Slide 1: Flight Centre Limited Analyst Briefing
For personal use only Flight Centre Limited Analyst Briefing August 30, 2011 Presentation by Andrew Flannery – chief financial officer Rob Flint – global corporate and Asia EGM Melanie l i Waters‐Ryan – COO and d global l b l product d lleader d Graham Turner – managing director 1
Slide 2: 2011: Highlights
2011: Highlights For personal use only RECORD RESULTS AND CONTINUED DIVERSITY Best sales and PBT performance in FLT’s 30 years Led by strong corporate travel performance Sales growing and good margins – despite the threat of the net Overseas businesses gaining scale and making solid contribu
Slide 3: 2011: Evolution and diversification
2011: Evolution and diversification For personal use only CONTINUED 2011 result highlights FLT’s evolution beyond its traditional retail roots EVOLUTION Corporate‐led result, after strong leisure travel performance in 2009/10 INCREASED 30% of TTV is now corporate DIVERSITY Vertically integrated whol
Slide 4: 2011: Growing on and offline
2011: Growing on and offline For personal use only COUNTERING THE THREAT OF THE NET TTV up 12%, record profit, margin near record levels FLT countering arguments that online will erode margins, marketshare and profit PBT has increased from $76m‐$245m (Underlying PBT for 2010/11 :$245.2m and Ac
Slide 5: 2011: Gaining scale overseas
2011: Gaining scale overseas For personal use only Half of FLT’s shops are located overseas GROWING GLOBALLY UK and USA now generate more than $AUD1b in TTV annually Canada closing in on the $1b barrier PROFIT All 10 countries profitable (EBIT) for first time RECORD Good results from emerging countr
Slide 6: 2011: Balance sheet strength
2011: Balance sheet strength For personal use only $1b global cash and investment portfolio POSITIVE $377m in company cash, $168m in debt NET DEBT $209m positive net debt position POSITION OF Balance sheet strength means FLT is well placed to withstand external shocks STRENGTH Able to be aggressive
Slide 7: Corporate: Key points
Corporate: Key points For personal use only FLT’s corporate businesses now generate up to 30% of TTV globally GROWING STRONGLY Business is highly productive – high conversion rates ‐ and low cost (rent and fit‐out) More than 400 company‐owned offices in 10 countries – strong brand stable MAJOR PLAYE
Slide 8: Corporate: FCm Travel Solutions
Corporate: FCm Travel Solutions For personal use only Larger companies ‐ national, national regional or global TARGET Multi‐million dollar travel spends MARKET Procurement driven – cost minimisation, expense management, reporting etc TAGLINE : “Better Travel Ideas. Greater Savings” The largest TMC H
Slide 9: FCm global network
2 < © @ D S © ‘= O Q — @ a. = © UL HODEISLAND, ToRONED 4 ‘B0STON cHICAGO WASHINGTON DCIARLINGTON PHOENIX Making it possible all over the world RIO.DE JANEIRO SAD PAULO ‘SUENOS AIRES AMERICAS (USA, CANADA, CENTRAL AND SOUTH AMERICA) Total 75+ countries Network - $4.67b EMEA - $2.51b APAC - $1.25b AME
Slide 10: Corporate: Corporate Traveller
Corporate: Corporate Traveller For personal use only Typically SME ‐ spending $50K to $2M TARGET MARKET Less requirement on sophisticated reporting, more focus on relationship, value add, high touch service TAGLINE : “Bring an Expert on Board” Small, locally based teams – no call centres No contract
Slide 11: Corporate: Campus Travel
Corporate: Campus Travel For personal use only Academia (professors, (professors lecturers etc) in the tertiary education and research sectors TARGET Will serve as a sole provider or as part of a panel MARKET Can range from relatively small spend to more than $20M TAGLINE : “The Smart Choice” Only A
Slide 12: Corporate: Stage & Screen
Corporate: Stage & Screen For personal use only TARGET Businesses operating in entertainment and sports related industries MARKET Wide range in spend TAGLINE : “Strength behind the Scenes” Entertainment rates CLIENT Largest Australian‐owned Australian owned travel advisory to partner the entertainme
Slide 13: Corporate: Ci Events
Corporate: Ci Events For personal use only TARGET Conferences and events, production and loyalty programs MARKET Wide range in spend TAGLINE : “Add magic” End‐to‐end event management solutions for corporate clients CLIENT Logistics, production, content, outcome‐designed B2B loyalty programs OFFER FO
Slide 14: Corporate: Future opportunities
Corporate: Future opportunities For personal use only Performing strongly in USA and fast‐tracking growth USA GROWTH Corporate Traveller launched July 1 to target SME market Opportunities to roll existing niche brands into other FLT markets EXPORTING BRANDS Ci Events, Campus Travel, Stage &Screen Op
Slide 15: Asia & Middle East: Gaining scale
Asia & Middle East: Gaining scale For personal use only FLT’ss businesses mainly target corporate travel market FLT market, but leisure also developing CORPORATE v LEISURE Region is key hub for corporate clients – company owned local presence is important Corporate business performing well and growi
Slide 16: Product: FLT's unique offering
Product: FLT’s unique offering For personal use only FLT has 2243 businesses in 10 countries MULTI‐ CHANNEL Includes extensive leisure, corporate, wholesale (direct contracting) and online divisions SUPPLIER Want to be the business that suppliers choose to work with RELATIONS FLT works with broad su
Slide 17: For personal use only
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Slide 18: 2012: Top global foci
2012: Top 7 global foci For personal use only NUMBER 1 RETAIL EFFICIENCY and PRODUCTIVITY Big Easy – improving the customer and consultant experience One Best Way – Greater global consistency and standardisation Consultant Knowledge & Training KEY PROJECTS Manufacturing Product – unique air and land
Slide 19: For personal use only
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Slide 20: 2012: Top global foci
2012: Top 7 global foci For personal use only NUMBER 2 AREA LEADER ROLE AND ONE BEST WAY AREA Retail business model – the next evolution Redefine the Nation, Area & Team Leader roles KEY “Area” as a key business unit PROJECTS OBW Manual Mark 2 Area Leader training – outset & ongoing 20
Slide 21: For personal use only
For personal use only 21
Slide 22: 2012: Top global foci
2012: Top 7 global foci For personal use only NUMBER 3 GLOBAL CORPORATE GROWTH IT – Platforms for Productivity, Traveller Tracking & Security, mobility solutions Product – air and land margins Account Management KEY PROJECTS Marketing – “delivering the message” P t Partner N t Network k – “keep “k i
Slide 23: 2012: Top global foci
2012: Top 7 global foci For personal use only NUMBER 4 ENQUIRY MANAGEMENT Enquiry management tools Local Store Marketing system & customer databases ( portfolio) Specialisation – right enquiry to right business/person KEY GAG/MSG system deployed globally PROJECTS Global Expo deployment Customer Insi
Slide 24: 2012: Top global foci
2012: Top 7 global foci For personal use only NUMBER 5 CUSTOMER CARE IMPROVMENTS Customer Portfolio / ownership system Customer Excellence Program After Hours System – all brands KEY PROJECTS Customer Assist structure & operations Customer complaint revolution End‐to‐end sales process before, during
Slide 25: 2012: Top global foci
2012: Top 7 global foci For personal use only NUMBER 6 SUPPLIER RELATIONS Global Deals Manufacturing unique air and land product Prepurchasing / commit deals KEY LCCs – distribution and margin PROJECTS Flightsplus.com l h l – global l b l air and d ticketing k Corporate air and LAND Vertical integra
Slide 26: 2012: Top global foci
2012: Top 7 global foci For personal use only NUMBER 7 EMERGING BUSINESSES Global and National Brand Management system improvement System for Success replicable for new businesses KEY Recruitment system for emerging businesses PROJECTS Training system for emerging businesses Enquiry generation for n
Slide 27: Cruiseabout
For personal use only Cruiseabout 27
Slide 28: Recent developments
Recent developments… For personal use only New consultant desktop currently being rolled out in Australia UNIVERSAL DESKTOP Secured as part of GDS deal and will initially operate alongside legacy systems Faster and simpler – will enhance FLT’s ability to distribute airfares FLT is manufacturing and
Slide 29: myTime – an unique value-add
myTime – an unique value‐add For personal use only KEY FEATURES Developed in USA and launched in Feb 2011 Rewards travellers when theyy book holidays y from FLT Bonuses currently available at selected properties in Mexico, the Caribbean, the Dominican Republic and Aruba To be expanded to Sou
Slide 30: travelthere.com – transactional website
travelthere.com – transactional website For personal use only 30
Slide 31: travelthere.com – transactional website
travelthere.com – transactional website For personal use only 31
Slide 32: travelthere.com – transactional website
travelthere.com – transactional website For personal use only 32
Slide 33: 2012: Global outlook
2012: Global outlook For personal use only PBT of $265million‐$275million, excluding major abnormal items that may arise PROFIT TARGET Mid point in range represents 10% growth on underlying 2010/11 result Ongoing volatility in USA and UK, monitoring Australian conditions in light of slowdown seen by
Slide 34: 2012: Geographic outlook
2012: Geographic outlook For personal use only Leisure and corporate businesses generally performing well Australian domestic tourism yet to recover AUSTRALIA Good growth opportunities, particularly in corporate Niche travel brands growing rapidly and reasonably successfully Bike business turning ov
Slide 35: 2012: Geographic outlook
2012: Geographic outlook For personal use only Challenging economic conditions but good track record of generating profits Strong growth in sales staff (about 20%) during 2010/11 should deliver future returns UK Staff growth will return to normal levels during 2011/12 (10%) Successful opening of meg
Slide 36: UK: Round the world
UK: Round the world For personal use only 36
Slide 37: Frequently asked questions
Frequently asked questions For personal use only Strong dollar is positive for international travel but generally a secondary consideration AUSSIE Most travellers are primarily concerned with airfare prices DOLLAR Some of FLT’s strongest US ticketing months were in 2008/09 when dollar was 65c‐70c De
Slide 38: End of presentation – Questions
End of presentation For personal use only Questions 38