Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Flight Centre — UBS Transport Conference 2004
17 slides from Flight Centre Travel's conference presentation, Apr 1, 2004
Slide 1: Flight Centre Ltd - UBS Transport Conference
TS ean EE ns cM MATE i aM | THI INN TT TT NIE ican By CENTRE es STS me Flight CentreLtd UBS Transport Conference —_ March 31,2004,
Slide 2: Flight Centre Limited overview
neta FLIGHT . CENTRE LiMiTED ¢ Established travel. agency business with over 4, 100 company-owned shops globally : : ° Strong track record of profitable growth over 23 years e Fourth largest retailer in Australia. : = ® Current market capitalisation of “$1. 7 billion S Employer of the year last two
Slide 3: Net Profit (before tax)
FLIGHT CENTRE LaMrreDs Net Profit (before tax) : (AUD $million) .- Soo : eee 24% Compound Growth over last 5 years 125, : : - . wey egy : : ; 402 1007 1999 2000 2001 2002 2003 ~20% ~growth guidance
Slide 4: Total Transaction Value
FLIGHT CENTRE Ny MITES Total Transaction Value (AUD $million) 5,000, - 4,000- 3,000, 2,000 1,000, 25% Compound Growth over last 5 years : ii MN MN a i A 2000. 2001. +2002 + 2003 i bg et Se gp sh beh oo Half year to
Slide 5: Earnings per Share
FLIGHT CENTRE LiMiTED Earnings per Share ....- : . . . - (cents) - . : : oe 100, AE AE Hall year te Dec. 2003 37 ig 5 i # 4 4 ‘ a be ee os a wl il i, i Bimenmnnd INI a > iil i TT WI NN i iI WAI HN A TTT 1999 2000... 2001 5002 2003 2004
Slide 6: Importance of intellectual capital
a FLIGHT . CENTRE LiMiTED s Importance of intellectual capital - Our people are our greatest asset S 6,300 staff globally, w working in teams of 3. 7 people - ‘Shop front, businesses and management © Every person: incentivised and accountable for-own outcomes (relatively low base pay)
Slide 7: Aligned interests and incentives
a FLIGHT . CENTRE LiMiTED # ae All interests aligned with Business Ownership Scheme, options and employee share plan ¢ Emphasis on. reward and recognition — ¢ Standard systems - one best. way . ¢ Relatively flat structure mE - seas =
Slide 8: Profitable growth strategy
FLIGHT . CENTRE LiMiTED 1. Focus is on broadening our product offering (air/non air) 2. Increasing consultant productivity ~ technology solutions BL ‘Profitable growth strategy ~~ continue profitable growth
Slide 9: Australia and New Zealand
aT FLIGHT CENTRE / Australia: > Cornerstone of operations; > 60% of revenue. ° Strong performance by- Flight Centre and other retail brands in first half year © Corporate. at $1.3b largest ir in Australia - stl opportunities to. improve profits —- New Zealand: - Te : = & Established market, historic
Slide 10: South Africa, United Kingdom and North America
aT FLIGHT CENTRE South Africa: United Kingdom: ¢ Britannic stable corporate travel business and oe performing well cena e Organic Flight Centre business has large opportunity for growth in shops and profits ae North America: OS Ss Recent restructure done to ‘combine NA operations, benefits beginning
Slide 11: Six months to December 2003
a FLIGHT . CENTRE LiMiTED 6 Months to December 2003 $m Growth $m oo Pre-goodwill %* Incl. Goodwill Operating Revenue ~ B64 29% 364 ~~ Total Transaction Value.---2,711 27% 2,711 Operating Profit 56.4 20% 51 (before tax) : TAS erat “Operating Profit 39.0 7% 34.1 (after tax) ee on SASS Basic EPS. 41.7
Slide 12: Total Transaction Value by country
a FLIGHT CENTRE ‘y GEMITED 6 Months to December 2003 ; Total Transaction Country Total Transaction — Value Value A$m Growth %*~ ‘Australia 1,741- “19%: New Zealand 260°. ae 16% South Africa 138 23% “FCUK 196 28% - ~ Britannic (UK). 173 100% “USA 25 30% “Canada 154 23% Other 24 ~~ 1671% Total “2711 2
Slide 13: Internal and external factors
FLIGHT : CF, NTRE i ni LiMiTED MMII vn @ Internal factors — The Main Area. People — right strategies; right structure Ss a ¢ ‘Financially healthy airlines ~ value distribution networks ~ “Acts of terrorism, SARS _ ae SS :
Slide 14: Airline commission payments
a FLIGHT . CENTRE LiMiTED @ Majority of. airlines including commission payments in their business models STERN Sas -@ Qantas — we believe a stable model. next 3 years ~ © Overseas airlines returning to commission payments “Air Canada, British Airways, American a Ge Air New Zealand an exception with
Slide 15: Outlook and growth guidance
a FLIGHT . CENTRE LiMiTED ra od at a Continued improvement and expansion in North America Consultant productivity expected to improve through improved. technology ae — Eee nee ena Continued focus. on land sales enhancement Shop/Front end growth of 15- 20% in the full year Net profit (before tax). gr
Slide 16: Retail and corporate brands
——~ FLIGHT \ CRMABE See é Retail Srancs | Corporate Grancs Flight Centre : © .Corporate Traveller © Escape Travel TQ? Travel Solutions ms o Student Flights : © SBT Business Travel Solutions ¢ .. Travel Associates -o- Stage.and Screen Overseas Working Holidays — © CI Events o Shopper Travel © AITL (H
Slide 17: Questions?
nn Hn Te y y MN NNT ity MN Ne NAMIE a) in in i SAAT ARITA LN Oe CENTRE. ~ ; ; ve DS Se a me Questions?