Interim Results. 6 months ended 31 March May Page 0

Transcription

1 Interim Results 6 months ended 31 March May 2009 Page 0

2 Introduction Manny Fontenla-Novoa, CEO Financial review Ludger Heuberg, Acting CFO Current trading and outlook Manny Fontenla-Novoa, CEO Page 1

3 Introduction Manny Fontenla-Novoa Page 2

4 Highlights Strong performance across all segments Revenue up 12.6% to 3,484.3m Adjusted EBIT loss improved by 15.6% to 110.9m Interim dividend up 15% to 3.75p per share Good progress against strategic agenda acquisitions performing well Synergy delivery on track for 215m by 2010 Benefitting from high flexibility in the model Current trading in line with expectations Industry leading margins will progress further Confident of meeting board expectations for the full year Adjusted EBIT is earnings before interest, tax, exceptional items and amortisation of business combination intangibles and our share of the result s of associates and joint ventures. We use this definition throughout this presentation when referring to EBIT Page 3

5 Good results for the 6 months ended 31 March Sales in m EBIT in m % H1 08 H1 09 3, , % H1 08 H m of the year-on-year increase relates to translation effects (3.9)m of the year-on-year variance relates to translation effects Page 4

6 Group revenue up 12.6% Segmental revenue (external) m 6m to 31/3/09 Change % UK & Ireland (1.8) Continental Europe 1, Northern Europe North America Airlines Germany Corporate Group 3, Strong ASPs, acquisitions and FX more than offset planned capacity cuts Page 5

7 Adjusted EBIT improved by 15.6% Segmental EBIT m 6m to 31/3/09 6m to 31/3/08 UK & Ireland (109.2) (122.2) Continental Europe (34.7) (31.7) Northern Europe North America Airlines Germany (3.6) (11.6) Corporate (5.8) (9.3) Group (110.9) (131.4) Synergies, product mix and acquisitions support strong operational performance Notes: Earnings before interest, tax, exceptional items, amortisation of business combination intangibles & excluding our share of results of associates and joint ventures. Page 6

8 Acquisition Update All Acquisitions performing well Contributing significantly to segmental performance Integration process and synergy delivery progressing well In some cases transforming the segments in which they re integrated France: Jet Tours - market leading tour operator UK: Gold Medal - gives us a Market leading position in independent travel Canada: TriWest - no.1 player in Independent travel market (25% market share) Very successful record of integration and acquisition management Page 7

9 Financial Review Ludger Heuberg Page 8

10 Financial highlights m 6m to 31/3/09 6m to 31/3/08 Revenue 3,484.3m 3,094.8 Adjusted EBIT loss* (110.9)m (131.4)m Adjusted EBIT margin (3.2)% (4.2)% Loss Before Tax (280.4)m (233.2)m Adjusted LPS (15.1)p (10.6)p Dividend per share 3.75p 3.25p Operating cash flow (291.0)m (266.1)m * Earnings before interest, tax, exceptional items and amortisation of business combination intangibles and our share of the results of associates and joint ventures. Page 9

11 Group income statement for the 6 months to March 2009 m 6m to 31/3/09 6m to 31/3/08 Change (m) Revenue 3, , Cost of providing tourism services (2,713.7) (2,418.5) Gross profit Personnel expenses (483.2) (447.8) Depreciation and Amortisation (72.7) (64.7) Net operating expenses (325.6) (295.2) EBIT pre exceptionals (110.9) (131.4) 20.5 Share of associates & JVs and net investment income (1.1) (0.7) Net finance costs (ex. exceptional finance cost) (69.6) (10.7) Loss before tax pre exceptionals (181.6) (142.8) (38.8) Total exceptional items (inc. exceptional finance cost) (80.9) (60.8) Amortisation of business combination intangibles (17.9) (29.6) Tax Loss after tax (207.3) (176.2) Adjusted LPS (pence) (15.1)p (10.6)p (4.5) Page 10

12 Cost of sales m 6m to 31/3/09 % of costs % of revenue Accommodation 1, Aviation excluding fuel 1, Fuel Commission Other costs Cost of sales 2, % 78% More than 90% of accommodation costs are variable Significant flexibility in aviation costs 3 rd party flying capacity and lease renewals Commissions are 100% variable Page 11

13 Exceptional items m 6m to 31/3/09 6m to 31/3/08 Merger integration costs (40.6) (26.5) Other business integration and restructuring costs (24.0) (0.7) Impairment & disposal of assets (6.3) (4.6) Other merger related costs - (6.9) Aborted bid costs (0.8) (4.3) Other operating exceptional items (4.0) (3.9) Total exceptional operating items (75.7) (46.9) Exceptional finance costs (5.2) (13.9) Total all exceptional items (80.9) (60.8) Page 12

14 Net finance costs pre-exceptional m 6m to 31/3/09 6m to 31/3/08 Interest income Interest payable 1 (51.2) (13.3) Finance costs in respect of finance leases (12.4) (12.6) Net finance costs of pension schemes (5.6) 0.4 Forward points/fair value of derivatives (7.1) - Other (2.1) (2.5) Net finance costs pre exceptional items (69.6) (10.7) Exceptional finance costs (5.2) (13.9) Total all finance costs (74.8) (24.6) Cash finance costs amounted to (54.9m) (PY: (14.0)m) 1. Interest payable includes 7.2m of amortisation of facility set-up costs Page 13

15 Tax assets and tax rate Group effective tax rate expected to be 27% for the full year Group cash tax rate c.20% on post-exceptional profit Total losses available at last year end (30 September 2008) 1.3 billion Deferred tax assets recognised in respect of 0.7 billion First half losses expected to be fully absorbed by profit in second half Page 14

16 Balance sheet m As at 31/3/09 As at 31/3/08 Intangible assets & investments 3, ,346.3 Property, plant & equipment 1, Other non-current assets Cash & cash equivalents Trading securities Net current liabilities (excl. cash and cash equivalents) (2,784.1) (2,000.8) Non-current liabilities (1,367.5) (1,194.4) Net assets 1, ,208.7 Heavily impacted by movements in exchange rates Page 15

17 Net debt m As at 31/3/09 As at 31/3/08 Cash & cash equivalents Trading securities Current debt (excl. finance leases) (555.1) (159.0) Non-current debt (excl. finance leases) (379.5) (139.3) Finance leases (454.4) (468.3) Net debt (1,004.5) (190.4) Page 16

18 Net cash flow m 6m to 31/3/09 6m to 31/3/08 Seasonal cash outflow from operations (291.0) (266.1) Capital expenditure (net) (78.5) (59.4) Interest paid (69.8) (30.1) Dividends paid (55.5) - Acquisitions / disposals (inc. India rights issue) (76.1) (117.1) Share buy back (47.1) (35.8) Net movement in borrowings/securities (44.0) Finance lease repayments (32.7) (36.5) Other Net decrease in cash (460.5) (587.1) Page 17

19 Net debt movement Key Group outflows for the 12 months ended 31 March Acquisitions 255m Share buy back 259m Dividends paid 136m Net capital expenditure 160m Interest payments 98m Later booking pattern and reduced capacity Currency translation effect Page 18

20 Fuel and currency hedging % S 09 W 09/ $ Fuel requirements Fuel and FX hedging policy To provide good cost certainty with optimal flexibility Allow different approaches across Segments To hedge in general a minimum of 80% of requirements going forward To hedge fuel 8 to18 months ahead of consumption, depending on market To hedge FX 6 to 15 months ahead of requirement, depending on market Page 19

21 Current trading Manny Fontenla-Novoa Current trading Page 20

22 Current trading in line with expectations Winter 08/09 ended strongly with average departed load factor 98% Bookings trending towards capacity and expectations Trend to later bookings continues Strong last 3 week bookings, especially Northern & Continental Europe Strong demand for mid-haul playing to our strengths Confident of meeting full year expectations Page 21

23 UK & Ireland H1 09 Revenue 972.6m -1.8% H1 09 EBIT (109.2)m +10.6% Robust S 09 trading performance Current Trading % Change Sold to date % ASP Cumulative Bookings Last 3 Weeks bookings Last 3 Weeks ex- Mexico Capacity UK & Ireland Haul mix focus on medium haul Current Trading Planned % Change ASP Margin vs SH Mix S 09 Mix S 07 Capacity Left to Sell Short Haul % 32% Medium Haul % 69% 58% -2 Flat Long Haul % 9% 10% UK & Ireland Total % 100% Page 22

24 UK & Ireland No signs of trading down Cancellation rates as expected No deterioration in 14 night bookings Share of sales % W08/09 W07/08 S09 S08 4 to 5 star rating All inclusive Strong growth in All-Inclusive 41% of S 09; up 18% Swine flu limited impact with <2% volume exposure to Mexico Confident of strong FY performance Page 23

25 Continental Europe H1 09 Revenue 1,377.1m +24.9% H1 09 EBIT (34.7)m -9.5% Strong later booking profile % Change ASP Cumulative Bookings Last 3 Weeks bookings Capacity Germany Continental Europe German capacity flexed successfully to match changing demand Hotelier discounts helping to sustain demand and margin France benefitting from the transformation of Jet Tours acquisitions Belgium pricing remains strong despite difficult trading conditions Inherent flexibility supports ability to maintain profitability for the FY Page 24

26 Northern Europe H1 09 Revenue 529.1m +10.0% H1 09 EBIT 28.1m -20.2% Very strong current trading % Change Sold to date % ASP Cumulative Bookings Last 3 Weeks bookings Capacity Northern Europe Geographically mixed picture Swedish bookings have been strong (our largest Nordic market) Conditions in Denmark improving with bookings +30% in the last 3 weeks. Departed Load Factors remain strong % in February and March Long haul a small proportion of the summer programme Capacity moved away from Thailand with minimal financial impact Confident this segment will achieve our FY expectations Page 25

27 North America H1 09 Revenue 262.8m +5.2% H1 09 EBIT 14.3m +74.4% Transformed through TriWest acquisition Independent business now 75% of total (20% pre-triwest) No I in Canadian market 25% market share Reflected in margin improvement despite economic conditions H1 09: 5.4% up from H1 08: 3.3%. Mainstream market weak but only 25% of North America segment Canadian mass-market suffering from huge overcapacity Mainstream customers only 15% of total summer PAX Significant impact from swine flu related cancellations On budget to deliver exceptionally strong FY Page 26

28 Airline Germany H1 09 Revenue 342.4m +26.4% H1 09 EBIT (3.6)m +69.0% Bookings strengthening as we progress through the season Cumulative bookings -15% Last 3 week bookings -2% Strong performance despite tough conditions in S 09 Capacity -7% Route rationalisation supporting stronger yields Swine flu impact - Mexico <1% of total Departed load factors remain strong March departed load factor up slightly on previous year We will meet our expectations for the full year Page 27

29 Outlook Manny Fontenla-Novoa Page 28

30 Outlook Trading in Summer 09 strengthening through the season Maintaining cost leadership - important strategic driver Cost and pricing certainty through hedging fuel and currency Increasingly rational and disciplined markets Well positioned across all our geographical segments Management capable of navigating challenging economic conditions Driving further margin growth for the next two years We are well positioned and confident for FY09 prospects Page 29

31 Investor Relations contacts Thomascookgroup.com Jill Sherratt John Woodman Page 30

32 Appendix 1. Current trading summary Summer 09 (Mainstream only) % Change Average selling price Cumulative Bookings Last 3 Weeks bookings Last 3 Weeks ex-mexico Capacity UK & Ireland Northern Europe Germany Continental Europe Page 31