Slide 1: Flight Centre Limited 2006 Half Year Results
Flight Centre Limited 2006 Half Year Results 23 February 2006
Slide 2: Our Brands
Our Brands : FLIGHT CENTRE eH CE Leisure FLIGHT Escape CENTRE Travel hogs Corporate Trave: Brands screen = FCM Ris = Ci EVENTS KISTEND Leisure Online Brands flightcantre.com « escapetravel.com au « studentflights.com.au « quickbads.corau « travelthere.com.au
Slide 3: Executive Team
Executive Te Executive Chairman FLIGHT CENTRE kobe Ee & Managing Director FEL Board Graham Turner EGM Franchise, EGM Marketing EGM Leisure EGM Corporate CFO BOS & company EON dee Keith Stanley Sue Garrett Anthony Grigsan Shannon O’Brien Peopleworks Greg Prin ve Gary Hogan Mark Aponas 9 Fring ¥nOG Pr
Slide 4: 2006 Half Year Results
2006 Half Year Resu FLIGHT CENTR pimrriy Dec YTD 2005 Dec YTD 2004* Variance TTv $3.7b $3.2b 14% Revenue $472 m $419 m 13% Net Profit (Before Tax) $49.8m $51.9 m (4% EBITDA $63.0 m $63.6 m (1)% EBIT $44.9 m $47.7 m (6)% NPAT $ 33.6m $ 36.4m (8)% Interim Dividend 20c /share 22.5/share (11)% *2004 adj
Slide 5: Half Year Historical
Half Year Historical FLIGHT CENTRE Dec 2005 Dec 2004* Dec 2003 Dec 2002 TTV (bil) 37 3.2 27 24 % increase on LY 14% 19% 27% 37% income Margin 12.9% 13.0% 12.9% 13.2% PBT (mil) 49.8 51.9 56.1 47.0 NPAT(mil) 33.6 36.4 34.1 31.1 % increase on LY (8)% 6.7% 9.7% 49% EBITDA 63.0 63.6 66.9 55.8 Capex (mil)
Slide 6: Financial Overview
Financial Ovenwmeyv De CENTRE kobe Ee e TTV increased by 14% to $3.7b e PBT of $49.8m, down 4%. Affected by -one-off $4m gain relating to over-ride revenue -$10m losses in RewardPass ~$1.8m loss due to Air Paradise collapse -Increase in non-commissionable revenue e.g. fuel surcharges e $26.8m second
Slide 7: Shop Numbers by Brand
Shop Numbers by FLIGHT CENTRE kobe Ee Opening Balance Closing Balance Flight Centre 915 967 Travel Associates 14 15 Escape Travel 49 55 Student Flights 43 51 Retail Sub-total 1021 1088 FCm Travel Solutions 177 181 Wholesale/complementary 279 265 Intravel 2 2 Total 1,479 57 1,536 Wholesale/complement
Slide 8: Shop Numbers by Country
Shop Numbers by Australia NZ Canada US UK South Africa Hong Kong China Flight Centre 544 168 118 15 92 96 Travel Associates ay Escape Travel 55 Student Flights 51 FCm Travel Solutions 76 14 9 5 56 8 5 8 Wholesale/compiementary 139 38 17 8 22 30 9 2 Intravel 2 Total 882 160 144 28 170 128 14 10 FLIGH
Slide 9: Australia
Australia kobe Ee First Half 2006 Corporate Growth and reasonable profit contribution Leisure Online flightcentre.com.au Australia’s top agency website with increased marketshare Leisure Improved “front-end” trading performance but overall profit down: Costs of Reward Pass Program, Air Paradise Cont
Slide 10: New Zealand and South Africa
FLIGHT CENTRE kobe Ee New Zealand TTV growth 11% Profit below expectations Shop openings 3 South Africa TTV growth 7% Strong profit growth in leisure and corporate Shop openings 3
Slide 11: United Kingdom
United Kingdc First Half 2006 Leisure results “flatlining” Leisure shop openings 13 Corporate shop openings 3 Strong corporate profit growth in SME market
Slide 12: USA and Canada
kobe Ee USA TTV down 3.2% Leisure losses reduced Strong profit growth in corporate SME market Canada TTV growth 18.3% Shop openings 3 Improved performance in leisure & corporate
Slide 13: India, Hong Kong and China
kobe Ee India Contributed 4% to FCL’s TTV Strong performance Regional expansion opportunities Hong Kong and China TTV growth 15.2% Reduction in losses Corporate business openings 4
Slide 14: FCm Travel Solutions network extended to some 30 countries
FLIGHT CENTRE kobe Ee In little more than 18 months, the FCm Travel Solutions network has been extended to some 30 countries
Slide 15: Growth strategy
FLIGHT CENTRE ¢ Continued expansion of the Infinity Holidays wholesale business ¢ International development of the FCm Travel Solutions network e Growth in South Africa, North America and the UK e Expansion of the Flight Centre leisure travel brand in international markets e Expansion in the emergin
Slide 16: An opportunity for FCL (online)
An opportunity for FCL Generates enquiry Information for customers Contributes to over-rides Challenge is to generate profits on-line FLIGHT CENTRE kobe Ee
Slide 17: Guidance 2006
Guidance 2006 eLIeET CENTRE e Tracking close to full year TTV growth target of 12-15% e¢ Second half is traditionally the company’s busiest period ¢ Too early to provide definitive guidance as to the likely full year result ¢ Disappointed if not reasonably close to last year’s IFRS adjusted PBT $115
Slide 18: Outlook
Outlook ¢ Bright outlook for international travel ¢ Competition on most international routes ¢ Airlines substantially increasing capacity ¢ Opportunity to work with Suppliers FLIGHT CENTRE kobe Ee
Slide 19: Passenger Forecast
Passenger Foreca 2005-09 FLIGHT CENTRE kobe Ee ROUTE Forecast Avg Annual Growth Rate Total International 5.6% North Atlantic 5.3% Trans Pacific 5.8% Europe-Asia Pac 5.9% Europe-Mid East 6.6% Europe-Africa 5.7% Within Asia Pac 6.8% North America-Latin America/Caribbean 4.6% Within Europe 5.1% Within
Slide 20: Outbound Competitor Capacity
Outbound Compgert Puen CENTRE. ft Pe UIC EUROPE iscsi PRUNES 4 8 COUE SHARE y Tobe Tasman fe ware) a -
Slide 21: Questions?
Questions?
Slide 22: Appendices
Appendices TTV Cash and Investments Depreciation & Amortisation IFRS FLIGHT CENTRE kobe Ee
Slide 23: Half Year TTV
FLIGHT CENTRE kobe Ee Half Year 05 TIV Dec 05 Variance TIVDec04 *Shops % Dec 05 Australia 2,305 11.2% 2,072 882 New Zealand 323 11.0% 291 160 UK 446 ~0.4% 447 170 RSA 181 6.9% 170 128 USA 29 3.2% 30 28 Canada 225 18.3% 190 144 China & Hong Kong 25 15.2% 22 24 Other 154 6 Total 3,687 14% 3,228 1,536
Slide 24: Cash & Investments
Cash & Invest FLIGHT CENTRE kobe Ee Dec 05 Dec 04 % Var A$m A$m Company Cash 64.7 29.1 122% Client Cash 174.0 174.1 0% Investments 145.4 211.7 -31% Total 384.1 414.9 -7% Notes Dec 04 Investment comparison adjusted for IFRS Cash assets not affected by IFRS adjustments Company Cash increase is due to
Slide 25: Depreciation & Amortisation
FLIGHT CENTRE kobe Ee Dec05 Dec04 %Var A$m A$m Depreciation 17.8 15.6 14% Amortisation Goodwill 0 0.0 Other Intangibles 0.3 0.4 -7% Notes Goodwill & software licenses (incl in other intangibles) no longer amortised under IFRS
Slide 26: IFRS Effects on Equity
IFRS Effects or FLIGHT CENTRE hare: Ref Jun-05 Dec-04 Jun-04 $000 $000 $000 Total equity under AGAAP 387,409 376,340 424,235 Derecognition of revalued software licences b (14,138) (15,159) (16,181) Adjustment to fair value of business combination c (445) - - Provision for decommissioning costs d (1,
Slide 27: IFRS Effects on Profit Before Tax
IFRS Effects Oo FLIGHT CENTRE hare: Ref Jdun-05 Dec-04 #039;000 #039;000 Profit before tax under AGAAP 106,955 46,471 Adjustment to fair value of business combination c (445) - Provision for decommissioning costs d (206) (126) Impairment under AASB 136 e (1,928) - Employee share plan costs f (57) (57) Amo