Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — FY2014 Earnings Presentation
28 slides from Corporate Travel Management's earnings presentation, Aug 28, 2014
Slide 1: Full Year Results 2014
For personal use only FULL YEAR RESULTS 2014 Jamie Pherous, Managing Director Steve Fleming, Global CFO Laura Ruffles, CEO ANZ
Slide 2: Disclaimer
Disclaimer For personal use only This document is not a prospectus under Australian law and does not constitute an offer, invitation or recommendation to subscribe for or purchase any security or financial product and neither this document nor anything contained in it shall form the basis of any con
Slide 3: Agenda
Agenda For personal use only • Key Financial Highlights • Acquisition Update • FY15 Technology • FY15 Initiatives • Trading Update Page: 3
Slide 4: Group Result Highlights
Group Result Highlights $m For personal use only Underlying EBITDA up 42% to $27.8m, excluding $1.9m one- TTV (unaudited) 1,384 ↑ 57% off acquisition costs, reflecting 75.1% contribution from Westminster Asia. Revenue and other income 110.5 ↑ 42% Result towards top of CTM’s guidance range ($27-$
Slide 5: EBITDA Growth Summary
EBITDA Growth Summary For personal use only Group underlying EBITDA grew from $19.6m to $28.9m 0.6 28.9 4.2* 1.6 1.8 1.1 19.6^ FY13 ANZ USA M&A USA Organic Asia M&A Asia Organic FY14 EBITDA $m ^ Restated for voluntary change in accounting policy on recognition of Pay Direct Commission (PDC) * Westmi
Slide 6: Award Winning
For personal use only Page: 6 Award Winning
Slide 7: Executing on FY14 Initiatives
Executing on FY14 Initiatives For personal use only Page: 7
Slide 8: CTM Footprint
For personal use only CTM Footprint Prudhoe Bay Fairbanks Anchorage Juneau Dutch Harbor ASIA NORTH Woodinville Seattle Tacoma Spokane Beijing 700 Employees Seoul AMERICA Portland Denver Urbandale Shanghai Tokyo 370 Employees Dallas Fort Worth Baton Rouge New Orleans Guangzhou Taipei Houston Lafayett
Slide 9: EBITDA Contribution by Region
EBITDA Contribution by Region For personal use only FY14 $28.9m FY13 $19.6m* 4.8m 1.7m 5.1m 19.0m 17.9m ANZ North America ANZ North America Asia (5mth) Building diversity through offshore expansion - 34% of FY14 EBITDA offshore. Offshore profit contribution expected to be greater in FY15. * Restated
Slide 10: ANZ
ANZ For personal use only Underlying EBITDA up 6.1% on p.c.p: $AUD ANZ Strong momentum in 2H EBITDA of $10.7m (1H $8.3m), despite patchy 2H FY2014 FY2013 % Change economy due to strong client wins and retention Margin improvement due to productivity execution without compromising TTV (unaudited)
Slide 11: North America
North America For personal use only On comparison, assuming CTD ownership for the same $AUD North America period in FY13, EBITDA up 45.7% on p.c.p due to strong FY2014 ^FY2013 % Change organic growth and synergies from business process integration TTV (unaudited) 306.4m 268.0m 14.3% CTM now in 1
Slide 12: Asia
Asia For personal use only Westminster FY14 contribution is 5 months only, with a full $AUD Asia year contribution in FY15 FY2014*^ FY2013* % Change Yield % of TTV declined due to greater contribution of lower yielding wholesale business, which operates on a much lower 361.7m 319.0m 13.4% TTV (u
Slide 13: Comparative Statutory FY14 Profit and Loss
Comparative Statutory FY14 Profit and Loss For personal use only % $AUD (m) FY2014 FY2013^ change Underlying EBITDA margins have improved slightly as TTV (unaudited) 1,384 56 % 884 a result of improvement of margin in ANZ and North Revenue and Other Income 110.5 77.6 America, despite tough economi
Slide 14: Group Balance Sheet ($m)
Group Balance Sheet ($m) For personal use only $AUD (m) June 14 $m June 13 $m No debt Cash 32.0 13.5 Receivables and other 103.3 23.6 Receivables and payables have increased from June 2013 due to acquisition of Asia. The higher balances are due Total current assets 135.3 37.1 to the wholesale ti
Slide 15: Cash Flow Summary ($m)
Cash Flow Summary ($m) For personal use only $ AUD (m) FY14 $m FY13 $m The group is debt free at 30 June 2014. EBITDA 27.1 18.6* Change in working capital is due to a one-off combination of the Asian balance sheet which has large client receivables due Change in working capital (10.3) 3.1 to the
Slide 16: Agenda
Agenda For personal use only • Key Financial Highlights • Acquisition Update • FY15 Technology • FY15 Initiatives • Trading Update Page: 16
Slide 17: Merger and Acquisition Discipline
Merger and Acquisition Discipline For personal use only CTM’s acquisition strategy has remained consistent across all acquisitions: Strong discipline in selection criteria – looking for the “1 in 100” Alignment - “Skin in the game” for leaders and/or senior management Focus on financial and pe
Slide 18: North America Acquisition Update
North America Acquisition Update USTravel: For personal use only Acquisition completed 1 July 2014 @ 5x Dec13 NPBT USD$1.05m Extends North American footprint to the Pacific North West region Integration currently underway, focusing on business processes and maximising synergies Avia Internatio
Slide 19: Asia Update
Asia Update For personal use only Completed acquisition of 75.1% of Westminster Travel on 29th January 2014: Strong Management Team in place with skin in the game Key focus upon Corporate organic growth Already won and working on a number of regional tenders Five months contribution in FY14
Slide 20: Key Financial Commitments – M&A
Key Financial Commitments – M&A Summary: For personal use only FY15 commitments approximately USD17m (approximately $13m cash/ $4m CTD shares) Maximum payable in FY16 (assuming full earn-out targets reached), approx. USD11m ($5.5m cash, CTD shares) Expected to be fully funded from operating ca
Slide 21: Agenda
Agenda For personal use only • Key Financial Highlights • Acquisition Update • FY15 Technology • FY15 Initiatives • Trading Update Page: 21
Slide 22: FY15 Technology
FY15 Technology For personal use only CTM’s industry-leading SMART technology is customer focused to: • Reduce client operating costs • Manage the safety of their travellers • Maximise user experience • Maximise the effectiveness of their travel programs. SMART technology progressively being rolled
Slide 23: Agenda
Agenda For personal use only • Key Financial Highlights • Acquisition Update • FY15 Technology • FY15 Initiatives • Trading Update Page: 23
Slide 24: FY15 Initiatives
FY15 Initiatives For personal use only Page: 24
Slide 25: Agenda
Agenda For personal use only • Key Financial Highlights • Acquisition Update • FY15 Technology • FY15 Initiatives • Trading Update Page: 25
Slide 26: Trading Update and Guidance
Trading Update and Guidance FY15 underlying EBITDA guidance at $38m-$41m (circa 32-42% on p.c.p.) For personal use only • Guidance reflects 100% contribution from Asia (CTM owns 75.1%) • Underlying FY15 EPS growth expected to be approximately 20%-30% after minority interests • Any unannounced acquis
Slide 27: Year Plan
5 Year Plan Aspirations: For personal use only 5 year forward planning for ANZ, to ensure it continues to be a “fortress” of continued growth and high profitability that underpins global expansion strategy To be in every major region (ANZ, North America, Asia, Europe) with potential for emerging
Slide 28: Thank you. Any Questions?
For personal use only Thank you. Any Questions? Page: 28
Corporate Travel Management — FY2014 Earnings Presentation on 6ix