Long term contract of Thomas Cook Group • During t
Slide 34: FY17 B2B EBITDA target unchanged
FY16 Results FY17 B2B EBITDA target unchanged • Outlook for B2B B2B EBITDA targeted to double in FY17 • We expect B2B EBITDA to be around $6 million in FY16 • Our •planned B2B investment We are targeting B2B EBITDA ofgrowth strategy $12 million in FY17 is underway and delivering tangible results • F
Slide 35: FY17 Guidance
‘webjet limited
Slide 36: Growth continues; CAGR tracking ahead of plan
FY16 Results Growth continues 5 year CAGR tracking ahead of plan • Webjet bookings currently growing at more than 8% • ZUJI Asia bookings currently growing at more than 20% B2C • Online Republic bookings currently growing at more than 15% • We continue to track ahead of our 5 year CAGR EBITDA target
Slide 37: Thank you
THANK YOU August 2016 aa *ZujI oe loisof-o''s = sunhotels