Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Deutsche Bank Travel Conference 2016
24 slides from Flight Centre Travel's conference presentation, Mar 23, 2016
Slide 1: Deutsche Bank Travel Conference
DEUTSCHE BANK TRAVEL CONFERENCE 23 MARCH 2016 For personal use only Presentation by Adam Campbell, CFO
Slide 2: Presentation Overview
PRESENTATION OVERVIEW For personal use only • Reflection – 20 Years As A Listed Entity • The Future – Strategies & Longer Term Vision • Questions?
Slide 3: 20-Year Growth Story
For personal use only 20-YEAR GROWTH STORY
Slide 4: FLT's 20-Year Growth Story
FLT’s 20-YEAR GROWTH STORY For personal use only Celebrating 20 Years as a Public Company 20b 10,000 TTV Businesses 15b 7,500 TTV $billion Businesses 10b 5,000 5b 2,500 - - 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H Student Universe Co
Slide 5: Consistent Growth
CONSISTENT GROWTH For personal use only TTV has exceeded PCP 19 16.5% CAGR in TTV times FLT’S 20-YEAR RECORD $1.34b returned to 16.9% CAGR in PBT shareholders in fully franked dividends
Slide 6: FLT at its IPO
FLT AT ITS IPO For personal use only 4 leisure brands Flight 95% of sales in Centre 1 corporate Australia & brand NZ Limited 1995 About 1000 employees in 5 countries
Slide 7: FLT Today
FLT TODAY For personal use only Almost one third of Some 40 sales generated in the brands Travel retailing, corporate, Americas & Europe travel experience, non- travel, youth/student Generating Flight about 50% Centre 6 dedicated of TTV corporate outside Travel brands Australia Group 2016 Now one of
Slide 8: 1H16 TTV by Region
1H16 TTV BY REGION For personal use only 47% of 1H TTV was generated outside of Australia Australia EMEA Americas Asia NZ
Slide 9: Keys to Success
KEYS TO SUCCESS For personal use only Durability: Long record of achieving consistent growth Adaptability: Financial strength: Ability to adapt to Strong balance changing market sheet with circa conditions & trends $400m in free cash Diversity: Unique model: FLT'S Standard systems, Brands, sectors &
Slide 10: Looking Ahead
For personal use only LOOKING AHEAD
Slide 11: Strategic Journeys
STRATEGIC JOURNEYS For personal use only Product Journey Digital Journey Physical Journey People Journey Sales Journey Business Journey
Slide 12: Physical Journey: Multi-Team Shops
PHYSICAL JOURNEY: MULTI-TEAM SHOPS For personal use only • 10% of existing shops are either hyper or mega stores • Multi-team stores are more productive, have higher morale and deliver a vastly improved customer experience % Shops % TTV % Prof it 100% 75% 50% 25% 0% Stand Alone Multi-Team
Slide 13: Digital Journey
DIGITAL JOURNEY For personal use only Longer term goal to create Enhanced Digital digital tools for Centres of FLT’s Excellence corporate Broader & brands faster adoption of digital capabilities within P2P Accelerated brands development of online brands
Slide 14: Book With Me
For personal use only BOOK WITH ME
Slide 15: Six Key Growth Paths
SIX KEY GROWTH PATHS For personal use only Travel retailing Travel Non-travel experiences FLT Travel Corporate incubation travel Youth & student
Slide 16: Travel Retailing
TRAVEL RETAILING For personal use only CORE LEISURE VOLUME Call Multi-Team Home OTA Community Events Centre Stores Based • High volume, low • 24/7 telephone • Hyperstores • Shopping centres • Associates • Travel Expos, touch, low margin sales & assist Discover Europe, • Megastores • CBD and strip •
Slide 17: Travel Experience Brands
TRAVEL EXPERIENCE BRANDS For personal use only Buffalo FLT’s expanding Tours network of tour Back- operators & Top Roads destination Deck management Touring companies Greater control over the travel experience
Slide 18: Corporate Travel
CORPORATE TRAVEL For personal use only A Major Global Player Corporate brands generated 35% of 1H turnover (circa 27% 5 FLT now one of the world's largest corporate travel managers years ago) Brand Diversity 6 dedicated brands Targeting specific market segments Ongoing Expansion 4 acquisitions so fa
Slide 19: Corporate Value Propositions
CORPORATE VALUE PROPOSITIONS For personal use only • Delivered locally by dedicated teams - no off-shoring or call centres Industry-leading service proposition • FCM judged World's Leading TMC for five consecutive years & Best National Travel Management Company at the 2015 National Travel Industry A
Slide 20: Youth & Student
YOUTH & STUDENT For personal use only Multi billion dollar global travel sector Under-40s now StudentUniverse.com represent 48% of the acquisition Aussie outbound travel market Developing a strong Leisure shops, websites, network of youth- social networking, touring focussed brands
Slide 21: 20-29s: A Large Travel Sector
20-29s: A LARGE TRAVEL SECTOR For personal use only Age of Outbound Travellers Under-19 20-29 30-39 40-49 50-59 60-69 70+ Source: Australian Bureau of Statistics 2014/15 Short-Term Outbound Departures
Slide 22: Travel Incubation
TRAVEL INCUBATION For personal use only Possible investment in Weighing up the travel-related longer term start-ups opportunity to develop incubation hubs in key locations Opportunity to work with next generation innovators globally
Slide 23: Non-Travel
NON-TRAVEL For personal use only • Retailer 99 • FC Bikes Health & Business • Healthwise Bikes • Wholesaler financial Education School planning • Moneywise Advance • FC Travel Traders Academy Profitable businesses with solid future growth potential
Slide 24: Questions
For personal use only QUESTIONS
Flight Centre Travel Group — Deutsche Bank Travel Conference 2016 on 6ix