Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — FY2024 Earnings Presentation
30 slides from Corporate Travel Management's earnings presentation, Aug 21, 2024
Slide 1: FY24 Results Presentation
ASX Announcement 21 August 2024 FY24 Results Presentation Attached is Corporate Travel Management Limited’s 2024 full year results presentation for the year ended 30 June 2024. Authorised for release by the Board. Contact details Media enquiries: Alasdair Jeffrey – Rowland – Alasdair.Jeffrey@rowland
Slide 2: Corporate Travel Management Full Year Results 2024
Corporate Travel Management Full Year Results 2024 21 Jamie Pherous James Spence Eleanor Noonan AUGUST Managing Global Chief Global Chief 2024 Director Financial Officer Operating Officer 1
Slide 3: Disclaimer
FY24 RESULTS Disclaimer The information in this presentation contains Further advice should be obtained from a made or given by or on behalf of the Company, any summary information about the current activities of professional investment adviser before taking any of its directors, or any other person
Slide 4: Agenda
FY24 RESULTS Agenda FY24 Highlights 4 FY24 Regional Overview 9 Financial Overview 15 Growth Drivers 19 FY25 Target Metrics 23 Appendix 27 3
Slide 5: FY24 Highlights
FY24 Highlights 4
Slide 6: Group overview - AUD($m)
FY24 RESULTS FY24 Group overview - AUD($m) Consolidated CTM1 Revenue EBITDA FY24 Revenue EBITDA up 21% to 1H 2H Full Year 1H 2H Full Year up 9% $201.7m 660.1 716.9 201.7 167.1 FY24 underperformance specific to: 1H issues previously flagged at 1H results: 363.7 368.2 353.2 115.8 • Macro 2Q impacts to
Slide 7: Europe overview – AUD($m)
FY24 RESULTS FY24 Europe overview – AUD($m) Europe Revenue EBITDA One-off project underperformance impacted 1H 2H Full Year 1H 2H Full Year group results in FY24 169.3 97.7 143.0 2H EBITDA DOWN 48% 84.1 98.5 97.8 67.1 63.0 +18% +16% Record FY24 financial metrics 70.8 REVENUE UP EBITDA UP 34.7 45.2 1
Slide 8: Rest of World overview - AUD($m)
FY24 RESULTS FY24 Rest of World overview - AUD($m) Rest of World (NA, ANZ, Asia) Revenue EBITDA Rest of World (ex. Europe) Strong momentum for FY25 1H 2H Full Year 1H 2H Full Year 544.9 515.4 122.5 Turnaround led by NA 101.1 and ANZ • 2H EBITDA up 29% 74.3 • 2H EBITDA margin 21% to 27% 264.6 268.9 2
Slide 9: Scorecard – the metrics
FY24 RESULTS FY24 Scorecard – the metrics Revenue per FTE ($) Underlying EPS (cents/share)1 +35% VS FY19 +9% EPS at 88% vs FY19 VS P.C.P (pre-Covid) FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 INCREMENTAL REVENUE CASH CONVERSION CONVERSION TO EBITDA CLIENT RETENTION CLIENT WINS2 89%
Slide 10: Regional Overview
FY24 Regional Overview 9
Slide 11: ANZ – AUD($m)
FY24 RESULTS ANZ – AUD($m) Highlights Revenue EBITDA Significant 2H turnaround v 1H as expected 1H 2H Full Year 1H 2H Full Year 169.3 160.1 44.9 42.4 2H revenue 11% growth vs p.c.p. • Sleep Space benefits • Client wins, customers returning to CTM 26.3 87.9 23.5 80.7 81.4 79.4 +6% +6% 2H EBITDA Margi
Slide 12: North America – AUD($m)
FY24 RESULTS North America – AUD($m) Highlights Revenue EBITDA Significant 2H turnaround 1H 2H Full Year 1H 2H Full Year • Customer activity rebound after 2Q • Organisational restructure to optimise performance • Faster on-boarding of new customers 303.7 311.5 59.7 • Focus on profitable accounts and
Slide 13: Europe – AUD($m)
FY24 RESULTS Europe – AUD($m) Highlights Revenue EBITDA One-off project revenue rapid taper late 2H 1H 2H Full Year 1H 2H Full Year 169.3 97.7 143.0 Full Year Revenue EBITDA up 16% to up 84.1 18% $97.7m 98.5 97.8 63.0 67.1 70.8 +18% 2H EBITDA down +16% 34.7 45.2 48% Underlying BAU business -28% 17.0
Slide 14: Europe underlying business performing well
FY24 RESULTS Europe underlying business performing well Summary Revenue EBITDA FY23 and FY24 significantly impacted by one-off project work (corp. & govt) One-off project One-off project impacted years impacted years ($m) ($m) 169.3 FY25F assumes no Bridging vessel 97.7 extension, no war-related hum
Slide 15: Asia – AUD($m)
FY24 RESULTS Asia – AUD($m) Highlights Revenue EBITDA 1H 2H Full Year 1H 2H Full Year 64.1 17.9 Revenue +24% EBITDA +29% 51.6 13.9 led by continued strong growth in Corporate 10.5 32.5 31.7 31.6 9.1 8.8 2H- Greater China slower recovery post COVID +24% +29% • Slower China 2H outbound airline capacit
Slide 16: Financial Overview
Financial Overview James Spence, Global CFO 15
Slide 17: Group financial highlights
FY24 RESULTS FY24 Group financial highlights Reported AUD($m) FY24 FY23 % Non-Recurring cost (AUD$m) pre-tax FY24 Revenue and other income 716.9 660.1 9% Project Atlas 10.5 Integration / System consolidation 5.4 Underlying EBITDA1 201.7 167.1 21% Bad & doubtful debts (Legacy debt provision)4 6.9 Und
Slide 18: Cash flow summary
FY24 RESULTS Cash flow summary CTM YTD June 24 Cash movement (AUD$m) . . . . $84.1m 89% ~$84m RETURNED TO operating cash returned to shareholders in the form SHAREHOLDERS . conversion1 . of dividends and share buybacks . . Capex ~$9m uplift . . . ~$48m vs FY23 primarily enhancements to . . invested
Slide 19: Capital Management and Balance Sheet
FY24 RESULTS Capital Management and Balance Sheet $68.3m of distributions to shareholders relating to FY24 Dividends (cps) Final Interim 5cps / 234% of NPAT 28cps / 53% of NPAT 29cps / 50% of NPAT Dividends Share buyback 12 22 • A total of $42.2 million returned to • Buyback program reset to up to s
Slide 20: Growth Drivers
Growth Drivers Eleanor Noonan, Global COO 19
Slide 21: Strategic and Operational Planning
FY24 RESULTS Strategic and Operational Planning Focus Double FY24 net profit in 5 years (CTM 2024 global market share c1%) 5-Year Strategy Benefits Guides substantial investments in revenue-driving and EBITDA margin improvement projects in short and medium term. Focus Proven execution positioning CT
Slide 22: Revenue Drivers: Customer-Facing Tech Investment
FY24 RESULTS Revenue Drivers: Customer-Facing Tech Investment FY23 FY24 Strength in Project Execution Revenue 1H 2H NEW PRODUCT • Sleep Space, CTM's proprietary hotel content engine 87.9 LAUNCH • Successfully launched in ANZ February 2024 IMPACT • Contributor to sequential 2H revenue growth (+11%) 8
Slide 23: Cost Management Drivers
FY24 RESULTS Cost Management Drivers Strength in Project Execution Revenue 9% FY24 revenue growth Focus: Projects that enhance EBITDA margins without workforce growth 716.9 Project Scout 660.1 OBJECTIVE • Uses automation, machine learning and AI to improve service delivery +9% PERFORMANCE • Continue
Slide 24: FY25 Target Metrics
epee FY25 Target Metrics
Slide 25: FY25 Target metrics
FY24 RESULTS FY25 Target metrics AUD($m) FY24 FY25 Target1 Key assumptions supporting target metrics Rest of world (ANZ, NA, Asia) Rest of World (Ex Europe) - 2H24 momentum into FY25: • Accelerating revenue growth and EBITDA margins throughout FY25 - execution of Revenue 544.9 ~+10% key initiatives
Slide 26: Summary
FY24 RESULTS Summary Buy-back extended, reflecting strong balance Missed guidance in FY24 sheet and confidence in medium term outlook • One-off project underperformance and softer • Focus on providing shareholder returns through capital 2Q macro in NA, led to the miss management • Strong cash genera
Slide 27: Glossary
FY24 RESULTS Glossary AI Artificial intelligence BAU Business As Usual bps Basis points (1% = 100bps) Client SLAs Client Service Level Agreements CTM regions ANZ - Australia and New Zealand, NA - North America, EU - UK and Europe, Asia - Asia EBITDA Earnings before Interest, Tax , Depreciation, Amor
Slide 28: Appendix
Appendix 27
Slide 29: Comparative statutory balance sheet
FY24 RESULTS Comparative statutory balance sheet AUD($m) JUN 24 JUN 23 Cash 134.8 151.0 Receivables 412.4 464.5 Other current assets 11.8 11.6 Total current assets 559.0 627.1 Right-of-use assets 35.8 34.5 Intangible assets 1,007.8 1,009.6 Other non-current assets 40.5 51.6 Total assets 1,643.1 1,72
Slide 30: travelctm.com
ccm travelctm.com
Corporate Travel Management — FY2024 Earnings Presentation on 6ix