Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — Shareholder Meeting (February 2016)
21 slides from Corporate Travel Management's shareholder meeting presentation, Feb 11, 2016
Slide 1: Annual General Meeting
Annual General Meeting 29th October 2014 JAMIE PHEROUS, MANAGING DIRECTOR Celebrating 20 Years 1994 2014
Slide 2: Disclaimer
Disclaimer This document is not a prospectus under Australian law and does not constitute an offer, invitation or recommendation to subscribe for or purchase any security or financial product and neither this document nor anything contained in it shall form the basis of any contract or commitment. I
Slide 3: Agenda
Agenda: • CTM Footprint and Strategy • Trading Update • Acquisition Update
Slide 4: 20 Years of Consecutive TTV Growth
20 Years of Consecutive TTV Growth 2200 *2200 2000 1800 CTM established May 1994 (operating over 20 years) 1600 Listed on the ASX December 2010 1400 1384 1200 TTV $m 1000 800 884 600 682 400 502 352 316 200 235 16 19 29 42 56 81 140 0 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11
Slide 5: Award Winning
Award Winning 2014 Best National Travel 2014 Best Travel Agency Management Company Hong Kong Winner 9 of the last 11 years 5 of the last 7 years Page: 5
Slide 6: Strategy
Strategy Aspirations: To be in every major region (ANZ, North America, Asia, Europe) with potential for emerging markets where suitable ANZ, continues to be a “fortress” of continued double digit profit growth that underpins global expansion strategy Win market share via local organic growth i
Slide 7: Unique regional value proposition
Europe (plan by end of FY15) North America Asia 370 700 Employees Employees ANZ 450 Employees Unique regional value proposition Operating out of 37 cities in 15 countries Over 1500 employees Forecast FY15 TTV $2.2bn. Powerhouse in Asia Pac region underpinned by uniform values: • Highly personalised
Slide 8: EBITDA Profit Contribution by Region
EBITDA Profit Contribution by Region FY15: Guidance $38-$41m FY14: $28.9m FY13: $19.6m Other Other 13% 34% Other ANZ 50% 50% ANZ 66% ANZ 87% Building diversity through offshore Expansion FY15 off-shore profit contribution expected to be circa 50% before any future acquisitions Page: 8
Slide 9: FY15 Initiatives
FY15 Initiatives Strategic goals Enhance client service and experience through on-going SMART technology development. Progressive global roll-out. Focus on high service delivery and demonstrating RO! to clients Cross-sell brands and regions (ANZ/USA/Asia) Sales team expansion (ANZ /USA/Asia) Strateg
Slide 10: Technology
Technology • CTM’s industry-leading SMART technology is customer focused to: • Reduce client operating costs • Manage the safety of their travellers • Maximise user experience • Maximise the effectiveness of their travel programs • SMART technology progressively being rolled out across the entire CT
Slide 11: Agenda
Agenda: • CTM Footprint and Strategy • Trading Update • Acquisition Update
Slide 12: Trading Update and Guidance
Trading Update and Guidance Upgraded guidance: • FY15 underlying EBITDA guidance expected to be above $41m (previously $38-$41m) • Guidance reflects 100% contribution from Asia (CTM owns 75.1%) • Guidance assumes no economic shocks, continuation of USA acquisition integration success • Any future ac
Slide 13: ANZ Trading Update
ANZ Trading Update New • Strong momentum from FY14 wins • Continue to win new business creating a solid FY15 Clients • Building market share Client • 1QFY15 client activity trading up for first time since Q2FY11 Activity • The majority of Top 20 clients trading higher than p.c.p. Domestic • Average
Slide 14: North America Trading Update
North America Trading Update • Strong start in new client wins including global client segment Clients • Sales and marketing investment expected to accelerate under one brand across 17 cities, 7 states into CY15 People and • Building upon local accountability and empowerment across the region via si
Slide 15: Asia Trading Update
Asia Trading Update • Key focus upon scalable corporate organic growth Clients • Already won and working on a number of regional tenders • Client retention strong through integration phase • Strong Management team in place with skin in the game People • Westminster recently awarded Best Agency in Ho
Slide 16: Agenda
Agenda: • CTM Footprint and Strategy • Trading Update • Acquisition Update
Slide 17: Merger and Acquisition Discipline
Merger and Acquisition Discipline CTM’s acquisition strategy has remained consistent across all acquisitions: Strong discipline in selection criteria – looking for the “1 in 100” Alignment - “Skin in the game” for leaders and/or senior management Focus on financial and people due diligence for
Slide 18: North America Acquisition Update: USTravel
North America Acquisition Update USTravel: Acquisition completed 1 July 2014 @ 5x Dec13 NPBT USD$1.05m Extends North American footprint to the Pacific North West region Update: Tracking above our expectations for 1QFY2015 Being part of CTM has contributed to winning and retaining business
Slide 19: North America Acquisition Update: Avia International
North America Acquisition Update Avia International: Acquisition completed 1 September 2014 @5.5x Dec13 NPBT USD$750k Bolsters presence in one of the largest travel markets in the USA (Houston), the centre of the US energy industry Update: Becomes our Centre of Excellence for Energy, Off-shore
Slide 20: Future Acquisitions
Future Acquisitions UK/Europe: • Currently investigating a number of options, plan to have a solution by end of FY15 • Key plank of our global strategy to have comprehensive coverage in the key global corporate markets • Enables CTM to genuinely compete in the global/regional client segment • Region
Slide 21: Thank you
Thank you www.travelctm.com
Corporate Travel Management — Shareholder Meeting (February 2016) on 6ix