Web Travel Group Limited · ASX:WEB

Web Travel — H1 2020 Earnings Presentation

35 slides from Web Travel's earnings presentation, Feb 19, 2020

  1. Slide 1: FY20 Performance Update

    FY20 Performance Update Webjet Limited e

  2. Slide 2: 1H20 TTV and EBITDA highlights

    $ 3 BN $ 3 BN $ 3 BN TTV TTV TTV Up 54% Up 54% Up 54% $ 3 BN $ 3 BN TTV 3 (before AA ) TTV 1) All financials in this presentation are for Underlying Operations (unless otherwise stated) and all comparisons are over pcp. Refer to appendix for full description Up 54% Up 54% 2) 1H19 EBITDA restated for

  3. Slide 3: EBITDA by division 1H18-1H20

    $100M $86.3M $80M $60.3M $57.3M $60M $42.7M $31.7M $40M $13.8M $7.3M $6.6M $6.5M $20M $26.0M $28.8M $28.8M ($7.5M) ($6.5M) ($3.6M) ($20M) (1) (1) 1H18 1H19 1H20 Webjet OTA Online Republic WebBeds Corporate 1) 1H18 and 1H19 EBITDA restated for AASB16 3

  4. Slide 4: 4

    4

  5. Slide 5: WebBeds 1H20 results

    A$ 1H20 1H19(1) Change Bookings ('000s) 2,410 1,579  53% TTV 1,470 million 1,036 million  42% Revenue 127.5 million 85.1 million  50% EBITDA 57.3 million 31.7 million  81% TTV / Revenue Margin 8.7% 8.2%  46bps EBITDA Margin 45.0% 37.2%  775bps • • • • 1) 1H19 EBITDA restated for AASB16 5

  6. Slide 6: WebBeds proforma results

    A$ 1H20 1H19(1) Change Proforma Bookings ('000s) 2,410 2,177  11% Proforma TTV 1,470 million 1,334 million  10% Proforma Revenue 127.5 million 113.2 million  13% Proforma EBITDA 57.3 million 43.1 million  33% TTV / Revenue Margin 8.7% 8.5%  19bps EBITDA Margin 45.0% 38.0%  695bps • • • • 1) 1H

  7. Slide 7: WebBeds APAC results

    A$ 1H20 1H19(1) Change Bookings ('000s) 810 334  142% TTV 343 million 165 million  108% EBITDA 8.2 million (0.1 million)  nm • • • • 1) 1H19 comparative restated for AASB16 and to include 6 weeks ownership of DOTW 2) 2H19 comparative restated for AASB16 7

  8. Slide 8: WebBeds Europe results

    A$ 1H20 1H19(1) Change Bookings ('000s) 843 823  2% TTV 646 million 586 million  10% EBITDA 30.4 million 19.7 million  54% • • • 1) 1H19 comparative restated for AASB16 and to include 6 weeks ownership of DOTW. 8

  9. Slide 9: WebBeds AMEA results

    A$ 1H20 1H19(1) Change Bookings ('000s) 750 422  78% TTV 477 million 286 million  67% EBITDA 18.9 million 12.0 million  57% • • 1) 1H19 comparative restated for AASB16 and to include 6 weeks ownership of DOTW 9

  10. Slide 10: WebBeds Umrah Holidays results

    A$ 1H20 Bookings ('000s) 7 TTV 3 million EBITDA (0.1 million) • • 10

  11. Slide 11: 1) As originally identified in 1H19 results, and then . subsequently restated in the

    • • • • • • • • • • • • • 1) As originally identified in 1H19 results, and then . subsequently restated in the FY19 results 11

  12. Slide 12: WebBeds ratios and FY22 targets

    Ratio 1H20 FY22 Target Revenue / TTV 8.7% 8% Costs / TTV 4.8% 4% EBITDA / TTV 3.9% 4% • • • o o 1) 8% Revenue/TTV and 4% costs/TTV to drive 4% EBITDA/TTV. 12

  13. Slide 13: WebBeds: Building Scale - Financial and Operational Functions

    Webseds Building Scale - Financial and Operational Functions Next phase in reducing costs Aligning Finance and Customer Service functions. $33 million capital and $5 million opex one-off Investment to provide at least 30% ROI over 5 years + From the outset, our strategy has been not to impact custom

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  15. Slide 15: Webjet OTA 1H20 results

    A$ 1H20 1H19(1) Change Bookings ('000s) 795 785  1% TTV 708 million 684 million  3% Revenue 74.8 million 74.1 million  1% EBITDA 28.8 million 28.8 million  0% TTV / Revenue Margin 10.6% 10.8%  27bps EBITDA Margin 38.6% 38.9%  32bps • • • ‒ ‒ ‒ ‒ 1) 1H19 EBITDA restated for AASB16 15

  16. Slide 16: Webjet OTA 1H20 initiatives

    ead webjet.com.au Webjet OTA-1H20 initiatives Ongoing enhancements across flight and ancillary offerings. Product Enhancements Increased Webjet Gift Card sales (physical/digital) by 79% YoY as the distribution network is expanded Physical Gift Cards now present in major retail networks nationally in

  17. Slide 17: 17

    17

  18. Slide 18: Online Republic 1H20 results

    A$ 1H20 1H19(1) Change Bookings ('000s) 253 241  5% TTV 156 million 147 million  7% Revenue 15.6 million 16.2 million  4% EBITDA 6.6 million 7.3 million  9% TTV / Revenue Margin 10.0% 11.0%  105bps EBITDA Margin 42.4% 45.0%  264bps • • • • 1) 1H19 EBITDA restated for AASB16 18

  19. Slide 19: Divisional Highlights - Online Republic

    Webjet Limited Cars and Motorhomes performing well turnaround strategy for Cruise underway. Divisional Highlights - Online Republic MOTORHOMES Strong bookings, TTV and revenue growth driven by continued success in Northern Hemisphere markets which now represent greatest volume of bookings Suppliers

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  21. Slide 21: EBITDA by division

    EBITDA (A$M) 1H20 1H19(1) Change B2B 57.3 million 31.7 million  81% B2C (2) 35.4 million 36.1 million  2% Corporate (6.5 million) (7.5 million)  13% Total EBITDA 86.3 million 60.3 million  43% • ‒ ‒ ‒ 1) 1H19 EBITDA restated for AASB16 2) B2C is Webjet OTA and Online Republic combined 21

  22. Slide 22: 22

    22

  23. Slide 23: 1H20 statutory vs underlying results

    (1) (2) 1H20 vs 1H19 Statutory Result Underlying Operations (includes one-offs) (excludes one-offs) TTV $2,334m  25% $2,334m  25% Revenue $217.8m  24% $217.8m  24% EBITDA $46.4m  14% $86.3m  43% EBITDA Margin 21.3%  955bps 39.6%  523bps Tax $3.1m  61% $8.7m  10% NPAT (before AA) (3) $20.9m

  24. Slide 24: Summary Balance Sheet

    Dec-19 Jun-19 Change Summary Balance Sheet $m $m $m • Cash & equivalents 157.2 211.4 (54.1) • Trade & receivables 299.0 341.2 (42.2) Other current assets 31.7 26.9 4.8 Non-current assets 933.7 942.2 (8.5) • Total Assets 1,421.6 1,521.7 (100.0) Trade & payables 509.0 550.5 (41.5) Other current liabil

  25. Slide 25: Cash Flow Summary and Operating Cash Conversion

    1H20 1H19 (1) 1H20 1H19 (1) Cash Flow Summary Operating Cash Conversion $m $m $m $m Statutory EBITDA 46.4 54.1 Cash flow from Operating Activities 4.9 (18.1) Change in working capital (16.0) (58.2) Add back: tax and interest 25.5 14.1 Income tax paid (16.6) (9.3) Add back: Delay in Supplier Payments

  26. Slide 26: Capital expenditure

    $16.6M $15.4M $14.0M 1H19 B2C B2B 1H20 Sale of Land & 1H20 (underlying) Buildings (reported) • • 1) Underlying capex defined as capex spend before one off proceeds from the sale of land and buildings (L&B) 26

  27. Slide 27: Dividends

    13.50c 12.00c 10.00c 8.00c 8.00c 8.50c 9.00c 6.50c 7.50c FY16 FY17 FY18 FY19 FY20 Interim Final 27

  28. Slide 28: Travel disruption and COVID-19 impact

    • • • 1. See Appendix, slide 35, for example of previous travel disruptions of a similar nature 28

  29. Slide 29: FY20 outlook

    • • • • 1. Following application of AASB16. 2. $157-167 million before application of AASB16 3. January 2020 TTV for WebBeds was up 21% (27% excluding Thomas Cook), Webjet OTA was up 4% and Online Republic was up 1% (all compared to pcp) 4. FY19 restated for AASB16 29

  30. Slide 30: Appendix

    Webjet Limited

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    ;. eaere FY20 Pe bcdiant adnan. t *

  32. Slide 32: Description of Result Categories

    Webjet Limited Description of Result Categories Statutory Result Underlying Operations * 1H20 includes acquisition and integration * 1H20 excludes acquisition and integration costs ($2.5M), reduction in DOTW earnout costs ($2.5M), reduction in DOTW earnout liability $14.5M, gain on Umrah Holidays pu

  33. Slide 33: Statutory Result and Underlying Operations

    Statutory Result Underlying Operations (2) (1) 1H20 1H19 Change 1H20 1H19 (1) Change $m $m $m % $m $m $m % TTV 2,334 1,867 467 25% 2,334 1,867 467 25% Revenue (3) 217.8 175.3 42.5 24% 217.8 175.3 42.5 24% EBITDA 46.4 54.1 (7.7) (14%) 86.3 60.3 26.0 43% Depreciation (2.2) (2.1) (0.1) (3%) (2.2) (2.1)

  34. Slide 34: Segment TTV, revenue, costs and EBITDA

    1H19 (1)  1H20 Change Underlying Operations (2) $m $m $m % TTV  Webjet 708 684 24 3% •  Online Republic 156 147 10 7% •  AMEA(3) 477 286 191 67% (3) Europe 646 586 61 10% APAC(3) 343 165 179 108%  Umrah Holidays 3 - 3 0% •  Total TTV 2,334 1,867 467 25% •  Bookings •  B2C 1,048 1,026 22 2% 

  35. Slide 35: Impact of past outbreaks on aviation

    Webjet Limited RPKs - Revenue Passengers Kilometers Impact of past outbreaks on aviation 115 110 105 100 95 90 85 80 75 70 65 60 55 =100) Index (crisis month: | Avian Flu (2005) + RPKs to, from and within | South-East Asia Avian Flu (2013) Asia Pacific Airlines RPKs MERS (2015) RPKs to, from and wit

Web Travel Group — H1 2020 Earnings Presentation on 6ix