WEB TRAVEL GROUP LIMITED — Call Transcript 2019

Apr 8, 2019

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UBS Emerging Companies Conference: Technology 10 April 2019

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John Guscic: Managing Director

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Introducing our B2C Division:

Webjet is Australia and New Zealand’s #1 Online Travel Agency (OTA)

Online Republic is a market-leading specialist in the provision of online cruise, car-hire and motor-home bookings

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Introducing our B2B Hotels Division:

Launched in 2013, WebBeds is the world’s 2[nd] largest and fastest-growing accommodation supplier to the travel industry

WebBeds operates across 3 regions – Europe, Americas, Middle East & Africa (AMEA) and AsiaPacific

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Technology is changing how we compete

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Our blockchain solution for our WebBeds businesses is
helping reduce costs, improve efficiency and remove friction
at customer check-in
Opportunity to deliver a competitive service advantage for
our hotel supply and travel industry partners
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Focused on providing the ultimate Umrah and Hajj
experience, we are the first online B2B provider of religious
travel services with a sophisticated, integrated online VISA
application tool
Opportunity to target the annual 30 million religious tourists
expected to visit the Kingdom of Saudi Arabia by 2030
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The travel industry’s first functioning blockchain solution

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What is the problem we are trying to solve?

Many different components / areas of hotel reservations can mismatch during the life of a booking including:

Settlement between hotel suppliers and travel partners is a complex, time consuming and ultimately costly process

Price

Multiple IT systems speaking different languages often lead to painful reconciliation and high error risk

Duration different languages often lead to painful reconciliation and high error Booking status risk Currency As a result, significant financial exposure and heavy resourcing Board Basis requirements are all known and, until now, accepted risks across the Room type current distribution chain

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Around 5% of all hotel bookings are disputed in some form when it comes to invoice time

1 in every 25

bookings has a breakage and results in a service being provided but never properly invoiced

33% of all hotel bookings are amended in some way after the reservation was first confirmed

1 in every 10 bookings experiences some kind of manual intervention that can break the chain and cause a discrepancy

Disputes can take months to resolve and are often expensive with labor costs, underpayments and some bookings never being invoiced.

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What have we built?

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A simple solution designed to allow any 2 parties to verify that booking data matches

This “ handshake ” occurs each time a booking is made or updated

Parties are notified if any discrepancies exist that could lead to a dispute

Action can be taken immediately to correct any erroneous data and to mitigate losses

When it comes to invoicing, there are no nasty surprises

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Rezchain is already reducing costs and offering a competitive service advantage

1. By FY22 we believe we can deliver “8/4/4” in our WebBeds business - 8% revenue/TTV and 4% costs/TTV to drive 4% EBITDA/TTV

Version 5 is currently implemented across all our WebBeds platforms

DOTW platform went live this week

Rezchain is helping drive efficiencies across our WebBeds businesses

Streamlining reconciliation processes, improving data integrity and reducing costs

Dramatic reduction in account reconciliation issues is allowing us to scale rapidly while reducing overheads and providing reduced friction at customer check-in

We expect Rezchain to play a key role in delivering our WebBeds “8/4/4 target” by FY22[(1)]

Rezchain offers significant competitive advantage potential

Operating the travel industry’s first blockchain solution provides the opportunity to offer our hotel supply and travel industry partners improved certainty across their entire hotel booking supply chains

Thomas Cook due to be connected later in 2019

Ongoing enhancements are focused on improving simplicity of connection and speed

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A pioneer in the online provision of religious pilgrimage travel services

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UmrahHolidays International: A significant new market opportunity

“Umrah” is a pilgrimage to Mecca, Saudi Arabia. It is performed by followers of the Muslim faith worldwide and can be undertaken at any time of the year

Hajj is a compulsory pilgrimage for every Muslim who is physically and financially able at a pre-determined date

Muslims aspire to undertake Hajj and/or Umrah at least once in their lifetime

Islam is the world’s second largest religious group - nearly 25% of the world’s population is Muslim

Around 2.4 million Muslims completed Hajj in 2018

Around 3.3 million Muslims visitors completed Umrah in the Kingdom of Saudi Arabia in 2018

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Key initiatives to achieve this 2030 vision include:

The Kingdom of Saudi Arabia has a vision to welcome 30 million religious visitors a year by 2030

• Improving visa procedures to enable smooth visa processing with the aim of full automation

• Integration of e-services into the pilgrim’s journey to enrich the religious and cultural experience

• A range of new facilities – a new international airport, new railway connections, 35,000 new hotel rooms and expansion of Holy Mosques are all underway

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We take pride in being the first truly online B2B provider of religious travel services

We leverage the WebBeds global distribution network and strong partnership with hotels in the Kingdom of Saudi Arabia to offer a range of religious travel offerings and packages

Hotels - We have direct contracts with over 600 hotels in Makkah, Medina, Jeddah and across the Kingdom of Saudi Arabia

A full suite of ground services - including private, shared or group transfers, sightseeing and “meet and greet” services

We have developed a sophisticated integrated online VISA application tool in accordance with the Kingdom of Saudi Arabia regulations

We offer a simple and quick e-Service to facilitate the planning, processing and issuance of visa for pilgrims

We are the first online business globally to provide this service

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Where are we today?

51% owned by WebBeds

2 global B2B player

1 B2B player in Middle East & Africa

49% owned by partners who bring deep religious tourism experience providing ground services across Umrah and Hajj

Offices in Dubai, Cairo and Jeddah

Launched in February 2019

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We expect Umrah Holidays International to make a meaningful EBITDA contribution to WebBeds AMEA by FY22

Low set-up and operating costs

• $1 million set-up costs in FY19

• Expected to breakeven in FY20

• Expected to make meaningful EBITDA contribution to WebBeds AMEA in FY22

Low CAPEX requirements

Leverage existing local supply and global distribution partnerships We reconfirm FY19 guidance

We remain on track to deliver at least $120 million EBITDA (excluding one-offs associated with the acquisition of DOTW), including all start up costs associated with Umrah Holidays International

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Q & A

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Thank you