Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Macquarie Conference 2024
16 slides from Flight Centre Travel's conference presentation, May 8, 2024
Slide 1: Macquarie Conference Presentation
Macquarie Conference Presentation by Adam Campbell, CFO May 8, 2024
Slide 2: The FLT Story
The FLT Story A Diverse Global Business ✓ 4 key divisions in 4 regions Americas Proven track record of sales growth in a resilient sector ✓ TTV has exceeded prior year 25 times in 29 years as a listed entity (includes 2 "misses" during COVID) ✓ Large repeat customer base – recurring leisure & corpor
Slide 3: FY24 Trading Update
FY24 Trading Update On track to deliver record full year sales • FY24 TTV expected to surpass $23.7b FY19 result • Solid achievement given: • Widespread business closures since FY19 - circa 60% reduction in leisure bricks & mortar shops during pandemic • Recent network changes, including the GoGo &
Slide 4: Airfares finally starting to fall
A i rfares final l y star ti ng to fall 12.8% decrease in the price of the average international airfare sold in Australia during the FY24 Q3 v FY23 Q3
Slide 5: Focus on delivering a 2% underlying PBT margin
FY24 Focus on delivering a 2% underlying PBT margin 1 2 3 TARGET IN PLACE KEY BUILDING FOR THE FOR FY25 IMPROVEMENT DRIVERS FUTURE • Last achieved by FLT in FY15 • Aiming to deliver sustainable margin as • Revenue margin recovery – better • All brands & businesses working business grows & evolves su
Slide 6: Overview: FLT's "Other" segment
FY24 Overview: FLT's "Other" segment Pillars - Underlying PBT Broadly grouped into two areas Restated H12024 ✓ Operating businesses H12023 $m $m ✓ Head office costs Other Pillar (46.7) (46.8) Operating businesses ✓ Increased investment during FY24 in TP Connects airfare aggregation business to deliv
Slide 7: Continuing to review under-performing businesses
FY24 Continuing to review under- performing businesses GoGo ✓ US wholesale business now closed, as announced at half year ✓ $7.3m trading loss incurred during FY24 1H {FY23: $7.6m full year loss) ✓ Full year losses & closure costs to be excluded from underlying FY24 results (as outlined previously)
Slide 8: Corporate: Continuing to outperform
C O R P O R AT E Continuing to outperform Outpacing sector recovery ✓ Corporate business on track for another record full year result despite global sector only recovering to circa 75% of pre-COVID levels ✓ Now a materially larger business than pre-COVID - TTV for 9 months to March 31, 2024 already
Slide 9: Corporate: Productive Operations
C O R P O R AT E Productive Operations 01 02 03 Digitisation & Standardisation of Enable Self Service Capabilities Content access & distribution Operations New mid & back-office platform deployed • Dynamics now live in 9 countries FCM Platform Enhancements Content Aggregators • Netherlands, Hong Kon
Slide 10: Leisure: Positioned to Grow
LEISURE Positioned to Grow WELL POSITIONED TO GROW TRANSFORMED OPERATING MODEL Core markets: AU, NZ, RSA New operating model with winning models fueling growth Challenger: US, UK, CA, SG POWERED BY MULTI CHANNEL ENABLED BRANDS PRODUCTIVE RETAIL FOOTPRINT Ability for customer to book across multiple
Slide 11: Leisure: Successfully executing key strategies
LEISURE Successfully executing key strategies More efficient ✓ Transformed business with materially lower cost base (fewer shops, people & systems) ✓ New growth blueprint built around winning models that are growing rapidly & highly scalable – luxury, independent & complementary pillars all growing
Slide 12: Leisure: Tapping into new revenue streams
LEISURE Tapping into new revenue streams INITIATIVES UNDERWAY ACROSS ALL FOUR LEISURE CATEGORIES Mass Market Luxury Specialist Independents • Significant expansion in products • Scott Dunn now open in New • 1st Cruiseabout shop opened in • Envoyage brand officially launched available online York (Br
Slide 13: MyTours offering taking off
LEISURE MyTours offering taking off ✓ Highly affordable tour packages with bonus inclusions ✓ Headline deal - $990 package to China, including flights, nine-nights' accommodation, touring & other bonuses 13 | FLT
Slide 14: Supply: Key Focus Areas
S U P P LY Key Focus Areas AUTHENTIC & STRATEGIC PARTNER RELATIONSHIPS INDUSTRY LEADING CONTENT, CONTRACTS & COMMERCIAL RETURNS SUSTAINABLE & ADDITIONAL MARGIN FOR OUR SELLING BRANDS & SUPPLY INVESTMENT IN OUR PEOPLE,TECH & OPERATIONS TO SURFACE & SUPPORT OUR DESIRED RANGES GROWTH IN OUR TARGETED MI
Slide 15: New Global Business Services Division in Place
FY24: GBS New Global Business Services Division in Place Key service provider across finance, technology, security, risk & people & culture to the Group (including Leisure, Corporate & Supply) that: • Delivers transparency of structure & costs • Delivers cost & productivity efficiencies • Invests in
Slide 16: Thank You
FLIGHT ~~ TRAVEL GROUP”
Flight Centre Travel Group — Macquarie Conference 2024 on 6ix