Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — Investor Presentation (February 2016)
28 slides from Corporate Travel Management's investor presentation, Feb 11, 2016
Slide 1: Acquisition of Chambers Travel, UK and Diplomat Travel, Washington DC USA
Acquisition of Chambers Travel, UK and Diplomat Travel, Washington DC USA 2 for 35 Renounceable Underwritten Entitlement Offer to raise $45.5 million December 2014 Celebrating 20 Years 1994 2014
Slide 2: Disclaimer
Disclaimer The information in this presentation does not constitute personal investment advice. The presentation is not intended to be comprehensive or provide all information required by investors to make an informed decision on any investment in Corporate Travel Management Limited ACN 131 207 611
Slide 3: Highlights
Highlights European acquisition completes strategic global footprint USA acquisition expands presence to east coast USA Corporate Travel Management Limited (“CTM” or “the Company”, ASX Code CTD) has agreed to make two acquisitions: Chambers Travel UK/Europe (CT) for GBP23.6m (AUD43.7m), being GBP1
Slide 4: Highlights: Strategic Rationale, EPS accretive in FY15
Highlights Strategic Rationale CT completes CTM’s key global market coverage and establishes a strong base in the UK and key European markets DT is a high end expert travel company with niches in the NGO, Government, Defence and Security industries which complement CTM’s current government and m
Slide 5: Highlights: Funding and Trading Update
Highlights Funding The acquisitions will be funded through an underwritten 2 for 35 Renounceable Entitlement Offer at $8.80 per share to raise $45.5 million The offer price reflects a 10.1% discount to the theoretical ex-rights price (TERP) of $9.78 and a discount of 10.6% to the closing price o
Slide 6: Agenda
Agenda: • Overview: Chambers Travel/Diplomat Travel • Strategic rationale • Combined group financial overview • Entitlement offer details • Appendix
Slide 7: Chambers Travel overview
• CT is an award winning 26 year old leading travel management company headquartered in London with approximately 220 employees • CT has expected sales volume for the year ended 31 March 2015 of approximately GBP135m • CT has offices in eight European countries including England, Scotland, France, G
Slide 8: Chambers Travel senior management
Chris joined Chambers as Commercial Director in 1999 after a number of senior roles in the corporate travel industry. Chris had an entrepreneurial approach and led a strong pattern of growth for the company. After five years Chris led a management buyout to become the majority shareholder and then C
Slide 9: Chambers Travel awards
1 ;AVEL | “AWARDS \ Page: 9
Slide 10: Diplomat Travel overview
• DT is a 52 years old leading Travel Management company in the Washington DC/Virginia area servicing corporate clients in the North East USA • Total sales volume for the year ended 31 December 2014 is expected to be USD45m • DT expands CTM’s USA coverage to the East Coast of the USA. CTM will now c
Slide 11: Denise S Guida, President / Owner, Diplomat Travel Services
DENISE S GUIDA PRESIDENT / OWNER DIPLOMAT TRAVEL SERVICES Born and raised In Australia, Denise had the typical Aussie desire to see the world. In the early 1970’s she left for a two year exploration that turned into 40 plus years of adventure but, always, with travel as its centerpiece. Due to her l
Slide 12: CTM Footprint
CTM Footprint Unique Value Proposition Operating out of 46 cities in 23 countries Over 1800 employees Page: 12
Slide 13: Agenda
Agenda: • Overview: Chambers Travel/Diplomat Travel • Strategic rationale • Combined group financial overview • Entitlement offer details • Appendix
Slide 14: Merger and Acquisition Discipline
Merger and Acquisition Discipline CTM’s acquisition strategy has remained consistent across all acquisitions: Strong discipline in selection criteria – looking for the “1 in 100” Alignment - “Skin in the game” for leaders and/or senior management Focus on financial and people due diligence for
Slide 15: Strategic Rationale – Chambers Travel
Strategic Rationale – Chambers Travel • Establishes an immediate and mature scalable presence in eight countries in Europe – the last key region in CTM’s global strategy UK/Europe • CTM becomes a genuine global player and can genuinely compete in the global/regional sector, estimated at USD200bn • P
Slide 16: Europe Market Relative Size
Europe Market Relative Size Page: 16 Source: Boeing Current Market Outlook 2014-2033 USD$(B) based on Total Travel Market
Slide 17: Strategic Alignment – Chambers Travel
Strategic Alignment – Chambers Travel CHAMBERS CTM Client service and people focused culture as reflected by high client and staff retention rates Focus on improving client-facing solutions through in-house developed operating platforms Industry recognition – multi-award winning travel agenc
Slide 18: Strategic Rationale – Diplomat Travel
Strategic Rationale – Diplomat Travel • Establishes an immediate and mature presence in the East Coast of the USA, creating USA Scale coverage in all time zones in the mainland USA • CTM will now operate out of 18 cities across 8 states • Access to the lucrative Washington DC market place Clients •
Slide 19: Agenda
Agenda: • Overview: Chambers Travel/Diplomat Travel • Strategic rationale • Combined group financial overview • Entitlement offer details • Appendix
Slide 20: Proforma FY14 Group Result
Proforma FY14 Group Result Pro-forma CTM Chambers ᵇ Diplomatᵇ Group Total AUD $mᵃ AUD $m TTV (unaudited) 1384.0 212.8 53.9 1650.7 Revenue 110.5 25.7 3.9 140.1 EBITDA (unadjusted) 27.1 3.0 2.6 32.7 EBITDA (underlying) 28.9 3.0 2.6 34.5 NPBT (statutory) 23.0 2.7 2.5 28.2 NPAT (statutoryᶜ) 17.3 2.2 1.4
Slide 21: Pro Forma Balance Sheet
Pro Forma Balance Sheet Pro-forma CTMᵃ Chambersᵇ Diplomatᵇ Funding Group Total AUDm AUDm AUDm AUDm Cash 32.0 7.4 3.4 0.9 43.6 Receivables and other 103.3 12.7 0.0 9.2 125.2 Total Current Assets 135.3 20.1 3.4 10.1 168.8 PP&E 3.4 0.2 - - 3.6 Intangibles 109.1 - - 74.0 183.2 Total Assets 247.8 20.3 3.
Slide 22: Trading Update and Guidance
Trading Update and Guidance Upgraded Guidance: • FY15 underlying EBITDA Guidance expected to be above $45.0m (previous upgrade October 2014 above $41.0m) • Assumes six months contribution of $4.0m from Chambers Travel and Diplomat Travel • Guidance assumes no economic shocks, continuation of acquisi
Slide 23: Strategy
Strategy Aspirations: To be in every major region (ANZ, North America, Asia, Europe) with potential for emerging markets where suitable Win market share via local client growth in all operations and regions By working with our clients, continuing to develop new technology, client facing soluti
Slide 24: Agenda
Agenda: • Overview: Chambers Travel/Diplomat Travel • Strategic rationale • Combined group financial overview • Entitlement offer details • Appendix
Slide 25: Entitlement Offer Details
Entitlement Offer Details Fully Underwritten Renounceable Entitlement Offer Entitlement Offer Ratio 2 for 35 Amount Raised $45.5 million Capital Structure Current Issued Capital 90,517,621 shares New Shares Issued 5,172,435 shares Post Entitlement Offer Capital Structure* 95,690,056 shares Offer Pri
Slide 26: Offer Timetable
Offer Timetable Event Date Announcement of the Entitlement Offer 3 December 2014 Mailing of the Entitlement Offer details 4 December 2014 Ex-date and Rights trading commences 5 December 2014 Record Date for Entitlement Offer (7.00pm AEDT) 9 December 2014 Information Booklet and Entitlement & Accepta
Slide 27: Agenda
Agenda: • Overview: Chambers Travel/Diplomat Travel • Strategic rationale • Combined group financial overview • Entitlement offer details • Appendix
Slide 28: Risks
Risks Acquisition of CT and DT entities • Subject to the satisfaction of limited conditions • Historical liabilities and partial reliance on information provided by vendors • Integration risk and actual results may differ from expectations Economic • Specific (corporate and leisure travel), or gener
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