Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — H1 2011 Earnings Presentation
19 slides from Corporate Travel Management's earnings presentation, Feb 22, 2011
Slide 1: Half Year Results 2011
For personal use only Half Year Results 2011 Jamie Pherous, CEO Steve Fleming, CFO 23-25 February 2011 1
Slide 2: Disclaimer
Disclaimer For personal use only This document is not a prospectus under Australian law and does not constitute an offer, invitation or recommendation to subscribe for or purchase any security or financial product and neither this document nor anything contained in it shall form the basis of any con
Slide 3: Agenda
Agenda For personal use only Group Performance – Highlights Travelcorp Acquisition Financial Performance Key Initiatives Looking Forward 3
Slide 4: Group Performance - Highlights
Group Performance - Highlights For personal use only • Record maiden interim result – TTV $222.3m +33% pcp – Fee revenue A$20.52 million +36% pcp – NPAT $3.31million +128% pcp – Underlying NPAT $3.4m* +134% pcp • Expect to exceed full year forecast profit by around 10%-20% • Underlying NPAT forecast
Slide 5: Ten Year Growth History (TTV)
Ten Year Growth History (TTV) For personal use only 5
Slide 6: Group Performance – CTM Highlights
Group Performance – CTM Highlights For personal use only Why? Key Drivers of the Business – Organic growth. Success in winning new clients combined with strong retention – Client profit contribution increasing without compromising service levels or staff retention. Leveraging scale and efficiencies
Slide 7: Corporate Client Activity Still Down 15%
Corporate Client Activity Still Down 15% For personal use only • Retail recovery already taken place in mid- calendar 2010 • Global premium (corporate) travel activity still down approximately 15% from pre-GFC highs. • Greater opportunity for recovery in activity in corporate * 2010 dip was the volc
Slide 8: Agenda
Agenda For personal use only Group Performance – Highlights Travelcorp Acquisition Financial Performance Key Initiatives Looking Forward 8
Slide 9: Travelcorp Acquisition
Travelcorp Acquisition For personal use only • Settled on 3 January for $11.125m • Nil contribution to 1H2011 financials. Contribution is all in 2H2011 • Potential cash earn out of $3.875m on achieving six month profit hurdles • Further scrip earn out for out-performance Highlights: • Integration we
Slide 10: CTM Profile Post–Travelcorp
CTM Profile Post–Travelcorp For personal use only • Over 340 FTE staff across Australia & New Zealand • Corporate market share circa 7% • Approx 600 clients, including 16 ASX100 companies, Aust & New Zealand’s largest private companies • Diversification. No client represents more than 5% of EBITDA •
Slide 11: Agenda
Agenda For personal use only Group Performance – Highlights Travelcorp Acquisition Financial Performance Key Initiatives Looking Forward 11
Slide 12: Comparative 1HFY11 Profit and Loss
Comparative 1HFY11 Profit and Loss For personal use only 6 mths ended 6 mths ended Dec % of Dec % of 2009 Income 2010 Income $'000 $'000 TTV 166,771 222,338 Travel Income 15,064 20,523 Yield % of TTV 9.0% 9.23% Operating Expenses (12,529) -83% (15,421) -75% EBITDA 2,535 17% 5,102 25% Depreciation &
Slide 13: Financial Performance Dissection
Financial Performance Dissection For personal use only 1H2011 % of CTM Full Year Travelcorp Total IPO forecast CTM only: Acquisition: FY2011 CTM only IPO forecast 2nd half IPO IPO Actual Achieved contribution Forecast (A) (B) (C) (D) = (C) + (D) TTV $222.3m 49.4% $450.0m $41.7m $491.7m Revenue $20.5
Slide 14: Balance Sheet Summary ($m)
Balance Sheet Summary ($m) For personal use only As at 31 December 2010 $m • Cash includes funds from capital raising Cash 20.7 • No interest bearing debt Receivables and other 8.8 • Intangibles largely goodwill on Total current assets 29.5 acquisitions PP&E 1.3 • Strong working capital position Int
Slide 15: Cash Flow Summary ($m)
Cash Flow Summary($m) 6 months 6 months For personal use only to Dec to Dec • Strong operating 2009 2010 cash flow EBITDA 2.5 5.1 • All interest bearing debt paid post IPO Change in working capital 0.4 (0.5) • Growing TTV means larger Income tax paid (0.6) (0.6) supplier payment accruals (- ve W.C.)
Slide 16: Agenda
Agenda For personal use only Group Performance – Highlights Travelcorp Acquisition Financial Performance Key Initiatives Looking Forward 16
Slide 17: Key Initiatives FY2011
Key Initiatives FY2011 For personal use only • Key Focus Over Next 6 Months: – Organic growth (new client wins & retention) to set up FY2012 – Bedding down Travelcorp transition – Innovation – investment in client-facing products & tools to gain greater relevance – Productivity initiatives to create
Slide 18: Agenda
Agenda For personal use only Group Performance – Highlights Travelcorp Acquisition Financial Performance Key Initiatives Looking Forward 18
Slide 19: Looking Forward-Factors Affecting Forecast Range
Looking Forward-Factors Affecting Forecast Range For personal use only • Underlying NPAT range $7.75m to $8.5m (upgrade from prospectus forecast of $7.1m) • QLD natural disasters flow-on to corporate activity – Current client spend slightly down versus Oct-Nov 2010 – Lower end of guidance range take
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