Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — Merger or Acquisition (July 2018)
16 slides from Corporate Travel Management's merger presentation, Jul 11, 2018
Slide 1: Lotus Travel Group Limited Acquisition
For personal use only CORPORATE TRAVEL MANAGEMENT Lotus Travel Group Limited Acquisition.
Slide 2: Disclaimer
Disclaimer For personal use only The information in this presentation does not constitute personal investment advice. The presentation is not intended to be comprehensive or provide all information required by investors to make an informed decision on any investment in Corporate Travel Management Li
Slide 3: Strategic Acquisition
For personal use only Strategic Acquisition
Slide 4: The Acquisition
The Acquisition Corporate Travel Management Limited (“CTM” or “the Company”, ASX Code CTD) is For personal use only pleased to announce a strategic acquisition that will be effective 2nd October 2018. CTM will be acquiring 75.1% of Lotus Travel Group Limited (Lotus) with our CTM Asian partners Ever
Slide 5: The Lotus Travel Group Limited Business
The Lotus Travel Group Limited Business • For personal use only Established in 1957, Lotus Travel Group Limited is one of the pioneer travel services providers in Hong Kong. With over 1,000 local and international clients, Lotus is one of Hong Kong’s top Travel Management Companies (TMC), specializi
Slide 6: Strategic Rationale
For personal use only Strategic Rationale
Slide 7: Strategic Rationale – Lotus Travel Group Limited
Strategic Rationale – Lotus Travel Group Limited CTM considers Lotus to be a major strategic acquisition because it delivers the following key benefits to the CTM For personal use only group: • Scale - CTM becomes the largest player in Hong Kong serving the Greater China market. By combining, we bec
Slide 8: CTM – M&A Discipline
CTM – M&A Discipline In keeping with CTM’s strong M&A discipline, the Lotus Travel acquisition fits its strict criteria: For personal use only Lotus Travel Strong Market Reputation/ Market Leader High Historical Client and Staff Retention Builds Scale, Geographic Footprint, Build upon Niche EPS Accr
Slide 9: CTM FY18 Global footprint (including annualised CY17 Lotus TTV)
CTM FY18 Global footprint (including annualised CY17 Lotus TTV) For personal use only EUROPE Market Size USD500b CTM Market Share <1% CTM TTV $1.0bn ASIA Market Size USD650b North America CTM Market Share 2%+ Market Size USD350b CTM TTV $2.5bn* CTM Market Share <1% CTM TTV $1.3bn ANZ Market Size AUD
Slide 10: Acquisition Financial Information
For personal use only Acquisition Financial Information
Slide 11: Acquisition Financial Information
Acquisition Financial Information • Base consideration of HKD300m (AUD50m) which is approximately 10x For personal use only CY17 EBITDA. Like CTM Asia, Lotus profits were negatively impacted by declining ticket prices in CY17. • Maximum earn-out of HKD65m based on CY18 NPAT of HKD30-40m. • The acqui
Slide 12: Updated Guidance
For personal use only Updated Guidance.
Slide 13: FY18 Guidance Update/Impact on FY19 Guidance
FY18 Guidance Update/Impact on FY19 Guidance For personal use only • CTM is expected to deliver full year results at or slightly above top end of guidance. Original FY18 underlying EBITDA of approximately AUD125m (27.0% growth on the p.c.p.). • Lotus will contribute 9 months EBITDA in FY19 or AUD4.0
Slide 14: Key Risks
For personal use only Key Risks
Slide 15: CTM Corporate and Transaction Risk Profile
CTM Corporate and Transaction Risk Profile Acquisition of Lotus Travel Group Limited • Subject to the satisfaction of limited conditions precedent, including obtaining certain banking and travel authority consents to the change of control. Partial reliance on information provided by vendors. For per
Slide 16: Thank you
For personal use only Thank you.
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