Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — H1 2023 Earnings Presentation
26 slides from Corporate Travel Management's earnings presentation, Feb 15, 2023
Slide 1: Half Year Results Presentation
ASX Announcement 15 February 2023 Half Year Results Presentation Attached is a copy of Corporate Travel Management’s Limited Half Year Results Presentation for the half year ended 31 December 2022. Authorised for release by the Board. Contact details Media enquiries: Alasdair Jeffrey – Rowland – Ala
Slide 2: Corporate Travel Management Half Year 2023 Results
Corporate Travel Management Half Year 2023 Results
Slide 3: Disclaimer
Disclaimer The information in this presentation contains summary information about the current activities of Corporate Travel Management Limited ACN 131 207 611 (Company) and its subsidiaries. It should be read in conjunction with the Company’s other periodic and continuous disclosure announcements
Slide 4: Index
HY23 RESULTS Index CTM 1H23 Highlights 4 Regional Performance 8 Group Financial Summary 16 FY23-24 Outlook 20 Page 3
Slide 5: CTM 1H23 Highlights
CTM 1H23 Highlights
Slide 6: 1H23 Group financial highlights
1H23 Group financial highlights • Record 1H TTV, revenue. A testament to strategy, client Change on wins and financial strength through COVID Reported ($AUDm) 1H23 P.C.P • Generating fast growing PBT and NPAT, reinforcing CTM’s TTV (unaudited) 4,199.0 +102% recovery and return to ‘business as usual’
Slide 7: The recovery trajectory to FY24 – on track
HY23 RESULTS The recovery trajectory to FY24 – on track AUD$M FY23: record FY191 pro-forma 950 revenue & revenue EBITDA $160- 850 180m 750 650 550 FY19 revenue level 450 Revenue 350 250 FY19 EBITDA level 150 EBITDA 50 -50 FY19 FY20 FY21 FY22 Forecast FY23 FY24 Outlook Record FY20-21 COVID impact FY2
Slide 8: People- Investment in rebuilding and reconnecting
HY23 RESULTS People- Investment in rebuilding and reconnecting • Experienced and trusted leadership team - 30 years+ travel experience, across MD, global COO, all regional CEO’s. • Rebuilt workforce with capacity for future servicing, welcoming back alumni and opening new recruitment markets via the
Slide 9: Regional Performance
Regional Performance
Slide 10: Group overview
HY23 RESULTS Group overview p.c.p. (AUD$m) 1H23 1H22 change TTV 4,199.0 2,083.1 +102% Revenue and other income 291.9 163.0 +79% Underlying EBITDA 51.3 18.2 +182% EBITDA / Rev & Oth Inc Margin 17.6% 11.2% 1H23: Outlook: • Record 1H TTV and revenue • Strong momentum into 2H23 due to significant new cl
Slide 11: GBTA Pulse survey Jan 2023- CTM recovery ahead of this data
HY23 RESULTS GBTA Pulse survey Jan 2023- CTM recovery ahead of this data GBTA survey response: company’s current business travel CTM ahead of compared to the pre-pandemic (2019) level1 recovery GBTA 70% data (revenue/ booking 60% volume) vs 50% FY19: NA c73% 40% ANZ c78% EU c146% 30% 20% 10% 0% Dome
Slide 12: North America
HY23 RESULTS North America p.c.p. (AUD$m) 1H23 1H22 change TTV 1,431.7 949.0 +51% Revenue and other income 145.8 92.0 +58% Underlying EBITDA 16.6 6.0 +177% EBITDA / Rev & Oth Inc Margin 11.4% 6.5% 1H23 Outlook: • Record 1H TTV, revenue • Corporate recovery has resumed, with January booking volumes h
Slide 13: NA Spotlight - Highly leveraged to small activity recovery (AUD)
HY23 RESULTS NA Spotlight - Highly leveraged to small activity recovery (AUD) Revenue Recovery1 1H23 c73% at 80% at 100% Revenue per month2 $24.3m $27.0m $33.0m Cost base per month2 ($20.3m) ($21.0m) ($23.0) EBITDA per month2 $4.0m $6.0m $10.0m Rev/EBITDA margin 16.5% 22.2% 30.3% Take-aways: 1. Reve
Slide 14: Europe
HY23 RESULTS Europe p.c.p. (AUD$m) 1H23 1H22 change TTV 924.3 806.5 +15% Revenue and other income 45.2 43.8 +3% Underlying EBITDA 17.0 20.9 (19%) EBITDA / Rev & Oth Inc Margin 37.6% 47.7% 1H23 Outlook • TTV, revenue, EBITDA all exceeding 1H19 • Jan ‘23 was a record profit despite Jan being seasonall
Slide 15: ANZ
HY23 RESULTS ANZ p.c.p. (AUD$m) 1H23 1H22 change TTV 1,329.8 238.6 +457% Revenue and other income 80.7 21.1 +283% Underlying EBITDA 23.5 0.9 +2511% EBITDA / Rev & Oth Inc Margin 29.1% 4.3% 1H23 Outlook • Record TTV and revenue. TTV trading beyond • China opening is expected to enable a significant F
Slide 16: Asia
HY23 RESULTS Asia p.c.p. (AUD$m) 1H23 1H22 change TTV 513.3 89.0 +477% Revenue and other income 19.9 6.0 +232% Underlying EBITDA 3.4 (2.6) n.m. EBITDA / Rev & Oth Inc Margin 17.1% (43.3%) 1H23 Outlook • Momentum from HKG opening late in 1Q23, with • China opening on 8 January 2023 is expected to alm
Slide 17: Group Financial Summary
Group Financial Summary
Slide 18: Profit and loss
HY23 RESULTS Profit and loss $AUD(m) 1H23 1H22 %Δ • 1H23 a strong result, building throughout the half TTV 4,199.0 2,083.1 102% • 1H23 Depreciation & Amortisation: $27.2m ($19.9m excluding client relationship amortization, a non-cash Revenue and other income 291.9 163.0 79% amount) Underlying EBITDA
Slide 19: Comparative statutory balance sheet
HY23 RESULTS Comparative statutory balance sheet $AUD(m) Dec 22 Jun 221 • Strong financial position is enabling the Group to comfortably manage growing activity Cash 110.3 142.1 Receivables 357.7 276.3 • Cash has decreased by $31.8m primarily as a Other current assets 14.3 18.5 result of working cap
Slide 20: Cash flow summary
HY23 RESULTS Cash flow summary $AUD(m) 1H23 1H22 • Cashflow conversion fundamentals have not changed, EBITDA statutory 50.1 10.5 with conversion expected to align with historical averages over time Non-cash items 3.7 3.3 Change in working capital (54.9) 26.6 • Cash at reporting date has decreased in
Slide 21: FY23-24 Outlook
FY23-24 Outlook
Slide 22: FY23 Guidance
HY23 RESULTS FY23 Guidance FY23 guidance: • Underlying EBITDA range $160-$180m, full-year underlying PBTA1 $120-$140m • Momentum from a strong 2H23 result is expected to set up a strong FY24 • Expect significantly higher revenue/EBITDA margin in 2H23 due to significant client wins transacting, suppl
Slide 23: The recovery trajectory to FY24 – why it's on track
HY23 RESULTS The recovery trajectory to FY24 – why it’s on track AUD$M FY23: record FY191 pro-forma 1. Rev. tracking ahead of industry in all markets 950 revenue & revenue 2. Significant known wins transacting in 2H23 EBITDA $160- 850 180m 3. Higher incremental EBITDA margin via scale 750 4. China n
Slide 24: Summary- focus remains on long-term strategy and execution
Summary- focus remains on long-term strategy and execution. A track record of strong • CTM has been successfully operating for nearly 29 years and has delivered TTV, EBITDA and performance and execution dividend growth in 26 of 29 years, in all economic conditions (only exceptions: COVID, September
Slide 25: Glossary
HY23 RESULTS Glossary Client SLA’s Client Service Level Agreements CTM regions ANZ- Australia and New Zealand, NA - North America, EU- UK and Europe, Asia - Asia EBITDA Earning before Interest, Tax , Depreciation, Amortisation EPS Earnings per share FTE Full time equivalent employee GDS Global Distr
Slide 26: travelctm.com
ccm travelctm.com
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