FLIGHT CENTRE LIMITED Full Year Summary

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FLIGHT CENTRE LIMITEDFull Year Summary June 2003
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2003 at a Glance

• Continued growth during a period of turmoil -
  13 profit growth in the year
• A reasonable year given the circumstances, but
  below initial expectations
• Exceeded 100m pre-tax profit
• Extraordinary market conditions - Bali, Iraq,
  SARS, bankrupt and desperate airlines

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Growing Globally
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Growth calculations are compared to full year
June 2002
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Key Financial Results
Full Year to June 2003
Growth calculations are compared to full year
June 2002
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Key Operating Results
Full Year to June 2003
Countries reported on operational reporting basis
not business entity (eg AITL ITG(NZ) reported
in Aust)Profit is calculated pre-royalties,
growth calculations are compared to full year 2002
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Key Operating Results
Full Year to June 2003
Countries reported on operational reporting basis
not business entity (eg AITL ITG(NZ) reported
in Aust)Profit is calculated pre-royalties,
growth calculations are compared to full year 2002
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2003 Operating Highlights Australia

• Flight Centre Brand (FCB) largest global profit
  contributor results in line with last year
• FCB had solid profit increases in Qld, NSW and WA
  but down in Vic, Tas and SA
• Overall Corporate was up on last year, mainly due
  to ITG (only 3 months included in 2002)
• Best Employer to work for in Australia
• Best Australian Travel Agency Group award

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2003 Operating Highlights New Zealand

• Cost containment, revenue growth and margin
  improvement lead to solid growth
• Infinity Holidays had an exceptional profit year
• Successful internalising of wholesaler
• Strong Infinity profit and contribution to
  overrides
• Opened 30 new businesses, of which 20 were retail

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2003 Operating Highlights United Kingdom

• Poor performance due to SARS, Iraq and expansion
• Higher provision for doubtful debts impacted
  results
• 32 growth in FC UK with 23 new shops and
  businesses in 2003. Britannic acquisition added
  an additional 42 shops.
• Britannic acquisition performance below
  expectations due to outside factors (SARS/Iraq)
• UK performance is expected to improve in 2004

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2003 Operating Highlights South Africa

• Strong year in South Africa with Flight Centre
  Brand achieving record profit results
• RSA Corporate significantly improved on last year
  and Student Flights approaching profitability
• Average commission per consultant has grown by
  36

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2003 Operating Highlights USA

• Results exceeded expectations, particularly in
  retail
• Opened 3 retail and 1 wholesale shop during the
  year
• New leader appointed in 3rd quarter
• Corporate profitable for the year
• Chicago now under direction of USA leader

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2003 Operating Highlights Canada

• Retail results disappointing, impacted by
  external events
• Corporate Traveller profitable in both east and
  west
• Margins strongest in company despite
  commissionless airlines
• Toronto particularly affected by SARS late in the
  year

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2003 Financial Update

• Change in revenue recognition disclosure
• Greater focus and resources in risk management
• Continuation of Flight Centre employee option
  plan

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Acquisitions

• Britannic (UK) a high end corporate travel
  business
• AITL (Hong Kong) corporate travel business
• quickbeds.com (Australia) internet based hotel
  booking business expanded to 365 day operation
• Cruiseabout cruise retail specialist
• Over next 510 years expect one quarter of growth
  to come from acquisitions
• Large targets giving step change
• Smaller targets to fill niches

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Potential Risks

• Commissionless airlines
• Lack of competition in Australia and
  profitability of airlines
• Global Distribution System - increasing internet
  business

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Flight Centre - Brands
Retail Brands
Corporate Brands

• Flight Centre
• Great Holiday Escape
• Student Flights
• Travel Associates
• Overseas Working Holidays
• Shopper Travel
• Cruiseabout

• Corporate Traveller
• TQ3 Travel Solutions
• The Events Centre
• SBT Business Travel Solutions
• Stage and Screen
• Conference Incentive Management
• Convention Incentive Services
• AITL (Hong Kong)
• Britannic (UK)
• Campus Travel

Other Brands

• Ticket Centre
• Infinity Holidays
• VFR Flights
• quickbeds.com
• Fanatics
• George Seymour College (NZ)

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Share Price Performance

• Share Price
• Float 0.95
• 1995/96 1.95
• 1996/97 3.65
• 1997/98 2.90
• 1998/99 7.30
• 1999/00 19.10
• 2000/01 28.00
• 2001/02 27.25
• 2002/03 22.00

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Looking Forward to 2004

• North American restructure pillarisation and
  consolidation of back-end processes
• US expansion
• Working towards a World-Class company using
  the Baldridge Criteria
• Too early to tell full year result, but expect to
  be in the order of 15-20 profit growth

Forward Looking Statements Some of the
information in this presentation may contain
projections or other forward-looking statements
regarding future events or the future financial
performance of Flight Centre Limited. The reader
is cautioned that the assumptions used in the
preparation of these forward-looking statements
involve risks and uncertainties that may cause
actual results to differ materially from those
expressed or implied.
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Shop/Business Growth Expectations
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Full Year Results Over 10 years
Average of growth
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Questions?
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