Key Highlights Q2/2018 Business result. July 2018

Transcription

1 Key Highlights Q2/2018 Business result July 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 m passengers in Q2 2018, an increase of 28.9% compared with Q (Total Passenger carried in Q was mil) Capacity in Q is 6.67m seat flown, increase 29.8 % compared with Q Vietjet operate 94 routes in Q including 38 Domestic routes and 56 International routes, compared with 37 Domestic routes and 36 International routes in Q Total Operating Revenue in Q is 8,588.3 billion VND, increased 52.06% compared with Q Operating Profit in Q reached VND billion, 26.3% higher than that in Q with VND billion. Load Factor is maintained at high figure with nearly 87.1% in Q2 2018, slightly lower than 87.71% in Q Achieved the highest technical reliability of 99.64% among top Airlines in Asia Pacific region. Foreign Exchange rate as at 30/06/2018 is 22,650 VND/USD, compared with 22,431 VND/USD in 30/06/2017. Fuel price Jet A1 (MOPS) in June 2018 is USD/barrel, 7.8% increased compared with that in June

4 Operating Statistics Modern and young fleet with average age of 2.95 years comprising 24 TOTAL ROUTES OPERATED Airbus A320s and 30 A321s and 1 A321NEO as of 30/06/2018. Up to 30/06/2018, VJC has total 219 aircraft on order with Airbus and Boeing in which the company received 43 aircraft. Pax Carried: m passengers in Q Q2-17 Q2-18 Operated an extensive network of 38 domestic routes and 56 international routes, services up to 30/06/2018. Passengers & Aircraft growth Vietjet operated a total of 31,114 flights in Q Passengers (m) Total aircraft Aircraft utilization 14.4 block hours per aircraft a day Safety indicators of ground operations and Flight operations are also highest in the region On-time performance ratio of 83.4% in Q Q2-17 Q

5 Passenger Growth To More Than 40% Per Annum 50,000 Total Passengers ( 000 pax) 45,000 43,000 40,000 35,000 30,000 34,000 36,000 39,000 30,000 25,000 24,100 20,000 15,000 14,051 17,110 10,000 5,000 3,156 5,562 9,

6 Flight network extension The number of Routes: 94 routes (includes: 38 domestic routes and 56 international routes 5

7 Vietjet opened direct flights connecting Hanoi & Ho Chi Minh City to Osaka (Japan) 6 6

8 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 7

9 Products - Services At all airport, areas serving Vietjet's inbound and outbound flights are synchronously designed, equipped with modern equipment and prominent branding signs to facilitate customers. Operated international flights at new terminal T2 in Cam Ranh and transfered flight operation to Terminal T1 - Yangon International Airport (Myanmar) with modern facilities and many utility services for passengers. Cam Ranh International Airport Yangon International Airport (Myanmar) 8

10 Typical events of the Q Organized Annual General Shareholders Meeting 2018 successfully. Strengthened cooperation at the ACMECS 2018 Economic Cooperation Strategy Summit and 2018 CLMV Summit Attended the 74 th International Air Transport Association (IATA) Conference Opened direct flights from Hanoi, Ho Chi Minh City to Osaka (Japan) Boeing and Vietjet ink deal for 100 new aircraft Vietjet and Vietnam Youth Union s Central Committee, National Volunteer Centre launched Let s clean up the ocean

11 Vietjet Academy In the second quarter, Vietjet has finished the construction of 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

12 Awards Listed at the top companies of Nhip cau Dau tu Magazine Vietnam s 50 Best performing Companies 2017, being on the Billion-Dollar Club of companies which have market capitalization of over USD1 billion. Being honored as one of the Vietnam's 50 best listed companies in 2018 by Forbes Top Airlines by Absolute Passenger Growth in Southeast Asia Award Received Vietnam s excellent brand award being voted by Vietnam Economic Times 11

13 Fleet Expansion Vietjet s aircraft fleet by 30 th June, 2018 stood at 55 aircraft including 24 Airbus A320s and 31 Airbus A321s with the average age of 2.95 years. The fleet of aircraft has seat configuration from 180 to seats and the designs are in tune with the low cost airline business model. Vietjet made an order of 171 Airbus A320/321 aircraft and an order of another MAX 200 aircraft with Boeing. The orders with Airbus and Boeing will be completed at the end of

14 Lively fleet of Vietjet 13

15 Young, modern and Fuel Efficient Fleet AC Type Vietjet Air Asia (AK) Indigo Jetstar (JQ) easyjet (U2) A319 ( 156 seats) 91 A A321 ( 230 seats) 31 8 Ryanair B737 NG 436 Avg. Age (y) Total A321 deliver cost & revenue benefits 14

16 Cost, cost & cost! A strong focus on cost 15

17 FLEET EXPANSION Young, modern and Fuel Efficient Fleet A320 A Max8 1H A A Max Total

18 Daegu - the fourth largest city of South Korea is the new destination of Vietjet in this beautiful country 17

19 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% By 1H 2018, the SFCO2 program saved 1,197,920 kg of fuel. 18

20 Safety and Quality activities of the 1Q2018 Continue working with Airbus Nablue to enhance Monitoring. Flight Data Working with Airbus to study more about Skywise digital aviation data platform which aims to become the single platform of reference used by all major aviation players to improve operational performance and business results. 19

21 Best In Class Cost Structure With Room For Improvement Vietjet Air Airasia group Ryanair Cebu Pacific Spirit Indigo Norwegian Air Jetstar Allegiant SpiceJet Gol Linhas Southwest Nok 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. 20

22 The latest orders to purchase more 100 Boeing and 50 Airbus aircraft will help Vietjet 21 developing our airline alliances across the Asia Pacific region and worldwide

23 Best Class In Operating Performance (Seperated Fs) Total Revenue: increased 52.1% from 5,648 VND billion in Q to 8,588 VND billion in Q Operating Profit grew up 26.3% to VND billion in Q compared to same period in Profit before tax increased 25.5% to 837 VND billion in Q2 2018, compared to 667 VND billion in Q TOTAL REVENUE (VND bil) 8,588 5,648 Q2-17 Q2-18 PROFIT BEFORE TAX (VND bil) OPERATING PROFIT (VND bil) Q2-17 Q2-18 Cash and Cash Equivalent( VND bil/%) Cash and Cash Equivalent increased 104.3% to 5,388 VND billion in Q2 2018, compared to 2,637 VND billion in Q Q2-17 Q2-18 Q2-17 Q

24 Solid Growth In Ancillary Ancillary revenue per pax: increased 6.3% from 14.2 USD/pax in Q2/2017 to 15.1 USD/pax in Q2/2018. Total Ancillary revenue as % of Total Operation Revenue slightly decreased to 22% in Q2/2018 compare to Q2/2017 Ancillary revenue per pax USD/pax Q2-17 Q2-18 Ancillary revenue % of Total Operation Revenue 25.3% 22.0% Q Q

25 Excellent Financial Performance (Consolidated Fs) Revenue per ASK increased 11% YoY due to strong growth from passenger carried (up 28.9%) and high load factor at 87.1%. RASK (US Cents) CASK (US Cents) Cost per ASK impacted by higher fuel price (up 6.6%) Q2-17 Q2-18 Q2-17 Q2-18 Cost per ASK (excluded fuel) up 0.12 US.cent from 2.14 to CASK EX-FUEL (US Cents) RASK - CASK (US Cents) RASK CASK: up 39.6% YoY Q2-17 Q2-18 Q2-17 Q

26 Excellent Financial Performance (Consolidated Fs) TOTAL ASSETS (VND Bil) TOTAL EQUITY (VND bil) Total assets: increased 40% from 24,945 VNDbil in Q2-17 to 34,891 VNDbil in Q2-18. Total Equity increased 48.7% to 11,842 VND bil in Q2-18 due to strong Retained Earnings from 1H Cash and Cash equivalent increased 103.6% to 5,395 VND bil in Q2-18 due to strong cash flow from sales in 1H ,891 24,945 Q2-17 Q2-18 CASH & CASH EQUIVALENT (VND bil) 11,842 7,964 Q2-17 Q2-18 Net Debt/ Equity Net Debt/ Equity decreased from 0.6x to 0.2x in Q2-18 due to substantial growth in equity and strong cash balance showing the better financial position of the Company. 6,000 5,000 4,000 3,000 2,000 1,000-5,395 2,650 Q2-17 Q x 0.6x 0.5x 0.4x 0.3x 0.2x 0.1x 0.0x 0.6x 0.2x Q Q Net Debt / Equity 25

27 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 26

28 THANK YOU 27