DEUTSCHE BANK TRAVEL CONFERENCE 23 MARCH 2016 Presentation by Adam Campbell, CFO
PRESENTATION OVERVIEW • Reflection – 20 Years As A Listed Entity • The Future – Strategies & Longer Term Vision • Questions?
20-YEAR GROWTH STORY
FLT’s 20-YEAR GROWTH STORY Celebrating 20 Years as a Public Company 20b 10,000 TTV Businesses 15b 7,500 TTV $billion Businesses 10b 5,000 5b 2,500 - - 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H Student Universe Continued USA BYOJet Commenced Australia’s 500th Corporate Travelplan Avmin operations in the UK, USA Operation Flight Centre expansion Corporate Worldwide Aviation Services opening 5 retail commenced in Kistend Travel Britanic UK brand shop OpenedDubai Liberty through Garber acquired (now Koch (Mexico) shops California (Campus Travel) acquired opened office acquisition in USA acquisition FCm Ireland) Maya Events Acquired SBT Acquired Stage Internet Travel Group travelthere.com Nationwide Backroads India Gapyear Topdeck 1995 2016 Business Travel & Screen Cruiseabout acquired Currency Services Touring Singapore Travel Listed 1 Dec 1995 with Solutions Quickbeds Travel Spirit Buffalo Tours JV existing Operations in (now FCm) AIT Hong Kong China Comfort Group (Global Australia, NZ, Canada JV Product) & South Africa
CONSISTENT GROWTH TTV has exceeded PCP 19 16.5% CAGR in TTV times FLT’S 20-YEAR RECORD $1.34b returned to 16.9% CAGR in PBT shareholders in fully franked dividends
FLT AT ITS IPO 4 leisure brands Flight 95% of Centre 1 corporate sales in Australia & Limited brand NZ 1995 About 1000 employees in 5 countries
FLT TODAY Almost one third of Some 40 Travel retailing, corporate, brands sales generated in the travel experience, non- Americas & Europe travel, youth/student Flight Generating about 50% 6 dedicated Centre of TTV corporate Travel outside brands Group 2016 Australia Now one of the world’s Creating about largest corporate travel About 19,000 1000 new jobs people in managers 14 every year countries
1H16 TTV BY REGION 47% of 1H TTV was generated outside of Australia Australia EMEA Americas Asia NZ
KEYS TO SUCCESS Durability: Long record of achieving consistent growth Adaptability: Financial strength: Ability to adapt to Strong balance changing market sheet with circa conditions & trends $400m in free cash Unique model: Diversity: FLT'S Standard systems, Brands, sectors & incentivised STRENGTHS geographies workforce
LOOKING AHEAD
STRATEGIC JOURNEYS Product Journey Digital Journey Physical Journey People Journey Sales Journey Business Journey
PHYSICAL JOURNEY: MULTI-TEAM SHOPS • 10% of existing shops are either hyper or mega stores • Multi-team stores are more productive, have higher morale and deliver a vastly improved customer experience % Shops % TTV % Profit 100% 75% 50% 25% 0% Stand Alone Multi-T eam
DIGITAL JOURNEY Longer term goal to create Digital Enhanced Centres of digital tools for Excellence FLT’s corporate Broader & brands faster adoption of digital capabilities within P2P Accelerated brands development of online brands
BOOK WITH ME
SIX KEY GROWTH PATHS Travel retailing Travel Non-travel experiences FLT Travel Corporate incubation travel Youth & student
TRAVEL RETAILING CORE LEISURE VOLUME Call Multi-Team Home OTA Community Events Centre Stores Based • High volume, low • 24/7 telephone • Hyperstores • Shopping centres • Associates • Travel Expos, touch, low margin sales & assist Discover Europe, • Megastores • CBD and strip • Teams currently Discover America • flightcentre.com, locations based in Brisbane Student Universe, • 36 events & Sydney BYOJet, Aunt nationally per Betty year in Australia
TRAVEL EXPERIENCE BRANDS Buffalo Tours FLT’s expanding network of tour Back- Top operators & Roads Deck destination Touring management companies Greater control over the travel experience
CORPORATE TRAVEL A Major Global Player Corporate brands generated 35% of 1H turnover (circa 27% 5 FLT now one of the world's largest corporate travel managers years ago) Brand Diversity 6 dedicated brands Targeting specific market segments Ongoing Expansion 4 acquisitions so far this year to Organic growth & acquisitions strengthen FCM & cievents (most recent FCm Holland)
CORPORATE VALUE PROPOSITIONS • Delivered locally by dedicated teams - no off-shoring or call centres Industry-leading service proposition • FCM judged World's Leading TMC for five consecutive years & Best National Travel Management Company at the 2015 National Travel Industry Awards • Six dedicated brands providing specialist services Brand diversity • FCM, Corporate Traveller, Stage & Screen, Campus Travel, cievents & 4 th Dimension • Working with innovative tech partners, including Serko Technology suite • Suite includes Rapidbook- the industry's fastest online booking tool • Exclusive to FLT and delivering tangible benefits to customers Unique product ranges • Ranges include Corporate Traveller's “Smart” suite • Proactively working with customers to better manage spend through cutting edge analytics tools & via Market intel & analysis supplier negotiations Efficiencies • Reduced administrative requirements for clients through streamlined financial processing Value adds • More than a TMC – providing access to additional FLT services to help businesses grow
YOUTH & STUDENT Multi billion dollar global travel sector Under-40s now StudentUniverse.com represent 48% of the acquisition Aussie outbound travel market Developing a strong Leisure shops, websites, network of youth- social networking, touring focussed brands
20-29s: A LARGE TRAVEL SECTOR Age of Outbound Travellers Under-19 20-29 30-39 40-49 50-59 60-69 70+ Source: Australian Bureau of Statistics 2014/15 Short-Term Outbound Departures
TRAVEL INCUBATION Possible investment in Weighing up the travel-related start-ups longer term opportunity to develop incubation hubs in key Opportunity to locations work with next generation innovators globally
NON-TRAVEL • Retailer 99 • FC Bikes Business Health & • Healthwise School Bikes • Wholesaler financial Education • Moneywise planning Advance • FC Travel Traders Academy Profitable businesses with solid future growth potential
QUESTIONS
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