Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

RiskRisk RewardReward– Flight -CentreFlightTravelCentreGroup LtdTravel(FLT.AX) Group Ltd (FLT.AX)

Earnings delay from ongoing conflict

PRICE TARGET A$13.25 OVERWEIGHT THESIS

A$14 blended methodology base case: ▪We see FLT as a more more scalable

Discounted cash flow. Key assumptions: WACC of 11% and terminal growth rate of 3%. model vs. pre-Covid.

P/E relative 12x (vs. 14x historical average). ▪We believe the long-term corporate

EV/EBITDA 5.5x (vs. 6x historical average): We feel these multiples factor in both the opportunity is substantial.

inherent volatility of travel as well as sustained double-digit CAGR through the cycle. ▪The leisure business's shift to luxury and

A$14.66 independent agents is also more durable, in

our view.Consensus Price Target Distribution A$12.60 A$19.66 international diversification MS PT ▪Increasing

Source: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates away from the Australian leisure business

and growing corporate earnings deserve a

higher multiple in the long term, we believe.

▪We think valuation looks undemanding vs.

RISK REWARD CHART history and recent track record of market

share gains.

AUD

A$21.00A$21.00(+75.59%)A$21.00(+75.59%)(+75.59%)

Consensus Rating Distribution

20 87% Overweight

13% Equal-weight

0% Underweight

A$13.25A$13.25(+10.79%)A$13.25(+10.79%)(+10.79%) MS Rating

A$11.96A$11.96A$11.96 Source: Refinitiv, Morgan Stanley Research

Risk Reward Themes

Disruption: Negative

A$5.75A$5.75(-51.92%)A$5.75(-51.92%)(-51.92%)

Secular Growth: Positive

Technology Diffusion: Positive

JUN '25 DEC '25 JUN '26 JUN '27 View descriptions of Risk Rewards Themes here

Key: Historical Stock Performance Current Stock Price Price Target

Source: Refinitiv, Morgan Stanley Research