Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — FY2022 Earnings Presentation
33 slides from Corporate Travel Management's earnings presentation, Aug 17, 2022
Slide 1: FY22 Results Presentation
ASX Announcement 17 August 2022 FY22 Results Presentation Attached is Corporate Travel Management Limited’s 2022 full year results presentation for the year ended 30 June 2022. Authorised for release by the Board. Contact details Media enquiries: Alasdair Jeffrey – Rowland – Alasdair.Jeffrey@rowland
Slide 2: Corporate Travel Management Full Year 2022 Results
Corporate Travel Management Full Year 2022 Results
Slide 3: Disclaimer
Disclaimer The information in this presentation contains summary information about the current activities of Corporate Travel Management Limited ACN 131 207 611 (Company) and its subsidiaries. It should be read in conjunction with the Company’s other periodic and continuous disclosure announcements
Slide 4: Index
FY22 RESULTS Index FY22 Highlights 4 Technology and ESG 11 Regional Performance 14 Acquisition Update 20 Group Financial Summary 23 FY23-24 Outlook 28 Page 3
Slide 5: FY22 Highlights
FY22 Highlights Page 4
Slide 6: CTM highlights
FY22 RESULTS CTM highlights Successfully converting • FY22: TTV $5.1bn, revenue $389m, underlying: EBITDA $59.8m, PBT $22.3m, NPAT $17.5m activity recovery into • 4Q22: TTV $1.8bn, revenue $141m, underlying: EBITDA $35.7m, PBT $25.5m, NPAT $20.5m revenue and PBT Starting run rate for FY23 (4Q22 annu
Slide 7: Superior scale and business model delivers in 4Q22
FY22 RESULTS Superior scale and business model delivers in 4Q22 FY22 Revenue and other income FY22 Underlying EBITDA (A$m) (A$m) $160 +66% ENDEMIC $40.0m ENDEMIC $140 $35.0m $120 $30.0m $100 -3.6% DELTA +6% OMICRON $25.0m $80 $20.0m $141m $35.7m $60 $15.0m $40 $83m $80m $85m $10.0m DELTA OMICRON $20
Slide 8: FY23-25 outlook - IATA passenger forecasts in CTM regions
FY22 RESULTS FY23-25 outlook - IATA passenger forecasts in CTM regions IATA forecast passenger numbers 120% IATA avg. 4Q22 100% Share of 2019 80% 60% 40% 20% CY21 CY22 CY23 CY24 CY25 Asia Pacific Europe North America IATA Avg. for CTM regions • IATA expects overall traveler numbers to exceed pre-COV
Slide 9: The trajectory - a significantly larger business (+75%) post-COVID
FY22 RESULTS The trajectory - a significantly larger business (+75%) post-COVID Graph legend: ① FY19: record revenue and EBITDA (pre-COVID) ② Recovery phase begins: targeting additional $1 of revenue translating into 50c of EBITDA beyond break-even ③ Current position: 4Q22 annualised revenue recover
Slide 10: Initiatives to offset inflation/resource constraints
FY22 RESULTS Initiatives to offset inflation/resource constraints Innovative recruitment • Addressing industry shortage by heavily investing in training programs, CTM Travel Academy strategies • Results: Represents c15% of ANZ staff numbers @ June 2022, expanding to all CTM regions FY23 • Majority o
Slide 11: Productivity gains offsetting inflation/resource constraints
FY22 RESULTS Productivity gains offsetting inflation/resource constraints Increasing Revenue per FTE (Productivity) $200 Leveraging CTM scale and technology investment: Thousands 1. 4Q22 revenue/FTE +14% versus FY19 (pre-COVID) $190 • Leveraging scale and NA synergies $180 • Focus on automation of n
Slide 12: Technology and ESG
Technology and ESG Page 11
Slide 13: Highlight- Transatlantic Bridge (TAB) single source solution
FY22 RESULTS Highlight- Transatlantic Bridge (TAB) single source solution Insert Heading Here CTM Portal CTM Approve CTM Mobile CTM Advisor CTM Data Hub Insert Heading Here Insert Heading Here • Our “Home” for global travel • Set global and local trip • Instant notifications of • Traveler CRM that •
Slide 14: CTM sustainability strategy
FY22 RESULTS CTM sustainability strategy Our Purpose: To drive environmental, social and governance sustainability principles which provide long term support to our business stakeholders and the communities in which we operate. 2022 employed Global Head of ESG and Sustainability. Our sustainability
Slide 15: Regional Performance
Regional Performance Page 14
Slide 16: Group overview
FY22 RESULTS Group overview YoY (AUD$m) FY21 1H22 3Q22 4Q22 2H22 FY22 Change TTV 1,609.4 2,083.1 1,174.6 1,813.1 2,987.7 5,070.8 215% Revenue and other income 200.5 163.0 84.9 140.8 225.7 388.7 94% Underlying EBITDA (7.2) 18.2 5.9 35.7 41.6 59.8 EBITDA / Rev & Oth Inc Margin 11.2% 25.4% FY22 Outlook
Slide 17: North America
FY22 RESULTS North America YoY (AUD$m) FY21 1H22 3Q22 4Q22 2H22 FY22 Change TTV 755.5 948.9 641.9 711.1 1,353.0 2,301.9 205% Revenue and other income 96.0 92.0 53.2 72.5 125.7 217.7 127% Underlying EBITDA (10.7) 6.0 5.2 16.0 21.2 27.2 EBITDA / Rev & Oth Inc Margin 6.5% 22.1% FY22 Outlook • 4Q22 reve
Slide 18: Europe
FY22 RESULTS Europe YoY (AUD$m) FY21 1H22 3Q22 4Q22 2H22 FY22 Change TTV 387.3 806.6 313.3 324.8 638.1 1444.7 273% Revenue and other income 42.0 43.8 14.4 25.7 40.1 83.9 100% Underlying EBITDA 10.1 20.9 4.2 12.3 16.5 37.4 270% EBITDA / Rev & Oth Inc Margin 24.0% 47.7% 47.9% FY22 Outlook • 4Q22 reven
Slide 19: ANZ
FY22 RESULTS ANZ YoY (AUD$m) FY21 1H22 3Q22 4Q22 2H22 FY22 Change TTV 442.8 238.6 165.5 607.8 773.3 1,011.9 129% Revenue and other income 42.0 21.1 13.4 33.8 47.2 68.3 63% Underlying EBITDA 7.7 1.0 1.6 9.3 10.9 11.9 55% EBITDA / Rev & Oth Inc Margin 18.3% 4.7% 27.5% FY22 Outlook • 4Q22 recovery: TTV
Slide 20: Asia
FY22 RESULTS Asia YoY (AUD$m) FY21 1H22 3Q22 4Q22 2H22 FY22 Change TTV 23.9 89.0 53.9 169.4 223.3 312.3 1,207% Revenue and other income 18.9 6.0 3.9 7.4 11.3 17.3 (8%) Underlying EBITDA (5.4) (2.6) (0.9) 0.5 (0.4) (3.0) EBITDA / Rev & Oth Inc Margin 6.8% FY22 Outlook • 4Q22 maiden profit post COVID,
Slide 21: Acquisition Update
Acquisition Update ctm Page 20
Slide 22: HLO Corporate and Entertainment (ANZ)
FY22 RESULTS HLO Corporate and Entertainment (ANZ) CTM took ownership of the business 31 March 2022, coinciding with rapid activity recovery in ANZ Acquisition assumptions: • $30m underlying EBITDA at full recovery ($22m plus $8m synergies) • Included a 10% client loss provision Actions already take
Slide 23: Summary of other acquisition and expansionary activity
FY22 RESULTS Summary of other acquisition and expansionary activity Safe2Travel, Singapore - May 22 • Part of the strategy to build greater presence in Singapore to service growing client base • Integration well underway, already merged into one office Opened CTM Tokyo, Japan - July 22 • Supports gr
Slide 24: Group Financial Summary
Group Financial Summary Page 23
Slide 25: Profit and loss
FY22 RESULTS Profit and loss $AUD(m) FY22 FY21 %Δ 4Q22 • 60% of FY22 underlying EBITDA earned in 4Q22 • Recovery in activity converted successfully to TTV 5,070.8 1,609.4 215% 1,813.1 revenue and profit Revenue and other income 388.7 200.5 94% 140.8 • 4Q22 underlying PBT $25.5m and underlying NPAT $
Slide 26: Non-recurring items
FY22 RESULTS Non-recurring items $AUD(m) FY22 FY21 • Acquisition and Integration costs represent 100% of non- recurring costs Items in Underlying EBITDA • Integration costs for Travel & Transport now complete Acquisition costs (3.3) (7.2) Integration costs (8.9) (11.5) • Integration of HLO Corporate
Slide 27: Comparative statutory balance sheet
FY22 RESULTS Comparative statutory balance sheet $AUD(m) Jun 22 Jun 21 • Operating cash has increased by $33.7m from the p.c.p to $126.5m Cash 142.1 99.0 Receivables 281.1 175.4 • Increased receivables and payables a function of increased Other current assets 15.1 16.3 client activity in 4Q22 and ti
Slide 28: Cash flow summary
FY22 RESULTS Cash flow summary $AUD(m) FY22 FY21 • Operating cash flow conversion remains strong, with no change EBITDA statutory 48.2 (31.1) to the fundamental long-term cash conversion experience of the business Non-cash items 4.4 1.1 Change in working capital 26.4 (33.3) • Recovery working capita
Slide 29: FY23-24 Outlook
FY23-24 Outlook Page 28
Slide 30: FY23-24 outlook
FY22 RESULTS FY23-24 outlook FY24 - Full recovery assumes underlying EBITDA $265m on $810m revenue Assumptions: • Assumes recovery in line with IATA forecasts¹ • Greater China to open borders with no travel impediments by June 2023 • Supply constraints are resolved in all CTM markets by June 2023 •
Slide 31: FY23-24 Outlook continued - current trading
FY22 RESULTS FY23-24 Outlook continued - current trading Current trading Demand remains strong: • Revenue in June (74% recovery) materially higher than April 22, noting 4Q22 revenue recovery 69.5% • Strong start to the year in new client wins August year to date: • NA/EU - currently in vacation peri
Slide 32: Glossary
FY22 RESULTS Glossary Client SLA’s Client Service Level Agreements CTM regions ANZ- Australia and New Zealand, NA - North America, EU- UK and Europe, Asia - Asia EBITDA Earning before Interest, Tax , Depreciation, Amortisation EPS Earnings per share FTE Full time equivalent employee IATA Internation
Slide 33: travelctm.com
travelctm.com
Corporate Travel Management — FY2022 Earnings Presentation on 6ix