Slide 1: Acquisition of Online Republic and Capital Raising
For personal use only ACQUISITION OF ONLINE REPUBLIC AND CAPITAL RAISING John Guscic Managing Director Michael Sheehy Chief Financial Officer 6 June 2016 NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES
Slide 2: Important notice and disclaimer
Important notice and disclaimer For personal use only This presentation has been prepared by Webjet Limited (“Webjet”) in relation to the acquisition by Webjet of Online Republic Group ("Online Republic"), a global travel e-commerce group based in New Zealand (“Acquisition”) and a pro-rata accelerat
Slide 3: Important notice and disclaimer (cont'd)
Important notice and disclaimer (cont'd) For personal use only No investment or financial product advice The information contained in this presentation does not constitute investment or financial product advice (nor taxation, accounting or legal advice), is not a recommendation to acquire Webjet sha
Slide 4: Important notice and disclaimer (cont'd)
Important notice and disclaimer (cont'd) For personal use only Financial data All dollar values are in Australian dollars ($ or AUD) unless stated otherwise. All references starting with “FY” refer to the financial year for Webjet, ending 30 June, and for Online Republic, ending 31 March. For exampl
Slide 5: Summary key messages
Summary key messages For personal use only 1 • Acquisition of Online Republic, a market leading B2C business based in New Zealand with over NZ$200 million in total transaction value 2 • Leverages Webjet's core capabilities into the attractive online car rental, motorhome and cruise segments 3 • Acqu
Slide 6: Transaction overview
Transaction overview • For personal use only Webjet has entered into a binding agreement to acquire Online Republic for NZ$85 million, implying 7.0x pro-forma FY16 EBITDA(1) • Online Republic is a global travel e-commerce group operating four key divisions(2) 1 2 Car Rental Republic Motorhome Republ
Slide 7: Transaction overview (cont'd)
Transaction overview (cont'd) • Purchase price of NZ$85 million (approximately A$79 million (1)) For personal use only Acquisition terms • Customary post completion adjustments • Represents 7.0x pro-forma FY16 EBITDA(2) • ~A$17 million of new Webjet shares issued to the vendors − 22% of purchase pri
Slide 8: Overview of Online Republic
Overview of Online Republic For personal use only Growth in bookings(1) • Global travel e-commerce group operating four key divisions: 1 2 Online bookings of Online motorhome 327,000 rental cars agency 308,000 285,000 3 4 Online cruise SEO & digital FY14A FY15A FY16A agency marketing consultancy Gro
Slide 9: Overview of Online Republic (cont'd)
Overview of Online Republic (cont’d) For personal use only Leadership positions in attractive online leisure segments #2 in Car Rental – Aus/NZ(1) #1 in Motorhomes – worldwide(1) #1 in Cruise- Aus/NZ(1) Search Republic Get this Plan NZ$83m NZ$57m NZ$87m NZ$1m TTV p.a. (2016(2)) TTV p.a. (2016(2)) TT
Slide 10: Strategic rationale for acquisition
Strategic rationale for acquisition For personal use only The transaction will strengthen Webjet's position as Australasia's leading OTA Online Republic is a market leader in the attractive online car, motorhome and cruise segments 1 • • Leadership positions in car rental, motorhome and cruise Solid
Slide 11: Webjet's intentions for Online Republic
Webjet's intentions for Online Republic For personal use only Online Republic's brands will remain independent within the broader Webjet Group • Webjet has an existing commercial partnership with Online Republic in the cruise segment reducing integration risk • Online Republic brands will continue t
Slide 12: Illustrative financial impact
Illustrative financial impact The acquisition will enhance and diversify Webjet's existing product offering For personal use only TTV Webjet FY16 Pro forma FY16 12% • Broader TTV exposure to reflect traveler 22% OR profile B2B 19% B2B B2C B2C • Online Republic revenue growth 78% 69% expected to be e
Slide 13: Funding the acquisition
Funding the acquisition For personal use only Entitlement Offer Vendor Share Placement • Fully underwritten 1 for 6.25 accelerated non-renounceable • ~A$17 million share placement to Online Republic Entitlement Offer to raise ~A$72 million vendors(4) Structure and • Comprises Institutional Entitleme
Slide 14: Entitlement Offer timetable
Entitlement Offer timetable(1),(2) For personal use only Dates and times are subject to change without notice Date (2016) Trading halt and announcement of acquisition and Entitlement Offer Monday 6 June Institutional Entitlement Offer and Institutional Bookbuild opens Monday 6 June (10:00am) Institu
Slide 15: Trading update
Trading update For personal use only • Continued bookings growth and market share gains in both digital retail (B2C) and digital wholesale (B2B) divisions • TTV growth has continued at around 28% p.a., consistent with the growth achieved in 1H16 • Performance consistent with our expectations • We co
Slide 16: Strategic update and conclusion
Strategic update and conclusion For personal use only • The value and service proposition of Webjet's B2C platform is being validated with continued strong TTV growth • Continued investment in our platform, systems and device capabilities to protect B2C our leadership position • Online Republic prov
Slide 17: Appendix A: Online Republic Historic Income Statement
For personal use only APPENDIX A ONLINE REPUBLIC HISTORIC INCOME STATEMENT NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES
Slide 18: Online Republic historic income statement
Online Republic historic income statement For personal use only NZ$m; Mar year end(1) 2014 2015 2016(2) TTV Cars 66.7 71.9 83.3 Motorhomes 32.1 33.3 57.4 Cruises 60.8 66.7 87.4 Search Republic 0.7 0.8 1.1 Total Turnover 160.3 172.7 229.2 Revenue Cars 17.9 18.0 20.6 Motorhomes 5.6 7.2 11.0 Cruises 5.
Slide 19: Appendix B: Glossary
For personal use only APPENDIX B GLOSSARY NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES
Slide 20: Glossary of terms
Glossary of terms For personal use only A$ Australian dollar EV Enterprise value AEST Australian Eastern Standard IFRS International Financial time Reporting Standards B2B Business-to-business NPAT Net profit after tax B2C Business-to-consumer NZ$ New Zealand dollar CAGR Cumulative annual growth Onl
Slide 21: Appendix C: Key Risks and Selling Restrictions
For personal use only APPENDIX C KEY RISKS AND SELLING RESTRICTIONS NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES
Slide 22: Key risks
Key risks 1. Operational risks For personal use only This section discusses some of the risks associated with an investment in Webjet. Market risk Webjet's business is subject to a number of risk factors both specific to its Webjet is exposed to changes in consumer sentiment towards Webjet itself, t
Slide 23: Key risks (cont'd)
Key risks (cont'd) 1. Operational risks (cont'd) For personal use only Online booking market Supplier relationships Webjet and Online Republic are exposed to the significant influence of Google in A key element of Webjet's business model is the strength of the relationships it both search results an
Slide 24: Key risks (cont'd)
Key risks (cont'd) 1. Operational risks (cont'd) For personal use only Hostilities, terrorism and other external events Tourism industry Webjet may be adversely impacted by international hostilities or war, acts of Webjet's operating and financial performance is dependent on the health of the terror
Slide 25: Key risks (cont'd)
Key risks (cont'd) 2. Acquisition risks (cont'd) 3. General risks For personal use only Reliance on information provided Share price fluctuations Webjet has prepared (and made assumptions in the preparation of) the financial As with any entity with ordinary shares listed on the ASX, the market price
Slide 26: Foreign selling restrictions
Foreign selling restrictions For personal use only This document does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Aust
Slide 27: Foreign selling restrictions (cont'd)
Foreign selling restrictions (cont'd) For personal use only Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other