Air Berlin PLC Frankfurt, 29 August 2012 DVFA Small Cap Conference

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1 Air Berlin PLC Frankfurt, 29 August 2012 DVFA Small Cap Conference

2 2012 is the transition year business transformation airberlin on its journey to sharpen its profile in the scheduled business Shape & Size efficiency program Topline Network & Fleet Costs Maintenance Etihad Airways partnership Oneworld membership New revenue management system and passenger service system Introduction of fare classes Organizational structure Guest experience Measures taken to improve profitability Initiatives with short term negative impacts in H Developing new hubs and investment of new routes Enhancing the long-haul product Lounge development Frequency reduction Route cancellation Investment in staff training Migration process in booking systems Temporary higher FTE needs 2

3 First improvements in H1/2012 full effects of transition come into force in is the transition year Selected improvements already established in R/ASK development Decrease C/ASK ex fuel Seat load factor increase Aircraft utilization Effects Transition process comes along with investments and costs at first hand First improvements can be seen in % % 5.47 Full positive impact of taken initiatives is projected for 2013ff. R/ASK [EUR ct.] +1.93%p C/ASK excl fuel [EUR ct] % SLF [%] a/c utilization 3

4 Despite all short-term impacts, positive effects are visible in H1/2012 strong increase in fuel price could be offset [EUR m] Revenue development Revenue increase of 2.7% despite 7.6% less capacity (1.7 m seats have been reduced) 1, , % Fuel development Initiatives did not only compensate for the negative effects from the transition but also the higher fuel price (EUR 63.7 m) % EBIT development Improved performance on certain cost line items helped to offset fuel price increase and achieve better EBIT (EUR 41.8 m) % H1/

With the continuous development of our partnership plus the effective usage of new systems airberlin is on the right track for the second half Update on partnerships Code-shares in

) Joint OEM 1) negotiations Joint sales calls to TMCs 2), agents and corporates Codeshares with seven oneworld partners successfully implemented (AA, AY, BA, IB, JAL, RJ, S7) Codeshare

5 With the continuous development of our partnership plus the effective usage of new systems airberlin is on the right track for the second half Update on partnerships Code-shares in place (except for bilaterally constrained markets) Abu Dhabi to Phuket flight revenue management by Etihad (70% of cap.) Joint OEM 1) negotiations Joint sales calls to TMCs 2), agents and corporates Codeshares with seven oneworld partners successfully implemented (AA, AY, BA, IB, JAL, RJ, S7) Codeshare pax volumes H1/2012 vs. H1/ % Joint marketing campaign in Germany Joint procurement of: +136% ULD 3) (7 year lease) Fuel at common stations 1) Original Equipment Manufacturer 2) Travel Management Companies 3) Unit Load Device Partner AB

6 Key highlights H Total revenue development Yield Seat load factor +8.4% +3.6% % % %p R/ASK [EUR ct.] Revenue/Pax [EUR] Revenue/RPK [EUR ct] Yield [EUR] SLF [%] Cost 1) per ASK incl. & excl. fuel Operational KPIs +5% +1.4% % % C/ASK incl fuel [EUR ct] C/ASK excl fuel [EUR ct] a/c utilization Fuel burn/100 ASK [ltr.] 1) Cost on EBIT level 6

7 Financial Performance [EUR m] H Revenue EBITDAR EBIT Net result Good revenue performance especially in Q1 delivered good H1 rolling increase despite capacity reduction Revenue increase and cost control helped to offset fuel price increase (EUR 70 m) and still achieve higher EBITDAR EBIT increase in line with EBITDAR development Higher non cash financial result increased net loss +2.7% 1, ,948.1 H1/ % % -2.9%

8 EBIT development: H to H incl. view Shape & Size [EUR m] Revenue Effects Cost Effects EBIT ACT 2011 Routes cxl Top Line Revenue Price Revenue Capacity Revenue SLF Costs Network MRO Fuel Other Expenses EBIT ACT 2012 Shape & Size = EUR m over four clusters Revenue Price = +9.9% Capacity = k seats (-6,7%) whilst pax reduced by 725k (-4.4%); seat load factor +1.9pP Fuel = Fuel Price/metric tonne = $1,077 (2011: $916 -> +$161; +17,6%); USD/EUR (+1.7%) 8

9 Cost of aircraft ownership H Fleet development [number of aircraft] Net cost of leases & depreciation [EUR m] % % Effective dollar rate [EUR/USD] % Q2/11 Q2/12 H1/11 H1/11 A320 family A330 family B737 family E190 Q400 9

10 Contribution to full year EBIT improvement more than EUR 100 m in the first half of 2012 [EUR m] H Shape & Size performance H1 H1 > 40.5 > Cost initiatives MRO 4 H1 6 Process improvement Yield & Rev. mgmt Profitability Improvement EUR 2 Network reduction & productivity H1 > 1.9 Alliances 3 > H1 H1 > 34.3 > 7.0 SHAPE & SIZE profitability improvement in > EUR 100 m 1 Enhanced yield development 2 Codeshare effects from partnership with Etihad Airways and oneworld 3 Aircraft sourcing and improvement of network productivity 4 Strategic procurement and reduction of maintenance cost 5 Several cost measures EBIT values without effects from cost avoidance 10

11 In the course of 2012, increasing impact on EBIT current improvement > EUR 230 m [EUR m] Share of Total 26% 30% >60 >70 >230 >50 >50 Q1 Q2 Q3 Q Implementation Realization 11

12 Financial result H vs. H [EUR m] Breakdown of financial result Income Expenses Currency & derivatives effects -14.9% % % H1/ H1/ H1/ Due to USD rate development 12

13 Balance sheet structure [EUR m] B/S as of Dec 31, 2011 B/S as of Jun 30, ,264 2,528 Fixed assets 66% 11% Equity Fixed assets 55% 4% Equity Other current assets 24% 89% Debt Other current assets 33% 96% Debt Liquid assets 10% Liquid assets 12% Based on changes in market value from end of June to end of July additional EUR 60 m were accounted for in the adjusted view on equity EUR 320 m Balance negatively impacted by changes in market valuation Target is to achieve a better equity ratio at the end of the year 2012 Net debt target is around EUR 500 m 13

14 Strong earning improvement envisaged Operational performance Capacity Moderate increase in long haul business Capacity utilization and income Increasing load factor through network reduction, improved sales platform and partnerships Result Revenue Growth in revenue through yield and SLF growth expected Expenses Cost per ASK excl. fuel will be kept stable; structural cost increases will be offset through Shape & Size Result Improvement in profitability Balance sheet Target 2012 A L Balance sheet Equity and liquidity stabilized through Etihad Airways investment Equity ratio better than previous year at year end 2012 Deleveraging is the key objective for 2012; initiatives are on the way Net debt target around EUR 500 m by year end 2012 Strong earnings improvement targeted for

Air Berlin PLC Munich, 25. September 2012 Baader Investment Conference

Air Berlin PLC Munich, 25. September 2012 Baader Investment Conference Management summary Successful operating development in the first half 2012 Shape & Size has accounted to the operational improvement