docJames Alba-Duignan, Regional Vice President, Head of Commercial
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James Alba-Duignan, Regional Vice President, Head of Commercial
Best Friends Forever - Travel & Commercial Cards 1 Contents 1. Start with the big numbers 2. Get deeper into the opportunity: – How much spend is Targetable ? – Which companies are Addressable ? 3. Finish with the phone numbers 4. Where the plastic hits the street ! 2 GBTA BTI™ Global Outlook and Forecast 2014-2018 Comprehensive report covering global economy, business travel trends/challenges, and 5-year projections. Global GBTA BTI™ Data “Cube” detailed database of industry sales and business travel spending: for 75 countries by 48 industries covering 2000-2018 country breakouts for domestic and IOB Data Cube (75 Countries) Selection of pivot tables & graphs Domestic BTS Professional & Business Services (48 Sectors) Business Travel Spend (in $USD) IOB BTS Industry Sales (in $USD) Annual Metrics 2000 For more information contact GBTA Foundation Research or visit The Hub 2018 F 3 © 2015 GBTA Foundation. All rights reserved. Global GBTA BTI™ Global GBTA BTI™ and Global Sales (Indexed) 250 208 194 182 167 156 145150 133 133 127 123 Index Value (2005 = 100) 200 150 100 90 80 81 82 92 110 100 50 0 GBTA Global BTI™ Global Sales Index 221 • GBTA BTI™ is an index of business travel activity (spend). It indicates the health of any given business travel market. • Highly correlated with Global Sales, although the GBTA BTI™ is increasingly growing at a slower rate, as biz travel’s productivity improves. GBTA BTI™: Key APAC Markets* Country BTI™ China Indonesia India Singapore Australia Japan 473 301 272 205 157 105 Fastest growing Slowest growing *Shows growth since 2005 based on 2014 spend projections Source: GBTA BTI™ Global Outlook and Forecast 2014 – 2018 (July 2014) 4 © 2015 GBTA Foundation. All rights reserved. Global BT Spend Growth since 2009 Total Business Travel Growth % Year‐Over‐Year 8.0% 9.3% 6.9% 3.2% 4.5% $869B $939B $1.03T $1.06T $1.11T $1.18T 2009 2010 2011 2012 2013 2014 (f) ‐7.5% Source: GBTA BTI™ Global Outlook and Forecast 2014 – 2018 (July 2014) 5 © 2015 GBTA Foundation. All rights reserved. Global Distribution of BT Spend (2014) Europe: $326 billion (28%) North America: $322 billion (27%) Asia-Pacific: $456 billion (39%) Latin America: $54 billion (5%) MEA: $24 billion (2%) Source: GBTA Foundation, Rockport Analytics 6 © 2015 GBTA Foundation. All rights reserved. Projected Growth Over Next 5 Years China United States Germany Japan United Kingdom France Brazil South Korea Italy India Russia Canada Australia Indonesia Spain Forecast Actual Spend 2013 Spend 2018 ($ millions ($ millions USD) USD) $225,052 $424,722 $273,684 $340,097 $53,923 $74,856 $60,858 $67,444 $41,184 $55,944 $35,102 $47,626 $31,156 $43,276 $30,922 $41,624 $30,437 $38,843 $24,358 $38,361 $22,200 $29,472 $21,709 $25,237 $20,193 $23,859 $14,433 $23,493 $16,806 $22,925 2013 Ranking 2 1 4 3 5 6 7 8 9 10 11 12 13 16 15 2018 Ranking 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Change in Rank +1 -1 +1 -1 +2 - Source: GBTA BTI™ Global Outlook and Forecast 2014 – 2018 (July 2014) 7 © 2015 GBTA Foundation. All rights reserved. Contents 1. Start with the big numbers 2. Get deeper into the opportunity: – How much spend is Targetable ? – Which companies are Addressable ? 3. Finish with the phone numbers 4. Where the plastic hits the streets ! 8 Having started with ‘the big numbers’.... GBTA is a great source and the creators* of the data can also break it down into components: 1. Pre-bookable (Air, Accom, Rental Car or Rail) 2. Cardable (pre-bookable plus Food & Beverage) 3. Other (Ground Transportation for MRO** or freight, plus all other trip-related costs) A Business Travel-focused ‘target market’ is a combination of (1) or (2) and companies of a certain size * Rockport Analytics ** Maintenance, Repairs, Operations 9 …we need to take a step back 2014 Australia India China PreFood & Bookable Beverage 60% 18% 62% 16% 62% 16% Other Spend 23% 22% 23% For comparison: USA Germany Brazil 57% 63% 51% 15% 19% 16% 28% 18% 33% …and be specific when defining ‘TARGETABILITY’ 10 BT spend varies a lot by industry Source: GBTA, Rockport Analytics Example: Australia 11 So it’s often best to reduce the complexity to an aggregated definition Now we have to match with ‘ADDRESSABILITY’ Source: GBTA, Rockport Analytics Example: Australia 12 …which is complex to start with… <$10m turnover 96% of companies <---- company universe broken down into size bands (e.g. ‘small, med, large’) ----> 43,501 identifiable companies with turnover > US$10m equivalent 22% of total turnover <$100k BT Spend * Source: Dun & Bradstreet * Approximation - varies by industry (GBTA calculations are applied) Example: Australia 13 …so we also need to simplify + apply % of BT spend to turnover by SIC BT Spend (GBTA total) as a % of Turnover Similar: Extreme: Familiar: Agriculture Auto & Logistics Construction Consumer Products Utilities / Mining / Energy Manufacturing & Engineering Financial Services Government / Public Sector Healthcare & Life Science Non‐Government Orgs Media & Entertainment Professional Services Technology & Software Telecomms Travel Total Code A B C D E F G H I J K L M N O Aus‐ tralia China India 0.81% 0.95% 0.56% 0.22% 0.68% 1.07% 0.55% 0.65% 0.02% 1.63% 0.90% 1.15% 0.70% 1.35% 0.94% 0.79% 0.71% 0.89% 0.49% 0.17% 0.88% 0.95% 0.44% 0.65% 0.32% 1.55% 0.86% 0.90% 0.80% 1.08% 0.65% 0.82% 0.76% 1.40% 0.47% 0.17% 0.74% 0.75% 0.46% 0.66% 0.05% 1.52% 0.67% 1.07% 1.01% 3.89% 1.59% 0.74% Source: Dun & Bradstreet, GBTA 14 and multiply out total company turnover x % BT spend = ‘Addressability’ Source: Dun & Bradstreet Example: Australia 15 ‘Addressability’ differs by market Removing companies with <US$10m total turnover / approx <US$100k BT spend Source: Dun & Bradstreet 16 …as does $ distribution by industry Source: Dun & Bradstreet 17 So let’s look at some specific examples across 3 markets in Asia • Australia • India • China Note: a wide range of countries in Asia are measured by GBTA, and all of these have a good record of credit referencing i.e. Dun & Bradstreet coverage 18 Australia – worked example (1) Pre-Bookable BT Spend Only * Source: GBTA, Rockport Analytics * Excludes Food & Beverage, Other Ground Transportation, Other Trip Spending 19 Australia – worked example (2) SIC 87 (Engineering, accounting, research, management and related services) Turnover size band: $200-500m => 61 companies Source: Dun & Bradstreet 20 Australia – worked example (3) D&B hold 2 separate lists for all countries covered, and it is critical to know the difference…. (1) Modelled D‐U‐N‐S 740479738 741530765 743076630 744581849 750093072 750470957 750715138 750981706 751708058 752175984 752854927 753232722 753599807 754667541 755064891 755403404 756108809 756686036 757529722 758930929 – for single legal entities, and …. Business Name City Name Telephone Number Modelled Annual Sales ($) REMUNERATION SERVICES (QLD) PTY LTD BRISBANE 1300304010 $327,314,567 KELLER GROUND ENGINEERING PTY LTD BAULKHAM HILLS 288661155 $368,293,022 CONSOLIDATED CONTRACTING COMPANY AUSTRALIA PT BRISBANE 732303060 $400,125,035 SRG CIVIL PTY LTD SOUTH MELBOURNE 392968100 $279,917,044 RCR RESOLVE FM (ENGINEERING) PTY LTD SURRY HILLS 292135500 $397,678,457 UNITED TECHNOLOGIES AUSTRALIA HOLDINGS LIMITED MASCOT 1300727041 $423,714,967 ARA ELECTRICAL ENGINEERING SERVICES PTY LIMITED INGLEBURN 298296099 $278,073,558 TOURAUST SERVICES PTY LIMITED MANLY 289622444 $285,287,370 JALCO FOOD AND BEVERAGE PTY LIMITED KINGSGROVE 298174000 $214,962,961 GEORGIOU GROUP PTY LTD OSBORNE PARK 892002500 $391,520,241 CUSTOM SERVICE LEASING PTY LTD RICHMOND 394257333 $402,792,782 ZENON AUSTRALIA PTY LTD NORTH SYDNEY 299788100 $272,317,795 MARINE COMPUTATION SERVICES KENNY PTY LTD PERTH 863142555 $402,535,455 CREDIT SUISSE MANAGEMENT (AUSTRALIA) PTY LIMITED SYDNEY 282054400 $217,241,440 LINK ADMINISTRATION PTY LIMITED SYDNEY 282807100 $318,507,883 AMEC FOSTER WHEELER ENVIRONMENT & INFRASTRUCTUBRISBANE 732292500 $299,694,630 BUREAU VERITAS MINERALS PTY LTD PORT MELBOURNE 399220700 $325,374,265 A J LUCAS JOINT VENTURES PTY. LIMITED MACQUARIE PARK 294904000 $213,343,880 FUGRO AIRBORNE SURVEYS PTY LTD WEST PERTH 892736400 $203,570,766 AVEO RETIREMENT HOMES LIMITED SYDNEY 292706100 $213,372,400 Source: Dun & Bradstreet 21 Australia – worked example (4) D&B hold 2 separate lists for all countries covered, and it is critical to know the difference…. (2) Assigned – for companies that are part of a group D‐U‐N‐S 740175893 740945084 742165624 743253403 744902818 747462430 749796397 750649092 751443664 751799425 752722012 753194406 754097728 754930597 755293842 756238325 756700274 757501291 758898258 759662562 Business Name ARUP PACIFIC PTY LTD SAVAGE & PARTNERS PTY LTD LYCOPODIUM LIMITED AIRASIA X SERVICES PTY LTD CCIC AUSTRALIA PTY LTD RIDER LEVETT BUCKNALL NT PTY LTD FURMANITE AUSTRALIA PTY LTD RENEWABLE POWER VENTURES PTY LTD QIC FINANCE (SHOPPING CENTRE FUND) PTY LTD MI POWER (QLD) PTY LTD VDM PROJECTS PTY LTD LYCOPODIUM PROCESS INDUSTRIES PTY LTD THE BIRCHMAN GROUP ASIA PACIFIC PTY LTD ENGENCO LIMITED WINSLOW GROUP PTY. LTD. RIDER LEVETT BUCKNALL SA PTY LTD MERIDIAN CONCRETE AUSTRALIA PTY. LTD. FRANK PUBLIC RELATIONS PTY LIMITED TECHNIGRO PTY LTD PB AUSTRALIA PTY LIMITED City Name Telephone Number Assigned Sales ($) vs Group SYDNEY 293209320 $268,397,126 SYDNEY 282813232 $334,269,999 PERTH EAST 862105222 $243,891,411 FORTITUDE VALLEY 415603737 $208,139,146 HURSTVILLE 295803212 $359,117,710 DARWIN 889412262 $325,856,639 PORT MELBOURNE 392852200 $427,294,000 SYDNEY 280319900 $255,834,037 BRISBANE 733603800 $477,494,854 MACKAY 749531490 $278,190,509 PERTH EAST 892651100 $271,248,416 MULGRAVE 395663700 $243,891,411 PERTH 893222808 $334,800,058 MELBOURNE 386208900 $204,371,340 CAMPBELLFIELD 393587700 $364,442,517 ADELAIDE 881001200 $325,856,639 SOUTH MELBOURNE 392968100 $279,917,044 SURRY HILLS 282020555 $333,884,892 VARSITY LAKES 755932655 $282,353,955 SYDNEY 292725100 $438,925,042 Source: Dun & Bradstreet 22 China – worked example (1) Source: GBTA, Rockport Analytics 23 China – worked example (2) SIC 31 (Leather and leather products) Turnover size band: $100m-$1bn => 53 companies Source: Dun & Bradstreet 24 China – worked example (3) 10 companies pulled at random from Modelled (single legal entities) and Assigned (group) lists D‐U‐N‐S 421421314 526930650 526940216 527220834 527259782 528164440 529045935 529272544 529815235 Business Name Fujian Feiyue Shoes & Clothes Co.,Ltd. Futian Hengyu Shoes Industry Co., Ltd. Foshan Nanhai Babala Shoe Industry Co.,Ltd. Guangzhou Panyu SIMONE Handbag Co., Ltd. Shishi Mengshida Shoes Industry Co., Ltd. Spider King Group Co., Ltd. Wendeng Huaguan Leather Industry Co., Ltd. Dongyi Shoes Co., Ltd. Huilai County Xinhongkai Toys Co., Ltd. D‐U‐N‐S 420995528 421292966 526863615 526876948 527852127 528164440 528185022 529040698 529334591 529372393 Business Name Hype (Tianjin) Shoes Co Ltd Haining Nippi Leather Co., Ltd. Foshan Saturday Shoes Co., Ltd. Tianjin Newvit Mobile Accessory Co., Ltd. Optibelt Power Transmission (Taicang) Co., Ltd. Spider King Group Co., Ltd. Suzhou Regal Leather Goods Co., Ltd. Cixi Chengxin Shoes Industry Co., Ltd. Guangzhou Suide Shoes Industry Co., Ltd. Zhuhai Special Economic Region Yuyuan Industry Co., Ltd. City Name CEO Job Title Nanan Director Putian Chairman Foshan General Manager GuangzhouLegal Representativ Quanzhou Chairman Wenzhou General Manager Wendeng Director Wenzhou Chairman Jieyang General Manager City Name Tianjin Haining Foshan Tianjin Taicang Wenzhou Taicang Cixi Guangzhou Zhuhai CEO Job Title Legal Representative Chairman Chairman Legal Representative General Manager Chairman Director‐Geral General Manager Legal Representative Tel Number 59526886666 5943998333 75785887625 2084754777 59588588111 57767379955 6318871238 57788055555 6636613697 Tel Number 2281282983 57387502613 75786250300 2228542875 51253587288 57767379955 51253603704 57463550366 2084551111 7568613456 Modelled Annual Sales ($) $103,028,688 $108,144,936 $114,259,600 $163,657,082 $127,833,045 $127,828,379 $109,697,003 $146,578,524 $108,464,205 Assigned Sales ($) vs Group $298,096,951 $383,517,360 $298,096,951 $136,268,100 $290,529,590 $147,002,636 $377,245,777 $857,068,124 $843,576,263 $144,379,897 Source: Dun & Bradstreet 25 India – worked example (1) Pre-Bookable BT Spend Only * Source: GBTA, Rockport Analytics * Excludes Food & Beverage, Other Ground Transportation, Other Trip Spending 26 India – worked example (2) SIC 28 (Chemical and allied products) Turnover size band: $100-200m => 98 companies Source: Dun & Bradstreet 27 India – worked example (3) 10 companies pulled at random from Modelled (single legal entities) and Assigned (group) lists D‐U‐N‐S 650047046 650061856 650068620 650123045 650188576 650226046 650376874 650445950 650538650 650604825 Business Name DIC INDIA LIMITED THIRUMALAI CHEMICALS LIMITED FUTURA POLYESTERS LIMITED I G PETROCHEMICALS LIMITED COLUMBIA PETRO CHEM PRIVATE LIMITED AARTI DRUGS LIMITED BIOLOGICAL E. LIMITED INDOCO REMEDIES LIMITED STYROLUTION INDIA PRIVATE LIMITED JUBILANT AGRI AND CONSUMER PRODUCTS LIMITED City Name Kolkata Mumbai Mumbai Mumbai Mumbai Mumbai Hyderabad Mumbai Mumbai Noida D‐U‐N‐S 650049463 650064850 650071897 650123045 650144074 650220163 650319197 650398691 650479173 650604825 Business Name City Name MERCK LIMITED Mumbai SHASUN PHARMACEUTICALS LIMITED Chennai PLANT LIPIDS PRIVATE LIMITED Ernakulam I G PETROCHEMICALS LIMITED Mumbai FUTURA POLYMERS ‐ (DIVISION OF FUTURA POLYESTERS LIMChennai HETERO DRUGS LIMITED Hyderabad SREE RAYALASEEMA ALKALIES & ALLIED CHEMICALS LIMITED Kurnool PATANJALI AYURVED LIMITED Haridwar TWILIGHT LITAKA PHARMA LIMITED Mumbai JUBILANT AGRI AND CONSUMER PRODUCTS LIMITED Noida Tel Number 3324496591 2224017841 2224952311 2230286100 2266002313 2224019025 4030213999 2226541851 2240415308 1204361000 Tel Number 2266609000 4443446700 4842760395 2230286100 4425941705 4023704923 8518289602 8979010504 2233415300 1204361000 Modelled Annual Sales ($) $111,359,461 $165,020,485 $126,231,692 $193,397,879 $167,781,894 $153,023,931 $112,035,646 $115,202,079 $118,846,811 $181,331,476 Assigned Sales ($) vs Group $120,862,660 $141,579,838 $114,683,693 $193,397,879 $123,900,062 $187,842,123 $149,108,667 $156,977,503 $148,227,862 $186,366,372 Source: Dun & Bradstreet 28 In Summary: ‘Go’ then ‘Grow’ ‘Grow’: prioritize prospects Country x Industry Vertical x Size Band List companies within each cluster Industry ‘Go’: where to focus acquisition Objective: measure the targetable, addressable market opportunity by industry, in specific size bands above minimum spend (set at $XXXk) within each country D‐U‐N‐S 740479738 741530765 743076630 744581849 750093072 750470957 750715138 750981706 751708058 752175984 752854927 753232722 753599807 754667541 755064891 755403404 756108809 756686036 757529722 758930929 Business Name City Name Telephone Number REMUNERATION SERVICES (QLD) PTY LTD BRISBANE 1300304010 KELLER GROUND ENGINEERING PTY LTD BAULKHAM HILLS 288661155 CONSOLIDATED CONTRACTING COMPANY AUSTRALIA PT BRISBANE 732303060 SRG CIVIL PTY LTD SOUTH MELBOURNE 392968100 RCR RESOLVE FM (ENGINEERING) PTY LTD SURRY HILLS 292135500 UNITED TECHNOLOGIES AUSTRALIA HOLDINGS LIMITED MASCOT 1300727041 ARA ELECTRICAL ENGINEERING SERVICES PTY LIMITED INGLEBURN 298296099 TOURAUST SERVICES PTY LIMITED MANLY 289622444 JALCO FOOD AND BEVERAGE PTY LIMITED KINGSGROVE 298174000 GEORGIOU GROUP PTY LTD OSBORNE PARK 892002500 CUSTOM SERVICE LEASING PTY LTD RICHMOND 394257333 ZENON AUSTRALIA PTY LTD NORTH SYDNEY 299788100 MARINE COMPUTATION SERVICES KENNY PTY LTD PERTH 863142555 CREDIT SUISSE MANAGEMENT (AUSTRALIA) PTY LIMITED SYDNEY 282054400 LINK ADMINISTRATION PTY LIMITED SYDNEY 282807100 AMEC FOSTER WHEELER ENVIRONMENT & INFRASTRUCTUBRISBANE 732292500 BUREAU VERITAS MINERALS PTY LTD PORT MELBOURNE 399220700 A J LUCAS JOINT VENTURES PTY. LIMITED MACQUARIE PARK 294904000 FUGRO AIRBORNE SURVEYS PTY LTD WEST PERTH 892736400 AVEO RETIREMENT HOMES LIMITED SYDNEY 292706100 D‐U‐N‐S 740175893 740945084 742165624 743253403 744902818 747462430 749796397 750649092 751443664 751799425 752722012 753194406 754097728 754930597 755293842 756238325 756700274 757501291 758898258 759662562 Business Name ARUP PACIFIC PTY LTD SAVAGE & PARTNERS PTY LTD LYCOPODIUM LIMITED AIRASIA X SERVICES PTY LTD CCIC AUSTRALIA PTY LTD RIDER LEVETT BUCKNALL NT PTY LTD FURMANITE AUSTRALIA PTY LTD RENEWABLE POWER VENTURES PTY LTD QIC FINANCE (SHOPPING CENTRE FUND) PTY LTD MI POWER (QLD) PTY LTD VDM PROJECTS PTY LTD LYCOPODIUM PROCESS INDUSTRIES PTY LTD THE BIRCHMAN GROUP ASIA PACIFIC PTY LTD ENGENCO LIMITED WINSLOW GROUP PTY. LTD. RIDER LEVETT BUCKNALL SA PTY LTD MERIDIAN CONCRETE AUSTRALIA PTY. LTD. FRANK PUBLIC RELATIONS PTY LIMITED TECHNIGRO PTY LTD PB AUSTRALIA PTY LIMITED City Name Telephone Number SYDNEY 293209320 SYDNEY 282813232 PERTH EAST 862105222 FORTITUDE VALLEY 415603737 HURSTVILLE 295803212 DARWIN 889412262 PORT MELBOURNE 392852200 SYDNEY 280319900 BRISBANE 733603800 MACKAY 749531490 PERTH EAST 892651100 MULGRAVE 395663700 PERTH 893222808 MELBOURNE 386208900 CAMPBELLFIELD 393587700 ADELAIDE 881001200 SOUTH MELBOURNE 392968100 SURRY HILLS 282020555 VARSITY LAKES 755932655 SYDNEY 292725100 Objective: identify companies and directors to approach 29 Contents 1. Start with the big numbers 2. Get deeper into the opportunity: – How much spend is Targetable ? – Which companies are Addressable ? 3. Finish with the phone numbers 4. Where the plastic hits the street ! 30 Where the plastic hits the street ! India • Travel largely domestic • Overseas trips tend to be longer durations • Gradual take up of corporate cards • 80-90% corporate air fares still on Invoice (BSP moving to 7 days) • Companies want Individual liability – leads to low credit limits on cards • Growing demand in e-commerce – domestic and overseas • Growing demand for products such as debit and pre-paid 31 Where the plastic hits the street ! China • Cash is King – changing winds – low desire for transparency • Lower demand for “Fam” trips/ Incentive trips (re-adjustment) • Domestic travel is 95% of all BTS • On line booking is the norm (which is on commercial cards) • Leisure providing growth in outbound travel (growing middle class) • Familiarity with debit cards (not credit or charge) • Growing interest for data, reporting and transparency (cards / EMS) 32
