Slide 1: Full Year Result 2003/04
FLIGHT CENTRE CATE Full Year Result 2003/04
Slide 2: Record profit
Record profit Total Transaction Value (TTV) increased 29% to $5.9 billion Gross margins maintained in volatile market 16% increase in selling staff, 12% increase in shops
Slide 3: Increased final dividend 40.5 cents per share fully franked
Increased final dividend 40.5 cents per share fully franked Continued strong cash generation facilitates special div of 40c & pay out ratio to 70% (previously 45%-55%) New web-based booking service takes Flight Centre to the forefront Increased IT investment and productivity enhancements in 2004/05
Slide 4: Key Financial Results
Key Financial Results $m Growth % TTV $5.9b 29% Operating Revenue $799m 28% Operating Profit (Before Tax & $131.4m 21% Amort of Goodwill) Operating Profit (before tax) $121.3m 19% NPAT $81.9m 17% EBITDA $157m 24% Basic EPS 87.4c per share 14% Dividend (full year) 61c per share 40% Growth calculation
Slide 5: FCL Financial Performance 2004
FCL Financial Performance 2004 2002/03 @ 2003/04 799 Net Profit After Revenue ($m) TTV ($b) Tax ($m)
Slide 6: 2004 Operating Highlights
2004 Operating Highlights « Strong performance from leisure travel operations with profit increasing about 50% « Significant growth and future growth potential for Flight Centre brand in all states « Improvement in Escape Travel’s results « Continued profit in Corporate — marginally down on last yea
Slide 7: 2004 Operating Highlights
2004 Operating Highlights « $11 million profit before tax - result affected by $3 million in one-off costs « Profit improvement expected with development of one main brand in leisure (Flight Centre) and corporate (FCm Travel Solutions) markets « Increased focus on online operations « Benefits flowin
Slide 8: 2004 Operating Highlights
2004 Operating Highlights « Overall profit of $9 million before tax « Solid contribution from Britannic - profit in line with expectations at time of acquisition « Significant improvement and profit from generic leisure and corporate brands « Corporate Traveller now part of Britannic « Ongoing focus
Slide 9: 2004 Operating Highlights
2004 Operating Highlights « Continued strong profitability - operational performance in line with 2002/03 « Results affected by $1 million over-ride loss « Student Flights profitable for first year « Enhanced booking engine added to website in first quarter « Ongoing focus on upstaffing and growth -
Slide 10: 2004 Operating Highlights
2004 Operating Highlights * Result in line with expectations e $AUD1.4 million reduction in losses to $AUD2.6 million, before tax e 2 New shops opened * Corporate Traveller brand consistently profitable e Ongoing focus on manageable expansion - new shop openings and upstaffing, strategic corporate a
Slide 11: 2004 Operating Highlights
2004 Operating Highlights « Result ($AUD2.3m) loss significantly affected by uncertainty surrounding Air Canada « 15 new shops opened e Corporate Traveller brand profitable and to be expanded « Ongoing focus on productivity enhancements and systems improvement « Preferred relationship with WestJet t
Slide 12: Shop numbers by region
Increase 2004 2003 Australia 646 575 71 12% New Zealand 140 128 12 9% South Africa 88 80 8 10% FC UK 82 74 8 11% Britannic 42 42 0 0% USA 17 15 2 13% Canada 115 100 i5 15% Other 9 5 4 80% Total
Slide 13: Capital Management
Capital Management e Increased returns for shareholders +» Increased dividend pay-out ratio -— 70 per cent of net profit « Fully franked special dividend of 40 cents per share (November 2004) « Future special dividends, subject to operational, acquisition and growth requirements « Focus on Earnings
Slide 14: Profit Expectation: 15% growth
rofit Expectation: 15% growth Through ... e« Enhanced productivity — increased product range and margins e Increased higher margin land-based business « Cost effective upstaffing and shop growth « Preferred supplier strategy « Corporate travel growth under one brand Forward Looking Statements Some o
Slide 15: Shop Growth Expectations
Shop Growth Expectations Increase Australia 740 646 94 15% New Zealand 163 140 23 16% South Africa 97 88 9 10% FC UK 99 82 17 21% Britannic 45 42 3 7% USA 23 17 6 35% Canada 132 115 17 15% Other 12 9 3 33% Total 1,311 1,139 172 15% rd Looking Statements information in this presentation may contain p
Slide 16: Questions?
Questions? ee
Slide 17: Flight Centre - Brands
Flight Centre - Brands Corporate Brands Flight Centre Escape Travel Student Flights Travel Associates Overseas Working Holidays Cruiseabout FCm Travel Solutions TQ? Travel Solutions Britannic (UK) Ci Events Stage and Screen Kistend Travel Campus Travel Online Brands o travelthere.com quickbeds.com f
Slide 18: Key Operating Results
Key Operating Results Revenue Revenue Ag$m Growth % Australia 519.6 27% New Zealand 88.7 15% South Africa 31.2 21% FC UK 64.4 21% Britannic 45.6 243% USA 7.8 8% Canada 50.7 19% Other (9.5) (142)% Total 799 28%
Slide 19: Key Operating Results
Key Operating Results Ag$m Growth % Australia 3,813 27% New Zealand 561 10% South Africa 299 31% FC UK 426 15% Britannic 366 273% USA 56 8% Canada 336 21% Other Total
Slide 20: Full Year Results past Years
Full Year Results past 12 Years % Growth Shops % Growth Profit (BT) $,000 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 36% 39% 39% 28% 27% 22% 22% 31% 25% 20% 26% 29% 29% 28% 135 165 199 250 306 364 440 553 671 832 1,019 1,139 13% 22% 21% 26% 22% 19% 21% 26% 21% 24% 22% 12% 21%