wilderness holdings fy 2014 financial results presentation
TRANSCRIPT
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Agenda
1
Strategic and operational review
Keith Vincent, CEO
Financial review
Ami Azoulay, CFO
Looking ahead
Keith Vincent, CEO
Strategic and operational review
2
Overview of the business:
o New executive team
o Marketing
• Consumer web site (Search Engine Optimisation) connecting with the customer!
• PR campaigns in source markets
• Brand simplification
o Sales and market areas
• North America
• Europe
• Asia
• Local (Wilderness Safaris Residents Programme)
o Service
• Sales & reservations
– Wilderness Window (Internet based reservations platform)
– Camps
o Air operations: 42 fully paid up aircraft, value of approximately USD 12 million
o Travel shops: Six offices in four countries
o Employment: 2 663
Strategic and operational review
2
Trading environment:
o Revenue in each major trading currency is up
o High levels of demand out of North America
o Demand from Europe is improving steadily
o New demand out of Asia
o Devaluation of local currencies
• Rand-based products cheaper in USD/Euro terms
• Has a positive effect on profit
Strategic and operational review
2
Outcome of prior year initiatives:
o Wilderness Window (Reservations platform)• 79 active users
• Building APIs between our platform and partner product
o Re-alignment of each operating division has produced positive results
• All regions showing positive increases
• Camp closures
– Closed non performing areas
– Allowed reconfigured flying circuits
o Two new camps opened• Kashawe - 32 beds in Zimbabwe
• Santawani - 16 beds in Botswana
o Alignment of flying circuits in each area of operations has resulted in higher passengers per seat km flown
• Passenger loads have increased from 42% to 46%
Awards
2
2014 We are Africa The Children in the Wilderness Nedbank Tour de Tuli mountain bike event won the inaugural We Are Africa Innovation Award for Most Original Itinerary
2014 Three Wilderness Collection Properties Featured in Robb Report’s Top 100 Resorts Abu Camp, Segera Retreat and North Island have been selected by Robb Report for its prestigious May 2014 “Top 100 Resorts” feature
2014 Segera Retreat Featured in Condé Nast Traveller UK and USA’s 2014 Hot Lists of the Best New Hotels in the WorldWilderness Collection’s Segera Retreat is the only hotel in Africa to make both the UK and USA Condé Nast Traveller’s 2014 Hot Lists of the editors’ favourite new places to stay
2014 Wilderness Safaris Guide, Thuto Moutloatse, Wins OUTSIDE Travel Award 2014OUTSIDE, America’s leading active lifestyle brand, has selected Wilderness Safaris guide, Thuto Moutloatse, as one of the “seven best adventure guides on the planet” in its annual Travel Awards
2014 Desert Rhino Camp Wins Experiential Travel Award from AFAR MediaWilderness Safaris is proud to announce that AFAR Media has honoured Desert Rhino Camp with a 2014 Experiential Travel Award for Best Walking Trip: Namibia
2014 Mombo and Little Mombo were listed in the US Condé Nast Traveler’s 2014 Gold List, featuring the world’s best places to stayMombo and Little Mombo were two of only three camps from Botswana to be included in the Africa and Middle East category
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Financial review
4
9
Highlights
Occupancy percentage up to 62% from 56%
Bednight sales flat despite 9% reduction in
available bednights
Revenue per available room (RevPar) increased by
23%
EBITDA increase of 39% to P151 million
All regions recorded improved operational
performance
Profit after tax up by 75% to P48 million
3
Sales mix and capacity
Revenue up 16% to P1 401 million
3
Owned Partner
56%44%
58%
42%
2014
2013
86 55
12
57
211
83 68
26
55
232
Thousands
2014
2013
Botswana41%
Namibia26%
South Africa6%
Zambezi27%
2014
Source (Pm) 2014 2013 % YOY
Partner 614 504 22%
Owned 787 701 12%
1 401 1 205 16%
Available beds
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U.S. Dollar Euro Botswana Pula Namibian Dollar S.A. Rand
90
8
86
173
332
82
8
62
197
273
Mill
ion
s
Revenue by currency
2014
2013
FX Impact
P millions 2014 Constant 2013 % YOY
Revenue 1 401 1 309 1 205 8.6%
Constant currency
Bednights sold
3
Botswana Namibia SouthAfrica
Zambezi Total
59
30 8
34
131
54 30
15 31
130
Tho
usa
nd
s
Bednights - Region
2014
2013
9% growth in Botswana
Namibia flat with 13 000 less
available beds
8% growth in Premier brand
Adventure down 20% with 26 000
less beds (28%)
Premier Classic Adventure Tour Series Total
27 41 36
26
131
25 40
45
21
130
Tho
usa
nd
s
Bednights - Brand
2014
2013
Segment revenue
3
P millions 2014 2013 YOY %
Botswana 441 355 24%
Namibia 218 221 (1%)
South Africa 1 060 891 19%
Zambezi 139 126 10%
Intergroup (457) (388) 18%
Group 1 401 1 205 16%
Botswana Namibia South Africa Zambezi
69%
54%
64%60%
65%
45%
58% 57%
Occupancy %
2014
2013
Segment profit
3
Botswana Namibia South Africa Zambezi Group
98
3
27
5
133
79
5 15
-4
95
2014
2013
P millions 2014 2013 YOY %
Botswana 98 79 24%
Namibia 3 5 (40%)
South Africa 27 15 80%
Zambezi 5 (4) 225%
Intergroup* - - -
Group 133 95 40%
* Eliminations less than P million
Opex
2
Increased by 8%
Mainly due to strategic investment in IT,
marketing and a product improvement
programme
Additional SBP charge of P6m vs P3m in
prior year
Capex
17
Botswana Namibia South Africa Zambezi Group
31
22
15 13
81
44
11 8
10
73
BWP (million)
2014
2013
Taxation
2
Effective tax rate increased to 37% mainly
due to the recognition of a deferred tax
asset in the prior year
Normalised tax rate is 37% vs 41% in the
prior year
Utilisation of tax losses remains a
challenge
Statement of comprehensive income
2
P'000 2014 2013 % YOY
Revenue 1 401 206 1 205 074 16%
EBITDA 151 168 108 901 39%
Impairment loss (8 902) (14 000) 36%
Depreciation and amortisation (50 093) (46 982) 7%
Operating profit 92 173 47 919 92%
Net finance costs (7 509) (8 205) 8%
Unrealised foreign exchange loss on loans (9 851) (7 260) (36%)
Income from associate 2 708 66 4003%
Profit before taxation 77 521 32 520 138%
Taxation (29 031) (4 816) (503%)
Profit for the year 48 490 27 704 75%
Earnings per share (thebe)
- Basic 19.98 12.80 56%
- Diluted 19.72 12.79 54%
- Headline 16.07 11.13 44%
- Diluted headline 15.86 11.13 42%
Statement of financial position
2
P'000 2014 2013
Assets
Non-current assets 474 933 474 047
Current assets 407 530 319 065
Non-current assets held for sale - 1 386
Total assets 882 463 794 498
Equity and liabilities
Capital and reserves 374 948 337 469
Non-current liabilities 124 221 130 249
Current liabilities 383 294 326 780
Total equity and liabilities 882 463 794 498
Cash flow statement
2
P'000 2014 2013 % YOY
Cash flow from operating activities
Profit before taxation 77 521 32 520 138%
Adjustment for non-cash items 57 103 62 145 (8%)
Changes in working capital 76 519 12 287 523%
Cash generated from operations 211 143 106 952 97%
Interest received 1 279 1 260 2%
Financing costs (8 788) (9 465) 7%
Taxation paid (19 208) (21 229) 10%
Net cash inflow from operating activities 184 426 77 518 138%
Net cash outflow from investing activities (51 819) (66 253) 22%
Net cash outflow from financing activities (32 959) (44 960) 27%
Net increase (decrease) in cash and cash equivalents 99 648 (33 695) 396%
Unrealised exchange gain on foreign cash balances 11 434 15 828 (28%)
Cash and cash equivalents at the beginning of year 139 637 157 504 (11%)
Cash and cash equivalents at end of year 250 719 139 637 80%
Ratio analysis
2
2014 2013
Gross profit 41.7% 42.7%
EBITDA margin 11.0% 9.0%
Effective tax rate 37% 15%
Return on equity 12.1% 8.6%
Debt/equity 42% 50%
Shareholder returns
2
A dividend of 10 thebe per share
Increase of 2.5 times
Payable to shareholders on 26 June 2014
To shareholders registered on 13 June
2014
Looking ahead
Future developments
o We have some exciting growth opportunities:
• Hoanib Skeleton Coast Camp opens 1 August 2014
o Zimbabwe
o East Africa
o Continued development of the Wilderness Window
o Brand development
o Search Engine Optimisation
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