Q3 / 9Months 2013 Business update. Zurich, 7 November 2013

Transcription

1 Q3 / 9Months 2013 Business update Zurich, 7 November 2013

2 Trading environment transformed portfolio more resilient to single occurrence Gradual recovery of global economy continues supported by extension of easy money Continued political uncertainty in Egypt let to partial or full cancellation of charter flights Japan s softer currency Consumer sentiments remaining resilient in the US US government shutdown paralyzing the country for several days Weak consumer confidence in India but stabilizing of the currency Nice Summer weather in Europe 2

3 Agenda Q HIGHLIGHTS 9M 2013 FINANCIAL REVIEW CURRENT TRADING 3

4 Q Highlights 4

5 Business performance in Q3 no exceptional items HIGHLIGHTS Organic growth of 2.4% Exit from loss-making tour operating activities in 1 st HY led to lower lop line Positive summer development despite travel ban to Egypt Increase in GOP-margin to 19.3% (vs. 18.6%) Significant rise in EBIT to CHF 97.0m (vs. CHF 58.5m) Improved operating performance of Group Travel FIT Outbound Nordic and Europe/Asia VFS Global 5

6 Operating performance Highlights Q Exit of European tour ops companies led to lower top line of CHF 138m Q Q % (CHF million) Turnover EBITA EBIT Net Result

7 9M 2013 Financial review 7

8 Key figures for 9M M M 2012 % (CHF million) Turnover EBITA EBITA (excl. Swiss pension impact) Amortisation IFRS Impairment n/a 27.2 n/a EBIT Loss from disposal of subsidiaries n/a Financial Result other Net Result n/a 8

9 Business performance in 9M significant improvement in results and confirmation of the full year guidance SOLID PERFORMANCE & SUBSTANTIAL CASH FLOW GENERATION Turnover of CHF 4 387, organic growth of 2.3% GOP margin improved to 18.8% (18.5%) Improved EBITA of CHF 141.2m (vs. CHF 83.9m) Exceptional items unchanged as reported in HY except for FX impact: One-time positive impact on EBIT from change in pension scheme in Switzerland CHF 34.2m Exit from loss-making European tour operator activities completed Loss from disposal CHF 44.4m recognised in financial result CHF 3.2m negative EBIT loss from operation 2013 Free cash flow up 82% to CHF 166.8m (vs. CHF 91.6m) Healthy and improved equity ratio at 27.7% - vs at 26.6% 9

10 Top line development in 9M organic growth +2.3% FX impact +0.1% GROWTH RATES BY BUSINESS UNIT (IN%) Organic FX Acq./Div. Group Travel FIT Outbound Nordic Outbound Europe/Asia DM Specialists VFS Global Note: Group Travel and DM Specialists growth impacted by MICE business USA and Middle East moved to DM Specialists (announced at HY) 10

11 Operating profit bridge 9M IMPROVED OPERATING PERFORMANCE (CHF million) EBITA 2012 reported IAS19R EBITA 2012 restated Sold/closed activities Change in Swiss pension plan Other EBITA

12 Operating performance 9m 2013 by business unit (excl. Swiss pension impact) TURNOVER EBITA (CHF million) 9M 13 9M 12 % 9M 13 9M 12 % excl Swiss pension impact Kuoni Group Global Travel Services Group Travel FIT Acquisition & Integration costs n/a Outbound & Specialists Outbound Nordic Outbound Europe/Asia remaining Outbound Europa/Asia sold/closed n/a DM Specialists VFS Global Corporate

13 Group Travel: strong performance in key markets (CHF million) 9M13 9M12 % Focus on higher margin business excl Swiss pension organic growth at +1% Turnover GOP EBITA FTE (end of period) Shift of MICE businesses in USA and Middle East to DM Specialists Volumes from China very strong Japan remains strong with improved profitability Main source markets remain in order of size: Japan China Rest of Asia 13

14 FIT: growth in all markets except for Southern Europe and Japan (CHF million) 9M13 9M12 % Organic growth of 5.4% excl Swiss pension GOP-margin stabilized at 12.0% Turnover GOP EBITA FTE (end of period) Continued growth to APAC +30% room nights Room nights overall rose by 3.8% to 9.6m Key source markets growing at double digit growth rates except for Southern Europe and Japan Australia strong high single digit growth despite currency devaluation 14

15 Outbound Nordic: all markets improved GOP-margin in Q3 (CHF million) 9M13 9M12 % excl Swiss pension Turnover GOP EBITA FTE (end of period) Good performance in summer months driving higher GOP-margin in Q3 in all markets Strong sales to Greece Charter flights to Egypt cancelled till end of the year Capacities moved to Canary Islands (Playitas), Morocco and Madeira Norwegian entering the long haul market seen as an opportunity for new destinations 73% sold direct 15

16 Outbound Europe/Asia: performance improvement despite difficult trading environment overall (Egypt, attacks in Nairobi, US shutdown, Currency in India) (CHF million) 9M13 9M12 % excl Swiss pension Turnover remaining Turnover sold / closed GOP EBITA remaining EBITA sold / closed Switzerland UK Retail above prior year despite reduced # of shops Online dynamic packaging platform increased sales by >100% to CHF 22m Improved GOP margins for tour operating and specialists FTE (end of period) Successful John Lewis cooperation 4 new stores planed for Q4 India remains challenging (Rupee depreciation / consumer confidence) No further costs for sold or closed operations 16

17 DM Specialists: enhanced demand to APAC and India while. (CHF million) 9M13 9M12 % excl Swiss pension Turnover GOP EBITA FTE (end of period) Middle East region negatively impacted by highly competitive source markets in Southern Europe and Russia DM India improved performance growing inbound tourism to India mainly from China, Thailand and Indochina Fluctuating currencies SA Rand, Thai Baht and Indian Rupee 17

18 VFS Global: 28% growth in number of applications to 14.3m 258 new VACs¹ were opened around the world (CHF million) 9M13 9M12 % excl Swiss pension Turnover GOP EBITA whereof JV (Saudi contract) 3.1 n/a FTE (end of period) Strong organic growth at 21.8% VAC s in operation in 91 countries Fast track, courier and sms service are among the top contributors of Value Added Services Saudi contract: Egypt to go live with biometrics in January 2014 ¹ VAC: Visa Application Center 18

19 Financials: substantial improvement of bottom line despite impact from loss of disposal of subsidiaries (CHF million) 9M13 9M12 % As reported in HY except for FX impact EBITA Amortisation EBIT Loss from disposal of subsidiaries n/a n/a Financial result other Income Taxes Exit costs from loss making tour operating activities of CHF 47.6m Exit costs without tax benefit Net Result n/a EPS (in CHF) n/a Avg. # of shares outstanding

20 Strong Free cash flow generation high cash conversion (CHF million) 194 Operating cash flow Free cash flow % % 92 9M2012 9M

21 Healthy equity ratio and sound balance sheet Equity ratio Liability (CHF million) In % Equity 2'800 2'600 2'400 2'200 2'000 1'800 1'600 1'400 1'200 1' ' ' ' ' Dec Sept 2012 restated 31 Dec 2012 restated 30 Sept

22 Good liquidity and enhanced debt position as at Senior Credit Facility (not used as at ) (CHF million) vs CHF 146m vs CHF 318m Liquid funds Bond nominal Other debt Net Liquid Funds Advance payments by customers Net debt position SUCCESSFUL PLACEMENT OF 6-YEAR BOND ISSUE CHF 200m Coupon: 1.5% 50% lower future costs of bond financing Refinancing of 4y bond matured

23 Swiss Pension plan switch to a defined contribution system as reported in HY Non-cash / IFRS accounting impact ONLY Group Travel CHF 3.0m FIT CHF 1.3m Outbound Europe / Asia CHF 23.6m Corporate CHF 6.3m TOTAL / Effect on EBITA CHF 34.2m 23

24 Current Trading 24

25 Trading update as at 3 November 2013 BOOKING LEVELS AND TURNOVER COMPARED WITH EQUIVALENT PRIOR-YEAR PERIOD FOR DEPARTURE 2013 CHF LCY % % Group Travel 1 2 FIT Outbound Nordic 0 1 Outbound Europe/Asia remaining¹ 0 +2 Destination Management Specialists 1 +2 VFS Global (Visa Services) # of processed visa applications +26 ¹Remaining activities are: Switzerland, UK, Benelux Specialists, India, HongKong/China 25

26 Confirming FY 2013 guidance set in August EXPECTED EBIT UP COMPARED TO LAST YEAR The one-time positive effect on operating earnings (EBIT) from the change in the 2013 Swiss pension plan will remain at CHF 34 million for the year as a whole. In the second half of the year there will be no further costs for the withdrawal from lossmaking business units. Overall, Kuoni Group expects full-year EBIT in the range of CHF million, in line with market expectations. MID-TERM TARGETS FOR 2014 ESTABLISHED IN SPRING 2012 UNCHANGED 2014 ROIC CAOGR > WACC OF 8.5% > GDP GROWTH OF RELEVANT MARKETS 26

27 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. 27

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