Institutional presentation. February, 2016

Transcription

1 Institutional presentation February, 2016

2 Company and scenario highlights

3 GOL at a glance - Largest low cost airline in LatAm Standardized fleet of 142 Boeing and 800 NG aircraft Shareholder Structure 73 destination of which 17 international, in the South America, Caribbean and US 40 million passengers transported per year Leading position at Brazil s main airports with high on-time performance Free Float 27.6% Treasury Stock0.5% AF-KLM1.2% Delta Airlines 9.5% Controlling Shareholders 61.3% 900 flights per day +10 million members in Smiles (Loyalty program) Extensive cargo operations serving more than 3,500 cities in Brazil and 15 abroad Comprehensive Global Network serving ~319 destinations in over 58 countries serving ~316 destinations in over 115 countries R$10 billion in revenues in

4 GOL at a glance - Largest low cost airline in LatAm Improved customer service along the journey... as a key contributor for achieving leadership in PAX Ease of search and purchase New visual identity and "Conte Comigo" Domestic PAX (MM) Express luggage Fast Travel Inflight experience Customer survey (SMS) Wi-fi on Board (1 st half of 2016) Geo localization Remote Check-in

5 Focus on strong position in Brazil s highest traffic airports Strong market position in brazil s key airports Gol s core airports represent approximately 65% of total domestic passenger traffic Brasilia (Brasília) 27% 39% 34% Total Brazil mkt share 36.8% 36.9% Confins (Belo Horizonte) 34% 48% 18% Resilience in business segment sales 9M14 Tam 31.8% Others 36.9% Gol 31.3% 9M15 Tam 32.0% Gol 32.4% Others 35.6% 30% 39% 31% Guarulhos (São Paulo) 33% 39% 33% 28% Curitiba (Curitiba) 43% 32% 25% Porto Alegre (Porto Alegre) % 44% 44% % 24% 40% Santos Dumont (Rio de Janeiro) Galeão (Rio de Janeiro) 27% 37% 36% Others Source: Abracorp Attractive services for business passengers Business passengers are less sensitive to fares, leading to premium yields Time optimization in the boarding process with Fast Travel Leader in on time flights in the domestic market in 2015 Possibility to anticipate or cancel boarding through our website, electronic kiosks or smartphones Launch of the new website, simplifying and speeding up the purchase process 5

6 Attractive industry fundamentals and underpenetrated market for sustainable growth Brazil is the #3 global aviation market Rank Country Passengers (MM) 1. U.S China Brazil India 60 Despite relative under penetration Flights per capita, USA has over 4.7x the number of flights per capita compared to Brazil Japan 55 With favorable growth potential Domestic and international passengers % (+69MM Pax) % (+106MM Pax) Other Lines Gol Market Driven by the increased popularity of air travel Brazil: % of total passengers (domestic travel > 75km) 28% 98MM Pax 72% 63% 141MM Pax Air Bus 37% Source: ABEAR, companies reports and ANAC. 6

7 The GOL effect in the airline industry tickets issued by GOL passengers flew for the first time with GOL

8 Goals & KPIs GOL Initiatives Market GOL s Flight Plan Turn-Around Back on Track Altitude 2015 Consolidation of players Rationalization of strategies Capacity reduction Solid operational improvement Improved pricing environment Operational improvement Neutral operating cash flow Rational supply Webjet Integration Supply reduction in the domestic market of 5.4% CASK ex-fuel growth of only 4.3% (despite BRL depreciation of 17%) Operational restructuring and right-sizing Reduction of operating costs by R$319 million Revenue increase of R$853 million Strengthening of the balance sheet: de-leveraging and total cash of R$3.0 billion with improvement in the operational result and SMILES IPO Leadership in on time flights and focus on business customers Consolidation of Strategy and Capacity discipline Margin expansion by revenue growth Cost Discipline Product enhancement and increase in USD revenues GOL in the World Cup RASK Growth Capacity decrease in the domestic market International expansion Increase in USD revenues Cost discipline New load factor level, in line with the Industry s Continuous product and service enhancement FY12 EBIT Margin: -11.1% FY13 EBIT Margin: 3.0% FY14 EBIT Margin: 5.0% FY15 EBIT Margin: -2% to 0 FY12 EBITDAR Margin: 3.2% FY13 EBITDAR Margin: 17.0% FY14 EBITDAR Margin: 18.0% FY12 Net Debt/EBITDAR: 14.0x FY13 Net Debt/EBITDAR: 1.7x FY14 Net Debt/LTM EBITDAR: 2.0x 8

9 Supply position in recent years GOL reduced its capacity higher than any other company in the domestic market recently GOL s capacity development -7 billions of ASK A decrease of 14% Competitors and industry supply development -5 billions of ASK A decrease of 10% +6 billions of ASK An increase of 193% billions of ASK An increase of 54% +2 billions of ASK An increase of 2% Competitor 1 Competitor Competitor 3 Industry 9 ASK in billions ; Source: ANAC.

10 Current scenario will remain challenging Recent Macroeconomic Deterioration BRLUSD EoP Jet fuel prices R$/liter GDP % 3,97 2,04 2,34 2,66 3,21 3,10 +28% 2,27 2,39 2,50 1,96 2,21 2,13 1,8% 2,7% 0,1% (0,9)% (1,2)% (2,8)% Q15 2Q15 3Q Q15 2Q15 3Q15 (3,7)% Q15 2Q15 3Q

11 3Q15 Highlights

12 Current economic scenario has a direct impact on the aviation industry Macro Environment Devaluation of the Real by 62.1% at the end of the period and 55.5% on average for the quarter yearon-year Lower demand from corporate customers Signs of seat supply rationality (ASK) in the domestic market Jet fuel in Real at lowest level with a 13.1% decrease in the quarter GOL highlights With R$3.1 billion in cash, GOL maintain its position among the most liquid airlines, which represents 31.2% of net revenue in the last twelve months Ancillary revenue expansion of 12.6%, reaching 12.3% of total revenue Leader in the number of passengers transported in Brazil Maintenance of our leadership in sales for the corporate sector Leader in on-time performance in Brazil up to October 12

13 Result impacted by massive increased on costs as a result of currency devaluation 3Q15 Results Net Revenue EBIT EBITDAR +1.1% % 3Q14 3Q15 3Q14 3Q15 3Q14 3Q15 9M15 Results -2.9% % 9M14 9M15 9M14 9M15 9M14 9M15 13 In R$ million.

14 GOL's load factor continues to grow above the industry average Supply Increase in demand and load factor Domestic ASK* +2.6% Domestic RPK* +3.6% Domestic load factor (%) +0.8 p.p. +1.6% +3.8% +1.7 p.p. 9M14 9M15 9M14 9M15 9M14 9M15 9M14 9M15 9M14 9M15 Industry Industry 9M14 9M15 Industry *Values in millions of seat-kilometers; Source: ANAC. 14

15 Our response to the industry s new economic scenario 1 Capacity: reduction in the domestic market between 5 to 7% in 4Q15 2 Network: network adequacy with frequency reduction and changes in destinations 3 4 Fleet: increased number of subleasing aircraft in 2016 and postponement of the delivery of new aircraft between 2016 and 2017 Costs and expenses optimization: review of contracts, new processes of crew and airports working schedule and optimization of the maintenance process 5 Employees: redesign of the structure and no replacement of natural turnaround 15

16 1 Capacity reduction between 5 to 7% in 4Q15 in billions of ASK 2.1% Adequacy due to lower supply during the Football World Cup in 2014 Adaptation to the macroeconomic reality From (5%) to (7%) 4.8% -0.6% -2.7% 16

17 2 Initiatives of the network readjustment Domestic market Congonhas Diversification of destinations; New routes and flights to the cities: Coastal: Salvador, Porto Seguro, Ilhéus and Florianópolis Other: Maringá, Londrina and Presidente Prudente New flights during the high season International market United States Miami and Orlando will be seasonally operated from February 19, 2016 Venezuela Feasibility study of the continuity of operations to Caracas that, at present, is maintained but with frequency reduced to once a week Rio de Janeiro Belo Horizonte, Brasília and Rio de Janeiro Campinas Navegantes Florianópolis Porto Seguro Natal, Fortaleza Salvador, Maceió Recife New destinations for 2016 Planning of new destinations, including Havana, Cuba Argentina New direct operations to Argentina s capital, departing from other cities in the Northeast 17

18 Cost reduction and efficiency initiatives Fleet 2016 and 2017 aircraft delivery schedule changed from 15 aircraft to 4 aircraft; Increased amount of subleasing aircraft in 2016 during the low season, with 12 in total compared to 7 in 2015 Cost and efficiency gains Review of contracts in the areas of maintenance, ramp services, hospitality and corporate in general, which cover 100% of the cost structure; New processes, tools and systems to improve crew and airport teams working schedule; Optimization of the aircraft maintenance process Employees Redesign of the organizational structure, eliminating executive layers (delayering); No replacement of natural turnaround 18

19 Continuous gains in efficiency and productivity Human Resources Operation Employees (in thousands) Flights (in thousands) Net Revenue/Employee (in R$ thousands) LTM Net Revenue/Flight (in R$) LTM 31.8% 36.1% 3Q12 3Q13 3Q14 3Q15 Employees (in thousands) RPK/Employee LTM 3Q12 3Q13 3Q14 3Q15 Liters of fuel (in billions) Liters consumed (thousands)/rpk LTM % -14.2% 3Q12 3Q13 3Q14 3Q15 3Q12 3Q13 3Q14 3Q15 19

20 3Q15 Financial Results

21 3Q15 Financial Highlights In R$ million 3Q15 3Q14 % Var. 9M15 9M14 % Var. Net Revenue 2, , % 7, ,336.4 (2.9%) Costs, expenses and Eq. Income (2,480.8) (2,309.7) 7.4% (7,214.4) (7,002.1) 3.0% EBIT (94.2%) (88.4) NM EBIT Margin 0.4% 6.2% (5.8 p.p) (1.2%) 4.6% (5.8 p.p) EBITDAR (18.4%) ,330.6 (29.6%) EBITDAR Margin 15.2% 18.8% (3.6 p.p) 13.2% 18.1% (4.9 p.p) Fx and monetary variation (1,440.6) (270.5) 432.6% (2,009.1) (162.6) 1,135.4% Interest on loans (226.5) (150.1) 50.9% (585.2) (426.1) 37.4% Other revenues and expenses (35.5) (14.3) 147.8% 41.7 (145.7) NM Income taxes (439.9) 37.8 NM (520.1) (86.2) 503.7% Net Result (2,133.6) (245.1) 770.4% (3,161.2) (486.3) 550.1% ASK (in millions of KM) 12,321 12, % 37,224 36, % Net YIELD (R$) (2.6%) (9.3%) Net PRASK (R$) (1.3%) (7.5%) Net RASK (R$) % (5.2%) CASK (R$) % % CASK ex-fuel (R$) % % End-of-period exchange rate % % Price/liter of fuel (Jet fuel in R$) (13.1%) (16.9%) 21

22 Yield impacted by the adverse scenario In Queda cents of de R$ (1.3%) PRASK p.p. LOAD FACTOR - % (2.6%) +11.2% YIELD 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 22

23 Management of CASK ex-fuel Exchange variation: R$1.12 or 52% of the increase % A A CASK Main Variations 3Q15 vs 3Q14 Salaries increase of 8.2% or R$33.2 million 7% in annual salary adjustment R$15.3 mi; variable crew compensation R$8.0 mi; employees incorporations R$1.2 mi. Salaries Aircraft lease Sales & Mkt B B C Aircraft lease increase of 29.9% or R$62.8 million renegotiation of leasing contracts at the end of 2014, although partially offset by the average depreciation of the Real by 55.5% against the Dollar. Servicing increase of 47.1% or R$85.3 million increase in tickets purchased that will be reversed in revenue - R$36.9 mi; IT services at local and international bases R$19.2 mi. Landing fees Servicing C D Maintenance increase of 10.2% or R$12.4 million Maintenance schedule of aircraft with lower number of engines, although partially offset by the average depreciation of the Real by 55.5% against the Dollar. Maintenance D&A Other D E E Others increase of 34.7% or R$44.4 million higher expenses with on-board sevices R$6.2 mi; lower recorded tax credit R$8.4 mi; civil and labor convictions R$10.9 mi. 3Q14 2Q15 3Q15 23 In cents of R$.

24 Comparison and exposure of expenses 3Q14 3Q15 54% 49% Expenses in Dollar 5% 110 5% Aircraft fuel 5% 176 8% 40% Aircraft lease % 145 6% 9% % 358 Salaries, wages and benefits Sales and Marketing Landing and take-off fees Aircraft and traffic servicing Maintenance materials and repairs Depreciation and Amortization Other expenses % 122 4% 6% % 7% 171 7% % % % 391 In R$ million. 24

25 CASK ex-fuel lower levels 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 3Q14 3Q14 4Q14 1Q15 2Q15 3Q Adjusted by the average length in USD cents. 25

26 Leverage is impacted by exchange rates EBITDAR (R$ mi) LTM Debt (R$ mi) Debt (US$mi) BRL/USD Final Period 4Q12 2Q13 4Q13 2Q14 4Q14 2Q15 3Q15 Net Leverage 31.44x 11.28x 4.87x 4.63x 5.31x 7.27x 9.16x Cash R$ mi 1, , , , , , ,073.3 % Revenue in USD LTM 7.0% 8.0% 9.1% 10.7% 11.9% 10.9% 13.9% 26

27 Amortization schedule Breakdown of debts in BRL 3Q15 BRL 283 mi USD 154 mi 20% 80% Cash 4Q15 1Q16 2Q16 3Q16 4Q Total cash BRL USD in BRL *In R$ million; **Exchange rate of (Ptax disclosed on 09/30/2015) for amounts in US$. 27

28 Tiger WestJet Spirit Air Asia* GOL IAG Allegiant Copa* American Alaska JetBlue Qantas* Southwest Avianca* Azul* United LATAM* AF / KLM Lufthansa AeroMéxico Delta Maintaining a strong cash position in cash maintains GOL s position as being among the most liquid airlines *2Q15. 28

29 2015 Guidance GOL reviews its due to and the Brazilian economy s 2015 Financial guidance From To 9M15 Annual change in domestic supply (ASK) 0-1% 0-1% +1.6% Average exchange rate (R$/US$) Jet fuel price (QAV) Operating margin (EBIT) 2% 5% -2% 0-1.2% 29

30 Final message: Focus on the recovery of the operating results and liquidity maintenance Capacity reduction Expansion of ancillary revenues Cost and efficiency gains Network enhancement for maximum profitability Fleet reduction Liquidity position maintenance 30

31 Investor Relations Investor Relations Segurança Inteligência Servir Lowest-Cost