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Investor Presentation

Investor Presentation. CONCORD E. The worldwide online travel market is growing at 30% per annum. The value of U.S. online travel will grow from US$25 billion in 2001 to around US$65 billion by 2005. Source: PhoCusWright. Company Overview.

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Investor Presentation

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  1. Investor Presentation

  2. CONCORDE

  3. The worldwide online travel market is growing at 30% per annum. The value of U.S. online travel will grow from US$25 billion in 2001 to around US$65 billion by 2005. Source: PhoCusWright

  4. Company Overview • Webjet is a low cost marketer & manager of travel & associated services via the internet • Pure online travel company • Delivers customer value through cost plus pricing • Low cost distribution model • Alliance with shareholder Galileo International Inc., one of the world’s largest travel distributors

  5. Directors and Management • Allan Nahum – Chairman, Current Partner Meyrick Webster • David Clarke – MD, former CEO Jetset Travel • Ben Lochtenberg – Deputy Chairman former Chairman, Orica Ltd • John Lemish – Operations Director, 20 yrs travel industry experience • Steven Scheuer – Non Exec Director • Dean Maidment– Business Development Manager

  6. Corporate Aims & Objectives • Retain No 1 position as the only true online Internet seller of travel • Be recognized as providing the lowest cost travel • Gain market share in Australia & overseas • Maximise profitability through its low cost distribution model

  7. Key Strategies • Offer a user-friendly website enabling customers to efficiently find & book lowest cost travel • Accelerate market penetration and new sales opportunities by leveraging Galileo’s global footprint • Provide cost plus transparent pricing to customers • Provide commercially scaleable services without a proportionate increase in costs.

  8. A Proven Business Model • Scaleable model • Online travel model is here to stay • Technology offers high growth at low marginal cost • Qantas & VirginBlue are successfully selling online • Commercial success of Travelocity & Trip.com

  9. Webjet’s Scaleable Business Model 20 18 16 Net Revenue 14 Total Expenses $m p.a 12 10 8 Net Profit 6 4 2 2002 2003 2004 2005 Financial Year

  10. Financial Model

  11. The Australian Travel Market (current)

  12. Market Trends • The travel market is undergoing significant transition • Rationalisation of sales channels • Access to market depends on access to tickets • Cross marketing opportunities

  13. Move To Internet Distribution • Airlines need to reduce distribution costs • Administrative cost structures are now characterised by a limited price elasticity environment • The physical distribution industry faces a margin squeeze.

  14. Comparison of Sales Channels…. Online Shop front Expensive Cheap Time consuming Quick Customer Complex Bookings Simple bookings Control of Booking Driven by personnel cost & investments in assetss Fixed cost base Agent National customer base without borders Local customer base High marginal cost Geared for high growth Control of booking

  15. International industry comparisons • Expedia, Travelocity (US) and Ebookers (EU) provide successful and profitable online travel • Strong growth in turbulent market despite massive opposition from retail companies • Well-known brand names • Analysts reward strong market opportunity

  16. About Galileo • Galileo is a wholly owned subsidiary of Cendant • One third of all automated travel reservations worldwide are booked through Galileo's systems • Galileo provides subscribers at over 45,000 locations the ability to access & book reservations for 501 airlines, 31 car rental companies, 51,000 hotel properties, 400 plus tour operators and all major cruise lines. • Increased Webjet shareholding to up to 20%

  17. Cendent Overview (US$14bn cap.)

  18. Significance of the Deal to Webjet • Accelerates Webjet’s online penetration leveraging off Galileo’s global footprint. • Offers travellers a superior booking interface, with increased reservation capacity and multiple functionality. • Access to Cendant Group companies such as Avis, Budget, Best Western Hotels and RCI timeshare. • Establish Webjet as launch partner in Australia for Galileo’s global Trip.com business, offering cross referral of customers and products.

  19. Future Growth • Increasing brand power with targeted marketing • Capitalize on new booking engine • Estimated gross booking revenue of AUD50m in FY ending 2004 • Exploit industry rationalisation • Growth from international reach

  20. Appendix - Corporate Summary Pre FundingPost Funding • 20 Day VWAP 6.1cents • Current share price: 7.0 cents 7.0 cents • Issued shares: 124m TBA • Market Cap $m: $8.7m TBA • Year rolling share price: 4.7 – 20.5 cents • NTA / Share 1.6 cents TBA

  21. Appendix - Terms of the Capital Raising • Raising a total of $3.6 million comprising: • An investment of $1.8 million by Southern Cross Galileo, comprising $1.0 million immediately and a further A$0.8 million in ordinary shares in three tranches subject to agreed milestones as the IBE project completes. • Webjet will raise an additional $1.8 million pursuant to an institutional placement and a Shareholder Purchase Plan offer to Webjet Shareholders, underwritten by Intersuisse Corporate Pty Ltd.

  22. Appendix - 20 Largest Shareholders Pre-Funding

  23. US$ Appendix – US Online Growth Outlook

  24. Appendix – US Online Travel Players

  25. US$ Appendix – World Growth Outlook

  26. Appendix - Member Companies

  27. Appendix - U.S.TRAVEL GROWTH

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