Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Shareholder Meeting (November 2016)
46 slides from Flight Centre Travel's shareholder meeting presentation, Nov 9, 2016
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING 9 November 2016 For personal use only
Slide 2: FLT's Ongoing Evolution
FLT’S ONGOING EVOLUTION For personal use only New brands to target International growth expansion sectors & markets Leading to consistent sales growth throughout the economic cycle – 20 Vertical New & years of TTV growth in unique integration products 21 years since listing Multi- channel expansion
Slide 3: Corporate Brand Diversity
CORPORATE BRAND DIVERSITY For personal use only ✓ TMC ✓ SME ✓ Entertainment / Sport ✓ MICE ✓ Education ✓ Consulting Dedicated corporate brands now turning over ? Low Cost Corporate more than $6b per year across multiple sectors
Slide 4: Corporate Growth Drivers
CORPORATE GROWTH DRIVERS For personal use only Brand Diversity 6 dedicated brands Targeting specific sectors Strong People Offering Personalised service from experienced travel experts Large BDM network to win accounts Technology & Reporting Leading stable of products Apps, OBTs, analytics, intel
Slide 5: A Stronger Global Footprint
A STRONGER GLOBAL FOOTPRINT For personal use only FLT now has an equity presence in 4 of the world’s 5 largest UK USA corporate markets (including Germany, subject to completion of recent acquisition) Company owned businesses in 4 other top-15 countries – India, Canada, Australia & Netherlands Germa
Slide 6: Our 2022 Flight Path
OUR 2022 FLIGHT PATH For personal use only Strategic blueprint in place Focus on Targeting improving growth in 4 mid-long- key areas term results Multi million dollar investments underway
Slide 7: FY16 Results Summary
FY16 RESULTS SUMMARY For personal use only $’ million JUNE 2016 JUNE 2015 % TTV $19.3b $17.6b 9.7% Revenue $2.7b $2.4b 11.2% Income margin 13.8% 13.6% 20bps Net margin (underlying) 1.83% 2.07% (24bps) Underlying Profit Before Tax $352.4m $366.3m (3.8%) Non-recurring items ($7.4m) - - Statutory Profi
Slide 8: FY16: Results by Country
FY16: RESULTS BY COUNTRY For personal use only CANADA EUROPE INDIA GREATER CHINA TTV: $1.2b, up 3% in TTV: $2.2b, up 14% in TTV: $419m, up 9% in TTV: $271m, up 17% in AUD (up 2% in lc) AUD (up 6% in lc) AUD (up 2% in lc) AUD (up 7% in lc) EBIT: $0.7m EBIT: $47.2m EBIT: $0.2m EBIT: $0.0m BUSINESSES:
Slide 9: FY16 Highlights: TTV Growth
FY16 HIGHLIGHTS: TTV GROWTH For personal use only FY16 TTV Growth $1,800,000,000 $1,600,000,000 TTV increased by $1,400,000,000 $1.7b to $19.3b, $1,200,000,000 $1,000,000,000 meaning FLT sold $800,000,000 FY16 TTV Growth travel valued at $600,000,000 $400,000,000 more than $50m $200,000,000 every da
Slide 10: FY16 Highlights: Geographic Diversity
FY16 HIGHLIGHTS: GEOGRAPHIC DIVERSITY For personal use only TTV By Region Australia Americas Europe & South Africa NZ, Asia, India & UAE FLT’s overseas businesses generated almost half of the company’s FY16 TTV
Slide 11: FY16 Highlights: Solid Profit
FY16 HIGHLIGHTS: SOLID PROFIT For personal use only 3rd strongest result but down on PCP Adjustments to underlying PBT: $17.3m in gains relating to NZ head office sale ($6.3m) & ACCC refund NPAT down 3.8% $352.4m ($11m) (underlying) & underlying PBT, 4.7% (statutory) down 3.8% $AU24.7m in non-cash i
Slide 12: Internal & External Factors Affecting PBT
INTERNAL & EXTERNAL FACTORS AFFECTING PBT For personal use only Airfare Price Wars Network Upgrades Underperformance Investments FX • Widespread • Leading to higher • Significant • Multi-million • Unforseen $3m discounting during cap-ex & $12m decrease in EBIT dollar spend on loss on forward 2H, lea
Slide 13: FLT's Investments: Generating Returns
FLT’S INVESTMENTS: GENERATING RETURNS For personal use only Network People-related • Finance Enhancements • New brands & Initiatives platform • New shop offerings • Flexible work • CRM tool design • Unique arrangements • Stronger online products • Encouraging presence New Revenue “ownership” New Sys
Slide 14: FY16: Strategic Acquisitions
FY16: STRATEGIC ACQUISITIONS For personal use only Online FCM OTHER • StudentUniverse • Acquisitions in key • Aircraft charter • BYOJet markets in Asia (AVMIN) (Malaysia), Europe • Maya Events (Netherlands) & (cievents Hong Americas (Mexico) Kong)
Slide 15: FY16: Balance Sheet Strength
FY16: BALANCE SHEET STRENGTH For personal use only $1.52b global cash & investment portfolio Includes $506.7m in company cash & investments FLT took on $52m in short-term debt during FY16 & $76.8m in debt reinvested the borrowings at a superior interest $429.9m positive cash position at June 30 2016
Slide 16: FY16: Dividends & Capital Management
FY16: DIVIDENDS & CAPITAL MANAGEMENT For personal use only FY16 DIVIDENDS CAPITAL MANAGEMENT • Plan to retain sufficient cash to fund growth initiatives, capitalise on opportunities & buffer FLT from future economic downturns 60c per 92c per 152c per • Board committed to returning any surplus cash i
Slide 17: FLT's Strengths
FLT’S STRENGTHS For personal use only Balance Sheet Experienced Management Brand Diversity Team Strategic Blueprint in Place
Slide 18: FY17 Guidance
FY17 GUIDANCE For personal use only TTV expected to top $20b $320m-$355m underlying PBT FLT’S Targets Growth expected to accelerate 1H PBT between $105m & during 2H $120m
Slide 19: YTD Result Drivers
YTD RESULT DRIVERS For personal use only Subdued Revenue & Currency Economic Uncertainty Touring Businesses TTV Growth • Airfares significantly • Currency devaluations • Subdued trading in UK • Lower than expected cheaper than during affecting profit following Brexit profits during peak PCP in Austr
Slide 20: Improvement Expected During 2H
IMPROVEMENT EXPECTED DURING 2H For personal use only Stability in UK • Leading to more • Benefits flowing rapid TTV growth as from strategies current prices • Full year profits being implemented become comparable expected to be in globally now with PCP line with FY16 in local currency Strong Ticket
Slide 21: YTD Result Highlights
YTD RESULT HIGHLIGHTS For personal use only Record TTV but modest year-on-year growth to date Earnings growth – NZ, RSA, Canada Strong & accelerating ticket sales in Australia Investment in systems & technology + online/offline New products, acquisitions & revenue streams
Slide 22: FY17 Progress Update
FY17 PROGRESS UPDATE For personal use only New Revenue Streams • Expanded range of Captain's Airfare Packages (domestic and short-haul international products launched) • Platinum product - cancel for any reason without penalty (short-term offer) • Interest-Free holiday payment options extended throu
Slide 23: For personal use only
© © https://www.jetbidders.com U oS By i Bidders Powered by AVAIIN Any flight. Anywhere. Anytime.
Slide 24: Digital Strategy
DIGITAL STRATEGY For personal use only We have a clear global digital commerce strategy. Improving usability and bookability. Investing in scalability. Blending offline and online. Unique access to agents. 24
Slide 25: Working with LCCs
WORKING WITH LCCs For personal use only Sales growing solidly New agreements in place Better connectivity & content online Not significantly affecting FLT’s ability to hit sales targets with other airlines
Slide 26: Expanding Along the P2P Index
EXPANDING ALONG THE P2P INDEX For personal use only CORE LEISURE VOLUME 85-90% of Australian TTV OTA CONTACT FLAGSHIP COMMUNITY HOME EVENTS CENTRES STORES BASED • High volume, low • 24/7 telephone • Hyperstores • Shopping centres • Associates • Travel Expos, touch, low margin sales & assist • Megast
Slide 27: FY17 Expansion Highlights
FY17 EXPANSIONHIGHLIGHTS For personal use only World’s largest Flight Centre shop now open in George St (Sydney) New US hyperstore in Chicago & 1st leisure kiosk in Tysons Corner (Virginia) Flight Centre & FCBT shops now open in Dublin, FCBT in Cardiff Corporate Traveller introduced in Asia and Neth
Slide 28: Coming Soon ...
COMING SOON ... For personal use only Corporate expansion Namibia into 3 new US cities Corporate Mainland Traveller China Mexico Further Expansion
Slide 29: Longer Term Growth Drivers
LONGER TERM GROWTH DRIVERS For personal use only In- Leisure destination Travel Travel Experiences Non- Corporate travel/Other Travel
Slide 30: Leisure Travel Retailing
For personal use only LEISURE TRAVEL RETAILING
Slide 31: Our Journey from Travel Agent To
For personal use only OUR JOURNEY FROM TRAVEL AGENT TO
Slide 32: For personal use only
6s ‘ Allittie.drop of heaven on Earth Reset your bo in "bi tame ” 7? cml ([ Eli lelalma ones
Slide 33: In-Destination Travel Experiences
For personal use only IN-DESTINATION TRAVEL EXPERIENCES
Slide 34: In-Destination Travel Experiences
IN-DESTINATION TRAVEL EXPERIENCES For personal use only Vision: Distributing and Delivering Amazing In-Destination Travel Experiences
Slide 35: Corporate Travel
For personal use only TRAVEL CORPORATE
Slide 36: Truly Global: The Big
TRULY GLOBAL: The Big 5 For personal use only FLT CWT By sales, FLT now ranks among the world’s top 5 corporate travel managers & is BCD AMEX poised for further growth HRG
Slide 37: Other Businesses
For personal use only OTHER BUSINESSES
Slide 38: Other Businesses Adjacent to Travel Business Model
OTHER BUSINESSES For personal use only ADJACENT TO TRAVEL BUSINESS MODEL
Slide 39: For personal use only
For personal use only
Slide 40: Pedal Group
PEDAL GR eUR Our purpose... “Late — Enriching mind, body, earth and soul with the freedom of riding. ADVANCE TRADERS*
Slide 41: Item 1: Re-election of Director
ITEM 1: RE-ELECTION OF DIRECTOR For personal use only To consider and, if thought fit, pass the following ordinary resolution: “That Mr Gary Smith, who retires by rotation and, being eligible, be re-elected as an FLT non-executive director.”
Slide 42: Item 1: Re-election of Director
ITEM 1: RE-ELECTION OF DIRECTOR For personal use only The number of proxies received for the resolution … is: • For: 68,361,895 (98.87%) • Against: 573,483 (0.83%) • Open: 209,423 (0.3%) • Abstain: 49,658
Slide 43: Item 2: Remuneration Report
ITEM 2: REMUNERATION REPORT For personal use only To consider and, if thought fit, pass the following ordinary resolution: “That the Remuneration Report for the financial year ended 30 June 2016 be adopted.”
Slide 44: Item 2: Remuneration Report
ITEM 2: REMUNERATION REPORT For personal use only Proxies The number of proxies received for the resolution is: • For: 52,644,574 (97.68%) • Against: 1,043,590 (1.93%) • Open: 208,163 (0.39%) • Abstain: 97,672
Slide 45: Questions?
For personal use only QUESTIONS?
Slide 46: Flight Centre Travel Group: Who Are We?
FLIGHT CENTRE TRAVEL GROUP … WHO ARE WE? For personal use only IRREVERENCE We don’t believe in conventional wisdom. We take our business seriously but not ourselves. EGALITARIANISM No status or privilege, self important people don’t fit in here. OWNERSHIP We take full responsibility and treat the bu
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