ASX Announcement 19 February 2020 2020 HALF YEAR RESULTS PRESENTATION Attached is a copy of Corporate Travel Management Limited’s 2020 Half Year Results Presentation. Anne Tucker Company Secretary Contact details Media enquiries: contact Tracy Lee, GRACosway: tlee@gracosway.com.au / +61 414 887 129 Investor enquiries: contact Allison Dodd: allison.dodd@travelctm.com / +61 7 3210 335
Date: 19/02/2020 Presenter Name: Jamie Pherous, Managing Director Neale O’Connell, Global CFO 2020 Half Year Results
Disclaimer The information is this presentation contains summary information about the current activities of Corporate Travel Management Limited ACN 131 207 611 (Company) and its subsidiaries. It should be read in conjunction with the Company’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au. The information in this presentation does not constitute personal investment advice. The presentation is not intended to be comprehensive or provide all information required by investors to make an informed decision on any investment in the Company. In preparing this presentation, the Company did not take into account the investment objectives, financial situation and particular needs of any particular investor. This presentation is not a recommendation to acquire the Company’s shares. Further advice should be obtained from a professional investment adviser before taking any action on any information dealt with in the presentation. Those acting upon any information without advice do so entirely at their own risk. This presentation contains certain forward-looking statements, which can be identified by the use of terminology such as ‘may’, ‘will’, ‘should’, ‘expect, ‘intend’, ‘anticipate’, ‘estimate’, ‘continue’, ‘assume’ or ‘forecast’ or comparable terminology. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results and performance to be materially different from any future results or performances implied by such forward-looking statements. Whilst this presentation is based on information from sources which are considered reliable, no representation or warranty, express or implied, is made or given by or on behalf of the Company, any of its directors, or any other person about the accuracy, completeness or fairness of the information or opinions contained in this presentation. To the fullest extent permitted by law, no responsibility or liability is accepted by any of them for that information or those opinions or for any errors, omissions, misstatements (negligent or otherwise) or for any communication written or otherwise, contained or referred to in this presentation. Any opinions expressed reflect the Company’s position at the date of this presentation and are subject to change. Except as required by law or regulation (including the ASX Listing Rules), the Company undertakes no obligation to update any forward-looking statements in this presentation. Page 2
Index. Group financial highlights Page 4 Regional performance Page 6 Group financial summary Page 13 Technology competitive advantage Page 19 FY20 Guidance Page 23 Appendix Page 28 Page 3
Group Financial Highlights Page 4
Group financial highlights. Excluding the impact of AASB 16: • 1H20 Underlying EBITDA flat at $64.5m underscoring the strength and resilience of CTM’s business model in difficult Change on Reported ($AUDm) 1H20 macro conditions ( excludes impact of AASB 16 Leases ) P.C.P • Including AASB 16 Underlying EBITDA of $68.5m TTV (unaudited) 3,310.2 +12% 222.2 +6% Revenue • All regions grew in TTV. Macro events impacting 1H20 (Brexit, HKG demonstrations, trade war) now largely resolved Underlying EBITDA # 64.5 0% NPAT attributable to owners of • Highlights were Europe and Asia segments where results defied 33.7 (13%) CTM macro impacts. ANZ continued its strong run of outperformance to market Underlying NPAT attributable to 39.0 (8%) owners of CTM* • North America declined more than expected due to new client wins on-boarding slower than expected EPS, cents basic 31.0c (14%) Underlying EPS*, cents basic • Underlying NPAT decline of 8% primarily due to software (excluding acquisition 35.7c (9%) amortisation (non-cash item) and higher effective tax rate from amortisation) geographical profit mix 18c 0% Interim Dividend, 50% franked • Half year dividend flat at 18c , 50% franked # Excluding AASB 16 impact of $4.0m and pre-tax one-off acquisition and non-recurring costs of $3.7m (1H19: $1.4m) * Net of non-cash acquisition amortisation of $2.5m (1H19 $2.8m), one-off acquisition and non- recurring costs of $2.8m (1H19: $0.9m) and excludes AASB 16 impact of $0.8m Page 5
Regional Performance Page 6
1H20 Underlying EBITDA bridge summary. AUD$m +$1.0 • Organic growth +$0.9m, being North America -$3.5m, other regions +$4.4m in aggregate +$0.9 • Organic growth achieved through market share gains negated by macro-economic client activity declines $64.6 $64.5 • As flagged, global overheads increase primarily -$2.0 reflects change to Board, finance, insurance costs and legal counsel • Includes $2.1m FX benefit vs p.c.p due to lower AUD from macro environment in 1H20 1H19 Underlying Organic M&A* Global overhead 1H20 Underlying EBITDA EBITDA *M&A represents 3 months (July to September 2019) of Lotus EBITDA Page 7
1H20 regional overview. Australia & New Europe CTM Consolidated Zealand North America Asia Group Period ending Dec-19 Dec-18 Δ % Dec-19 Dec-18 Δ % Dec-19 Dec-18 Δ % Dec-19 Dec-18 Δ % Dec-19 Dec-18 Δ % Dec-19 Dec-18 Δ % REPORTED (AUD) $m $m $m $m $m $m $m $m $m $m $m $m TTV 3,310.2 2,951.5 12% 686.5 649.6 6% 758.5 689.9 10% 1,299.8 1,070.5 21% 565.4 541.5 4% -- -- Revenue 222.2 210.2 6% 61.7 58.3 6% 69.8 70.2 (1%) 43.0 38.3 12% 47.7 43.3 10% 0.0 0.1 0% Adj. EBITDA 64.5 64.6 0% 24.4 22.3 9% 14.4 17.9 (20%) 13.2 12.5 6% 19.4 16.8 15% (6.9) (4.9) 41% EBITDA/revenue margin 29.0% 30.7% CONSTANT CURRENCY* TTV 3,179.7 2,951.5 8% 685.8 649.6 6% 716.2 689.9 4% 1,226.8 1,070.5 15% 550.9 541.5 2% -- -- Revenue 214.9 210.2 2% 61.6 58.3 6% 66.0 70.2 (6%) 41.0 38.3 7% 46.3 43.3 7% 0.0 0.1 0% Adj. EBITDA 62.4 64.6 (3%) 24.4 22.3 9% 13.6 17.9 (24%) 12.5 12.5 0% 18.8 16.8 12% (6.9) (4.9) 41% * Constant currency reflects December 2018 as previously reported. December 2019 represents local currency converted at average foreign currency rates for the half year ended 31 December 2018 Page 8
ANZ. Underlying EBITDA up 9% on the p.c.p.: Δ % 1H20 1H19 • Region continues to outperform through superior client Reported (AUD) $m% $m% proposition • TTV 686.5% 649.6% 6% Improved margin a result of client migration to CTM technology suite Revenue 61.7% 58.3% 6% • Excellent growth given client activity decline experienced in the half Underlying EBITDA 24.4% 22.3% 9% • Expecting continued market share growth enabled by superior EBITDA / Revenue Margin 39.5% 38.3% service proposition and technology platform Constant Currency TTV 685.8% 649.6% 6% Revenue 61.6% 58.3% 6% Underlying EBITDA 24.4% 22.3% 9% Page 9
Asia. Underlying EBITDA up 6% on the p.c.p.: Δ % 1H20 1H19 • An exceptional result in difficult 1H20 conditions (HKG Reported (AUD) $m% $m% demonstrations, US/China trade war) TTV 1,299.8% 1,070.5% 21% • TTV and revenue growth include Lotus 1QFY19 contribution versus the p.c.p. Revenue 43.0% 38.3% 12% • Successful execution of supplier revenue strategy provided support against negative macro-economic shocks Underlying EBITDA 13.2% 12.5% 6% • Underlying business performing well, despite a challenging macro EBITDA / Revenue Margin 30.7% 32.6% economic environment in the half. The EBITDA margin decline a direct result of the macro activity Constant Currency • CTM technology gaining good traction across local and TTV 1,226.8% 1,070.5% 15% regional/global clients, resulting in client wins and improved sales pipelines Revenue 41.0% 38.3% 7% • HKG demonstrations and trade-war impact abated significantly Underlying EBITDA 12.5% 12.5% 0% late in 1H20 Page 10
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