WEB TRAVEL GROUP LIMITED — Interim / Quarterly Report 2018

Mar 22, 2018

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JacTravel depreciation and amortisation update No impact on reported 1H18 results or FY18 guidance

Webjet Limited (Webjet) has become aware of an error in the depreciation and amortisation (D&A) costs in the pro forma Continuing Operations table set out in the appendix to its 1H18 Financial Results presentation released on 22 February 2018. The error has no impact on reported results or guidance. `

The previous owner of JacTravel incurred a $3.1 million D&A charge in July and August 2017, immediately prior to selling the business to Webjet. This charge will not be part of JacTravel’s ongoing costs but was inadvertently included and as a result, pro forma D&A was overstated.

Reclassifying the pro forma JacTravel D&A to reflect Webjet’s ownership results in the following:

• EBIT (before Acquisition Amortisation (AA)) up 10%

• NPAT (before AA) up 12%

• NPAT up 10%

• EPS (both basic and diluted) up 10%

For clarity, the table below shows the impact of this change. Please note, $1 million of D&A expense has been reclassified as Acquisition Amortisation to more accurately reflect the nature of that expense.

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Pro-Forma Continuing Operations (Jac) [(1) (2)]
Appendix to
Updated Results
Presentation
1H18 1H18 Change
$m $m $m %
TTV 1,611 1,611 0 0%
Revenue 146.1 146.1 0.0 0%
Revenue as Principal 379.8 379.8 0.0 0%
Total Revenue 525.9 525.9 0.0 0%
EBITDA 51.8 51.8 0.0 0%
EBIT (before AA) 45.7 41.6 4.1 10%
PBT (before AA) 39.6 35.5 4.1 12%
NPAT (before AA) 30.0 26.7 3.3 12%
Acquisition Amortisation (AA) [(3)] (5.5) (4.5) (1.0) 23%
NPAT 24.5 22.3 2.2 10%
EPS (cents) Cents
- Basic 21.9 19.9 2.0 10%
- Diluted 21.6 19.7 2.0 10%
Margins
Revenue Margin 9.1% 9.1% 0.0%
EBITDA Margin 35.4% 35.4% 0.0%
Effective Tax Rate (excl AA) 24.2% 24.7% (0.5%)
Effective Tax Rate 28.2% 28.3% (0.1%)
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Footnotes:

(1) Continuing Operations 1H18 exclude $1.0m costs associated with acquisition of JacTravel.

(2) Pro-forma result if JacTravel was acquired on 1 July 2017 and excludes costs which will not be continuing under Webjet ownership.

(3) Acquisition amortisation includes charges relating to amortisation of intangibles acquired through acquisition.

For further information, please contact Michael Sheehy on (03) 9828 9554.