Web Travel Group Limited · ASX:WEB
Web Travel — Webjet — Shareholder Meeting (November 2018)
24 slides from Web Travel's shareholder meeting presentation, Nov 21, 2018
Slide 1: Webjet AGM
WEBJET AGM 21 November 2018 B2C TRAVEL B2B HOTELS Page 1
Slide 2: Managing Director's Presentation
Managing Director’s Presentation JOHN GUSCIC Managing Director B2C TRAVEL B2B HOTELS Page 2
Slide 3: FY18 Highlights
FY18 Highlights Page 3
Slide 4: Who is Webjet?
DIGITAL TRAVEL BUSINESS spanning both consumer and wholesale markets Who is B2C Travel B2B Hotels Webjet? Leading online consumer Digital fulfillment of hotel rooms travel brands to global partners • Webjet - #1 OTA in Australia and New • WebBeds - #2 B2B global player and the Zealand fastest growin
Slide 5: FY18 Financial highlights
$ 3 BN $291 M TTV Revenue FY18 Financial Up 54% Up 54% highlights (1) $ 87.4 M $ 55.7 43.2 M EBITDA NPAT (before AA) Up 71% Up Up 30% 63% (1) For the Continuing Operations Page 5
Slide 6: FY18 Key highlights
Record financial performance • For the continuing operations FY18 • $87.4 million EBITDA – up 71% • $55.7 million NPAT (before AA) – up 63% Key • 30.0% EBITDA margin – up 303bps highlights Booking CAGR continues to increase • 4-Year Total Booking CAGR - 44% • 4-year Organic Booking CAGR - 28% Scale
Slide 7: Divisional highlights
Webjet OTA Online Republic WebBeds Divisional Bookings (‘000) 1,549 + 10% 501 + 12% 2,277 + 214% highlights TTV $1,345 + 14% $313 + 7% $1,354 + 181% million million million EBITDA $58.7 + 36% $13.3 - 11% $27.2 + 7649% million million million TTV/ Revenue 10.8% + 52bps 10.1% - 18 bps 8.4% (1) +61 bps
Slide 8: Organic Bookings Growth
Organic Bookings Growth Continues to Increase Total Booking Growth: • B2C 4 yr CAGR = 21% • B2B 4 yr CAGR = 147% • B2C+B2B = 44% FY14 FY15 FY16 FY17 FY18 Webjet Webjet Webjet Webjet Lots of Hotels Webjet Lots of Hotels Lots of Hotels Lots of Hotels Sunhotels Lots of Hotels Sunhotels Sunhotels Sunhot
Slide 9: B2B Hotels
B2B Hotels Why are we winning share? Page 9
Slide 10: Significant growth potential
US $50 Bn+ TTV … and each market has Significant Market Opportunity… different characteristics growth Fastest growing potential Significant number of independent B2B region; consumer #2 player – hotels preferences vary by country yet 3+% of Europe Asia total global market High proportion of offline
Slide 11: WebBeds Strategy overview
• Market overview WebBeds • Global market US$50+ billion TTV Strategy • • Highly fragmented market with few global players Industry consolidation represents significant opportunity to gain share overview • Build on our #2 global B2B position • Currently the fastest growing B2B player in the world •
Slide 12: Our differentiated offering
• Full global inventory offering Our • Highly competitive prices differentiated • User-friendly technology offering Multi-supply aggregation strategy Note: As at 30 June 2018 Page 12
Slide 13: Why we are winning share
Why we are The WebBeds model One of very few winning global players • Provide easy access to global hotel accommodation inventory • Most clients use several B2B providers – as #2 global player, we are a meaningful inclusion • Offer hotels access to the fastest growing global distribution platform sh
Slide 14: Directly contracted inventory driving competitive advantage
Increasing Relevance of JacTravel Inventory Direct contracts are a key component Directly of our global distribution network • Direct contracts help replace lower margin 10.0% 8.6% contracted inventory with higher margin inventory 8.0% 6.0% o TTV from JacTravel inventory sold to inventory WebBeds cl
Slide 15: Acquisition of Destinations of The World (DOTW)
Acquisition of Destinations of The World (DOTW) Page 15
Slide 16: Transaction Summary
• DOTW is a leading independent B2B player of scale Transaction • Headquartered in Dubai with offices in MEA, APAC, Europe and the Americas • US$529 million (A$734 million) TTV and US$16.4 million (A$22.7 million) EBITDA (1) Summary • • c.12,300 directly contracted hotels and significant global hote
Slide 17: DOTW at a Glance
DOTW at a Glance • Pure-play B2B accommodation wholesale platform connecting hoteliers with OTAs, DOTW is a corporate travel agents, retail travel agents, wholesalers and tour operators c.5,000 c.12,300 Directly Leading Customers • A leading independent B2B player of scale with contracted hotels(1)
Slide 18: Strategic Rationale for Acquisition
Increases scale and consolidates WebBeds' position as the clear #2 global B2B provider 1 • The Acquisition increases WebBeds' FY18 TTV by A$734 million (US$529 million)(1) with a combined Strategic FY18 TTV of A$2,088 million (US$1,505 million) on a pro-forma basis Rationale 2 Highly complementary o
Slide 19: Significantly Enhances WebBeds' Scale
Continues WebBeds' Evolution – TTV (A$m)(1) 2,088 Significantly 1,354 734 Enhances 482 229 346 1,354 - 56 WebBeds' FY13 FY14 FY15 FY16 FY17 FY18 (2) FY18 PF (2) Scale • Started with LOH in Dubai as • Acquired • LOH expands • Sunhotels • Acquired • Acquires an organic start up, initially Sunhotels to
Slide 20: Diversification of Global Footprint
FY18PF TTV by Source Market Pro-Forma A$2,088 million Diversification Americas MEA Americas MEA Americas MEA 8% 19% 5% 38% 7% 24% of Global + = APAC 14% Footprint Europe 28% APAC Strengthens Europe 18% Europe APAC 51% 59% 29% WebBeds’ FY18PF TTV by Destination Market market position Pro-Forma A$2,08
Slide 21: Significant Addition of Directly Contracted Inventory
Additional Directly Contracted Inventory a Key Competitive Driver, Providing Significant Benefits Across Allotment, Availability and Rates DOTW(1) WebBeds(2) • Direct contracts are a key competitive driver in B2B wholesale distribution offering higher Significant Americas 10% MEA 18% Americas 12% ME
Slide 22: FY19 Guidance
FY19 Guidance Page 22
Slide 23: FY19 Trading Update
• On track to deliver at least A$110 million underlying EBITDA for the existing Webjet Webjet businesses for FY19 • Assuming the acquisition of DOTW closes on 22 November 2018, Webjet expects DOTW to contribute incremental EBITDA of at least A$10 million in FY19 reflecting FY19 DOTW timing of the No
Slide 24: Questions?
Questions? B2C TRAVEL B2B HOTELS Page 24