Helloworld Travel Ltd · ASX:HLO
Helloworld Travel — Helloworld — H1 2016 Earnings Presentation
20 slides from Helloworld Travel's earnings presentation, February 2016
Slide 1: Helloworld Limited 1H16 Investor Presentation
Halloworld Limited CEO Andrew Burnes CFO Jenny Macdonald
Slide 2: Agenda
Agenda For personal use only 1. Overview 2. Our Business (pre- and post-merger) 3. Financial Performance 4. Growth and Outlook 1H16 Investor Presentation • PAGE 2 Helloworld Limited
Slide 3: 1H16 Results Overview
1H16 Results Overview AOT 1H16 (Unaudited) For personal use only • TTV up mainly due to Travel TTV 5% on TTV 8% on Management and Retail 1H15 segments $2,431m $204.2m 1H15 • Revenue stable but impacted by competitive pressures Revenue 0% on • Continued focus on cost control Revenue 10% on $139.0m 1H
Slide 4: Benefits of merger with AOT Group Ltd
Benefits of merger with AOT Group Ltd For personal use only • Integrated travel group - Broader range of products and services - Increased scale and earnings • Expected to be earnings per share accretive • Transaction costs of $2.1 million at 31 December 2015 - Expect additional $2.1 million transac
Slide 5: Helloworld's breadth of businesses
Helloworld’s breadth of businesses For personal use only Retail Travel Travel Management AFFILIATE Wholesale 1H16 Investor Presentation • PAGE 5 Helloworld Limited
Slide 6: Merger significantly strengthens HLO
Merger significantly strengthens HLO For personal use only Inbound AFFILIATE Retail Travel Travel Management Wholesale AOT Hotels 1H16 Investor Presentation • PAGE 6 Helloworld Limited
Slide 7: Helloworld's strengths
Helloworld’s strengths For personal use only Scale & Inbound Enhanced Larger, Additional Material Diversity Travel Govt & Corp More Expertise Financial Services & Competitive & Stability Benefits Wholesale Offerings • Pro forma historical • AOT Group a leading • AOT’s strong history • Larger network
Slide 8: A unique and diverse value proposition for ALL agents
A unique and diverse value proposition for ALL agents For personal use only BRANDED INDEPENDENT AUSTRALIA & NEW ZEALAND 1 AUSTRALIA & NEW ZEALAND BRANDED MODEL CORPORATE MODEL ASSOCIATE MODEL INDEPENDENT MODEL AFFILIATE JUNE 15: 285 JUNE 15: 1410 DEC 15: 290 DEC 15: 1341 1 As at February 2016, there
Slide 9: Future-proofing through technology
Future-proofing through technology For personal use only For our agents: • Competitive Online presence • helloworld.com.au app • Productivity and margin optimisation For our business: • Omni-channel delivering for us and agents • Tracked and optimised support for preferred suppliers 1H16 Investor Pr
Slide 10: Financial Performance
For personal use only Financial Performance 1H16 Investor Presentation • PAGE 10 Helloworld Limited
Slide 11: Half Year Result
Half Year Result For personal use only 1H16 1H15 Change $m $m % Total Transaction Value (TTV) (1) 2,431.0 2,307.5 5% Revenue 139.0 139.5 (0%) Gross Margin 5.7% 6.0% EBITDA (2) 8.1 8.4 (3%) Loss before tax (1.0) (0.2) (409%) Loss after tax attributable to members (1.7) (0.7) (125%) Basic loss per sha
Slide 12: Retail Segment
Retail Segment For personal use only 1H16 1H15 Change $m $m % Total Transaction Value (TTV) 1,751.5 1,724.2 2% Revenue 78.9 80.4 (2%) Gross Margin 4.5% 4.7% Operating expenses (60.7) (64.1) 5% EBITDA 18.2 16.3 12% • Competitive pressures required increased commission to agents which impacted revenue
Slide 13: Travel Management Segment
Travel Management Segment For personal use only 1H16 1H15 Change $m $m % Total Transaction Value (TTV) 369.9 282.4 31% Revenue 23.4 18.9 24% Gross Margin 6.3% 6.7% Operating expenses (19.9) (17.1) (16%) EBITDA 3.5 1.8 94% • Substantial improvement in EBITDA • Significant growth driven by WoAG Contra
Slide 14: Wholesale Segment
Wholesale Segment For personal use only 1H16 1H15 Change $m $m % Total Transaction Value (TTV) 309.6 300.9 3% Revenue 35.1 38.3 (8%) Gross Margin 11.3% 12.7% Operating expenses (35.1) (34.8) (1%) EBITDA 0.0 3.5 (100%) • Decreased revenue reflects competitive market pressures • Consolidation of marke
Slide 15: Corporate Segment
Corporate Segment For personal use only 1H16 1H15 Change $m $m % Total Transaction Value (TTV) 0.0 0.0 0% Revenue 1.6 1.8 (11%) Operating expenses (15.1) (15.0) (1%) EBITDA (13.5) (13.2) (2%) • Relates to corporate costs that are not allocated to the operating segments 1H16 Investor Presentation • P
Slide 16: Balance Sheet
Balance Sheet For personal use only 1H16 FY15 $m $m Cash 140.1 176.1 Other current assets 96.6 106.9 Intangible assets 165.4 161.4 Other non-current assets 25.0 26.7 Current liabilities (222.0) (266.0) Non-current liabilities (30.0) (27.6) Equity 175.1 177.5 1H16 Investor Presentation • PAGE 16 Hell
Slide 17: Liquidity and funding
Liquidity and funding For personal use only 1H16 FY15 $m $m Total Facility available 95.5 96.0 Drawn Debt (25.4) (24.9) Multi-option Facilities (incl. bank guarantees) (11.8) (10.3) Headroom 58.3 60.8 Company cash 20.7 27.4 Client cash 119.4 148.7 Total cash 140.1 176.1 • Operating cash outflow for
Slide 18: Outlook
Outlook For personal use only • Inbound tourism to grow • Focus on Franchise, Associate and Affiliate Agents • Merger expected to deliver synergies of $7.6 million per annum with approximately $2.0 million in one-off associated costs • Merger benefits to drive advantage for Helloworld, agents and sh
Slide 19: Outlook: Business Focus
Outlook: Business Focus For personal use only 1 2 3 4 5 6 Merger Agent Travel Cruise Brand Inbound with AOT Focus Management Awareness • Focus on • More clearly • Leveraging • Forward bookings • NZ rollout • Strong growth improving articulating WoAG strong • Ongoing build • Asia margins value • High
Slide 20: For personal use only
For personal use only The information included in this presentation may not be reproduced or distributed to any third party or published in whole or part for any purpose. The information contained in these materials or discussed at the presentation is not intended to be an offer for subscription, in