Web Travel Group Limited · ASX:WEB
Web Travel — Investor Presentation (June 2019)
26 slides from Web Travel's investor presentation, Jun 18, 2019
Slide 1: Introducing Rezchain and Rezpayments
Introducing Rezchain and Rezpayments Investor session: Melbourne 18 June 2019 John Guscic: Managing Director Lynne Oldfield: Director Corporate Development
Slide 2: Technology underpins our success
Technology underpins our success Rezchain is a critical component in moving from an “8/5/3” structure to an “8/4/4” in our WebBeds business by FY22: Key Driver • 8% revenue/TTV for • 4% costs/TTV • 4% EBITDA/TTV Delivering Scale Rezpayments reduces compliance costs and improves control Benefits
Slide 3: Introducing Rezchain
Introducing... ~ rezchain.
Slide 4: What is Blockchain?
What is Blockchain? ▪ A time-stamped series of immutable records of data that is managed by a cluster of independent computers not owned by any single identity in a peer to peer network. ▪ It is often referred to as a ledger; all the previous states are present on the chain with all the “ins” and “o
Slide 5: What makes Blockchain great?
What makes Blockchain great? ▪ Robustness! All those replicas on machines scattered around the globe make it almost immune to downtime ▪ Multiple replications of the full chain ▪ Geographical hardiness ▪ Consensus – 51% or more must agree ▪ Zero transaction costs ▪ Hashing is a one way street
Slide 6: What makes Blockchain a bit of a challenge?
What makes Blockchain a bit of a challenge? ▪ Speed - all that mining and replication takes time ▪ On a public blockchain, the transaction competes for attention, there’s no such thing as FIFO ▪ Unpredictable gas costs & high energy requirements for Proof of Work ▪ Data on a blockchain can be read b
Slide 7: … and Travel
What are some suitable real world use cases? ▪ Cryptocurrency and payments ▪ Voting ▪ Digital identity ▪ Any sort of ticketing ▪ Land registry ▪ Copywrite, trademark registration, IP protection ▪ Tracking provenance ▪ Music/video/content distribution ▪ Logistics/supply chains ▪ Validating data in is
Slide 8: Who are we?
Who are we? ▪ Rezchain is part of WebBeds, the B2B division of Webjet Limited ▪ Launched in 2016, we are the first travel company to have a functioning blockchain - processing transactions between 2 parties each day ▪ Our Melbourne based team of Developers, Business Analysts and Systems Architects h
Slide 9: What is the problem Rezchain is solving?
What is the problem Rezchain is solving? ▪ Settlement between hotel suppliers and travel partners is a complex, time consuming and ultimately costly process ▪ Multiple IT systems speaking different languages often leads to a painful reconciliation process and high risk of error ▪ As a result, signif
Slide 10: What are the kinds of discrepancies that can occur?
What are the kinds of discrepancies that can occur? There are many different components / areas of hotel reservations that can mismatch during the life of a booking These can include: • Price • Duration • Booking status • Currency Mismatches are often found months after bookings are created • Board
Slide 11: What does that look like in numbers?
What does that look like in numbers? Up to 1 in every 25 bookings results in a situation where a 4% service is provided but never invoiced Approximately 1 in every 3 all hotel bookings are amended in 33% some way after the reservation was first made 1 in every 10 bookings experience some kind of man
Slide 12: What have we built?
What have we built? ▪ A simple solution designed to allow any 2 parties to verify that booking data matches ▪ This “handshake” occurs each time a booking is made or updated ▪ Parties are notified if any discrepancies exist that could lead to a dispute ▪ Action can then be taken immediately to correc
Slide 13: Why use Blockchain to solve this problem?
Why use Blockchain to solve this problem? ▪ There is no single owner of the Blockchain and processing power can be contributed by any of the relevant parties. This decentralised approach leads to a greater level of trust. ▪ The solution is inherently robust as copies of the ledger are held across mu
Slide 14: Our case study
Our case study: We looked at 40 randomly selected “in-dispute” bookings 11 hours of labour was required to investigate these bookings $ 70% of these bookings resulted in a hard loss % We found that 90% of this loss could have been avoided using Rezchain technology to flag these discrepancies before
Slide 15: Rezchain is delivering against our expectations
Rezchain is delivering against our expectations: reducing costs and offering a competitive service advantage Version 5 is currently implemented across all our WebBeds platforms ▪ DOTW platform went live in April 2019 Rezchain is helping drive efficiencies across our WebBeds businesses ▪ Streamlining
Slide 16: Introducing Rezpayments
Introducing... Rezpayments
Slide 17: Our in-house PCI compliance solution
Our in-house PCI compliance solution
Slide 18: The need for PCI compliance
All companies that accept credit card payments are required to comply with the Payment Card Industry (PCI) Data Security The need for Standard PCI compliance Credit cards are widely used in our B2C businesses, as well as within certain parts of our WebBeds operations
Slide 19: What have we built?
Unable to find a suitable “off the shelf” solution that offered sufficient flexibility, we built our own PCI compliance solution – Rezpayments. Rezpayments allows a company to easily implement a solution that captures the customer’s credit card data, directs it to Rezpayments where it is exchanged f
Slide 20: Developing the optimal solution for Webjet
At Webjet, we leverage multiple APIs for fraud checking and payments. These are downstream third party API connections which need to act on the card information we receive through our selling channels. Developing We have to offer a secure, PCI the optimal compliant bridge between us solution for and
Slide 21: Already delivering efficiencies
Rezpayments is currently implemented in the Webjet OTA and Online Republic businesses (motorhomerepublic.com, airportrentals.com and cruisesalefinder.com) Already delivering efficiencies It reduces scope of risk impact in our overall environment by isolating our impacted environment for PCI complian
Slide 22: New market opportunities
Rezpayments has applicability for other companies that accept credit cards online Helps address PCI compliance concerns and reduces the cost of PCI compliance New market Enables secure storage and handling of credit card data opportunities Allows Rezpayments users to rely on the Rezpayments Attestat
Slide 23: Technology underpins our success
Technology underpins our success Rezchain – the first workable blockchain in the travel industry A Rich History of Innovation Rezpayments – creates a flexible, cost effective solution to Continues solve a complex and highly critical component of the payments lifecycle
Slide 24: FY19 guidance
FY19 guidance We reconfirm FY19 guidance We remain on track to deliver at least $120 million EBITDA (excluding one-offs associated with the acquisition of DOTW), including all start up costs associated with Umrah Holidays International
Slide 25: Q&A
Q&A
Slide 26: Thank you
ps webjet limited Thank you