Webjet Limited ABN 68 002 013 612

Annual report for the year ended 30 June 2016

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Webjet Limited ABN 68 002 013 612 Annual report - 30 June 2016

Contents

Page

Corporate directory 1 Directors' report 2

Directors 2 Principal activities 3 Dividends 3 Review of operations 3 Significant changes in the state of affairs 5 Subsequent events 5 Likely developments and expected results of operations 5 Environmental regulation 5 Meetings of directors 6 Insurance of officers and indemnities 6 Non-audit services 6 Auditor's independence declaration 6 Rounding of amounts 7

Remuneration Report 9 Corporate Governance Statement 31 Financial statements 48 Directors declaration 113 Independent auditors report 114 Shareholder information 116

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Webjet Limited

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Corporate directory

Directors David Clarke

Chairman and Independent Non-Executive Director

John Guscic Managing Director

Don Clarke Independent Non-Executive Director

Steven Scheuer Non-Executive Director

Roger Sharp Independent Non-Executive Director

Brad Holman Independent Non-Executive Director

Shelley Roberts (appointed 30 April 2016) Independent Non-Executive Director

Secretary Michael Sheehy

Principal registered office in Australia Level 2 509 St Kilda Road Melbourne Victoria 3004 Australia (03) 9820 9214

Share register Computershare Investor Services Pty Ltd Level 5 115 Grenfell Street Adelaide South Australia 5000 (08) 8236 2300

Auditor BDO Audit (SA) Pty Ltd Level 7, BDO Centre 420 King William Street Adelaide South Australia 5000

Solicitors Minter Ellison 525 Collins Street Melbourne Victoria 3000

Bankers National Australia Bank Level 30, 500 Bourke Street Melbourne Victoria 3000

HSBC Level 10, 333 Collins Street Melbourne Victoria 3000

Website www.webjet.com.au

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http://www.webjet.com.au/

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Webjet Limited Directors' report

30 June 2016

Your Directors present their report on the Consolidated Entity consisting of Webjet Limited and the entities it controlled at the end of, or during, the year ended 30 June 2016.

The Board currently comprises seven Directors, including six Non-Executive Directors. The Directors are:

(i) David Clarke - Chairman and Independent Non-Executive Director (Age: 69)** (ii) John Guscic - Managing Director (Age: 52) (iii) Don Clarke - Independent Non-Executive Director (Age: 62)** (iv) Steven Scheuer - Non-Executive Director (Age: 59) (v) Roger Sharp - Independent Non-Executive Director (Age: 55) (vi) Brad Holman - Independent Non-Executive Director (Age: 54) (vii) Shelley Roberts - Independent Non-Executive Director (Age: 41) **Note: David Clarke and Don Clarke are not related.

Directors

David Clarke (Independent Non-Executive Chairman) Held senior management positions with the Jetset travel Consolidated Entity from 1977 to 1995. He is regarded as pioneering the introduction of wholesale packaging through distribution access in Australia and overseas, the development of an integrated franchise structure and one of the highest ranking travel brands in Australia in the 1990's. David was Managing Director of Webjet from 1999 to January 2011.

John Guscic BEc, MBA (Managing Director) Former Chief Commercial Officer of GTA (a Travelport company). He has been instrumental in identifying and shaping new business ventures; forging strong, strategic relationship and managing both multinational and local customer retention and growth. Prior to Travelport, he founded his own successful strategic consultancy advising internet start-ups. Prior to his appointment as Managing Director in February 2011, John has been a Director since 2006.

Don Clarke LLB (Hons) (Independent Non-Executive Deputy Chairman) Don is a consultant with the law firm, Minter Ellison, having recently retired after 27 years as a corporate partner of the firm. He has extensive commercial law and business experience from over 30 years advising ASX listed and private companies across a broad range of industries on corporate law, governance and investment issues. He has been associated with Webjet in his capacity as a legal adviser or director for over 15 years. Don is also a director of the ASX listed investment company, Contango Income Generator Limited, and several other private companies.

Steven Scheuer BBus (Acc), CPA (Non-Executive Director) After spending a number of years in public accounting practice, he established his own manufacturing and importing business using strong and well known clothing brand labels throughout Australia and New Zealand. Steven will be retiring as a Director of Webjet at the conclusion of the 2016 AGM.

Roger Sharp BA LLB (Senior Non-Executive Independent Director) Roger Sharp has more than 25 years' experience in investing, financing and running growth companies in global markets. Based in Singapore, he currently serves as a Director or Chairman of Asia Pacific Digital Limited, North Ridge Partners Pty Limited and a microcap New Zealand listed company, GeoOp Limited. F

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Webjet Limited Directors' report

30 June 2016 (continued)

Directors (continued)

Brad Holman BCom (Independent Non-Executive Director) Has over 20 years experience working in and providing services to the travel industry, including President for Travelports Asia Pacific, Europe, Middle East and African Operations. Brad more recently was the President for International Markets for Blackbaud a NASDAQ listed software and services company specifically focussed on serving the nonprofit community, he was responsible for developing and leading the companys international business strategy and new market entry. Brad left Blackbaud in November 2015 after serving five years in the role.

Shelley Roberts (appointed 30 April 2016) B.Bus Sci, ACA, GAICD (Independent Non-Executive Director) Shelley Roberts has extensive commercial and operational experience in the travel sector through prior management roles at Tiger Airways Australia, easyJet, Macquarie Airports and her present role as the Executive Director, Aviation Services at Sydney Airport. Shelley's recent appointment in April 2016 as a Non-Executive Director has also enhanced the diversity and finance, accounting and operational management experience of the Board.

Principal activities

The principal activity of the Company is the provision of online travel bookings. The Consolidated Entitys business consists of a B2C division (comprising the Webjet, ZUJI and Online Republic brands) and a B2B division (comprising the Lots of Hotels and Sunhotels br