Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — H1 2016 Earnings Presentation
18 slides from Corporate Travel Management's earnings presentation, Feb 26, 2016
Slide 1: Corporate Travel Management – Half Year Results 2016
For personal use only Corporate Travel Management – Half Year Results 2016
Slide 2: Disclaimer
Disclaimer The information in this presentation does not constitute personal investment advice. The presentation is not intended to be comprehensive or provide all information required by investors to make an informed decision on any investment in Corporate Travel Management Limited ACN 131 207 611
Slide 3: Group Result Highlights
Group Result Highlights $m 1H2016 Change on P.C.P For personal use only Underlying EBITDA up 38% to $28.0m, excluding $2.4m one-off TTV (unaudited) 1,722.7 ↑ 54% net revenue items. Statutory EBITDA $30.4m Top line growth through strong client wins and retention in every Revenue and other income
Slide 4: EPS Growth Since IPO December 2010 and FY16 Profit Growth Build
EPS Growth Since IPO December 2010 FY16 Profit Growth Build For personal use only ? 45.0 Montrose $4m $68m 40.0 CTM 35.0 $36m $28m 27.9 cents per share 30.0 1H 2H FY16 25.0 18.8 20.0 16.3 17.3 *14.9 13.5 15.0 11.6 9.8 *8.2 7.2 10.0 6.6 17.8 3.6 10.6 5.0 7.2 6.3 6.5 6.7 3.0 - 2010 2011 2012 2013 2014
Slide 5: CTM Global Footprint
CTM Global Footprint For personal use only CTM office Operating out of 82 cities in 53 countries, employing over 2,000 FTE Partner office
Slide 6: Years of Continued Growth
Over 20 Years of Continued Growth For personal use only 4000 3750 ? 3500 3250 Approx. 70% organic 3000 growth 2750 2656 2500 2250 TTV AUDm 2000 1750 1500 1384 1250 1000 884 750 682 502 500 316 352 235 250 140 42 56 81 16 19 29 0 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12
Slide 7: EBITDA Contribution by Region
EBITDA Contribution by Region For personal use only 1H16 $28.0m 1H15 $20.2m 9% 1H14 $10.4 20% 32% 41% 47% 35% 80% 21% 15% ANZ NA ANZ North America Asia ANZ North America Asia Europe Building diversity through offshore expansion Page: 7
Slide 8: ANZ
ANZ Underlying EBITDA up 12% on the p.c.p: $AUD ANZ For personal use only Organic growth despite decline in activity and client specific slowdowns 1H2016 1H2015 % Change Record EBITDA margin due to scalability and continued productivity improvements. Testament to business model and technology TT
Slide 9: Asia
Asia For personal use only $AUD Asia Underlying EBITDA up 67% on the p.c.p.: 1H2016 1H2015 % Change Top line growth in new clients primarily across corporate and wholesale segments TTV (unaudited) 814.3m 437.0m 87% Lower yield due to greater wholesale mix, but translating into record EBITDA marg
Slide 10: Europe
Europe For personal use only $AUD Europe 1H2016* Strong market share growth during the period with TTV up 29% on the p.c.p Higher yield compared to other CTM regions due to high international travel TTV (unaudited) 163.2m Continued focus upon productivity and building sustainable organisationa
Slide 11: North America
North America Underlying EBITDA up 9.5% on the p.c.p.: For personal use only $AUD North America Continued reinvestment in a structure and cost base to support long term scalable growth. Integration completion on track for 30 June, 2016. Region well 1H2016 1H2015 % Change positioned for future or
Slide 12: North America Integration Project June, 2016
North America Integration Project 30 June, 2016 January, 2015 For personal use only Back Email System Office Back Office And Website Res Email & System Website Phone System Five CTM Reservation Acquisitions System Reporting Phone & Data System Reporting and Automation Data Automation One integrated
Slide 13: Comparative Statutory Profit and Loss
Comparative Statutory Profit and Loss $AUD (m) 1H 2016 % change 1H 2015 For personal use only Increased amortisation due to M&A activity. It represents non- cash acquisition accounting entry for amortisation of client intangibles (FY16 amortisation of circa $7.3m) TTV (unaudited) 1722.7 54% 1,115.
Slide 14: Group Balance Sheet ($m)
Group Balance Sheet ($m) For personal use only No debt at 31 December, 2015 $AUD (m) Dec 15 $m June 15 $m Short term debt used to acquire Montrose Travel 1 January 2016 Cash 54.2 40.7 (USD27.45m) Receivables and other 132.6 158.0 Reduction in receivables and payables is due to December being a
Slide 15: Cash Flow Summary ($m)
Cash Flow Summary ($m) 6 mths FY16 $m 6 mths FY15 $m For personal use only $ AUD (m) Strong cash conversion from operations Statutory EBITDA 30.4 19.1 Working capital has improved due to capital management Change in working capital 20.4 10.0 initiatives and one-off reversals being; Income tax pa
Slide 16: FY16 Key Strategic Initiatives
FY16 Key Strategic Initiatives • Enhance our value proposition and leverage competitive advantage across CTM network • RESULT: High client retention rates, with high personalised service and ROI savings being key drivers in feedback For personal use only • Outperform in local, regional and global se
Slide 17: CTM SMART Technology – significant client uptake
CTM SMART Technology – significant client uptake For personal use only • End to end Travel Platform • Modern Technology Stack • Growing user base • Competitive Advantage Page: 17
Slide 18: Trading Update and Guidance
Trading Update and Guidance For personal use only Guidance: • FY16 underlying EBITDA reiterated at the top end of Guidance, at $68m. Assumptions: • Acquisitions continue to perform to expectations • No further economic shocks, continuation of acquisition integration success • Decline in activity fro
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