2026 Annual Report

Please find attached for release to the market, copies of Flight Centre Travel Group Limited's final:

• Appendix 4E for the year ended 30 June 2026; and

• 2026 Annual Report (including the Directors' Report, the Financial Report, the Directors' Declaration and the Audit Report)

• 2026 Sustainability Report (including Directors' Declaration and the Audit Report)

1. TTV is non-IFRS financial information and is not subject to audit procedures, and does not represent revenue in accordance with Australian Accounting Standards. TTV represents the price at which travel products and services have been sold across the Group's various operations, both as agent for various airlines and other service providers and as principal, plus revenue and other income from other sources. TTV has been reduced by refunds. FLT's revenue is, therefore, derived from TTV.

2. EBITDA, Underlying EBITDA, Underlying profit before tax (PBT) and Underlying profit after tax (PAT) are unaudited, non-IFRS measures. Refer to table below for reconciliation of statutory to underlying results.

   DIVIDENDS

   30 JUNE 2026	AMOUNT PER 100% FRANKED SECURITY AMOUNT CENTS CENTS
   Interim dividend3	12.0 12.0
   Final dividend4	30.0 30.0

   30 JUNE 2025
   Interim dividend	11.0	11.0
   Final dividend	29.0	29.0

3. On 25 February 2026, FLT declared an interim dividend out of FY26 profits. The record date for determining entitlement to the dividend was 26 March 2026, payment date was 13 April 2026.

4. On 26 August 2026 FLT declared a final dividend out of FY26 profits. The record date for determining entitlement to the dividend is 18 September 2026 and payment date is 16 October 2026 .

   ON-MARKET BUY-BACKS

   On 16 April 2026 FLT completed its $200,000,000 on-market share buy-back program announced on 28 April 2025.

   On 17 June 2026 FLT announced an additional $200,000,000 on-market share buy-back program. The buy-back is subject to prevailing share price and market conditions and is at FLT's discretion. The buy-back will be conducted for up to 12 months.

   NET TANGIBLE ASSETS

   	JUNE 2026 JUNE 2025 $ $
   Net tangible asset backing per ordinary security5	(2.38)	(0.88)

5. The current year and prior year net tangible asset backing per ordinary security balances include the value of leased assets as recognised under AASB 16 Leases.

On 14 May 2026 FLT sold its shareholding in the Pedal Group joint venture for $61,700,000 (cash proceeds of $41,951,000, pre-completion cash dividend of $19,749,000). A gain on sale of $16,044,000 was recorded as an underlying adjustment along with the share of profit from joint ventures. FLT received a dividend from Pedal Group of $21,830,000,inclusive of pre-completion cash dividend at time of sale. During the period FLT received a dividend of $1,726,000 (2025: $1,669,000) of which 100% (2025: 0%) was received as shares as part of the Pedal dividend reinvestment plan.

Reconciliation of statutory to underlying profit before tax and after tax provided below:

EBITDA, underlying EBITDA, underlying PBT, underlying PAT are unaudited, non-IFRS measures.

1. During the period, convertible notes with a face value of $225,200,000 were bought back for $223,136,000. The fair value of the liability component of these notes was remeasured before buy-back using an equivalent market interest rate for a similar bond without a conversion option, which resulted in a gain of $90,000. The gain is recognised in other income in the statement of profit or loss. Refer Note A3

2. Includes costs incurred on the development of a Human Resources Information System (HRIS) and cost out initiatives which resulted in redundancy costs and contract termination costs, across all pillars to drive improved future performance. The Corporate business transformation project, Productive Operations initiative is also included which has focussed on lowering costs and growing income through automation and personal service. The prior year Productive Operations initiative and GBS projects incl HRIS have been grouped as Pillar initiatives in the comparative year.

3. Costs relate to technology and systems, including enhanced data capabilities, development of apps and a new Customer Relationship Management tool, deployment of specialist teams and external consultancy fees. FY26 also includes initial launch and establishment costs.

4. Relates to the reversal of the Iglu contingent consideration originally recognised in December 2025, released to the statement of profit and loss given the performance targets were not met ($16,871,000). This has been offset by a reassessment of Avmin contingent consideration ($1,118,000) Refer Note A7.

The report is based on the consolidated financial report which has been audited. Refer to the attached full financial report for all other disclosures in respect of the Appendix 4E.

Signed:

G.F. Turner Director

26 August 2026

Directors Graham Turner Gary Smith

Page

John Eales Robert Baker Colette Garnsey Kirsty Rankin

Secretary David Smith

Principal registered office and place of business in Australia

275 Grey St, South Brisbane QLD 4101

+61 7 3083 0088

ABN 25 003 377 188

Share register

Computershare Investor Services Pty Ltd Level 1, 200 Mary Street,

Brisbane QLD 4000

+61 7 3237 2100

Chairman's message 2

FY26 Results & Outlook 4

Directors' Report 6

Auditor's independence declaration to the 34

Directors of Flight Centre Travel Group Limited Statement of profit or loss 35

Statement of other comprehensive income 36

Statement of cash flows 37

Balance sheet 38

Statement of changes in equity 39

Notes to the financial statements 40

Consolidated Entity Report 119

Directors' declaration 124

Auditor

Ernst & Young

Independent Auditor's Report to the Members of Flight Centre Travel Group Limited

125

111 Eagle Street

Brisbane QLD 4000

Stock exchange listing

FLT shares are listed on the Australian Securities Exchange.

Website address

https://www.fctgl.com/

This financial report covers the consolidated financial statements for the consolidated entity consisting of FLT and its subsidiaries. The financial report is presented in Australian currency.

FLT is a company limited by shares, incorporated and domiciled in Australia.

A description of the nature of the consolidated entity's operations and its principal activities is included in the review of operations and activities in the directors' report.

The financial report was authorised for issue by the directors on 26 August 2026. The directors have the power to amend and reissue the financial report.

FLT endorses the ASX's Corporate Governance Principles and Recommendations and complies in all areas, apart from amalgamating the Remuneration and the Nomination Committee. Further information on FLT's compliance with the Corporate Governance Principles and Recommendations, including FLT's Corporate Governance Statement, can be found on the company's website,

https://www.fctgl.com/investors#governance-documents

Shareholder information 131

Tax Transparency Report (unaudited) 132

Sustainability Report 137

To become the world's most exciting and

profitable travel retailer, personally delivering amazing experiences to our people, our customers and our partners.

To open up the world for those who want to see.

26 August 2026 2025/26 full year results released 9 September 2026 Director nomination deadline

18 September 2026 2025/26 final dividend record date 16 October 2026 2025/26 final dividend payment date 11 November 2026 Annual General Meeting

24 February 2026 2026/27 half year results released

25 March 2027* 2026/27 interim dividend record date 15 April 2027* 2026/27 interim dividend payment date

* Date is subject to change

CHAIRMAN'S MESSAGE

I am pleased to present your company's 2026 fiscal year (FY26) annual report.

The year to 30 June, 2026 was another challenging period for our industry as escalating geopolitical tensions late in the year significantly disrupted global travel patterns.

International travel - the lifeblood of our leisure division - was particularly impacted by this disruption, which effectively grounded air traffic to and through key Middle Eastern transit hubs for an extended period.

Once again, our people responded magnificently to the challenge, helping tens of thousands of customers navigate a path through this turbulence.

GARY SMITH CHAIRMAN

Customer satisfaction - which we measure through Net Promoter Scores (NPS) - soared and reached record highs in a number of brands, including Flight Centre, during Q4, when the disruption peaked.

Peak disruption coincided with our busiest trading period, magnifying the impact on our customers but also underlining the difference our people made in a high-pressure environment.

Despite the widespread disruption, we delivered our 27th year of record TTV in our 31 years as a listed entity, with both the leisure and corporate businesses achieving year-on-year growth.

Group profit increased across most key metrics but was down slightly on an underlying profit before tax (UPBT) basis.

Our UPBT trajectory followed a similar path to FY25 in that we were well placed to deliver growth before Q4 trading was disrupted. In FY25, a series of events was behind the disruption; in FY26, it was one significant event - the escalation of conflict in the Middle East - which cost our leisure business an estimated $60m in profit.

This was a disappointing end to what had, until that point, been a very strong year, with the company tracking near or above the top of its profit guidance range for the first three quarters.

Pleasingly, our corporate division was comparatively less affected by the disruption, growing UPBT by 28% for the year.

This highlights one of our great strengths - our diversity. While leisure results were heavily impacted, corporate was shielded to a greater degree and delivered a level of profit growth that almost offset the leisure profit decline.

It would, however, be unfair to judge the leisure business purely on the basis of its ultimate profit outcome.

At the end of Q3, leisure was performing well and had a realistic expectation of delivering a $200m UPBT - which would have been a very notable achievement.

We also saw encouraging results in priority areas such as cruise, touring and luxury travel, which have been identified as key growth drivers for the future. Travel Money's wholesale division - a recent start up - continued its strong trajectory, with TTV almost doubling to circa $700m.

Our financial results are covered in detail elsewhere in this report, while Skroo has outlined our key operational achievements, along with our strategies to build on this year's progress, within his column.

An area that I would like to highlight in this column is our significant investment in capital management and our allocation of capital to create shareholder value.

As you will read in the remuneration report, the board used its discretion to normalise Q4 results and to pay some executives a percentage of the incentives they would have been entitled to, had the disruption to their businesses not occurred. The board was also conscious of the flow-on impact this disruption had on shareholders and elected to return to a higher percentage of NPAT via fully franked dividends.

In total, we returned $87million, or 47% of underlying NPAT, to shareholders through the 30c per share final dividend and the 12c per share interim dividend that was paid in April.

Both dividend payments were fully franked. We also:

• Completed the initial phase of our $200m on-market share buy-back and initiated a further up to $200m buy-back in July 2026, which should help drive further earnings per share growth; and

• Issued a new $450m convertible note to strengthen our balance sheet and refinance existing notes.

  During FY26, we invested about $95m in capital-expenditure, while also enhancing our network via the acquisitions, divestitures and initiatives outlined in Skroo's column.

  
  
  INVESTMENT IN SUSTAINABILITY AND ESG

  Within this report, you will see increased disclosure of climate-related issues.

  FY26 is the first year FLT has prepared mandatory climate-related financial disclosures under AASB S2, reflecting the Australian Sustainability Reporting Standard now required of Group 1 entities. This first year of disclosure is a foundation rather than an end point. We are investing in data infrastructure and governance maturity to strengthen future reporting, including full Scope 3 disclosure from FY27.

  Beyond formal disclosure, our company continues to invest in social impact through three channels of giving back:

• Locally through the FC Foundation

• Globally through FCTG Gives, our newest giving platform (launched in March); and

• Through time via our employee volunteer program

  FLT matches contributions employees make to the FC Foundation via FCTG Gives.

  Our partnership with Reforest continues to grow, through the Flight Centre Brand Planting With Purpose program, which has reached a milestone of more than 3 million trees funded, supporting the natural environments as well as local communities.

  OUTLOOK

  Looking ahead, we remain well placed for the future.

  The disruption we encountered during FY26 was driven by cyclical events rather than structural shifts and we stand to benefit from the rebound as conditions start to recover (which we are now starting to see in the leisure sector).

  We continue to monitor world events and will react accordingly to any short-term challenges that arise. We will also continue to look through a long-term lens and will continue to refine our offerings to ensure we capitalise on changing market dynamics and emerging trends - as we always have.

  At a high level, our priorities for FY27 are to stabilise leisure momentum following Q4 disruption, execute on our cost and capital management plans and continue to grow TTV across every brand.

  We look forward to updating you on our progress as the new fiscal year unfolds.

  FY26 RESULTS & OUTLOOK

  GRAHAM TURNER

  MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER

  
  
  RESULT OVERVIEW

  The company delivered record TTV and YOY growth across most profit metrics, in a trading environment that became increasingly challenging during Q4 as Middle East hostilities escalated and disrupted global travel patterns.

  This temporary disruption slowed Group-wide TTV growth and cost the leisure business circa $60m in profit, after FLT had been tracking near or above the top of its guidance range through Q3. Corporate was less affected, with profit growth outpacing TTV growth throughout the year.

  After a 6.9% increase over the nine months to 31 March, Group TTV growth eased to 4.7% for the full year, reaching a record $25.7b and with YOY growth in both the leisure and corporate divisions.

  Underlying EBITDA rose 3.9% to $466m, while UPBT declined 4.0% to $278m. Beyond the Middle East-related impact already reflected in both metrics, the gap between the two measures reflected a collective $30m YOY UPBT hit from higher software amortisation, new leisure lease costs and increased net interest expense (circa $15m).

  Statutory PBT increased 0.2% to $213m and statutory NPAT rose 38.0% to $149m - a post COVID high - with growth bolstered by deferred tax asset write-offs that reduced FY25's NPAT base. EPS increased 43% to 71c, outpacing NPAT growth as on-market buy-backs reduced shares on issue.

  YOY cost growth slowed during 2H, as initiatives in the Global Business Services (GBS) and Supply areas gained traction, leading to a 9.6% underlying cost margin for the year, just short of the record 9.5% FY23 result.

  Operating cash inflow improved sharply to $278m (FY25:

  $139m), largely reflecting favourable timing in the airline Billing and Settlement Plan (BSP) payment cycle.

  Capital management remained a priority, as the Group:

• Completed its initial $200m on-market-buy-back (16.2m shares) and initiated a further $200m buy-back in July 2026, with 1.4m shares bought back for $16.5m to date

• Optimised its CN's by issuing a $450m note (Sept 2025) to retire the 2028 notes, reduce the 2027 CN's outstanding face value to $200m and part-fund the Iglu (cruise) acquisition; and

• Returned $87m (47% of underlying NPAT) to shareholders via 12c and 30c per share interim and final dividends, with combined dividends related to FY26 results up 5% YOY to 42c per share.

  FLT continued to reshape its portfolio by:

• Divesting non-core assets - the company generated about $80m in cash through the sale of Cross Hotels and Resorts and its minority holding in the Pedal Group cycle joint venture

• Fast-tracking expansion in key sectors - cruise, touring and luxury in leisure; meetings and events, payments and expense in corporate - via strategic acquisitions or start-ups

• Investing in other initiatives, including the World360 Rewards loyalty program, corporate's proprietary technology platforms and digital capabilities Group-wide; and

• Using AI to enhance the customer experience, boost productivity and grow revenue

  In corporate, customer-facing AI products Sam (FCM) and Mel (Corporate Traveller) are being widely used, with Sam now supporting a full conversational booking experience following the recent launch of Sam Booking (trial underway). The business has also deployed an MCP (Model Context Protocol) capability giving customers access to FCM's reporting and analytics data, and Proactive Analytics, which uses AI to alert customers to trends in their travel programs.

  In leisure, an AI acceleration unit is now in place to upskill the workforce, re-imagine roles and secure new revenue. A newly unified global data asset allows AI to be trained and deployed throughout the customer journey, backed by the division's own MCP capability.

  Natural language search is now live across Flight Centre and Travel Associates, powered in-store by Co-Consult, Flight Centre's agentic intelligence search platform. The AIBQ mobile assistant gives customers instant itinerary answers, while a new AI agent supports World360 Rewards.

  FY26 RESULTS & OUTLOOK Continued CORPORATE FINANCIAL SUMMARY

  FLT's corporate division delivered 2.9% TTV growth to

  $12.7b and 3.3% revenue growth to $1.2b.

  TTV again reached record levels, although the rate of YOY growth was hampered by:

• Foreign exchange (FX) shifts, with global TTV up 5% at constant currency. In the US, TTV increased almost 10% in local currency - more than double the 4.4% converted growth rate

• FCM contract timing - 45% of the $1.6b FY26 new account pipeline was secured in Q4 and won't begin trading until later in FY27, reflecting normal onboarding timeframes; and

• The Middle East conflict's heavy impacts on FLT's businesses that operate in or near the region - for example, FCM UAE TTV decreased almost 15%

  UPBT increased 28% to $240m underlying EBITDA grew 24.4% to $275m, with profit growth significantly outpacing TTV growth as the division continued to achieve economies of scale.

  CORPORATE HIGHLIGHTS

• Solid US results, with TTV topping $US2b for the first time

• Continued strong results from Corporate Traveller, with the business delivering 8% TTV growth despite currency headwinds (up 13% at constant currency), and targeting rapid growth in five Northern Hemisphere hubs (New York, London, California, Toronto and Quebec)

• 20% uplift in TTV per average full-time employee through the Productive Operations initiative since the end of FY23, supporting margin expansion and enhancing customer satisfaction. TTV per sales consultant has increased more rapidly - up more than 30% over the same period

• Deployment of fully integrated proprietary platforms built to scale at lower incremental cost as the business grows

• 11% of revenue derived from services outside traditional travel management (FY25: 9%), reflecting adoption of payment and expense, meetings and events and other adjacent offerings

  LEISURE FINANCIAL SUMMARY

  FLT's leisure division delivered 7.4% TTV growth to $12.6b and 2.6% revenue growth to $1.4b.

  Revenue margin (revenue as a percentage of TTV) decreased YOY because of business mix shifts (rapid growth in lower-margin units such as wholesale FX), a temporary swing to lower-margin destinations and reduced supplier incentives as key carriers were grounded.

  The division also refunded more than $250m in airfares alone after Middle East tensions escalated, helping thousands re-arrange plans - temporarily slowing productivity, but lifting customer satisfaction.

  UPBT for the year was down 21.7% to $139m and underlying EBITDA down 6.7% to $250m.

  LEISURE HIGHLIGHTS

• Acquired Iglu (UK) to fast-track global cruise ambitions

  - cruise TTV set to top $2b during FY27

• Healthy forward sales and revenue pipeline secured from the exclusive 12-month charter with Norwegian Cruiselines - first voyage set to depart in September 2026

• Scott Dunn delivered another strong performance, reinforcing its position at the heart of FLT's luxury sector expansion plans

• Launch of the World360 Rewards leisure loyalty program, which now has about 600,000 members in Australia - approximately 65% of them new or re-engaging customers - and plans to extend the program to Corporate Traveller and Flight Centre Business Travel later this year

• Online leisure TTV topped $1.8b (up 17%), reflecting continued growth in digital sales and capability, supported by a new, consolidated digital commerce structure

  OUTLOOK

  FLT is seeing signs of recovery in early FY27 trading, with the leisure business posting record July TTV, surpassing the pre-pandemic 2019 peak, and its strongest July profit since 2015. Flight Centre, Link Travel Group, Ignite, Luxury Travel Collection, Scott Dunn and Cruiseabout among the key contributors.

  Long-haul travel from Australia, a key leisure profit driver, is starting to rebound, with:

• US sales returning to YOY growth for two consecutive months (June-July) for the first time since the tariff and immigration-related downturn late in FY25; and

• UK airfare sales back above the prior year levels in July 2026; a positive lead indicator ahead of the upcoming earlybird (airfare sales) season

  Corporate TTV trends remain consistent with Q4: solid constant-currency growth in July 2026, though Middle East instability continues to affect businesses located within the region (FCM UAE) or closely linked to it (Asia, Europe, M&E).

  FY27 corporate profit is expected to be 2H weighted, with the 1H result likely to be below prior corresponding period. This reflects the ongoing instability in the region, along with:

• Front-loaded investments in Corporate Traveller's expansion

• Productive Operations' employee costs moving above-the-line into trading results

• Current FX headwinds on profit translation; and

• The timing of recently won accounts starting to trade

In addition to its contracted account wins, the business also has a large RFP pipeline globally, potentially unlocking further TTV growth late in the year and into FY28.

Customer sentiment remains healthy, with FLT's State of the Market survey (July-August 2026) finding that almost 80% of corporate customers and 83% of Corporate Traveller's SME customers expect to increase or maintain travel budgets this year.

Elsewhere, FLT's HQ segment will remain exposed to higher net interest, offset by cost control and a return to normal profitability for its operating businesses, particularly in peak Q4 trading.

The Group continues to monitor Middle East volatility and its flow-on economic impacts, while staying focused on cost discipline, market share gains and balance sheet strength.

FLT is also working closely with supply partners, particularly Middle Eastern carriers, on agreements that position the Group to earn stronger returns on key contracts if growth accelerates across core brands.

Consistent with normal practice, FY27 earnings guidance will be provided at the Annual General Meeting (AGM) in November.

Your directors present their report on the consolidated entity (referred to hereafter as the Group) consisting of Flight Centre Travel Group Limited (FLT) and the entities it controlled at the end of, or during, the year ended 30 June 2026.

The Group's principal continuing activities consisted of leisure travel retailing and corporate travel management, plus in-destination travel experience businesses including tour operations, destination management companies (DMCs) and wholesaling.

There were no significant changes in the nature of the Group's activities during the year.

There was no significant change in the Group's state of affairs during the year.

Information on likely developments in the Group's operations and the expected results of operations has been included in the FY26 Results & Outlook column on page 4.

Dividends paid to members during the financial year were as follows:

DIVIDENDS

On 26 August 2026, FLT's directors declared a fully franked 30.0 cents per fully paid ordinary share final dividend for the year ended 30 June 2026 (2025: 29.0cents). The total amount of the dividend is $61.3million. The combined interim paid and final declared dividend represents a $86,312,000 (2025: $87,584,000) return to shareholders, 58% (2025: 81%) of FLT's statutory NPAT. The combined dividend represents 47% (2025: 53% ) of FLT's full year underlying NPAT.

No other material matters have arisen since 30 June 2026.

The Group has determined that no particular or significant environmental regulations apply to it.

A review of operations, financial position, business strategies and details of FLT's outlook for 2026/27 are included on pages 2 to 5 of this report.

The following persons were FLT directors during the financial year and up to the date of this report:

Graham Turner BVSc

executive with Mastercard in the USA. Currently, non-executive director of Beonic Ltd, an ASX-listed omni-data intelligence company (from Aug-21).

Founding FLT director with significant experience in running retail travel businesses in Australia, New Zealand, USA, UK, South Africa, Canada and Asia. Director of the Australian Travel Industry Association (from Sept-05).

Remuneration and nomination committee member

Audit and risk committee member

Managing director 17,094,500

No directors held interests in share rights, options or performance rights during the year (2025: nil).

The current mix of skills and experience represented by the directors during the period, is as follows:

* For expertise in areas not listed above, the directors seek expertise within FLT and externally where appropriate.

The company secretary, Mr David Smith (B.Com, LLB), joined FLT in 2002, and was appointed company secretary in February 2008. Mr Smith has more than 26 years legal experience and is also FLT's general manager of mergers & acquisitions. Prior to joining FLT, Mr Smith held positions with Wilson HTM, Blake Dawson (now Ashurst) and Clayton Utz.

The number of meetings of the company's board of directors and of each board committee held during the year ended 30 June 2026 and the number of meetings attended by each director were:

A = Number of meetings attended

B = Number of meetings held during the time the director held office or was a member of the committee during the year

* = Not a member of the relevant committee

FLT's risk management approach is guided by three fundamental principles:

• Asset and Stakeholder Protection: Effective risk identification and management to safeguard the Group's assets, personnel, and key stakeholders.

• Operational Optimisation: Continuous improvement and informed decision-making to enhance the Group's operations.

• Growth and Sustainability Support: Balancing risk to ensure the Group's growth and sustained value creation.

  Risk management is established by the risk management policy and strategy, and is a responsibility shared by all employees.

  OVERSIGHT AND GOVERNANCE

  The Board, via the combined Audit and Risk Committee, oversees the Group's risk management framework. This framework supports the Board and management to identify, evaluate, monitor, and manage key risks, supporting the protection of assets and enhancing shareholder value. The Audit and Risk Committee's charter is available on our website at

  https://www.fctgl.com/investors#governance-documents.

  The CEO and management are accountable for identifying, assessing, and monitoring risks, and ensuring risk management activities are communicated in line with the Group's risk strategy framework.

  While FLT does not have a dedicated internal audit function, regions have risk functions responsible for monitoring and helping to manage risks, along with dedicated specialists for risk categories including information security, cyber, privacy, financial crime, AI governance, and sustainability.

  Group Enterprise Risk reports directly to the Audit and Risk Committee each quarter and has unrestricted access to the Committee and its Chair. The effectiveness of the Group's risk management and internal control processes is evaluated through risk and control assessments, targeted control testing and thematic reviews, with the results reported to the Audit and Risk Committee.

  The CEO and CFO provide the Board with a formal sign-off on the Group's financial statements, in accordance with section 295A of the Corporations Act 2001 (Cth) and recommendation 4.2 of the ASX Corporate Governance Principles and Recommendations. That sign off is founded upon a sound system of risk management and internal control which operates effectively in all material aspects in relation to financial reporting risks.

  RISK MANAGEMENT FRAMEWORK

  The risk management framework is built around the following processes:

• Identification: Identifying risks that could potentially materially impact the Group's strategic objectives and operations.

• Assessment: Evaluating the impact and likelihood of key risks.

• Mitigation and Control: Developing appropriate strategies and treatment to manage risks within acceptable levels.

• Monitoring and Reporting: Ongoing monitoring and reporting of risks in line with the Group's risk appetite.

  Risks are considered within the context of the Group's strategic and operational goals across both financial and nonfinancial domains. The Board and / or Audit and Risk Committee reviews the FLT risk management policy and FLT's risk management framework and is satisfied that it continues to be sound.

  RISK CLASSES

  The risk management strategy identifies key risk classes intrinsic to our business model, operations, and the external trading environment.

  By effectively managing these material risks, we support the achievement of FLT's overall objectives.

• Business Environment Risk: The risk of loss or failure to achieve strategic objectives arising from ineffective strategic choices or execution, or failure to respond to new or evolving threats in the external environment.

• Financial Risks: The risk of loss resulting from adverse movements in financial markets, inadequate financial management, or failure to meet financial obligations.

• Operational Risks: The risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events.

• Conduct & Compliance Risks: The risk of adverse outcomes for customers, counterparts, our people, of the Group's reputation arising from failures in conduct, regulatory compliance, financial crime prevention, or privacy and data protection obligations.

• Emerging Risks: Risks not yet fully materialised that may have a future impact on our business models and strategy. Emerging risks are identified through horizon scanning and migrate to substantive risk categories as they mature.

The below section outlines the key risks currently associated with the Group, though it may not encompass every potential risk. The materiality of these risks is subject to change, and new risks may arise. The Group is committed to managing these risks effectively to mitigate any negative effects on our financial performance and reputation. However, it is important to note that some risks are outside the Group's control.

Business Environment Risk including Strategy Risk

Strategic risk management is delivered through our annual strategy and business planning process at group and divisional levels. Strategic risk assessment will consider the risks that inform our strategy and the risks introduced through strategic decisions into our business operations.

Reduce uncertainty and maximise the upside of risks taken for superior returns.

• Competition risk

• Growth strategic execution (organic and inorganic growth)

• Technology disruption and AI

  OVERVIEW AND RISK FACTORS

• Transformational change

• Sustainability

• Market conditions

• Macroeconomic and geopolitical risk

  FLT faces various threats and disruptions that may impact its ability to effectively execute growth strategies, including both organic growth and strategic growth through mergers and acquisitions (M&A). Operating in a highly competitive environment, the Group encounters challenges from existing and new competitors and risks of disruption from emerging technologies and changing customer preferences.

  The successful achievement of the Group's strategic growth objectives relies on the performance and alignment of its global divisions, as well as its investments. These areas are subject to influences from internal and external factors.

  The Group's M&A strategy also includes significant risks, such as identifying suitable acquisition targets, conducting thorough due diligence, integrating acquired businesses, realising synergies, and meeting financial expectations. These risks could adversely affect the Group's operational and financial performance.

  The global operating environment has become increasingly complex and volatile. The escalation in the Middle East during FY26 (including the recent conflict between Iran, the United States and Gulf States) resulted in widespread airspace closures across the Gulf region, disrupting established flight routes between Europe and Asia, grounding flights and directly affecting the Group's operations, supplier relationships and customer travel patterns. Conflict in the Gulf also created the risk of disruption to the supply and pricing of oil and aviation fuel, which in turn flows to airfare pricing, broader inflation and consumer confidence, each of which may dampen discretionary demand for travel. The conflict in Ukraine continues into its fifth year, with Russian and Ukrainian airspace closed to most commercial aviation and Western sanctions affecting travel flows and financial transaction processing across affected jurisdictions.

  Trade policy uncertainty, including sweeping US tariffs and retaliatory measures from trading partners, has contributed to inflationary pressure, weakened consumer confidence and reduced inbound travel to key markets. These geopolitical and macroeconomic conditions, combined with persistent inflation, interest rate uncertainty and the risk of recession in major economies, directly influence discretionary spending on travel and present material risks to the Group's financial performance.

  The travel sector is sensitive to actual and perceived threats to traveller safety. Travel-related accidents, acts of terrorism, security incidents, civil unrest, natural disasters and health or hygiene concerns, including disease outbreaks, can each suppress demand for travel and disrupt the Group's operations. These effects are shaped by travellers' perceptions of safety as much as by the events themselves and may be magnified where they coincide with peak leisure or corporate travel periods. A significant or sustained safety event could materially affect demand for the Group's products and, in turn, its operating and financial performance.

  The rapid advancement of artificial intelligence, automation and digital platforms presents both strategic opportunity and risk. Competitors and new market entrants are deploying AI-driven personalisation, dynamic pricing and automated service delivery at increasing scale. The Group faces the risk that its technology investments do not keep pace with the rate of change, or that shifts in customer expectations toward digital-first experiences erode competitive advantage for traditional travel management models.

  HOW WE MANAGE THESE RISKS

  Strategic Planning and Diversification

  The Group actively evaluates its strategies and business model as part of its ongoing strategic planning process. Through diversification, we aim to reduce the risk of disruption and competition from market entrants, while striving for sustainable growth.

  Innovation and Technological Advancement

  To foster innovation and improve business operations, the Group invests in key capabilities and technologies, focusing on automation and digital transformation. An AI governance framework, including policies, an oversight committee and reporting mechanisms, is in place to manage associated risks including model integrity, data privacy, ethical use and regulatory compliance. Additionally, inorganic growth through mergers and acquisitions is consistently assessed and pursued when such investments offer strong value, returns, and complement our existing portfolio.

  Geographical Presence and Market Adaptation

  The Group monitors geopolitical developments and macroeconomic conditions across its key operating markets, supported by intelligence from industry bodies and government advisory services. Business continuity plans enable rapid operational response to travel disruptions including airspace closures, sanctions changes and travel advisory escalations and events affecting traveller safety. Sanctions compliance is monitored across the Group's multi-jurisdictional operations. Treasury and commercial teams monitor the impact of trade policy changes and macroeconomic shifts on supplier costs, travel demand, and foreign exchange exposure.

  Strategic Project Oversight

  Major strategic projects, including capital raising, mergers, acquisitions, divestment, joint ventures, and business initiatives or transformations undergo risk assessments. These assessments are designed to align with specific objectives and risk appetite of each project, ensuring they support the Group's goals.

  RISK APPROACH OBJECTIVE

Financial Financial risks are managed through Board policy limits and tolerances translated from our risk appetite.

Support financial requirements of strategic objectives and ensure financial obligations are met when they are due.

• • Liquidity and capital access

  • Foreign exchange

  • Interest rate

    OVERVIEW AND RISK FACTORS

• Credit

• Investment

  Securing liquidity and access to capital is essential for the Group to achieve its business objectives and meet financial obligations. Failure to maintain a strong balance sheet or difficulties in obtaining favourable credit or capital facilities could adversely affect our operational and financial performance, as well as our ability to fulfil ongoing liquidity needs, including debt refinancing.

  As an international operator, FLT is exposed to foreign exchange risks, which can impact our operating and financial performance. Fluctuations in currency exchange rates influence future cash flows and may affect the demand for travel and tourism services, which are central to our business.

  The Group faces exposure to interest rate fluctuations, potentially increasing debt servicing costs. Global financial market developments might affect the liquidity of credit markets and our access to those markets, which could have a material impact on our future financial performance and position.

  Our business model relies on pre-payment by customers for travel-related services, along with sizeable corporate credit balances and supplier payment terms. Changes in these terms, customer refund requests, chargebacks or issues with receivables and recoverable assets could necessitate additional working capital, negatively impacting the Group's operational and financial performance. The withdrawal or repricing of transactional banking or credit-card processing facilities by providers could similarly affect the Group's working capital and operations.

  HOW WE MANAGE THESE RISKS

  Liquidity Oversight

  The Group actively manages liquidity through rolling operating cash flow forecasts, supported by detailed 13-week cash flow forecasts prepared weekly for each business and country. These forecasts provide insight into cash inflows and outflows, helping identify potential liquidity gaps or surpluses. Regular assessment of liquidity ratios is conducted to evaluate the Group's ability to convert assets into cash and cover short-term liabilities. Efforts to optimise working capital include effective management of receivables and payables, along with negotiating favourable terms with suppliers and customers. Debt structures are monitored in line with our capital management strategy, which aims to sustain growth, maintain a strong balance sheet, and maximise shareholder returns.

  The Group continually assesses its strategies and models as part of our strategic planning process. Through diversification, the Group aims to mitigate the threat of disruption and market entrants and pursue sustainable growth. Investment into key capabilities and technologies are made with the goal of fostering innovation, automation and digital transformation in respect of our business operations. Inorganic growth via mergers and acquisitions is continually assessed and executed where investment presents strong value, returns and complements our portfolio.

  Treasury and Financial Risk Management

  A central treasury department oversees financial risk management, guided by Board-approved policies on areas such as foreign exchange, interest rates, and credit risk, along with the use of derivative and non-derivative financial instruments. Treasury collaborates with operating units to identify, evaluate, and hedge financial risks. The Board provides written principles for overall risk management and policies for specific areas.

  Debtor and Supplier Risk Management

  The Group manages debtors and supplier risk through specific credit terms and criteria to assess the creditworthiness of suppliers and corporate customers. Regular evaluations and appraisals are conducted to ensure compliance with policies and standards. Based on risk profiles, the Group may require collateral or guarantees to secure payment obligations.

  Invoices are settled promptly and accurately, adhering to agreed terms.

  Acquisition and Investment Risk Management

  The Group follows a rigorous investment and due diligence process to evaluate financial, operational, legal, and strategic aspects of potential opportunities. Regular monitoring and reporting on existing investments ensure alignment with strategic objectives and value delivery.

  Operational Operational risks are assessed against their

  likelihood of occurring and the severity of their impacts.

  Risks avoided or mitigated through practicable control design and operation.

  KEY RISKS

  • People & Culture

  • Third-Party / Supply Chain

  • Cyber & Information Security

    OVERVIEW AND RISK FACTORS

• Data Protection and Privacy

• Technology (End of Life (EOL) and Technology Debt)

• Artificial Intelligence (AI)

  As a service-oriented organisation that relies on key senior management and personnel, the Group faces significant risks from staff turnover and loss of key employees. The absence of experienced consultants, sales teams, frontline managers, and senior leaders could disrupt business operations in the short term and negatively affect financial performance. The complexity of operating over 30 brands in multiple countries further amplifies these challenges. Attracting and retaining qualified staff is crucial to mitigate these risks.

  Our supply chain involves travel providers, major airlines, global distribution systems, and intermediaries including the International Air Transport Association (IATA). Reliance on third-party suppliers introduces risks of disputes or contractual failures that could harm reputation and financial performance. The current economic climate exacerbates these risks, as suppliers may alter engagement terms or default on payments due to operational challenges, posing direct threats to the Group's operations and financial stability.

  As a multinational organisation processing customer payments and personal data across multiple jurisdictions, the Group faces material cybersecurity and IT operational risk. Our business model requires robust technology infrastructure to support operations in multiple international markets, creating exposure to cyber threats, system failures, and regulatory compliance challenges. Operating under multiple privacy and data protection regimes including GDPR, and maintaining PCI DSS compliance for payment credit card processing, adds further complexity to our risk landscape.

  Primary cybersecurity and IT risks include ransomware attacks, data breaches, supply chain compromises, and system outages. Such incidents could result in operational disruption across our international network, revenue loss, regulatory penalties, and substantial reputational damage affecting customer confidence and future business performance. Noncompliance with regulatory requirements could result in sanctions, financial penalties, and operational restrictions.

  The Group operates a complex technology estate, parts of which rely on legacy or end-of-life systems. Hardware, software and platforms that have reached or are approaching end-of-life or end-of-vendor-support may no longer receive security patches or vendor support, heightening exposure to the security vulnerabilities described above. Related technology debt can constrain the Group's ability to deliver change, respond to incidents and maintain service quality, and increase the cost and complexity of remediation over time.

  Data protection is a distinct operational risk for the Group. FLT systems necessarily hold personal data across multiple platforms; its accumulation beyond current operational need increases exposure in security incidents, amplifies regulatory liability, and complicates compliance with individuals' rights. The cross-border transfer of personal data is operationally essential to travel retail yet increasingly constrained by a fragmented global regulatory landscape. These risks are structural to the industry and are not expected to diminish in the medium term.

  The Group continues to invest in artificial intelligence and automation to enhance productivity, customer experiences, and the transformation of travel retailing, with adoption accelerating across both proprietary and third-party AI tools and platforms.

  As the Group's use of AI expands, so does the materiality of the associated risks. Key risk areas include: AI models producing incorrect or biased outputs due to flawed design, implementation errors, or performance drift over time; staff over-reliance on AI-generated outputs without adequate critical review; uncontrolled proliferation of AI tools without consistent governance and oversight; exposure to third-party AI platforms operating with insufficient human oversight relative to the consequence of their outputs. The AI regulatory environment is evolving rapidly. New privacy obligations on automated decision-making, regulators focus on AI-related claims, and emerging AI-specific regulation in jurisdictions where the Group operates may increase compliance costs and constrain how AI is deployed.

  Failure to manage these risks effectively could result in operational disruption, poor customer outcomes, regulatory noncompliance, reputational damage, and financial loss.

  HOW WE MANAGE THOSE RISKS

  Employment Management

  The Group emphasises a strong culture, reward, and recognition systems to maintain high staff satisfaction and retention. The Executive Team is collectively responsible for ensuring an organisational culture that meets objectives. Strong talent management, succession planning, and retention mechanisms are in place to secure key capabilities.

  Artificial Intelligence Management

  The Group has established an AI governance framework to manage risks associated with the development, deployment, and use of AI technologies. This includes an AI governance committee providing oversight and escalation pathways, policies governing acceptable use and procurement of AI tools, risk assessment requirements for new AI deployments, and ongoing monitoring of model performance.

  Cybersecurity, Privacy and IT Management

  The Group employs comprehensive cybersecurity frameworks designed to protect systems and data, detect security incidents, and enable rapid response to minimise business impacts. A dedicated Information Security team implements security controls and practices, supported by regular employee training program, security assessments, and continuous monitoring systems. Established incident response procedures provide additional protection against potential security events.

  Privacy and data protection risks are managed by the global Privacy function which has implemented a Privacy Framework, policies, mandatory employee training, reporting mechanisms, and privacy default design criteria. Privacy response mechanisms are employed to investigate and address all privacy incidents raised to the Privacy function.

  Supply Chain and Third-Party Management

  The Group performs due diligence and relationship management to monitor supply chain and third-party risks. By maintaining a diverse supplier base, the Group reduces dependency and increases resilience. Ongoing supplier assessments ensure compliance, performance, and quality standards are met.

  Conduct and compliance risk

  Conduct and compliance risks are assessed and managed with a control environment designed to meet regulatory, customer, stakeholder, and community expectations.

  Risks avoided or mitigated through practicable control design and operation with consideration to legal, regulatory and codes of conduct.

  KEY RISKS

  • Privacy and data security

  • Financial crime compliance

    OVERVIEW AND RISK FACTORS

• Market integrity

• Treating customers fairly

  As a global retailer of travel and travel-related products, the Group faces regulatory risks linked to non-compliance with jurisdiction-specific requirements. Key areas of exposure include:

  • Data privacy breaches and mismanagement of confidentiality

  • Failures in external financial and regulatory reporting

  • Errors in tax payments and filings, or the impact of changes in tax law, its interpretation, or disputed assessments

  • Financial crime, including money laundering, terrorism financing, bribery, corruption and sanctions breaches

  • Failure to identify material changes to laws, regulations, licensing, industry standards or codes

  • Conduct towards customers, including in relation to pricing, cancellation and refund practices, and the provision of accurate advice

    Any regulatory enforcement could significantly impact the Group's reputation and financial performance.

    Monitoring ethical behaviour throughout our supply chain is vital, especially regarding human rights, modern slavery, and data security. Breaches such as fraud, bribery, corruption, anti-competitive actions, sanctions violations, money laundering, terrorism financing, cyber security and IT system continuity incidents and privacy violations pose substantial risks to our business.

    FLT is dedicated to ethical conduct and strong governance. This commitment is essential for business success and meets the expectations of shareholders, regulators, customers and employees. Any deviation from our code of conduct by employees or suppliers could lead to a breach of legislation or regulations and damage the Group's reputation.

    HOW WE MANAGE THOSE RISKS

    Compliance by design

    The Group ensures regulatory compliance by implementing robust policies, effective training, advanced technology, and streamlined processes and monitoring. These measures help FLT maintain strong relationships with regulators, respond effectively to regulatory changes, secure necessary licences and certifications, and operate responsibly across international borders.

    Corporate Governance Framework

    Our corporate governance approach is designed to manage, oversee, and report conduct matters across the Group. FLT endorses the ASX Corporate Governance Principles and Recommendations, adhering to each as outlined in our Corporate Governance Statement. The Group actively monitors and reports any material breaches of our code of conduct directly to the Board.

    RISK APPROACH OBJECTIVE

Emerging Emerging risks are assessed differently to other

risk classes. Scenarios are utilised to inform mitigation plans to be implemented if the risk materialises.

Understanding potential impacts and mitigations if risk were to materialise.

• • Environmental, Social and Governance

  • Macroeconomic and Geopolitical

    OVERVIEW AND RISK FACTORS

• Technological

Certain risks span both present and emerging dimensions. The current, material aspects of macroeconomic and geopolitical risk and technology disruption are addressed within Business Environment Risk, while their continuing evolution, including potential future developments not yet materialised, remains subject to the Group's horizon-scanning process. Climate-related risk is also reported through the Group's mandatory climate-related financial disclosures within this report.

The Group, along with its customers, suppliers and service providers, is exposed to climate change risks, including extreme weather events and chronic climate pattern shifts.

Risks are also present in climate change mitigation and reporting efforts including regulatory burden of transitioning to new reporting requirements and market shifts in changing customer preferences and demand. The details of these climate-related risks faced by the Group can be found on pages 141-143

The global travel industry faces a complex macroeconomic and geopolitical environment. Although travel demand remains resilient, consumer caution in spending on travel and business cost-cutting measures are noticeable. Geopolitical tensions, including conflicts in Ukraine and Middle East (US-Iran conflict) contribute to increased travel advisories, regulatory changes, and operational risks, affecting traveller confidence and logistics. Such conflicts also carry the risk of disruption to the supply and pricing of oil and aviation fuel, with potential flow-through to airfare pricing, inflation and consumer confidence.

Sustainability and Compliance

The Group has a dedicated sustainability team which leads compliance efforts with jurisdictional sustainability standards. The Group assesses climate risks and opportunities in accordance with mandatory climate-related financial disclosure requirements under the Corporations Act 2001 and Australian Sustainability Reporting Standards (ASRS). Further information about the Group's climate-related risk can be found in the Sustainability Report from page 137 onwards.

Digitisation of travel retailing

To ensure the ongoing viability of the Group's business model and operations, we are adopting digital platforms and advanced technologies including artificial intelligence, machine learning and automation to create competitive advantage and counteract disruption within the market segment by digital entrants. We are also utilising this emerging technology to streamline operations and enhance customer experience.

Risk Management Framework and Strategic Positioning

Our risk management framework strengthens balance sheets and ensures proactive business continuity planning. Strong relationships with suppliers and partners ensure service reliability and adaptability. Traveller safety, flexibility, and support are paramount to fostering trust and loyalty during uncertain times. As travel remains a key discretionary category, our strategic positioning captures growth opportunities while safeguarding operations and reputation globally.

JOHN EALES

REMUNERATION REPORT GLOSSARY

On behalf of the Board, I present FLT's Remuneration Report for the year ended 30 June 2026.

FY26 was the first year of a substantially reshaped remuneration framework and also a year in which the Board exercised its discretion over incentive outcomes in any way that could be considered significant.

This letter explains how the Board approached both changes.The framework itself, and the outcomes it produced, are set out in full in the report that follows:

As a company, we value common-sense over conventional wisdom.

That belief was traditionally reflected in our remuneration structures, which were purpose-built over more than 40 years and tailored to FLT's specific requirements, rather than off-the-shelf offerings designed for companies with very different structures, objectives, cultures and beliefs.

While we continue to refine our structures to ensure they meet specific objectives, we are now generally aligned with the broader market's remuneration principles. The changes foreshadowed in last year's report took effect from 1 July 2025 and have strengthened this alignment.

Those changes included:

• A 75% STI cap for KMP, subject to the company overall achieving an underlying profit gateway

• Non-financial people and culture metrics introduced, with the Board able to moderate future STI outcomes down by up to 20% if performance against these metrics is deemed unacceptable; and

• A more conventional, equity-based LTI introduced to replace the LTRP, which is being phased out

  The new LTI has a three-year performance period built around three measurable KPIs:

• Earnings per share (EPS) growth

• Total shareholder return to relative peers (RTSR); and

• TTV growth

  These broader metrics mean it is more closely aligned to traditional LTI structures than the LTRP - which was primarily a retention tool, rather than an incentive program - while still focusing participants on areas that the company considers important and that are aligned to both its strategic objectives and shareholder interests.

  Earnings before interest, tax, depreciation and

  amortisation

  Earnings per share

  CEO Group: FLT's global executive team, consisting of Graham

  Turner, Adam Campbell, Chris Galanty, James Kavanagh and Greg Parker

  NEDs:

  Non-executive directors

  UPBT:

  Underlying profit before tax

  EY:

  Ernst & Young

  RNC:

  FLTs Remuneration and Nomination Committee

  FLT:

  Flight Centre Travel Group Limited

  STIs:

  Short-term incentives

  FTSE:

  Financial Times Stock Exchange

  LTIs:

  Long-term incentives

  FY:

  The fiscal year

  LSL:

  AIM:

  Alternative Investment Market

  KMP:

  Key management personnel

  BOS:

  Business ownership scheme

  KPIs:

  Key performance indicators, the basis for FLT's STI's

  CEO:

  Chief executive officer

  EBITDA:

  EPS:

  Long service leave

  CFO:

  Chief financial officer

  LTRP:

  Long Term Retention Plan

  DIP:

  Deferred incentive plan

  MDs:

  Managing directors

  The intent behind these changes is straightforward. More executive reward is now genuinely at risk in both the short and long-term.

  Fixed remuneration - effectively the floor - for KMP in FY26 was unchanged and remained positioned around market median (based on benchmarking).

  Of course, we do not want our people to simply earn that floor - leaving our people sitting at or near the floor for any length of time heightens retention risk in a market where competitors are actively targeting our leadership. The framework is designed so they earn a genuinely more competitive overall package by achieving their short and long-term incentives.

  THE BOARD'S USE OF DISCRETION

  Retaining world-class talent, and the continuity and intellectual property that comes with it, is critical in a challenging trading environment, which is exactly what we experienced during Q4 FY26.

  Through the nine months to 31 March 2026, the business was tracking at or ahead of plan, before the outbreak of the US-Iran conflict in the final quarter disrupted global leisure travel demand during what would normally be Leisure's business's peak earnings period. This had a material impact on FY26 profit - estimated at circa $60m in the leisure business alone.

  The impacts were felt throughout Q4 and were amplified by government policies that effectively stalled the recovery and removed our people's ability to recoup lost incentive earnings. For example, a Do Not Travel advisory - the highest warning level - was in place for key Middle Eastern transit hubs until 17 June, meaning customers travelling from Australia to Europe via the Middle East could not access travel insurance for unrelated issues arising while merely transiting those hubs.

  The Board did not consider it appropriate for an unforeseeable, late-year event to determine incentive outcomes for the entire year, particularly where the consequences would be to leave senior executives at or near the floor of their incentives at a time of heightened competitor interest in our leadership team.

  The Board therefore assessed performance for Leisure executives on a basis that excluded the shock's impact on Leisure and the Group - and then halved the result, so that outcomes remained anchored to what shareholders actually experienced over the full year.

  Before doing so, the Board satisfied itself that:

• No individual outcome exceeded the maximum opportunity already disclosed to shareholders

• The quantum was not material; and

• The basis and effect of the adjustment would be disclosed in full

  The profit gateway that was in place for Leisure executives STIs was subsequently satisfied on the adjusted measure, as disclosed in the remuneration report. Outcomes for the Corporate and Supply segments were not adjusted and reflect actual full-year results.

  While the adjustment was favourable to participants relative to statutory results, the 50 percent reduction the Board applied was not. The rationale was to deliver a balanced outcome that fairly reflected both the performance our people delivered and the results shareholders experienced across the whole year.

  This was not a decision taken lightly, and it is not one we expect to repeat. Our framework is built on simple, measurable and transparent structures precisely so that discretion, where deemed required, remains the exception.

  AN INDIVIDUAL RETENTION ARRANGEMENT

  During the year the Board approved a long-dated retention incentive for the CEO-Leisure, outside of the standard framework.

  While the Board does not typically favour bespoke arrangements, it believes the rationale behind this arrangement is sound in that it creates a strong alignment between the executive's and shareholders's interests over the long-term.

  It effectively locks the executive into the role for an extended period, while key initiatives such as World360 Rewards are bedded down, and incentivises the executive to create long-term value in the Leisure business overall.

  The new retention incentive is conditional on continued service, no amount is payable before 30 June 2030, and its value is geared entirely to growth in Leisure profitability above the FY25 result. The full terms are disclosed in the report.

  ENGAGEMENT WITH SHAREHOLDERS

  It is critical that our remuneration systems are understood and accepted, so we continue to engage with key stakeholders to enhance this understanding and to consider feedback. This is a genuine two-way conversation that has led to various changes over the years, including the introduction of an STI cap and a shift to a more traditional LTI structure.

  Generally, shareholders have responded positively to our company-specific remuneration system and the policies, beliefs and governance structure which underpin it, as evidenced by the strong endorsement this report has traditionally received from shareholders at our Annual General Meetings. To date, the largest vote against our report was 5.85%, almost 20 years ago, in 2007.

  We do not treat that history as an entitlement, and less so in a year in which the Board has asked you to accept its judgement.

  CONCLUSION

  As always, I thank our executive team and our people at every level for their contribution and commitment throughout what was, once again, a year with its share of challenges.

  Thank you also to you - our valued shareholders - for your ongoing support of our company.

  Together, we remain committed to building a business that rewards performance, earns trust and creates lasting value for everyone who has a stake in its success.

  REMUNERATION REPORT - AUDITED

  This remuneration report has been prepared in accordance with section 300A of the Corporations Act 2001 and the information has been audited as required by section 308(3C) of the Corporations Act 2001.

  19

  KMP for FY26

  Page Section CONTENTS

  Executive KMP remuneration framework 20

  Statutory remuneration

  26

  Remuneration governance

  31

  NED remuneration 32

  Equity instrument disclosure 29

  Executive remuneration outcomes for FY26 and the link to business performance 24

  Additional required disclosures 32

  KMP FOR FY26

  This report covers the KMP remuneration details for the company and consolidated entity consisting of FLT and the entities it controlled for the year ended 30 June 2026. Board and KMP are as defined by AASB 124 Related Party Disclosures and are responsible for planning, directing and controlling the entity's activities. For FY26, the KMP were:

  NON-EXECUTIVE DIRECTORS TERM
  Gary Smith	Chair	Full Year
  John Eales	Non-Executive Director	Full Year
  Robert Baker	Non-Executive Director	Full Year
  Colette Garnsey	Non-Executive Director	Full Year
  Kirsty Rankin	Non-Executive Director	Full Year

  EXECUTIVE KMP	CURRENT FLT ROLE	FIRST FLT ROLE	TENURE	TERM
  Graham Turner	CEO	CEO	45 years	Full Year
  Adam Campbell	CFO and CEO - Global Business Services	Risk & Audit	19 years	Full Year
  Chris Galanty	CEO - Corporate	Flight Centre Putney (UK)	29 years	Full Year
  James Kavanagh	CEO - Leisure	Campus Travel Account Manager	22 years	Full Year
  Greg Parker	CEO - Supply	Air Contracting (Australia)	23 years	Full Year

  With the exception of Chris Galanty, the executives listed above were also Parent Entity executives.

  EXECUTIVE KMP REMUNERATION FRAMEWORK FLT'S REMUNERATION PHILOSOPHY

  FLT's remuneration framework is designed around our core philosophies and strategic objectives, while remaining aligned

  with market practice. The framework is:

• Competitive, which allows the company to attract and retain high calibre people.

• Aligned with participants' interests, reflecting responsibilities and rewarding achievement in creating short and longterm shareholder value.

• Acceptable to shareholders and strongly aligned with their interests.

• Transparent, with clear targets set and performance against them is measurable; and

• Tied to the company's longer-term objectives, capital management strategies and structures.

  Remuneration structures for Executive KMP are also carefully tailored to ensure they include an appropriate mix of:

• Fixed pay; and

• Variable pay with incentives ensuring a strong short and long-term alignment between executive and shareholder interests.

Measurable, outcome-based KPIs underpin FLT's STI programs and its overall remuneration framework globally. FLT believes that if the right outcomes are rewarded via its STIs, the company, its people, its customers and its shareholders will benefit. FLT's belief in the value of using quantitative and outcome-based STIs to drive desired outcomes is articulated in the company's core philosophies, which are included in this Annual Report.

The company's philosophies also underline FLT's belief in the importance of providing its people with ownership opportunities and the chance "to share in the company's success through outcome-based incentives, profit share, BOS and Employee Share Plans".

Accordingly, ownership opportunities are built into the company's remuneration structures to encourage FLT's people at all levels to behave as long-term stakeholders in the company and to adopt the strategies, disciplines and behaviours that create longer term value.

The graph below sets out the general remuneration structure for Executive KMP, highlighting the remuneration delivery between cash and equity components and spanning different time horizons, encouraging an ownership mindset and aligning the Executives' interests with those of our shareholders.

The graph below sets out the FY26 remuneration mix for the Group CEO and other Executive KMP, calculated using fixed remuneration, the target STI opportunity and the maximum LTI grant value. On this basis, 60 per cent of the package is at-risk:

STI: target opportunity of 50 per cent of fixed remuneration, and a maximum opportunity of 75 per cent of fixed remuneration

LTI: maximum grant value of 100 per cent of fixed remuneration, delivered as Performance Rights which vest subject to the performance and service conditions

During FY26 an individual retention incentive was entered into with James Kavanagh, CEO - Leisure. The arrangement sits outside the standard incentive framework and is additional to his existing remuneration package. Its purpose is to retain James Kavanagh in his current role over the medium to long term and to reward growth in the profitability of the Leisure Division, including the World360 Rewards loyalty program. It provides a single cash payment calculated as the underlying PBT of the Leisure division for the preceding year, less $176 million (FY25 Leisure result), multiplied by 4.8 percent. No amount is payable before 30 June 2030. Between 1 July 2030 and 30 June 2035 James Kavanagh may elect, once only, to crystallise the incentive, which is payable once. Payment is conditional on his continuous employment as an executive KMP in his current role or equivalent, as approved by the Board, and on no termination for serious or inappropriate conduct and remains subject to Board discretion over the PBT determination.

Current And Past Financial Performance

The table below provides summary information on the Group's and shareholder earnings for the five years to 30 June 2026.

1 Underlying profit / (loss) before tax is a non-IFRS measure and is unaudited. Refer to note A1 segment information for reconciliation of underlying to statutory profit / (loss) before tax.

FLIGHT CENTRE TRAVEL GROUP