Flight Centre Travel Group Limited · ASX:FLT
Flight Centre Travel — FY2011 Earnings Presentation
25 slides from Flight Centre Travel's earnings presentation, Aug 23, 2011
Slide 1: Flight Centre Limited 2011 Full Year Results
For personal use only Flight Centre Limited 2011 Full Year Results August 23, 2011 Presentation by Graham Turner – managing director Andrew Flannery – chief financial officer Melanie l i Waters‐Ryan – COO & global l b l product d lleader d 1
Slide 2: 2011 – operational highlights
2011 – operational highlights For personal use only RECORD Best sales and PBT p performance in FLT’s 30 yyear historyy RESULTS Underlying PBT higher than expected and 2% above FLT’s market guidance EBIT p profits in all 10 countries for first time IMPROVING O G GLOBALLY Record profits in Australia,
Slide 3: 2011 – key financial statistics
2011 – key financial statistics For personal use only Reached $12.2billion (up 12%) – averaged more than $1billion‐per‐month for first time TTV High dollar impacted translation of overseas results – about 17% growth if overall results translated at same rates as 2009/10 $245.2million underlying PBT
Slide 4: 2011 – results by country
2011–– results by country 2011 For personal use only SINGAPORE TTV: $40m CANADA EBIT: $0.3m BUSINESSES: 7 GREATER CHINA TTV: $773m UNITED KINGDOM TTV: $104m EBIT: $9.5m BUSINESSES: 196 TTV: $1.07b EBIT: $0.5m EBIT: $15.8m BUSINESSES: 24 BUSINESSES: 226 DUBAI USA TTV:$34m TTV: $1.5b EBIT: $1.3m AUSTR
Slide 5: 2011 – geographic highlights
2011 – geographic highlights For personal use only COUNTRY REVIEW Australia TTV up 12% in FLT’s most mature business Record EBIT result Strong corporate travel performance Healthy demand for international travel – driven by cheap airfares and a strong dollar – offsetting ongoing weakness in domestic
Slide 6: 2011 – geographic highlights
2011 – geographic highlights For personal use only COUNTRY REVIEW New Zealand TTV up 2% in AUD (up 6% in local currency) Results affected by Christchurch earthquakes 17 shops located in and around the city – 10% of total NZ business 6 shops severely damaged and unlikely to reopen – all sales staff s
Slide 7: 2011 – geographic highlights
2011 – geographic highlights For personal use only COUNTRY REVIEW India Good performance in first full year under FLT’s control Results exceeded expectations and solid growth prospects 8 leisure shops now open, in addition to strong corporate travel presence Greater China TTV up 18% in AUD (up 29% i
Slide 8: FLT average international yield (Australia)
FLT average international yield (Australia) For personal use only $1,600 OVERVIEW GFC $1,500 Average fares have increased $1,400 modestly since the end of the GFC $1,300 Fares remain well below 2007/08 highs $1,200 No clear trends ‐ fare increases $1,100 on some routes and decreases on others
Slide 9: 2012 – outlook
2012 – 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 other
Slide 10: 2012 – Australian growth opportunities
2012 – Australian growth opportunities For personal use only SHOPS – 30 JUNE 2011 = 111 = 29 = 55 = 23 = 30 = 75 = 18 = 6 = 15 10
Slide 11: 2012 – USA outlook
2012 – USA outlook For personal use only OVERALL Improvement expected, but current economic uncertainty makes forward projections difficult RESULT Good growth prospects – FLT now estimated to be in top 10 US corporate travel managers CORPORATE Corporate Traveller introduced to operate alongside FCm
Slide 12: Liberty – key achievements to date
Liberty – key achievements to date For personal use only Annualised $US30million in costs removed LOWER COST BASE √ Achieved through structural streamlining, closure of poorly located shops, IT synergies Key FLT systems now in place SYSTEMS OVERHAUL √ Includes l d Calypso l ( h l l platform), (whole
Slide 13: 2012 – new initiatives
2012 – new initiatives For personal use only RECENT AND UPCOMING ENHANCEMENTS Flight Centre Global Product (FCGP) Universal Desktop travelthere.com myTime and other unique products 13
Slide 14: FCGP – direct contracting wholesale
FCGP – direct contracting wholesale For personal use only KEY FEATURES Now supports 12 wholesale businesses in six countries Consolidates C lid t bbackend k d wholesale h l l ffunctions ti including: Product procurement (fully inclusive tours, car hire and the FCm Corporate Hotel Program) Su
Slide 15: Universal Desktop – in-store benefits
Universal Desktop – in‐store benefits For personal use only KEY FEATURES Secured as part of GDS deal Enhances FLT’s ability to distribute airfares globally Provides travel consultants with a faster and simpler research and booking tool To be rolled out globally Australian launch underway n
Slide 16: travelthere.com – transactional website
travelthere.com – transactional website For personal use only 16
Slide 17: travelthere.com – transactional website
travelthere.com – transactional website For personal use only KEY FEATURES FLT’s first fully transactional international flight booking website in Australia Dynamic packaging capabilities International flights, plus more than 50,000 hotels, hire cars and activities available Site initially a
Slide 18: 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 19: End of presentation – Questions
End of presentation For personal use only Questions 19
Slide 20: Appendices
Appendices For personal use only 1. 2011 results in full 2. Five‐year results summary 3. Additional segment information – year ended 30 June 2011 4. Additional segment information – year ended 30 June 2010 5 Reconciliation of management and statutory EBIT 5. 20
Slide 21: Appendix 1: 2011 results
Appendix 1: 2011 results For personal use only RESULTS IN BRIEF FULL YEAR RESULTS JUNE 2011 JUNE 2010 V i Variance % $’ million TTV $12,200m $10,894m 12.0% G Gross P Profit fit $1 678 $1,678m $1 553 $1,553m 8 1% 8.1% Income margin 13.8% 14.3% (0.5)bps Net margin (underlying) 2.0% 1.9% 0.1bps Underly
Slide 22: Appendix 2: Five-year result summary
Appendix 2: Five‐year result summary For personal use only JUNE 2011 JUNE 2010 JUNE 2009 JUNE 2008 JUNE 2007 (restated) (ex abnormal) TTV $12,200m $10,894m $11,242m $10,880m $8,880m Income margin 13.8% 14.3% 13.6% 13.3% 13.0% EBITDA $256.9m $257.3m $86.3m $231.4m $175.0m PBT $213.1m $198.5m $40.4m $
Slide 23: Appendix 3: Additional Segment Information
Appendix 3: Additional Segment Information (Unaudited) Year ended 30 June 2011 (A$m) ( ) For personal use only OTHER GROUP AUSTRALIA UK USA REST OF WORLD SEGMENT1 TTV $12,200 $7,172 $1,074 $1,492 $2,335 $127 Gross Profit(2) $1,678 $925 $146 $188 $293 $126 Statutory EBITDA $257 $234 $22 $(17) $48 $(3
Slide 24: Appendix 4: Additional Segment Information
Appendix 4: Additional Segment Information (Unaudited) Year ended 30 June 2010 (A$m) ( ) For personal use only REST OF OTHER GROUP AUSTRALIA4 UK USA WORLD3 SEGMENT1, 4 TTV $10,894 $6,407 $991 $1,537 $1,867 $92 Gross Profit(2) $1,563 $863 $142 $208 $263 $87 Statutory EBITDA $257 $217 $24 $4 $33 $(21)
Slide 25: Appendix 5: Reconciliation of management and statutory EBIT
Appendix 5: Reconciliation of management and statutory EBIT Year ended 30 June 2011 (A$m) ( ) For personal use only GROUP ADJUSTED EBIT $224.7 Interest expense $(7.4) Interest revenue $ $28.2 Deferred consideration $0.1 Net foreign exchange (losses) / gains on intercompany loan $(3.8) Profit of reva
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