Web Travel Group Limited · ASX:WEB
Web Travel — H1 2019 Earnings Presentation
36 slides from Web Travel's earnings presentation, Feb 21, 2019
Slide 1: Webjet Limited 1H19 Results Presentation
WEBJET LIMITED 1H19 RESULTS PRESENTATION JOHN GUSCIC, Managing Director TONY RISTEVSKI, Chief Financial Officer 21 February 2019 B2C TRAVEL B2B HOTELS Page 1
Slide 2: Record Performance Continues
$$1.9 3 BN BN $175.3 $291 MM $$ 87.4 58.0 M M Record TTV Revenue Revenue (2) EBITDA Performance Continues Up Up Up 71% (1) Up 54% 29% Up54% 33% 42% Demonstrating Powerful Global 95% Growth $ 43.2 38.3 M $ 43.2 M Adjusted NPAT NPAT Cash (before AA3) Up Up 30% 61% Conversion Up 30% (4) (1) Shows resul
Slide 3: Our B2B evolution
(1) EBITDA $70M $58.0M Our B2B $60M evolution $50M $41.0M 30.1 WebBeds is $40M 12.8 now the $25.2M 6.9 $30M 0.9 biggest 6.1 7.2 business by $20M 25.7 28.5 EBITDA $10M 20.4 - (3.3) (3.6) (7.5) ($10M) 1H17 1H18 1H19 (1) For Continuing Operations - refer to page 34 for full description WEB Online Repub
Slide 4: B2B Hotels WebBeds
B2B HOTELS WebBeds DIGITAL PROVISION OF HOTEL ROOMS TO GLOBAL PARTNERS Page 4
Slide 5: WebBeds delivering profitable growth
A$ 1H19 1H18 Change Continuting Operations (1) Bookings ('000s) 1,579 1,054 +50% WebBeds TTV 1,036 million 629 million +65% Revenue (2) 85.1 million 49.4 million +72% delivering EBITDA TTV / Revenue Margin (3) 30.1 million 8.2% 12.8 million 7.9% +136% +35bps profitable TTV / Revenue Margin (excl TC)
Slide 6: WebBeds AMEA Highlights
A$ 1H19 1H18 Change Bookings ('000s) 365 279 +31% TTV 256 million 195 million +32% WebBeds EBITDA 10.9 million 5.2 million +111% AMEA (1) Middle East & Africa – ongoing strong growth in tough market Highlights • Now the regional market leader - #1 player operating in 25 markets • TTV up 16%, 16% in
Slide 7: WebBeds Europe Highlights
A$ 1H19 1H18 Change Bookings ('000s) 777 590 +32% TTV 563 million 350 million +61% WebBeds EBITDA 17.9 million 8.9 million +100% Europe (1) Profitable growth in challenging market environment Highlights • Strong organic growth despite ongoing impact of record hot 2018 European summer and uncertainty
Slide 8: WebBeds Europe Thomas Cook partnership update
A$ 1H19 1H18 Change Bookings ('000s) 121 49 +147% TTV 113 million 44 million +156% WebBeds Europe Thomas Cook TTV continues to grow; revenue recognition to start from June 2019 • Over 3000 direct contracts acquired from Thomas Cook are available to all WebBeds customers. Thomas Additional 400 contra
Slide 9: WebBeds Asia Pacific Highlights
A$ 1H19 1H18 Change Bookings ('000s) 263 185 +42% TTV 140 million 84 million +67% WebBeds EBITDA (0.6 million) (1.3 million) +56% Asia Asia Pacific remains the fastest growing B2B region with significant potential Pacific (1) • TTV up 67%; 56% in base currency • Organic TTV up 35%, Underlying market
Slide 10: WebBeds DOTW Highlights
A$ 1H19 (1) Bookings ('000s) 174 WebBeds TTV 77 million EBITDA 2.0 million DOTW Integration underway and tracking ahead of plan Highlights • Acquisition announced 5 November 2018 and completed on 21 November 2018 • Since 1 January 2019, DOTW is now integrated into the WebBeds global regional structu
Slide 11: Directly contracted hotels
Increasing relevance of acquired inventory JacTravel from Sept 2017; DOTW from Jan 2019 12.0% 10.9% 10.0% 8.6% 8.9% Directly 8.0% 6.0% contracted 4.0% hotels 2.0% 0.0% Continue to % Intercompany of Total TTV for WebBeds drive margin improvement Direct contracts are a key component of our global dist
Slide 12: At least $40 million additional EBITDA expected in FY20
At least $40 million additional EBITDA expected in FY20 WebBeds • In addition to organic growth in our existing WebBeds businesses, we expect the following to deliver at least $40 million additional EBITDA in FY20 FY20 EBITDA • DOTW – additional 5 months contribution and revenue and cost synergies e
Slide 13: "8/4/4" target for FY22
“8/4/4” target for FY22 WebBeds • We are not yet at scale in all markets and are already tracking close to our “8/5/3” target (at scale, 8% revenue/TTV and 5% costs/TTV to drive 3% EBITDA/TTV) FY22 target • By FY22 we believe we can deliver “8/4/4” - 8% revenue/TTV and 4% costs/TTV to drive 4% EBITD
Slide 14: Webjet.com.au
WEBJET.COM.AU AUSTRALIA / NEW ZEALAND Page 14
Slide 15: Ancillary products and scale driving TTV margin improvement
A$ 1H19 1H18 Change Ancillary Bookings ('000s) 785 754 +4% products and TTV 684 million 642 million +7% scale driving Revenue 74.1 million 66.3 million +12% EBITDA 28.5 million 25.7 million +11% TTV margin TTV / Revenue Margin 10.8% 10.3% +52bps improvement EBITDA Margin 38.4% 38.8% -36bps Continuin
Slide 16: Flight bookings continue to outperform
Webjet OTA is now 50% of the entire OTA flight market Flight Webjet Growth Market Growth bookings 4.1% 3.4% 1.1% Webjet Domestic Domestic continue to Year-on-year Bookings (3) Bookings (2) (ABV up 6.1%) Webjet flight outperform bookings (1) 10.0% 5.3% Webjet International International Bookings (5)
Slide 17: Brand strength
Ongoing product improvements/ Brand value offerings • TTV margin increase coming through ➢ Launched Webjet Member Only Hotel strength across both flights and ancillary products Deals, delivering incremental savings for • Continued growth in size and scale is Webjet customers driving higher helping d
Slide 18: Online Republic
ONLINE REPUBLIC Global Marketplace Page 18
Slide 19: Improved 1H19 reflects strategy to increase TTV margins
A$ 1H19 1H18 Change Bookings ('000s) 241 243 -1% Improved TTV 147 million 154 million -5% Revenue 16.2 million 14.9 million +8% 1H19 EBITDA 6.9 million 6.1 million +14% reflects TTV / Revenue Margin 11.0% 9.7% +134bps strategy to EBITDA Margin 42.6% 40.7% +197bps increase TTV margins and 1H19 result
Slide 20: Motorhomes and Cars performed in line with expectations
MOTORHOMES CAR HIRE CRUISE Motorhomes and Cars • Bookings growth continued • Bookings growth was flat in • Bookings fell in line with performed in to track ahead of market line with global car rental expectations due to reduced • Foreign language bookings market; Australian and New capacity line wit
Slide 21: Corporate
Corporate Page 21
Slide 22: Corporate Division
EBITDA (A$M) 1H19 1H18 Change B2C (1) 35.4 million 31.8 million +11% B2B 30.1 million 12.8 million +136% Corporate Corporate (7.5 million) (3.6 million) -108% Division Total EBITDA 58.0 million 41.0 million +42% • 1H19 Corporate costs for Continuing Operations include: • FX losses of $1.8 million ($
Slide 23: 1H19 Financial Highlights
1H19 Financial Highlights Page 23
Slide 24: 1H19 Financial Highlights
1H19 Financial Highlights 1H19 vs 1H18 Statutory Result Continuing Operations (1) Underlying Performance (2) (includes DOTW and one-offs) (includes DOTW and excludes one-offs) (excludes DOTW and one-offs) TTV $1,867m 29% $1,867m 29% $1,790m 24% Revenue (3) $175.3m 33% $175.3m 33% $168.4m
Slide 25: Balance Sheet
Cash & Equivalents Stable • $182.7 million as at 31 December Dec-18 Jun-18 Change 2018 includes $23.2 million of Summary Balance Sheet $m $m $m client funds • $190.8 million as at 30 June 2018 Balance includes $25.9 million of client Cash & equivalents 182.7 190.8 (8.1) funds Trade & receivables 360
Slide 26: Cash Flow and Cash Conversion
1H19 1H18 1H19 1H18 Cash Flow Summary Operating Cash Conversion $m $m $m $m Cash Flow EBITDA Change in working capital (1) 51.8 (64.1) 40.0 (48.0) Cash flow from Operating Activities (1) Add back: tax and interest (26.1) 13.8 (14.5) 6.5 and Cash Income tax paid (2) (9.3) (4.2) Add back: acquisition
Slide 27: CAPEX Summary
CAPEX Summary 13.0 14.0 1H18 B2C B2B Corporate Land & Buildings 1H19 Underlying CAPEX down 5% • 1H19 CAPEX $14.0 million, up 8% on pcp • Adjusted to reflect proforma 1H18 including JacTravel CAPEX for July and August 2017, 1H19 CAPEX was down 5% on pcp • FY19 CAPEX expected to be up 25% on FY18 due
Slide 28: CAPEX Declining spend relative to EBITDA
$60M $58.0M 100% CAPEX Declining $50M 80% $41.0M spend $40M 60% relative to $30M EBITDA $20M 31.8% 24.2% 40% 20% $10M $0M 0% 1H18 1H19 EBITDA (Continuing Operations) CAPEX as % of EBITDA Page 28
Slide 29: Interim Dividend 8.5 cents fully franked
Interim Dividend 8.5 CENTS PAID FULLY FRANKED 8.00c 10.00c 12.00c . 7.50c 8.00c 8.50c 6.50c FY16 FY17 FY18 FY19 Interim Final Page 29
Slide 30: FY19 YTD Update
We reconfirm guidance and remain on track to deliver at least $120 million EBITDA (excluding one-offs associated with the acquisition of DOTW) FY19 YTD WebBeds • We continue to target bookings growth of more than 5 times the underlying market in all markets, Update notwithstanding the uncertainty su
Slide 31: Q&A
Q&A B2C TRAVEL B2B HOTELS Page 31
Slide 32: Thank You
Thank You B2C TRAVEL B2B HOTELS Page 32
Slide 33: Appendix
Appendix B2C TRAVEL B2B HOTELS Page 33
Slide 34: Description of Result Categories
Description of Result Categories Statutory Result Continuing Operations Underlying Performance • 1H19 includes 6 weeks of DOTW • 1H19 excludes acquisition costs of • 1H19 excludes 6 weeks of DOTW and acquisition costs of $6.2M and $6.2M and debt establishment costs and acquisition costs of $6.2M and
Slide 35: Financial Results
Financial Results Statutory Result Continuing Operations (1) Underlying Performance (2) 1H19 1H18 Change 1H19 1H18 Change 1H19 1H18 Change $m $m $m % $m $m $m % $m $m $m % TTV 1,867 1,443 424 29% 1,867 1,443 424 29% 1,790 1,443 347 24% Revenue 175.3 131.9 43.5 33% 175.3 131.9 43.5 33% 168.4 131.9 36
Slide 36: Segment Summary Continuing Operations
1H19 1H18 Change Continuing Operations (1) $m $m $m % Group TTV (continuing operations) 29% pcp TOTAL TTV B2C TTV 2% Webjet 684 642 42 7% Zuji AU (incl VAH) - 18 (18) (100%) • Webjet TTV 7% Online Republic 147 154 (7) (5%) • Online Republic 5% AMEA 256 195 62 32% Europe (incl TC) 563 350 213