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1 Fr persnal use nly Statement t Australian Securities Exchange August 23, 2018 FLIGHT CENTRE TRAVEL GROUP RELEASES RECORD FULL YEAR RESULTS Highlights Recrd underlying prfit befre tax (PBT) f $384.7millin (Actual: $363.5millin) Near tp f upgraded guidance range ($360millin-$385millin) 16.8% year-n-year grwth and 2% higher than recrd FY14 result Recrd Ttal Transactin Value (TTV) f $21.8billin Mre than $1.7billin 8.5% abve recrd FY17 result New sales milestnes established in all cuntries Diversity a strength 49% f TTV generated utside Australia $151millin prfit cntributin frm EMEA and Americas businesses Successfully executing key strategies Prgressing twards lnger term business transfrmatin (BT) targets Prductivity, cst margin & net margin imprvements Cntinued investment in future grwth drivers New mdels, new gegraphies, new prducts & new systems Glbal GDS deplyment cmpleted (FLT s largest system change) Leisure Rebrand & Grw (R&G) plan initiated in Australia Strng sharehlder returns Recrd underlying EPS f $2.79 FY18 Result Overview THE Flight Centre Travel Grup (FLT) has annunced recrd results fr the 2018 fiscal year (FY18). In releasing audited accunts fr the year t June 30, 2018, FLT tday revealed that it had achieved: TTV f $21.8billin this exceeded FLT s previus best result (FY17) by mre than $1.7billin r 8.5%; and Flight Centre Travel Grup Limited ABN Grey Street, Suth Brisbane QLD 4101 AUSTRALIA

2 Fr persnal use nly A $384.7millin underlying PBT a result that was $55.2millin (16.8%) higher than FY17 and $8.2millin abve the recrd $376.5millin FY14 result These new milestnes led t strnger sharehlder returns in the frm f underlying earnings per share f $2.79 and fully franked dividends ttalling $1.67 per share ($1.07 per share final dividend declared tday plus the 60 cents per share interim dividend paid in April). FLT managing directr Graham Turner said key result drivers included: FLT s internatinal businesses, which delivered strng prfit grwth and generated 49% f grup TTV during a year f significant disruptin and change in Australia Cntinued develpment acrss the cmpany s three cre sectrs leisure travel, crprate travel and its in-destinatin travel experiences netwrk (TEN) Successful strategic executin, which led t further prductivity gains; and Benefits flwing frm the BT prgram, as FLT achieved its TTV and underlying cst targets in additin t making slid prgress twards its FY22 net margin gal The cmpany s recrd results highlight its business mdel s strength, its nging relevance t custmers glbally and its increasing diversity, Mr Turner said. The Americas and EMEA businesses perfrmed particularly well and tgether generated a $151millin prfit, which mre than dubled their cmbined results frm just tw years ag. T put these cmbined results in cntext, abut 40% f FLT s underlying FY18 PBT came frm the Americas and EMEA, cmpared t just 15% five years ag. This is a prmising sign fr the future, given the size f these markets particularly in crprate travel and ur relatively small market-share. While there is still wrk t be dne in the leisure sectr, we are als starting t see sme psitive signs, with the Canada and US leisure businesses prfitable fr the first time since FY11 and FY12 respectively and the UK leisure business recrding slid prfit grwth. At June , FLT had a glbal cash and investment pl ttalling $1.48billin, which included $444.5millin in cmpany cash plus $108.5millin in cmpany investments. Debt ttalled just $35.5millin, leaving FLT in a $517.5millin psitive net debt psitin. In light f this strng cash psitin, the directrs tday declared the $1.07 fully franked final dividend (payable n Octber 12, 2018 t sharehlders registered n September 14, 2018). The cmbined FY18 dividend payments f $1.67 per share represent a 60% return f NPAT t sharehlders, which is at the tp f the cmpany s current dividend plicy (50-60%). FLT cntinues t review its cash and debt psitins alng with its capital management plicy t ensure that it is managing its balance sheet apprpriately, given the industry s vlatility and FLT s desire t grw the business fr sharehlders lnger term benefit. Flight Centre Travel Grup Limited ABN Grey Street, Suth Brisbane QLD 4101 AUSTRALIA

3 Fr persnal use nly FY18 Result Summary: TTV, Prfit & Margins FLT generated recrd TTV in each f its gegraphic segments and in all cuntries, as the cmpany delivered its 22nd year f TTV grwth in 23 years as a listed entity. The crprate travel businesses generated 35% f grup TTV, cmpared t 31% five years ag, and cllectively recrded 16% TTV grwth t $7.7billin. Glbally, the FCM business alne wn $1billin in new accunts during FY18 as FLT cnslidated its psitin as ne f the wrld s tp tier crprate travel managers. Underlying PBT, at $384.7millin, was at the tp end f FLT s upgraded guidance ($360millin- $385millin) and was underpinned by the strng grwth achieved in bth the Americas and EMEA segments and a slid turnarund in Asia. Underlying PBT fr bth FY18 and FY17 has been adjusted t exclude the impacts f varius nnrecurring items. Specifically, these were: The $4.1millin lss incurred in FY17 when FLT exited the Emplyment Office jint venture; and $13.3millin in csts and penalties related t the lng-running cmpetitin law test case in Australia, which was finalised during FY18, plus an $8millin hliday leave adjustment in New Zealand* Actual r statutry PBT fr FY18 increased 11.7% t $363.5millin (FY17 $325.4millin). Incme margin (revenue as a percentage f TTV) decreased, as expected and largely as a result f nging mix changes, specifically further rapid grwth in several lwer incme margin businesses, which tgether generated almst 30% f grup TTV at a cmbined incme margin f just under 7.3%. Underlying cst margin (csts as a percentage f TTV) imprved by 50 basis pint (bps) t 11.2% FLT s best result since FY07 t mre than ffset this incme margin decrease. This cst margin imprvement resulted in a 12bps net margin imprvement (prfit befre tax as a percentage f TTV) t 1.76%. Net margin grwth, which was a key BT prgram target, was driven by: Slwer verall cst grwth and efficiency gains, as utlined in the BT sectin The remval f sme lss-making businesses A turnarund in sme ther businesses that had histrically generated lsses, including the Nrth American leisure businesses; and Strnger returns frm sme businesses that have nt histrically been materially prfitable. Examples include FX business Travel Mney Australia and nline travel agency BYOjet Flight Centre Travel Grup Limited ABN Grey Street, Suth Brisbane QLD 4101 AUSTRALIA

4 Fr persnal use nly FY18: Investment in Future Grwth Drivers While cst cntrl is an nging pririty, FLT als cntinues t invest in its key fundatins t drive future revenue and TTV grwth. During FY18, the cmpany deplyed its new pint-f-sale system (GDS) in Australia and New Zealand, which brught the tw-and-a-half year glbal prject t an end. Deplyment adversely impacted TTV in the shrt-term, while training was underway and while nrmal recruitment activities were placed n hld, but the new system shuld help FLT achieve ne its primary strategic bjectives imprving prductivity in the future, as has been the case in ther markets verseas. Shrtly after the GDS transitin was cmpleted, the Rebrand & Grw (R&G) plan was initiated in Australia. Under this leisure market-share grwth plan, the mderately prfitable Escape Travel and Cruiseabut brands were merged with the strnger and mre prfitable Flight Centre and Travel Assciates brands. Sme 1200 cnsultants frm 250 Escape Travel and Cruiseabut shps 15%-20% f the cmpany s Australian leisure wrkfrce were redeplyed as the cmpany mved t create three strnger leisure business streams in Australia targeting: The mass market (Flight Centre and BYOjet) Premium travellers (Travel Assciates and Travel Partners); and The yuth sectr (Student Flights, Tpdeck and StudentUniverse) Other significant investments during FY18 included: A number f small acquisitins** t blster FLT s leisure, crprate and TEN businesses The launch f a start-up US hme-based agency netwrk, Independent by Liberty Travel, t tap int a rapidly expanding industry segment. Tgether with Independent by Flight Centre in Canada, FLT nw has 500 hme-based agents acrss Nrth America Investment in the FCM Germany start-up t give it the scale necessary t service FLT s crprate clients; and Cntinued investments in FLT s digital transfrmatin Digital transfrmatin has seen new respnsive websites built fr several businesses, including Liberty Travel and Travel Mney Oz, native apps revamped (StudentUniverse) and further investment in nline capabilities and the cmpany s glbal leisure platfrm t deliver better bking engines fr htels and cruises and new lead generatin slutins. In Australia, FLT has als mved t intrduce a new wage mdel fr its leisure sales peple. The new mdel is expected t be intrduced during FY19 as part f an Enterprise Bargaining Agreement (EBA), which the cmpany is currently designing in cnjunctin with its peple. Flight Centre Travel Grup Limited ABN Grey Street, Suth Brisbane QLD 4101 AUSTRALIA

5 Fr persnal use nly While the EBA will increase wage csts, it is an imprtant investment that will ensure FLT s leisure sales peple perate under a simpler system and are better rewarded in terms f bth pay and verall cnditins. FY18: Segmented Results Nine cuntries generated recrd PBT during FY18: The USA, Canada and Mexic, as prfit in the Americas mre than dubled The UK, Netherlands, Suth Africa and UAE in the EMEA segment; and Singapre and Malaysia in the Asia segment In the Australia/New Zealand segment, the cmpany recrded reasnable TTV grwth. The grwth rate f 4% was, hwever, sfter than nrmal, as a result f the GDS and netwrk changes that were taking place in the Australian leisure business. The Australian crprate business, which was less impacted by the disruptin, recrded slid TTV grwth. Transfrmatinal csts, including csts assciated with the R&G plan, have been recrded in business as usual results, rather than separated as nn-recurring, and this cntributed t a year-nyear prfit decrease in Australia. In New Zealand, underlying PBT increased 14%, with the acquired crprate and hme-based leisure businesses making a slid cntributin. Within the EMEA segment: The UK business again perfrmed well, with crprate TTV exceeding $1billin fr the first time and leisure results imprving as the business transitins t a lng haul, tailr-made hliday specialist The crprate businesses n cntinental Eurpe, which have given FLT a presence in sme key markets, generally perfrmed in line with expectatins; and The Suth Africa and UAE businesses bth delivered recrd prfits, with prfit mre than dubling in the UAE, despite the leisure business s clsure csts Within the Americas, FLT s secnd largest segment by sales, the cmpany grew strngly in crprate travel and benefited frm the significant turnarund in leisure results. Result highlights included: Strng crprate results in the USA, with bth the FCM and Crprate Traveller businesses perfrming well and generating almst $1.7billin in TTV Mdest USA leisure prfits, after five years f lsses, as the business started t benefit frm the prductivity, cst reductin and ther strategic initiatives that have been implemented in recent years; and Flight Centre Travel Grup Limited ABN Grey Street, Suth Brisbane QLD 4101 AUSTRALIA

6 Fr persnal use nly Slid grwth in Canada fuelled by slid crprate results, the additin f Quebec-based Les Vyages Laurier Du Valln (LDV) and the return t leisure prfitability fr the first time since FY11 Factrs that have cntributed t this leisure turnarund in Canada have included: A new netwrk plan, which has seen FLT clse sme under-perfrming shps and fcus n a smaller but strnger netwrk cncentrated in three prvinces, British Clumbia, Ontari and Alberta New marketing and prduct strategies geared twards attracting a mre affluent custmer base A strnger digital ffering; and Grwth in new sectrs, including grups and the hme-based agency mdel The Asia businesses als cntinued their recvery and tgether made a slid prfit cntributin f $5.2millin, while generating abut $1.4billin in TTV (6% f grup result and a 30% year-n-year increase). FLT s TEN businesses cllectively delivered a small prfit. Turing businesses Tpdeck and Back-Rads were again prfitable, as were the Buffal and Olympus Turs destinatin management cmpanies (DMCs). BHMA, a small htel management business that was acquired during FY18, made a mdest lss, as expected during this early stage f its develpment. FY18: Strategic Update The BT prgram that was initiated late in FY17 t ensure FLT achieved scalable and prfitable grwth thrughut the ecnmic cycle has started t gain mmentum, with the cmpany making slid prgress twards its targets. Specifically, these targets are: 7% average TTV grwth per annum in cnstant currency. FLT cmfrtably exceeded this target during FY18 and has set its sights n cntinuing this grwth rate thrugh t FY22 A return t a 2% underlying net margin by the end f FY22. FLT recrded a 12bps imprvement during FY18 t 1.76%; and Less than $100millin underlying cst grwth during FY18 n a cnstant currency basis, a target that FLT achieved. Underlying csts*** increased by $91millin (3.9%), which translated t $85.4millin (3.6%) grwth n a cnstant currency basis A new cst-related target is in place, with the cmpany nw targeting an underlying 10% cst margin by the end f FY22. Flight Centre Travel Grup Limited ABN Grey Street, Suth Brisbane QLD 4101 AUSTRALIA

7 Fr persnal use nly Pririties during the prgram s first year included brand ratinalisatin t simplify the business, glbalisatin, particularly in the air, land and IT spaces, and cst cntrl/efficiency. As part f its brand ratinalisatin, FLT clsed, dwnsized r changed strategic directin with several lss-making r mdestly prfitable businesses. These included: The lss-making UAE leisure business, which was clsed The small leisure peratins in Singapre and Hng Kng, which were dwnsized and pivted twards crprate travel t imprve bttm-line perfrmance; and The leisure businesses in Canada and the USA, which nw have smaller but strnger shp netwrks In Australia, the cmpany clsed abut 90 prly lcated shps and redeplyed the sales staff t better sites as part f a new netwrk plan. FLT als initiated its R&G plan t develp a strnger leisure brand stable. FLT s success in glbalising its business was evidenced by the strng cntributins its internatinal businesses made t grup results Glbalisatin has als helped the cmpany capitalise n varius synergies within its air, land and IT businesses using different gegraphies t develp and pilt glbal initiatives. Fr example, a glbal Ticket Centre was created during FY18, fllwing a successful trial invlving the Australian business, t replace the reginal mdels that were in place. T slw cst grwth during FY18, the cmpany streamlined its supprt structures in varius areas and initiated an ut-surcing prgram, starting with web supprt areas and sme finance functins. Further utsurcing pprtunities are being cnsidered. The transfrmatin fcus will nw shift t an investment and business engineering phase that will take place glbally ver the next tw years acrss the three key divisins leisure, crprate and the TEN. This phase will be geared twards: Making the cmpany mre prductive and efficient Delivering a better and mre cnsistent custmer experience; and Scalable grwth sustainable revenue and cst increases There will als be an nging fcus n digital transfrmatin t deliver: Further nline leisure sales grwth n tp f the 20% grwth achieved during FY18 Lead management technlgies, prducing quality leads fr FLT s expert peple Cntinued imprvements t the cmpany s websites and native apps; and Flight Centre Travel Grup Limited ABN Grey Street, Suth Brisbane QLD 4101 AUSTRALIA

8 Fr persnal use nly Digital slutins that will enhance prductivity and/r the custmer experience FY19: Outlk FLT expects further prfit and TTV grwth during FY19 and will prvide mre specific market guidance at its Annual General Meeting in Octber. This is in line with recent plicy and allws the cmpany t prvide mre meaningful guidance, given that it cmes after first quarter trading is cmplete. Factrs that are expected t help drive FY19 results include: Onging market grwth the travel sectr is expected t grw at a 3.6% cmpunding annual grwth rate glbally thrugh t 2036 (Surce: IATA) Psitive mmentum, with the cmpany tracking abve the prir crrespnding perid in early FY19 trading Further cst, efficiency and revenue benefits flwing frm the BT prgram; and Cntinued strng cntributins frm the verseas businesses, particularly in the crprate travel sectr In Australia, the cmpany expects t surpass its FY18 achievements, ff the back f nging crprate travel grwth and imprved leisure travel results. Leisure imprvement in Australia is expected t be driven by: Prductivity grwth, nw that the GDS migratin is cmplete Imprved cnversin rates thrugh new sales peratins, technlgy, autmatin and marketing initiatives Peple grwth, as the cmpany again fcuses n recruitment and retentin; and Better netwrk returns nw that prly lcated shps have been clsed and a new grwth plan is in place t ensure the right shps are in the right A-grade lcatins Average internatinal airfare prices are at r arund prir year levels, which means travellers cntinue t enjy the benefits flwing frm the unprecedented discunting that tk place during FY17. At this stage, FLT expects mdest fare mvements this year nrmal annual fluctuatins althugh rising il prices culd fuel mre significant medium term price grwth. Within FLT s businesses, the cmpany sees imprvement and grwth pprtunities acrss its three cre sectrs and is tailring strategies accrdingly, Mr Turner said. In leisure travel, fr instance, the cmpany will cntinue t invest in its cre Flight Centre brand, while als targeting the premium and yuth sectrs thrugh brands like Travel Assciates, Liberty Travel in the USA and StudentUniverse. We will cntinue t grw in emerging areas, including the hme-based agency sectr and nline, and will target new revenue streams and mdels thrugh initiatives like Flight Centre Exclusives, a new last minute package range that has just been launched in Australia. Flight Centre Travel Grup Limited ABN Grey Street, Suth Brisbane QLD 4101 AUSTRALIA

9 Fr persnal use nly In crprate travel, grwth is expected t be driven by accunt wins in bth the FCM and Crprate Traveller businesses. FCM, which specialises in larger, managed accunts, is cming ff a very strng year glbally and nw ranks amng the glbal leaders in the sectr. The cmpany is regularly being invited t pitch fr and is winning flagship multi-natinal accunts. This success is in part due t FCM s leading technlgy suite, which is blended with an equally strng peple ffering and includes the SAM :] artificial intelligence app. FLT will cntinue t invest in this tech suite and have just annunced an exclusive agreement with Serk t develp Savi, the next generatin technlgy ffering. The SME fcussed Crprate Traveller brand has als strengthened its technlgy ffering, with Yur CT deplyed as a new prtal fr SME custmers during FY18. Within the TEN, FLT will cntinue t integrate and enhance its brand and business stable, while als cnsidering acquisitin pprtunities, particularly in the htel and DMC sectrs. In the aviatin, land and cruise sectrs glbally, FLT has develped lng-standing and mutually beneficial relatinships with many suppliers. The cmpany intends t build n these relatinships and is nw generally seeking lnger term cntracts with partners. FLT s 10-year Virgin Australia cntract was ne f the first lng-term agreements and the cmpany has taken steps t replicate this with ther key airlines, including Etihad and Singapre Airlines. FLT is als taking an active rle in new aviatin sectr develpments and is pleased t be launch partners f bth Amadeus and Sabre s NDC enabled slutins. These initiatives are geared twards shaping the future f travel distributin and are practively bringing key players t the table t deliver utcmes that will benefit all parties. ENDS Media & investr enquiries t haydn_lng@flightcentre.cm, Additinal Details FLT s cnference call fr analysts and investrs will be held at 10.30am Queensland time tday.. Call details are as fllws: Date: Thursday, August 23, 2018 Time: 10.30am (QLD) Dial-in details: Phne (02) r Cnference ID ) Ftntes * The New Zealand hliday leave adjustment mirrrs the adjustment that many ther cmpanies, gvernment departments and rganisatins are nw making in relatin t the cuntry s Hlidays Act. The gvernment has acknwledged widespread nn-cmpliance with this act, as a result f varius factrs including issues with the act itself, Flight Centre Travel Grup Limited ABN Grey Street, Suth Brisbane QLD 4101 AUSTRALIA

10 Fr persnal use nly and has nw frmed a Hlidays Act Wrking Grup t find a better slutin. Like ther affected cmpanies and rganisatins, FLT will ntify and repay all affected past and present emplyees. ** FLT blstered its cre divisins during FY18 with the fllwing acquisitins: Leisure Travel Partners and Travel Managers (hme-based agencies) Crprate - Executive Travel (NZ) and LDV (Canada) TEN Olympus Turs and BHMA ***FLT s underlying csts and underlying cst prjectins d nt include the turing business s csts. The ACCC test case penalty and csts and NZ hliday leave adjustments were nt included in FY18 underlying csts, while the Emplyment Office expense was nt included in underlying FY17 csts Flight Centre Travel Grup Limited ABN Grey Street, Suth Brisbane QLD 4101 AUSTRALIA