Slide 1: 1H17 Results Update
1H17 RESULTS UPDATE John Guscic Managing Director 23 February 2017
Slide 2: 1H17 Highlights
1H17 Results Webjet 1H17 Highlights B2C HIGHLIGHTS • Webjet continues to outperform the market by more than 5 times Continuing Reported Operations • Online Republic integration complete; delivering growth • Zuji sale completed - $26.8 million gain TTV $ 1,025m $ 900m Up 28.8% Up 35.1% B2B WEBBEDS HI
Slide 3: 1H17 Highlights - Reported Results
1H17 Results 1H17 Highlights - Reported Results Reported results include $26.8 million gain on sale of Zuji Reported Continuing Operations $ millions 1H 17 1H 16 Incr / (Decr) 1H 17 1H 16 Incr / (Decr) TTV 1,025 796 229 28.8% 900 667 234 35.1% Revenue 124.5 73.8 50.7 68.8% 92.0 62.1 29.8 48.0% EBITD
Slide 4: 1H17 Highlights – Continuing Operations
1H17 Results 1H17 Highlights – Continuing Operations B2C outperforms market; B2B growth initiatives delivering Reported Continuing Operations $ millions 1H 17 1H 16 Incr / (Decr) 1H 17 1H 16 Incr / (Decr) TTV 1,025 796 229 28.8% 900 667 234 35.1% Revenue 124.5 73.8 50.7 68.8% 92.0 62.1 29.8 48.0% EB
Slide 5: Segment Summary
1H17 Results Segment Summary 1H 17 1H 16 Inc. / (Dec.) TTV $m $m $m % Group TTV (1) up 35.1% - Webjet 535 480 55 11.5% - Online Republic 131 0 131 n/a - Sunhotels - LOH 124 110 93 94 31 16 33.0% 17.3% 38.8% Webjet TTV 11.5% - FIT Ruums Continuing Operations 1 900 0 667 1 234 n/a 35.1% B2C TTV Online
Slide 6: Strong Organic Growth; TTV Margins Increasing
1H17 Results Strong Organic Growth; TTV Margins Increasing NUMBER OF BOOKINGS REVENUE/TTV MARGIN (1) 10.2% 10.2% 9.4% 9.3% 1H14 1H15 1H16 1H17 1H14 1H15 1H16 1H17 Webjet LOH Sunhotels Online Republic Fit Ruums • Higher TTV margins across all businesses • B2C: Growth in higher margin products • 3 yea
Slide 7: Strong Balance Sheet
1H17 Results Strong Balance Sheet Dec / Jun Dec / Dec $m Dec-16 Jun-16 Dec-15 Change Change Cash 95.0 116.2 69.6 (21.3) 25.4 Other current assets 150.2 90.2 54.5 60.0 95.7 Non-current assets 178.5 171.6 89.3 6.9 89.2 Total Assets 423.6 378.0 213.4 45.7 210.2 Current liabilities 160.9 197.1 93.5 (36.
Slide 8: Investment Supporting Growth
1H17 Results Investment Supporting Growth Summary Cash Flow 1H 17 2H 16 1H 16 $m $m $m Cash flow from Operating Activities (1.4) 40.6 6.0 Zuji Completion Cash (1) 6.0 Adjusted Cash from Operations 4.6 40.6 6.0 Cash flow from Investing Activities (39.3) (63.3) (4.2) Cash flow from Financing Activitie
Slide 9: Ongoing Capital Investment
1H17 Results Ongoing Capital Investment 1H17 1H16 2H16 FY16 1H17 vs 1H16 B2B 2.0 1.6 2.0 3.6 A$ 0.4m Up 24.7% B2C 3.2 2.6 2.8 5.4 A$ 0.6m Up 22.1% TOTAL 5.2 4.2 4.8 9.0 A$ 1.0m Up 23.1% TTV from Continuing Operations up 35% CAPEX • FY17 CAPEX expected to be $ 10.5 million B2B (CAPEX) • Enhanced cach
Slide 10: Fully Franked Interim Dividend of 7.5 Cents – Up 15%
1H17 Results Fully Franked Interim Dividend of 7.5 Cents – Up 15% Cents Paid – Fully Franked 8.00¢ 7.25¢ 7.25¢ 7.00¢ 7.50¢ 6.00¢ 6.25¢ 6.25¢ 6.50¢ FY13 FY14 FY15 FY16 FY17 Interim Final 10
Slide 11: B2C Travel
B2C TRAVEL Online travel agency
Slide 12: B2C Summary (Continuing Operations)
1H17 Results Webjet B2C Summary (Continuing Operations (1)) A$ 1H16 1H17 Change TTV $480m $666m $186m 38.8% 52.6% TTV Revenue Revenue $44.8m $68.4m $23.6m Costs $27.3m $40.9m $13.5m 49.5% 57.4% EBITDA $17.5m $27.5m $10.0m Costs EBITDA (1) Excludes Zuji 12
Slide 13: B2C Travel B2B WebBeds
B2C Travel B2B WebBeds Australia New Zealand Middle East Europe Asia New Zealand Africa North America
Slide 14: Strong Growth Continues
1H17 Results Webjet Strong Growth Continues Business performance remains strong • TTV up 11.5% year on year; continue to see record TTV each month • Bookings up 10% year-on-year; domestic bookings slowed in Q1 but picked up again in Q2 • 1H17 EBITDA of $20.4 million, up more than 16% year-on-year (1
Slide 15: Bookings Continue to Move Online
1H17 Results Webjet Bookings Continue to Move Online % TTV (1H17) % Bookings (1H17) 10% 14% 37% Year-on-year Webjet bookings 63% 1.2% 0.6% International 86% Domestic ABV International ABV Domestic Webjet growth Webjet Growth Market Growth continues to outperform the market by more 8% Webjet Domestic
Slide 16: Higher Margin Revenue Streams Growing
1H17 Results Webjet Higher Margin Revenue Streams Growing Packages • Webjet packages TTV growing at more than 65% year on year • Exclusives has shifted its market position to focus on Tours; no longer included in Packages Exclusives • Exclusives TTV declined year on year as a result of changes to re
Slide 17: B2C Travel B2B WebBeds
B2C Travel B2B WebBeds Australia New Zealand Middle East Europe Asia New Zealand Africa North America
Slide 18: Online Republic Delivering Growth
1H17 Results Online Republic Delivering Growth Business meeting acquisition expectations • Integration completed • TTV up 15.6% year on year; EBITDA contribution of $ 7.2 million, up 27.3% year on year Online Republic 1H16 (1) 1H17 • Motorhomes, cruise and car hire businesses TTV $114m $ 131m all gr
Slide 19: B2C Travel B2B WebBeds
B2C Travel B2B WebBeds Australia New Zealand Middle East Europe Asia New Zealand Africa North America
Slide 20: Sale of ZUJI Completed
1H17 Results Sale of ZUJI Completed • Zuji was sold to Uriel Aviation Holding Ltd, a Hong Kong based travel technology business in November 2016 Zuji 1H16 1H17 • Sale completed effective 31 TTV $ 129m $ 124m December 2016 Revenue $ 11.6m $ 11.2m • Purchase price of $56 million (1) EBITDA n/a $ 0.2m
Slide 21: B2B WebBeds
B2B WebBeds Digital provision of hotel rooms to global partners
Slide 22: The B2B Market Opportunity
1H17 Results The B2B Market Opportunity Europe Asia Middle East/Africa The Americas Market Size $20 Billion $18 Billion $3 Billion $15 Billion Highly Experienced Management Team Over 100 years Over 100 years Over 100 years Over 50 years B2B experience for the B2B experience for the B2B experience fo
Slide 23: The B2B Journey to Date
1H17 Results The B2B Journey to Date Mix of organic start up and acquisition Feb 2013: Started with LOH in Dubai as an organic start up, initially serving the Middle East and Africa markets Jul 2014: Purchased Sunhotels to service the European markets, creating a unique position in beach destination
Slide 24: B2B Summary
1H17 Results B2B Summary A$ 1H16 1H17 Change TTV $187m $235m $48m 25.4% TTV 36.3% Revenue Revenue $17.3m $23.6m $6.3m Costs $14.0m $17.4m $3.4m 24.3% 87.2% EBITDA $3.3m $6.2m $2.9m Costs EBITDA 24
Slide 25: B2B WebBeds B2C Travel
B2C Travel B2B WebBeds Australia New Zealand Middle East Europe Asia New Zealand Africa North America
Slide 26: Delivering Strong Market Share Growth
1H17 Results Delivering Strong Market Share Growth Delivering growth in a difficult market • TTV up 17.3% year on year • Up 23% in base currency LOH 1H16 1H17 Impressive bookings growth TTV $ 94m $ 110m • Market showing signs of improvement; Growth 17.3% 1H17 bookings up 44% year on year • Gaining m
Slide 27: Growth Profile
1H17 Results Growth Profile Growth destinations benefiting from Sunhotels inventory Major Source Markets Major Destinations › Saudi Arabia › United Arab Emirates › United Arab Emirates › United Kingdom › Qatar › USA › South Africa › Saudi Arabia › Americas › France Top Growth Source Top Growth Desti
Slide 28: B2C Travel B2B WebBeds
B2C Travel B2B WebBeds Australia New Zealand Middle East Europe Asia New Zealand Africa North America
Slide 29: FY17 Investment Delivering Growth
1H17 Results FY17 Investment Delivering Growth Delivering strong TTV growth • TTV up 33% year on year - Up 40% in base currency • TTV margins increased year on year; impact of higher proportion of directly contracted hotels Sunhotels 1H16 1H17 and Thomas Cook management fee TTV $ 93m $ 124m • Strong
Slide 30: Growth Profile
1H17 Results Growth Profile Extended market leading position in Nordics; market expansion coming through in key markets Major Source Markets Major Destinations › United Kingdom › Spain › Sweden › Greece › Norway › USA › Spain › Italy › Denmark › United Kingdom Top Growth Source Top Growth Destinatio
Slide 31: B2C Travel B2B WebBeds
B2C Travel B2B WebBeds Australia New Zealand Middle East Europe Asia New Zealand Africa North America
Slide 32: Asian B2B Entry Strategy Launched November 2016
1H17 Results Asian B2B Entry Strategy Launched November 2016 Next step in our B2B growth strategy • Asian market represents second largest global B2B market • FIT Ruums launched 23 November FITRuums 1H16 1H17 2016 TTV n/a $ 1m Growth n/a Tracking ahead of expectations • Currently operating in South
Slide 33: Blockchain
1H17 Results Blockchain • Multiple intermediaries in the distribution of hotel rooms to consumers • Each intermediary has a discrete booking/reservations system and set of practices Background • No common booking reference or ID and no validation that the information held about a booking is the same
Slide 34: Blockchain – Key Activities to Date
1H17 Results Blockchain – Key Activities to Date Jan 2017 - Ongoing • Deploying real time user dashboards and reporting • Enhancing stability and scalability • Enabling sensitive data to be utilised without Oct – Dec 2016 compromising privacy • Redeployed Blockchain on Microsoft Ethereum platform •
Slide 35: 2H17 YTD
2H17 YTD
Slide 36: 2H17 YTD – Strong Performance Across All Businesses
1H17 Results 2H17 YTD – Strong Performance Across All Businesses 5 year CAGR tracking ahead of plan • Webjet bookings currently growing at more than 14% B2C • Online Republic bookings currently growing at more than 24% • We continue to track ahead of our 5 year CAGR EBITDA target of 10%+ for our B2C
Slide 37: FY17 Guidance
‘webjet limited
Slide 38: FY17 - Guidance Upgrade
1H17 Results FY17 - Guidance Upgrade Increasing FY17 guidance to $80 million EBITDA Based on strong performance across all businesses for FY17 YTD, we are increasing FY17 EBITDA guidance to $80 million: • $61.1 million EBITDA for the continuing businesses – Webjet, Online Republic, Lots of Hotels, S
Slide 39: Thank You
THANK YOU February 2017 =* sunhotels a aoe