MORGANS QUEENSLAND CONFERENCE Graham Turner, CEO

October 9, 2019

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COMPANY OVERVIEW

Our

Business Strong corporate culture built around 3 core values – egalitarianism, ownership & irreverence

TTG a longer term driver of group results & includes: DMCs in Asia & Mexico (Discova), hotel management in Thailand, Vietnam and Bali (Cross Hotels & Resorts) and tour operators (Topdeck, Back-Roads)

Leisure & corporate businesses in four major geographic regions – Australia/NZ, Americas, EMEA & Asia

Operating in 3 key sectors – leisure, corporate & in-destination travel experiences (now known as The Travel Group or TTG)

20,000 people worldwide

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23rd year of growth in 24 years

since listing

RECORD TTV OF $23.7b

In line with amended guidance

but below PCP after

challenging 2H

UNDERLYING PBT OF $343.1m

Strong results in key overseas

markets – $100m+ profit fin the

Americas

GLOBALISATION

Continued out-performance &

strong future growth potential in

business travel sector

CORPORATE

$3.07 per share in fully franked

dividend payments, including

$1.49 special dividend

$310.2m SHAREHOLDER

RETURN

FY19 RESULT RECAP

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KEY FY19 THEMES: DIVERSITY & GLOBALISATION

Australia & NZ

53%

Americas 24%

EMEA 14%

Asia 8%

Other 1%

FY19 TTV Contribution

More than half of FLT’s TTV is now generated overseas

61%

38%

1%

FY19 TTV Contribution

Leisure Corporate TTG

A market leader in both leisure & corporate travel

TTV weighted

towards leisure but

mix likely to change

given stronger

growth trajectory &

broader geographic

footprint in

corporate

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CORPORATE: GROWING & GAINING SCALE GLOBALLY

Australia/New

Zealand 33%

Americas 33%

EMEA 22%

Asia 12%

Corporate TTV Contributions – FY19

0

1

2

3

4

5

6

7

8

9

10

Corporate TTV ($AUb)

Corporate TTV ($AUb)

15.2% corporate TTV growth to

$8.9b during FY19 & further

growth during FY20 Q1

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EUROPE: PLATFORM IN PLACE FOR RAPID GROWTH

Expanding Presence in Key Corporate Region

Significant continental Europe footprint – home to some of the world’s largest corporate travel markets

Equity owned businesses in key countries – France, Germany, Switzerland, Netherlands, Sweden, Finland, Norway, Denmark

Corporate focus – pure-play offerings in all countries

Gaining scale & poised to become a key FY20 EMEA result driver

Germany start-up winning business & targeting break-even during FY20

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LEISURE: ONGOING EVOLUTION – 3 PILLARS, 2 PATHS

MASS PREMIUM

AU

NZ

RSA

UK

USA

CAN

ASIA

● Market leader and Specialist

● Growth in new models

● Vertical expansion

● Digitisation

● Specialist

● Unmanaged small business FCBT

● Vertical specialist

● Digitisation

YOUTH

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Brands & models covering 100% of the leisure travel market

AUSTRALIA: LEISURE BRANDS & MODELS

BRAND OTA

CO

NTA

CT

CE

NT

RE

FL

AG

SH

IP/H

YP

ER

CO

MM

UN

ITY

FC

BT

SP

EC

LIA

LS

IAT

ION

IC

FR

AN

CH

ISE

AC

CE

LE

RA

TE

D

OW

NE

RS

HIP

FLIGHT CENTRE Y Y Y Y Y Y Y N Y

UNIVERSAL TRAVELLER Y Y Y N N Y Y N Y

TRAVEL ASSOCIATES N N N Y N Y Y Y Y

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STRONG GROWTH IN NEW/EMERGING LEISURE MODELS

Online – about $1.3b in online leisure TTV during FY19

Home-based/Independent contractor

Specialist Flight Centre brand businesses

Ready-made packages/flash sale

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FURTHER ONLINE GROWTH: TTV DOUBLING IN AUSTRALIA

0%20%40%60%80%

Year-on-Year TTV Growth (%)

Year-on-Year TTVGrowth (%)

Rapid growth on flightcentre.com.au

since online booking fees were removed

*Jetmax includes BYOjet & Aunt Betty

Q1 TTV Growth

Jetmax* up 140% to $135m

flightcentre.com.au up 65% to $120m

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flightcentre.com.au

Customer Profile

Domestic Weighted: Predominantly travellling within Australia – more than 80% of bookings (circa 60% of TTV)

New Customers: Only 8% crossover with retail network – pointing to market-share growth

Age & Gender: 54% under-45, 64% female

Average Booking Size: $1823 international, $474 domestic (average booking size is 2-2.5 times higher in-store)

Short Window: 40% of domestic bookings for departure within 7 days

18-24 6%

25-34 28%

35-44 20%

45-54 19%

55-64 16%

65+ 11%

Percentage of Bookings By Age Group

54% of online bookings are

made by under-45s

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HOME-BASED/INDEPENDENT CONTRACTOR

Developing a Global Footprint

Networks in place in Australia, NZ, Canada, USA & South Africa – delivered circa $380m in TTV during FY19

Circa 10% TTV growth in early FY20 trading

Small acquisition recently in Canada (Ixtapa Travel) – entry to a new province (Saskatchewan)

Referral & host agency models

Lower cost model offering greater flexibility for agents & convenience for customers

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SPECIALIST FLIGHT CENTRE BRAND BUSINESSES

Dedicated Offerings for Key Sectors

Flight Centre Business Travel (FCBT), Groups, Round-The-World, First & Business Class, Groups

About $430m in TTV in Australia during FY19

Additional $340m from FCBT in UK during FY19

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IGNITE: READY-MADE PACKAGE SECTOR TAKING OFF

Now 100% owned by FLT (previously 49%)

Highly productive models – opportunity to export to other FLT geographies

3 key divisions – My holidays, Flight Centre Exclusives & Rewards

Making complex packages simple for customers & consultants

My holidays (14 destination & cruise businesses) growing strongly

Circa 55% TTV growth across the business YTD

Business

Overview

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Customer Journey

1.Customer inspired by advertising across a range of channels

2.Majority of enquiries submitted via form on website

3.All bookings completed by ITG’s onsite call centre

Bookings

100% Ignite Call Centre

Enquiries

Phone (30%) Online (70%)

Inspiration (Advertising)

Press Digital Database

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Customer Journey

1.Customer inspired by advertising across a range of channels

2.Majority of enquiries in stores

3.All bookings recorded within centralised system

Bookings

Store Ignite Call Centre Online / Direct

Enquiries

Store Phone Online

(Inspiration)Advertising

Press Digital Store Database (limited)

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FY20: GUIDANCE TO BE PROVIDED AT AGM (Nov 7)

Q1: Challenging Comparative

•Ongoing TTV growth but underlying profit below prior year & initial expectations for the period

•Tracking against the PCP’s strongest trading period

•Continuation of subdued trading in Australia – most evident in leisure sector

•Unrest/macro uncertainty in some key geographies, including the UK (Brexit)

•Downturn in travel to Dominican Republic (safety concerns) impacted US leisure business

•Minimal impact from Thomas Cook collapse but circa $7m in costs likely to be incurred in re-accommodating Bentours/Tempo customers

•Lower interest earnings during Q1, given interest rate cuts in Australia during past 12 months

• Underperformance - soft Q1 operating results from touring & DMC businesses

Q2: Stabilisation

•Expecting results to stabilise in near-term – like-for-like trading conditions from now on in Australia

•EBA costs also like-for-like from October 2019 ($4million headwind during Q1)

•Gross margin recovery

•November-December expected to provide a more meaningful comparison of current year trading but underlying FY20 1H profit likely to be below $140.4m FY19 !H result

2H: Recovery

•Opportunity to achieve stronger growth in overseas earnings as conditions improve/concerns abate

•Like-for-like cost comparisons as year progresses:

•Additional consultancy fees incurred early in FY20 (IT & other reviews)

•Upside – corporate SME technology investment

•Interest expense (debt facilities taken on during PCP to fund acquisitions)

•Possible benefits from recent interest rates cuts & tax refunds in Australia during peak booking periods for bigger ticket international holidays

•Leisure network enhancements – people & shop networks rightsized

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QUESTIONS?