Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Macquarie Conference 2023
18 slides from Flight Centre Travel's conference presentation, May 3, 2023
Slide 1: Macquarie Conference Presentation
Macquarie Conference Presentation Adam Campbell (CFO) May 3, 2023 1 | FCTG
Slide 2: Section 1: Trading Update
Section 1: Trading Update 2 | FCTG
Slide 3: FY23 Trading Update
FY23 Trading Update Further positive steps on path to full recovery Recovering Well – Guidance Amended Corporate Business Outperforming • Tracking comfortably within guidance range ahead of key • TTV for 10 months to April 30 2023 in line with May/June period record FY19 full year result with 2 mont
Slide 4: Targeting 2% underlying PBT margin for FY25
Targeting 2% underlying PBT margin for FY25 Key assumptions & drivers • Group-wide target expected to be achieved via a combination of revenue margin & cost margin improvement • Assumes business & channel mix does not materially vary from current expectations • Corporate & leisure segments globally
Slide 5: Balance Sheet
Balance Sheet Strengthening the Balance Sheet • Ongoing recovery in revenue & EBITDA supporting cash flow & cash generation - cash at March 31 increased to $1.3b 1 • Short-medium term focus on managing debt levels – bank borrowings & convertible bonds • Bank debt facility refinanced in April; extend
Slide 6: Section 2: Leisure Update
Section 2: Leisure Update 6 | FCTG
Slide 7: Leisure Trading Update
Leisure Trading Update Renaissance of the travel agent continues ✓ Recovery Gaining Momentum ✓ Achieving Strategic Objectives • Diverse stable of mass market, luxury, complementary & independent • Differentiating & growing Flight Centre brand brands catering to a broad customer mix & now recovering
Slide 8: Leisure Trading Update
Leisure Trading Update Investment in new growth models paying dividends • Now capturing c.40% of leisure TTV via online, independent & luxury brands (c.20% pre-COVID) • Independents continuing to see strong top line growth - in March 2023 trading at 205% up on the corresponding pre-COVID period • On
Slide 9: Scott Dunn Update
Scott Dunn Update Integration progressing well • Acquisition aligned with FLT's clearly articulated strategy to grow in the global Luxury travel market • Operates in a high margin market segment with resilient characteristics that is expected to continue to grow • Scott Dunn acquisition positions FL
Slide 10: Section 3: Corporate Update
Section 3: Corporate Update 10 | FCTG
Slide 11: Corporate Trading Update
Corporate Trading Update Grow to Win strategy successfully executed ✓ TTV to comfortably surpass record FY19 result with average client spend tracking at just 70-75% of pre-COVID levels ✓ Record monthly transactions & TTV in March 2023 ✓ Strong organic market-share growth ▪ High customer retention r
Slide 12: Corporate Update
Corporate Update Focus on achieving scale benefits • Corporate Traveller recovering strongly & now approaching pre-COVID monthly profitability levels • Focus on 3 key performance metrics across corporate division: 1. Transaction volumes 2. Income per transaction 3. Cost per transaction • Improvement
Slide 13: Section 4: Other
Section 4: Other 13 | FCTG
Slide 14: Other Segment
Other Segment c.$50m-$55m EBITDA loss expected in FY23 1 Travel Services (c.$1m 1H23 EBITDA loss) • Discova – destination management business • BackRoads, Topdeck - touring • Cross Hotels & resorts – hotel management TP Connects (c.$4m 1H23 EBITDA loss) 2 • Investment in content – airfare aggregatio
Slide 15: Section 5: Supply Update
Section 5: Supply Update 15 | FCTG
Slide 16: Supply Update
Supply Update Environment gradually normalising • International air capacity gradually increasing - tracking at 82% of pre-COVID levels in Australia in April 2023 • Steady recovery in air traffic globally - RPKs back above 80% of pre-COVID levels from January 2023 • Recent capacity increase announce
Slide 17: Airfare Pricing Outlook
Airfare Pricing Outlook • Average fares to most international destinations ex Australia peaked late in CY22 • Average fares have generally remained above pre-COVID levels but have tended to decrease early in CY23, with the exception of fares to Europe • Positive recent signs with heavily reduced dis
Slide 18: END OF PRESENTATION: QUESTIONS?
END OF PRESENTATION: QUESTIONS? 18 | FCTG
Flight Centre Travel Group — Macquarie Conference 2023 on 6ix