Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Shareholder Meeting (October 2021)
42 slides from Flight Centre Travel's shareholder meeting presentation, Oct 20, 2021
Slide 1: Annual General Meeting
Annual General Meeting Flight Centre Travel Group ASX: FLT I October 20, 2021
Slide 2: Today's Schedule
Today’s Schedule Chairman’s Address - Gary Smith MD’s Address - Graham Turner Resolutions General Questions 2
Slide 3: Chairman's Address
Chairman's Address
Slide 4: FY21: Highlights
FY21: Highlights 01 Recovery gaining momentum – • Sales revenue increased month-on-month – record COVID-period result in June 2021 • Rapid leisure & corporate recovery in USA late in Q4-21 particularly in USA & corporate sector • Corporate transaction numbers (tickets) at c.50% of pre-COVID levels (
Slide 5: FY21: Profit & loss
FY21: Profit & loss $m FY21 FY20 Mvmt Group TTV 3,945 15,303 (11,358) Operating revenue 396 1,897 (1,501) Total revenue 396 1,897 (1,501) FV gain on change in control - (3) 3 Other income 280 197 83 Share of JV/Associates 17 (5) 23 Employee benefits (810) (1,491) 681 Marketing expense (25) (170) 145
Slide 6: FY21: Recovery gaining momentum during Q4
FY21: Recovery gaining momentum during Q4 Americas EMEA ANZ • Strong TTV rebound late in year. • Corporate recovery building during Q4- • ANZ Leisure Q4-21 TTV was 115% of • June 2021 TTV more than 2.5x the 21. 1H-21 Leisure TTV & more than triple average monthly TTV contribution • June 2021 monthly
Slide 7: Pedal Group: Positive growth cycle
Pedal Group: Positive growth cycle Highlights • 99 Bikes (retail network) + ATA (wholesaler) • $54m profit before tax for FY21, up from $18m during FY20 • Group sales increased to $333m (FY20: $200m) • Large focus on e-bikes – popular, big-ticket items • NZ expansion – 6 shops + 2 more set to open (
Slide 8: Strong liquidity position - September 21
Strong liquidity position - September 21 Liquidity position a) Working capital assets (excl. cash and investments) As at 30 September 2021 $m As at 30 September 2021 $m Cash and investments 1,211 Retail and corporate debtors 298 Working capital assets (excl. cash and investments) 507 a Trade and oth
Slide 9: FY21: Investing to win market-share
FY21: Investing to win market-share Prioritising long-term success • Investing in key growth drivers, while maintaining tight rein on costs • Initial focus on costs & liquidity before focusing on growth as conditions stabilised Deploying game changing new corporate technology to enhance an already c
Slide 10: Cross Hotels & Resorts: Seven-property master franchise agreement in Japan
Cross Hotels & Resorts: Seven-property master franchise agreement in place in Japan Click to add text • First property now open for business: Away Okinawa Kouri Island Resort 10
Slide 11: FY21: Successfully executing key strategies
FY21: Successfully executing key strategies Corporate business growing to win • Strong return on “grow to win” investments – $US1.4b pipeline in new accounts won (circa 70% to trade in the Americas & EMEA) with 98.5% client retention in FCM • Increased market-share & foundations in place for further
Slide 12: The future: Well placed for industry rebound
The future: Well placed for industry rebound Healthy liquidity position ▪ Has allowed FLT to weather the COVID challenge ▪ Key assets maintained Brand & geographic diversity ▪ Large presence in both the leisure & corporate sectors ▪ Broad geographic footprint with significant leverage to Americas &
Slide 13: ESG: Building on our credentials
ESG: Building on our credentials Enhanced focus on an area that is important to our company, our people & our stakeholders • 1st sustainability report released during FY21& available on fctgl.com • Followed an internal stocktake of all programs offered globally in this important area • Internal ESG
Slide 14: Outlook
FLIGHT,CENTRE TRAVEL GROUP”
Slide 15: Experienced global leadership team
Experienced global leadership team Strong management group with a long history in the business Adam Campbell Graham “Skroo” Turner Melanie Waters-Ryan Chris Galanty Chief Financial Global Managing Director Leisure Chief Executive Corporate Chief Officer and CEO Officer Executive Officer ● 40 years a
Slide 16: FY22: Outlook
FY22: Outlook Continuing to target a return to monthly profitability in both corporate & leisure • Timing uncertain & largely in government hands – relies on borders opening & staying open, international travel resuming with fewer restrictions • Uncertainty means FLT is not currently able to provide
Slide 17: FY22: Outlook
FY22: Outlook Expecting tangible returns on pandemic-period investments as the world reopens • Now a leaner & more efficient organisation - well placed to benefit as the cycle improves • Successfully executing key productivity strategies & achieving operational objectives in both corporate & leisure
Slide 18: FY22: Travel industry poised for rapid take-off
FY22: Travel industry poised for rapid take-off Trading conditions improving – vaccination programs gaining momentum globally 18
Slide 19: FY22: Trading update
FY22: Trading update Global travel outlook now considerably brighter • Evidenced by Australia & USA announcements last week • Singapore also reopening Positive early signs in Australia • Surge in enquiry + bookings growth • International leisure bookings have now surpassed domestic bookings in Austr
Slide 20: FY22: Increased AU store quotes & bookings
FY22: Increased AU store quotes & bookings • Recent reopening announcements in Australia have already led to increased quotes & bookings across the Australian leisure store network • Week on week growth in quoted TTV currently exceeds growth in booked TTV, as expected at this early stage of recovery
Slide 21: FY22: Shift in AU store sales mix to International
FY22: Shift in AU store sales mix to International Pre-Covid During lockdown Post border announcements • In Australia, recent reopening announcements have prompted a surge in international enquiry & bookings in our leisure stores, with international TTV booked so far in October exceeding domestic TT
Slide 22: FY22: Learning from the USA & South Africa
FY22: Learning from the USA & South Africa • Drawing on our experiences so far in other locations that have experienced strong & immediate leisure rebounds • United States & South Africa • Bringing back FTEs in Australia to service the likely surge in demand • COVID support desks being developed to
Slide 23: FY22: Continued gross TTV growth during Q1
FY22: Continued gross TTV growth during Q1 Note: Gross TTV excludes refunds 23
Slide 24: Trading Update: Global Activity - September 2021
Trading Update: Global Activity - September 2021 Sales gradually increasing and tracking at +27% of pre-COVID levels globally Group 27% Canada Corporate 41% Corporate 38% Leisure 14% Europe Leisure 11% Corporate 59% UK Corporate 39% United States Leisure 7% Corporate 35% Greater China Leisure 36% Co
Slide 25: Cash outflow – September 21
Cash outflow – September 21 Net cash outflow ($m) Sept 2021 Hibernation operational costs (82) Capex (1) Hibernation cash costs (83) Variable costs (11) Total cash outflow (94) Cash revenue 52 Net operating cash run rate (42) Government subsidies 1 Current net operating cash outflow (41) All figures
Slide 26: FY22: Q1 results
FY22: Q1 results Results generally in line with expectations • Cash ouflows impacted by decreased revenue during ANZ lockdowns, seasonality (extended Northern Hemisphere summer holidays), removal of government subsidies & significant investment ramp-up ahead of anticipated surge in demand when borde
Slide 27: FY22: Corporate Q1 results & trading update
FY22: Corporate Q1 results & trading update Continued corporate sector recovery = Growing to Win • Corporate businesses globally contributed circa $AUD1b to Q1 group TTV • Further foundations for organic market-share growth established – fuelled by strong account wins & high retention • Accounts wit
Slide 28: Why we win – Global Category Leading Brands
Why we win – 2 Global Category Leading Brands The only alternative to The World's largest SME focussed TMC, offering a the traditional 3 TMCs unique blend of seamless offering global technology, dedicated experts, consistency, flexibility, strong culture and the widest strong culture, the widest cho
Slide 29: Proprietary Tech
Proprietary Tech Putting customers first • In beta testing Hierarchy of needs have • Pilot customers in September 2021 changed for customers • Global availability in January 2022 • From cost to duty of care • From offline to digital service • From 9-5 to 24/7 • From simple to need for advice • Key f
Slide 30: Leisure: Full year update and highlights
Leisure: Full year update and highlights Structural change complete • Shop & brand network rationalised - accessibility maintained for customers • New growth models - developed & deployed Positioning for recovery • Investment in leading digital technologies to enhance offering across all channels –
Slide 31: Global leisure model TTV shift – FY19 to FY24
Global leisure model TTV shift – FY19 to FY24 Note: Complementary includes GOGO and Ignite and excludes Travel Money. 31
Slide 32: Resolutions
Resolutions FLIGHT,CENTRE TRAVEL GROUP”
Slide 33: Resolution 1: Re-election of Director - Colette Garnsey
Resolution 1: Re-election of Director - Colette Garnsey The number of proxies received for the resolution is: Decision Count % For 85,254,241 98.08 Against 1,299,028 1.49 Open 374,287 0.43 Abstain 529,305 33
Slide 34: Resolution 2: Re-election of Director - Robert Baker
Resolution 2: Re-election of Director - Robert Baker The number of proxies received for the resolution is: Decision Count % For 85,531,703 98.42 Against 998,222 1.15 Open 375,122 0.43 Abstain 551,814 34
Slide 35: Resolution 3: Remuneration Report Adoption
Resolution 3: Remuneration Report Adoption The number of proxies received for the resolution is: Decision Count % For 69,055,431 97.83 Against 1,133,157 1.61 Open 389,902 0.56 Abstain 708,411 35
Slide 36: Resolution 4: Approval of the issue of Notes
Resolution 4: Approval of the issue of Notes (refresh placement capacity) The number of proxies received for the resolution is: Decision Count % For 86,062,059 99.07 Against 402,736 0.46 Open 405,206 0.47 Abstain 586,859 36
Slide 37: Resolution 5: Approval of the grant of Global Recovery Rights
Resolution 5: Approval of the grant of Global Recovery Rights (refresh placement capacity) The number of proxies received for the resolution is: Decision Count % For 86,089,947 99.11 Against 375,932 0.43 Open 396,962 0.46 Abstain 594,024 37
Slide 38: Resolution 6: Approval of the grant of PCRP Rights
Resolution 6: Approval of the grant of PCRP Rights (refresh placement capacity) The number of proxies received for the resolution is: Decision Count % For 81,667,478 96.98 Against 2,136,597 2.54 Open 401,250 0.48 Abstain 3,251,535 38
Slide 39: Resolution 7: Future issuances under Employee Share Plan
Resolution 7: Approval of future issuances under the Flight Centre Employee Share Plan (ESP) The number of proxies received for the resolution is: Decision Count % For 86,120,453 99.14 Against 330,395 0.39 Open 407,693 0.47 Abstain 536,166 39
Slide 40: Resolution 8: Future issuances under Long Term Retention Plan
Resolution 8: Approval of future issuances under the Flight Centre Long Term Retention Plan (LTRP) The number of proxies received for the resolution is: Decision Count % For 79,189,408 91.13 Against 7,307,994 8.42 Open 395,881 0.45 Abstain 532,024 40
Slide 41: Resolution 9: Amendments to the Constitution
Resolution 9: Amendments to the Constitution The number of proxies received for the resolution is: Decision Count % For 69,183,594 79.69 Against 17,242,757 19.86 Open 391,167 0.45 Abstain 639,343 41
Slide 42: End of Presentation
End of Presentation General Questions?
Flight Centre Travel Group — Shareholder Meeting (October 2021) on 6ix