Helloworld Travel Ltd · ASX:HLO
Helloworld Travel — The Jetset Travelworld Group — FY2013 Earnings Presentation
22 slides from Helloworld Travel's earnings presentation, Aug 27, 2013
Slide 1: 2013 Full Year Results
‘ The Jetset Travelwerld Group 2013 Ful Yeak helloworld
Slide 2: Rob Gurney, CEO
helloworld Rob Gurney CEO @rheloword
Slide 3: 2013 Full Year Review
2013 Full Year Review • Profit before tax increased by 88% to $27.1 million • Adjusted EBITDAI (1) up 8% to $54.6m • Announced launch of new consumer brand, helloworld • Key commercial terms agreed for long term strategic partnership with Orbitz Worldwide Inc for helloworld online • Profit after tax
Slide 4: Our journey
Our journey SEPTEMBER - DECEMBER 2012 We conducted an extensive strategic review of the company. JANUARY - JUNE 2013 We spent the next 6 months on the largest research program in JTG’s history, to validate anew direction for the business. ¢ Wespoketo over 150 agents * We carried out asurvey across t
Slide 5: Our vision
Our vision lL, EUS fa NX @ A compelling new brand, Australia’s foremost A travel service that uniting over 1,000 sites network of passionate, understands customer needs across Australia experienced travel agents better than anyone else ©O\ | Stronger buying power, A comprehensive new Consolidated Wi
Slide 6: Three key elements
Three key elements @ Three strengthened retail models @ Astrong multi-channel offering © New brand and consolidated marketing to buildscale Branded stores Exclusive services and strong economic alignment Associated stores Member of the Group withselective value-added services Affiliated buying group
Slide 7: How does this help JTG to be more successful?
How does this help JTG to be more successful? Drive higher sales through: « Asimpler, more transparent incentive structure for franchisees ¢ Higher rewards for loyalty to preferred suppliers ¢ Vertical integration of our own wholesale brands * Complimented by sales performance measurement tracking A
Slide 8: Supported by a strong multichannel offer
Supported by astron “Tnultichannel offer S PHASE 1 PHASE 2/3 Product ss ne : Web/Mobile MULTICHANNEL *Orbitz have agreed key commercial terms to enter into a long term partnership @reloworid 7]
Slide 9: Proposed implementation timeline
Proposed implementation timeline SEP JAN JUN : AUG Strategic review Extensive consumer research and initial stakeholder engagement Top 150 agents and key supplier engagement Broader agent engagement and B2C launch preparation - Store branding (throughout FY14) -Website development a a 7 22 July - B2
Slide 10: helloworld implementation update
helloworld implementation update • Franchisee and members engagement progressing well. Store re-branding expected to commence in October and will continue throughout FY14 • helloworld branded stores and online platform expected to commence operations in Quarter 2 of FY14, supported by a consumer lau
Slide 11: Outlook
Outlook • Focus for FY14 will be implementation of helloworld and digital launch • FY14 will be impacted by alignment of commercial arrangements, including enhanced incentives paid to franchisees and members in the year of transition and transformation • Business transformation expected to drive imp
Slide 12: The future for our shareholders
The future for our shareholders The transformation will deliver long-term value through: • Creating a highly consumer-focused travel distribution network • Consolidating marketing spend to capture a greater share of voice • Capturing growth through digital distribution 11
Slide 13: Elizabeth Gaines, COO & CFO
helloworld Elizabeth Gaines COO & CFO @rheloword
Slide 14: Full Year Result
Full Year Result FY13 FY12 Change $m $m % Total Transaction Value (TTV) 5,177.4 5,625.8 -8% Revenue 332.8 361.1 -8% Adjusted EBITDAI (1) 54.6 50.5 +8% Profit before tax 27.1 14.4 +88% Profit after tax attributable to members 16.5 5.5 +203% EPS (basic) 3.76 cents 1.24 cents +203% EPS (diluted) 3.71 c
Slide 15: Retail Segment
Retail Segment FY13 FY12 Change $m $m % Total Transaction Value (TTV) 3,766.1 4,023.3 -6% Revenue 183.0 193.8 -6% Operating expenses (115.4) (130.4) -11% Adjusted EBITDAI 67.6 63.4 +7% • Revenue to TTV margin improved from 4.8% to 4.9% • Trading conditions improved in the second half • Average air s
Slide 16: Wholesale Segment
Wholesale Segment FY13 FY12 Change $m $m % Total Transaction Value (TTV) 799.3 858.1 -7% Revenue 104.7 114.9 -9% Operating expenses (90.6) (99.9) -9% Adjusted EBITDAI 14.1 15.1 -7% • Revenue margin decreased from 13.4% to 13.1% reflecting growth in cruise volumes and mix of business between online a
Slide 17: Travel Management Segment
Travel Management Segment FY13 FY12 Change $m $m % Total Transaction Value (TTV) 612.1 744.4 -18% Revenue 39.7 46.3 -14% Operating expenses (42.2) (49.6) -15% Adjusted EBITDAI (2.5) (3.3) +23% • Travel Management TTV impacted by declining trading volumes transacted through Whole of Australian Govern
Slide 18: Balance Sheet
Balance Sheet Jun-13 Jun-12 $m $m Cash 234.9 216.5 Other current assets 116.1 121.5 Intangible assets 426.3 421.2 Other non-current assets 32.4 37.7 Current Liabilities (337.2) (336.5) Non-current Liabilities (31.3) (38.0) Equity 441.2 422.4 17 18
Slide 19: Liquidity and Funding
Liquidity and Funding Jun-13 Jun-12 $m $m Total Facility available 81.8 81.0 Drawn Debt (25.3) (28.7) Multi-option Facilities (including bank guarantees) (10.0) (10.7) Headroom 46.5 41.6 General cash 34.5 13.0 Client cash 200.4 203.5 Total cash 234.9 216.5 • Facilities are non-amortising and repayab
Slide 20: Appendix: Business Profile
Appendix Business Profile 19
Slide 21: Business Profile
Business Profile Jun‐13 Jun‐12 Franchisees, Members and Affiliates: 1,976 2,066 Employees: 2,038 2,369 Countries: 8 8 Oxford UK 10 Employees NORTH AMERICA 78 Employees Los Angeles Hanoi ASIA 96 Employees Siem Reap Phnom Penh Ho Chi Minh City FIJI 203 Employees Fiji Johannesburg Brisb
Slide 22: helloworld
@rhelio LUOrld
The Jetset Travelworld Group — FY2013 Earnings Presentation on 6ix