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CHAIRMAN’S REPORT
Qantas performed strongly in
2014/2015 to achieve its best
result since before the Global
Financial Crisis, enabling the
Group to both strengthen its
balance sheet and resume
shareholder returns. On
behalf of the Board, I would
like to thank all Qantas Group
employees for their hard work
and commitment in turning
the business’ performance
around and laying the
foundations for future growth.
Strong Performance
Alan Joyce and his leadership
team deserve great credit for the
progress the Group made with its
$2 billion Qantas Transformation
program in 2014/2015. The program
realised $894 million in benefits,
ahead of targets.
There were tailwinds in the
operating environment – including
lower fuel prices and a weaker
Australian dollar – which benefitted
the Group.
However, it was the implementation
of the Group’s strategy that
had most bearing on the result.
The Group reduced costs, grew
revenue and continued to improve
the experience for Qantas and
Jetstar customers. Each of the
Group’s businesses made a
good contribution to the overall
performance and returned its cost
of capital. Operating cash flow in
2014/2015 was a healthy $2 billion.
Proposed Capital Return
Qantas returned to an optimal
capital structure in 2014/2015,
having reduced debt, increased
liquidity and improved Group-wide
return on invested capital to
16 per cent.
As a result, the Board has proposed
a $505 million capital return to
shareholders and related share
consolidation, subject to approval
by shareholders at the Annual
General Meeting in October 2015.
Shareholders have shown patience
and loyalty through a period of
necessary transformation for
Qantas. The Board has been
committed to resuming a form
of shareholder returns at the
appropriate time and we are pleased
that the Group’s performance and
financial position enable us to do
so now.
Board Changes
The renewal of the Qantas
Board continued in 2014/2015.
We welcomed a new Director in
Todd Sampson, one of Australia’s
foremost brand and marketing
experts, while Garry Hounsell
retired after a decade on the Board.
I thank Garry for his outstanding
service and wise counsel at an
important and challenging time
in Qantas’ history.
“The Group reduced costs, grew
revenue and continued to improve
the experience for Qantas and
Jetstar customers.”
LEIGH CLIFFORD AO
CHAIRMAN AND INDEPENDENT NON-EXECUTIVE DIRECTOR
02
QANTAS ANNUAL REPORT 2015