Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — FY2018 Earnings Presentation
30 slides from Corporate Travel Management's earnings presentation, Aug 22, 2018
Slide 1: Full year results 30 June 2018
CORPORATE TRAVEL MANAGEMENT Full year results 30 June 2018. Presented by: Jamie Pherous, Founder & Managing Director Date: 22nd August, 2018
Slide 2: Disclaimer
Disclaimer The information in this presentation does not constitute personal investment advice. The presentation is not intended to be comprehensive or provide all information required by investors to make an informed decision on any investment in Corporate Travel Management Limited ACN 131 207 611
Slide 3: Overview
Overview CTM is an award-winning provider of innovative and cost effective travel management solutions to the corporate market. Its proven business strategy combines personalised service excellence with client facing technology solutions, to deliver a return on investment to clients. Headquartered i
Slide 4: Group Result Highlights
Group Result Highlights Change on Reported ($AUDm) FY2018 P.C.P TTV (unaudited) 4,958.3 19% • Underlying EBITDA up 27% to $125.4m. On a constant currency basis, underlying EBITDA up 28% to $126.4m ͣ Revenue and other income 372.2 14% • Strong organic growth underpins EBITDA performance. Client Under
Slide 5: Growth profile
Growth profile.
Slide 6: Value Proposition
The CTM Story from the beginning – a compelling value proposition. 2018 CLIENT SURVEY Value Proposition 2 Staff in Brisbane, • Highly personalised service …1994 Australia • Compelling technology that adds value ...2018 • Return on investment methodology 2,350 Staff 70+ Countries TTV Over $6bn run ra
Slide 7: CTM Global Footprint and FY18 Performance Overview (AUD$m)
CTM Global Footprint and FY18 Performance Overview (AUD$m) _____________________________________________________ Building Scale EUROPE Market Size USD500b CTM Market Share <1% TTV Run rate $6bn TTV $1,013.3m (+72%) (*+66%) Every region now Revenue $81.7m (+66%) (*+61%) transacting over EBITDA $34.2m
Slide 8: Benefits of scale and technology: IPO to FY18
Benefits of scale and technology: IPO to FY18. Revenue/ Increasing Increasing EBITDA EBITDA/Revenue TTV Yield % Revenue per FTE per FTE % Margin -17% +57% +307% +90% 157k 53K 9.0% 8.9% 148k 33.8% 45k 30.4% 7.8% 7.5% 128k 25.3% More than off-set by Results 29k 17.8% 100k 13k FY10 FY13 FY17 F18 FY10 F
Slide 9: Regional performance
Regional performance.
Slide 10: Underlying FY18 EBITDA Growth Summary (AUD$m)
Underlying FY18 EBITDA Growth Summary (AUD$m) AJT 0.8 Redfern 7.2 *M&A EBITDA values represent EBIDA at time of acquisition announcement for p.c.p. • Organic growth again the catalyst for performance, representing +19% on FY18 baseline PAGE 10 • 2H organic growth 21%
Slide 11: FY18 Regional overview
FY18 Regional overview Australia & New CTM Consolidated Zealand North America Asia Europe Group June-18 June-17 Jun-18 Jun-17 Jun-18 Jun-17 Jun-18 Jun-17 Jun-18 Jun-17 Jun-18 Jun-17 REPORTED AUD $m $m % Change $m $m $m $m $m $m $m $m $m $m TTV 4,958.3 4,161.9 19% 1,155.9 962.3 20% 1,306.1 1,309.9 0%
Slide 12: ANZ
ANZ FY18 FY17 % Change Underlying EBITDA up 21% on the p.c.p.: Reported (AUD) • Region continues to outperform market $m $m TTV 1,155.9 962.3 20% • Winning market share through record new client wins and retention, with market share 15%+ Revenue 108.5 91.5 19% • 80% of all client transactions are on
Slide 13: Asia
Asia FY17 Underlying EBITDA 8% on the p.c.p. (+12% on constant FY18 % Change reported currency): Reported (AUD) $m $m • As previously flagged, tale of two halves, since ticket prices steadied in TTV 1,483.0 1,301.1 14% January 2018. Supplier revenues recovered in 2H to normal levels Revenue 53.8 56.
Slide 14: Europe
Europe Underlying EBITDA up 86% on the p.c.p. (+80% in constant FY18 FY17 % Change currency) Reported (AUD) $m $m • Another strong year of execution and outperformance with 29% organic growth in constant currency TTV 1,013.3 588.6 72% • Improved EBITDA margin due to a combination of CTM SMART techno
Slide 15: North America
North America Underlying EBITDA up 6% on the p.c.p. (8% on constant FY18 FY17 % Change currency): Reported (AUD) $m $m • Strong 2HFY18 wins, mostly global/regional, but delayed implementations TTV 1,306.1 1,309.9 0% • Largest technology investment by CTM region, with SMART suite and Lightning OBT on
Slide 16: Group financial performance
Group financial performance.
Slide 17: Comparative Statutory Profit and Loss
Comparative Statutory Profit and Loss $AUD (m) % FY18 FY17 Change • EBITDA margin has increased to 33.7% (2017 30.3%) TTV 4,958.3 4,161.9 19% due to automation initiatives, scale and integration Revenue and other income 372.2 325.9 14% synergies EBITDA adjusted for one-off non-recurring / • Yield of
Slide 18: Group Balance Sheet
Group Balance Sheet $AUD (m) June June • Future acquisition earn-out payables approximately 2018 2017 $22.5m (2017 $65.6m) for Redfern and Chambers Cash 84.3 79.2 Travel acquisitions Receivables and other 256.4 206.9 • Borrowings at June 2018 are slightly lower at $44.0m Total current assets 340.7 2
Slide 19: Normalised Operating Cash Conversion
Normalised Operating Cash Conversion $AUD (m) June 18 June 17 • Timing of BSP* and RSP^ payments have largest impact on operating cash flow. These timing Cash flows from operating activities 94.4 69.3 differences are short term (1-7 days) Add back: tax and interest 25.2 22.1 • $15m one-off impact on
Slide 20: Cash Flow Summary
Cash Flow Summary $AUD (m) FY18 FY17 EBITDA 124.6 97.0 • Investing cash flows primarily relate to Chambers Acquisition/non-recurring costs 0.8 1.6 Travel, Travizon and Redfern earn-out consideration Adjusted EBITDA 125.4 98.6 funded through short term debt and working capital Non cash items 0.8 0.1
Slide 21: Acquisition update
Acquisition update.
Slide 22: Lotus Travel - effective October 2018
Lotus Travel - effective October 2018 • Established in 1957, Lotus Travel Group Limited is one of Hong Kong’s top Travel Management Companies (TMC), servicing the greater China market, specializing in Corporate Travel Services, B2B and MICE (meeting, incentives, conference and exhibitions) • Website
Slide 23: Strategic Rationale – Lotus Travel Group Limited
Strategic Rationale – Lotus Travel Group Limited Optimise Scale • CTM becomes the largest travel company in Increased performance Hong Kong servicing Greater China. • Overlay the CTM SMART technology suite, • Annualised TTV approaching AUD2.5bn. CTM proven business systems and processes. • Leverage
Slide 24: CTM SMART Technology
CTM SMART Technology.
Slide 25: Technology regional hubs now located in all global regions
Technology regional hubs now located in all global regions Region Tech hub location ANZ Sydney, Australia Over 100 FTE across regional tech hubs all EMEA Hale, United Kingdom located in CTM Offices NA Los Angeles, USA ASIA Hong Kong Goal : To Accelerate speed to market and tailor client development,
Slide 26: Future proofing technology - controlling our destiny
Future proofing technology - controlling our destiny What is CTM SMART technology? Competitive Advantage • CTM developed, integrated end-to- • Speed to market -180 releases p.a. end solution for clients, including: • Developed with and for our clients, • SMART portal, 20+ diagnostic via innovation f
Slide 27: FY19 Guidance Update and Strategy
FY19 Guidance Update and Strategy.
Slide 28: FY19 Guidance update
FY19 Guidance update FY19 underlying EBITDA range of AUD$144-150m (approximately +15%-20% growth on the p.c.p.). Guidance Assumptions: 1. Foreign Currency cross-rates average USD0.76c/HKD6.00/ GBP0.56p during the year. FX sensitivity upon EBITDA in FY19: • For every +/- USD1c movement = approximatel
Slide 29: Key Strategic Initiatives FY19-21
Key Strategic Initiatives FY19-21 Continued Organic Client Facing Productivity & Leverage Our Scale Our People Growth & Acquisition Innovation Internal Innovation & Geography 1. Enhance our value 1. Continuous 1. Internal innovation 1. Demonstrating 1. Empower our teams proposition to client develop
Slide 30: Questions?
Questions?
Corporate Travel Management — FY2018 Earnings Presentation on 6ix