Corporate Travel Management Limited · ASX:CTD
Corporate Travel Management — H1 FY2017 Earnings Presentation
30 slides from Corporate Travel Management's earnings presentation, Feb 24, 2017
Slide 1: Half Year Results 2017 - Corporate Travel Management
For personal use only Half Year Results 2017 Corporate Travel Management CTM is an award-winning provider of innovative and cost effective travel management solutions to the corporate market. Its proven business strategy combines personalised service excellence with client facing technology solution
Slide 2: Disclaimer
Disclaimer The information in this presentation does not constitute personal investment advice. The presentation is not intended to be comprehensive or provide all information For personal use only required by investors to make an informed decision on any investment in Corporate Travel Management Li
Slide 3: Group Result Highlights
Group Result Highlights $AUD (m) HY2017 Change on P.C.P • Underlying EBITDA up 45% to $40.4m, despite $2.0m For personal use only negative FX impact to profit. (Statutory EBITDA $40.1m) TTV (unaudited) 1,870.2 9% • Strong organic growth underpins EBITDA Revenue and other income 150.5 26% performance
Slide 4: Growth Profile
For personal use only Growth Profile
Slide 5: Recap: How and why we grow - Innovation the Key
Recap: How and why we grow - Innovation the Key For personal use only OUTCOMES OUTCOMES • 1H17 – record value of new clients won at • High staff engagement • Agile decision making & empowerment record conversion rates. Continuing into 2H17. CLIENTS PEOPLE • Continuous Revenue/FTE gains • Historical
Slide 6: CTM Global Footprint and Performance Overview
CTM Global Footprint and Performance Overview _____________________________________________________ For personal use only EUROPE Market Size USD500b CTM Market Share <1% Revenue $16.8m (-8%) (*+16%) ASIA EBITDA $3.8m (+41%) (*+78%) Market Size USD650b CTM Market Share 1%+ USA Market Size USD350b Rev
Slide 7: Underlying 1HFY17 EBITDA Growth Summary (AUD$m)
Underlying 1HFY17 EBITDA Growth Summary (AUD$m) For personal use only California (6 months) Boston (6 months) EUR 1.1m USA 5.7m ANZ 2.8m ASIA -1.5m • Organic growth the catalyst for H1 performance ($8.1m of $12.4m), representing +29% organic profit growth on 1H16 baseline in constant currency • The
Slide 8: Statutory EPS Growth Since IPO December 2010
Statutory EPS Growth Since IPO December 2010 FY 1 7 P RO FI T G RO WTH BUI LD (CTM HAS HI S TO RI C 2 H P RO FI T S KE W) only 70.0 60.0 M&A $7m use *$97.0m 42.8 50.0 cents per share CTM $40.4m $49.6m 40.0 For personal 27.9 25.1 30.0 1H 2H FY17 18.8 * Revised Forecast 16.3 *14.9 20.0 13.5 17.4 6.6 1
Slide 9: EBITDA Contribution by Region
EBITDA Contribution by Region* * Before global overhead costs 1HFY17 $40.4 FY16 $69.0m For personal use only 8% 8% FY15 $49.1m 21% 5% 28% 30% 35% 37% 47% 18% 36% 27% Asia NA ANZ EUR Asia NA ANZ Europe Asia NA ANZ Europe • Building a diversified global business, with North America now our largest pro
Slide 10: Award Winning
Award Winning For personal use only CTM ASIA CTM Europe CTM North America CTM North America Best Travel Agency – Hong Best Travel Management Loyalty Travel Innovations Travel Agent Allure Travel By CTM Kong’ 2016 (7th win in 9 Company (£50m to £200m Organizations - Overall - Travel Agent North Ameri
Slide 11: P&L by Region
For personal use only P&L by Region
Slide 12: North America
North America Underlying EBITDA up 254% on the p.c.p, organic EBITDA growth 54%. For personal use only $AUD (m) North America • Excellent 1H given currency depreciation and US election effect on economic activity 1H2017 1H2016 % Change • Building a highly competent management team that is executing
Slide 13: ANZ
ANZ Underlying EBITDA up 23% on the p.c.p.: $AUD (m) ANZ For personal use only • Despite 6% decline in average ticket prices, market share gains and underlying transactional growth translated into strong performance 1H17 1H16 % Change • Winning new business because of a highly evolved value proposit
Slide 14: Asia
Asia Underlying EBITDA down 14% on the p.c.p., and including gain on business disposal and constant currency, EBITDA is flat on the p.c.p.. $AUD (m) ASIA For personal use only • Chinese oversupply drove Asian ticket prices down approximately 16%, which 1H2017 1H2016 % Change had a direct negative im
Slide 15: Asia – Underlying TTV effect $AUDm
Asia – Underlying TTV effect $AUDm 1H16 TTV 814.3m For personal use only Less: ticket price deflation (128.6m) FX AUD/HKD deflation (40.4m) Closing of leisure “bricks and mortar” business (48.0m)* Sale of package business (2 months) (19.0m)* Subtotal (236.0m) Normalised TTV baseline 1H16 578.3m Unde
Slide 16: UK/Europe
UK/Europe $AUD (m) Europe For personal use only Underlying EBITDA up 41% despite significant GBP/AUD depreciation, and on a constant currency basis, revenue up 16%, EBITDA up 78% 1H2017 1H2016 % Change • Excellent EBITDA margin improvement is a function of internal automation • Acquired Redfern Trav
Slide 17: Group Financial Performance
Group Financial Performance For personal use only
Slide 18: Comparative Statutory Profit and Loss
Comparative Statutory Profit and Loss $AUD (m) 1H2017 % Change 1H2016 For personal use only TTV (unaudited) 1,870.2 9% 1,722.7 • Record organic growth and new client conversion rates across the Revenue and Other Income 150.5 26% 119.7 Group Operating Expenses (110.4) (89.3) • Increased EBITDA margin
Slide 19: Group Balance Sheet
Group Balance Sheet $AUD (m) DEC 2016 June 2016 For personal use only Cash 96.7 81.2 • Receivables have declined largely due to seasonality of business operations (Christmas is a lower trading period) Receivables and other 148.9 173.0 • Intangibles increase is largely goodwill on Travizon USA Total
Slide 20: Key Financial Commitments – M&A (AUD)
Key Financial Commitments – M&A (AUD) AUD $m 2H17 1H18 2H18 1H19 2H19 1H20 Total For personal use only UK/Europe 13.0m 12.6m 25.6m California 36.0m 36.0m Boston 19.7m 19.7m Redfern 65.6m 8.2m 8.2m 82.0m Andrew Jones Travel 5.6m 5.6m TOTAL 107.2m 40.9m 12.6m 8.2m 168.9m Less: Capital raise (71.1m) (7
Slide 21: Operating Cash Conversion
Operating Cash Conversion For personal use only Cash flows from operating activities $42.4m Add back: tax and interest $11.6m Total operating cash conversion $54.0m 1HFY17 Statutory EBITDA $40.1m Actual operating cash Conversion % 135% Less: BSP and other timing differences ($12.1m) Pro-forma Conver
Slide 22: Cash Flow Summary
Cash Flow Summary $AUD (m) 6mth FY17 6mth FY16 For personal use only • Strong operating cash flow conversion over 100% Statutory EBITDA 40.1 30.4 Non cash items (0.2) • Timing of BSP payments has largest impact on operating cash flow. These timing differences are short term (1-7 days) Change in work
Slide 23: Acquisitions effective February 2017
Acquisitions effective 1 February 2017 For personal use only
Slide 24: The Two Acquisitions - effective February 2017
The Two Acquisitions- effective 1 February 2017 The two acquisitions are expected to contribute $7m of EBITDA for the 5 months to 30 June 2017 and *$16m on an annualised basis. For personal use only Redfern Travel, UK: • Redfern is a significant provider of travel services to both the government and
Slide 25: CTM SMART Technology
For personal use only CTM SMART Technology
Slide 26: CTM SMART Technology Framework
CTM SMART Technology Framework • SMART technology World Class release process: available to clients For personal use only • Release cycle every 2 weeks globally • Developing with and for our clients • Over 50,000 CTM alerts • Focus on speed and usability across all devices • Agnostic approach • Over
Slide 27: New Business Intelligence
New Business Intelligence Rolling out progressively through CY17 For personal use only Accessible Anywhere, Anytime • Reporting data (locally and globally), available from wherever you are in the world, 24/7, from any device Real-time Data Insights • Better understanding of the performance of client
Slide 28: FY17 Guidance
For personal use only FY17 Guidance
Slide 29: FY17 Guidance Update
FY17 Guidance Update Trading and Guidance Update: For personal use only • CTM’s original guidance was underlying EBITDA of $85-92m. Post Redfern and AJT acquisitions effective 1 February 2017, underlying EBITDA guidance was adjusted up $7m to be in the range of $92-$97m, to account for the 5 month a
Slide 30: corporate travel management. travelctm.com
corporate travel management. travelctm.com
Corporate Travel Management — H1 FY2017 Earnings Presentation on 6ix