Slide 1: Flight Centre Limited 2009 Half Year Presentation
For personal use only Flight Centre Limited 2009 Half Year Presentation March 4, 2009
Slide 2: 2009 Half year results
2009 Half year results For personal use only RESULTS IN BRIEF HALF YEAR ACTUAL DEC 2008 DEC 2007 % Variance TTV – Established businesses $4,800 $4,800 - TTV – Actual $5,800 $4,800 20.8% Gross Profit – Established businesses $648.1 $642.9 0.8% Gross Profit^ – Actual $768.4 $642.9 19.5% EBITDA – Estab
Slide 3: Recent growth performance
Recent growth performance For personal use only DEC 2008 DEC 2007 DEC 2006 DEC 2005 (^ex abnormal) TTV $5,800 m $4,800 m $4,100 m $3,700 m Income Margin 13.3% 13.4% 12.6% 12.9% PBT $34.2m $90.9 m $53.0 m $49.8 m NPAT $26.1 m $61.2 m $35.4 m $33.6 m EBITDA $54.2 m $105.2 m $63.0 m $63.0 m EPS 26.2 c
Slide 4: Overview: Established business
Overview: Established business For personal use only $77.7m pretax profit – down 14.5% on record $90.9m result in superior trading conditions during PCP, but 46% up on 2006/07 Excluding USA, all major regions profitable for the half Good corporate travel results coinciding with significant sales for
Slide 5: Overview: USA leisure
Overview: USA leisure For personal use only Losses of $15.7m, including $6.7m in non recurring expenses GOGO profitable and a key element in global wholesale expansion strategy Annualised $USD30m in costs eliminated – reduced staff and admin, 40 underperforming shops closed (Liberty and former FC sh
Slide 6: Overview: Investment portfolio
Overview: Investment portfolio For personal use only At December 31, FLT’s cash and investment portfolio was $657m ($631.9m last year) Currently, about 78% is cash, 19% is fixed income investments and 3% is corporate CDOs, half of which are due to mature late in 2010 CDOs relate to blue-chip US corp
Slide 7: Strategic update
Strategic update For personal use only PEOPLE Recruitment and development programs in place to attract and retain the right people GROW CORE, SPECIALIST & NEW Continued shop growth, expanded specialist travel model, acquired Back Roads BUSINESSES Touring (UK), Intrepid JV & national Cruiseabout expa
Slide 8: Global footprint
Global footprint For personal use only GREATER CHINA CANADA UNITED KINGDOM TTV : $342.8m up 9% TTV : $50.3m up 6% (7% up in local currency) TTV : $585.9m down 5% (10% down in local currency) 173 businesses (5% up in local currency) 27 businesses 208 businesses USA TTV : $1,016m 227 businesses AUSTRA
Slide 9: Broader foundations
Broader foundations For personal use only INTERNATIONAL GROWTH Australia still largest contributor to group results, but overseas operations gaining scale Overseas operations now account for half of FLT’s TTV and businesses Five years ago, about 75% of group TTV was generated in Australia & NZ TRAVE
Slide 10: FLT's wholesale business
FLT’s wholesale business For personal use only OVERVIEW FLT uses a mix of internal and external wholesalers FLT’s brands include Infinity, GOGO (USA and Canada), Explore and the Global Product Powerhouse (GPPH) Wholesale rates are contracted directly (through GPPH) but FLT does not hold inventory By
Slide 11: Cash flow
Cash flow For personal use only Overall reserves up 71% in three years – $657m at Dec 31 2008, $384m at Dec 31 2005 Slight increase between Dec 31 2008 and Dec 31 2007, reflecting sluggish 1H sales and shift to internal wholesaling (largely in Australia and USA) Balances affected by seasonality - ca
Slide 12: Cash growth
Cash growth For personal use only Cash Balances - December $1,200 $1,000 $800 $600 $400 $200 $0 2005 2006 2007 2008 Dec Cash Balances - June $1,200 $1,000 $800 $600 $400 $200 $0 2005 2006 2007 2008 June
Slide 13: Future strategic priorities
Future strategic priorities For personal use only GROWTH Increase market share in core, specialised travel and new businesses CUSTOMER Create ownership at business & individual level of an effective & aligned approach RETENTION to sales, product & marketing GLOBAL BUYING & DISTRIBUTION Increase rang
Slide 14: Outlook
Outlook For personal use only UNCERTAIN Impossible to predict likely full year result ahead of busiest trading months. Slow CONDITIONS Jan and Feb means FLT unlikely to equal record $120m 2007/08 2H result Challenges remain but some recent signs of improvement – good Travel Expo GROWTH sales, leisur
Slide 15: End of Presentation / Questions
End of Presentation For personal use only Questions