1H22 Investor Presentation
1 1H22 Results . FY22 Performance Update 24 November 2021 2 Targeting growth as global travel markets reopen . NOTE: Unless otherwise stated, In this document all financials are for Underlying Operations and all comparisons are over the previous corresponding period (pcp) 1) 80% franked (previously announced as 100% franked), based on record date 26th March 2020 2) 8/3/5 = at scale 8% revenue/TTV and 3% costs/TTV to drive 5% EBITDA/TTV 1H22 in review . • Business turning around; cash flow positive for 1H22 - Cash : $446 million - 1H22 cash surplus : $3.5 million/ month - Deferred FY20 interim dividend to be paid (1) • B2B - WebBeds: Profitable since July driven by domestic North American and European markets; 1H22 costs down 31% over pre-Covid levels; on track to be 20% more cost efficient at scale • B2C - Webjet OTA: Profitable in 1Q but 2Q impacted by border closures; bookings picking up from October as domestic and international borders start to reopen • B2C - Online Republic: GoSee rebrand to deliver greater efficiencies and target growth opportunities • Intense focus on global employee engagement and retention • As global travel markets start to reopen, significant growth opportunities in all businesses - WebBeds – increased market opportunity due to B2C channel expansion, targeting previously untapped domestic markets and increasing North America market penetration; “8/3/5” profitability target (2) when back at scale - Webjet OTA – targeting market share growth as consumer preferences continue to shift online; investing in international opportunities - GoSee – one platform for cars and motorhomes to deliver greater efficiencies and growth potential 3 TTV Revenue Expenses 1H22 - Key Metrics . (1) Revenue starting to return, costs materially down . EBITDA 1H20 1H21 1H22 B2C B2B Corporate B2C B2B Corporate Impact of Covid-19 Recovery The comparative unaudited 1H20 period shows the six months ending 30 September 2019 (ie pre-Covid) and 1H21 shows the six months ending 30 September 2020 4 WebBeds . B2B Division Update Digital Provision of Hotel Rooms to Global Partners 5 Taking advantage of changing market dynamics . The world has changed, and our opportunity has increased . Our market opportunity has increased - making WebBeds more relevant than ever; • Domestic markets are the first to open up • B2C channels are seeking greater access to B2B content • API connections are increasingly important as customers want easy access to significant content • Hotels need global reach in order to fill rooms Competition has decreased as financial pressures impact the industry WebBeds is taking advantage of opportunities to deliver significant revenue growth; • Expanded domestic offering in all regions • Increased penetration into the large North American B2B market • Increased and optimised API connections for key B2C clients • Our financial strength makes us a trusted partner for hotel suppliers • Retained our global footprint, hotel supply relationships and global customer network and are ready as intra-regional and international markets start to reopen When markets rebound, they are coming back stronger; • Nov-21 TTV tracking at 63% and bookings tracking at 69% of pre-Covid levels – yet many larger markets are yet to open 6 Targeting greater share of a larger market opportunity . Strategic objective: To become the #1 global B2B provider . B2B market opportunity now greater than $70Bn TTV Transformation initiatives • Diversifying into previously untapped markets • Increasing North America market penetration • B2C channel expansion • Streamlined technology • Enhancing Rezchain efficiencies • Leveraging data analytics • Simplifying processes across the business • On track to be 20% more cost efficient at scale Increased profitability target (1) 1) 8/4/4 = at scale 8% revenue/TTV and 4% costs/TTV to drive 4% EBITDA/TTV 8/3/5 = at scale 8% revenue/TTV and 3% costs/TTV to drive 5% EBITDA/TTV 7 1H22 Summary - WebBeds Global . Profitable for 2Q22. Costs down 31% over pre-Covid . (1) WebBeds 1H22 1H21 1H20 (Pre-Covid) Bookings ('000s) 1,086 247 ? 340% 2,343 ? 54% Average Booking Value $401 $292 ? 37% $649 ? 38% TTV $436m $72m ? 504% $1,521m ? 71% Revenue $32.6m ($2.8m) ? nm $135.8m ? 76% Expenses $43.0m $57.3m ? 25% $62.7m ? 31% EBITDA ($10.4m) ($60.1m) ? 83% $73.1m ? 114% TTV / Revenue Margin 7.5% n/a ? nm 8.9% ? 146bps EBITDA Margin n/a n/a ? nm 53.8% ? nm 6 months ending 30-September Change Change • Bookings and TTV increasing as markets start to open • 1H22 ABV reflects primarily domestic bookings; ABV continuing to increase as more international markets open • Costs down 31% on comparable period pre-Covid; Transformation initiatives delivering sustainable cost savings; on track to be 20% more cost efficient at scale as volumes return to pre-Covid levels • TTV margins continue to improve (2H CY20 (1) : 6.1%; Q1 CY21 (2) : 7.3%) - expected to return to pre-Covid levels once border restrictions ease and more international markets open • New organisational structure since May 2021 ? Dedicated CEO for the WebBeds business ? 4 commercial regions – Europe, MEA, Asia-Pacific and now also Americas; Americas expected to offer strong growth opportunities and be a significantly larger business post-Covid ? Umrah Holidays International focused on capturing religious tourism opportunities The comparative unaudited 1H20 period shows the six months ending 30 September 2019 (ie pre-Covid) and 1H21 shows the six months ending 30 September 2020 1) 2H CY20 means the period Jul-Dec 2020; 2) Q1 CY21 means the period Jan-Mar 2021 8 Profitable since July . Post-Covid strategy is delivering 3Q22 on track to be better than 2Q22 . • WebBeds has been profitable since July driven by domestic sales in North America and Europe • Recognising domestic markets would be first to open, WebBeds pivoted contracting and sales efforts to domestic travel • Increased North American penetration to better target the c.$20Bn TTV B2B market opportunity • Seeing new organic business in all regions • When markets rebound, they are coming back stronger - Nov-21 TTV tracking at 63% of pre-Covid levels, yet many larger markets are yet to open • 3Q22 on track to be better than 2Q22 as more markets open - on track to deliver higher ABV, TTV margins and profitability • Acceleration expected to continue – Dec-21 forward TTV (3) run rate exceeds Nov-21 1) Shows 2021 Bookings/TTV (based on EUR functional currency) as % of comparable period in 2019 – ie April 2021 vs April 2019 2) Estimate for November 2021 based on extrapolation of actuals up to and including 21 November 2021 3) Booked TTV but not yet travelled Bookings (% of Pre-Covid (1) ) TTV (% of Pre-Covid (1) ) Bookings increasing as more markets start to open ; TTV reflects lower ABV due primarily to domestic bookings (2) (2) 9 Initiatives driving return to profitability . 1H22 recovery driven by new business . Pivoted to domestic travel while waiting for international markets to open • Global travel volume has not yet returned to pre-pandemic levels but the volume that has returned is predominately domestic • Domestic sales as % of total WebBeds sales have grown significantly – and as international volume starts to return, domestic volumes continue to grow Domestic sales as % total sales Post-Covid TTV Apr-Sept 2021 Pre-Covid TTV Apr-Sept 2019 International vs Domestic sales – 1H22 Number of directly contracted hotels Oct-21 vs Oct-19 Americas +10% Europe +1% APAC +11% MEA +9% Targeting new organic business • While waiting for markets to reopen, regions have targeted new business (i.e. business that did not exist pre-Covid ) including: ? New clients ? Existing clients booking to new destinations ? New direct contracts for the domestic market • All regions have increased their directly contracted hotel inventory , reflecting the importance of WebBeds as a distribution channel supporting travel industry recovery 10 Significant growth potential as more markets recover . Dec-21 forward TTV (1) on track to be >70% of pre- Covid volumes yet many key markets are still to recover . Many key markets are yet to recover • Seeing bifurcation as some markets reopen while others remain effectively closed to international travel • Some markets are already outperforming pre-Covid levels - North America, Russia, and key OTA customers (Europe and APAC) are all tracking >100% pre-Covid TTV levels - Key destinations outperforming pre-Covid levels include Dubai, Las Vegas and Majorca • Number of key markets are less than 25% of pre- Covid TTV levels including South Korea, Japan, Hong Kong and China (international outbound) - Some large Asia-Pacific destinations are tracking at less than 10% pre-Covid TTV levels – including Singapore, Bali, Bangkok • WebBeds is well placed to deliver TTV growth as more markets reopen When international markets fully reopen, in addition to our existing global footprint, hotel supply relationships and global customer network; our transformation strategy is delivering: • new domestic hotels, • new domestic customers, • new OTA customers, • a significantly expanded North American presence , • streamlined technology offering, • a significantly lower cost base. 1) Booked TTV but not yet travelled 11 Webjet OTA . B2C Division Update Australia & New Zealand 12 1H22 Summary - Webjet OTA . Return to profitability driven by domestic leisure markets in 1Q22 . • 1H22 EBITDA driven by domestic travel in 1Q22 - Profitability highly correlated to domestic border openings; lockdowns and border closures impacted 2Q22 - Profitable as soon as key borders open; able to leverage highly scalable cost base and scale key costs in line with demand - Increase in 1H22 expenses over 1H21 relate to higher volume-based costs tied to TTV (ie transactions costs) during the period • 1H22 TTV margins reflect closure of Exclusives business and loss of overrides/commission earned on international bookings; expected to normalise around 9-10% • Brand strength continues to drive share ; significant bookings growth with targeted marketing spend as markets open; marketing costs expected to be less than 2% of TTV going forward • As markets open, bookings rebound – bookings increasing as lockdowns lift and international travel begins to open up; returned to profitability in October Webjet OTA 1H22 1H21 1H20 (Pre-Covid) Bookings ('000s) 296 77 ? 284% 809 ? 63% Average Booking Value $620 $571 ? 9% $886 ? 30% TTV $184m $44m ? 317% $717m ? 74% Revenue $18.2m ($2.6m) ? 802% $76.5m ? 76% Expenses $14.5m $9.3m ? 56% $43.1m ? 66% EBITDA $3.6m ($11.9m) ? 131% $33.4m ? 89% TTV / Revenue Margin 9.9% n/a ? nm 10.7% ? 78bps EBITDA Margin 20.1% n/a ? nm 43.6% ? nm 6 months ending 30-September Change Change The comparative unaudited 1H20 period shows the six months ending 30 September 2019 (ie pre-Covid) and 1H21 shows the six months ending 30 September 2020 13 Domestic border openings drive return to profitability . Uniquely placed to benefit as borders open. Significant international opportunity . • Profitability highly correlated to domestic border openings - 2Q impacted by extended NSW and VIC lockdowns; bookings increase as lockdowns start to lift • Returned to profitability in October ; will be profitable in November • Domestic bookings expected to return to pre-Covid levels in CY22 as State borders re- open • Significant international opportunity as international borders start to re-open • Well placed to benefit as domestic and international markets reopen ? Brand strength as #1 OTA ? Predominantly serves the leisure market ? Structural shift to online continues to accelerate 1) Shows 2021 bookings as % of comparable period in 2019 – ie April 2021 vs April 2019 2) Estimate for November 2021 based on extrapolation of actuals up to and including 21 November 2021 Bookings since June impacted by border closures; picking up from September reflecting greater clarity on border re-opening (2) (2) Bookings (% of Pre-Covid (1) ) TTV (% of Pre-Covid (1) ) 14 Targeting significant market share growth . 5.6% 11.3% Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 $ 87.4 M EBITDA Up 71% Webjet OTA bookings 1.5x the market (1) Outperforming market by 1.5x . 1) Webjet OTA (domestic bookings) versus the Market (IATA total Australia domestic RPKs) 2) GDS bookings do not include Low Cost Carriers Webjet average market share across all GDS bookings – Travel Agency Offline & Online (2) 50% + of the entire OTA flights market in Australia and New Zealand 11.3% of all Global Distribution System (GDS) bookings in Australia Rolling 12 month average market share LTM average domestic bookings performance to Sep - 21 Opportunity to significantly grow market share • Structural shift to online continues to accelerate • Unique “ mix and match ” offering • Broadest range of payment options for OTAs in Australia • Strong focus on servicing the leisure market • Superior technology offering • Brand strength as #1 OTA – awarded Australia’s Leading OTA and Oceania’s Leading OTA (2021 World Travel Awards) • Award winning innovation and customer service – winner of Business Sustainability and Business Innovation (Australian Business Awards 2021) • Streamlining ERP to improve efficiencies • Improved use of data analytics • Investing in international opportunities 15 Innovation . 16 Acquisition of Trip Ninja . Investing in the international opportunity, Trip Ninja . • In November 2021, we agreed to acquire 100% of Canadian travel technology company Trip Ninja • Trip Ninja has developed several key products for traditional or online travel agencies to automate the highly manual process of selling complex international itineraries • Trip Ninja products will be integrated into Webjet OTA, starting with FareStructure and Flextrip , to deliver customers the best priced itineraries for their complex, multi-stop itineraries • Pricing comparisons using FareStructure and Flextrip have shown material price reductions compared to existing pricing and will provide genuine price advantage for customers • The Dynamic Pricing and Virtual Interlining products currently under development will be integrated in due course • Trip Ninja products will also be sold to other travel industry participants globally • FareStructure – a tool that will automatically mix and match fares for multi-destination itineraries by automating a process called “split ticketing” and using machine learning • FlexTrip – if a traveller is flexible in the order they visit cities, this module will instantly re- order a multi-city itinerary to achieve the best pricing • Dynamic Pricing (prototype) – automatically maximises mark ups on the best priced combination so the agent achieves much higher margins • Virtual Interlining (prototype) – combining non-aligned carriers in a point-to-point fare via a shared mid-point Trip Ninja Products Integrating Trip Ninja products into Webjet OTA provides the ability to offer unique, highly competitive content to propel additional international sales 17 • In March 2021, Webjet Limited made a 25% investment in LockTrip Holdings UK (LockTrip), with a further option to increase that to 51% • LockTrip provides a B2C hotel marketplace, underpinned by a blockchain economy powered by a utility token, LOC • LockTrip also provides its own decentralised public blockchain, Hydra chain, powered by the HYDRA coin • LockTrip has developed a blockchain that enables genuine commercial applications at scale • Webjet Limited’s interest in LockTrip is three-fold : - Accelerated development of our blockchain expertise - Integration of LockTrip into Webjet OTA for its B2C hotel offering - Potential migration of the Rezchain application onto the Hydra chain, as Hydra solves many of the issues that prevent the wholesale adoption of blockchain as an underlying platform • Work has begun to integrate LockTrip into the Webjet OTA business Investment: LockTrip . Investment in an Open Source Blockchain . Opportunity to invest further in attractive technology assets to support growth opportunities 18 GoSee . (formerly Online Republic) B2C Division Update Global Marketplace 19 1H22 Summary - GoSee . Profitability driven by border openings Costs down 30% over pre-Covid levels . • 1H22 Bookings and TTV improved as Australian/New Zealand borders opened in 1Q; lockdowns and closure of trans-Tasman bubble impacted 2Q; profitability driven by Australian and trans-Tasman border openings - Motorhomes - continues to be impacted by lack of international tourism into New Zealand - Cars - global shortage of hire cars impacting inventory in key markets • Costs down 30% compared to pre-Covid levels • TTV margins expected to normalise around 9-10% as refunds start to wind back • GoSee rebrand launched in October – aimed at transforming the business to deliver greater efficiencies, improved customer experience and target global growth opportunities GoSee 1H22 1H21 1H20 (Pre-Covid) Bookings ('000s) 66 21 ? 215% 255 ? 74% Average Booking Value $659 n/a ? nm $591 ? 11% TTV $43m ($22m) ? 294% $151m ? 71% Revenue $4.6m ($0.5m) ? nm $15.3m ? 70% Expenses $6.2m $6.2m ? 1% $8.9m ? 30% EBITDA ($1.6m) ($6.6m) ? 75% $6.4m ? 125% TTV / Revenue Margin 10.6% n/a ? nm 10.2% ? nm EBITDA Margin n/a n/a ? nm 41.9% ? nm 6 months ending 30-September Change Change The comparative unaudited 1H20 period shows the six months ending 30 September 2019 (i.e. pre-Covid) and 1H21 shows the six months ending 30 September 2020 20 Rebrand launched October 2021 . One core brand across cars and motorhomes opportunity to transform the business . Improving underlying performance • One core brand providing all cars and motorhome content on one easy-to-use website • More scalable website development investment • Centralised marketing investment , improving return on advertising spend • Improved organic search rankings and reduced reliance on generic pay-per-click (PPC) • Improved commercial negotiating position with supplier and affiliate partners • Clear employer brand position to attract and retain top talent Improving the customer experience • Greater choice as well as enhanced search and compare functionality ? Modern user experience ? Mobile first design ? Upgraded technology ? Faster site experience All cars and motorhome content on one easy-to-use website Global growth opportunities • Simpler proposition to scale in new markets • Easier cross-sell between car and motorhome products • Seamless product extension opportunities under one brand 21 All content on one easy-to-use website . Greater choice and enhanced functionality . 22 Our Mission: Improved customer experience . Customer first mission . More choice - with car and motorhome rental now under one roof, our customers will have multiple vehicle options on offer. Great value rental rates and exclusive special deals from yourselves, our valued partners.? Easy to use website with enhanced search and compare functionality.? An increased focus on helping customers find the right fit vehicle for their needs.? Environmentally responsible options showcased.? 24/7 customer support from our friendly Customer Support Team.? Brilliant travel tips and expert advice. Empower travellers by offering unrivalled choice and an effortless experience , backed by people who care . 23 1H22 Financial Summary . Group Update 24 1H22 - Financial Summary . 1) Underlying Operations – excludes non-operating expenses (refer to slide 27 for detail) and Share Based Payment (SBP) expenses. 1H21 comparative restated to exclude SBP expenses 2) Excludes interest income 3) Acquisition Amortisation - includes charges relating to amortisation of intangibles acquired through acquisition 1H22 reflects new March year end. Statutory EBITDA result includes $19.7 million non-cash items . 1H21 Webjet Group 1H22 6 months to Sep-21 1H21 6 months to Dec-20 1H22 6 months to Sep-21 1H21 6 months to Dec-20 TTV $663m $267m $663m $267m Revenue (2) $55.4m $22.6m $55.4m $22.6m Operating expenses ($71.2m) ($62.7m) ($71.2m) ($62.7m) Non-operating expenses ($17.4m) ($72.3m) - - Share based payment expenses ($5.0m) ($2.0m) - - EBITDA ($38.2m) ($114.4m) ($15.9m) ($40.1m) Depreciation and amortisation ($11.9m) ($11.8m) ($11.9m) ($11.8m) Acquisition amorisation (AA) (3) ($9.6m) ($10.2m) ($9.6m) ($10.2m) Net interest costs ($13.6m) ($8.7m) ($13.6m) ($8.7m) Income tax benefit $11.5m $12.9m $7.1m $12.3m NPAT (before AA) ($52.2m) ($122.0m) ($34.2m) ($48.4m) NPAT ($61.8m) ($132.2m) ($43.8m) ($58.5m) EPS (before AA) (13.8 cents) (36.0 cents) (9.1 cents) (14.3 cents) EPS (16.4 cents) (39.0 cents) (11.6 cents) (17.3 cents) Effective Tax Rate (excl AA) 18.1% 9.6% 17.3% 20.2% Effective Tax Rate 15.7% 8.9% 14.0% 17.3% Statutory Result Underlying Operations (1) 25 1H22 - Strong cash position offers significant flexibility . Cash flow positive. Deferred dividend to be paid . Positive 1H22 average monthly cash flow • Positive working capital delivering cash surplus $3.5 million/ month (FY21: $5.5 million/month average cash burn) • Cash increased to $446 million after taking into account investment in LockTrip/DOTW earn out and FX gains • Deferred interim FY20 dividend to be paid on 23 December 2021 (9 cent dividend 80% (2) franked based on holders at record date of 26 March 2020) • Strong cash position provides significant liquidity and runway, as well as ability to pursue attractive growth opportunities 1) Proforma cash based on FY21 investor presentation page 6 ($261m closing cash plus $170m net proceeds from A$250m Convertible Note) 2) Dividend was initially announced as 100% franked on 19 February 2020 Avg cash surplus: $3.5m per month $431m $446m Proforma (1) 31 Mar 2021 Cash and cash equivalents 30 Sep 2021 Cash and cash equivalents Foreign Currency Translation OPEX/CAPEX/ Interest/Tax (including revenue and govt subsidies) Finance and Investing Activities ($34m) +$6m ($12m) +$55m Working Capital Movement 26 1H22 - Corporate costs . Corporate Division. The comparative unaudited 1H20 period shows the six months ending 30 September 2019 (ie pre-Covid) and 1H21 shows the six months ending 30 September 2020 1) B2C is Webjet OTA and GoSee combined 2) 1H20 Corporate costs restated to exclude Share Based Payment (SBP) expenses • Corporate costs up 13% over pcp - 1H21 included salary reductions for Board, KMP and corporate team and Managing Director (down 20% and 60% respectively). Board, KMP and corporate team returned to 100% salaries in October 2020 and Managing Director in January 2021 - 1H22 reflects salary costs returning to 100%, as well as material increases in D&O insurance EBITDA (A$) 1H22 1H21 1H20 (Pre-Covid) B2B EBITDA ($10.4m) ($60.1m) ? 83% $73.1m ? 114% B2C EBITDA (1) $2.0m ($18.5m) ? 111% $39.8m ? 95% Corporate costs (2) ($7.5m) ($6.6m) ? 13% ($8.3m) ? 10% Total EBITDA ($15.9m) ($85.2m) ? 81% $104.7m ? 115% 6 months ending 30-September Change Change 27 1H22 - Summary of non-operating expenses . Key items include Online Republic rebrand & ERP implementation . A$m 1H22 Non-cash items • Impairment of Online Republic brand 14.5 • Fair value loss on embedded derivatives (i.e. Convertible Note) 0.2 Total non-cash items 14.7 Cash items • Restructure costs 0.8 • Government wage subsidies received (1.8) • ERP system written off at cost 3.7 Total cash items 2.7 Total non-operating expenses included in EBITDA 17.4 Key items: • Rebrand of Online Republic to GoSee driving acceleration of brand write-off • ERP system write off consistent with FY21 being 100% expensed 28 1H22 - Balance Sheet . Balance Sheet further strengthened by B2B working capital recovery and new Convertible Note . 1) Excludes client funds Cash and Equivalents • Cash includes $2.7 million client funds • Cash increase primarily due to $170 million net proceeds from April 2021 $250 million Convertible Note issuance (less repayment of $43 million term debt and $33 million incentive fee to convert existing €100 million Note to equity) coupled with positive cash from operations. Trade Debtors • Growth due to TTV growth in B2B and managed in-line with enhanced credit policy Trade and Other Payables • Increase in line with TTV growth in B2B with payment terms consistent with pre-Covid period • Trade payables $194.8 million with $28 million accrued expenses and other payables Other Liabilities • Decrease during the period due to repayment of €100 million Convertible Note which had an embedded derivative value of $93.3 million as at 31 March 2021 Borrowings • Closing balance represents $86 million of term debt and debt component post bifurcation of the new $250 million Convertible Note A$m Sep-21 Mar-21 Change Cash & cash equivalents 446.1 261.0 185.0 Trade receivables & Other assets 97.9 43.4 54.5 Non-current assets 893.5 875.6 18.0 Tota l Asse ts 1,437.5 1,180.0 257.5 Trade & Other payables 222.8 109.4 113.4 Other current liabilities 60.8 161.6 (100.9) Borrowings 303.3 254.0 49.3 Other non-current liabilities 42.8 47.9 (5.1) Total Liabilities 629.7 572.9 56.8 Total Equity 807.8 607.1 200.7 Net debt (1) (140.1) 1.6 (141.7) Current ratio 1.9 1.1 +0.8 29 1H22 - Cash Flow . Recovery delivering positive working capital . Working Capital • Recovery in B2B TTV driving positive working capital benefit • 1H22 cash surplus of $3.5 million/ month; significant turnaround from cash burn of $6.9 million/ month in 2H21 (3 months ending 31 March 2021) Investing • Represents 25% minority interest in LockTrip and final earn out adjustment on DOTW Financing • Net proceeds from $250 million Convertible Note coupled with exercise of options for the Managing Director 1H22 1H21 6 months to Sep-21 6 months to Dec-20 Statutory EBITDA (38.2) (114.4) Change in working capital and non-cash items 74.7 100.0 Income tax paid (0.1) - Net Interest paid (3.6) (2.6) Cash Flow from Operating Activities 32.8 (17.0) Capital Expenditure (9.6) (9.9) (Acquisitions) / Disposals (9.9) - Dividends received 0.1 0.1 Cash Flow from Investing Activities (19.4) (9.8) New Equity / (Raising costs paid) 4.6 (1.9) Net proceeds/(repayment) of borrowings 163.0 106.5 Lease principal repayments (1.8) (2.3) Cash Flow from Financing Activities 165.8 102.3 FX movement on cash balances 5.9 (2.1) Net increase / (decrease) in cash 185.1 73.4 A$m 30 1H22 - CAPEX Summary . Continue to scrutinise CAPEX spend and leverage benefits from B2B platform rationalisation . • 1H22 CAPEX shows spend for 6 months to Sep-21; 1H21 shows 6 months to Dec-20 • FY22 CAPEX expected to be c.$22 million excluding ERP (down from pre-Covid CAPEX of $32.7 million in FY19) • Accounting for new ERP Implementation – Per FY21 results presentation, a review was undertaken to determine the impact on ERP implementation costs following clarification by IFRIC in late March 2021 on the application of IAS38 (accounting for SAAS implementations). The final accounting policy adopted is to expense 100% of the one-off implementation costs. This position is consistent with the preliminary accounting policy in FY21. FY22 forecast spend c. $9 million. 31 FY22 Outlook . Group update 32 • Our geographic diversification has become a core strength as different regions recover at different times • Our market opportunity has increased in all businesses – serving new market segments and benefiting from the structural shift to online - WebBeds - become the global #1 B2B provider - Webjet OTA - increase market share leadership - GoSee - transformational opportunity • Our cost base is on track to be 20% lower at scale • We have significant cash reserves and runway • We are focused on attracting and retaining global human capital to support our growth initiatives Webjet Limited will capitalise on travel recovery . Some travel markets are open and demand has snapped back . 33 We are seeing rapid returns to high-booking volumes as markets open • WebBeds – 3Q22 TTV on track to be higher than 2Q22 despite traditional low seasonality - North America already tracking ahead of pre-Covid TTV volumes - Europe, MEA and APAC are in recovery mode and, subject to borders remaining open, are on track to return to pre-Covid TTV volumes in 2H23 • Webjet OTA – seeing bookings improve as domestic and international borders start to reopen • GoSee – opening of Australian domestic and trans-Tasman borders will drive return to profitability Markets are recovering at different rates • Where markets are open, we are seeing significant pent-up demand materialising • Where there is uncertainty, consumer behaviour is cautious • A number of larger markets are effectively still closed Group 3Q22 trading is currently tracking ahead of 2Q22 FY22 - Outlook . Group 3Q trading currently tracking ahead of 2Q22 . 34 While there remains short term uncertainty with pockets of new outbreaks around the world, we believe ongoing vaccinations, boosters and anti-viral treatments will stabilise the impact of Covid-19 within the next 6-12 months. Based on our current trajectory of outperforming the market in our WebBeds and Webjet OTA businesses, we believe we will be back at pre- Covid booking volumes by 2H23 (Oct-22 to Mar-23). Beyond FY22 . 35 Thank you . 36 Appendix . 1H22 Results 37 IATA Industry Forecast . Source: IATA Economics Airline Industry Financial Forecast update, October 2021. Click Here 38 WebBeds . Additional information 39 1H22 Summary - By Region . Additional information. Breakdown by Region . The comparative unaudited 1H20 period shows the six months ending 30 September 2019 (ie pre-Covid) and 1H21 shows the six months ending 30 September 2020 1) Historical AMEA region adjusted for split out of Americas APAC 1H22 1H21 1H20 (Pre-Covid) FY21 FY20 Bookings ('000s) 445 114 ? 290% 700 ? 36% 390 1,384 Average Booking Value $248 $182 ? 36% $446 ? 44% $190 $423 TTV $110m $21m ? 431% $312m ? 65% $74m $586m EBITDA ($6.6m) ($18.7m) ? 64% $11.6m ? 157% ($29.8m) $13.3m Europe 1H22 1H21 1H20 (Pre-Covid) FY21 FY20 Bookings ('000s) 241 51 ? 368% 935 ? 74% 97 1,521 Average Booking Value $655 $673 ? 3% $787 ? 17% $693 $735 TTV $158m $35m ? 355% $736m ? 79% $68m $1,118m EBITDA ($1.1m) ($20.3m) ? 95% $38.2m ? 103% ($31.1m) $50.6m MEA (1) 1H22 1H21 1H20 (Pre-Covid) FY21 FY20 Bookings ('000s) 114 13 ? 800% 431 ? 73% 68 741 Average Booking Value $653 $364 ? 79% $808 ? 19% $450 $771 TTV $75m $5m ? nm $348m ? 79% $31m $572m EBITDA ($1.9m) ($13.0m) ? 86% $19.0m ? 110% ($17.2m) $25.2m Americas 1H22 1H21 1H20 (Pre-Covid) FY21 FY20 Bookings ('000s) 286 69 ? 318% 275 ? 4% 193 550 Average Booking Value $324 $176 ? 85% $449 ? 28% $181 $412 TTV $93m $12m ? 671% $124m ? 25% $35m $227m EBITDA ($0.8m) ($7.9m) ? 90% $4.5m ? 118% ($11.2m) $4.3m Umrah Holidays 1H22 1H21 1H20 (Pre-Covid) FY21 FY20 Bookings ('000s) 0 0 ? 100% 1 ? 100% 0 14 Average Booking Value n/a $695 ? nm $689 ? nm $689 $408 TTV $0m $0m ? 100% $1m ? 100% $0m $6m EBITDA $0.0m ($0.3m) ? 100% ($0.0m) ? 100% ($0.8m) ($0.1m) 12 months ending 31-March Change Change Change Change Change Change Change Change 6 months ending 30-September Change Change
More from Webjet Limited
Join Listcorp to create a personalised news feed, follow your favourite companies, save useful news, and more.