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Investor Presentation

Investor Presentation. Information for Professional Investors - please see Disclaimer. Presentation. Online Travel – Internationally The Webjet Model Webjet Results and Forecasts Base Forecast Gulf Impact Margin Improvement Capital Raising Why Invest?.

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Investor Presentation

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  1. Investor Presentation Information for Professional Investors - please see Disclaimer

  2. Presentation • Online Travel – Internationally • The Webjet Model • Webjet Results and Forecasts • Base Forecast • Gulf Impact • Margin Improvement • Capital Raising • Why Invest?

  3. Online Travel is Growing at Four Times Normal Travel • The worldwide online travel market is growing at 30% per annum. • The value of U.S. online travel will grow from US$25 billion in 2001 to around US$65 billion by 2005. Source: PhoCus Wright

  4. US$ US Online Travel to grow from 12% to 26% by 2005

  5. International Comparisons2002 v 2001 Results • Expedia – US/EU • Gross Sales 5.3B up 82% • Net income 66M v 21M loss • Hotels Sales up 156% and tour packages up 170% • Ebookers – EU • Gross Sales 273M up 52% • Net loss 12M v 26M loss - halved • Hotels Sales up 124% and tour packages up 163%

  6. Overseas Travel Stocks – Expedia (US) and ebookers (EU) Sept 11 Gulf

  7. Expedia Outperforms the Dow Jones

  8. Webjet Model • Pure online travel company • Local version of high growth overseas players • Low cost base allows revenue growth to flow to bottom line • Strategic Galileo alliance and shareholding ensures access to air inventory • Broadening base into high growth hotel and tour package sales

  9. Webjet – Broadening Distribution • Hotels • Launching ‘Bookabed’ website • Worldres relationship • Galileo/Cendant relationship • Travel Industry • White Label other Travel Brands • Technology • Dynamic Packaging • Galileo/Microsoft relationship

  10. Online Travel Stocks - Australia Gulf

  11. Gulf War Impact – Sales A$M Defensive earnings base – 65% Webjet sales are domestic travel

  12. Financial Scenarios • Scaleable Model • Base Line • Gulf Impact • Margin Improvement • What If Graph • Impact New Land Arrangements

  13. Scaleable Business Model 20 18 16 Net Revenue 14 Total Expenses $m p.a 12 10 Net Profit 8 6 4 2 2002 2003 2004 2005 Financial Year

  14. Base Line - What If Scenario

  15. Gulf Impact - What If Scenario • Assumes Gulf War Impact on Travel Limited to First Half 2003

  16. Margin Improvement - What If Scenario • Assumes that Margin Improvement first reflects in 2H 03 • and is sustainable • Expected higher margins from tour package and hotel sales in 1H 04 • excluded, as is any development cost

  17. What If Scenarios

  18. Broader Land Distribution - What If Scenario • Assumes Aggregate Impact of New Land Arrangements • Bookabed, Galileo/Cendant,Dynamic Packaging • Land Margins of 8% • Tapering Off of Existing Business Growth Rates • TSA Platform estimated cost of $2M amortised over 5 years

  19. Broader Land Distribution - Next 2 Years What If Gross Sales Axis Net Profit Axis Breakeven

  20. Capital Raising • Raising $3.6M • Galileo contributing $1.8M to grow their shareholding from 4% to 20% • Webjet will raise $1.8M via Institutional placement and Shareholder Purchase Plan (SPP - underwritten by Intersuisse). • Webjet has completed arrangements for $1.0M • Price = 5 cents per share • SPP closes 24 April 2003

  21. Funds to be Used For • Strengthen Balance Sheet - $1.8M • Microsoft (MS) Development - $1.8M • MS Dynamic Packaging Development • Overseas Growth Model • Higher Margins from Hotels and Tour Packaging • E.g margins of 8-10% v 7-8% on Air • To be completed at MS Development Center in Sydney • By early 2004

  22. Galileo • Wholly owned subsidiary of Cendant Corp (NYSE:CD). Market Cap 14 Billion. • Has market share of one third of all automated travel reservations worldwide. Competitors are Sabre/Amadeus • Galileo provides 45,000 travel agents access & bookings for • 501 airlines • 31 car rental companies • 51,000 hotel properties • 400 plus tour operators and all major cruise lines.

  23. Cendant Travel Services

  24. Significance of Galileo to Webjet • Ability to leverage off Galileo’s global footprint. • Offers a superior booking interface, with increased reservation capacity and functionality. • Access to Cendant Group companies such as Avis, Budget, Best Western Hotels and RCI timeshare. • Establishes Webjet as launch partner in Australia for Galileo’s Trip.com business, offering cross referral of customers and products.

  25. Attractions of the Webjet Model • Proven Sustainable Business Model • Overseas Online Travel Parallels to follow • Online travel model is here to Stay • Webjet is the Australian Market Leader • Scaleable model - High Growth at low Marginal Cost • Improving Margins • Distribution Base Improving – Industry Rationalising • Move into Dynamic Packing with Microsoft/Galileo Information for Professional Investors - please see Disclaimer

  26. Appendix - 20 Largest Shareholders Pre-Funding

  27. Directors and Management • Allan Nahum – Chairman, Current Partner Meyrick Webster • David Clarke – MD, former CEO Jetset Travel • Ben Lochtenberg – Deputy Chairman former Chairman, Orica Ltd • John Lemish – Operations Director, 20 yrs travel industry experience • Steven Scheuer – Non Exec Director • Dean Maidment– Business Development Mgr • Richard Noon - Corporate Affairs, 25 yrs travel

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