Flight Centre Travel : Corporate Travel Ord Minnett Conference Presentation

FLT: Presentation by Chris Galanty, CEO - onlycorporate

Ord Minnett Leisure, Tourism & Gaming useConference, March 24, 2022

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Corporate business overview

Positioned for post-pandemic recovery as the world reopens

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Strong Global Presence

Company-owned businesses in 25+ countries. FCM network extends to circa 100 countries globally through equity business & independent licensees

Two key brands

Tailored brands & products for TMS (large market) & SME/start-up customers via FCM & Corporate Traveller brands respectively.

Achieving Strategic Objectives

Growing to win & gaining market-share globally through strong pipeline of account wins & high customer retention rates

01

02

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	Investing to grow
04	Delivering new platforms in both FCM & Corporate
Traveller (Melon) & investing in tech capabilities (TP
	Connects, Shep)

	Organic expansion focus
05	Account wins & high retention rates driving growth.
Some small acquisitions/investments to gain a
	footprint in key markets (Japan joint venture)

	Trading Conditions Improving
06	Positive signs re-emerging in key regions of the
Americas, UK, Europe & Australia after omicron

downturn between December & January - strongest signs of return to normalcy since start of pandemic

Corporate FY22 result recap & update

Solid progress on the path to recovery

• Continued strong sales recovery - $2b+ in 1H TTV, almost 150% growth on PCP

only• Corporate business generated about 60% of group 1H TTV (circa 40% pre-COVID)

• Strong rebound from February - corporate targeting a return to monthly profitability in March/April 2022 (close to breakeven in February 2022)

• Maintaining cost discipline while continuing to invest in

Segmented 1H Results

$m	LEISURE	CORPORATE	OTHER
	HY22	HY21	HY22	HY21	HY22	HY21
TTV	950	501	2,040	823	273	209
Revenue	112	54	192	89	11	16
Underlying EBITDA	(155)	(120)	(30)	(46)	1	10
Revenue Margin	11.8%	10.8%	9.4%	10.8%	n.a.	n.a

key drivers (products, BDMs, solution design &

useimplementation)

• Large customers reinstating travel programs as COVID-19 concerns abate

• Continuing to monitor Russia/Ukraine but no noticeable impact on corporate or leisure sector

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Corporate Gross 1H TTV

8%

35%

28%

29%

ANZ Americas EMEA Asia

Globally diversified with large footprint across 4 geographic regions

Americas & EMEA businesses likely to overtake ANZ during 2H given account win pipeline

Corporate FY22 result recap & update

Gaining market-share globally - growing to win

• Organic market-share growth - fed by multi-billion dollar pipeline of new account wins & high retention

only• 12 of FCM's largest 20 accounts have been won during the pandemic - accounts with annual spends of circa $4.5b secured since FY20 1H

• RFP activity maintaining pace - largest global account just won (not included in above data)

• Wins to drive TTV growth globally, but especially in Americas & EMEA - about 70% of new business won

useduring the pandemic is set to trade in these 2 regions

• Benefiting from diverse global client book - now with greater exposure to government accounts after major wins in France, Singapore & United Kingdom (UK government now one of FCM's largest UK clients)

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Source: Selected industry data for all intermediaries in those markets

Note i : Excludes refunds and cancellations with exception of US

Corporate travel outlook next 18 months

Evolution of customer needs

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Return to travel -

businesses at 60-75% of

pre-COVID in FY23

• Pent up demand for face-to-face meetings
• Government restrictions easing - UK & Europe leading the way
• External travel continues
• Internal travel, meetings & events have picked up in past 6 months

Changing customer needs

• Less leakage - safety and compliance drive higher adoption of travel programs
• Increased demand for services, shift from supplier direct channels to managed travel
• Strong focus on sustainable travel, companies require support

Competitive landscape

• Large corporations have less choice & seeking an alternative
• Legacy TMCs struggling to adopt to new needs
• SME customers see limitations in technology-only companies.