Slide 1: Flight Centre Limited 2010 Full Year Results
For personal use only Flight Centre Limited 2010 Full Year Results A August 24, 24 2010 Presentation by Graham Turner – managing director Andrew Flannery – chief financial officer 1
Slide 2: 2010 – an overview
2010 – an overview For personal use only Strong performance – actual PBT and NPAT up 392% and 267% respectively PROFIT Profit has increased year-on-year in 13 of FLT’s 15 years as a public company Ticket sales at record levels SALES Underlying TTV flat – lower air yields, FX impact on US, UK & Canad
Slide 3: 2010 – operational highlights
2010 – operational highlights For personal use only Healthy results globally – ticket sales up in most markets LEISURE TRAVEL Lowest airfares guarantee introduced in Flight Centre brand Strong cruise and tour sales in Australia Business sector slower to rebound than leisure sector CORPORATE TRAVEL G
Slide 4: 2010 – financial highlights
2010 – financial highlights For personal use only BALANCE General cash doubled to $322m –stronger positive net debt position $144m SHEET Moderate debt – year-on-year movement reflects increased BOS participation and India STRENGTH CASH Strong operating cash flow – $243m inflow over full year FLOW Ca
Slide 5: Results in brief
2010 results For personal use only RESULTS IN BRIEF FULL YEAR RESULTS JUNE 2010 JUNE 2009 Variance % $’ million TTV $11,019 m $11,242 m (2.0)% Gross Profit $1,553 m $1,527 m 1.7% EBITDA $257 3 m $257.3 $86 3 m $86.3 198 1% 198.1% EBIT $203.5 m $26.6 m 665.0% Profit Before Tax (actual) $198.5 m $40.4
Slide 6: Five-year result summary
Five-year result summary For personal use only JUNE 2010 JUNE 2009 JUNE 2008 JUNE 2007 JUNE 2006 (restated) (ex abnormal) TTV $11,019 m $11,242 m $10,880 m $8,880 m $7,810 m Income margin 14.1% 13.6% 13.3% 13.0% 12.9% EBITDA $257.3m $86.3 m $231.4 m $175.0 m $147.6 m PBT $198 5 m $198.5 $40 4 m $40.
Slide 7: FLT's historical NPAT
FLT’s historical NPAT For personal use only 160 140 120 100 Millions s 80 60 40 20 - 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 Financial Year 7
Slide 8: Country review – Australia and United Kingdom
2010 review – other geographies For personal use only COUNTRY RESULTS REVIEW Australia TTV: $6.4b TTV up 11% EBIT: $173.8m Record results – leisure and corporate travel sectors both performed well Businesses: 1 1,069 069 Encouraging performance from emerging businesses – Cruiseabout, Cruiseabout bik
Slide 9: Country review – United States and New Zealand
2010 review – other geographies For personal use only COUNTRY RESULTS REVIEW United States TTV: $1.7b TTV down 26% in AUD (down 14% in local currency) EBIT: ($2.3m) EBIT ($2.3m) ($8.3m including non-recurring items) Businesses: 231 Significant reduction in losses Wholesale profitable over full year,
Slide 10: Country review – Canada, South Africa, Greater China, Dubai
2010 review – other geographies For personal use only COUNTRY RESULTS REVIEW Canada TTV: $705m TTV up 2% in AUD (up 11% in local currency) EBIT: $7.8m Record results Businesses: 183 Corporate and leisure businesses both profitable First full year leisure profit since 02/03 South Africa TTV: $389m TT
Slide 11: Country review – Singapore and India
2010 review – other geographies For personal use only COUNTRY RESULTS REVIEW Singapore TTV: $16m TTV up 315% in AUD (up 381% in local currency) EBIT: ($0.6m) Reduced losses Businesses: 8 Air Services acquisition completed – increased scale India TTV: $75m 100% interest acquired in April 2010 (result
Slide 12: 2011 – growth opportunities
2011 – growth opportunities For personal use only Shop and business growth to return to normal levels for first time since 07/08 EXPANSION Expanded sales force and shop network likely to stimulate TTV growth CORPORATE Corporate travel recovery gained momentum during 09/10 TRAVEL Global market yet to
Slide 13: FLT average international yield
FLT average international yield For personal use only $1,600 $1,500 GFC $1,400 $1,300 , $1,200 $1,100 $1,000 $900 $800 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 13
Slide 14: 2011 – strategic priorities
2011 – strategic priorities For personal use only LEADERSHIP Attracting and retaining the right leaders in the right numbers Sourcing and manufacturing unique land and air product for FLT customers PRODUCT ONE BEST WAY Using FLT’s one best way concept in all major areas, such as brand guides and cus
Slide 15: The web – further growth prospects
The web – further growth prospects For personal use only ENQUIRY Ongoing development of retail brands’ websites GENERATION Improved functionality and travel information to generate enquiry for shops Web-only brands generating enquiry that is serviced online or via the phone DIRECT MODEL p roundthewo
Slide 16: 2011 – Outlook
2011 – Outlook For personal use only SOLID Strong g balance sheet – ready y to g grow and capitalise p on opportunities pp FOUNDATIONS 31 brands in 11 countries catering for mass market and niche sectors SUPPLIER Contracts in place with key airlines and other suppliers RELATIONSHIPS Continuing focus
Slide 17: End of presentation – Questions
End of presentation For personal use only Questions 17