Macquarie Australia Conference

In

ve

sto

r Pre

se

nta

tion

by A

da

m C

am

pb

ell (

CFO

)

FY

17

: TH

E S

TO

RY

SO

FA

R

$300m-$330m

underlying PBT

target

TTV expected to top $20b for 1

st

time (circa 4%

grow

th) –another

record sales year

Targeting $1b in online leisure TTV

Nine of FLT’s 10 countries/regions delivered record 1H TTV in local currencyThree –

Europe, South Africa & M

ainland China –delivered record 1H profit

On track to achieve FY17

targets but some

ongoing uncertainty –

FX fluctuations & airfare pricing

FY

17

HIG

HLIG

HT

S (

1H

)

Increased market-

share –international ticket sales grow

th (up 10%

in Australia) outpacing

outbound travel grow

th

Enhanced productivity –

TTV per person

increasing in most

countries (key global strategy)

Investment in

transformation

initiatives to ensure FLT is as successful

over the next 20 years as it has been in the

past 20Continued balance sheet strength –

strong positive net debt position

New revenue

streams delivered

–new

markets,

sectors & products

MA

NU

FA

CT

UR

ED

PR

OD

UC

T S

ALE

S I

NC

RE

AS

IN

G

Fro

m S

tart-U

ps

to M

ulti M

illion

Do

llar P

rod

uct

Ra

ng

es

Unique offerings for FLT custom

ers

Does not include constructed airfares, other w

holesale packages, TTV from

in-destination businesses

Includes Captain’s Packages, Journeys, Escapes, Black M

arket Flights, Get Luxe, Tailor-M

ade & others

Manufactured

leisure products on track to deliver m

ore than $500m

in TTV in Australia alone during FY17

FY

17

CH

ALLE

NG

ES

In

tern

al

Fa

cto

rs

Underperformance

in some brands &

businesses (Asia, North Am

erica leisure, Top Deck)

Trading cycle –challenging conditions in som

e markets

Cost growth

outpacing revenue grow

th in low fare

environment

Significant airfare deflation

FX fluctuations significantly

affecting overseas result translation

Ex

tern

al

Fa

cto

rs

AIR

FA

RE

PR

IC

IN

G

De

flatio

na

ry

En

viro

nm

en

t

Im

pa

ctin

g

Re

ve

nu

e

Brig

hte

r

Ou

tloo

k

Significant deflation in som

e key m

arkets –including

Australia & USA –since 2H FY16

Unprecedented & prolonged discounting from

m

ost carriers (not LCC-driven)

7% decline in

average international prices in Australia during 1H

Stimulating dem

and but leading to slow

er than normal

revenue & TTV grow

th

Average fares in Australia now

at sim

ilar levels to PCP, in line w

ith FLT’s expectations

Opportunity for m

ore rapid TTV & revenue grow

th as 2H progresses

SH

OR

T-T

ER

M G

RO

WT

H D

RIV

ER

S (

FY

18

)

Sensible & Cost-Effective

Network

Expansion

Overall M

arket Grow

th

Normal airfare

price shifts betw

een periods,

exchange rate stability

Small

Contribution From

Recent Acquisitions

Ongoing Productivity

Gains Globally

Top DeckEurope

Australian Corporate

Asia

Benefits Flow

ing From

Cost Control Initiatives

Op

era

tion

al

Im

pro

ve

me

nt

Gro

wth

Be

tter

Tra

din

g

Cycle

Stro

ng

er

Co

ntrib

utio

ns

ME

DIU

M-T

ER

M G

RO

WT

H D

RIV

ER

S (

FY

18

–FY

20)

Creation of a new Business

Transformation Team

under M

elanie Waters-Ryan (COO)

Ongoing Growth Strategies

TR

AN

SFO

RM

AT

IO

N T

EA

M P

RIO

RIT

IE

S

More com

prehensive details on this team’s progress &

objectives will

be provided at the full year in August

Identify & deploy cost reduction strategies

Grow digital

comm

erce sales

Recomm

end additional investm

ent requirem

ents in grow

th models

& brandsGrow

the Travel

Experience Netw

ork

Strategic review

of underperform

ing brands &

businessesGlobalise

Technology

Aligned acquisition strategy

CH

AN

GE

S A

LR

EA

DY

TA

KIN

G P

LA

CE

Tra

nsfo

rma

tion

pro

gra

m in

infa

ncy b

ut

ma

na

ge

me

nt-

driv

en

ch

an

ge

s

alre

ad

y in

pla

ce

New Asia

structure –Singapore, M

alaysia & Greater China

Travel Money USA

GOGO wholesale

business (USA) dow

nsized during 1H

Slow dow

n in leisure travel

growth in som

e countries in response to

subdued market

conditions

Loss-making

Student Flights NZ & RSA offerings

absorbed into FCB

Streamlined

finance structures ahead

of Dynamics

roll-out

CO

RE

GR

OW

TH

OP

PO

RT

UN

IT

IE

S

Leisure Travel Retailing

Corporate Travel

In-Destination Travel

Experiences

3 K

ey A

rea

s

5 K

ey

Ge

og

rap

hie

sEM

EAAm

ericasAustralia & NZ

AsiaIn-Destination

(Global)

LE

IS

UR

E T

RA

VE

L R

ET

AILIN

G

FLT’s Largest B

usin

ess

Se

cto

r

Brands that are easy to transact &

interact with

Delivering specialised expertise &

unique products

Targeted & cost effective

growth

planned along the P2P Index

Omni-channel

& blended offerings

All leisure brands likely

to be profitable in

Australia during FY17

Proactively targeting high grow

th sectors -adventure, youth, river

cruise

LE

IS

UR

E T

RA

VE

L: T

HE

P2

P I

ND

EX

OT

AC

on

tact

Ce

ntre

sFla

gsh

ipS

tore

sC

om

mu

nity

Ho

me

Ba

se

dE

ve

nts

Dominating The Leisure

Travel Landscape

•High volum

e, low

touch

•Flightcentre, StudentUniverse, BYOJet, Aunt Betty.

•24/7 telephone sales & assist

•Team

s currently based in Brisbane & Sydney

•H

yp

er s

tore

s

•M

eg

asto

res

•S

ho

pp

ing

ce

ntre

s

•C

BD

an

d s

trip

loca

tion

s

•M

odel expanding globally

•FLT’s 13

thMonth

Growing netw

orkof specialist “direct”

businesses –FCBT, Cruise, Groups, First &

Business

LE

IS

UR

E T

RA

VE

L: P

US

HIN

G T

O T

HE

ED

GE

S

Contact Centres

Sales & service businesses in head

office locations

24/7 Customer

Assistance, Web

Chat, After Hours Sales

Flexible staffing requirem

ents

Home-Based

Agents

Cost-effective model

that is growing

strongly globally

FLT turning over circa $160m

in Australia alone

Expos & Events

Nationwide program

in place

Discover the Am

ericas, World

Travel & Cruise, Travel Expo

Attracted almost

1% of Australian

population during FY17

Stro

ng

gro

wth

po

ten

tial (

from

sm

all b

ase

) in

ch

an

ne

ls a

t the

fring

es o

f the

P2

P I

nd

ex

FLT

ONLINE COM

PLETION

ONLINE ORIGINATION

LE

IS

UR

E T

RA

VE

L: D

IG

IT

AL C

OM

ME

RC

E✓Sign of healthy value proposition ✓

Already multi-billion dollar entities

✓Com

plex purchases are more valuable

✓Transaction volum

e growing fast

✓Leisure targets $1B in FY17 ✓

Corporate adoption of online 40%+

LE

IS

UR

E T

RA

VE

L: E

NH

AN

CE

D D

IG

IT

AL P

RE

SE

NC

E

NA

TIV

E

AP

PS

StudentUniverseseeing strong YoYgrow

th in mobile

bookings

New apps deployed

for FC Australia and FC USA

LEISURE: FLT’S SHO

P NETW

ORK

Strong netw

ork of com

munity &

flagship shops

Generating 85-90%

of leisure TTV in Australia

Significantly higher

conversion & transaction values than

other channels

“Billboard Effect” at high profile sites –cost effective advertising &

promotion

The Heart of The P2P Index

High levels of profitability in

Australia

Opportunity to ”pivot” leisure

model in som

e countries to

improve

performance

LE

IS

UR

E: G

RO

WT

H O

UT

LO

OKTailored grow

th plans for each

brand in Australia & overseas

Emerging brands

typically growing

more rapidly, but

generating less TTV/team

Modest grow

th planned for m

ore m

ature Flight Centre Brand in Australia

FCB growth focused on

flagships in major &

super-regional shopping centres

No plans for w

idespread shop closures in Australia, given high levels of

profitability

Relocation program

–shifting shops to

better sites

Some pivoting or

rationalisation in loss-m

aking overseas

businesses

Up-staffing in some

brands & locations w

ithout increasing footprint

On

go

ing

Ne

two

rk

En

ha

nce

me

nts

Diffe

ring

Gro

wth

Pro

files

CO

RP

OR

AT

E T

RA

VE

L

Now

generating about one-

third of FLT’s global TTV

Entering im

portant new

geographies

Consolidating position as one of the

world’s largest

travel m

anagers

Ongoing enhancem

ents to already

strong product suite

Award

winning &

innovative offerings

Investments

in platforms &

Artificial Intelligence Tools (Sam

& Claire)

Recent acquisitions in the Am

ericas, Asia and

Continental Europe

IN

-DE

ST

IN

AT

IO

N T

RA

VE

L E

XP

ER

IE

NC

ES

Includes Buffalo Destination

Managem

ent Com

pany & tour operators (Top Deck & Back-

Roads) Greater share of w

allet, greater control over

product offering, unique custom

er offers

Future Expansion Opportunities –

hotel m

anagement,

global DMC

network

FLT’s 3rdKey

Business Pillar

RE

CE

NT

AC

QU

IS

IT

IO

NS

(FY

16

& F

Y1

7)

New Corporate

Markets

•Nordics & Germ

any•

Mexico

•Netherlands

•M

alaysia•

Maya (cievents

HK)

Online & E-com

merce

•StudentUniverse

•BYOjet

•Bibam

* (Argentina)

In-destination

•Buffalo Tours

Other

•Avm

in•

Ignite*•

Sunny (China)•

Travel Tours (India)#

*FLT has minority interests in both Bibam

& Ignite

# Part of the Travel Tours acquisition is also yet-to-complete

Generally targeting & investing in sm

aller businesses with solid grow

th potential

QU

ES

TIO

NS

?