Key Highlights Q4/2018 Business result. Dec,2018

Transcription

1 Key Highlights Q4/2018 Business result Dec,2018

2 Disclaimer INFORMATION CONTAINED IN OUR PRESENTATION IS INTENDED SOLELY FOR YOUR REFERENCE. SUCH INFORMATION IS SUBJECT TO CHANGE WITHOUT NOTICE, ITS ACCURACY IS NOT GUARANTEED AND IT MAY NOT CONTAIN ALL MATERIAL INFORMATION CONCERNING THE COMPANY. NEITHER WE NOR OUR ADVISOR MAKES ANY REPRESENTATION REGARDING, AND ASSUMES NO RESPONSIBILITY OR LIABILITY FOR, THE ABILITY, THE ACCURACY OR COMPLETENESS OF, ANY ERRORS OR OMISSION IN, ANY INFORMATION CONTAINED HEREIN. IN ADDITION, THE INFORMATION MAY CONTAIN PROJECTIONS AND FORWARD-LOOKING STATEMENT THAT REFLECTS THE COMPANY'S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND FINANCIAL PERFORMANCE. THESE VIEW ARE BASED ON CURRENT ASSUMPTIONS WHICH ARE SUBJECT TO VARIOUS RISK FACTORS AND WHICH MAY CHANGE OVER TIME. NO ASSURANCE CAN BE GIVEN THAT FUTURE EVENTS WILL OCCURS, THAT PROJECTIONS WILL BE ACHIEVED, OR THAT COMPANY ASSUMPTIONS ARE CORRECT. ACTUAL RESULT MAY DIFFER MATERIALLY FROM THOSE PROJECTED. THIS PRESENTATION IS STRICTLY NOT TO BE DISTRIBUTED WITHOUT THE EXPLICIT CONSENT OF THE COMPANY'S MANAGEMENT UNDER ANY CIRCUMSTANCES. 1

3 Key Highlights Carried 5.6 m passengers Q4.2018, an increase of 35.5% vs. Q (4.1 m); Carired 23.1m passengers 2018, an increase of 33.5% vs (17.3m). Capacity in Q is 6.3 m seat flown, increase 26% compared with Q (5.0m). Vietjet operate 105 routes in Q including 39 Domestic routes and 66 International routes, compared with 38 Domestic routes and 57 International routes in Q Airline Revenues Q achieve 8,401 billion VND, increased 48% vs. Q (5,675 billion VND). Operating Profit of Air Transportation in Q reached 939 billion VND, 96% higher than that in Q4.2017(479 billion VND). Load Factor is maintained at high figure with nearly 88.06% in Achieved the highest technical reliability of 99.61% among top Airlines in Asia Pacific region. Foreign Exchange rate as at 31/12/2018 is VND/USD, compared with VND/USD in 31/12/2017. Fuel price Jet A1 (MOPS) in Dec 2018 is USD/barrel, 9% increased compared with that in Dec

4 Operating statics Modern and young fleet with average age of 2.82 years comprising 23 Airbus A320s and 34 A321s and 7 A321NEO as of Dec Number of Aircraft EOP Operated an extensive network of 39 Q Q domestic routes and 66 international routes, services as of Dec Vietjet operated a total of 28,865 flights Q and 118,555 flights Total sector flown ( 000) , increased 22% vs 2017 (97,300 flights). Q Q YTD2017 YTD2018 Pax Carried: 5.6m passengers Q4 - Total passengers flown of VJC (m pax.) 2018 and 23.1m passengers 2018, increase 33.5% vs Q Q YTD2017 YTD2018 3

5 Best Class In Operating Performance Quarter 4 Unit: Billion VND Airline Revenues Q achieve 8,401 bil VND, increase 48% vs. Q As result, Airline Profit before Tax (PBT) achieves 551 bil VND, increase 420% vs. Q4.2017, resulted from significantly increasing in financial income (due to evaluation of Fx. for Maintenance deposit at Y2018 as well as interest income increased). Consolidated Revenues Q achieve 18,453 bil VND, slightly decrease 6% vs. Q4.2017, due to one Aircraft transferred to Hence, Consolidated PBT Q achieves 1,961 bil VND, increase 11% vs. Q Airline Revenues 10,000 8,000 6,000 4,000 2,000 0 Consolidated Revenues 20,000 15,000 10,000 5, ,401 5,675 Q Q ,750 18,453 Q Q Airline Profit before Tax Consolidated Profit before Tax 6,000 4,000 2, Q Q ,766 1,961 Q Q

6 Best Class In Operating Performance - YTD Unit: Billion VND Airline Revenues 2018 achieve 33,815 bil VND, increase 49% vs As result, Airline PBT achieve 3,019 bil VND, increased 48% vs Consolidated Revenues 2018 achieve 52,388 bil VND, increase 24% vs As result, Consolidated PBT achieves bil VND, increase 10% vs Airline Revenues 40,000 30,000 20,000 10, ,815 22,644 YTD 2017 YTD 2018 Consolidated Revenues 60,000 40,000 20, ,388 42,303 YTD 2017 YTD 2018 Airline Profit before Tax 4,000 3,000 2,000 1,000-10,000 8,000 6,000 4,000 2,000-3,019 2,045 YTD 2017 YTD 2018 Consolidated Profit before Tax 5,302 5,829 YTD 2017 YTD

7 Significant ancillary revenue upside 2018 Ancillary revenue per pax is achieved 17.91, increased 22.2% vs Ancillary revenue per pax USD/pax Ancillary revenue per pax USD/pax % Total Ancillary revenue of Total Operation Revenue is 26.8% in Q Q YTD 2017 YTD 2018 Ancillary revenue % of Total Operation Revenue 29% 27% 25% 23% 21% 25.1% 26.8% 19% YTD 2017 YTD

8 Excellent Financial Performance : RASK, CASK Revenue per ASK (RASK) 2018 achieves 4.47 US cent, increases 3.7% vs Cost per ASK (CASK) 2018 achieves 4.00 US cent, increases 5.3% vs due to increasing significantly in jet fuel price. CASK ex-fuel 2018 is 2.20 US cent was slightly decreased vs As result, RASK CASK decreased from 0.51 to 0.47 US cents. This performance was excellent in compared with others in Airline Industry YTD 2017 YTD 2018 RASK YTD 2017 YTD 2018 CASK and CASK ex-fuel YTD 2017 YTD 2018 RASK - CASK 7

9 Operating Performance cont. Đơn vị: tỷ đồng Total assets 2018 achieve 39,223 bil. VND, increase 24% vs Total Asset 50,000 Total Equity 2018 achieve 13,925 bil. VND, increase 31.4% vs due to strong 40,000 30,000 31,658 39,222 Retained Earnings. 20,000 Cash and Cash equivalent 2018 achieve 10,000 7,165 bil VND increase 5% vs due to strong cash flow from sales. 0 YTD2017 YTD2018 Long term Borrowings to Equity ratio Equity decreased from 0.05 to ,000 Cash and Cash equivalent 16,000 13,925 10,000 12,000 10,594 6,862 7,165 8,000 5,000 4,000 0 YTD2017 YTD YTD2017 YTD2018 8

10 Cost, cost & cost! A strong focus on cost 9

11 Vietjet Air Airasia group Ryanair Cebu Pacific Spirit Indigo Norwegian Air Jetstar Allegiant SpiceJet Gol Linhas Southwest Nok Best In Class Cost Structure With Room For Improvement RASK CASK - ex fuel CASK Lowest CASK-Ex fuel. There is still headroom for cost structure improvement to further decrease both CASK & CASK ex-fuel Source: Bloomberg, Company Financial Statement Vietjet s results are based on Q Financial Statement. Other peers results are based on full year 2017 number. 10

12 Comprehensive fuel saving program Applying advanced technology and environment friendly solution in daily operation is one of the top priorities of Vietjet. By analyzing both operational and maintenance aspects, Safran s SFCO2 service develops procedures and recommendations to address airlines need for greater fuel efficiency which can reduce Vietjet fuel consumption up to 5% In 2018, the SFCO2 program saved 3.6 million kg of fuel. 11

13 Prominent Brand recognized as Best Ultra Low-Cost Airline has a 96% brand awareness in Vietnam with superior customer loyalty A Prominent digital media presence enhancing awareness B Strong Brand Representation across various categories (2) Strong on-line presence across e-commerce platforms and popular social media outlets Powerful omni-channel platform Named as one of the world s Top 3 fastest growing airline brands on Facebook by Socialbakers in August 2015, together with Qatar Airways and Turkish Airlines Top 3 airlines globally in terms of Facebook s post engagement rate (the other 2 being Eva Air and Japan Airlines) ~3.1m users on Facebook (1H2018) 2.9m (1H2018) website visitors 7.8m views on YouTube (1H2018) Inaugural winner of the Airlineratings.com Best Ultra Low-Cost Airline (2018) Top 100 Best places to work in Vietnam ( ) Best Asian low Cost Carrier (TTG Travel Awards in 2015) Top 40 most valuable Vietnamese brands (2018) by Forbe Top 10 reputated development company in Vietnam (2018) Top 50 listing company in Vietnam (2018) C Highly innovative marketing campaigns D Blue-chip partners and co-branding Focus on communicating directly with potential customers and emphasizing its low fares Enhanced brand awareness through sponsorship of key local campaigns Strategic partnerships with blue-chip, multinational enterprises globally Co-branding with various brands to enhance awareness, boosting ancillary revenue significantly through advertising Strategic partners Co-branding Sponsor of the 2015 Southeast Asian Games 12

14 Products - Services Reasonable and economical price with varied ticket types for choosing. Added services were offered, such as check-in priority, boarding priority, hot meals, pre-ordered beverages, and much more, were made available. 12pm, It s time to Vietjet promotion campaign offered millions of tickets from VND0 to bring flying opportunities for domestic and foreign passengers Travel insurance products to minimize travel risks were adjusted and sold to passengers via Our Skyshop continued to improve its services. Apart from hot meals and typical Vietjet souvenirs, many seasonal products were purchased onboard by passengers, for example, summertime products, wintertime products, Tet holiday products, and more. Duty-free products proved popular on Vietjet s international flights; a wide-range of cosmetics, perfumes, alcohols, cigarettes, and more, were sold at reasonable prices 13

15 FLEET EXPANSION Young, modern and Fuel Efficient Fleet A320 A Max A A Max Total

16 Passenger capacity growth over 40% each year Total Passengers ( 000 pax) 43,000 29,000 34,000 36,000 39,000 23, ,

17 Flight network extension The number of Routes: 94 routes (includes: 38 domestic routes and 56 international routes 16

18 Typical events of 2018 Launched Vietjet's first ever flight connecting Vietnam and Japan linking Hanoi with Osaka (Japan) in November 8 and the route Ho Chi Minh City - Osaka (Japan) in December 14. Signed the contract for 50 additional Airbus aircraft and MOU s service for long-term engine support. Announced new route linking Phu Quoc with Seoul (South Korea) Opened ticketing for new route Ho Chi Minh City - Van Don (Quang Ninh) on December 14. IATA awarded the second IOSA Certificate to Vietjet 17

19 Typical events of 2018 President & CEO Vietjet attended and gave an inspirational speech at World Economic Forum on ASEAN Vietjet President & CEO Nguyen Thi Phuong Thao was the only female entrepreneur who represent for Vietnam to attend Forbes Global CEO Conference, she also was listed as one of Forbes' Top 100 most powerful women of the world for three consecutive years. President & CEO Nguyen Thi Phuong Thao was named among 50 who defined 2018 by Bloomberg. At the ASEAN Business Awards 2018, President & CEO of Vietjet was honored as the best business woman in both of Vietnam and the ASEAN region. 18

20 Typical events of 2018 Vietjet Academy Vietjet launching Aviation Academy in cooperation with Airbus, which been installing equipment to be in operation in the next quarter, ensuring a stable training, reducing time and cost of regular pilot training. 19

21 Typical events Attended the 24th ASEAN Transportation Ministers Meeting Celebrated 5 years anniversary of first flight to Quy Nhon (Binh Dinh) Launched the biggest program Love connection Love is real touch, with hundreds of free tickets and attractive activities until 27/2/2019. Joined Kizuna Ekiden Run 2018 to raise the awareness for Traffic Safety Vietjet and the Central Ho Chi Minh Communist Youth Union, the National Volunteer Center organized a series of special events celebrating International Volunteer Day 2018 Joined 2018 Busan Hanatour International Travel Show 20

22 Awards Being awarded "Best Ultra Low Cost Airline 2019" for two consecutive years Honored as Pioneering Airline at The Guide Awards 2018 Being honored with Asia's Best Flight Attendant Wardrobe at NOW Travel Asia Magazine awards ceremony in Chengdu City (China) Honored as The best customers choice airline award at award ceremony of Cool Product Awards

23 Awards Ranked among the world's 50 best airlines (in the 22nd) by Airfinance Journal, one of the leading magazines in the aviation finance sector. 22

24 Awards Won the Top Airlines by Absolute Passenger Growth in Southeast Asia at Changi Airline Awards 2018 Top 10 Sustainable Development Businesses as recognized by Vietnam Economic Times Editorial Board and readers Top 100 Best Places to Work in Vietnam voted by Anphabe and Nielsen Ranked as the safest and highest ranking product in the world with 7-stars by AirlineRatings.com 23

25 Definitions And Abbreviations Term ASK CASK CASK ex-fuel RASK EBITDA EBITDAR Load Factor LCC OTP RPK Capacity Aircraft Utilization Description Available Seat Kilometer Total Cost (excluding cost of aircraft sold) per Available Seat Kilometer. Total Cost (excluding cost of aircraft sold, fuel) per Available Seat Kilometer. Total Revenue (excluding Revenue from sale aircraft) per Available Seat Kilometer. Earning before Interest, Tax, Depreciation and Amortization. Earning before Interest, Tax, Depreciation and Amortization, and Rent. Passenger Carried / Capacity. Low Cost Carrier On Time Performance. Revenue Passenger Kilometer. Available seat Average numbers of hours during each 24-hour period that an aircraft is actually in flight 24

26 THANK YOU 25