Slide 1: FY16 Investor Presentation
FY16 CEO Andrew Burnes CFO Michael Burnett
Slide 2: Disclaimer
Disclaimer The informa,on included in this presenta,on may not be reproduced or distributed to any third party or published in whole or part for any purpose. The informa,on contained in these materials or discussed at the presenta,on is not intended to be an offer for subscrip,on, invita,on or recomm
Slide 3: Agenda
Agenda 1. Overview 2. Financial Performance 3. Business Overview 4. Growth and Outlook FY16 Investor Presentation • PAGE 3 Helloworld Limited
Slide 4: FY16 Results Overview
FY16 Results Overview • Organic TTV growth Reported Excluding AOT Feb-Jun 16 • Revenue stable but impacted by competitive pressures TTV 8% on TTV 5% on • Continued focus on cost control $5,088m FY15 $4,936m FY15 • Expenses in FY16 impacted by merger costs 0% on • AOT merger approved by Revenue Reven
Slide 5: Key Highlights
Key Highlights • Merger with AOT successfully completed February 1st, 2016 • Winners of Best Travel Agency Group, Best Non-Branded Agency Group and Best Domestic Wholesaler at 2016 NTIA Awards • Synergies & cost reductions identified $17.1 million (which have one-off costs of $3.5 million) • New two
Slide 6: Financial Performance
Financial Performance FY16 Investor Presentation • PAGE 6 Helloworld Limited
Slide 7: Full Year Result
Full Year Result FY16 FY15 Change FY16 Pro-Forma (3) $m $m % $m Total Transaction Value (TTV) (1) 5,088.0 4,696.2 8.3% 5,327.5 Revenue 297.9 279.2 6.7% 334.5 Gross Margin 5.9% 5.9% - 6.3% EBITDA (2) 25.3 24.1 5.2% 40.3 EBITDA % of Revenue 8.5% 8.6% (1.2%) 12.0% Profit/(Loss) before tax 3.5 (198.4) 1
Slide 8: Pro-Forma EBITDA FY16
Pro-Forma EBITDA FY16 FY16 Investor Presentation • PAGE 8 Helloworld Limited
Slide 9: Significant one-off items
Significant one-off items FY16 FY15 $m $m AOT merger costs - 3.8 Redundancy costs - 1.8 1.6 Business transformation costs 2.9 GST matter (recovery)/costs (1.8) 0.6 TOTAL 6.7 2.2 • AOT acquisition costs from merger incurred by HLO • Business Transformation - Helloworld NZ Rebranding ($1.6m) and Reswo
Slide 10: Retail Segment
Retail Segment FY16 FY15 Change $m $m % Total Transaction Value (TTV) 3,550.0 3,429.1 3.5% Revenue 147.5 151.9 (2.9%) Gross Margin 4.2% 4.4% (4.5%) Operating expenses (114.5) (120.0) 4.5% EBITDA 33.0 31.9 3.2% Shared Service costs and allocations (26.8) (21.2) (26.2%) Net profit/(loss) excluding imp
Slide 11: Retail - EBITDA FY16
Retail - EBITDA FY16 FY16 Investor Presentation • PAGE 11 Helloworld Limited
Slide 12: Wholesale Segment
Wholesale Segment FY16 FY15 Change FY16 Pro-Forma $m $m % $m Total Transaction Value (TTV) 801.8 667.1 20.2% 1,041.3 Revenue 96.7 82.3 17.5% 133.2 Gross Margin 12.1% 12.3% (1.6%) 12.8% Operating expenses (80.1) (69.9) (14.6%) (95.5) EBITDA before Shared Services 16.6 12.4 33.6 % 37.7 Shared Services
Slide 13: Wholesale - EBITDA FY16
Wholesale - EBITDA FY16 FY16 Investor Presentation • PAGE 13 Helloworld Limited
Slide 14: Travel Management Segment
Travel Management Segment FY16 FY15 Change $m $m % Total Transaction Value (TTV) 736.2 600.0 22.7% Revenue 50.4 41.1 22.6% Gross Margin 6.9% 6.9% - Operating expenses (39.3) (35.9) (9.5%) EBITDA before Shared Services 11.1 5.2 112.9% Shared Services costs and allocations (9.7) (7.8) (24.0%) Net prof
Slide 15: Travel Management - EBITDA FY16
Travel Management - EBITDA FY16 FY16 Investor Presentation • PAGE 15 Helloworld Limited
Slide 16: Corporate Segment (Shared Services costs)
Corporate Segment (Shared Services costs) FY16 FY15 Change FY16 Pro-Forma $m $m % $m Revenue 3.3 3.9 (15.2%) 3.3 Operating expenses (38.7) (29.4) (31.6%) (44.7) Shared Services net costs (35.4) (25.5) (38.7%) (41.4) Depreciation/amortisation/Interest (21.8) (17.2) (27.4%) (23.7) Net Operating Expens
Slide 17: Corporate (Shared Services) – Net Costs FY16
Corporate (Shared Services) – Net Costs FY16 FY16 Investor Presentation • PAGE 17 Helloworld Limited
Slide 18: EBITDA to NPAT reconciliation
EBITDA to NPAT reconciliation FY16 FY15 FY16 Pro-Forma $m $m $m EBITDA 25.3 24.0 40.3 Depreciation/amortisation (18.4) (13.9) (20.1) Interest costs (3.4) (3.2) (3.6) Impairment - (205.3) - Net profit/(loss) before tax 3.5 (198.4) 16.6 Income tax expense (1.8) (2.7) (5.1) Net profit/(loss) after tax
Slide 19: Liquidity and funding
Liquidity and funding FY16 FY15 $m $m Total Facility available 95.6 96.0 Drawn Debt (47.5) (24.9) Multi-option Facilities (incl. bank guarantees) (12.0) (10.3) Headroom 36.1 60.8 Company cash 26.2 27.4 Client cash 176.4 148.7 Total cash 202.6 176.1 • Strong Balance Sheet and Liquidity position • Dra
Slide 20: Business Overview
Business Overview FY16 Investor Presentation • PAGE 20 Helloworld Limited
Slide 21: Helloworld’s strengths
Helloworld’s strengths Scale & Inbound Enhanced Larger, Additional Material Diversity Travel Govt & Corp More Expertise Financial Services & Competitive & Stability Benefits Wholesale Offerings • Pro forma historical • AOT Group a leading • AOT’s strong history • Larger network in • Strong managemen
Slide 22: Merger significantly strengthens HLO
Merger significantly strengthens HLO Inbound Retail Travel Travel Management Wholesale AOT Hotels FY16 Investor Presentation • PAGE 22 Helloworld Limited
Slide 23: Retail Segment Review
Retail Segment Review • Launched My Travel Group to consolidate the Helloworld Affiliate network and Concorde Agency Networks • Helloworld Brand launched into New Zealand Market – currently 238 members (52 Branded, 6 Associates, 100 affiliates and 80 Travel Broker members) • Awarded Best Travel Agen
Slide 24: New technologies – Clicks and Mortar strategy
New technologies – Clicks and Mortar strategy 1 2 3 Helloworld.com.au ResWorld Agent Micro Sites • Site Relaunch • In-house consultant • Fully branded September, 2016 portal agency portals • Consolidating • Enhance the • Driving consultant agent customer partnerships productivity & outlet experience
Slide 25: A unique and diverse value proposition for members
A unique and diverse value proposition for members BRANDED INDEPENDENT AUSTRALIA & NEW ZEALAND AUSTRALIA & NEW ZEALAND BRANDED MODEL CORPORATE MODEL ASSOCIATE MODEL INDEPENDENT MODEL JUNE 15: 285 JUNE 15: 1408 JUNE 16: 282 JUNE 16: 1301 • Branded store numbers have stabilised • Independent member nu
Slide 26: Wholesale Segment Review
Wholesale Segment Review • Feb 16 – AOT and HLO merge. New wholesale brands include Sunlover Holidays, Territory Discoveries, needitnow.com, Best Rates, Need to Escape, Travelmate and NSW Holidays • Key initiative being identifying synergies between HLO and AOT wholesale brands to deliver improved m
Slide 27: Travel Management Segment Review
Travel Management Segment Review • Significant growth primarily reflects the appointment of QBT as the sole provider of travel management to the WoAG (142 Fed Govt agencies) • QBT appointed sole provider of travel management services for the Northern Territory Government (from April 2016) and PwC (f
Slide 28: Analysis of Synergies & Cost Reduction
Analysis of Synergies & Cost Reduction Merger Synergies and Cost Reductions One-off costs associated with implementation of merger synergies and cost reductions $10.3m synergies $2.4m one to be off costs actioned to be actioned $6.8m synergies actioned $1.1m one off costs actioned Management and sup
Slide 29: Growth and Outlook
Growth and Outlook FY16 Investor Presentation • PAGE 29 Helloworld Limited
Slide 30: Outlook: Business Focus
Outlook: Business Focus 1 2 3 4 5 6 Business Agent Technology Cost Control & Brand Organic Integration Focus Efficiencies Awareness Growth • Focus on • More clearly • ResWorld • Remuneration • NZ rollout • Asia improving articulating • helloworld.com.au • Property • Ongoing build • Inbound margins v
Slide 31: Outlook
Outlook • FY17 TTV expected to be between $5.3 billion and $5.4 billion • FY17 EBITDA expected to be in the range of $46.0 million to $51.0 million • Merger expected to deliver synergy and cost reductions of $17.1 million per annum with approximately $3.5 million in one-off associated costs. Complet
Slide 32: Helloworld Limited – Thank you
Thank you Helloworld Limited