MORGANS CONF E RE NCE PRE SE NT AT ION 12 OCT OBE R 2016 - PowerPoint PPT Presentation

MORGANS CONF E RE NCE PRE SE NT AT ION 12 OCT OBE R 2016

OUR 2022 F L IGHT PAT H Blueprint in place for 2022 & 2035 Focus on improving mid- Targeting long-term growth in 6 key results areas Multi million dollar investments underway to transform IT, enhance diversity & deliver new revenue streams

2022 F L IGHT PAT H: T E CH INVE ST ME NT S Best Product & Pricing Efficient Financial Management Technology Transformation Leading Online/Self Service Single View of Customer – all Capability Channels

2022 F L IGHT PAT H: OPE RAT IONAL INVE ST ME NT S • New & unique • Brands ranges exported & developed & launched deployed New Brand Products expansion People Acquisitions Initiatives • 10 additions • Ownership since FY15 to schemes complement • Workplace organic growth flexibility

2022 F L IGHT PAT H: RE CE NT ACQUISIT IONS FCM Corporate Businesses Mexico Netherlands Malaysia Germany* Sweden* Finland* Norway* Denmark* Online StudentUniverse BYOJet Other Ignite (49%) Travel Tours* (India) Maya Events (cievents Hong Kong) AVMIN * Not yet formally completed

2022 F L IGHT PAT H: KE Y ST RAT E GIE S 1. Make it easy to buy from us and thus lead to sticky and deep customer relationships 2. Famous distinctive brands with expertise 3. Scalable growth

2022 F L IGHT PAT H: KE Y GROWT H SE CT ORS Leisure Travel Medium- In- term destination Non-travel Growth Travel Drivers Experiences Corporate Travel

1) 2022 F L IGHT PAT H: L E ISURE T RAVE L RE T AIL ING Aim to be the world’s best person-to-person retailer Diverse network of mass market & specialist brands to meet customers’ needs across multiple channels Growing distribution channels to dominate the leisure travel market in many countries & in key segments, while also delivering a powerful distribution network for partners (including FLT’s in-destination travel experience network) P2P Index in place to focus growth across the different models to help FLT achieve better scale, greater customer choice & a successful model at all levels across the world

T RAVE L RE T AIL ING … T he P2P inde x CORE LEISURE VOLUME 85-90% of Australian TTV CONTACT FLAGSHIP HOME OTA COMMUNITY EVENTS CENTRES STORES BASED • High volume, low • 24/7 telephone • Hyperstores • Shopping centres • Associates • Travel Expos, touch, low margin sales & assist • Megastores • CBD and strip Discover Europe locations Discover America Higher touch offerings Low touch, low cost offerings

NE W INIT IAT IVE S: AUST RAL IAN L E ISURE Book With Me • Personalised URL for FLT’s travel agents Interest-free Holidays • Offer extended to FLT’s leisure brands through new agreement with Flexi Group Key To The World • Innovate digital travel wallet launched by Travel Money Platinum • Short-term initiative that allows customers to cancel for any reason without incurring additional charges Get Luxe • Voucher-based product range available exclusively from Escape Travel (brought about by Ignite acquisition)

AUST RAL IAN L E ISURE : F AL L ING F ARE S Cheap fares Legacy of driving widespread demand international discounting Average that started international during Q3FY16 fares currently Average domestic fares are relatively flat considerably lower than PCP

F AL L ING F L IGHT PRICE S: E XAMPL E S $1,500 $1,000 Headline Return Fare from Sydney Oct 16 $500 Headline Return Fare from $0 Sydney Oct 15 Phuket London Bangkok LA New (Based on fares advertised on York flightcentre.com.au) The cheapest advertised fares to Phuket & London are currently 38.9% & 25.9% cheaper than last year

ST UDE NT / YOUT H: GROWT H OBJE CT IVE S 1. Be the dominant global retailer of student & under-30s travel products through both the StudentUniverse brand & Student Flights brand initially 2. Be a major provider of student & under-30s travel experiences including touring, accommodation & event-based products specifically targeting youth & students

Highly Cove te d Youth T rave le rs Multiple long-haul trips Educational, leisure & altruistic per year travel purposes 18 – 30 years-old Long-term customer base Explore new destinations High yield Global explorers Flexible dates $200b-a-year industry Future business travelers

2) IN- DE ST INAT ION T RAVE L E XPE RIE NCE S FLT’s growing network of tour operators & ground operations businesses

2) IN- DE ST INAT ION T RAVE L E XPE RIE NCE S Destination Management • Back-Roads • Future • Buffalo growth • Top Deck Tours (JV) opportunity Tour Hotels Operations Manufacturing & delivering products that can be distributed via FLT’s leisure network

DMC: F L T ’S DE ST INAT ION MGMT COMPANY An Early Success Story JV with Vietnam-based Buffalo Tours launched in September 2014 Now operating in 11 Asian countries Day tours, extended touring, transfers, contracting attractions & hotels FIT & GIT - Top Deck ground operator, MICE, cruise- shore excursions Looking to develop a global DMC network Delivering a solid return on FLT’s $US1.5m investment

3) CORPORAT E T RAVE L ✓ TMC ✓ SME ✓ Entertainment / Sport ✓ MICE ✓ Education ✓ Consulting ? Low Cost Corporate By sales, FLT is now one of the world’s top-5 corporate travel managers & aims to be the world leader

CORPORAT E : GROWING GL OBAL L Y Now generating Corporate 14.37% Company- about 33% of turnover Has almost CAGR owned global topped doubled achieved businesses in turnover $AU6.2b since FY11 over past 5 19 countries* (almost 50% during FY16 years in the UK & USA) * Including recent acquisitions that have not yet been settled

CORPORAT E v L E ISURE T URNOVE R F Y16 90.00% 80.00% 70.00% 60.00% 50.00% Leisure & Other 40.00% Corporate 30.00% 20.00% 10.00% 0.00% Australia UK USA Almost half of FLT’s turnover in the USA & UK and almost a quarter in Australia now comes from the company’s corporate brands

CORPORAT E : GL OBAL GROWT H Circa 14.3% CAGR without Turnover ($AUb) any significant 7 acquisitions 6 5 4 Turnover ($AUb) 3 2 1 0 FY11 FY12 FY13 FY14 FY15 FY16

CORPORAT E T RAVE L : GL OBAL SCAL E FLT now has an equity presence in 4 of UK USA the world’s 5 largest corporate markets Company owned businesses in 4 other top-15 countries – India, Canada, Australia & Netherlands Germany China Aim to be in all top-15 countries by 2022 (excluding Russia) – acquisitions/organic growth Japan

T HE T OP- 15: F L T ’S MISSING INGRE DIE NT S South Italy Korea Japan France Brazil Spain Europe Asia/Americas

4) OT HE R BUSINE SSE S ADJACENT TO TRAVEL BUSINESS MODEL

2022 F L IGHT PAT H: ACCE L E RAT ION Objective: To establish the world’s leading travel accelerator, incorporating areas of our DNA & contributing to our future story Long-term plan for incubation Mentoring & hubs in key developing start-ups global locations to accelerate growth & revenue Investing in Established hubs & talent pools Future – growth and plan

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