travelex results for the year ended 31 december 2015 · o launch of the supercard pilot programme...

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Travelex Results for the year ended 31 December 2015

29 March 2016

Travelex, the world’s leading foreign exchange specialist, announces continued Revenue growth for the year ended 31 December 2015

Highlights

• Core Group Revenue increased by 2% to £734.0m (6% increase to £763.6m at constant exchange rates (CER))

• Core Group EBITDA before the digital investment in Payments & Technology increased by 4% to £89.2m (10% increase to £94.8m at CER)

• Overall Core Group EBITDA decreased by 3% to £83.2m, impacted by the economic downturn in Brazil and an additional £6.0m investment in Payments & Technology (3% increase to £88.8m at CER)

• Retail revenue up 8% and EBITDA up 20% at CER with growth across all channels, including the acquisition of Turkey, which more than offset the transfer of a significant contract to Wholesale & Outsourcing. Retail like-for-like revenue growth of 5% with growth across all channels

• Further investment in new Travelex stores with a focus on deepening presence in existing regions. 137 new stores opened in 2015 including in London (Heathrow), Detroit and Boston Logan international airports

• Wholesale & Outsourcing revenue up 9% and EBITDA up 8% at CER driven by the inclusion of a significant contract previously reported in Retail and by growth in Malaysia

• Step change in Payment & Technology investment supporting new innovations and further multi-channel growth o Launch of the Supercard pilot programme and the development of the Travel Money

App o Overall increase in online and mobile revenue of 18% o International money transfer (payment) product on track for launch in the UK in 2016

Anthony Wagerman, Chief Executive, commented:

“Travelex has delivered a resilient performance and demonstrated strong growth across its largest segments against some challenging trading conditions and despite the continued strengthening of Sterling during 2015 negatively impacting the translation of revenues and profits earned outside the UK. Our Retail operations again showed double digit EBITDA growth, benefitting from further expansion of our network and the continuing shift in consumers using our digital platforms. We expect this trend to continue and have stepped up investment in our digital capabilities to ensure we can capitalise on the opportunities it presents. Looking ahead, while we expect trading conditions to remain challenging, particularly in Brazil, we are well positioned with a strong brand and a clear growth strategy, building on our presence in key geographic markets and further enhancing our digital proposition for customers”

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Enquiries

Travelex Megan Landauro, Global PR Manager +44 (0) 20 7812 5500

Tulchan Communications Peter Hewer +44 (0) 20 7353 4200

About Travelex Founded in 1976, Travelex has grown to become the world’s leading specialist provider of foreign exchange. Travelex provides cash and prepaid cards across 29 countries. The Group has built a growing online and mobile foreign exchange platform, across 23 markets, and developed a growing network of over 1,450 ATMs and 1,450 stores at both on-airport and off-airport locations around the world. It also processes and delivers foreign currency orders for major banks, as well as for travel agencies, hotels and casinos. In addition, the Group sources and distributes large quantities of foreign currency banknotes for customers including central banks and international financial institutions. The Group is also active in the remittances and payments space and in the travel insurance brokerage business in the United States.

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OPERATING AND FINANCIAL REVIEW Summary of financial performance £m 12 months

ended 31

December 2014

12 months ended

31 December

2015

% Change 12 months ended

31 December 2015 (CER)

% Change

(CER)

Core Group Revenue 721.5 734.0 2% 763.6 6% Core Group EBITDA (before digital investment)

85.9 89.2 4% 94.8 10%

Core Group EBITDA 85.9 83.2 (3)% 88.8 3% Statutory Revenue 693.3 655.7 (5)% Statutory EBITDA 79.7 66.8 (16)% Statutory loss after tax (145.1) (120.9) 17% Overview of trading results Travelex has delivered a resilient performance despite the continued strengthening of Sterling during 2015 negatively impacting the translation of revenues and profits earned outside the UK and the impact of our increased digital investment. Before this digital investment, and at CER, the Group showed an increase of 10% in Core Group EBITDA during the year ended 31 December 2015.

Core Group Revenue has increased by £12.5m, or 2% for the year ended 31 December 2015 (an increase of £42.1m, or 6% at CER), despite the continued challenges in Brazil and softer trading in North America. Like-for-like Retail revenue growth was 5% overall with double digit like-for-like growth in the Middle East and UK Supermarkets. In addition the UK operations benefitted from the impact of becoming sole provider of Foreign Currency, ATM and DCC services at London Heathrow Airport and strong demand for Euros in the wholesale banknote business. There was also strong revenue growth from the cash processing business in Nigeria as well as the positive impact from new store openings.

Core Group EBITDA for the year ended 31 December 2015 decreased by £2.7m, or 3% to £83.2m compared to 2014 (an increase of £2.9m, or 3% on a CER basis). Weakening of the Brazilian Real has continued to severely impact outbound sales volumes in Brazil and this together with the high inflationary environment and relatively fixed cost base has resulted in a significant decline in EBITDA. In addition, EBITDA has been impacted by the anticipated new rental terms at London Heathrow Airport and the Group’s planned investment in digital capabilities. Strong underlying performance in Retail, including in Turkey which was acquired in May 2014, and Wholesale & Outsourcing has reduced the impact of these factors on the Group’s year to date performance.

Retail In the year to 31 December 2015, Retail Core Group Revenue increased by £26.3m, or 5% to £522.8m (an increase of £39.7m or 8% on a CER basis) due to strong performances across all channels in Europe, Middle East and Turkey (which was acquired in May 2014), continued expansion of the UK Supermarket estate and the benefit of network expansion, in particular VAT refunds at London Heathrow Airport where we are now the sole provider of Foreign Currency, ATM and DCC services. In addition, continued expansion in ATMs resulted in revenue through this channel increasing by 19%. On a like-for-like basis Retail revenue growth was 5%, with many regions across the Group’s global network delivering strong like-for-like retail growth compared to 2014. These factors more than compensated for the transfer of the Sainsbury’s contract from the Retail segment into the Wholesale and Outsourcing segment, the softer trading in North America and the negative impact on trading following the Paris attacks in Q4. Excluding the impact of the Sainsbury’s reclassification, online revenue has increased by 17% in the Retail segment.

Retail Core Group EBITDA increased by £9.4m, or 15% to £73.4m (an increase of £12.5m, or 20% on a CER basis) mainly due to revenue growth as described above and revenue enhancing initiatives in the UK and Japan, strong profitability in Turkey, continued focus on the cost base and increased utilisation of onerous

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contract provision of £2.1m, partially offset by the anticipated new rental terms at London Heathrow Airport and the Sainsbury’s contract reclassification to Wholesale & Outsourcing.

Consistent with the Group’s network expansion strategy, 137 new stores opened, including in London Heathrow Airport, in Detroit Metropolitan Wayne County Airport and in Boston Logan International Airport. Our business in Turkey, which we acquired 75% of in May 2014, contributed £4.2m to Core Group Revenue growth and £3.1m to Core Group EBITDA growth in the year ended 31 December 2015.

Wholesale & Outsourcing Wholesale & Outsourcing Core Group Revenue increased by £7.5m, or 7% to £116.0m (an increase of £10.0m, or 9% to £118.5m on a CER basis). A large portion of this increase results from the transfer of the Sainsbury’s contract from the Retail segment in 2015 as a result of new contract terms. Excluding the Sainsbury’s contract reclassification, the underlying Core Group Revenue increase would have been 1%. Wholesale & Outsourcing Core Group EBITDA was up £3.2m, or 7% (an increase of £4.1m or 8% on CER basis) on 2014, despite an increased investment in business development resource. Excluding the Sainsbury’s contract reclassification, the underlying Core Group EBITDA increase would have been 3%.

Wholesale Core Group Revenue increased by £1.3m, or 3% to £40.3m (an increase of £1.8m, or 5% to £40.8m on a CER basis) compared to 2014 with higher demand for Euro banknotes in the UK and strong performance of the cash processing business in Nigeria partially offsetting the lower demand for wholesale banknotes in Nigeria. Wholesale Core Group EBITDA margins remained strong.

Outsourcing Core Group Revenue increased by £6.2m, or 9% to £75.7m (an increase of £8.2.m, or 12% to £77.7m on a CER basis) compared to 2014 largely owing to the Sainsbury’s contract reclassification from Retail. Excluding this contract reclassification, underlying Revenue and EBITDA growth would be 3% and 1% respectively at CER. Underlying Revenue and EBITDA growth was driven by strong performance in Malaysia and strong demand for Euro in the UK in the first half of 2015. Margins have remained resilient at 44%.

Payments & Technology Core Group Revenue was broadly in line with 2014 at £22.2m (an increase of £2.6m, or 12% to £24.7m on a CER basis). Revenue performance has been primarily driven by the Currency Select business which provides dynamic currency conversion (DCC) solutions for ATMs, e-commerce and point of sale terminals to acquirers, merchants and business partners. Currency Select Core Group EBITDA increased by £0.1m, or 4% to £2.6m (increased by £0.4m, or 16% to £2.9m on a CER basis) due to revenue growth, being driven by roll out of POS/eCommerce to new merchants in Australia, New Zealand and Belgium, higher acquiring volumes and lower overhead costs, partially offset by the increased cost in the acquiring business from higher scheme and acquirer processing fees.

On 25 February 2016, the Group entered into a binding agreement to dispose of its 100% shareholding in Travelex Outsourcing Pty Ltd, its Dynamic Currency Conversion (‘DCC’) business (Currency Select) to Global Blue SA, for gross proceeds of AUD65.0m (c.£34.8m). The Group expects the transaction to complete on 1 April 2016. Financial Technology Partners LP and FTP Securities LLC (“FT Partners”) served as exclusive financial and strategic advisor to Travelex in this transaction.

Overall Payments and Technology reported an EBITDA loss of £3.4m reflecting the £6.0m investment in digital capabilities. Most key members of the Products and Marketing team, who are responsible for delivering Travelex’s digital strategy, are now in place and continue to build up the Group’s in-house capabilities. This investment will help secure Travelex’s long-term position and enable the development of new payments propositions in line with our growth strategy. Overall increase in online and mobile revenue was 18%. In 2015 the Group launched the Supercard pilot programme, which provides a convenient way to reduce bankcard charges when abroad. Following the successful pilot, the Group plans to make the product widely available (in the UK) before the European summer.

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The Travelex Money App was launched in July through an integrated marketing campaign across PR, direct marketing and social media. The app serves to help UK customers plan and purchase their foreign currency cash in advance of travel requirements.

The Group’s International money transfer (payment) product is under development and is on track to launch in the UK in 2016.

Brazil The Group’s business in Brazil has been severely impacted by the weakening of the exchange rate relative to the US Dollar resulting from the worsening economic prognosis for the country. Core Group Revenue for the year ended 31 December 2015 decreased by £19.9m, or 33% to £40.3m compared to 2014 and decreased by £6.5m, or 11% on a CER basis. Core Group EBITDA decreased by £9.1m, or 64% to £5.2m and by £7.4m, or 52% to £6.9m on a CER basis.

Brazil Retail Core Group Revenue for the year ended 31 December 2015 decreased by £14.8m, or 36% to £26.5m, and £6m, or 15% to £35.3m on a CER basis. Weakening of the Real against all major currencies impacted outbound sales volumes and Retail Revenue throughout 2015. The average exchange rate to the USD for the year ended December 2015 was 3.39, which was 44% higher than 2014. Spot rate to USD was at 3.61 on 24 March 2016. This decline was partially offset by increased remittance volumes. Brazil Retail Core Group EBITDA decreased by £4.0m, or 69% to £1.8m (by £3.4m, or 59% to £2.4m on a CER basis) as a result of the high inflationary pressures on the largely fixed cost base.

Through these challenging trading conditions, Brazil’s management team continued to focus on optimising the retail estate and cost reduction, including closing 22 loss-making stores in 2015, product innovation and diversification through the development of an international payments proposition supported by a digital platform. Furthermore, the Group has benefitted from the successful integration of the Renova business, through synergy related cost savings particularly in staff and property costs. Management team will continue to monitor stores profitability as part of the cost reduction review.

Brazil Non-retail Core Group Revenue decreased by £5.1m, or 27% to £13.8m, and decreased slightly by £0.5m, or 3% to £18.4m on a CER basis. Brazil Non-retail Core Group EBITDA decreased by £5.1m, or 60% to £3.4m and by £4.0m, or 47% to £4.5m on a CER basis. The decrease in EBITDA on an underlying basis was a result of inflationary pressures on the cost base, in particular higher logistics costs.

The Group completed the acquisition of Renova Servicos in Brazil on 4 December 2015. The transaction comprised the acquisition of Renova Servicos and the trade and assets from Renova Corretora from an associate of Dr Shetty, the Group’s ultimate controlling shareholder. Renova operates 37 stores in six States across Brazil with a strong remittance and business to business foreign exchange offering which is complementary to the Group’s existing operations in the country. The acquisition is expected to benefit our operations through increased diversification in the Brazilian market, knowledge sharing and synergies. The acquisition was funded through the issue of loan notes constituting subordinated shareholder funding in favour of Dr B. R. Shetty.

Other Trade Other Trade principally includes Travelex Insurance Services Inc. (TIS), a travel insurance broking business in the United States. The decline in Core Group EBITDA is attributable to renegotiation of terms with underwriters at the end of 2014; under the previous contract terms Core Group EBITDA would have been £1.1m higher than 2014, at CER. Despite this renegotiation, EBITDA margin has improved due to lower operating costs. Underlying volumes remain resilient.

Recently the Group’s insurance underwriter reviewed its 50 State Travel Insurance policy filings, and has confirmed that a policy fee can no longer be charged in respect of their insurance products. This change will result in a reduction in future profitability of our Insurance operations. Management will continue to target new business and higher margin products whilst tightly controlling the cost base to reduce the impact on profitability.

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Corporate developments In October 2015, an important wholesale banknote supplier of the Group served notice to terminate a key agreement to supply wholesale banknotes which provided significant working capital benefits, to one of the Group’s UK subsidiaries by late June 2016, in accordance with a contractual break clause. At the same time, that supplier has indicated that they would be prepared to continue to supply wholesale banknotes (to that subsidiary and to other subsidiaries of the Group) should the Group accept certain changes to the terms and conditions of supply with reduced working capital benefits. The Group is currently negotiating mutually acceptable terms under which the supply agreement could be extended and is confident of successfully concluding the negotiations.

Outlook Travelex has again delivered revenue growth and in aggregate the Group has delivered full year results in line with management expectations. The strength of our brand continues to ensure we are well positioned to manage through the impact of contract renewals, particularly in Prague International Airport where the Group will cease to provide foreign exchange and ATM services from May 2016. Management is committed to a plan to mitigate the economic headwinds in Brazil through store rationalisation activities and continued focus on tight cost control. We continue our investment to strengthen our digital capabilities and capitalise on growth opportunities in existing markets to ensure we continue to deliver the most innovative and leading currency services for our customers.

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Appendix

Revenue and EBITDA by segment for the year ended 31 December 2015

£m Year ended 31 December

2014

Year ended 31 December

2015

% Change Year ended 31 December

2015 (CER)

% Change (CER)

Core Group Revenue Retail 496.5 522.8 5% 536.2 8% Wholesale & Outsourcing 108.5 116.0 7% 118.5 9% Payments & Technology 22.1 22.2 0% 24.7 12% Brazil 60.2 40.3 (33)% 53.7 (11)% Other Trade 34.2 32.7 (4)% 30.5 (11)% Total 721.5 734.0 2% 763.6 6%

Core Group EBITDA Retail 64.0 73.4 15% 76.5 20% Wholesale & Outsourcing 48.9 52.1 7% 53.0 8% Payments & Technology (excluding digital investment)

2.5 2.6 4% 2.9 16%

Brazil 14.3 5.2 (64)% 6.9 (52)% Other Trade 7.7 7.6 (1)% 7.1 (8)% EBITDA Contribution (before digital investment)

137.4 140.9 3% 146.4 7%

Central & Shared Costs (51.5) (51.7) 0% (51.6) 0% EBITDA (before digital investment) 85.9 89.2 4% 94.8 10% Digital investment - (6.0) n/a (6.0) n/a Total 85.9 83.2 (3)% 88.8 3%

TravelexResults Presentation for the year ended 31 December 2015

29

March

2016

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Notice to Recipient

The information contained in this confidential document (“Presentation”) has been prepared by Travelex (“Company”). It has not been fully verified and is subject to material updating, revision and further amendment. For the purposes of this notice, the Presentation that follows shall mean and include the slides that follow, the oral presentation of the slides by the Company or any person on behalf of the Company, any question-and-answer session that follows the oral presentation, hard copies of this document and any materials distributed at, or in connection with the presentation. By attending the meeting at which the Presentation is made, or by reading the Presentation, you will be deemed to have (i) agreed to all of the following restrictions and made the following undertakings and (ii) acknowledged that you understand the legal and regulatory sanctions attached to the misuse, disclosure or improper circulation of the Presentation. This Presentation is furnished solely for your information, should not be treated as giving investment advice and may not be copied, distributed or otherwise made available or disclosed, in whole or in part, to any other person by any recipient without the prior consent of the Company.

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2. Financial performance

3. Summary and conclusions

4. Questions

5. Further information

1. Key highlights

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Year ended 31 December 2015 – key highlights

Financial highlights Operating highlights� In July 2015 Travelex became the sole provider of Foreign Currency, ATMs

and DCC services across all five terminals in Heathrow Airport and now

operates 56 stores and 90 ATMs

� In July 2015 Travelex was awarded approval to conduct the import and

export of banknotes in China and provide wholesale banknotes across the

country

� During the year, the Group signed an agreement with Post Office Bank in

France allowing customers to order online through the Travelex website

� On 25 February 2016, the Group entered into a binding agreement to

dispose of its 100% shareholding in Travelex Outsourcing Pty Ltd, its

Dynamic Currency Conversion (‘DCC’) business (Currency Select) to Global

Blue SA for gross proceeds of AUD65.0m (c.£34.8m). The Group expects

the transaction to complete on 1 April 2016

� Core Group Revenue increased by 2% to £734.0m (6% increase to £763.6m at

constant exchange rates (CER))1,2

� Core Group EBITDA before the digital investment in Payments & Technology

increased by 4% to £89.2m (10% increase to £94.8m at CER)

� Overall Core Group EBITDA decreased by 3% to £83.2m, impacted by the

economic downturn in Brazil and an additional £6.0m investment in Payments &

Technology (3% increase to £88.8m at CER)

� Retail revenue up 8% and EBITDA up 20% at CER with growth across all channels,

including the acquisition of Turkey, which more than offset the transfer of a

significant contract to Wholesale & Outsourcing. Retail like-for-like revenue growth

of 5% with growth across all channels

� Further investment in new Travelex stores with a focus on deepening presence in

existing regions. 137 new stores opened in 2015 including in London (Heathrow),

Detroit and Boston Logan international airports

� Wholesale & Outsourcing revenue up 9% and EBITDA up 8% at CER driven by the

inclusion of a significant contract previously reported in Retail and by growth in

Malaysia

� Step change in Payment & Technology investment supporting new innovations and

further multi-channel growth

� Launch of the Supercard pilot programme and the development of the Travel

Money App

� Overall increase in online and mobile revenue of 18%

� International money transfer (payment) product on track for launch in the UK

in 2016

� Usable cash at 31 December 2015 of £32.1m (31 December 2014: £66.3m) reflects

the continued investment in the Group’s strategic priorities together with costs

associated with the sale of the Group

1 Core Group metrics include 100% of Revenue and EBITDA from Joint Ventures and Travelex’s French business which was sold to UAE Exchange UK Limited, a company of which Dr Shetty is also a shareholder. The French business remains in the Core Group results for management discussion and analysis purposes but is excluded from the Group’s statutory results

2 Results at constant exchange rates are Core Group metrics retranslated at the average rates for the equivalent period in 2014

3 EBITDA is presented before exceptional items and non-underlying adjustments

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1. Key highlights


4. Questions


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£m, full year ended 31 December 2014 2015 Change 2015 CER2 Change

Core Group Revenue1 721.5 734.0 2% 763.6 6%

Core Group EBITDA (before digital investment)

85.9 89.2 4% 94.8 10%

Core Group EBITDA1 85.9 83.2 (3%) 88.8 3%

Core Group EBITDA % Margin 11.9% 11.3% 11.6%

Operating Exceptional items and non-underlying adjustments3 (25.6) (53.8) 110%

Capex:

2014 2015 Change

£m, full year ended 31 December Balance sheet Dec 2014 Dec 2015

System Development & Shared Service Migration / Finance Projects

18.1 2.7 (85%) Usable cash 66.3 32.1

Expansionary & Maintenance 15.4 19.0 23% Gross debt (344.8) (376.4)

Digital - 3.5 n/a Free cash 90.8 43.4

Total capex 33.5 25.2 (25%) Net debt (254.0) (333.0)

Full year ended 31 December 2015 – Group financial performance

Financial Summary

1 Core Group metrics include 100% of Revenue and EBITDA from Joint Ventures and Travelex’s French business which was sold to UAE Exchange UK Limited, a company of which Dr Shetty is also a shareholder. The French business remains in the Core Group results for management discussion and analysis purposes but is excluded from the Group’s statutory results

2 Results at constant exchange rates are Core Group metrics retranslated at the average rates for the equivalent period in 20143 Operating exceptional items and non-underlying adjustments principally relate to legal and professional fees incurred for corporate projects associated with preparing for and completing the sale of the Group and onerous

contract provisions relating to legacy airport contracts

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Core Group Revenue1

2014 2015 Change 2015 CER2 Change£m, full year ended 31 December

Retail 496.5 522.8 5% 536.2 8%

Wholesale & Outsourcing 108.5 116.0 7% 118.5 9%

Payments & Technology 22.1 22.2 0% 24.7 12%

Brazil 60.2 40.3 (33%) 53.7 (11%)

Other Trade 34.2 32.7 (4%) 30.5 (11%)

Core Group 721.5 734.0 2% 763.6 6%

Core Group EBITDA1

2014 2015 Change 2015 CER2 Change£m, full year ended 31 December

Retail 64.0 73.4 15% 76.5 20%

Wholesale & Outsourcing 48.9 52.1 7% 53.0 8%

Payments & Technology (excluding digital investment) 2.5 2.6 4% 2.9 16%

Brazil 14.3 5.2 (64%) 6.9 (52%)

Other Trade 7.7 7.6 (1%) 7.1 (8%)

EBITDA Contribution (before digital investment) 137.4 140.9 3% 146.4 7%

Central & Shared Costs (51.5) (51.7) 0% (51.6) 0%

EBITDA (before digital investment) 85.9 89.2 4% 94.8 10%

Digital investment - (6.0) n/a (6.0) n/a

EBITDA 85.9 83.2 (3%) 88.8 3%

Full year ended 31 December 2015 – financial performance by segment

1 Core Group metrics include 100% of Revenue and EBITDA from Joint Ventures and Travelex’s French business, which was sold to UAE Exchange UK Limited, a company of which Dr Shetty is also a shareholder. The French business remains in the Core Group results for management discussion and analysis purposes but is excluded from the Group’s statutory results

2 Results at constant exchange rates are Core Group metrics retranslated at the average rates for the equivalent period in 2014

Segmental results

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58.166.3 69.2

5.9

7.17.3

64.0

73.4 76.5

2014 2015 2015 CER

Retail Online

Retail – Strong performance underpinned by like-for-like growth in Europe, the Middle East and Supermarkets

Retail EBITDA1,2,3,4 (£m)Retail revenue1,3,4 (£m)

482.1

508.1 521.2

14.4

14.7

15.0

496.5

522.8

536.2

2014 2015 2015 CER

Retail Online

20%

1 All figures are shown on a “Core Group” basis i.e. including 100% of JVs and France2 EBITDA before Central & Shared Costs3 2015 CER shows 2015 results retranslated at 2014 average exchange rates4 2014 online revenue and EBITDA have been restated for comparative purposes

Key drivers 2014 2015

LFL revenue growth (%)3 5.9% 5.0%

Rent as percentage of revenue 44.3% 46.3%

Other costs as a percentage of revenue

42.8% 39.7%

EBITDA margin (%) 12.9% 14.0%

Retail KPIs

8%

Commentary

� Like-for-like revenue growth of 5% is underpinned by strong performances across all

channels in Europe, the Middle East and in UK Supermarkets, more than offsetting

softer trading in North America. Turkey, which was acquired in May 2014, andHeathrow where new stores and ATMs were added following Travelex becoming the

sole provider of Foreign Currency, ATM and DCC services in July 2015, contributed

to overall revenue growth of 8% at CER

� Continued expansion in the ATMs network with over 145 additional ATMs helped

deliver revenue growth of 19% in this channel

� Online (excluding Sainsbury) revenue and EBITDA increased by 17% and 36%

respectively, with strong performance in the Netherlands in the latter half of 2015

� EBITDA improvement is mainly attributed to the revenue initiatives in the UK and

Japan, strong profitability in Turkey, continued focus on the cost base and increased

utilisation of onerous contract provision of £2.1m, partially offset by anticipated newrental terms at LHR and the Sainsbury’s contract reclassification to Wholesale &

Outsourcing

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39.0 40.3 40.8

69.5 75.7 77.7

108.5 116.0 118.5

2014 2015 2015 CER

Wholesale Outsourcing

Wholesale

� Higher demand for Euro banknotes in the UK especially in the first half of 2015 and

strong performance of the cash processing business in Nigeria was partially offsetby the lower demand for wholesale bank notes in Nigeria

� EBITDA margin remains strong

Outsourcing

� Revenue and EBITDA growth is partly attributable to the treatment of theSainsbury’s partnership as an Outsourcing client following the agreement of new

terms in 2015. Excluding this contract reclassification, underlying Revenue and

EBITDA growth would be 2.7% and 1.2% respectively at CER

� Underlying Revenue and EBITDA growth was driven by strong performance in

Malaysia and strong demand for Euro in the UK in the first half of 2015

17.4 18.9 19.2

31.5 33.2 33.8

48.9 52.1 53.0

2014 2015 2015 CER

Wholesale Outsourcing

EBITDA

margin:45% 45% 45%

Wholesale & Outsourcing – Strong demand for Euro banknotes in the UK and strong performance in the cash processing business in Nigeria

Wholesale & Outsourcing EBITDA1,2,3,4 (£m)Wholesale & Outsourcing revenue1,3,4 (£m)

8%

1. All figures are shown on a “Core Group” basis i.e. including 100% of JVs 2. EBITDA before Central & Shared Costs3. 2015 CER shows 2015 results retranslated at 2014 average exchange rates4. Comparative financial performance for Wholesale and Outsourcing, individually, have been restated to reflect the transfer of a significant contract. The Group has not restated for

any transfer between reporting segments

Wholesale & Outsourcing KPIs

Sub-segments Key drivers 20144 2015

Wholesale

Revenue growth (%) 1.3% 3.3%


Outsourcing



Commentary

9%

10

2.5 2.6 2.9

(6.0) (6.0)

2.5 (3.4) (3.1)

2014 2015 2015 CER

Currency Select Digital

22.1 22.2 24.7

2014 2015 2015 CER

Payments & Technology – Significant ramp up in Digital investment in 2015

Payments & Technology EBITDA1,2,3 (£m)Payments & Technology revenue1,3 (£m)

1 All figures are based on a “Core Group” basis i.e. including 100% of JVs2 EBITDA before Central & Shared Costs3 2015 CER shows 2015 results retranslated at 2014 average exchange rates

Payments & Technology KPIs

12%

Commentary


Currency Select



Currency Select

� Growth in revenue streams with roll out of POS/ eCommerce to new merchants in

Australia, New Zealand and Belgium and higher acquiring volumes partially offsetby impact of annualisation of a margin reduction implemented in mid 2014

� EBITDA margin improvement due to revenue growth and lower overhead costs,

partially offset by the increased cost in the acquiring business from higher scheme

and acquirer processing fees

� On 25 February 2016, the Group entered into a binding agreement to dispose of its

100% shareholding in Travelex Outsourcing Pty Ltd (Currency Select) for grossproceeds of AUD65.0m (c.£34.8m)

Digital

� Significant ramp up in the investment to build in-house digital capabilities as part of

the Group’s strategy

� Total digital investment of £9.5m in 2015 includes £3.5m which has been capitalisedto reflect the development cost of new platforms

� Over 200,000 transactions made on Supercard since pilot launch, over 45,000

downloads of the Travelex Money App since the UK launch

� International money transfer (payments) product is on track for launch in UK in 2016

11

Retail

� Weakening of the Real against all major currencies impacted outbound sales

volumes and Retail Revenue throughout 2015. The average exchange rate to theUSD for the year ended December 2015 was 3.39, which was 44% higher than

2014. Spot rate to USD was at 3.61 on 24 March 2016

� Growth in remittance volumes partially offset the sharp decline in cash and prepaid

card revenues in 2015

� The Group continues to focus on optimising the retail estate and tight cost control,

including closing 22 loss-making stores in 2015, product innovation anddiversification through the development of an international payments proposition

supported by a digital platform. Furthermore, the Group has benefitted from the

successful integration of the Renova business, through synergy related cost savings

particularly in staff and property costs

Non retail

� Revenue declined 3% compared to 2014 at constant exchange rates as the

business delivered a resilient performance through business payment services

provided to corporate customers� EBITDA margin reduction was a result of inflationary pressure on the cost base,

particularly in logistics costs

5.8

1.8 2.4

8.5

3.4 4.5

14.3

5.2

6.9

2014 2015 2015 CER

Retail Non Retail

EBITDA

margin: 24%

13%

13%

(52)%

Brazil – Depreciation of Real against USD significantly impacting Revenue performance; continued focus on Retail estate optimisation and cost reduction

Brazil EBITDA1,2,3 (£m)Brazil revenue1,3 (£m)

41.3

26.535.3

18.9

13.8

18.4

60.2

40.3

53.7

2014 2015 2015 CER

Retail Non Retail

(11)%

1 All figures are shown on a “Core Group” basis i.e. including 100% of JVs 2 EBITDA before Central & Shared Costs3 2015 CER shows 2015 results retranslated at 2014 average exchange rates

Brazil KPIs


Retail

Revenue growth (%) (20.0%) (35.8%)

Revenue growth (CER, %) (9.1%) (14.5%)


Non Retail

Revenue growth (%) 12.8% (27.0%)

Revenue growth (CER, %) 28.2% (2.6%)


Commentary

12

7.7 7.6 7.1

2014 2015 2015 CER

Other Trade – Principally Travelex Insurance Services (TIS)

Other Trade EBITDA1,2,3 (£m)Other Trade revenue1 (£m)

1 All figures are based on a “Core Group” basis i.e. including 100% of JVs 2 EBITDA before Central & Shared Costs3 2015 CER shows 2015 results retranslated at 2014 average exchange rates

Other Trade KPIs

34.2 32.7 30.5

2014 2015 2015 CER

(11)%

Key drivers 2014 2015

EBITDA margin – insurance (%) 21.9% 22.6%

22% 23%

Commentary

� Insurance revenue and EBITDA has been impacted following therenegotiation of terms with the underwriter at the end of 2014

� Under the previous contract terms EBITDA would have been £1.1m higherat constant exchange rates

� Despite this renegotiation, EBITDA margin has improved due to loweroperating costs. Underlying volumes remain resilient

� Recently our insurance underwriter reviewed its 50 State Travel Insurancepolicy filings, and has confirmed that a policy fee can no longer be chargedin respect of their insurance products. This change will result in a reductionin future profitability of our Insurance operations. We will continue to targetnew business and higher margin products whilst tightly controlling the costbase to reduce the impact on profitability

23%EBITDA

margin:

(8)%

13

Central & Shared Costs

2014 2015

Central 12.8 12.8

Shared 28.0 31.7

Total Central and Shared(excl. Bonus)

40.8 44.5

Bonus provision 10.7 7.2

Total Central and Shared(incl. Bonus)

51.5 51.7

Central & Shared Costs

� The Group substantially completed its Systems Development and Shared

Service Migration initiative in 2014. Opportunities to offshore additional

activities continue to be assessed on an ongoing basis, including certain

Finance activities

� Centralisation and offshoring of back office functions has led to an increase

in costs reported within Shared. Overall centralisation and offshoring costs

continue to reduce overall functional costs, with savings being realised

principally in the trading segments of Retail and Wholesale & Outsourcing

and consequently higher Shared Costs

Commentary

14

Operating activities:

� Net cash flows with joint ventures consist of dividends received from joint ventures (2015:

£4.8m; 2014: £0.9m), loans received from joint ventures (2015: £0.4m; 2014: £nil) and joint

venture funding (2015: £nil; 2014: £3.4m outflow)

� Increase in adjustment for unconsolidated joint ventures and disposal of France is due to

sale of the French business on 29 January 2015

� Outflow of working capital primarily relates to movements in onerous lease provisions and

reduction in the prepaid card funds awaiting redemption

Taxation:

� Cash tax payments were lower in the year driven by lower tax payments in Brazil and

Japan and tax refunds in Australia and the Netherlands

Investing activities:

� Capital expenditure represents amounts incurred in respect of expansionary and

maintenance of £19.0m (2014: £18.1m), digital of £3.5m (2014: £nil) and finance projects

of £2.7m (2014: £15.4m). Expenditure was higher in 2014 as a result of the Systems

Development and Shared Service Migration project

� On 29 January 2015, in connection with the sale of the Travelex group, Travelex France

Holdings Ltd sold Banque Travelex SA and its 100% subsidiary Travelex Paris SAS to

UAE Exchange Ltd recognising usable cash proceeds of £17.7m

� Cash paid of £1.6m for the acquisition of Renova in Brazil, which was funded by the issue

of subordinated shareholder loan notes (2014: £24.6m investment in Turkey)

� Cash receipts of £3.1m from Western Union on the utilisation of tax losses in the TGBP

business sold in 2011

� Other net investing activities outflow of £5.1m (2014: £5.3m inflow) relate to the purchase

of Brazil government bonds which are classified as available-for-sale investments and heldfor short periods

Financing activities:

� Interest payments relate to the £350m senior secured notes which were issued in August

2013 and drawn down RCF. The senior notes comprise £200m at 8% fixed rate payable

semi-annually plus £150m at a floating rate of 3 month Libor plus 6% payable quarterly.

� The Group acquired the remaining 51% interest in Brazil on 2 February 2015 for £47.4m in

cash. This has been recorded in financing activities in accordance with IFRS as it relates tothe acquisition of a non controlling interest

One off items:

� One-off items include exceptional costs relating primarily to corporate projects including the

sale of the business in 2015

Usable cash flow statementSummary consolidated usable cash flow statement Commentary

£m, year ended 31 December 2014 2015

Core Group EBITDA 85.9 83.2

Less: Unconsolidated Joint Ventures and disposal of France (5.2) (12.2)

Net cash (outflow)/inflow (to)/from Joint Ventures (2.5) 5.2

Movements in cash inventory (cash in tills & vaults inc. FX) (19.8) 7.9

Other movements in working capital (including cash in transit) (6.5) (14.8)

Net usable cash inflow from operating activities 51.9 69.3

Taxation paid (15.5) (5.8)

Purchase of PP&E, software & development (33.5) (25.2)

Proceeds received on disposal of subsidiary (net of usable cash of

£1.6m)- 17.7

Net cash paid on investment in subsidiaries (24.6) (1.6)

Cash received from disposed operations - 3.1

Other net investing activities 5.3 (5.1)

Net usable cash used in investing activities (52.8) (11.1)

Interest paid on secured bonds and RCF (26.0) (27.4)

(Repayment)/proceeds of shareholder loans (4.5) 2.3

Dividends paid to non-controlling interest (2.7) (1.7)

Net cash paid on investment in subsidiary - (47.4)

Drawdown of RCF - 29.9

Purchase of own shares for employee share schemes (0.4) -

Capital element of finance lease payments (0.8) (0.5)

Net usable cash used in financing activities (34.4) (44.8)

Net usable cash outflow from one-off items (20.9) (35.4)

Exchange losses on usable cash (2.1) (6.4)

Net decrease in usable cash (73.8) (34.2)

Usable cash at the beginning of the period 140.1 66.3

Usable cash at the end of the period 66.3 32.1

15

Usable cash, free cash, net debt & liquidity

Commentary

� Cash and cash equivalents includes banknote prepayments and prepaid debit card

float balances which are deducted in arriving at unrestricted cash. The increase in

prepaid card float is due to the timing of amounts being held on deposit

� Free cash – adjusts unrestricted cash for cash allocated to working capital (cash in

tills, vaults and transit) and management’s estimate of cash required locally for

regulatory purposes

� Usable cash – adjusts free cash using a notional estimate of local working capital

requirements. We estimate that two thirds of this cash is not readily accessible as it

is required for working capital requirements of the business

� Usable cash at 31 December 2015 of £32.1m, down from £66.3m at the end of 2014,

reflecting £35.4m of cash costs primarily related to the sale of the business, £47.4m

related to the acquisition of the remaining 51% of Grupo Confidence (‘Brazil’), £27.4m

of interest paid on the senior secured notes and £25.2m of continued capital

investment to deliver the Group’s strategic priorities, partially offset by £17.7m cash

proceeds from the sale of the French business to UAE Exchange Limited as part of the

sale of the Group and £29.9m drawing down on the revolving credit facility

� In October 2015, an important wholesale banknote supplier of the Group served notice

to terminate a key agreement to supply wholesale banknotes which provided

significant working capital benefits, to one of the Group’s UK subsidiaries by late June

2016, in accordance with a contractual break clause. The Group is currently

negotiating mutually acceptable terms under which the supply agreement could be

extended and is confident of successfully concluding the negotiations

� The Group has a committed senior credit facility available of £90.0m under which the

Group can draw down up to £59.9m which will incur interest on utilised amounts at

Libor plus 3.5% and the remaining £30.1m is available to be utilised by guarantees

issued on behalf of the Group. Balances outstanding with key suppliers and under the

revolving credit facility fluctuate significantly from day to day, primarily due to the levels

of physical banknotes required for trading and value of unfulfilled customer orders.

This facility is used to provide short term liquidity to meet operating cash needs. As at

31 December 2015, the facility has £29.9m drawn down and £29.9m has been placed

as guarantees.

Free cash & usable cash£m

31 Dec 2014 31 Dec 2015

Cash and cash equivalents 505.3 437.7

Cash classified as held for sale (France) 9.7 -

Ring-fenced cash and term deposits (39.9) (38.2)

Short-term bank borrowings (3.2) (0.4)

Prepaid debit card floats (146.6) (140.2)

Banknotes prepayments (20.9) (12.3)

Unrestricted cash 304.4 246.6

Cash in tills, vaults and transit (198.6) (188.2)

Management estimate of regulatory cash (15.0) (15.0)

Free cash 90.8 43.4

Cash in business (24.5) (11.3)

Usable cash 66.3 32.1

Net debt£m

31 Dec 2014 31 Dec 2015

Fixed & floating rate notes (343.4) (345.6)

Drawn RCF - (29.9)

Finance leases & other loans (1.4) (0.9)

Gross debt (344.8) (376.4)

Free cash 90.8 43.4

Net debt (254.0) (333.0)

16


1. Key highlights


4. Questions


17

Summary and conclusions

� Travelex has delivered a resilient performance despite the continued strengthening of Sterling during 2015 negatively impacting the

translation of revenues and profits earned outside the UK and the impact of our increased digital investment

� Core Group Revenue increased by 2% to £734.0m (6% increase to £763.6m at CER)

� Core Group EBITDA before the digital investment in Payments & Technology increased by 4% to £89.2m (10% increase to £94.8mat CER)

� Overall Core Group EBITDA decreased by 3% to £83.2m, impacted by the economic downturn in Brazil and an additional £6.0m

investment in Payments & Technology (3% increase to £88.8m at CER)

� Retail revenue up 8% and EBITDA up 20% at CER with growth across all channels, including the acquisition of Turkey, which more

than offset the transfer of a significant contract to Wholesale & Outsourcing. Retail like-for-like revenue growth of 5% with growthacross all channels

� Step change in Payment & Technology investment supporting new innovations and further multi-channel growth

� Launch of the Supercard pilot programme and the development of the Travel Money App

� Overall increase in online and mobile revenue of 18%

� International money transfer (payment) product on track for launch in 2016

� In July 2015 Travelex became the sole provider of Foreign Currency, ATMs and DCC services across all five terminals in Heathrow

Airport and now operates 56 stores and 90 ATMs

� In July 2015 Travelex was awarded approval to conduct the import and export of banknotes in China and provide wholesale banknotes

across the country

� During the year, the Group signed an agreement with Post Office Bank in France allowing customers to order online through Travelex

website

� On 25 February 2016, the Group entered into a binding agreement to dispose of its 100% shareholding in Travelex Outsourcing Pty Ltd(Currency Select) for gross proceeds of AUD65.0m (c.£34.8m)

Our debt investor relations website can be found at http://www.travelex-corporate.com

18

1. Key highlights




4. Questions

19


1. Key highlights



4. Questions

20

Summary balance sheetSummary consolidated balance sheet Commentary

£m Dec 2015 Travellers’ Cheques1

Apax Goodwill

Dec 2015 excl. Travellers’

Cheques and Apax Goodwill

Dec 2014 (restated) excl.

Travellers’ Cheques and

Apax Goodwill

Intangible assets 397 - 239 158 177

Property, plant & equipment 43 - - 43 42

Investments 22 22 - - -

Financial assets 96 96 - - -

Other 27 1 - 26 30

Non current assets 585 119 239 227 249

Assets included in disposal group HFS 2 1 - - 1 25

Trade and other receivables 96 4 - 92 86

Cash and cash equivalents 438 37 - 401 465

Other 25 10 - 15 13

Current assets 559 51 - 508 564

Trade and other payables (615) (246) - (369) (374)

Provisions (23) - - (23) (16)

Financial liabilities (3) - - (3) (48)

Other (34) 1 - (35) (2)

Current liabilities (675) (245) - (430) (440)

Net current (liabilities) assets (116) (194) - 78 124

Borrowings – non-shareholder (345) - - (345) (343)

Borrowings - shareholder (641) - - (641) (1,178)

Other (24) - - (24) (22)

Non current liabilities (1,010) - - (1,010) (1,543)

Liabilities included in disposal group HFS 2 - - - - (18)

Net liabilities (540) (75) 239 (704) (1,163)

� The assets and liabilities relating to

the Travellers’ Cheques business are

excluded from the “Core Group”

� Intangible assets at 31 December

2015 include goodwill of £239m

relating to the 2005 acquisition by funds advised by Apax Partners

� Trade receivables include amounts

due from certain wholesale banknote

customers which are settled within less than one week of being initiated

� Whilst the Core Group holds £438m

of cash and cash equivalents at Dec-15, the amount that is classified as

“Usable Cash” by management is

lower (£32.1m at Dec-15)

� Other current assets includes taxes

receivable and available for sale

investments

� Trade and other payables include prepaid card loads awaiting

redemption, trade creditors and

accruals

� On 29 January 2015, the Group was

sold to Dr B R Shetty and Mr Saeed

Bin Butti, Chairman of Centurion

Investments. On completion, part of

the existing Shareholder Debt was

waived and part was retained in favour of UTX Holdings Limited on

the same terms

``

1 Includes Travellers’ Cheques business outside of the core group; no adjustment has been made for intercompany balances which eliminate on consolidation2 On 29 January 2015 the Group sold its operations in France for £19.3m to UAE Exchange UK Limited, which were classified as Held for Sale as at 31 Dec 2014

21

Working capital

Working capital components

Commentary

� The decrease in YTD CITVT is also

as a result of greater stock initiatives

at Dec 15 year-end and the weakness of the Brazilian Real affecting trade.

� The YTD increase in trade debtors is

a direct result of the timing of orders placed and settled in respect of the

wholesale banknote business.

� The YTD increase in trade creditors is

due to the timing of the WBN orders and the Retail business now being

supplied by TCS.

£m FY 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Cash in tills and vaults (incl Held for

Sale; excl. CIT)188.7 150.7 181.2 165.7 169.2

Debtors

Trade receivables (excl. CIT) 44.1 75.8 104.8 161.8 47.0

Cash in transit adjustment (3.7) (0.1) (1.9) 8.6 0.4

Trade receivables (incl. CIT) 40.4 75.7 102.9 170.4 47.4

Other receivables 21.8 40.5 23.3 24.9 32.2

Prepayments and accrued income 20.9 27.1 19.7 18.3 14.4

Less: Travellers’ cheques amts. (2.5) (4.5) (4.2) (4.2) (4.2)

Less: Brazil acquisition prepayment (7.7) - - - -

Total debtors 72.9 138.8 141.7 209.4 89.8

Creditors

Trade payables (excl. CIT) (127.5) (233.8) (267.8) (437.7) (138.5)

Cash in transit adjustment 6.9 60.4 31.9 35.2 18.6

Trade payables (incl. CIT) (120.6) (173.4) (235.9) (402.5) (119.9)

Other payables (31.0) (48.0) (50.1) (46.3) (37.2)

Accruals and deferred income (90.1) (85.3) (89.7) (83.3) (77.5)

Less: Banknote prepayments 20.9 12.4 4.1 170.1 12.3

Less: Travellers’ cheques amounts 29.6 29.5 30.6 32.3 32.2

Add: Brazil prepaid card liability (18.8) (15.2) (12.9) (10.2) (8.6)

Total creditors (210.0) (280.0) (353.9) (339.9) (198.7)

Net working capital 51.6 9.5 (31.0) 35.2 60.8

22

Reconciliation from Core Group Revenue to Statutory Revenue

£m, full year ended 31 December 2014 2015

Core Group Revenue 721.5 734.0

Joint Venture adjustment for equity accounting (33.9) (42.2)

Travellers’ Cheques 2.1 2.7

Disposal of French business - (40.9)

Other adjustments 3.6 2.1

Statutory Revenue 693.3 655.7

Reconciliation to Statutory Revenue1

1 Historical FX rates used are actual average rates for each period

Joint ventures in UAE, Africa, Qatar and Malaysia are not consolidated in the statutory accounts.

23

Reconciliation from Statutory EBITDA to Core Group and Adjusted EBITDA


Operating profit/(loss) 29.7 (12.3)

Depreciation and amortisation 24.4 25.3

Exceptional items and non-underlying adjustments 25.6 58.6

Net gain on sale of subsidiary - (4.8)

Underlying EBITDA (per the consolidated financial statements) 79.7 66.8

Joint Venture adjustment for equity accounting2 5.2 9.1

Adjustment for French disposal - 3.1

Travellers’ Cheques (1.7) 3.4

Share based payment charge (non-cash) 3.1 0.8

Other adjustments (0.4) -

Core Group EBITDA (100% of JVs and France) 85.9 83.2

Adjustment for proportion of Non-Consolidated JVs (2.6) (4.3)

Adjustment for French disposal - (3.1)

Other adjustments (1.4) -

Adjusted EBITDA** 81.9 75.8

Reconciliation to Statutory and Adjusted EBITDA1

1 Historical FX rates used are actual average rates for each period2 Net of recharges

**Core Group EBITDA consists of EBITDA adjusted to include 100% of the EBITDA of our joint ventures, share-based payment incentive charges, and Banque Travelex SAS which was disposed of in 2015 but is continued to be managed by the Group, and excludes EBITDA attributable to our travellers’ cheques business, which does not form part of the Restricted Group. **Adjusted EBITDA consists of Core Group EBITDA adjusted for the share of non-consolidated joint ventures that are not attributable to the Group and excludes the EBITDA of BanqueTravelex SAS, which was disposed of in January 2015 to UAE Exchange Limited in connection with the sale of the Group.

24

Statutory EBITDA and earnings are impacted by non-cash and exceptional items


Core Group EBITDA 85.9 83.2

Adjustments to arrive at Underlying EBITDA(see further reconciliation on previous page)

(6.2) (16.4)

Underlying EBITDA (per the consolidated financial statements)

79.7 66.8

Operating exceptional items and non-underlying adjustments

(25.6) (53.8)

Operating profit before depreciation, amortisation, interest and tax

54.1 13.0

Depreciation (14.5) (14.1)

Amortisation of intangible assets (6.1) (8.2)

Amortisation of customer relationships and other intangible assets acquired in business combinations

(3.8) (3.0)

Share of profit in equity accounted investments

2.1 3.4

Net finance costs (cash – pay) (25.9) (27.3)

Net finance costs (non-cash – pay) (140.5) (82.2)

Exceptional items and non-underlying adjustments reported within finance income (costs)

2.3 4.2

Tax (13.4) (8.3)

Discontinued 0.6 1.6

Statutory loss after tax (145.1) (120.9)

Financial summary Commentary

� Amortisation of intangible assets has increased in the year ended 2015

compared with the prior year largely due to bringing into use items related

to System Development and Shared Service Migration at the end of 2014.

� Finance costs relate to cash-pay debt, which is debt that requires cash

interest payment, and non-cash pay debt which is debt whose interest compounds and does not require settlement until maturity – see next slide

for further analysis of finance income and finance costs

� Exceptional items and non-underlying adjustments relate primarily to legal,

onerous contracts and professional fees incurred for corporate projects

associated with preparing for the sale of the Group to UTX Holdings Ltd.

25

Net underlying finance costs include significant non-cash pay amounts relating to shareholder loans


Finance costs

Shareholder Loans and preference shares 143.2 81.0

FX losses - -

Movement in Brazil Redemption Liability 1.4 -

Interest on senior secured notes 26.0 26.0

Interest on RCF - 1.9

Other interest costs 4.4 5.2

Total finance costs 175.0 114.1

Finance income

FX gains 8.1 1.8

Interest receivable 0.5 2.8

Total finance income 8.6 4.6

Net finance costs 166.4 109.5

Analysed as:

Cash- pay 25.9 27.3

Non cash pay 140.5 82.2

Underlying finance costs and income Commentary

� Ongoing cash-pay finance costs include:

� The interest costs of the senior secured notes

� The interest costs of the funds drawn down on the RCF

� Other interest costs in the year relate primarily to the fees incurred on

non-utilisation of the RCF prior to draw down as well as the amortisation

of costs related to the 2013 financing

� On 29 January 2015, the Group was sold to Dr B R Shetty and Mr Saeed

Bin Butti, Chairman of Centurion Investments. On completion, part of the

existing Shareholder Debt was waived and part was retained in favour of

UTX Holdings Limited on the same terms. Total shareholder debt

decreased from £1,177m at 31 December 2014, to £639.6m at 31

December 2015, resulting in a reduction in non-cash pay finance costs

26

Further reconciliations

Reconciliation of Usable cash flow from operating activities to

applicable statutory measure


Cash flow from operating activities (statutory measure)

33.0 2.7

Cash paid on investment in joint ventures net of dividends and loan received

(2.5) 5.2

Movement in cash held in tills and vaults (excl. CIT)

(19.9) (7.4)

Movement in banknotes prepayments (8.1) 8.6

Movement in cash and deposits held for the Travellers’ Cheques business

10.8 3.4

Movement in prepaid card float deposits 20.3 11.4

Movement in cash in business (2.6) 10.0

Add: cash exceptional items 20.9 35.4

Usable cash flow from operating activities 51.9 69.3

27

Average FX rate for the year

ended 31 December

2014

Average FX rate for the year

ended 31 December

2015

% movementFX rate as at

31 December2014

FX rate as at 31 December

2015% movement

EUR 1.25 1.38 10% 1.29 1.36 5%

USD 1.65 1.53 (7)% 1.56 1.47 (6)%

JPY 175.25 184.47 5% 186.94 177.28 (5)%

AUD 1.83 2.04 11% 1.90 2.03 7%

BRL 3.88 5.17 33% 4.14 5.84 41%

TRY 3.60 4.19 16% 3.65 4.30 18%

FX Rate Summary

travelex results for the year ended 31 december 2015 · o launch of the supercard pilot programme...

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