Dec 2005 Half Year Results
Investors Presentation
1st March 2006
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
40%
USA
30%
Aust
20%
2 Year Lag
10%
0%
2001
2002
2003
2004
Source – Phocuswright, WEB
Presentation contains no budgets or forecasts – please see full disclaimer
2005
2006E
Online Agents – Macro Trends
FY04
Air Market - $B*
FY05
FY06
FY07
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
1.5%
3.0%
5.2%
7.5%
Online Agents
% Total Air Market
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
Online Travel Agency Market - $M Change PA
$1.0B Online Agency
Air Market by 2007
1200
337
800
301
400
195
180
0
2004
2005
Source – IATA BSP agents 5.8B for calendar 2005
WEB estimates
Presentation contains no budgets or forecasts – please see full disclaimer
2006E
2007E
Capabilities
WEB
High
TVL
Zuji
Booking
FLT
Capability
Best Flts
Low
Low
Presentation contains no budgets or forecasts – please see full disclaimer
Marketing
High
Visitors v Online Bookings
Webjet Largest by Sales
Second by Internet Visitors
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
Presentation contains no budgets or forecasts – please see full disclaimer
Webjet 3% of the Agency Market
And 7% of the Agency Market
If Measured by Transactions
Turnover WEB as % of BSP
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
Jan-05
Feb-05
Mar-05
Apr-05
May-05
Jun-05
Source – IATA BSP, WEB
Presentation contains no budgets or forecasts – please see full disclaimer
Jul-05
Aug-05
Sep-05
Oct-05
Nov-05
Why go to Webjet?
Full Choice of
Flight, Time and
Price Options
Book one Airline
One Way and
Another the
Return
High Standard
Of Customer
Service
Seat Price
Guarantee –
Seat held for 30
Minutes
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?
100.0%
89% Rate Good to
Excellent
75.0%
Excl - Good
50.0%
Avg - Poor
25.0%
0.0%
Jul 05
Presentation contains no budgets or forecasts – please see full disclaimer
Nov 05
…… most customers don’t contact
67% on Average Don’t
Need to make contact
Customer Service Ratings
100%
75%
Avg - Poor
Excl - Good
50%
Have'nt Used
25%
0%
Phone
Webchat
Presentation contains no budgets or forecasts – please see full disclaimer
Email
Performance Highlights
H1 2006
TTV
H1 2005
%
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
Presentation contains no budgets or forecasts – please see full disclaimer
+925%
TTV (Sales)
First Half FY06 is same
TTV as whole of FY05
Webjet TTV $M
90
80
70
60
50
40
30
20
10
0
H1
H2
H1
H2
H1
2004
2004
2005
2005
2006
Presentation contains no budgets or forecasts – please see full disclaimer
Profit Margin Improves to 2.0%
Com parison % Cost and Profit Margin
In a period when Qantas
Domestic comm. dropped
From 5% to 1%
8.00
1.8%
7.00
6.00
2.0%
5.00
Prof it %
4.00
Cost %
3.00
2.00
1.00
0.00
2005
Presentation contains no budgets or forecasts – please see full disclaimer
2006 H1
Exp % Drops as Marketing Rises
Expenses as % TTV
1.4%
7.0%
1.2%
6.0%
1.0%
5.0%
0.8%
4.0%
0.6%
3.0%
0.4%
2.0%
Mktg %
Tot Exp %
0.2%
1.0%
0.0%
0.0%
H1
H2
H1
2005
2005
2006
Presentation contains no budgets or forecasts – please see full disclaimer
TTV per Employee Benchmark
Webjet’s efficiency improves
With scale
Effeciency - TTV per Employee $M
6.0
4.0
2005
H1 2006
2.0
0.0
WEB
FLT
Presentation contains no budgets or forecasts – please see full disclaimer
TNS
Balance Sheet
All $M 2004
2005
H1 2006
Cash
0.8
3.5
5.6
Total Assets
3.0
8.4
10.1
-1.8
-1.4
-1.6
Shareholders Equity
1.2
7.0
8.5
Net Current Assets
-0.4
+3.7
+5.8
Total Liabilities
Presentation contains no budgets or forecasts – please see full disclaimer
$5.6M at Bank at 31 Dec 2005
Webjet Cash Flow
6000
$5.3M Company
Cash
Cash At Bank
Operating Cash Flow
4000
2000
0
H1
H2
H1
2005
2005
2006
Presentation contains no budgets or forecasts – please see full disclaimer