Web Travel Group Limited · ASX:WEB
Web Travel — FY2015 Earnings Presentation
38 slides from Web Travel's earnings presentation, Aug 20, 2015
Slide 1: FY15 Results Update
FY15 RESULTS UPDATE John Guscic Managing Director 20 August 2015
Slide 2: FY15 Highlights
FY15 Full Year Results FY15 Highlights Strong performance in core Webjet business and B2B divisions drive record result; ZUJI returns to profit FY15 TTV A$ 1,266m 31% 21% Revenue TTV Revenue A$ 119.1m EBITDA A$ 27.9m Underlying EBITDA (1) A$ 30.9m 20% 41% Underlying EBITDA(1) PBT A$ 23.2m EBITDA NPA
Slide 3: Financial results overview
FY15 Full Year Results Financial results overview Full Year Ended FY15 FY14 Inc. / (Dec.) FY15 reported EBITDA includes 30 June 2015 $m $m $m % TTV 1,266 967 299 31.0% $ 1.1 million $ 1.9 million Revenue 119.1 98.6 20.5 20.8% one off acquisition costs for impact of one off foreign Costs 91.3 75.3 15
Slide 4: Segment summary
FY15 Full Year Results Segment summary FY15 FY14 Inc. / (Dec.) Group TTV up 35% TTV $m $m $m % 24% Webjet Zuji 831 207 671 209 160 (2) 23.9% (1.0%) 18 B2C TTV % Webjet TTV Zuji TTV 1% LOH 96 56 39 69.6% Sun-Hotels 133 133 n/a 70% Continuing Operations 1,266 936 330 35.3% Segment TTV B2C (Continuing
Slide 5: Underlying EBITDA (A$m)
FY15 Full Year Results Underlying EBITDA (A$m) FY14 FY15 A$1.9m A$1.1m On off impact of FX Acquisition depreciation costs for affecting SunHotels SunHotels A$30.9m A$1.4m A$29.0m Gain on sale of A$27.9m A$27.9m controlling interest in Webjet Marketing US 5 A$23.3m A$21.9m A$21.9m EBITDA EBITDA EBITD
Slide 6: Ongoing diversification of earnings streams
FY15 Full Year Results Ongoing diversification of earnings streams 23% B2B B2C 77% 6 FY13 FY14 FY15 * Results based on underlying EBITDA of $21.6m in FY13, $21.9m in FY14 and $30.9m in FY15 6
Slide 7: Revenue margin remains on target
FY15 Full Year Results Revenue margin remains on target Revenue/TTV margin Lower margin in FY15 due to changing B2B vs B2C business mix and lower contribution from ZUJI Asia 10.2% Compared to FY14 9.4% 8.6% 7.4% 7.5% • B2B margin – up across all businesses • B2C margin – unchanged in Australia – dow
Slide 8: Strong balance sheet
FY15 Full Year Results Strong balance sheet Generated cash and equivalents of $37.7 Jun-15 Jun-14 Change million Cash $ 76.2m $ 51.8m $ 24.4m Cash balance includes $18.3 million of client Other current assets $ 41.5m $ 26.3m $ 15.2m funds Non-current assets $ 85.1m $ 51.1m $ 34.0m • $18.8 million as
Slide 9: Ongoing Investment
FY15 Full Year Results Ongoing Investment 1H 15 2H 15 FY15 FY14 FY15 vs FY14 B2B A$ 0.8m A$ 1.3m A$ 2.1m A$ 0.4m A$ 1.7m 425% B2C A$ 2.4m A$ 3.0m A$ 5.4m A$ 4.7m A$ 0.7m 14% Total A$ 3.2m A$ 4.3m A$ 7.5m A$ 5.1m A$ 2.4m 46% CAPEX B2C • FY15 CAPEX $7.5 million • Cloud – $2.4 million (46%) increase ov
Slide 10: Final dividend 7.25 cents
FY15 Full Year Results Final dividend 7.25 cents Cents paid – fully franked Final Interim 7.25¢ 7.25¢ 7.00¢ 7.00¢ 6.00¢ 6.00¢ 6.00¢ 6.25¢ 6.25¢ 5.00¢ 10 FY11 FY12 FY13 FY14 FY15 Fully franked final dividend of 7.25 cents 10
Slide 11: B2C Travel
B2C Travel Online travel for the consumer market
Slide 12: B2C Travel B2B Travel
B2C Travel B2B Travel Australia Australia Middle East Europe New Zealand Singapore Africa Hong Kong
Slide 13: Strong growth in core business
FY15 Webjet Full Year Results Strong growth in core business TTV and revenue 24% FY14 FY15 Record TTV reported for each month TTV A$ 671m (1) A$ 831m EBITDA A$ 21.5m A$ 22.3m Underlying EBITDA 11% Comparable EBITDA 20% Underlying EBITDA A$ 20.1m (2) A$ 22.3m Comparable EBITDA A$ 20.1m (2) A$ 24.2m (
Slide 14: Underlying and comparable EBITDA (A$m)
FY15 Webjet Full Year Results Underlying and comparable EBITDA (A$m) FY14 FY15 Comparable A$0.7m A$1.2m A$1.4m Gain on sale of controlling interest in Webjet Marketing US A$22.3m A$22.3m A$21.5m A$20.1m A$20.1m A$20.1m EBITDA EBITDA EBITDA EBITDA EBITDA (reported) FY14 (underlying) (underlying) (com
Slide 15: Domestic and international bookings up
FY15 Webjet Full Year Results Domestic and international bookings up % TTV (FY15) 17% Year-on-year 15 % Domestic bookings Webjet bookings 35% International bookings 34% despite AUD/USD 66% depreciation of 18% International Domestic Intl. Bookings Year-on-Year Growth % Bookings (FY15) 12% 15 38% 33%
Slide 16: Extended lead as #1 OTA brand in Australia
FY15 Webjet Full Year Results Extended lead as #1 OTA brand in Australia 16 Source: Hitwise Experian. Data shows number of visitors for FY15. 16
Slide 17: Webjet tops unprompted recall
FY15 Webjet Full Year Results Webjet tops unprompted recall Top 10 unprompted recalled flight booking websites 57% In recent research conducted by Global 42% Reviews, consumers were asked to try 40% and recall up to five websites used to book flights. 21% Topping the list was Webjet with 57% 20% of
Slide 18: Higher margin revenue streams also growing
FY15 Webjet Full Year Results Higher margin revenue streams also growing Packages TTV Packages • Annualised TTV run rate $44m 47% since June 2014 • Growing contribution from Exclusives A$44.0m A$30.0m Other A$13.2m • Travel insurance and car hire TTV continue FY13 FY14 FY15 to grow at more than 25%
Slide 19: Service continues to drive growth
FY15 Webjet Full Year Results Service continues to drive growth Performance driven by: • Enhanced retailing of travel offers to consumers • Broader consumer offerings providing greater convenience and choice • Website improvements providing better consumer experience • Enhanced ancillary offerings •
Slide 20: Mobile TTV continues to grow
FY15 Webjet Full Year Results Mobile TTV continues to grow Transactions on mobile continue to grow faster than the market Growth driven by • Ongoing enhancements to mobile site • Android and iOS Apps launched FY15 • Year on year TTV growth more than 160% Webjet Australia - Mobile TTV (Mobile Site &
Slide 21: B2C Travel B2B Travel
B2C Travel B2B Travel Australia Australia Middle East Europe New Zealand Singapore Africa Hong Kong
Slide 22: Asia showing signs of recovery
FY15 Full Year Results Asia showing signs of recovery Margins improving in Asia FY14 FY15 • After a difficult 1H, ZUJI Asia saw TTV growth return in 2H TTV (1) A$ 209m A$ 207m • While margins remain under pressure, ZUJI AU (2) A$ 62m A$ 70m changes to pricing methodology and negotiation of unique de
Slide 23: Key highlights
FY15 Full Year Results Key highlights ZUJI Hong Kong ZUJI Singapore ZUJI Australia Ongoing increase of LCC Ongoing increase of LCC Ongoing consolidation content content • Sydney office closure • Air Asia, Scoot and Tiger • Air Asia and Scoot added in • Removed duplication 2H, joining Tiger (launched
Slide 24: B2B Travel
B2B Travel Providing hotel rooms to partners via the online channel
Slide 25: B2C Travel B2B Travel
B2C Travel B2B Travel Australia Australia Middle East Europe New Zealand Singapore Africa Hong Kong
Slide 26: Delivering EBITDA growth
FY15 Full Year Results Delivering EBITDA growth Gaining share as #3 market player in Middle East/African market FY14 FY15 TTV A$ 56m A$ 96m TTV 70% since June 2014 EBITDA A$ (0.2)m A$ 2.3m • Greater seasonality impact in 2H15 due to timing of key holidays TTV margin 6.5% 8.8% $2.3M EBITDA contributi
Slide 27: Sourcing strategy continues to drive growth
FY15 Full Year Results Sourcing strategy continues to drive growth Multi-supply Direct contracting Global chain dynamic Total supply aggregation in key cities inventory agreements offering • 10 third party • 1,200 agreements • Deals completed with • 12 third party partners integrated in place 11 hot
Slide 28: Strong outlook for FY16
FY15 Full Year Results Strong outlook for FY16 Well positioned for delivering growth in FY16 LOH continues to become more embedded with existing customers Increased salesforce focused on growing key target markets TTV FY16 YTD 80% compared to same period last year • July and August are seasonally pe
Slide 29: B2C Travel B2B Travel
B2C Travel B2B Travel Australia Australia Middle East Europe New Zealand Singapore Africa Hong Kong
Slide 30: Strong underlying business growth
FY15 Full Year Results Strong underlying business growth Strong EBITDA growth in underlying business FY14 FY15 • Driven by TTV margin improvement TTV n/a A$ 133m • TTV margin expected to be 9% going EBITDA n/a A$ 1.7m forward Underlying EBITDA A$ 3.8m (1) A$ 4.7m (2) 2H15 impacted by seasonality and
Slide 31: Underlying EBITDA FY15 (A$m)
FY15 Full Year Results Underlying EBITDA FY15 (A$m) A$1.9m A$4.7m A$1.1m A$1.7m 31 SunHotels EBITDA SunHotels One off impact SunHotels EBITDA (reported) acquisition of FX (underlying) costs depreciation 31
Slide 32: Poised for growth in FY16
FY15 Full Year Results Poised for growth in FY16 Well positioned for delivering growth in FY16 • 6 new target markets have been identified • Expanded sales team focused on growing existing and new market opportunities – growth already starting to come through Good penetration Presence, limited share
Slide 33: Foreign exchange (FX) depreciation charge
FY15 Full Year Results Foreign exchange (FX) depreciation charge No hedging at time of acquisition • At the time of acquisition, SunHotels had no hedging in place - consistent with other operators due to the historically strong correlation of Scandinavian currencies to the EUR Depreciation of curren
Slide 34: The B2B market opportunity
FY15 Full Year Results The B2B market opportunity Middle East and Africa Europe US Market size $3 Billion $20 Billion $15 Billion 34 Highly experienced management team Over 100 years Over 100 years Over 50 years B2B experience for the B2B experience for the B2B experience for the LOH team SunHotels
Slide 35: B2B – Accelerating growth in FY16 and beyond
FY15 Full Year Results B2B – Accelerating growth in FY16 and beyond Actively looking for attractive B2B acquisition opportunities • We continue to see real growth opportunities in the global B2B market • We have been actively looking for acquisitions - however to date have not found real value eithe
Slide 36: B2B – Key investment focus
FY15 Full Year Results B2B – Key investment focus LOH US SunHotels • Geographically fragmented market • Increase directly contracted with large wholesale market inventory in up to 12 key European markets • LOH US will provide multi-supply aggregation model to wholesalers • Enable expanded sales forc
Slide 37: Growth Delivered, Growth Accelerating
FY15 Full Year Results Growth Delivered, Growth Accelerating TTV growth FY16 YTD B2C • Webjet TTV is currently growing at more than 15% • ZUJI TTV is currently growing at more than 20% B2B • SunHotels TTV is currently growing at more than 10% • LOH TTV is currently growing at more than 80% Guidance
Slide 38: Thank You
THANK YOU 20 August 2015 i PZUL Shwotets iotsof