Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — H1 2024 Earnings Presentation
32 slides from Corporate Travel Management's earnings presentation, Feb 21, 2024
Slide 1: Half Year Results Presentation
ASX Announcement 21 February 2024 Half Year Results Presentation Attached is a copy of Corporate Travel Management’s Limited Half Year Results Presentation for the half year ended 31 December 2023. Authorised for release by the Board. Contact details Media enquiries: Alasdair Jeffrey - Rowland: Alas
Slide 2: Corporate Travel Management Half Year 2024 Results
Corporate Travel Management Half Year 2024 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
1H24 RESULTS Index 1H24 Highlights 4 1H24 Regional Overview 8 Five-year Strategy 16 Group Financial Summary 20 Outlook and Trading update 24 Appendices 1 and 2 27 Page 3
Slide 5: 1H24 Highlights
1H24 Highlights Page 4
Slide 6: 1H24 Group financial highlights
1H24 RESULTS 1H24 Group financial highlights • Record 1H result; client wins delivering above industry growth, successfully converting revenue to strong profit Reported ($AUDm) 1H24 1H23 % growth Revenue and other income 363.7 291.9 +25% • Exceeded internal expectations of a 1/3 EBITDA skew to 1H or
Slide 7: 1H24 scorecard – executing to plan
1H24 RESULTS 1H24 scorecard – executing to plan Revenue/FTE New Client Client growth on p.c.p. Wins¹ Retention 1H24 $0.63bn 97% +17% 97% Revenue/FTE $1.0bn growth > cost FY24 base inflation Target Expect to exceed On-track Exceeding ¹ Based upon client assumptions of annualised FY23 spend at time of
Slide 8: Global recognition
1H24 RESULTS Global recognition ATIA National Travel Industry Awards 2023 • Most Outstanding Global TMC • Sustainability Award – Business • Most Outstanding Business Events Travel Agency TTG Travel Awards 2023 • Best Corporate Travel Agency, Asia Business Travel Sustainability Awards Europe 2023 • A
Slide 9: 1H24 Regional Overview
1H24 Regional Overview Page 8
Slide 10: Group overview
1H24 RESULTS Group overview p.c.p. (AUD$m) 1H24 1H23 change Revenue and other income 363.7 291.9 +25% Underlying EBITDA 100.7 51.3 +96% EBITDA / Rev & Oth Inc Margin 27.7% 17.6% 1H24: Outlook: • Record 1H revenue and EBITDA due to new client • Strong activity rebound in January, particularly NA wins
Slide 11: North America
1H24 RESULTS North America p.c.p. (AUD$m) 1H24 1H23 change Revenue and other income 150.7 145.8 +3% Underlying EBITDA 20.5 16.6 +23% EBITDA / Rev & Oth Inc Margin 13.6% 11.4% 1H24: Outlook: • Strong January; EBITDA +60% on Jan23, as 2Q macro • Revenue growth of 3% conversion to EBITDA impact dissipa
Slide 12: North America remains on track for FY25
1H24 RESULTS North America remains on track for FY25 $450 $400 $350 +$96m $400m $300 $304 m $250 $200 $150 $100 +$55m $50 $100 m $45 m $0 FY23a FY25f Revenue (A$m) EBITDA (A$m) Requirements to achieve FY25 profit target: 1. c14% CAGR revenue growth from FY23-FY25 from new client wins - on track desp
Slide 13: Europe
1H24 RESULTS Europe p.c.p. (AUD$m) 1H24 1H23 change Revenue and other income 98.5 45.2 +118% Underlying EBITDA 63.0 17.0 +271% EBITDA / Rev & Oth Inc Margin 64.0% 37.6% 1H24: Outlook: • Record revenue and EBITDA for the region • Expect no growth from Bridging Contract in 2H, well below expectations
Slide 14: Europe - Growth since FY19
1H24 RESULTS Europe - Growth since FY19 Key take-aways: • Client wins underpinning revenue growth • Most crisis and humanitarian projects form part of a UK Government contract we manage: • 23 projects completed in 3.5 years • Good counter-cyclical play • Expertise has expanded outside of UK Govt • B
Slide 15: ANZ
1H24 RESULTS ANZ p.c.p. (AUD$m) 1H24 1H23 change Revenue and other income 81.4 80.7 +1% Underlying EBITDA 18.6 23.5 (21%) EBITDA / Rev & Oth Inc Margin 22.8% 29.1% 1H24: Outlook: • As previously flagged, 1H24 EBITDA similar to 2H23. • Strong January rebound. January revenue up 11% vs Carrying costs
Slide 16: Asia
1H24 RESULTS Asia p.c.p. (AUD$m) 1H24 1H23 change Revenue and other income 32.5 19.9 +63% Underlying EBITDA 9.1 3.4 +168%. EBITDA / Rev & Oth Inc Margin 28.0% 17.1% 1H24: Outlook: • Record 1H EBITDA result despite Greater Bay Area • January rebound: profit up 196% versus p.c.p. of China (GBA) recove
Slide 17: Five-year Strategy
Five-year Strategy Page 16
Slide 18: Five-year strategy – double FY24 profit in 5 years
1H24 RESULTS Five-year strategy – double FY24 profit in 5 years (acquisition is additional) Growth Drivers What is needed Outcome Sustain greater than industry • Requires FY25 new sales wins of $1.0bn • Compound average revenue revenue growth rates by • Progressively rising each year to $1.6bn by FY
Slide 19: Key projects supporting doubling profit in five years
1H24 RESULTS Key projects supporting doubling profit in five years Project Description Contribution to strategy Sleep Space • Proprietary hotel content engine, • Increased hotel choice, uptake & user experience for customers initially rolled out in ANZ then • Initial capex c$10m globally through CY2
Slide 20: Capital allocation strategy – FY24-29
1H24 RESULTS Capital allocation strategy – FY24-29 Maximising shareholder returns through four initiatives 1. Dividend • Continue 50% NPAT policy but largely unfranked due to profits generated ex AU 2. Challenging the business • Major projects in FY24/25 include CTM Sleep Space, AI and Machine learn
Slide 21: Group Financial Summary
Group Financial Summary Page 20
Slide 22: Profit and loss – reconciliation to Statutory NPAT
1H24 RESULTS Profit and loss – reconciliation to Statutory NPAT $AUD(m) 1H24 1H23 %Δ • 1H24 a strong result, particularly the high conversion of revenue to profit growth Revenue and other income 363.7 291.9 25% • 1H24 Depreciation & Amortisation: $29.2m ($21.6m Underlying EBITDA1 100.7 51.3 96% excl
Slide 23: Comparative statutory balance sheet
1H24 RESULTS Comparative statutory balance sheet $AUD(m) Dec 23 Jun 23 Cash 131.3 151.0 • Strong financial position is enabling the Group to Receivables 387.6 464.5 comfortably manage activity growth Other current assets 16.8 11.6 • Expect Strong cash generation as working Total current assets 535.7
Slide 24: Cash flow summary
1H24 RESULTS Cash flow summary $AUD(m) 1H24 1H23 EBITDA statutory 96.6 50.1 • Operating cash conversion 70%, noting unfavourable Non-cash items 3.3 3.7 timing of rail fixed payment cycle of $20.9m at reporting Change in working capital (32.6) (54.9) period versus the p.c.p. Timing will reverse at FY
Slide 25: Outlook and Trading update
Outlook and Trading update Page 24
Slide 26: FY24 Guidance – how it was built and what has changed
1H24 RESULTS FY24 Guidance – how it was built and what has changed EBITDA original mid-point guidance vs revised mid-point 1 Underlying business is performing well despite 2Q macro: 280 • 2Q macro events had an estimated $15m impact to EBITDA $260m 260 • Strong January rebound suggests 2Q macro impa
Slide 27: Summary and activity update - underlying business performing well
1H24 RESULTS Summary and activity update - underling business performing well 1. 2Q24 macro impacts appear to have dissipated and are unlikely to impact the 2H Experienced strong January rebounds across the globe versus January 2023: • North America underlying EBITDA up +60% • ANZ revenue up +11% •
Slide 28: Appendices
Appendices Page 27
Slide 29: Appendix 1: Recap - path to FY24 $265m EBITDA
1H24 RESULTS Appendix 1: 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 revenu
Slide 30: Appendix 2: CTM – High quality compound ROE model
1H24 RESULTS Appendix 2 :CTM – High quality compound ROE model Globally diversified growth • 30th year of operation - well diversified by geography, industry, client size company • Every CTM region expected to surpass $2 billion in annual TTV in FY24 • Client base of ~5700 clients1, expected to make
Slide 31: Glossary
1H24 RESULTS Glossary BAU Business as Usual 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 equivalent employee NDC New Distribution Capability NPAT Ne
Slide 32: travelctm.com
ccm travelctm.com
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