Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — FY2013 Earnings Presentation
31 slides from Flight Centre Travel's earnings presentation, Sep 2, 2013
Slide 1: FLT 2013 Full Year Result Analyst Briefing
For personal use only FLT 2013 Full Year Result Analyst Briefing 2 September, 2013 1
Slide 2: Presentation outline
Presentation outline For personal use only Introduction Haydn y Longg (Investor relations) FY13 In Review Andrew Flannery (CFO) Travel Agent to Travel Retailer Melanie Waters‐Ryan (COO) Expanding Corporate Presence Graham Turner (CEO) Flight Centre USA Dean Smith (EGM) Flight Centre UK C
Slide 3: FY13 In Review: Record sales and profit
FY13 In Review: Record sales and profit For personal use only Record sales: TTV up 7.7% to $14.3b, growth in leisure and corporate sectors and in all countries (in local currency) New profit milestones: Underlying PBT up 18.1% to $343.1m (actual PBT $349.2m) Underlying NPAT up 20% to $240m (actu
Slide 4: FY13 In Review: Improved shareholder returns
FY13 In Review: Improved p shareholder returns For personal use only 250c 150c EPS 246c DPS 125c 137c 200c 200c 100c 112c 150c 140c 140 140c 75c 84 84c 100c 70c 50c 50c 25c 38c 9c 0c 0c 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 50 Share Price Record EPS of $2.46 (up 23%) 40 Record DPS of
Slide 5: FY13 In Review: Stronger foundations
FY13 In Review: Stronger foundations For personal use only New businesses: 5% network growth. 2500th shop opened in July 13 Corporate sales force expansion: Strong growth in BDMs (up 27%) Gaining scale overseas: Overseas businesses contributed almost $75m to group EBIT (up more than 20%) and n
Slide 6: Killer theme: Travel agent to travel retailer
Killer theme: Travel agent to travel retailer For personal use only Flight Centre Limited is transitioning from a travel agent to a world class retailer of travel products to leisure and corporate customers Being a world class retailer means we are the brand/business people identify with and go to.
Slide 7: 1) Brand and specialisation
1) Brand and specialisation For personal use only Aim Evolving our brands to truly specialise in specific areas of travel and have clear customer value propositions (CVPs) Brands B d must beb able bl to answer three h questions i that h clearly l l illustrate ill why h they are the customer’s best a
Slide 8: 2) Unique product
2) Unique product For personal use only Aim Making, combining and sourcing exclusive FLT products and services, rather than simply selling suppliers’ products “O product “Our d – not just j someone else’s” l ’” Major initiatives/progress update Red Label Fares – exclusive Flight Centre airfares la
Slide 9: Unique product: Red Label Fares
Unique product: Red Label Fares For personal use only 9
Slide 10: Unique product: Black Market Flights
Unique product: Black Market Flights For personal use only 10
Slide 11: Unique product: Interest-free packages
Unique product: Interest‐free packages For personal use only 11
Slide 12: 3) Experts, not agents
3) Experts, not agents For personal use only Aim Ensuring each brand’s people are experts in understanding the brand’s speciality and that they in turn are backed by “travel gurus”, who are readily available if additional expertise p is required q Major initiatives/progress update Brand‐based B d
Slide 13: 4) Redefining the shop
4) Redefining the shop For personal use only Aim Ensuring corporate, wholesale and retail spaces reflect that FLT’s people are retailers first and foremost, not office workers Major initiatives/progress update Hyperstore fit‐out – product zones etc Digital content on/offline Corporate travel h
Slide 14: Redefining the shop: NYC hyperstore
Redefining the shop: NYC hyperstore For personal use only 14
Slide 15: Redefining the shop: Brisbane hyperstore
Redefining the shop: Brisbane hyperstore For personal use only 15
Slide 16: 5) Blended access
5) Blended access For personal use only Aim Ensuring FLT’s brands are always available to customers. They can touch, browse and buy FLT’s products when and how they want – online, offline, shop, p, email,, chat,, p phone or SMS Major initiatives/progress update Model M d lddeveloped l d and d refi
Slide 17: Blended access – milestones
Blended access – milestones For personal use only KEY STATUS ELEMENTS MILESTONES PHASE 1 Pre and post booking processes blended Customers able to enquire, pay and view itineraries online More products and services available online PHASE 2 Published international fares, global hotels On
Slide 18: 6) Information as power
6) Information as power For personal use only Aim Gaining a better understanding of customer habits and proactively using this information, thereby delivering and developing better products and increasingg FLT’s relevance to customers Major initiatives/progress update In‐house I h d data team Pr
Slide 19: 7) A sales and marketing machine
7) A sales and marketing machine For personal use only Aim Ensuring each brand has the best and most BDMs, an advertising plan and deployment that delivers on the opportunity to increase market share Major initiatives/progress update Re‐marketing growth Direct response and advertising Digital
Slide 20: Expanding corporate presence: History
Expanding corporate presence: History For personal use only 20‐year history in Australia – Corporate Traveller launched in 1993 (Melbourne) Now almost 500 offices in 11 countries Australia’s largest corporate travel manager and a top ten player in several overseas countries (despite relatively
Slide 21: Expanding corporate presence: FCm
Expanding corporate presence: FCm For personal use only Established by FLT in 2004 as the first global TMC headquartered in Australia FCm network extends to 81 countries – 11 equity and 70 licensees Judged world’s Best TMC at the World Travel Awards for the second successive year Targeting n
Slide 22: Expanding corporate presence: Client tools
Expanding corporate presence: Client tools For personal use only Single sign‐on platform that streamlines management of client travel information (available 24/7) FCm Portal Integrated resource incorporating online booking tools, travel policies, profiles etc Instant access to itineraries, ability t
Slide 23: Expanding corporate presence: FCm & CT
Expanding corporate presence: FCm & CT For personal use only 23
Slide 24: Flight Centre USA: 2012/13 highlights
Flight Centre USA: 2012/13 highlights For personal use only Now FLT FLT’ss second largest country by sales, behind Australia 283 shops and businesses at June 30, 2013 and circa 1800 people EBIT up 11% during FY13 to record $AUD10.9m – third consecutive profit Corporate the major driver (40%
Slide 25: Flight Centre USA: Growth initiatives
Flight Centre USA: Growth initiatives For personal use only Targeting $12m $12m‐$14m $14m EBIT during FY14 Losses likely during seasonally weaker 1H, followed by 2H profits Set for largest year of network growth since Liberty‐GOGO acquisition (2009) New travel centers (hyperstores) featuring
Slide 26: Flight Centre USA: Corporate travel take-off
Flight Centre USA: Corporate travel take‐off For personal use only USA corporate business growing rapidly – more than $650m in turnover during FY13 (more than tripled since FY09) and set to benefit from BDM growth Now a top ten player in market that is estimated to exceed $200b per year (Source:
Slide 27: Flight Centre UK: 2012/13 highlights
Flight Centre UK: 2012/13 highlights For personal use only $AUD32million EBIT – exceeded prior record (2011/12) by 32% Gaining share in market that has contracted since 2009 recession 235 shops and businesses at June 30 Specialisation and hyperstore strategies working well in leisure sector
Slide 28: Flight Centre UK: Growth initiatives
Flight Centre UK: Growth initiatives For personal use only Physical growth – growing property, teams, consultants, BDMs and customers. Targeting 11% sales network expansion during FY14, including new hyperstores in Victoria (London), Bristol and Leeds Productivity growth – growing TTV and income
Slide 29: 2013/14 Outlook: Market guidance
2013/14 Outlook: Market guidance For personal use only Initially targeting $370m $370m‐$385m $385m PBT, PBT assuming stable trading conditions and excluding any significant unforseen items Also excludes possible goodwill impairment (USA and/or India) Target represents 8‐12% growth on underlyin
Slide 30: 2013/14 Outlook: Flight Centre brand
2013/14 Outlook: Flight Centre brand For personal use only Ongoing g g opportunities pp to ggrow flagship g p leisure brand in Australia Improving return per square metre of retail space – upstaffing existing stores (more consultants than desks), new “direct teams” in existing shops More “expe
Slide 31: End of presentation: Questions?
End of presentation For personal use only Questions? 31
Flight Centre Travel Group — FY2013 Earnings Presentation on 6ix