Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Macquarie Conference 2021
15 slides from Flight Centre Travel's conference presentation, May 4, 2021
Slide 1: FLT: Macquarie Conference Presentation
FLT: Macquarie Conference Presentation Graham Turner (CEO) Adam Campbell (CFO) May 4, 2021
Slide 2: Delivering consistent sales growth
Delivering consistent sales growth • Record COVID-period sales revenue in March after more subdued Jan, Feb • Significant uplift globally from end of FY21 Q3 o March sales revenue comfortably higher than previous COVID-period record o March turnover more than $100million higher than February (up 32.
Slide 3: Maintaining a stable & sustainable cost base
Maintaining a stable & sustainable cost base • Achieving cost targets: Fixed costs continuing to track at circa $70m per month • Variable costs increasing slightly: In line with expectations – driven by increased incentive payments to staff, given sales growth • Investing in major technology initiat
Slide 4: Lengthy liquidity runway in place
Lengthy liquidity runway in place • Strong position maintained: Circa $1.5b in cash at end of Q3, with circa $1.1b in total liquidity • Additional funding secured: Liquidity bolstered by additional GBP50m UK debt facility (short-term & low interest) taken on in March 2021 • Improved debt structure:
Slide 5: Trading generally in line with expectations
Trading generally in line with expectations • Continuing to target a return to profitability (PBT) during FY22 on a month-to-month basis in both corporate & leisure, given stable cost base & gradual, but consistent, revenue growth • Currently expecting FY21 2H underlying losses to be broadly in line
Slide 6: The pathway to recovery
The pathway to recovery Corporate business tracking at 29% of historic TTV* at end of Q3 & poised for market-share growth • Recovery to date driven by essential services clients – government, mining, health – but most companies starting to travel when they can • Australia recovering more rapidly tha
Slide 7: Positive signs: Travel bubbles starting to open
Positive signs: Travel bubbles starting to open Recent Examples Trans-Tasman bubble reopened - possible expansion to other Asia-Pac markets in next few April 19 months Possible resumption of some non-essential international travel from UK (UK travel corridor May 17 closures to be reviewed early this
Slide 8: Positive signs: Vaccination roll-out
Positive signs: Vaccination roll-out 1b+ doses administered worldwide – 1st 100m took 61 days, 10th100m took 5 days (Source: Bloomberg) Gaining momentum in markets that are material to FLT – possibility of rapid near-term recovery, given progress in USA & UK & brighter outlook for Trans Atlantic & o
Slide 9: Business update: Corporate
Business update: Corporate Achieving Strategic Objectives ● Continued development of two market leading brands - Corporate Traveller (start-ups & SMEs) & FCM (MNC sector) ● Significant investment in platforms, systems & data – tech cap-ex held at pre-COVID levels to deliver tailored & innovative new
Slide 10: Corporate: Melon
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Slide 11: Corporate: FCM platform
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Slide 12: Business update: Leisure
Business update: Leisure Ongoing Business Transformation • Transformation program initiated pre-COVID & fast-tracked during pandemic • Initial focus on operational effectiveness within core leisure business • Now expanding into new models and focused on emerging & future trends – fast tracking growt
Slide 13: Leisure: Four models
Leisure: Four models Network of world-class Self Service / E- World-class Sales Centre Independent Contractor Shops Commerce ➔ Customer first capability ➔ Right network – size and spread ➔ Irresistible deal driven ➔ Career path and flexibility model ➔ Leading air engine ➔ Appealing /attractive brand
Slide 14: flightcentre.com.au: Now generating 30% of sales
flightcentre.com.au: Now generating 30% of sales
Slide 15: Thank you, questions?
THANK YOU QUESTIONS? ST ETRE
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