Web Travel Group Limited · ASX:WEB
Web Travel — Investor Presentation (March 2021)
34 slides from Web Travel's investor presentation, Mar 18, 2021
Slide 1: Transformation Strategy Update
Transformation Strategy Update. UBS Sydney Investor Session Presentation 18 March 2021 1
Slide 2: WebBeds pre Covid-19
WebBeds pre Covid-19. Pre Covid WebBeds - 2nd largest global B2B provider… landscape Global Accommodation Market. WebBeds Market Share. WebBeds FY19 Sales. as at 1H20. With a total global value c A$800Bn+ TTV (1). of global accommodation market. Sales mix. B2B TTV A$70Bn+(1) 4% FY19 Market Value Glo
Slide 3: A post Covid-19 world
A post Covid-19 world. Covid-19 has • Bedbanks remain a critical distribution channel supporting travel industry recovery. provided opportunity to • Our strategic objective is now to be the #1 global B2B provider. transform our business. • Initiatives are currently underway to be 20% more cost effic
Slide 4: Transformation strategy underway
Transformation strategy underway. Transformation Initiatives underway to deliver 20% greater cost efficiencies at scale. started April 2020. Strategic Key Strategic Initiatives. Opportunity. objective to be Looking at what we sell & how we sell it. • Revenue the #1 global B2B Rethinking How We Do Bu
Slide 5: Rethinking how we do business
Rethinking how we do business. 5
Slide 6: Looking at what we sell & how we sell it
Looking at what we sell & how we sell it. 6
Slide 7: Revenue opportunities in North America
Revenue opportunities in North America. New regional North America. Core North American Market opportunities. • Large wholesale market but historically B2B Segments underrepresented by WebBeds B2B Loyalty B2C Loyalty Online Retail Air Loyalty Consumer facing Agent & consumer Major airlines − 4% mark
Slide 8: Expanded revenue opportunities
Expanded revenue opportunities. New regional Europe APAC Middle East & Africa opportunities. • c. A$26Bn B2B TTV market • c. A$24Bn B2B TTV market • c. A$4Bn TTV market opportunity (1). opportunity (1). opportunity (1). • Will continue to be an • Pre Covid-19 – On track to • Umrah Holidays important
Slide 9: Expanded market opportunity
Expanded market opportunity. New customer Pre Covid-19 Customer Mix. opportunities. Tour OTA’s & Super Apps Corporate Travel Operators • Leveraging shift to online Agents 8% • Member Only deals 20% • Last minute bookings OTA's • WebBeds already sells to Retail Travel Agents, Corporate 17% the Top 5
Slide 10: Differentiation through innovation
Differentiation through innovation. 10
Slide 11: Rezchain
Rezchain. Rezchain provides Rezchain Value Proposition. insurance against future problems. Delivers Saves costs by Resolving accounting Decentralised future loss issues before integrity by smart contract mitigation & travel date eliminating provides reducing provides for a INTEGRITY build-up of TRUS
Slide 12: Covid-19 transformation & focus
Covid-19 transformation & focus. Rezchain delivered • Rezchain insured WebBeds against costly errors in the processing of mass cancellations significant value during Covid-19. • Quickly alerted WebBeds to any integration issues as platform enhancements were rolled out • A greater focus on actioning
Slide 13: Rezchain = real $$ savings
Rezchain = real $$ savings. 5 Years of WebBeds Gains savings on intercompany Reduction in labour and hard costs as a bookings. Hard Costs Saved result of Rezchain have resulted in 93,800 bookings 0.4% savings Labour Costs Saved result in material against TTV financial loss (or 70% of disputed bookin
Slide 14: Opportunities
Opportunities. Opportunity Opportunities for Rezchain beyond the hotel distribution space. exists across industries for partners who Real Estate Automated Pharma Fashion wish to mitigate Settlement Decentralised - Securely sharing Supply chain stamp, title registry system Potential to sell medical d
Slide 15: Investment: LockTrip
Investment: LockTrip. Investment in • Webjet Limited has made an investment of US$4.1 million (for new shares representing a 25% stake) in LockTrip Holdings UK (LockTrip), with a further option to increase that to 51%. an Open Source • LockTrip provides a B2C hotel marketplace, underpinned by a bloc
Slide 16: Why Hydra is a superior blockchain platform
Why Hydra is a superior blockchain platform. Potential Rezchain migration to Hydra to deliver significant benefits. Predictable Scalability of POS Network Truly Shared Decentralised Transaction Fees Operations Security Economy with Governance HYDRA solves this HYDRA has 5x the Proof of Stake Strong
Slide 17: Streamlining technology
Streamlining technology. 17
Slide 18: Pre Covid-19: Complex technology ecosystem
Pre Covid-19: Complex technology ecosystem. Pre Covid-19 our complex technology Multiple touch-points, several ways to do the ecosystem was a same thing & maintenance overhead running all reflection of our platforms ensuring WebBeds product is acquisition strategy. available across the marketplace.
Slide 19: Deploy & begin acceleration
Deploy & begin acceleration. Identify the WebBeds WebBeds Connect 2.0. Consolidate connectivity, components to improving speed to market across all WebBeds trading enable seamless platforms and reducing complexity. global distribution WebBeds Booking Centre. & platform A single point where bookings
Slide 20: Now: Where we are today
Now: Where we are today. Reduce the platform complexity WebBeds Contracting. Unifying contracts into a single platform for & continue to build all WebBeds distribution platforms. Providing tailored interfaces & APIs to seamlessly fit into additional the hotel’s distribution. components. Webbeds Pric
Slide 21: Tomorrow: End of CY2021
Tomorrow: End of CY2021. Opening our new sales channels, API, WebBeds API. A flexible, fast & reliable client API offering Retail Website and the WebBeds suite of products (hotels, vacation rentals, transfer & activities) Cache to the WebBeds Cache. WebBeds Global Ability for API clients to access a
Slide 22: A scalable, efficient & dynamic technology ecosystem
A scalable, efficient & dynamic technology ecosystem to support the evolving & diverse demands of the global marketplace. 22
Slide 23: Increased use of Data Analytics
Increased use of Data Analytics. 23
Slide 24: Data mining of the future
Data mining of the future. From Leveraging meaningful insights. quantitative data As a global wholesaler, WebBeds has a wealth of raw booking data ready to be mined. to qualitative Different sets of data can be mined to support insight. different partners. • Hotels: Gain a deeper understanding of wh
Slide 25: Helping WebBeds target opportunities
Helping WebBeds target opportunities. Changing Example: Top destinations post Covid-19 will likely differ from those pre Covid-19 travel patterns What could be the top APAC destinations post Covid-19 provide unique opportunities. 25
Slide 26: Cost reduction opportunities
Cost reduction opportunities. 26
Slide 27: Finance Backoffice – Where we are today
Finance Backoffice – Where we are today. Multiplatform Risks & Challenges. management • Four x ERPs is complex & System complexities, multiple Business Unit JacTravel Lots of Hotels DOTW SunHotels resource heavy. gateways Booking Engine iVector Juniper DOTW Connect HotelMaker • Four x booking engine
Slide 28: Finance Backoffice – Where we are going
Finance Backoffice – Where we are going. ERP unification On target to deliver. delivers scalability One ERP & drives System integration Business Unit JacTravel Lots of Hotels DOTW SunHotels efficiencies across One Booking engine Booking Engine iVector Juniper DOTW Connect HotelMaker Darwin progr
Slide 29: Other initiatives to improve efficiency
Other initiatives to improve efficiency. Simplifying • Automation projects are underway to streamline processes, reduce manpower costs and improve revenue. processes across • Pre-empting the needs of clients and hotels and automating requests. the business. • Generates revenue which might otherwise
Slide 30: Outlook
Outlook. 30
Slide 31: Cost efficiencies delivery on track
Cost efficiencies delivery on track. 1H21 costs Initiatives are on track to deliver at least 20% greater cost efficiencies at scale. down 42% over 1H20. 8/4/4 8/3/5 Note: 8/4/4 = at scale 8% revenue/TTV and 4% costs/TTV to drive 4% EBITDA/TTV 8/3/5 = at scale 8% revenue/TTV and 3% costs/TTV to drive
Slide 32: Profitability target keeps improving
Profitability target keeps improving. A track record Mar-20: of improving Covid-19 “8/3/5” target (3) 1H19 EBITDA margins Not yet at scale 8/3/5 = 62.5% EBITDA margin over time. & tracking close 65.00% to “8/5/3”; targeting “8/4/4” 55.00% by FY22 (2) 8/4/4 = 50% EBITDA margin 45% 45.00% 8/5/3 = 37.5
Slide 33: Powered for travel recovery
Powered for travel recovery. 33
Slide 34: Thank you
Thank you. 34
Web Travel Group — Investor Presentation (March 2021) on 6ix