2012 Interim Results - Presentation ZURICH, 23 AUGUST 2012

Transcription

1 2012 Interim Results - Presentation ZURICH, 23 AUGUST 2012

2 Agenda - Highlights - Financials - Outlook 2

3 Strong position in Asia leads to improved operating results for HY 2012 Turnover +26.7% Negative EBITA halved vs prior year KEY FIGURES HY 2012 KEY MESSAGES (CHF million) % Turnover Organic +3.7 FX impact 2.3 Acquisition GOP margin 18.3% 1.7pts EBITA EBITA margin 0.4% +0.5pts EBIT EBIT margin 1.1% +0.5pts Organic growth mainly driven by GTS and EMS Outbound Europe remains challenging Over 1/3 of turnover is generated outside Europe Ramp up / roll out costs for new VFS contracts Financial expenses include costs for not materialized M&A transaction Strong operating and free cash flow generation GTA integration on track synergies confirmed Net result Operating cash flow Free cash flow

4 Turnover growth composition (CHF million) + 3.7% % 2.3% % 48 2' ' Turnover HY 2011 Organic Acquisition FX impact Turnover HY

5 Consolidated turnover HY 2012 of CHF 2 641m split by divisions and business units Emerging Markets & Specialists (EMS) 23% Specialists 15% Emerging VFS Markets 4% 4% 16% Outbound Nordic 34% Outbound Europe 18% Outbound Kuoni Europe FIT 27% 16% Groups Global Travel Services(GTS) 43% 5

6 HY 2012 Financial Highlights 6

7 Operating performance HY Overview TURNOVER EBITA (CHF million) HY12 HY11 % HY12 HY11 % Kuoni Group n/a Outbound Europe n/a Outbound Nordic Outbound Kuoni Europe n/a Global Travel Services Groups FIT Acquisition & Integration costs Emerging Markets & Specialists Specialists Emerging Markets n/a VFS Global Corporate costs n/a 7

8 Outbound Europe Challenging environment, but improved booking trends in recent weeks (CHF million) HY12 HY11 % Organic FX Acquisition Turnover % 2.5% +2.0% - Outbound Nordic % 3.8% +0.5% - Outbound Kuoni Europe % 1.5% +3.3% GOP margin 17.0% 18.4% EBITA n/a - Outbound Nordic Outbound Kuoni Europe n/a EBIT n/a - Outbound Nordic Outbound Kuoni Europe n/a Outbound Europe challenging markets Solid organic growth of 5.2% in the Nordics after a challenging market environment at the beginning of the year Overcapacity in Sweden in Q1 i.e. pressure on GOP margins -> normalization in Q2 Norway continuing success story and improving GOP and EBIT margin further 8

9 Controlled distribution in tour operating at a record 62% (FY 2011: 59%) 22% Internet Third parties 38% 13% Call Center 27% Own shops Direct sales in % of total sales Main contributor in % of total sales Nordic 73% 49% Internet UK Kuoni 56% Call Centers & Own Shops UK Specialists 67% Mainly Call Centers Switzerland 56% 44% Own Shops France 34% Mainly Own Shops 9

10 GTS achieves strong double digit organic growth Growing intra-asian business 1/2 (CHF million) HY12 HY11 % Organic FX Acquisition Turnover % 2.0% +85.2% - Groups % 2.5% +44.5% - FIT % 1.6% % GOP margin 14.1% 15.4% EBITA Groups FIT Acquisiton&Integration costs EBIT Groups FIT Acquisiton&Integration costs Participation in growing markets Good development in Groups travel especially from growth markets China and Indonesia Demand from Japanese source markets back to levels prior to Fukushima incident Continued growth of FIT in key source markets Asia, Middle East, Europe and Americas Pressure on GOP margins remains high due to economic environment Integration well on track Synergies confirmed (sales, costs, etc) Procurement opportunities captured 10

11 GTS achieves strong double digit organic growth on a like-for-like basis Growing intra-asian business 2/2 Reported Pro forma*) (CHF million) HY12 HY11 % HY11 % Turnover Groups FIT Double digit organic growth rate of top line EBITA Groups n/a - FIT Acquisiton&Integration costs EBIT n/a - Groups n/a - FIT Acquisiton&Integration costs Strong profitability improvement on a likefor-like basis for Groups FIT challenging pricing and inventory supply *) as if GTA had been consolidated for the entire period 11

12 EMS shows excellent performance of DM Specialists and a 28% growth in number of visas processed (CHF million) HY12 HY11 % Organic FX Acquisition Turnover % 2.0% 0.0% - Specialists % 0.3% 0.0% - Emerging Markets % 8.0% 0.0% - VFS Global % 1.5% 0.0% GOP margin 26.1% 25.4% EBITA Specialists Emerging Markets n/a - VFS Global EBIT Specialists Emerging Markets VFS Global Positive booking trend for DM Specialists mainly in APAC, Middle East and USA Negative impact of Rupee depreciation on Indian outbound business Positive trend in outbound from China Reduction of losses from Russian entity Further expansion of VFS business Investment phase: income delayed > 7.1 million visas processed in H1 (vs. 5.6m) 12

13 Financials (CHF million) HY12 HY11 % EBIT Financial result Earnings before taxes Financial result includes: Expenses for not materialized M&A transaction Higher interest charges (financing costs for the GTA acquisition for full six months period) Taxes Net result Positive tax rate development: A lower tax rate than prior year (48.5%) is expected for the full year EPS

14 Cash flow generation & Balance sheet structure per

15 Increasing and substantial cash flow generation (CHF million) HY 2011 HY 2012 Operating cash flow Free cash flow 15

16 Maintained high equity ratio reflecting a sound balance sheet policy Seasonal fluctuations SOUND EQUITY RATIO REMAINS (CHF million) In % 3'000 2' Equity ratio Liability Equity 2'000 1'500 2'246 1'724 2' ' HY2011 FY2011 HY

17 Good liquidity and enhanced debt position as at Senior Credit Facility of CHF 350m unused (vs CHF 70m used at ) AVAILABLE CREDIT LINES CHF 420M AS PER (CHF million) Liquid Funds Advance paments by customers Net Liquid Funds Bond nominal Senior Credit Facility& other debt Net debt position 17

18 Outlook 18

19 Trading update as of 19 August 2012 upswing in bookings CHF LCY % % Tour operating business Outbound Nordic Outbound Kuoni Europe 3 3 Specialists +2 0 Emerging Markets GTS *) Groups FIT (Fully Independent Traveler) Visa Services (VFS Global) # of processed Visa applications +30 *) prior-year bookings include the acquired GTA business with departure date since 1 Jan

20 Indication on July and for full year 2012 Good performance compared to July of prior year with higher GOP margin overall - improved margins in Outbound Nordic, GTS and EMS For FY 2012 Kuoni expects a notable increase in operating profit EBITA exceeding CHF 130m (FY 2011: CHF 113m) EBIT exceeding CHF 90m (FY 2011: CHF 74m) 20

21 Appendix 21

22 Kuoni Group s repositioning with strong focus on asset-light travel services in the growing FIT business and Asia (per ) 22

23 Geographic diversity 1/3 of turnover generated outside Europe GEOGRAPHICAL SPREAD OF TURNOVER (IN %), 2011 (PRO-FORMA FY) Outbound Europe Global Travel Services Emerging Mkts & Specialists Kuoni Group by source Market 8% 5% 1% 1% Asia/ 100% 45% Pacific Europe 33% 67% Europe 9% Europe 30% 1% Asia/ Pacific Europe 64% 3% 2% 27% 4% Asia/ Pacific by destination 6% 7% 26% Asia/ Pacific North America 11% 10% 2% 5% 19% 4% 30% Asia/ Pacific 11% 4% 22% Asia/ Pacific Europe 50% 11% 72% Europe Europe 25% 22% Europe 53% 10% Legend: 23 Central & South America North America Asia/ Pacific Europe Middle East / Africa INTERIM RESULTS ZURICH - 23 AUGUST 2012 Note: VFS included under Asia/ Pacific

24 Business Units - specific strategies (1/2) Business Units Outbound Nordics Strategic objectives Maintain market share and profitability Key strategic initiatives Further improve core charter package business while exploiting the highest flexibility in the Nordics Leverage brand, customer base and web traffic to selectively extend value proposition to other products Outbound Kuoni Europe Restore profitability Build foundation for stable top line development Further improve sales focus and productivity in POS Grow online business Increase efficiency of production and back-office functions Groups & MICE FIT Exploit growth from Asian developing countries Capture synergies through integration Be a truly global, market relevant player Maintain growth momentum Capture synergies through integration Organisational integration Optimisation of processes IT migration Expand source markets and destination footprint IT and organisational integration Product, service and geographic expansion (source markets and destinations) Further develop value proposition 24

25 Business Units - specific strategies (2/2) Business Unit Strategic objectives Key strategic initiatives Specialists Emerging Markets Profitable growth Optimize portfolio Profitable growth, with a focus on Asia and scalable business models Improve cross-selling Enhance integration and collaboration between Outbound and DM specialists Further expand geographic presence India / Hong Kong: expansion of product range and distribution channels Russia: keep current reduced position Enter other countries and business models VFS Profitable growth Extend range of services Increase ancillary revenues Improve unit costs 25

26 Mid-term targets by 2014 ROIC > WACC of 8.5% CAOGR > GDP GROWTH OF RELEVANT MARKETS Note: CAOGR = Compound average organic growth rate 26

27 Corporate Responsibility At the core of Kuoni s vision to be the world s first choice as travel and destination management services company is the imperative for sustainable growth. Kuoni recognises that achieving this goal depends upon balancing environmental, economic and social objectives. Through our Corporate Responsibility (CR) strategy we aim to minimise the risks and the impact of our business, while strengthening the positive impacts at the same time. Key areas of Corporate Responsibility Employees Human and Labour Rights Stakeholder management and reporting Sustainable Supply Chain Natural resources Sustainable products Governance and organisation Strategic objectives Increase sense of responsibility and commitment Increase awarness on Human and Labour Rights standards in operations, processes and supply chain Improve reputation among key stakeholders Ensure supplier compliance Reduce carbon footprint of own operations Reduce water consumption in value chain Increase choice of sustainable products and enhance marketing Increase efficiency of internal processes and management buy-in 27

28 Group structure 28

29 Disclaimer This communication contains statements that constitute forward-looking statements. In this communication, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations and business and certain of our strategic plans and objectives. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors which are beyond Kuoni Travel Holding s and/or its affiliates (referred to as Kuoni ) ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors detailed in Kuoni s past and future filings and reports, including press releases, reports and other information posted on Kuoni s websites or in other form. Readers are cautioned not to put undue reliance on forward-looking statements which speak only of the date of this communication. Kuoni disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise. 29

30 Thank you for your attention! Communication of Q3 /9months 2012 business update on 8 November 2012