Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — Shareholder Meeting (October 2020)
28 slides from Corporate Travel Management's shareholder meeting presentation, Oct 27, 2020
Slide 1: 2020 AGM – Chairman & Managing Director Address and Presentation
ASX Announcement For personal use only 27 October 2020 2020 AGM – Chairman & Managing Director Address and Presentation Please find attached the following documents to be presented at Corporate Travel Management Limited’s 2020 Annual General Meeting being held today: 1. Chairman’s address; and 2. AG
Slide 2: Chairman's Address: Welcome and Q&A Instructions
CORPORATE TRAVEL MANAGEMENT LIMITED 2020 ANNUAL GENERAL MEETING Chairman’s Address: Ewen Crouch AM WELCOME For personal use only Welcome Ladies and Gentlemen to the 2020 Annual General Meeting of Corporate Travel Management Limited, the company’s first virtual AGM. My name is Ewen Crouch and I am th
Slide 3: Voting Instructions and Board Members
While we will endeavour to answer all of your questions, please note that your questions may be moderated, and if we receive multiple questions on one topic, amalgamated together. Where your questions are not relevant to the business of the meeting, we will contact you after the meeting to discuss y
Slide 4: Notice of Meeting and Resolutions
Members of Corporate Travel Management Limited’s global and regional leadership teams have also joined today’s virtual meeting. If you do have any questions about CTM’s business and operations that we are unable to answer during the course of today’s meeting, one of our team will contact you after t
Slide 5: Chairman's Address: Response to COVID-19
Your Board and management team took swift action to assess and reduce the Group’s cost base. This included reviewing staff requirements so as to determine appropriate capacity in each of our regions to help our customers return to travel in a safe and responsible manner as restrictions are eased. We
Slide 6: Travel & Transport and A$375 Million Entitlement Offer
management team, which the Board wishes to acknowledge. This has been instrumental in enabling the company to manage the impacts of COVID-19, and consider and pursue acquisition opportunities, such as the acquisition of Travel & Transport announced at the end of last month, that will benefit our cli
Slide 7: Board Changes
I would like to acknowledge the substantial contributions made by Greg Moynihan and Admiral Robert Natter. Admiral Natter served on the CTM Board for approximately six years and the breadth of his service background, business experience and deep knowledge of the US market were particularly helpful f
Slide 8: Cost Reduction and Remuneration Adjustments
In addition, other actions were implemented to rapidly reduce employment costs and preserve cash, which included: - over 1,000 roles being made redundant affecting every level across our global workforce; For personal use only - a 25% reduction to fixed annual remuneration for the period March 2020
Slide 9: Incentive Remuneration and SARs Approval
The overarching philosophy for incentive remuneration remains unchanged: to reward, retain and motivate senior leaders; link the reward to shareholder value creation to align senior leaders with shareholders; provide an opportunity for eligible employees to build an equity interest in the Group; and
Slide 10: Travel Restrictions and Outlook
We acknowledge that these policies have kept communities safe. However they have also created significant and continuing economic impacts. Public health authorities have developed the capability to deal with outbreaks effectively. Now that policy makers have greater scientific understanding of the v
Slide 11: Corporate Travel Management Annual General Meeting
For personal use only Corporate Travel Management Annual General Meeting Date: 27/10/2020 www.travelctm.com
Slide 12: Ewen Crouch AM
For personal use only Ewen Crouch AM 2
Slide 13: CTM Board
CTM Board For personal use only Ewen Crouch AM Jon Brett Jamie Pherous Laura Ruffles Sophie Mitchell Chairman Independent Non-Executive Executive Director, Executive Director, Independent Non-Executive Independent Non-Executive Director Managing Director Global COO Director Director 3
Slide 14: Chairman's Address
Chairman’s Address For personal use only Ewen Crouch AM 4
Slide 15: Profit and Loss
Profit and Loss For personal use only PCP % • COVID-19 impacted from late Feb 20 FY20 FY19 $AUD(m) Change • Includes $7.7m of global government grants in TTV 4,561.8 6,457.5 (29%) other income. Grants average $2.5m/month (JobKeeper a minority), but this is off-set by the Revenue and other income 349
Slide 16: Overview of Travel & Transport
Overview of Travel & Transport • Founded in 1946, T&T is a leading US travel management company 2019 TTV by Category 2019 TTV by Customer Sector For personal use only headquartered in Omaha, Nebraska • Core focus on business travel services: Other 9% ‒ Approx. 60% / 40% split between domestic and in
Slide 17: Managing Director Jamie Pherous
Managing Director For personal use only Jamie Pherous 7
Slide 18: FY20 Highlights
| FY20 Highlights For personal use only Page 4
Slide 19: Group Financial Highlights - FY20
Group Financial Highlights - FY20 Change on For personal use only • Underlying EBITDA $65.0m ($74.4m applying AASB 16), Reported ($AUDm) FY20 P.C.P including $0.5m underlying EBITDA for 2H20 TTV (unaudited) 4,561.8 (29%) • Strong liquidity position: Revenue and other income 349.9 (22%) • Zero debt U
Slide 20: 1QFY21 Activity Update
| 1QFY21 Activity Update For personal use only
Slide 21: Q1FY21 Trading Update
Q1FY21 Trading Update (AUD) For personal use only Regional trading update: September best month since COVID19 (underlying Q1FY21 EBITDA2 loss of $1.6m, cash burn down to $3.5m) CTM ANZ – Profitable quarter, positive signs with border openings Revenue • $9.6m1 per month EUR – Lockdowns reducing activ
Slide 22: Travel and Transport Acquisition
| Travel and Transport Acquisition For personal use only Page 4
Slide 23: Key Transaction Highlights
Key Transaction Highlights For personal use only ✓ Acquisition of 100% of Travel & Transport, a leading North American corporate travel business with CY19 TTV of US$2.8bn (A$4.0bn)1 . The deal will close 30 October 2020. ✓ Expected to be EPS² accretive on a pro-forma CY19 basis, pre-synergies (appro
Slide 24: Global Leader in Mid-market Corporate Travel
Global Leader in Mid-market Corporate Travel • Combined business would have TTV of approximately A$10.8b, an increase of ~60% (based on pro-forma CY19)1 For personal use only • Positions CTM as global leader in the mid-market segment2 • Improved competitive position due to a broader diversified clie
Slide 25: Meaningful Increase in North America and European Operations
Meaningful Increase in North America and European Operations For personal use only Combined North American business represents 56% of the Group’s revenue based on CY19 pro-forma1 A$m; CY19 Pro-Forma Pro-Forma CTM North CTM North CTM Pro-Forma T&T3 Synergies America ANZ Asia Group5 America Europe Eur
Slide 26: FY21 and Strategy
For personal use only | FY21 and Strategy
Slide 27: CTM's Focus Remains on Long-term Strategy and Execution
CTM’s Focus Remains on Long-term Strategy and Execution A track record of strong performance and execution • CTM has been successfully operating for 26 years For personal use only • Since inception in 1994 CTM has delivered TTV, EBITDA and dividend growth in 24 of 26 years, in all economic condition
Slide 28: travelctm.com
For personal use only travelctm.com
Corporate Travel Management — Shareholder Meeting (October 2020) on 6ix