Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — Macquarie Securities Australia Conference (May 2013)
30 slides from Corporate Travel Management's conference presentation, May 1, 2013
Slide 1: Macquarie Securities Australia Conference
For personal use only travelctm.com Macquarie Securities Australia Conference Jamie Pherous, Managing Director
Slide 2: Agenda
Agenda For personal use only • Who we are? • Group Performance Highlights • Acquisition Update • Product Innovation • Key Initiatives • Looking Forward
Slide 3: CTM Profile – into FY14
CTM . Profile – into FY14 For personal use only What we do: USA Professional corporate travel services provider Core value proposition • Personalised service model • Best in market technology Brisbane • Measured ROI Gold Coast Perth Sydney Melbourne Auckland • Over 650 FTE staff (500-ANZ, 150-USA) •
Slide 4: Decade of Outperforming Growth
Decade of Outperforming Growth 1000 For personal use only 800 Contribution $160m Acquisition $170m Organic 600 TTV $m *900 400 681 502 200 316 352 235 140 42 56 81 0 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 * Forecast • Grown TTV every year since being founded in 1994 • Last six y
Slide 5: Agenda
Agenda For personal use only • Who we are? • Group Performance Highlights • Acquisition Update • Product Innovation • Key Initiatives • Looking Forward
Slide 6: Group Results
Group Results For personal use only *EBITDA up 26.3% on p.c.p 1H 2013 1H 2012 Change on PCP (%) *TTV $m EBITDA margins reflects USA 431.086 315.881 +36.5% (unaudited) combination Revenue $m 38.742 29.496 +31.3% A&NZ EBITDA margins higher than p.c.p. due to revenue per *EBITDA $m 9.225 7.304 +2
Slide 7: Sales Growth by FY Half
Sales Growth by FY Half For personal use only 1000 900 *900 800 700 681 600 502 TTV $M 500 1st Half 431 Full Year 400 352 315 300 222 371 166 A&NZ 200 100 60-USA 0 2010 2011 2012 2013 * Forecast
Slide 8: Group Performance – 1H13 Highlights
Group Performance – 1H13 Highlights For personal use only Financial • 1H13 EBITDA $9.2m v 1H12 $7.3m (26.3% growth) • Record new client wins, combined with strong retention for CTM Group, particularly USA Growth • Winning market share from a mix of Global TMC’s and boutique operators • USA expect gr
Slide 9: Staff and Client Satisfaction
Staff and Client Satisfaction For personal use only Based on an independent VIBE survey completed in November 2012, 89% of CTM employees are engaged or highly engaged working at CTM Australia and New Zealand Based on a survey of CTM’S Top Australian accounts, CTM achieved a 98% Client Satisfaction
Slide 10: Agenda
Agenda For personal use only • Who we are? • Group Performance Highlights • Acquisition Update • Product Innovation • Key Initiatives • Looking Forward
Slide 11: Merger and Acquisition Update
Merger and Acquisition Update For personal use only 7 successful acquisitions and integrations to date including off-shore. Common themes across all targets: • Strong discipline in selection criteria – looking for the “1 in 100” • Alignment - “Skin in the game” for leader and/or senior Management •
Slide 12: USA – Case study
USA – Case study For personal use only • Acquired Colorado based R&A Travel on 2 July 2012 for US$9.5m, including $5.4m of initial consideration (cash and scrip), and up to $4.1m of contingent consideration • Strategic rationale - improved service for Australian-based accounts with travel originatin
Slide 13: USA – TravelCorp
USA – TravelCorp For personal use only • Acquired TravelCorp 1 May 2013 for US$10.3m (cash and scrip), and up to $9.4m of contingent consideration, subject to profit hurdles. Sales TTV of approximately USD$120m and NPBT of USD$1.9m (approx. 5x5 NPBT) at 31 December 2012. • TravelCorp has been operat
Slide 14: Agenda
Agenda For personal use only • Who we are? • Group Performance Highlights • Acquisition Update • Product Innovation • Key Initiatives • Looking Forward
Slide 15: CTM Mobile
CTM Mobile For personal use only Travellers are connected wherever they are; • View flight and hotel bookings • Flight delay alerts • Seat maps • Gate change alerts • Alternative flight search • Driving directions • Currency converter • Risk notifications • Cost savings messages All booking informat
Slide 16: ticketbank
For personal use only ticketbank • Real-time access to use credits on hold • The ability to take charge of your credits on hold with data at your fingertips • Increase use of credits on hold by travellers • Minimise wastage and reduce costs = demonstrated ROI
Slide 17: pre-trip approval
For personal use only pre-trip approval • A streamlined travel request process for arrangers - no more emails or forms • The power to avoid unauthorised travel bookings • The ability to approve or deny travel requests in a convenient manner • 100% accessibility - you only need an internet connection
Slide 18: Business Intelligence
Business Intelligence For personal use only • Best in market ROI diagnostic tools for clients, developed with our clients • Ability to deliver consolidated reporting and cost reduction strategy consistently across clients in Australia/NZ/USA • Currently rolling out across the USA
Slide 19: Wotif hotel inventory
For personal use only Wotif hotel inventory • Largest property inventory in Australia and New Zealand • Remote locations now available online • Live inventory fully integrated with u- book online booking tool • More competitive rates • Maximise clients policy compliance • Detailed reporting – all bo
Slide 20: Agenda
Agenda For personal use only • Who we are? • Group Performance Highlights • Acquisition Update • Product Innovation • Key Initiatives • Looking Forward
Slide 21: Executing FY13 Initiatives
Executing FY13 Initiatives For personal use only
Slide 22: Agenda
Agenda For personal use only • Group Performance Highlights • Acquisition Update • Product Innovation • Key Initiatives • Looking Forward
Slide 23: Profit Guidance & Trading Update
Profit Guidance & Trading Update For personal use only Upgrade FY13 guidance to 20%-25% EBITDA growth on p.c.p. (circa $21m-$22m EBITDA) Key drivers affecting FY13 performance: • No further erosion in the broader economy. • Continued client win/retention/revenue per FTE execution will have minimal i
Slide 24: FY14 and Beyond
FY14 and Beyond For personal use only • 5 year forward planning for A&NZ to ensure it continues to be a “fortress” of high growth and high profitability that underpins global expansion strategy • USA - replicate Australian model through combination of further accretive acquisitions & organic growth
Slide 25: Any Questions?
For personal use only Any Questions?
Slide 26: Appendix - Financials
For personal use only Appendix - Financials
Slide 27: Comparative 1HFY13 Profit and Loss
Comparative 1HFY13 Profit and Loss For personal use only 6 mths ended 6 mths ended Dec 2012 % of Income Dec 2011 % of Income $'000 $'000 TTV (unaudited) 431,086 315,881 Travel & other Income 38,686 29,340 Yield % of TTV 8.98% 9.28% Operating Expenses (29,461) 76% (22,036) 75% EBITDA 9,225 24% 7,304
Slide 28: Half Year Profit and Loss Highlights
Half Year Profit and Loss Highlights For personal use only • TTV (unaudited) – 36.5% up on p.c.p – reflects strong new business performance and six month contribution from USA • EBITDA – 26.3% up on p.c.p. Profit contribution (EBITDA margin 24%) slightly lower to corresponding period, as a result of
Slide 29: Group Balance Sheet ($m)
Group Balance Sheet ($m) For personal use only • Cash reserves and a small amount of debt Dec 12 $m June 12 $m used to fund USA acquisition and etm earn- Cash 7.3 12.2 out Receivables and other 21.4 26.1 • Debtors have fallen from June 12 due to Total current assets 28.7 38.3 overrides and improved
Slide 30: Group Cash Flow ($m)
Group Cash Flow ($m) For personal use only 6 months 6 months to Dec to Dec 2012 2011 • Strong operating cash flow. Good EBITDA 9.2 7.3 improvement compared to p.c.p Change in working capital 0.6 (2.6) • Other investment cash flows relate to USA acquisition and etm earn-out, funded Income tax paid (3
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