Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — Goldman Sachs Presentation (May 2012)
24 slides from Corporate Travel Management's conference presentation, May 17, 2012
Slide 1: Goldman Sachs Presentation
For personal use only travelctm.com Goldman Sachs Presentation Wednesday 16th May Jamie Pherous
Slide 2: What we do
What we do For personal use only What we do: • Professional corporate travel services provider. • Target niche ASX300, large private and Multi-National companies. Why we created CTM: • CTM was created to provide client with an alternative to the Global Travel Management Companies (TMC’s). • Flexible
Slide 3: CTM Profile - July 12
CTM Profile - July 12 . USA For personal use only Brisbane Gold Coast Perth Sydney Auckland Melbourne • Over 570 FTE staff across Australia, New Zealand and USA. • Corporate market share circa 9% in Australia. • Approx. 750 clients within Australia and New Zealand, including 15 ASX100 companies, mul
Slide 4: Agenda
Agenda For personal use only • Group Performance Highlights • USA Acquisition • Key Initiatives • Looking Forward FY12 and beyond
Slide 5: Group Performance – Half Highlights
Group Performance – 1 Half Highlights st For personal use only • TTV $315.9m + 42% p.c.p • Fee & other revenue $29.34m + 43% p.c.p • EBITDA $7.30m + 45% p.c.p • NPAT $4.66m + 41% p.c.p • Underlying NPAT $4.79m + 41% p.c.p • Interim dividend of 3 cents paid18 April 2012. Summary: • Strong organic gro
Slide 6: Group Performance – CTM Highlights
Group Performance – CTM Highlights Executing on Key Drivers of the Business we can control: For personal use only • Organic growth - record new client wins combined with strong retention. Large portion of business won starts to transact in 2HFY12. • Client profit contribution – profitability sustain
Slide 7: Current Client Activity
Current Client Activity For personal use only • Experienced slight softening in activity since Oct11 in line with economy. • Reinforces the fact that economic activity is a driver but not the main driver of the model. * 2010 dip was the volcanic ash cloud.
Slide 8: Agenda
Agenda For personal use only • Group Performance Highlights • USA Acquisition • Key Initiatives • Looking Forward FY12 and beyond
Slide 9: USA Acquisition - Why?
USA Acquisition - Why? For personal use only • Cross-Sell - CTM has 130 Australian-based accounts which have significant travel spend originating from the USA. • Location - located in one of the USA’s busiest travel hubs with low cost base and favourable business environment. • Acquisition criteria
Slide 10: USA Acquisition - Financials
USA Acquisition -Financials For personal use only • Contribution for CY11 TTV $110m EBITDA $980k. • The acquisition is immediately EPS accretive. • USA approximately 5% of forward EBITDA to the CTM group. • Base consideration is USD$5.39m (cash-$4.788m and $0.602m shares at market value). • An addit
Slide 11: Agenda
Agenda For personal use only • Group Performance Highlights • USA Acquisition • Key Initiatives • Looking Forward FY12 and beyond
Slide 12: Business Drivers for FY13
Business Drivers for FY13 For personal use only People Clients Continue to attract, develop and retain the Win new clients. best team who will support our growth plans. Retain current clients. CTM is the “easiest place” to work. Grow current client revenue through new Continue to measure
Slide 13: Innovation - Product & Process update
Innovation -Product & Process update For personal use only Client-facing highlights: • Wotif booking engine development partnership - deliver unique offering to corporate market. 1HFY13 release • Business Intelligence Reporting - best in market tools for clients - ability to deliver consistency acro
Slide 14: Resource Travel Management
Resource Travel Management For personal use only • Mining and mining services represents 30%+ of CTM’s business. • Unique offering tailored for industry specialisation.
Slide 15: Innovation & Process – our people
Innovation & Process – our people For personal use only 1. “Zen” project - Technology as an enabler to eliminate routine tasks in consultant process. - Create better service proposition and improved productivity. 2. Business Intelligence CTM - Empower leaders including middle management to make bett
Slide 16: Key Initiatives into FY13
Key Initiatives into FY13 For personal use only • Key Focus Over Next 12 Months: • Organic growth (new client wins & retention). • Innovation – execute and deliver client-facing products & tools in a staged process throughout FY13 • Implement the automation and productivity initiatives to create mor
Slide 17: Agenda
Agenda For personal use only • Group Performance Highlights • USA Acquisition • Key Initiatives • Looking Forward FY12 and beyond
Slide 18: Looking Forward
Looking Forward For personal use only Reaffirm FY12 guidance 30% - 40% EBITDA growth on p.c.p. • Despite softening in activity since Oct11 that has continued. FY13 Outlook: • Strong win/retention in FY12 provides good momentum into FY13. • ‘Like for like’ double digit organic growth irrespective of
Slide 19: Addendum: Financial Performance – 1H FY12
Addendum 1 For personal use only • Financial Performance – 1H FY12
Slide 20: Half Year Profit and Loss Highlights
Half Year Profit and Loss Highlights For personal use only • TTV - 42% up on p.c.p – reflects strong new business performance and six month contribution from Travelcorp and three month contribution from etm. • EBITDA – 45% up on p.c.p. Profit contribution (EBITDA margin 25%) in line with prior corre
Slide 21: Comparative 1HFY12 Profit and Loss
Comparative 1HFY12 Profit and Loss 6 mths ended 6 mths ended Dec For personal use only Dec 2011 % of Income 2010 % of Income $'000 $'000 TTV 315,881 222,338 Travel & other Income 29,340 20,467 Yield % of TTV 9.28% 9.21% Operating Expenses (22,036) 75% (15,421) 75% EBITDA 7,304 25% 5,046 25% Deprecia
Slide 22: Balance Sheet Summary ($m)
Balance Sheet Summary ($m) • For personal use only Minimal debt. As at 31 December 2011 $m Cash 7.2 • Intangibles largely goodwill on acquisitions. Receivables and other 18.1 Total current assets 25.3 • Net current liability position due to PP&E 2.1 recording of $7.2m deferred and Intangibles 42.6 c
Slide 23: Cash Flow Summary ($m)
Cash Flow Summary ($m) 6 months • For personal use only 6 months to to Dec Strong operating cash flow. Dec 2011 2010 EBITDA 7.3 5.0 • Growing TTV means larger supplier payment accruals (-ve W.C.) Change in working capital (2.6) (0.4) Income tax paid (1.9) (0.6) • Other investment cash flows relate t
Slide 24: For personal use only
For personal use only travelctm.com
Corporate Travel Management — Goldman Sachs Presentation (May 2012) on 6ix