Web Travel Group Limited · ASX:WEB
Web Travel — WebBeds Group — Investor Presentation (November 2016)
37 slides from Web Travel's investor presentation, Nov 22, 2016
Slide 1: WebBeds Investor Briefing
For personal use only WebBeds Investor Briefing John Guscic Managing Director 23 November 2016
Slide 2: B2B WebBeds
For personal use only B2B WebBeds Digital provision of hotel rooms to global partners
Slide 3: The B2B market opportunity
The B2B market opportunity For personal use only Europe Asia Middle East/Africa The Americas Market size $20 Billion $18 Billion $3 Billion $15 Billion Highly experienced management team Over 100 years Over 100 years Over 100 years Over 50 years B2B experience for the B2B experience for the B2B expe
Slide 4: The B2B journey to date
The B2B journey to date For personal use only Mix of organic start up and acquisition Feb 2013: Started with LOH in Dubai as an organic start up, initially serving the Middle East and Africa markets Jul 2014: Purchased Sunhotels to service the European markets, creating a unique position in beach de
Slide 5: Lots of Hotels (LOH)
WebBeds For personal use only Lots of Hotels (LOH) Digital provision of hotel rooms to global partners Ossama Wagdi Chief Executive Officer
Slide 6: LOH Milestones
LOH Milestones For personal use only Oct 2016 Jun 2016 Staff - 74 Nov 2015 Total Contracts Jun 2015 Launch of LOH +250,000 Jun 2014 Launch of Americas Cairo Office Feb 2013 Direct Contracts Oct 2012 1st Booking 1,200 Launch 6
Slide 7: LOH – Today
LOH – Today For personal use only 250,000+ Hotels 15 DMC DI Chains Hotels 2,600+ 25 Direct Suppliers Contracts Transfers, Sightseeing 50 & Car Hire Markets (15 GSAs) XML & 4,000 + WhiteLabel Clients Solutions
Slide 8: LOH – Distribution Network
LOH – Distribution Network For personal use only Active Markets Potential Markets Top 5 MEA Top 5 Americas Top Reciprocals Saudi Arabia USA Turkey UAE Brazil USA Qatar Argentina Egypt South Africa Mexico India Kuwait Canada
Slide 9: LOH – Production Mix
LOH – Production Mix For personal use only WEB vs XML XML 58.4m 20% WEB Top 70 Clients Share 80% Others 35% Top 70 65% Direct Vs GSAs GSAs 25% Direct 75%
Slide 10: LOH – Booking Growth YOY
LOH – Booking Growth YOY For personal use only LOH – Actual Bookings by Year 10
Slide 11: Strategy for Growth in FY17
Strategy for Growth in FY17 For personal use only • Increase Webbeds Direct Content • New DI Connections to include 12,500 Hotels Content • Grow Domestic & Intraregional Product • DMC Products in Top Destinations • XML Clients Optimization Initiative Technology • Certify Key Tech-Houses for rapid gr
Slide 12: Strategy for Growth in FY17
Strategy for Growth in FY17 For personal use only • Differentiating in the B2B Space • Enabling Scale • Increasing Purchasing Power • Network Effect • Leading Market Player 12
Slide 13: Sunhotels
WebBeds For personal use only Sunhotels Digital provision of hotel rooms to global partners Nigel Horne CEO Sunhotels
Slide 14: Our Business
Our Business For personal use only Sunhotels Advantages & Opportunities • Supply: Direct contracting focus, highly Technology supporting growth efficient mid and long tail through DMC • Modern, responsive website and third party provider connectivity • Flexible, scalable, proprietary • Destinations:
Slide 15: Growth Profile - Markets
Growth Profile - Markets For personal use only Major Source Markets Major Destinations › Sweden › Germany › Spain › Portugal › UK › Finland › USA › UAE › Norway › Italy › Greece › Thailand › Spain › Turkey › UK › Caribbean › Denmark › Italy › Germany Top Growth Source Top Growth Markets(1) Destinati
Slide 16: Growth Profile - Bookings
Growth Profile - Bookings For personal use only Sunhotels – Actual Bookings by Year 16
Slide 17: Growth in FY17 Underway
Growth in FY17 Underway only FY17 YTD TTV Highlights Mature Markets: Nordics • Organic share growth through improved inventory use offering to existing clients • Opportunistic new client acquisition Growth Markets • Strong client acquisition pipeline in UK, Spain, For personal Germany, Italy, France
Slide 18: Thomas Cook Strategic Sourcing Partnership
Thomas Cook Strategic Sourcing Partnership For personal use only New Strategic Partnership Partnership Details • Sunhotels has entered a major • Upfront payment to Thomas Cook of strategic partnership to grow the GBP 21 million Complementary Hotel business • Long term contract of Thomas Cook Group (
Slide 19: Partnership Highlights
Partnership Highlights For personal use only Thomas Cook & Sunhotels Sunhotels Will Provide Thomas Cook: • Outsourcing of Contracting • Health and Safety • Booking Fulfillment • Technology to Enable Connectivity 19
Slide 20: What does this mean for Sunhotels?
What does this mean for Sunhotels? For personal use only • Differentiating in the B2B Space • Enabling Scale • Increasing Purchasing Power • Network Effect • Leading Market Player 20
Slide 21: FIT Ruums
WebBeds For personal use only FIT Ruums Digital provision of hotel rooms to global partners Daryl Lee
Slide 22: ASIA – Size of Opportunity
ASIA – Size of Opportunity For personal use only USD$418 Billion market Outbound APAC Expected growth 2015 volume from 2015 - Inbound to 2020 APAC 2015 289 CAGR over 10 279 Million years from 7.9% Million 2005-2015 annually 6.6% Inbound and Outbound grew > 3 Times over 20 years APAC is now No. 2
Slide 23: Market Trends
MARKET TRENDS SEASONALITY MARKET ATTRIBUTES For personal use only Monthly Outbound Travel Trend for Asia Ease of entry Asia Singapore Hong Kong Indonesia Taiwan Malaysia Korea Thailand India China Japan Price Sensitivity Markets: India: Agents deliberately and exhaustively compare prices before movi
Slide 24: Huge Shift from Group Travel to FIT Travel
MARKET TRENDS For personal use only HUGE SHIFT FROM GROUP TRAVEL TO FIT TRAVEL China example: +20% YOY Number of trips by in 2015 mainland solo travellers (in 10,000) FIT GIT 10,000 32M 77M 8,000 6,000 4,000 2,000 0 2010 2011 2012 2013 2014 SOURCE: South China Morning Post article on 23 March 2015 b
Slide 25: Our Approach
OUR APPROACH For personal use only DIRECT CONTRACT XML CLIENTS RETAIL AGENCIES LOCAL Destination Management WHOLESALER Company Internet Right Resources Penetration Business Technology Strategy Different Market Requirements Local Player X Global Player POST /1/SOAP/NonStaticXMLAPI.asmx HTTP/1.1 Host:
Slide 26: China Landscape
China Landscape China arrivals as % of total arrivals For personal use only China to account for China arrivals as % of total excluding intra- region trips approx. 20% of In US$ inbound trips to Europe Billion by year 2020 China Outbound Travel Spend In US$ Billion China Outbound travel Domestic tra
Slide 27: Our Approach: Exclusive Alliance Partnership in China
OUR APPROACH EXCLUSIVE ALLIANCE PARTNERSHIP IN CHINA For personal use only NO. 1 B2B TRAVEL DISTRIBUTOR IN CHINA WHO IS DIDA TRAVEL WHAT DOES SUCCESS LOOK LIKE? • Shenzhen-based • FIT Ruums gains strong foothold in the Chinese market • Established in year 2012; revenues have grown by almost 100 time
Slide 28: Long Term Ambition
LONG TERM AMBITION For personal use only SINGAPORE HONG KONG TAIWAN SOUTH KOREA INDONESIA JAPAN* INDIA* THAILAND* *Coming in 2017. 1 2 3 360 Degree Top Top Partnerships Aggregator Distributor “We are the market leader for travel industry.”
Slide 29: B2B WebBeds
For personal use only B2B WebBeds Digital provision of hotel rooms to global partners
Slide 30: Investment is delivering
Investment is delivering For personal use only Fastest growing B2B business globally in TTV, Bookings, Market Share FY15 expansion investment is delivering expected outcomes today: • Improved Content: Delivering improved content through the expansion of contracting globally - both directly and throu
Slide 31: Investment is delivering – bookings growth
Investment is delivering – bookings growth For personal use only WebBeds – Actual Bookings by Year 31
Slide 32: Investment is delivering – EBITDA growth
Investment is delivering – EBITDA growth For personal use only B2B Division • YTD Bookings growth in $346M $3.4M excess of 40% on pcp • Average booking value FY16 TTV FY16 EBITDA has declined by more than 10% • Revenue to TTV margins > $450M > $11M have improved FY17 FY17 • FY17 EBITDA expected to F
Slide 33: FY17 Guidance
For personal use only FY17 GUIDANCE
Slide 34: FY17 YTD Key Highlights
FY17 YTD Key Highlights For personal use only Blockchain Proof of Concept Solution Built (8 Nov) • First of its kind in the travel industry • In partnership with Microsoft • Offers significant potential cost savings in our B2B business; additional revenue generating opportunities Sale of Zuji (9 Nov
Slide 35: FY17 YTD Trading Performance
FY17 YTD Trading Performance For personal use only Webjet • Limited B2B EBITDA continues targeted to double in FY17to experience strong bookings growth • We expect B2B EBITDAacross all to be around $6 business million in FY16 units • We are targeting B2B EBITDA of $12 million in FY17 • Webjet bookin
Slide 36: FY17 Guidance
FY17 Guidance For personal use only FY17 guidance of $78 million EBITDA • $60 million EBITDA for the continuing businesses – Webjet, Online Republic, Lots of Hotels and Sunhotels (including the Thomas Cook alliance) • $26 million gain on sale of Zuji • Less deductions of $8 million comprising: FY17
Slide 37: Thank You
For personal use only THANK YOU November 2016
WebBeds Group — Investor Presentation (November 2016) on 6ix