Dec 2005 Half Year ResultsInvestors Presentation
1st March 2006
Presentation contains no budgets or forecasts – please see full disclaimer
Disclaimer
The views expressed in this presentation contain information from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information.
Forward looking information in this presentation has been provided in the form of a number of ‘what if’ scenarios. These scenarios have been prepared on the basis of assumptions that may prove to be incorrect. Nothing in this document should be construed as a forecast or a representation by Webjet Limited (WEB) or any other person as to future performance.
In particular:
• the presentation includes no forecasts or budgets• the travel industry is prone to being materially effected by factors such as terrorism, SARS and high oil prices• that market conditions as they currently exist will continue substantially unchanged over the next 18 months• that the Australian consumer acceptance of the internet as a vehicle for booking travel will continue to exhibit a level of growth similar to the experience of the last 12 months• that there will be no material disruption due to strike or scheduled derangement domestically within the Australian travel market• that media advertising rates remain similar to those prevailing over the last 12 months• that current ACCC legislation continues largely unchanged insofar as it relates to retail pricing and competitive behavior
This presentation should not be relied upon as a recommendation or forecast by Webjet. Nothing in this release should be construed as either an offer to sell, or a solicitation of an offer to but or sell shares in any jurisdiction.
Presentation contains no budgets or forecasts – please see full disclaimer
Overseas Trends - Lagged
% Travel Booked Online
0%
10%
20%
30%
40%
2001 2002 2003 2004 2005 2006E
2 Year Lag
Source – Phocuswright, WEB
USA
Aust
Presentation contains no budgets or forecasts – please see full disclaimer
Online Agents – Macro TrendsFY04 FY05 FY06 FY07
Air Market - $B* 12.0B 12.5B 13.0B 13.5B
% Booking Travel Online 15% 20% 26% 30%
Online Market - $M 1800 2500 3380 4050
Online Agents
% Market Share
10% 15% 20% 25%
Online Airlines
% Market Share
90% 85% 80% 75%
Online Agents
Market Size - $M
180 375 676 1013
Online Agents
% Total Air Market
1.5% 3.0% 5.2% 7.5%
Source – IATA BSP agents 5.8B for calendar 2005 WEB estimates
Presentation contains no budgets or forecasts – please see full disclaimer
Online Agency Market Size
Source – IATA BSP agents 5.8B for calendar 2005 WEB estimates
Online Travel Agency Market - $M Change PA
180
195
301
337
0
400
800
1200
2004 2005 2006E 2007E
$1.0B Online Agency Air Market by 2007
Presentation contains no budgets or forecasts – please see full disclaimer
Capabilities
Booking
Capability
Low
MarketingLow High
High
TVL
WEB
Best Flts
FLTZuji
Presentation contains no budgets or forecasts – please see full disclaimer
Visitors v Online Bookings
Company Visitors
% Share
Online TTV
(Est. FY06)
Flight Centre 30% 100M
Webjet 26% 160M
Travel.com.au 6% 30M
Zuji 6% 30M
Best Flights 7% 0M
Source – Hitwise, Alexa averaged for market share WEB estimates, FLT, TVL and TNS presentations/releases Excludes Lastminute.com.au as primary hotel focus Online bookings on own technology not pass throughs
Webjet Largest by SalesSecond by Internet Visitors
Presentation contains no budgets or forecasts – please see full disclaimer
Webjet 3% of the Agency Market
Turnover WEB as % of BSP
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05
Source – IATA BSP, WEB
And 7% of the Agency MarketIf Measured by Transactions
Presentation contains no budgets or forecasts – please see full disclaimer
Why go to Webjet?Full Choice of
Flight, Time and Price Options
Seat Price Guarantee –
Seat held for 30 Minutes
Book one Airline One Way and Another the
Return
High StandardOf Customer
Service
Book Domestic, International
Flights, Cars & Hotels together
Presentation contains no budgets or forecasts – please see full disclaimer
Because the TSA works …….
How would rate our Booking System?
0.0%
25.0%
50.0%
75.0%
100.0%
Jul 05 Nov 05
Excl - Good
Avg - Poor
89% Rate Good toExcellent
Presentation contains no budgets or forecasts – please see full disclaimer
…… most customers don’t contact
Customer Service Ratings
0%
25%
50%
75%
100%
Phone Webchat Email
Avg - Poor
Excl - Good
Have'nt Used
67% on Average Don’t Need to make contact
Presentation contains no budgets or forecasts – please see full disclaimer
Performance Highlights
H1 2006 H1 2005 %
TTV 76.9M 29.6M +160%
Revenue 4.7M 2.0M +136%
Expenses -3.2M -1.9M +64%
NPBT 1.5M 0.1M +2184%
EPS 0.41c 0.04c +925%
Presentation contains no budgets or forecasts – please see full disclaimer
TTV (Sales)
Webjet TTV $M
0
10
20
30
40
50
60
70
80
90
H1 H2 H1 H2 H1
2004 2004 2005 2005 2006
First Half FY06 is same TTV as whole of FY05
Presentation contains no budgets or forecasts – please see full disclaimer
Profit Margin Improves to 2.0%
Comparison % Cost and Profit Margin
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
2005 2006 H1
Profit %
Cost %
2.0%
1.8%
In a period when QantasDomestic comm. droppedFrom 5% to 1%
Presentation contains no budgets or forecasts – please see full disclaimer
Exp % Drops as Marketing Rises
Expenses as % TTV
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
H1 H2 H1
2005 2005 2006
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
Mktg %
Tot Exp %
Presentation contains no budgets or forecasts – please see full disclaimer
TTV per Employee Benchmark
Effeciency - TTV per Employee $M
0.0
2.0
4.0
6.0
WEB FLT TNS
2005
H1 2006
Webjet’s efficiency improvesWith scale
Presentation contains no budgets or forecasts – please see full disclaimer
Balance Sheet
All $M 2004 2005 H1 2006
Cash 0.8 3.5 5.6
Total Assets 3.0 8.4 10.1
Total Liabilities -1.8 -1.4 -1.6
Shareholders Equity 1.2 7.0 8.5
Net Current Assets -0.4 +3.7 +5.8
Presentation contains no budgets or forecasts – please see full disclaimer
$5.6M at Bank at 31 Dec 2005
Webjet Cash Flow
0
2000
4000
6000
H1 H2 H1
2005 2005 2006
Cash At Bank
Operating Cash Flow
$5.3M CompanyCash