Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — Shareholder Meeting (October 2014)
27 slides from Flight Centre Travel's shareholder meeting presentation, Oct 30, 2014
Slide 1: Annual General Meeting 30 October 2014
For personal use only Annual General Meeting 30 OCTOBER, 2014
Slide 2: Today's agenda
Today’s agenda For personal use only • Chairman’s address – Gary Smith • Managing director’s address – Graham Turner • Items of business – Item 1: Election of director – Cassandra Kelly – Item 2: Re-election of director – John Eales – Item 3: Adoption of Remuneration Report • Other business
Slide 3: Chairman's address: Result highlights
Chairman’s address: Result highlights For personal use only • Growth Record Extended – New sales and underlying profit milestones established • Balance Sheet Strengthened – Record cash reserves, strong positive net debt position • Ongoing Expansion & Investment – Global network growth, key projects
Slide 4: Result overview
Chairman’s address: Result overview For personal use only • 12.6% TTV growth to $16b = $1.7b year-on-year increase without significant acquisitions • 13% revenue growth to $2.2b • 9.7% underlying PBT growth to $376.5m • 9.8% underlying NPAT growth to $263.6m • Statutory PBT and NPAT impacted by posi
Slide 5: Non-recurring items
Chairman’s address: Non-recurring items For personal use only $’ million JUNE 2014 JUNE 2013 % Statutory Profit Before Tax $323.8m $349.2m (7.3%) Write-downs to goodwill & brand names $61.3m - - ACCC Fine $11.0m - - One-off gain within FCGP business ($19.6m) - - Building revaluation (prior year) - (
Slide 6: Cash & cash flow
Chairman’s address: Cash & cash flow For personal use only • General cash up 10% to circa $476m – almost tripled in six years • Just $44.9m in debt – down almost $120m in six years • $431.2m positive net debt position (FY2013: $387.6m) • $153m returned to shareholders via dividends (58% of underlyin
Slide 7: Timing impacting cash flow
Chairman’s address: Timing impacting cash flow For personal use only • Year on year cash flow movement brought about by two factors: 1. One-off shift to monthly tax payments in Australia (previously quarterly) – means FLT effectively paid tax for two additional months during FY14 2. Timing of normal
Slide 8: Results summary
Chairman’s address: Results summary For personal use only $’ million JUNE 2014 JUNE 2013 % TTV $16.0b $14.3b 12.6% Revenue $2.2b $2.0b 13.0% Income margin 14.0% 13.9% 10bps Net margin (underlying) 2.35% 2.41% (6bps) Underlying Profit Before Tax $376.5m $343.1m 9.7% Non-recurring Items (see slide 6)
Slide 9: Operational highlights
Chairman’s address: Operational highlights For personal use only • All countries profitable for 4th consecutive year • Record EBIT in Australia, UK, USA, NZ, South Africa, Singapore and Greater China and record TTV in all countries in local currency • Overseas businesses contributed $90.2m to group
Slide 10: Results by country
Chairman’s address: Results by country For personal use only CANADA UNITED KINGDOM INDIA GREATER CHINA TTV: $1.1b, up 13% in TTV: $1.5b, up 29% in TTV: $335m, up 6% in TTV: $196m, up 25% AUD (up 8% in lc) AUD (11% in lc) AUD (up 6% in lc) in AUD (up 12% in lc) EBIT: $0.4m EBIT: $39.8m EBIT: $3.5m EB
Slide 11: Travel agent to travel retailer
Chairman’s address: Travel agent to travel retailer For personal use only TRAVEL THE PROVIDERS CUSTOMER
Slide 12: Blended access
Chairman’s address: Blended access For personal use only Our business is always open when and how you want
Slide 13: Social responsibility
Chairman’s address: Social responsibility For personal use only Job creation: About 1200 new jobs created during 2014 Employee earnings: FLT paid about $1b in salaries and wages Health and financial well-being: On average, one health/financial consult conducted on every staff member Gender diversity
Slide 14: Social responsibility
Chairman’s address: Social responsibility For personal use only Noble Selling Purpose: Initiated during 2013/14 and rolled out globally in July 2014 Community assistance: Flight Centre Foundation donated more than $1m in Australia alone Staff contribution: Volunteer leave program introduced - 1300 h
Slide 15: MD's address: FY15 guidance
MD’s address: FY15 guidance For personal use only • Targeting $395m-$405m underlying PBT (excluding significant unforseen items) • Represents 5-8% growth on FY14 record underlying PBT • PBT will have doubled between June 30, 2010 and June 30, 2015 and increased by a multiple of 21 in 20 years as a l
Slide 16: MD's address: 1st quarter results
MD’s address: 1st quarter results For personal use only • Currently tracking in line with same period last year • UK, South Africa and emerging businesses growing strongly • Australia sales up 3-4% compared to record 1Q 2014, but profit down slightly – impact of investments & slower sales growth • G
Slide 17: MD's address: The USA
MD’s address: The USA For personal use only • Improved results during 1Q • Driven by further growth in $200b per year corporate travel sector • US corporate comfortably FLT’s largest business outside Australia and on track to turnover more than $AUD1b this year • Corporate expansion – Orange County,
Slide 18: MD's address: FY15 growth plans
MD’s address: FY15 growth plans For personal use only • 5-7% network growth target (organic expansion) • Complemented by strategic acquisitions • Vertical & horizontal integration of capital-light businesses • Escape Travel franchise model to complement ET’s organic growth • Seven new franchises in
Slide 19: MD's address: FLT's Killer Theme
MD’s address: FLT’s Killer Theme For personal use only Brand and A Sales and Marketing Unique Product: Experts, not Agents: Redefining the Shop: Blended Access: Information is Power: specialisation: Machine: Evolving our brands to Making, combining and Ensuring each brand’s Ensuring corporate, Ensur
Slide 20: MD's address: New design features
MD’s address: New design features For personal use only Departures Board Overflow desks Scribble Map Changes in Flight Centre shop Mobile Consulting Wholesale consultants Discovery Zone Product Zones Live Digital Content Toblerone Desks Open Frontage
Slide 21: MD's address: Corporate brand diversity
MD’s address: Corporate brand diversity For personal use only
Slide 22: For personal use only
For personal use only
Slide 23: For personal use only
For personal use only Cheaper fares - Flight prices becoming more affordable More Choice - Broader selection of offerings Greater Comfort - Service, seats, food & entertainment Less Flying Time - Faster, more direct & more reliable
Slide 24: Item 1: Election of director
Item 1: Election of director For personal use only To consider and, if thought fit, pass the following ordinary resolution: “That Ms Cassandra Kelly, appointed in accordance with Section 46(d) of FLT’s constitution, being eligible, be elected as an FLT non-executive director.” Proxies The number of
Slide 25: Item 2: Re-election of director
Item 2: Re-election of director For personal use only To consider and, if thought fit, pass the following ordinary resolution: “That Mr John Eales, a non-executive director retiring in accordance with Section 47 of FLT’s constitution, being eligible, be re-elected as an FLT non-executive director.”
Slide 26: Item 3: Remuneration report
Item 3: Remuneration report For personal use only To consider and, if thought fit, pass the following ordinary resolution: “That the Remuneration Report … for the financial year ended 30 June 2014 be adopted.” Proxies The number of proxies received for the resolution is: For: 64,316,801 (99.1%)
Slide 27: Questions?
For personal use only QUESTIONS?
Flight Centre Travel Group — Shareholder Meeting (October 2014) on 6ix