Slide 1: Investor Presentation for the full year ended 30 June 2020
31 August 2020 The Manager Markets Announcement Office ASX Limited Level 4, 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam, Helloworld Travel Limited Investor Presentation for the full year ended 30 June 2020 Further to the Company’s announcement to the market today on the financial results for the
Slide 2: FY20 Investor Presentation
FY20 Investor Presentation Andrew Burnes CEO David Hall CFO
Slide 3: Disclaimer
Disclaimer The information contained in these materials or discussed at the presentation is not intended to be an offer for subscription, invitation or recommendation with respect to shares or securities in any jurisdiction. No representation or warranty, express or implied, is made as to the fairne
Slide 4: Key non-statutory financial metrics
Key non-statutory financial metrics Key non-statutory financial metrics Total Transaction Value (TTV): represents the price at which travel products and services have been sold across the Group, as agents for various airlines and other service providers, plus revenue from other sources. The Group's
Slide 5: Executive Summary
Executive Summary Ongoing impact of Unprecedented global travel restrictions in place COVID-19 Globally, government imposed travel restrictions have shut down most international and domestic travel in Australia and New Zealand • TTV currently ~10% of p.c.p. levels. • Travel restrictions expected t
Slide 6: FY20 Group Results (Underlying)
FY20 Group Results (Underlying) Underlying results are summarised here. The FY20 FY19 Change Group’s statutory result includes a number of $m $m % one-off charges including non-cash Total Transaction Value (TTV) 5,006.0 6,511.3 (23.1%) impairments. Revenue 282.2 357.6 (21.1%) Record 1H20 performance
Slide 7: The trajectory before COVID-19
The trajectory before COVID-19 Since the completion of the merger between Helloworld and AOT Travel Group in 2016, Helloworld has reported consecutive periods of double digit EBITDA growth from FY2016 to FY2019. From FY2016 to FY2019, Helloworld has successfully completed and integrated several
Slide 8: Reconciliation of Underlying EBITDA
Reconciliation of Underlying EBITDA FY20 FY19 COVID-19 has caused unprecedented impacts to travel and tourism as a result of border closures, $m $m mandatory quarantine periods and restrictions on Underlying EBITDA 44.0 73.5 domestic and international travel. As a Impairment of non-current assets (6
Slide 9: FY20 Group Results
FY20 Group Results The table below shows the results for the six month period ended 31 December (1H) and 30 June (2H). 1H20 1H19 Change 2H20 2H19 Change FY20 FY19 Change $m $m % $m $m % $m $m % Total Transaction Value 3,559.9 3,152.9 12.9% 1,446.1 3,358.4 (56.9%) 5,006.0 6,511.3 (23.1%) (TTV) Revenu
Slide 10: Segment Results Australia
Segment Results Australia 1H20 1H19 Change 2H20 2H19 Change FY20 FY19 Change $m $m % $m $m % $m $m % Total Transaction Value (TTV) 3,020.1 2,724.8 10.8% 1,255.4 2,849.3 (55.9%) 4,275.5 5,574.1 (23.3%) Revenue 162.5 145.4 11.8% 66.8 137.4 (51.4%) 229.3 282.8 (18.9%) Gross margin % 5.4% 5.3% 5.3% 4.8%
Slide 11: Segment Results New Zealand
Segment Results New Zealand 1H20 1H19 Change 2H20 2H19 Change FY20 FY19 Change $m $m % $m $m % $m $m % Total Transaction Value (TTV) 512.8 385.1 33.2% 176.1 466.8 (62.3%) 688.9 851.9 (19.1%) Revenue 32.3 28.3 14.1% 12.8 30.9 (58.6%) 45.1 59.2 (23.8%) Gross margin % 6.3% 7.3% 7.3% 6.6% 6.5% 6.9% Unde
Slide 12: Segment Results Rest of the World
Segment Results Rest of the World 1H20 1H19 Change 2H20 2H19 Change FY20 FY19 Change $m $m % $m $m % $m $m % Total Transaction Value (TTV) 27.0 43.0 (37.2%) 14.6 42.2 (65.5%) 41.6 85.2 (51.2%) Revenue 5.2 8.5 (38.8%) 2.6 7.1 (63.4%) 7.8 15.6 (50.2%) Gross margin % 19.3% 19.8% 17.8% 16.8% 18.8% 18.3%
Slide 13: Pro forma Balance Sheet
Pro forma Balance Sheet Impact of Equity 30 June 2020 A$’millions 30 June 2019 1 30 June 2020 2 Raising 3 Pro forma Assets Cash 204.8 131.9 48.5 180.4 Receivables and accrued revenue 163.8 76.4 - 76.4 Other current assets 0.8 0.5 - 0.5 Total Current Assets 369.4 208.8 48.5 257.3 Other non-current as
Slide 14: Drawn and committed borrowings
Drawn and committed borrowings Drawn The expiration of the Westpac Expiry Total facilities facilities Banking Corporation (Westpac) $m loan facilities have been extended, Facility A May-22 40.0 39.5 with the earliest scheduled expiry Facility B May-22 30.0 17.5 occurring in April 2022. As at 30 Fa
Slide 15: Updated Liquidity Position
Updated Liquidity Position Helloworld’s liquidity position was enhanced as a result of the Equity Raising. There remains sufficient liquidity to provide for operating and capital expenditure through to the end of 2022 assuming ongoing disruption to the international travel markets. Net working c
Slide 16: Banking update
Banking update • The Group’s loan facilities incorporate certain market standard covenants such as interest cover ratio and net leverage ratio. Westpac has agreed to covenant waivers and suspensions of certain financial covenants. • At 30 June 2020, short dated facilities totalling $17.9 million and
Slide 17: Cash Flow (1 of 2)
Cash Flow (1 of 2) 1H 2H FY20 FY19 Decline in FY20 operating cash flow driven by COVID-19 and $m $m resultant unwind of working Operating cash flow (45.4) 4.0 (41.4) 49.2 capital, partially offset by reduction in income taxes paid (FY20: $1.8m; FY19; $17.6m). Payments for intangibles (11.3) (5.3)
Slide 18: Cash Flow (2 of 2)
Cash Flow (2 of 2) FY20 $m PBT (68.9) Material non-cash items Working capital movement largely driven Impairment 67.1 by reduction in client cash as bookings cancelled and refunded D&A 32.7 Fair value adjustments (2.7) Gain on disposal (1.1) Increase in loss allowance 7.7 Restructuring costs 5.9 1
Slide 19: Outlook and Return to Travel
Outlook and Return to Travel Outlook for Corporate Travel HLO’s corporate business has shown signs of recovery generating TTV of 35% of previous years volume and we expect this to increase as State borders open up. This has provided the company with some revenue generation during the COVID-19 lock
Slide 20: Appendix
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Slide 21: Our business
Our business • Retail and corporate agency networks • Corporate travel • SECTION 1: management Travel wholesaling Operational Update and Outlook • Inbound tour operating • Online B2C • Air Ticket consolidation • Tour operating • Freight services 20 Helloworld Travel Limited - Investor Presentation ·
Slide 22: Agency members
Agency members Unrivalled portfolio of leading travel agency networks 2,496 at 30 JUNE 2020 | 2,447 at 30 JUNE 2019 • The Company is assisting our ~2,500 retail travel agents and travel brokers to manage their way through this period until demand returns including suspending all franchise and market
Slide 23: Impairment
Impairment The financial performance of the Group is significantly related to demand for domestic and international travel. COVID-19 has caused unprecedented impacts to travel and tourism as a result of border closures, mandatory quarantine periods and restrictions on domestic and international trav
Slide 24: Company background information
Company background information A$2.25 A$280.6 M Share Price at 124.7M A$132.0 M Cash Market Cap at Shares Issued A$101.0 M Debt 30 June 2020 30 June 2020 Board and Management Team Non-Executive Director and Chairman - Garry Hounsell Mr Hounsell was appointed to the Board as Chairman on 4 October 201
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