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1 COMPANY STRATEGY UPDATE John Guscic Managing Director 26 November

2 What is Webjet Limited? Online travel company selling to both consumers and business organisations B2C Leading consumer brands (Webjet and ZUJI) Regional coverage B2B Australia/New Zealand Singapore/Hong Kong Sells hotel rooms to travel agent partners Goal to build a global B2B business Start-up operation in Middle East (LOH) Acquired existing business in Northern Europe (SunHotels) B2C Travel WEBJET LIMITED B2B Travel 1

3 WEBJET LIMITED B2C Travel B2B Travel Target EBITDA growth rate 5-10% pa for next 5 years Target EBITDA growth rate 20% pa for next 5 years 22

4 Unsaved Document / 21/09/2012 / For 14:14 personal use only B2C TRAVEL Online travel for the consumer market 3

5 WEBJET LIMITED B2C Travel B2B Travel Australia New Zealand 44

6 Webjet Offer a range of air and non-air products AIR Air Domestic and International flights Booking fee includes our 30 minute price guarantee NON -AIR Hotels Over 150,000 hotels and 1 million hotel rooms on sale each day Book accommodation in conjunction with flights or on a standalone basis Packages Dynamic packages (create your own) Static packages Webjet Exclusives (launched June 14) Cruise Online offering with bookings made online or through call centre Launched August 14 Car Hire Range of car hire options available in conjunction with flight bookings or on a standalone basis Insurance Travel insurance available in conjunction with flight bookings or on a standalone basis TTV Split (%) FY14 Air Non-Air Air remains largest contributor to overall TTV but has fallen as non-air products grow 5

7 Webjet - Air Market environment remains flat Our core market (Australian domestic travel) continues to be flat In FY14, domestic leisure market growth ~0% (BITRE) FY15 YTD domestic passenger traffic remains flat (1) Source: We expect the market to remain flat for the remainder of FY15 TTV (%) FY14 Bookings (%) FY14 Our goal is to outperform the market #1 OTA brand Offer customers greatest convenience and choice Loyal customer base Domestic International Domestic International Note: Represents split for Webjet business only (1) Domestic passenger growth - July 2014 down 1.4% compared to July 2013; Aug 2014 down 1.7% compared to Aug 2013; Sept 2014 up 0.1% compared to Sept Source BITRE 6

8 Webjet - Air Competitive environment relatively unchanged Commission structures Airlines Source: xx Domestic 0% International Hotels ~10-25% Booking fees - Air ~ 5% plus over-rides Australia International markets Webjet Flight Centre Expedia x Airlines x x Key competitors - Airlines - Other OTAs Metasearch has not been a key threat to date Structure of Australian market limits impact 0% commission for domestic airfares and price set by airlines Higher margin accommodation space more attractive Booking fees Booking fees as % revenues continue to fall 29% revenues in FY14, down from 59% 3 years ago TTV margin TTV margin expected to be 9% on ongoing basis 7

9 Webjet - Air Resuming growth in the core business Despite a flat domestic leisure market, bookings for FY15 YTD have grown more than 10% compared to the same period last year Website improvements providing better consumer experience Improved onsite merchandising New mobile sites and Apps Targeted tactical and brand marketing campaigns delivering results Conversion continue to improve IT migration now complete Record TTV each month FY15 to date July, August, September and October have each reported record TTV for that respective month 8

10 Webjet - Air Remains #1 OTA brand in Australia Source: Hitwise internet visitation reports, Online Travel Agency Category

11 Webjet - Non air Growing higher margin revenue streams Non-Air Initiatives Hotels No longer a key growth focus due to intense market competition but continues to perform well in path TTV expected to remain constant going forward Packages Dynamic packages allow customers to create their own custom packages Webjet Exclusives has shown good growth since launch in June 2014 Cruise On and offline booking system Completes travel offering Car Growing significantly faster than the core air business Insurance Growing significantly faster than the core air business 10

12 WEBJET LIMITED B2C Travel B2B Travel Australia Singapore Hong Kong 11

13 ZUJI Rationale for acquisition Leading OTA in Singapore and Hong Kong; with substantial operations in Australia Acquired from Travelocity in March 2013 for US$25 million Rationale for acquisition (1) Status Regional expansion in OTA space Enhance already strong online position in Australia Back office synergies Gain scale in emerging hotels segment x Platform for further growth in Asia? (1) From Webjet presentation dated 12 December

14 Asian Market - Background ZUJI Asia offers attractive growth potential Online travel growth rates are higher than Australia/ New Zealand Online penetration rates are low 13

15 Asian Market - Background ZUJI High LCC penetration in APAC Expanding LCC offering to meet market demand Source: CAPA 14

16 ZUJI Post acquisition performance 18 months post acquisition Business was losing $6 million EBITDA pa on acquisition Cost synergies all extracted Revenue synergies starting to flow through in Singapore and Australia Hong Kong is taking longer than expected Hotels no longer a strategic focus given intense competition in that segment Cost synergies All synergies identified at acquisition have been achieved ~$8 million pa ongoing cost synergies 40% reduction in headcount 30% fall in operating costs Office closures and relocations Revenue growth All (200+) unprofitable TTV revenue streams cut post acquisition TTV cut by 40% to $200 million (as at March 2014) Focus now on growing profitable TTV in all 3 regions Australia; Singapore; Hong Kong 15

17 ZUJI Acquisition plan timeline Business integration IT Cloud transition Cost take out Quality improvement program Chinese language sites Mobile platform LCC content FY14 FY15 FY16 Completed Completed Completed Completed Completed Completed Expected 2H Propelling the brand 16

18 ZUJI TTV growth in some markets TTV growth flowing through in 2 of our 3 markets Australia and Singapore showing growth TTV expected to be up in both markets for FY15 Better positioning of ZUJI offering in Australia and Singapore Hong Kong experiencing a difficult market environment TTV expected to be down for FY15 Increased competition impacting margins Umbrella movement TTV by region (%) FY14A HK SGP AU TTV by region (%) FY15E HK SGP AU 17

19 Unsaved Document / 21/09/2012 / For 14:14 personal use only IT TRANSFORMATION 18

20 IT What was done and why? WHAT? Rewrote entire Webjet front end and moved to Cloud platform Completed October 2013 Moved ZUJI onto Webjet platform Completed December 2013 ISSUES 18 month process Temporary management distraction Teething issues Undertaken concurrent with ZUJI acquisition WHY? Running out of headroom Cost effective IT operations Needed adaptable/ flexible technology platform to remain competitive ZUJI operating on Travelocity system Required to migrate across to Webjet post acquisition by December 2013 BENEFITS Enables introduction of new products Multi language sites; mobile sites; mobile Apps; Webjet Exclusives; dynamic packages Increases velocity of software releases Provides competitive scaleability for next 10 years 19

21 Unsaved Document / 21/09/2012 / For 14:14 personal use only B2B Providing hotel rooms to partners via the online channel 20

22 B2B Rationale for expansion into B2B market Next step in becoming a global online travel company Looking for growth opportunities Growth opportunities remain in core Australian business but market is maturing ZUJI acquisition provides B2C growth opportunities in Asia Pacific region B2B provides global diversification of revenue streams by leveraging inhouse expertise 21

23 B2B Overview of B2B market Sell hotel rooms to travel agent partners via online channel Key suppliers Hotel chains; individual hotels; third party suppliers Considerable growth opportunities Global market ~$50 Bn (1) Disintermediation of B2B providers by B2C has slowed down Fragmented market where 2 largest players have $2Bn each; no other player has >$1Bn Different markets require different approaches 100% 80% 60% 40% 20% 0% Online versus offline penetration rates 2014 US Europe ANZ Asia Middle East Online Source: Company estimates Offline (1) Company estimates 22

24 WEBJET LIMITED B2C Travel B2B Travel Middle East Africa 23

25 LOH What is it? Established in Dubai in July 2012 and launched in February 2013 Start-up to #3 in market within 16 months Annualised TTV run rate $80 million Breakeven for FY14 Unique Middle East/Africa coverage Currently in 27 markets Region offers significant growth opportunities Increase revenues in existing markets New revenues from new markets Increased margin opportunities Why Middle East? Fast growing offline market Highly fragmented market place In-house expertise facilitated start-up venture CEO expertise in B2B space Relationship based market Successful and proven team in place Market Coverage Algeria Armenia Azerbaijan Bahrain Canada Egypt Iraq Jordan Kurdistan Kuwait Lebanon Libya Nigeria Oman Pakistan Palestine Qatar Saudi Arabia South Africa Syria Tunisia Turkey UAE Uganda Ukraine UK Yemen 24

26 LOH Multi supply aggregation strategy OTHER PLAYERS Offer own inventory LOH Offer inventory from all suppliers plus directly contracted hotels TRAVEL AGENT CUSTOMERS Unique product offering for the market last room availability 25

27 LOH Sourcing strategy drives margin growth Step 1: Multi-supply aggregation Step 2: Direct contracting in key cities Step 3: Global chain dynamic inventory agreements Done Done Ongoing 12 partners integrated 1,200 agreements in place Continuing in new cities Deals completed with; Hilton, IHG, Accor, Starwood, Best Western, Wyndham, Shangri-La, Millennium, Movenpick, Iberostar, Kempinski Provides access to global inventory pools On track for 8% TTV margin for FY15 26

28 LOH Business mix Top Source Markets Key Target markets Top Destinations Saudi Arabia United Arab Emirates Qatar Turkey South Africa Kuwait United Arab Emirates Turkey Saudi Arabia United Kingdom France United States of America Considerable growth opportunities from existing and new markets 27

29 WEBJET LIMITED B2C Travel B2B Travel Europe 28

30 SunHotels What is it? Established B2B business based in Spain FY13 EBITDA EUR 2.6 million Expected on-going TTV margin 9% Attractive inventory offering 40,000 unique city and beach properties 6,000+ directly contracted including key beach properties Strong position in Scandinavian and UK markets Market leader in Sweden and Norway Top 10 in UK TTV by region (%) FY14 Sweden & Norway UK Other 29

31 SunHotels Acquisition rationale Second step in building a global B2B business Acquisition strategy more suitable for European market Unique properties difficult to access Attractive technology platform Offers attractive growth opportunities Sell more product to existing customers Expand into other European markets Opportunities for cross selling with LOH Management continuing post acquisition Acquisition details Purchase price EUR 19 million 100% Euro-debt funded $1 million acquisition costs Low FX risk Key Management Kenneth Karlsson, CEO (til July 15), then Chairman Founder and MD, SunHotels Nigel Horne, CEO Elect (from July 15) Ex Senior VP, Global Sales & Marketing, GTA 30

32 B2B 2016 and beyond Shared technology platform rollout Create common inventory pool enabling LOH and SunHotels to access inventory for their respective customer bases Combined inventory to be available to B2C businesses Rollout expected in FY16 Build global B2B business through further acquisitions Will consider appropriate acquisition opportunities to further expand global B2B presence North America Asia Considerable EBITDA potential See potential for B2B to generate 20% EBITDA growth pa for next 5 years 31

33 Unsaved Document / 21/09/2012 / For 14:14 personal use only FY15 GUIDANCE 32

34 FY15 Guidance Expect FY15 EBITDA of $27 million After expensing $1 million costs associated with acquisition of SunHotels B2C Webjet 10% growth in TTV and bookings YTD. Expect to continue for remainder of FY15 ZUJI B2B TTV growth expected in Australian and Singapore businesses HK business experiencing a difficult trading environment, impacting both sales and margins Expect breakeven for FY15 Expect to contribute $5 million EBITDA for FY15 33

35 Unsaved Document / 21/09/2012 / For 14:14 personal use only WEBJET MANAGEMENT TEAM MD and Key Executives 34

36 EXECUTIVE MANAGEMENT TEAM John Guscic Managing Director, Webjet Limited Michael Sheehy CFO Shelley Beasley Group COO Graham Anderson Head, IT Lynne Oldfield Head, Hotels Key Experience Associated with Webjet Limited since 2003 Board member since 2006; Managing Director since 2011 Extensive experience in B2B space Chief Commercial Officer, GTA based in London Managing Director, Asia-Pacific, GTA based in Tokyo Over 20 years of Finance experience Prior to Webjet, was CFO at Probuild Constructions, the $1.2bn turnover Australian division of publicly listed Wilson Bayly Holmes Ovcon Ltd Over 20 years in Travel and Travel IT experience in senior roles throughout the US and APAC Worked for globally recognized firms such as Travelport and United Airlines Over 20 years in IT and Travel in Europe and APAC Track record of delivering innovative, transformational programmes and solutions in the Travel domain Over 20 years in Travel, with extensive hotel industry knowledge Previously managed travel businesses across Australia, New Zealand, India and North America 35

37 EXECUTIVE MANAGEMENT TEAM (cont d) David Galt CEO, Australia / New Zealand Paul Ryan CEO, Webjet Exclusives Hui Wan Chua CEO, Singapore Charlie Wong CEO, Hong Kong Key Experience Substantial Travel experience, including 8 years at Webjet in senior commercial and marketing roles 13+ years in search engine, and mobile marketing Over 20 years of multinational Travel and Finance experience Held senior roles in industry leading companies such as Flight Centre and Scoopon Over 20 years of senior managerial experience in the Travel and IT industry in Asia, with companies such as Travelport and Abacus. Intimate knowledge of the complex and rapidly changing Asia travel environment. Over 15 years in senior Travel and Finance roles in Asia Held senior managerial roles with Travelocity and KPMG in the region Ossama Wagdi CEO, Lots of Hotels Kenneth Karlsson CEO, SunHotels Nigel Horne CEO Elect, SunHotels Over 35 years of hotel industry experience in the Middle East Held senior roles in industry leading companies in the accommodation sector such as Sheraton, IHG, and GTA Over 35 years of hotel industry experience in Europe Original founder of SunHotels, following a long career with Thomas Cook and various other Spanish travel companies Over 20 years of hotel industry experience Held various commercial, strategic and operational roles both regionally and globally at GTA 36

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