Corporate Travel Management Limited

Thank you for standing by and welcome to the CTM Investor presentation. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during Q&A time, simply press star, followed by the number one on your telephone keypad. And to withdraw your question, press the star one again. For operator assistance throughout the call, please press star zero. And finally, I would like to advise all participants that this call is being recorded. I'd now like to welcome Chairman Ewan Crouch to begin the presentation. Ewan, over to you.

Thank you. Hello everyone and thank you for joining today's call. I am Ewan Crouch, Chairman of CTM. On the call with me are Anna Peterson, our Managing Director and Group Chief Executive Officer, and James Spence, our Chief Financial Officer. Shortly they will talk through our strategy, our financial year 25 results and our forecast financial year 26 results. However, before we begin, I want to acknowledge again the patience and support of all our shareholders and all our stakeholders throughout what has been an exceptionally difficult period for CTM. The company's extended training suspension is a matter of deep regret to the board and management team. Over the past year, the board has overseen an extensive and highly rigorous examination of the issues identified within the UK business. As those issues emerged, the scope of work expanded significantly, ultimately becoming a comprehensive review of holistic activities, sorry, historical activities, financial reporting, systems, controls and governance processes in a holistic way. Put simply, no sign has been left unturned. While the underlying issues related to conduct, documentation and accounting practices within parts of the UK business, our focus was not simply on identifying what went wrong. Our responsibility was to ensure that we fully understood the causes of those issues the extent of their impact, and the actions required to improve the business of the future. That process involved exhaustive forensic review work, extensive engagement with customers and financing partners, and a fundamental reassessment of systems, controls, and governance arrangements. The Board has deliberately expanded the scope of the review to ensure all relevant matters were thoroughly investigated and addressed. It became a far more extensive exercise than initially anticipated, but one we believe was necessary to restore confidence in the company and establish a sound foundation for the future. As difficult as this process has been, it also gives us confidence going forward. It has provided an opportunity to thoroughly test the organisation, our systems, our processes, our governance frameworks, and our culture. Today, CTM is a better governed organisation as a result. We have implemented significant changes across the business and have a much clearer understanding of where we need to continue investing and improving. Importantly, throughout this period, our people have continued to serve our clients with professionalism and dedication, maintaining the high standards that have long underpinned CTM's service reputation. On behalf of the board, I would like to thank our employees for their resilience and congruence. I would like to thank our clients for their continued support and thank our shareholders for their patience throughout this process. I would also like to acknowledge the impacted UK customers who engaged constructively with CTM throughout. We are grateful for their willingness to work with us to reach fair and practical outcomes. and we thank them for their ongoing support and continued working relationships with CETEO. We also recognise that our work is not complete. There are elements of remediation still to address directly with customers and board renewal and succession planning remains an important priority and that process is underway. Looking ahead, our focus must now be firmly on execution. In the months and years ahead, We need to do everything we can to deliver on our strategy and create value for shareholders. I would also like to acknowledge our Managing Director and Group Chief Executive Officer Anna and her leadership team for the way they have led the organisation throughout this period. Throughout the challenging and demanding process they have remained focused on supporting our people, serving our customers and positioning the business for the future. I have much confidence in Anna her leadership team and the board of organisation to execute on the clear strategy outlined in today's presentation. Let me now hand over to Anna to discuss the CTM of today and the progress made across the business and the opportunities ahead. James will then take us through our financial position before we open for questions.

Thank you, Dylan. Before we begin, I would like to acknowledge the traditional custodians of the lands on which we meet today and pay my respects for elders past and present. I extend that respect to all Aboriginal and Torres Strait Islander peoples joining us today. We move on to the next slide. I'd like to say good afternoon everyone and thank you for joining us. To the next slide. Before we move on I want to Very importantly, acknowledge the leadership team at CTM. We've deliberately strengthened the group executive over the past 12 months, bringing in experienced leaders across commercial, legal, governance, people and business transformation. This team has clear accountability for both strengthening the foundations of CTM and executing the strategy we're setting out today. We're continuing to build out the executive team in a number of areas. I have confidence in the capability we already have around the table. So to the next slide, there are three parts to today's presentation. I'll start with CTM today and the work that we've done to strengthen the business. James will take you through the FY20 final results, which will also touch on CTM's forecast FY26 numbers. to cover our current financial position. I'll return at the end to take you through our strategic pathway and when we see the opportunity to create value from here. For those of you that are looking for more detail, we've included regional reviews, our governance policy program and additional financial information in the appendix. So let's move on and let me start with the business that we have today. So there are three things I'd like you to take away about CTM today. First, the underlying business has remained resilient. We delivered approximately $9.6 billion of TTV in FY25 and retained approximately 97% of client TTV through the FY26. Our underlying EBITDA was $83.6 billion in FY25 and is forecast to increase to 113.6 million in FY26. We also continue to win and retain business with 669 million of new business wins and 1.5 billion of renewals during FY26. Second, remediation is well advanced. We've made substantial progress on the UK matters. Peace settlements have been agreed. The major exposures have been quantified and the refund program is supported by committed funding. First, we've made significant progress strengthening the foundations of the business and that includes stronger leadership, governance, controls and accountability alongside committed funding to support the business through the remediation period. If we look at these together, it gives us confidence that while the issues we've been addressing have been significant, they've not changed the fundamental strength of our client franchise or the opportunities ahead. Our focus now at CTM is disciplined execution and turning those strengths into sustainable value creation. We continue to the next slide. Ewan has already covered the work undertaken to understand the issues and the board's response. We want to focus on what has changed commercially. In the UK, we've strengthened leadership and accountability. We've reviewed key client contracts and strengthened oversight of how those contracts are interpreted and delivered. We've also strengthened financial reporting, reconciliation and documentation controls with clearer approval and installation requirements. The focus now is on embedding that discipline into the way the business operates every day. On to the next slide. The lessons, however, are broader than the UK, and that's why the governance of this program is worldwide. This comes down to four things. Clear accountability and decision rights, data we can rely on, stronger risk and financial controls, and stronger assurance. In practical terms, that means clearer ownership, better quality information, more consistent controls and stronger independent challenge across the group. And for us, the test isn't whether we have new policies. It's whether we have better decisions, earlier escalation, clearer accountability and better visibility across the group. That's what we're working to embed.