Helloworld Travel Ltd · ASX:HLO
Helloworld Travel — FY2010 Earnings Presentation
16 slides from Helloworld Travel's earnings presentation, Aug 10, 2010
Slide 1: Full Year Results for the year ended 30 June 2010
For personal use only Full Year Results for the year ended 30 June 2010 10 August 2010 1
Slide 2: Highlights
Highlights For personal use only • PBT $19 million (before $4.5 million of costs associated with the proposed merger) reflecting Financial improving trading conditions and cost control • TTV $2,199 million • Cash $114 million • H2 significantly better than H1 (excluding merger costs) • NTIA Best Tra
Slide 3: Quality Brands
Quality Brands For personal use only Wholesale Retail Corporate Online 3
Slide 4: Financial Summary
Financial Summary Segment Analysis Business Corporate Consolidated For personal use only Retail Wholesale Travel /Goodwill JTG FY10 $ millions TTV 1,053.9 416.3 728.5 - 2,198.7 Revenue 31.7 68.6 34.8 - 135.1 EBITDA 17.2 12.9 (3.6) (11.0) 15.5 Profit before related income tax expense and net finance
Slide 5: Financial Summary (continued): Analysis by Reporting Period
Financial Summary (continued) Analysis by Reporting Period For personal use only TTV $m PBT $m 1600.0 32.0 FY10 compared to FY09 • TTV down 7.5% on prior year while net 1400.0 28.0 revenue was down 6.9% 1200.0 24.0 • PBT down 20% (excluding merger costs) 1000.0 20.0 • Costs have been reduced 6.2% (e
Slide 6: Financial Summary (continued): Balance Sheet Summary
Financial Summary (continued) Balance Sheet Summary For personal use only 30 June 30 June Increase/ 2010 2009 (Decrease) $m $m $m Net working capital 46.8 42.1 4.7 Property, plant & equipment 1.1 1.5 (0.4) Intangible assets 168.2 173.5 (5.3) Non-current liabilities,excluding tax (0.8) (2.0) 1.2 Net
Slide 7: Key Profit Drivers
Key Profit Drivers For personal use only • Consumer confidence increasing providing a Economy positive lead indicator • Interest rates increasing providing an indicator of economic recovery • Relatively strong AUD leads to more passengers Foreign taking overseas trips Exchange • Volatile exchange ra
Slide 8: Wholesale
Wholesale For personal use only • Forward bookings are stronger than prior year • Passenger volumes remain strong Trading • Improved return on preferred supplier relationships • Viva! Holidays continues strong growth • Trip program continues to drive repeat business Customer and now has more than 6,
Slide 9: Wholesale
Wholesale For personal use only TTV $m PBT $m 800.0 16.0 • TTV has stabilised post GFC 700.0 14.0 • Margin remains under pressure in a PBT 600.0 TTV 12.0 competitive market 500.0 10.0 • Higher FX rates are positive however there 400.0 8.0 has been significant volatility in this area 300.0 6.0 • Cont
Slide 10: Corporate - QBT
Corporate - QBT For personal use only • Whole of Australian Government travel management services tender has occupied much Government of the year Tender • QBT included on panel of appointees for Federal Government travel management • Global partner with Uniglobe in Australia and Global New Zealand A
Slide 11: Corporate - QBT
Corporate - QBT For personal use only TTV $m PBT $m 800.0 16.0 • TTV is down 26.9% on the prior year as 700.0 14.0 large corporations and governments PBT TTV continue to constrain travel, enforce 600.0 12.0 policies directing travel to lower, less 500.0 10.0 flexible airfares as well as the impact o
Slide 12: Retail
Retail For personal use only • Strong 26 store growth in network up to 670 Network • Churn in outlets continues to improve profile and quality of network members National • Launched National Cruise Centre in April 2010 Cruise • Core of 82 Cruise Select specialist agents Centre • Progressive state by
Slide 13: Retail
Retail For personal use only TTV $m PBT $m 800.0 16.0 • Full year TTV has increased 20% on 700.0 PBT 14.0 FY09 from a number of factors including: 600.0 TTV 12.0 • positive retail trading conditions • collective purchasing agreement with 500.0 10.0 Travellers Choice 400.0 8.0 • increasing agent numb
Slide 14: Online
Online For personal use only • Redesigned and relaunched jetset.com.au and Retail travelworld.com.au websites • Sites have agency call to action, agent finder tools and offers flights, hotels and travel insurance Corporate • Full online booking capability • Online travel management and reporting too
Slide 15: Proposed Merger
Proposed Merger For personal use only TTV Staff Franchises Size JTG $2.2b c800 c670 STS $3.3b c1,800 c1,530 • Ability to compete in rapidly changing industry – online aggregators, online suppliers, growth of competitor owned and controlled networks, new Benefits home based competitors • Opportunity
Slide 16: Outlook
Outlook For personal use only • Expect improved revenues Market • Expect some yield recovery • Forward bookings are stronger than pcp • Stringent cost control • Volume stimulation Focus • Sustainability initiatives and • Integrating Stella Outlook • Refer Explanatory Memorandum dated 28 July 2010 16