Corporate Presentation. December 2015

Transcription

1 Corporate Presentation December 2015

2 Quality & Award winning airline Weathering through the crisis and positioning for strong Full Service Carrier Focus on quality, efficiency, productivity 10.1m passengers in 2014 Young fleet of 58 Aircraft 44 Airbus A320 family 14 Bombardier Star alliance member Award winning airline 6x skytrax best regional award growth 12,000 10,000 8,000 6,000 4,000 2,000 0 Traffic in RPKs (m) Launched operations local acquisitions 2002 First international routes launched Airbus order 2008 Largest Greek airline 2010 Star alliance member 2011 Becoming single type jet operator 2013 Acquisition of Olympic Air Airbus order 2

3 Using synergies to expand Passengers (m) Fleet (A/C) x 30 Turboprop Airbus e Domestic International ASKs (m) +60% e Network Destinations ,139 10,732 12,194 14, x e e 3

4 Growing from 3 to 9 A/C bases 2015 :134 destinations 100 international 34 domestic in Greece and Cyprus THESSALONIKI 2009 : 3 A/C bases CORFU ATHENS THESSALONIKI KALAMATA KOS ATHENS CHANIA HERAKLION RHODES LARNACA 2015 : 9 A/C bases HERAKLION 4

5 Strengthening Athens hub *Number of routes from Athens International routes International routes total routes total routes

6 Tourist arrivals by air Attractive Athens potential => +50% growth in tourist arrivals Athens Tourist arrivals by air e Rest of Greece e e Source: SETE, Aegean Airlines estimates 6

7 Driving total traffic growth despite 27% 28% GDP decline International Athens Total passengers (m) YTD trends International rest of GR airports E +22% Domestic E Domestic E +18% International Athens +1% International rest of GR Domestic International Athens International rest of GR airports Total E 7 Source: AEGEAN estimates, YTD is Jan-Oct (AIA, HCAA source)

8 Ability to adjust and transform successfully Gradual Growth Building presence / brand /product Heavy reliance on domestic network & local demand Mix of fleet No alliances Successful restructuring Extrovert/ incoming leisure focus Flexibility/outsourcing/ homogeneous jet fleet Quality/customer excellence focus remains Star Alliance entry Strong Growth Seek scale economies Acquisition of Olympic Network expansion / Build network flows, connectivity Defend market position and capture market opportunity Gradual growth of LCC State owned Olympic GDP loss / Unemployment / Traffic demand sharply down Privatization of traditional competitor Rapid growth of LCC Strong rebound in Athens traffic Competition intensifies Domestic network new competitor 8

9 Last 10 years at a glance Revenue Pre tax profit / margin ASKs 261 m m / % 2% 6% 9% 10% 7% 6% 12% 8% 10% 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 In m 3,692 4,023 6,216 8,308 9,139 12,194 10, % 5% 2% In m Passenger Traffic Unit costs / stage length ,200 1, % 80% 70% 60% 50% 40% 62% Load Factor 71% 69% 68% 74% 78%78% 9 International Pax Domestic Pax FY04-FY13: Aegean standalone / Group FY:13 & FY:14 include full consolidation of Olympic Air In cents CASK (excl fuel) Average stage length km

10 Revenue Breakdown shift to international PSO Revenue Domestic Revenue International Revenue 56% 75% 66% 69% 44% 24% 28% 26% e 2013: Acquisition of Olympic 10

11 Greece home based carriers prior/after acquisition Total market Combined AEGEAN Olympic

12 Athens opportunity Underserved in terms of destinations Number of international destinations served from airport Long haul (>5 hours) Short haul (< 5 hours) Airport Athens ATH Lisbon LIS Vienna VIE Zurich ZRH Rome FCO Barcelona BCN Istanbul IST Frankfurt FRA Source: OAG, Mckinsey study (October 2014) 12

13 Strong growth out of Athens Aegean International Passengers A3 market share 25% 30% 33% 34% x YTD 13 Pax in m, Source: Aegean Airlines, AIA

14 Delivers 3 x network flows in 7 years! HUB support & defense AIA Transfer Pax Departing from Athens 1,400 1, % 1,000 3x Jan Oct 14 Jan Oct 15 14

15 Strong passenger growth July Sept 2015 Aegean delivers strong growth in Athens with 34% in international vs 17 % market 31 % in Heraklion, 30% in Rhodes while total market broadly flat Total passengers (m) July Sept % Total passengers (m) Jan Sept % +9% Out of which Athens +34% +29% Jul Sep 2014 Jul Sep % +24% Jan Sep 2014 Jan Sep 2015 Domestic International Total Domestic International Total 15

16 9 month 2015 results Growth accelerates in 3 rd quarter despite country challenges Strong cashflow generation leads to cash/equivalent at 302m* Stronger dollar, higher air navigation charges in Greece as well as lower fares on the downside, lower fuel costs and unit cost reduction stemming from economies of scale on the plus In millions Q1:14 Q1:15 Q2:14 Q2:15 Q3:14 Q3:15 9M:14 9M:15 Scheduled Services % % % % Charter % % % % Other % % % % Total revenue % % % % EBITDAR % % % % EBITDA (6.6) (14.2) 116% % % % EBT (10.8) (12.3) 13% % % % Net earnings / (loss) after tax (8.4) (8.3) 0% % % % RASK (Revenue per ASK, in cents) % % % % Yield (Revenue per RPK, in cents) % % % % CASK (EBT level, in cents) % % % % CASK (EBT level, in cents) excl. fuel costs % % % % ASKs (in millions) 1,867 2,233 20% 3,363 3,963 18% 4,333 5,322 23% 9,562 11,518 20% Load factor Scheduled services (RPK/ASK) 73.0% 70.3% 2.7pp 78.1% 75.3% 2.8pp 82.8% 82.3% 0.5pp 79.0% 77.4% 1.6pp 16 *including restricted cash and short and fixed income investments

17 Cash flow generation 430 Cashflow 9Μ 2015 (EUR m) Cash at the operating Total changes in beginning of the cashflow before working capital year working capital Δ Interest & tax Capex Net pdps Dividend Net cash flows from financing activities Cash and cash equivalents at the end of the period End of period cash includes: 19m restricted cash 10m corporate bonds 40m Money market funds 17

18 2016 capacity plans 61 Aircrafts Available seats +1.1m 145 Destinations International destinations Domestic destinations 18

19 2016 capacity plans: 16m total seats +1m vs 2015 Increasing frequencies on existing routes and new international destinations launched Dublin Nice Lille Napoli Bari or Palermo Luxembourg Amsterdam Lisbon Ireland France Italy Luxemburg Netherland Portugal Palma de Majorca Lubiana Jeddah Krakow Vilnius Split Spain Slovenia S. Arabia Poland Lithuania Croatia 19

20 20 Appendix

21 Shareholder Structure 34% 35% Th. Vassilakis * Other pre IPO shareholders Free Float 31% Listed on the Athens Exchange *11.6% controlled through Autohellas 21

22 Tourist arrivals by country 4,000, % 3,500, % +30% 3,000, % 2,500,000 2,000, % +5% +10% +10% +0% +10% ch 1,500, % 1,000, , % +21% +5% 47% +18% +10% +37% +8% +30% +40% +50% 0 UK Germany Italy France Netherlands Russia Poland Sweden USA Cyprus Rest +60% Source: SETE, Jan-Aug

23 Profit & Loss FY:13 FY:14 P&L In millions Pro forma Group Group Scheduled Services % Charter % Other (cargo, service charge, executive aviation) % Total revenue % Other operating income % Employee benefits (102.7) (100.5) 2% Aircraft fuel (223.5) (232.8) 4% Aircraft maintenance (71.3) (77.6) 9% Overflight expenses (46.2) (53.9) 17% Ground handling expenses (51.6) (51.5) 0% Airport charges (34.5) (37.4) 9% Catering expenses (18.6) (21.1) 13% Distribution expenses (58.0) (61.2) 6% Marketing and advertising expenses (8.4) (12.3) 46% Other operating expenses (63.3) (63.8) 1% EBITDAR % EBITDAR margin 21.4% 23.0% Aircraft leases (90.9) (90.7) 0% EBITDA % Depreciation (14.1) (12.8) 9% EBIT % EBIT margin 9.0% 11.6% Financial results (6.0) (11.3) 90% EBT % EBT margin 8.3% 10.4% Income Tax (18.4) (14.4) 22% Net earnings / (loss) after tax % 23 Note: FY2013 pro forma, assuming full consolidation of Olympic Air for the full year

24 Key Operating Statistics FY:13 FY:14 Change Pro forma Group In % RASK (Revenue per ASK, in cents) % Yield (Revenue per RPK, in cents) % CASK (EBITDAR level, in cents) % CASK (EBITDAR level, in cents) excl. fuel costs % CASK (EBT level, in cents) % CASK (EBT level, in cents) excl. fuel costs % Capacity ASKs (in millions) 10,732 12,194 14% Total available seats (000) 11,879 13,088 10% Total Block Hours 135, ,062 9% Total Sectors Flown 93,601 99,486 6% Average capacity per flight % Average sector length (km) % Passengers (000) By type of service : Schedule passengers 8,169 9,574 17% Charter passengers % By network : Domestic 4,549 5,240 15% International 4,294 4,873 13% Total number of passengers 8,843 10,113 14% RPKs (in millions) 8,440 9,584 14% Pax/flight % Load factor Scheduled (Pax/AVS) 74.2% 77.3% 3.1pp Load factor Scheduled (RPK/ASK) 78.3% 78.3% 0.0pp 24 Note: FY2013 pro forma, assuming full consolidation of Olympic Air for the full year

25 Balance Sheet & Cash Flow Balance Sheet In millions Dec 13 Dec 14 Total fixed assets Cash & financial assets Other current assets Total assets Total equity Finance lease liabilities Loans Other Liabilities Total equity and liabilities Cashflow In millions Jan Dec 2013 Jan Dec 2014 Net cash flows from operating activities Net cash flows from investing activities (0.3) (51.0) Net cash flows from financing activities (26.9) (79.9) Net (decrease)/ increase in cash and cash equivalents 77.6 (19.4) Cash at the beginning of the period Cash at the end of the period

26 Key financial metrics EUR m FY:13 FY:14 FY:08 FY:09 FY:10 FY:11 FY:12 Group Group Period end cash & bonds On balance sheet debt & financial leases Net debt / (cash) EUR m FY:08 FY:09 FY:10 FY:11 FY:12 FY:13 Group FY:14 Group Sales EBITDAR EBITDAR margin 18% 17% 15% 11% 13% 21% 23% EBITDA EBITDA margin 10% 6% 0% 3% 1% 11% 13% Net earnings Net earnings margin 5% 4% 5% 5% 2% 6% 9% EUR m FY:08 FY:09 FY:10 FY:11 FY:12 Operating cash flow (before taxes & interest payments) FY:13 Group FY:14 Group 26 Note: FY2013 pro forma, assuming full consolidation of Olympic Air for the full year

27 Aegean Share Listed in Athens Exchange Bloomberg AEGN GA / Reuters AGNr.AT IPO : July 2007 / 7.60 IPO price Dividends / Returns: DPS FY DPS FY Capital return FY DPS FY Contact: investors@aegeanair.com

28 Disclaimer Forward Looking Statements Except for historical information, the statements made or information contained in this presentation are forward looking in nature. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. As such, they are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the Company s control, which could cause the actual future performance to differ materially from those referenced, projected or contemplated herein by any forward looking statement, including but not limited to the following: overall passenger traffic; the airline ticket pricing environment; the international expansion of our route network; seasonal fluctuations in passenger travel; aviation fuel prices; landing and navigation fee changes; changes in aircraft acquisition, leasing and other operating expenses; developments in government regulations and labour relations; the cost of our ground handling operations; the future development of AIA, the Greek regional airports and the international airports; foreign currency fluctuations, in particular between the euro and the U.S. dollar; the progress of our code shared and interline arrangements; the availability of additional slots or landing rights at existing airports and the availability of new airports for expansion; interest rate fluctuations; extraordinary events, such as accidents, terrorist attacks or threats of terrorist attacks, natural disasters and outbreaks of contagious diseases; the rates of taxes payable; and general economic conditions in Greece and the European Union. Although the Company believes the expectations reflected in such forward looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Therefore, past performance and/or forwardlooking statements are not to be treated as guarantees of future performance. The forward looking statements are made as of the date of this presentation, and we undertake no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise. 28