Helloworld Travel Ltd · ASX:HLO
Helloworld Travel — Shareholder Meeting (November 2019)
42 slides from Helloworld Travel's shareholder meeting presentation, Nov 14, 2019
Slide 1: 2019 Annual General Meeting of Helloworld Travel Limited
2019 Annual General Meeting of Helloworld Travel Limited 14 November 2019 1
Slide 2: Disclaimer
Disclaimer The information contained in these materials or discussed at the presentation is not intended to be an offer for subscription, invitation or recommendation with respect to shares or securities in any jurisdiction. No representation or warranty, express or implied, is made as to the fairne
Slide 3: Mr Garry Hounsell Chairman
helloworld TRAVEL LIMITED TRAVEL LIMITED 2019 ANNUAL GENERAL MEETING
Slide 4: Chairman – Update & Looking Ahead
CHAIRMAN– UPDATE & LOOKING AHEAD • HLO has again demonstrated strong growth in TTV, Revenue, EBITDA and Net Profit. • The business continues to benefit from our focus on profitable revenue streams, revenue margins and greater operational efficiencies. • The business continues to expand both organica
Slide 5: Our Brand Portfolio
OUR BRAND PORTFOLIO helloworld TRAVEL LIMITED below! betuats QBT == Magellan ETRAVEL | Ad travetedce ills aorHotets = ; Nie, TRAVEL A smart tickets oor ® inspire mart ticket: 5 inspn A air tickets o a.t.s. Pacific TRAVEL LIMITED skiddoo eT Te need it now TOURIST TRANSPORT Fut Fight price, right eeat
Slide 6: Mr Andrew Burnes CEO & Managing Director
Mr Andrew Burnes CEO & Managing Director 6
Slide 7: FY19 Key Metrics
FY19 KEY METRICS • Record TTV both AU and NZ and revenue growth driven by retail network expansion and business acquisitions. TTV Total Dividend • Focus on driving profitable TTV across all business +9.1% $6,511m +13.9% 20.5 cents divisions. • Significant improvement in EBITDA (+20.8%) and NPAT Earn
Slide 8: Growth in Member Networks & Numbers
GROWTH IN MEMBER NETWORKS & NUMBERS 2,447 at 30 June 2019 | 2,223 at 30 June 2018 • Growing our overall network of high calibre and high achieving leisure and corporate agent members across our networks in Australia and New Zealand with strong performance from all network members. Both leisure and c
Slide 9: Focus on the Brand
FOCUS ON THE BRAND • Our Retail brand presence continues to grow. • We are continuing our strong investment in consumer marketing, advertising and sponsorship initiatives. • Growth in brand awareness – most recent research results are in. • Platinum Partnership with News Corporation. • Helloworld TV
Slide 10: Brand Awareness – Latest Results
BRAND AWARENESS – LATEST RESULTS Brand awareness continues to grow in both Australia and New Zealand. Our latest results from October 2019 continue to show growth in prompted and unprompted awareness in Australia • Unprompted awareness has increased over the past 3 years from 22% to 34%. • Prompted
Slide 11: Brand Awareness Tracking
BRAND AWARENESS TRACKING • Awareness of Helloworld Travel has also grown among OTA/Direct users, both in terms of unprompted: 14% to 26%, and prompted: 61% to 72% awareness in Australia – highlighting potential new customer opportunities from those who do not currently use a travel agency to book wi
Slide 12: Brand Awareness Across the Market
BRAND AWARENESS ACROSS THE MARKET Awareness of the Helloworld Travel brand remains at the elevated level seen as a result of the strategic brand building, the wider industry looks like this. Unprompted Brand 83% 83% 85% 81% 82% Awareness 30% 31% 34% 22% 26% 14% 13% 13% 14% 12% Aug-17 Mar-18 Oct-18 A
Slide 13: Our Brand Awareness – Demographics
OUR BRAND AWARENESS – DEMOGRAPHICS Awareness of Helloworld Travel remains stronger among older age groups, and regional residents. Unprompted awareness is particularly up in the core groups of +55 years. 18-34 years old 35-54 years old 55-64 years old 65+ years old 84% 82% 86% 84% 82% 82% 86% 77% 68
Slide 14: Patterns – Likelihood to Use an Agent
PATTERNS – LIKELIHOOD TO USE AN AGENT Travellers are most likely to use a travel agent in the future for a long distance international holiday. Future usage is lower for domestic trips. As we know. Source: KPMG Acuity 14 14
Slide 15: Patterns – Holidays vs Booking with Agents
PATTERNS – HOLIDAYS VS BOOKING WITH AGENTS Unsurprisingly, international holidays are taken less frequently than domestic, but are more likely to be booked through travel agents. The trends of more international holidays per year mirror with respondents who book more with travel agents. Source: KPMG
Slide 16: Consideration
CONSIDERATION Almost a third of respondents who book through OTAs will consider Helloworld Travel - and this is the only brand to see consideration growth in the market over the past two years. Source: KPMG Acuity 16 16
Slide 17: Bookings as Share of Market
BOOKINGS AS SHARE OF MARKET The Helloworld Travel brand looks to have gained a greater share of the market over the last six months - an excellent result. Other brands have not experienced growth. Source: KPMG Acuity 17 17
Slide 18: Net Promoter Score (NPS)
NET PROMOTER SCORE (NPS) The Net Promoter Score is the index that shows Our Net Promoter Score - 32 how likely our customers are to recommend us. Our NPS is driven by customer experience, our advertising and communications. 32 27 We know our customers are strong brand 25 advocates, they are a strong
Slide 19: Business Highlights – Wholesale / Inbound
BUSINESS HIGHLIGHTS WHOLESALE / INBOUND • Strong sales results from enhanced ReadyRooms platform rolled out across Australia & New Zealand. • Expansion of our product offerings across our wholesale range to meet new consumer demands. • Brand consolidation to focus on one brand per market segment • I
Slide 20: Business Highlights – Corporate
BUSINESS HIGHLIGHTS CORPORATE • Significant new accounts won and retained by QBT & APX in FY19 • Show Group proving a valuable addition to our corporate offering, with both travel and freight businesses performing well in the second half of FY19. • Inspire Travel Management, our indigenous joint ven
Slide 21: Business Highlights – Technology Investments
BUSINESS HIGHLIGHTS TECHNOLOGY INVESTMENTS • New ResWorld retail mid-office platform for retail networks launched and live. • Strong uptake of this new system by agents in 1HFY20 • Launch of Helloworld Travel Business Insights dashboard technology. • Air Tickets system two-year upgrade project compl
Slide 22: Business Expansion
BUSINESS EXPANSION • HLO has made a number of strategic business acquisitions to complement the Group’s existing operations and expand future product offerings to an increased network of agents, suppliers and customers. • On 30 June 2019, HLO disposed of its Insider Journeys business. The business w
Slide 23: Evolution of the Travel Industry & Trends
EVOLUTION OF THE TRAVEL INDUSTRY & TRENDS And while our expectations and demands evolve, so to do those of customers. Demand for…. • Experiential Travel • Ethical Travel • Cause related Travel • Environmental Travel • “real” experiences • Wellbeing Travel • These ongoing trends have the knock-on eff
Slide 24: Evolution of the Customer Relationship & Expectation
EVOLUTION OF THE CUSTOMER RELATIONSHIP & EXPECTATION Four key factors to succeed in meeting these needs are having the right people, the right partners, the right environment and the right technology. •• Having Having thethe right right people people to meet to meet the changing the changing needs n
Slide 25: What That Means for Us
WHAT THAT MEANS FOR US • We have the right PEOPLE •• Having the right We have the people to meet the changing right PARTNERS needs and drive the change across the business, across all of our businesses. • We have the right ENVIRONMENT • Having the right partners who provide commercial outcomes to ou
Slide 26: Trading Update Q1 FY20 & Outlook
TRADING UPDATE Q1 FY20 & OUTLOOK • Q1 has started well and we are performing in line with our expectations. • TTV was a record $1.878bn for the quarter – up 10.4% on prior year (+9.2% excluding the impact of business acquisitions and disposals) led by: • Growth in our retail network TTV in Australia
Slide 27: Formal AGM Business
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Slide 28: Adoption of Remuneration Report
Adoption of Remuneration Report Resolution 1 “Approve the Remuneration Report for the year ended 30 June 2019, as set out in the 2019 Annual Report.” 28
Slide 29: Adoption of Remuneration Report
Adoption of Remuneration Report Questions? 29
Slide 30: Adoption of Remuneration Report
Adoption of Remuneration Report Proxy Votes Number Percentage For 58,175,913 99.90 Against 30,371 0.05 Open-Usable 30,225 0.05 Abstain 74,892 Excluded 40,210,150 30
Slide 31: Election of Directors
Election of Directors Election of Mike Ferraro Resolution 2.1 “That Mike Ferraro, who retires by rotation in accordance with the Company’s Constitution and the ASX Listing Rules and, being eligible, is elected as a director of HLO.” 31
Slide 32: Election of Directors
Election of Directors Questions? 32
Slide 33: Election of Directors
Election of Directors Proxy Votes Number Percentage For 98,330,338 99.88 Against 66,307 0.07 Open-Usable 49,425 0.05 Abstain 75,481 Excluded - 33
Slide 34: Election of Directors
Election of Directors Election of Andrew Finch Resolution 2.2 “That Andrew Finch, who retires by rotation in accordance with the Company’s Constitution and the ASX Listing Rules and, being eligible, is elected as a director of HLO.” 34
Slide 35: Election of Directors
Election of Directors Questions? 35
Slide 36: Election of Directors
Election of Directors Proxy Votes Number Percentage For 98,361,825 99.91 Against 34,820 0.04 Open-Usable 49,425 0.05 Abstain 75,481 Excluded - 36
Slide 37: Adoption of Omnibus Incentive Plan
Adoption of Omnibus Incentive Plan Resolution 3 “Approve the establishment and operation of the Omnibus Incentive Plan and the issue of performance rights, options and shares under that Plan.” 37
Slide 38: Adoption of Omnibus Incentive Plan
Adoption of Omnibus Incentive Plan Questions? 38
Slide 39: Adoption of Omnibus Incentive Plan
Adoption of Omnibus Incentive Plan Proxy Votes Number Percentage For 57,675,971 99.58 Against 212,129 0.37 Open-Usable 29,875 0.05 Abstain 93,426 Excluded 40,510,150 39
Slide 40: Poll Procedure
helloworld helloworld Poll Procedure 40
Slide 41: Voting
Voting Closure of Poll Results of Poll Announced to ASX 41
Slide 42: Thank-you
helowodg TRAVEL LIMITED 2019 ANNUAL GENERAL MEETING Thank-you
Helloworld Travel — Shareholder Meeting (November 2019) on 6ix