Air Berlin PLC AGM 18 June 2014 London

Transcription

1 Air Berlin PLC AGM 18 June 2014 London

2 Executive summary (1) Key Highlights : a challenging year for airberlin Operational loss of million euros Group revenue down in line with capacity cuts Turbine has delivered planned contribution However not sufficient to counter difficult market conditions and headwinds Program continues, full impact to become effective 2014 Restructuring program is progressing Air Berlin PLC AGM

3 Executive summary (1 cont d) airberlin today No. 1 in Berlin, Dusseldorf and Palma de Mallorca < No. 2 in core market Germany/Austria/Switzerland (DACH) Fourth time in a row over 30 million guests Full-service network carrier with focus on business & leisure travelers Global airline partnerships oneworld member Etihad equity alliance Air Berlin PLC l 28. April

4 Executive summary (2) Key Highlights Q Turbine shows further improvement Turbine turnaround program clearly reduced costs Costs per available seat kilometer (CASK) reduced by more than 8% Earnings (EBIT) slightly improved, turnover slightly lower due to the Easter business falling in the second quarter Productivity increase Wider flight selection and a smaller fleet increased productivity Partnerships continue to show very favorable developments Air Berlin PLC AGM

5 Executive summary (3) Key Highlights Q Recapitalisation of Air Berlin PLC and injection of substantial quasi-equity and liquidity to form the basis for a successful turnaround EUR 300m Perpetual PIK Convertible Bond in 3 tranches of EUR 100m in Q2, Q3 and Q Extension of the existing shareholder loan from Etihad Airways due in 2016 until 2021 EUR 252m Senior Bond and exchange offer to 2014 and 2015 maturities Organisational change and management capacity enhancement Addition of CRO role on management board level and engagement with top-tier consulting firms Introduction of new revenue management system for further efficiency improvements Air Berlin PLC l AGM

6 Recapitalisation of the group In order to achieve an increase in equity and liquidity Air Berlin PLC finalized two transactions: 1 Cumulative perpetual subordinated loan subscribed by Etihad Airways Size: EUR 300m, three tranches in Q2, Q3, Q4 Status: subordinated, IFRS equity treatment Conversion: 3 months VWAP -10% prior to issue Maturity: Perpetual Etihad Airways CCPS EUR 300m Air Berlin PLC Corporate Bond EUR 252m Capital Market 2 New Corporate Bond Size: EUR 252m (EUR 170m; CHF 100m) Maturity: 2019 Coupon: - EUR tranche: 6.75% p.a. - CHF tranche: 5.625% p.a. Standard covenants Inflow amounting to a total of EUR 552m EUR 162,706m and CHF 92,725m of the Corporate Bond will be cash inflow, EUR 7,294m and CHF 7,275m will be a conversion of the corporate bonds with a maturity 2014 and 2015 into the new issued corporate bond. Shareholder loan: Size: EUR 183m / USD 255m (USD 134m drawn) Maturity: extended Air Berlin PLC l AGM

7 airberlin well positioned in core market Europe Los Angeles Hawaii Chicago New York Fort Myers Miami Curacao Oslo Helsinki Moscow London Berlin Paris Madrid Rome Abu Dhabi Irkutsk Phuket Beijing Perth Sydney 171 destinations worldwide (incl. codeshare partners: more than 300 destinations) Leveraging global connectivity through Etihad Airways and oneworld Destinations Codeshare destinations Air Berlin PLC l AGM

8 Strategic partnership with Etihad Airways continues to grow Air Berlin PLC l AGM 2014 Codeshare Performance Etihad Airways Etihad Airways is codeshare partner No.1 for airberlin Portfolio of more than 100 codeshare routes Latest codeshare extension: India (Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Kochi) Korea (Seoul) Australia (Perth) New routes to Abu Dhabi from Stuttgart and Vienna will ensure further growth Codeshare Agreements implemented with Equity Alliance partners Air Seychelles, Air Serbia, Virgin Australia and Etihad Regional Common Guests Development 2013 April 2014 [ 000] Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

9 oneworld presents further opportunities for growth by providing airberlin with access to new destinations and additional passengers More than 1 million guests on joint partnership routes in 2013 Extended codeshare network with oneworld partners causes strong increase in booking intakes almost guests already in first quarter 2014 Alliance of service-orientated quality airlines with highest quality and safety standards News: Air Berlin PLC AGM 2014 Codeshare Performance oneworld New oneworld members: US Airways, TAM and Sri Lankan joined the alliance American Airlines: After the merger of US Airways with American Airlines airberlin has signed a comprehensive Codeshare Agreement with US Airways Common Guests Development 2013 April 2014 [ 000] Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

10 airberlin operational development 2012 vs Capacity & Guests [m] Load factor [%] ASK [bn] % % %p % 57.3 Capacity Guests Load ASK Yield incl. a/p tax rev. & aviation tax [ ] Revenue / ASK [ c.] Cost 1 excl. fuel / ASK [ c.] +0.7% +1.3% +5.2% Yield R/ASK C/ASK excl fuel (1) Cost on EBIT level excluding other operating result Air Berlin PLC l AGM

11 Cost per ASK development 2012 vs Remarks Cost 1 per ASK incl. fuel [EUR ct] Cost/ASK including fuel increased by 3.9% triggered by three major drivers: Stronger USD in 2013 than in 2012 which led to an effect of appr. EUR 20- Fuel % m Turnaround charges and restructuring Airport charges costs Other operating expenses rose due to the investment in higher level distribution channels Leasing & depreciation Navigation Air transporation tax Personnel Other excl. OOR ) Cost on EBIT level excluding other operating result Air Berlin PLC l AGM

12 2014 financial performance vs Total revenue EBITDAR & EBIT Net result [in EURm] 4, , Revenue EBITDAR EBIT Net result Decrease in revenue in line with capacity development Drop in EBITDAR and EBIT driven by lower revenue and lower other operating result. Drop in net result follows EBIT development as financial result is broadly stable. Air Berlin PLC AGM

13 Q Air Berlin PLC l AGM

14 1 st quarter 2014 operational development vs. 1 st quarter 2013 Q Q [ m] Capacity & Guests [m] Load factor [%] ASK [bn] -3.8%p. +4.4% +3.9% % Capacity Guests Load factor ASK Yield incl. a/p tax rev. & aviation tax [ ] Revenue / ASK [ c.] Cost 1 excl. fuel / ASK [ c.] % % % 6.38 Yield R/ASK C/ASK excl. fuel (1) Cost on EBIT level excluding other operating result Air Berlin PLC l AGM

15 Cost/ASK development Turbine shows further success Remarks Cost 1 per ASK incl. fuel [EUR ct] -8.1% Aircraft costs and airport infrastructure costs were reduced due to productivity increase Fuel Renegotiating better terms and conditions for leasing contracts resulted in less airport infrastructure costs and leasing expenses Turbine shows further success on the cost side as operating expenses per ASK fell stronger by 8.1 per cent) Airport charges Air transportation tax Leasing & depreciation Navigation Personnel Other Q1/ Q1/ (1) Cost on EBIT level excluding other operating result Air Berlin PLC l AGM

16 1 st quarter 2014 financial performance vs. 1 st quarter 2013 Total revenue EBITDAR & EBIT Net result Q Q [ m] Revenue EBITDAR EBIT Net result Due to the Easter travel not starting until April, total sales for the first quarter decreased by 3.8%. Some of the revenue deviation was offset by better cost performances but still EBITDAR is below previous year quarter s result. EBIT performance is slightly better due to decreased cost of aircraft ownership. With financial result in line with expectations, net result further reduced by EUR 14m compared to the first quarter in 2013 due to lower (non-cash) tax credits. Air Berlin PLC l AGM

17 Looking ahead, airberlin has good opportunities despite strong external challenges External Challenges Our Opportunities Competition from LCCs Established European Airline Competition from Rail Strong brand, Service-Focus Airport Capacity and Operations Global Partnerships Regulatory Framework Good basis for restructuring Air Berlin PLC l AGM

18 Air Berlin PLC AGM 18 June 2014 London