Webjet : Chair address and MD presentation

22 October 2020

Market Announcements Office

Australian Securities Exchange Limited

20 Bridge Street

SYDNEY NSW 2000

Dear Sir

Chairman address and Managing Director presentation

Attached is the Chairman address to be delivered by Roger Sharp - Chairman, and the Managing Director presentation to be provided by John Guscic - Managing Director, at the Webjet Limited Annual General Meeting.

The address and presentation will be webcast live at Webjet AGM meetingfrom 5pm (AEDT) today and will be archived on the Webjet Limited website for viewing.

This announcement was authorised for release by the Chairman.

For more information:

Carolyn Mole, Head of Investor Relations

[e-mail]

2020 AGM

Level 2, 509 St Kilda Road | Melbourne | Victoria 3004 | Australia. ABN 68 002 013 612

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22 October 2020

Chairman's address

Good afternoon ladies and gentlemen it is now just after 5.00pm Melbourne time, and I would like to extend a warm welcome to you to the Webjet Annual General Meeting for 2020. My name is Roger Sharp, and I will chair today's meeting.

Our Company Secretary Tony Ristevski confirms that a quorum is present and that no other items of business have been notified, therefore we will work to the agenda published with the Notice of Meeting.

I now formally declare the meeting open.

Today's meeting is being held online via the Lumi platform in response to Government restrictions and the potential health risks associated with the ongoing COVID-19 pandemic. This allows shareholders, proxies and guests to attend the meeting virtually. All attendees can watch a live webcast of the meeting. In addition, shareholders and proxies have the ability to ask questions and submit votes.

The Notice of Meeting and Explanatory Statement were despatched to shareholders on 18 September 2020 in compliance with the Company's constitution, and I propose to take them as read.

Introductions

Before we get underway, I would like to introduce my fellow directors: Deputy Chairman, Don Clarke; Lead independent Director, Brad Holman; Managing Director, John Guscic; Non-Executive Director and Audit Committee Chair Toni Korsanos and Non-Executive Director Shelley Roberts.

I would also like to take this opportunity to introduce the senior members of the management team who are present today. There are too many to call out individually however I do wish to acknowledge our Chief Financial Officer Tony Ristevski and our chief Commercial Officer Shelley Beasley.

I'd also like to acknowledge the presence of our audit partner from Deloitte, Stephen Roche.

Today's meeting is being webcast to the wider investment community.

Financial Results

On 19 February 2020 Webjet announced a record FY20 first half result and provided full year guidance of $162-172m of EBITDA. At the time, when COVID-19 was emerging from Asia, the travel industry's previous experience with SARS and MERS pointed to a six-month recovery period. However, clearly that proved not to be the case.

Our first half record profits quickly became a memory as borders were closed from March, and the gains of the first half were erased. Full year FY20 TTV was down 21% on the prior year at $3.0 billion, revenue was down 27% to $266.1 million and EBITDA for underlying operations was down 80% to $26.4 million.

By year end, most of the global travel industry was on life support, and Webjet was losing money. In the face of this existential threat your company acted quickly to rethink its strategy, restructure and recapitalise.

2020 AGM	Level 2, 509 St Kilda Road | Melbourne | Victoria 3004 | Australia. ABN 68 002 013 612	Page 1 of 4

Your Company's Response to the Pandemic

Our response involved a review of our strategy as a company, our people, our technology, our operating costs, our investments and our balance sheet. It was quickly becoming unclear how long the crisis would last, so we decided to focus on the matters that we could control.

We determined that we would recapitalise early to remove all financial uncertainty from the business, so we could focus on emerging leaner, faster, hungrier and more focused on our customers than ever before. This would require some strategic thinking, and in a hurry.

Strategy

Before recapitalising we revisited our strategy as a company to make sure we could emerge from this crisis stronger. Strategies were put in place to win market share and be more profitable in all of our businesses so that we are well- placed to compete as soon as travel markets reopen.

WebBeds' transformation strategy is aimed at it emerging as the #1 global B2B player. Webjet OTA's strategy is to leverage its brand strength and prepare for a domestic-led tourism recovery while we wait for international markets to progressively re-open. Online Republic's strategy is to improve its underlying performance through sharpening its product offering and enhancing its processes.

Restructuring

Having confirmed our strategy, we quickly embarked on an urgent restructuring aimed at significantly reducing the company's costs, leaving the fabric of the business intact so that it could capitalise on the upturn when it eventuates. A range of initiatives quickly reduced costs by around 50%, from a mixture of job reductions, four-day working weeks and pay cuts, as well as reductions in other operating expenditure. The Webjet Exclusives and Online Republic cruise businesses were closed.

Having rethought our strategy and taken cost out, the next step was clearly to recapitalise the business.

Recapitalisation

In April 2020 we completed a $346 million institutional placement and accelerated pro-rata,non-renounceable entitlement offer. In a volatile and highly environment, this was not a straight-forward process. Shortly after balance date we followed with a €100 million (A$163 million) Notes offering.

The proceeds from the placement and entitlement offer materially strengthened the company's balance sheet and supported the unwind of negative working capital and reduction of B2B debtor exposure. $50 million of the Notes proceeds were applied to repaying existing term debt. We worked proactively with our bankers to extend the maturity of our remaining term debt, which is now due in November 2022. Banking covenant waivers have also been obtained.

As a consequence, Webjet entered FY21 in a strong financial position, with adequate cash reserves for at least two years of difficult trading, as well as an extended senior debt maturity.

Customer Service

I would like to focus for a moment on customer service within our Webjet OTA. This business was founded on the philosophy that we would offer our customers convenience, choice and great service.

It is a source of regret to us that this pandemic has affected our ability to consistently provide the level of service we have prided ourselves in for more than 20 years. That is now resolving itself, with over 30,000 refunds in process or delivered from our airline partners, and some of our 100,000 customers with flight credits now beginning to redeem their credits for new trips around Australia.

We continue to work with airlines and other providers to secure refunds and obtain satisfactory outcomes for our customers. Rest assured this remains a key priority for our Customer Service teams.

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Recovery

Let's turn to the recovery. At the time of the half year result, it was almost inconceivable that we would end up in the current situation. It is fair to say that this is nothing like other pandemics that the industry has experienced, and will likely require widespread availability of vaccines for travel as we knew it to resume.

On that note, we do believe there is a reasonable probability that safe and effective vaccines and other pandemic management strategies will start to become available in the near future. However, the speed and efficacy of those processes being rolled out will vary greatly, market by market.

At Webjet we believe that people will resume their travel patterns as soon as conditions permit. We see considerable pent-up demand building for the travel services and products that we sell. We see this especially in the leisure sector, which will come out of the gates strongly. This recovery will be decidedly non-linear and will initially emerge where either there are vaccines, or in safe corridors.

The strategies I've already spoken about are focused on ensuring we are there to capture demand as it emerges, and provide great service to our customers and partners.

Governance

I'll now move to governance. With the global travel industry arguably being the worst-affected industry globally by the COVID-19 pandemic, a focus on strong governance and risk management practices have never been more important.

Our key focus during this difficult time has been to ensure the company survives and that our staff are safe. We remain conscious of and committed to meeting our contemporary governance responsibilities and we will continue to expand our focus and reporting on them as the pandemic resolves itself.

The company's policies can be easily accessed at the governance pages of our investor website and include policies on governance, corporate social responsibility and sustainability.

At Webjet we are proud to run an inclusive and diverse meritocracy that cares about its people and its customers, and understands its environmental and social responsibilities.

We recognise the importance of operating in an environmentally responsible manner and that our customers want to be able to make sustainable choices. To that end we recently introduced carbon offsets to the Webjet OTA - a unique value proposition that enables our customers to choose to travel with multiple suppliers but to link their purchase with a carbon offset across the entire journey.

Executive Remuneration

I would like to focus now on the subject of Executive Remuneration. During calendar 2020 we quickly effected reductions in our overheads, which has required us to reduce both headcount and salaries. As a consequence, our people have made quite significant sacrifices. Our employees either took 20% pay cuts or moved to four day weeks. Our Managing Director voluntarily took a 60% pay cut. Your directors took a voluntary 20% reduction in their directors' fees. All equity incentives and FY20 STIs were cancelled.

It is in that context that your board today seeks shareholder approval to introduce new Long-Term Incentive Plans for our senior leadership team and for our Managing Director.

It is timely for us to remind shareholders just how scarce real talent is in this environment. The pandemic has unleashed a full-scale global digital transformation, and that means that tech companies everywhere are engaged in a war for talent. We have that talent, it is in demand, and we need to protect it.

Your board is acutely aware that there have been substantial "against" votes on Resolution 7, which is the resolution to approve the proposed award of options for our Managing Director, John Guscic, under the Company's Long Term Incentive Plan. Since consulting with proxy advisors and negotiating the terms with John, the share price has risen materially, to the extent that some commentators believe these options are in the money and that there is therefore somehow a transfer of wealth from the company to John. I wish to make a couple of critical observations in relation to this perception.

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