Corporate Presentation. September 2015

Transcription

1 Corporate Presentation September 2015

2 Agenda 1 Aegean Airlines company overview 2 Update on market environment 3 Financial results and strategy

3 Quality & Award winning airline Weathering through the crisis and positioning for strong growth 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 Traffic in RPKs (m) Launched operations 2 local acquisitions First international routes launched 27 Airbus order Largest Greek airline Star alliance member Becoming single type jet operator Acquisition of Olympic Air 7 Airbus order 3

4 Using synergies to expand Passengers (m) 8,8 10, Fleet (A/C) ,1 2x 30 Turboprop Airbus e Domestic International ASKs (m) +60% e Network - Destinations x e e 4

5 Growing from 3 to 9 A/C bases in Greece and Cyprus 134 destinations 100 international 34 domestic THESSALONIKI 2009 : 3 A/C bases CORFU ATHENS THESSALONIKI KALAMATA KOS ATHENS CHANIA HERAKLION RHODES LARNACA 2015 : 9 A/C bases HERAKLION 5

6 Agenda 1 Aegean Airlines company overview 2 Update on market environment 3 Financial results and strategy

7 Tourist arrivals by air Attractive Athens potential => +50% growth in tourist arrivals Athens (m) Tourist arrivals by air (m) 3,1 3,4 4, e 10,6 14,6 15,6 Rest of Greece (m) e 7,5 11,2 11,4 Source: SETE, Aegean Airlines estimates e 7

8 Driving total traffic growth despite 27%-28% GDP decline International - Athens Total passengers (m) International - rest of GR airports , YTD trends E +24% Domestic E Domestic 7, ,1 6 5,1 5, E +20% International Athens +2% International rest of GR Domestic International - Athens International - rest of GR airports E 8 Source: AEGEAN estimates, YTD is Jan-Aug for Athens (AIA source) and Jan- July for rest of GR airports (HCAA source)

9 Agenda 1 Aegean Airlines company overview 2 Update on market environment 3 Financial results and strategy

10 Ability to adjust and transform successfully Gradual Growth Successful restructuring Strong Growth Building presence / brand /product Heavy reliance on domestic network & local demand Mix of fleet No alliances Extrovert/ incoming leisure focus Flexibility/outsourcing/ homogeneous jet fleet Quality/customer excellence focus remains Star Alliance entry 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 10

11 2015 capacity plans: 15m total seats, 2m more vs 2014 Increasing frequencies on existing routes and new international destinations launched Helsinki Toulouse Deauville Metz Pisa Malta Amsterdam Alexandria Sharm El Sheikh Dubrovnik Finland France Italy Malta Netherlan ds Egypt Croatia Paphos Riyadh Tallinn Oslo Tehran Yerevan Cyprus S. Arabia Estonia Norway Iran Armenia Additional capacity invested mainly on: International network Athens, Crete, Rhodes, Cyprus bases Increasing frequencies on existing routes (opened 1-2 years ago) 11

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 Aegean strengthens Athens hub *Number of routes from Athens International routes International routes total routes total routes

14 Delivers 3 x network flows in 7 years! HUB support & defense Aegean Transfer Pax Departing from Athens x % H14 1H15 14

15 Solid Jan-Jun 2015 operating performance Total passengers (m) +15% +10% +20% 4,3 5,0 1H14 1H15 2,3 2,6 2,4 2,0 Domestic International Total passengers 15

16 Strong passenger growth July & August 2015 Aegean delivers sharp over performance in Athens with 35% in international + vs 18 % market And 30 % in Heraklion and 15% in Rhodes while total is 0 to -2 % for the 2 months +21% Total passengers (m) Out of which Athens +35% +30% +11% 2,5 3,0 Jul & Aug 2014 Jul & Aug ,2 1,3 1,3 1,6 16 Domestic International Total

17 First Half 2015 results Revenue at 404m (+4%) and net profit at 14.8m (-8%) Strong cashflow generation leads to cash/equivalent at 320m* Stronger dollar, higher air navigation charges in Greece as well as lower fares, offset the benefit of lower fuel costs and unit cost reduction stemming from economies of scale In millions Q1:14 Q1:15 Q2:14 Q2:15 H1:14 H1:15 Total revenue % % % EBITDAR % % % EBIT (9.7) (17.5) 81% % % EBT (10.8) (12.3) 13% % % Net earnings / (loss) after tax (8.4) (8.3) 0% % % ASKs (in millions) 1,867 2,233 20% 3,363 3,963 18% 5,230 6,196 18% Total available seats (000) 2,295 2,613 14% 3,526 4,122 17% 5,821 6,734 16% Total Block Hours 24,491 27,428 12% 40,822 46,028 13% 65,313 73,457 12% Total Sectors Flown 17,829 19,150 7% 27,040 30,416 12% 44,869 49,566 10% Load factor - Scheduled (Pax/AVS) 71.0% 70.7% -0.3pp 77.1% 75.9% -1.1pp 74.6% 73.9% -0.7pp Load factor - Scheduled (RPK/ASK) 73.0% 70.3% -2.7pp 78.1% 75.3% -2.8pp 76.1% 73.4% -2.7pp 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 % % % 17 *including restricted cash and short and fixed income investments

18 Post Capital control trading update New bookings decline following referendum announcements (June 26) and capital controls enforcement (June 29) due to uncertainty Aegean addressed the drop but with some pax lost but mostly with a cost in yield Subsequent weeks see a recovery in bookings to last year levels Even with the uncertainty the demand in terms of traffic numbers is holding and Greece is still in demand Winter months to be tougher given weaker economy (non tourism / local demand reliance) Capital controls operational / cashflow issues manageable Political / economic stability remains key for long term planning Aegean 1. substantial cash reserves and 2. flexibility to adjust network / size to cope with any possible downturn 18

19 Cash flow generation Cashflow 2014 (EUR m) , Cash at the beginning of the year operating cashflow before working capital Δ Total changes in working capital Interest & tax Capex Net pdps OA acquisition Capital return Other Cash and cash equivalents at the end of the period 125 Cashflow 1H 2015 (EUR m) Cash at the beginning of the year operating cashflow before working capital Δ Total changes in working capital Interest & tax Capex Net pdps Dividend Net cash flows from financing activities Cash and cash equivalents at the end of the period 19

20 20 Appendix

21 2015 Network ASKs* by region Balkans 2% Skandinavia 4% CEE 8% Middle East 8% Domestic Market 15% Cyprus 12% Available seats by region Cyprus 10% Western Europe 51% Domestic Market 47% Western Europe 27% CEE 4% Skandinavia 2% Middle East 7% Balkans 3% destinations 100 international 34 domestic * ASKs: Available Seat Kilometers

22 Fleet evolution June 2015 Fleet: Aegean takes delivery of 3 brand A320 aircraft direct order with Airbus + 5 more Aircraft from lessors Focus on flexibility: adjust to needs & market / Lease expirations each year Only 4 A/C under finance leases => limits residual value balance sheet risk Number of A/C & Total seats RJ100 B737 A320 BOMBARDIER Seats Note: Olympic Air fleet included as of 2014

23 Revenue Breakdown shift to international PSO Revenue Domestic Revenue International Revenue 56% 75% 66% 68% 44% 24% 28% 26% e 2013: Acquisition of Olympic 23

24 Greek Tourism 2015 positive trends despite country challenges +7% YTD in 2015 (Jan July) Strong arrivals growth from traditional western European source markets, US, Turkey Arrivals from 1.25m in 2014 (-7%)=> significant weakness in 2015 early indications point to decline in excess of 40% 25,0 20,0 15,0 10,0 5,0 0,0 16,2 15,9 Total tourist arrivals* By Air By other modes of transport (mainly road) Stagnant for almost 7 years 14,9 15, ,4 15,5 17,9 22,0 Rest of Europe 34% Tourist arrivals by air By country of origin (2014) America 6% Asia 3% Russia 9% Germany 15% Italy 6% France 10% UK 15% 24 source: Aegean estimates, Bank of Greece, SETE, AIA surveys, excludes 2m cruises traffic reported by SETE

25 Shareholder Structure 34% 35% Th. Vassilakis * Other pre-ipo shareholders Free Float 31% Listed on the Athens Exchange *11.6% controlled through Autohellas 25

26 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 % 26 Note: FY2013 pro-forma, assuming full consolidation of Olympic Air for the full year

27 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 27 Note: FY2013 pro-forma, assuming full consolidation of Olympic Air for the full year

28 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

29 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 29 Note: FY2013 pro-forma, assuming full consolidation of Olympic Air for the full year

30 Profit & Loss per quarter In millions Q1:14 Q1:15 Q2:14 Q2:15 H1:14 H1:15 Scheduled Services % % % Charter % % % Other % % % Total revenue % % % Other operating income % % % Employee benefits (22.2) (24.3) 9% (24.2) (26.7) 10% (46.4) (51.0) 10% Aircraft fuel (37.1) (30.8) -17% (63.9) (61.5) -4% (101.0) (92.3) -9% Aircraft maintenance (12.1) (12.9) 6% (21.6) (25.8) 19% (33.7) (38.7) 15% Overflight expenses (9.0) (10.6) 18% (15.3) (18.3) 20% (24.3) (29.0) 19% Ground handling expenses (8.6) (10.2) 20% (14.0) (16.2) 16% (22.6) (26.5) 17% Airport charges (4.1) (9.4) 129% (11.8) (14.4) 22% (15.9) (23.8) 50% Catering expenses (3.5) (3.8) 11% (5.8) (6.6) 14% (9.3) (10.5) 13% Distribution expenses (14.0) (17.0) 21% (18.1) (22.7) 26% (32.1) (39.8) 24% Marketing and advertising expenses (2.2) (2.3) 4% (3.0) (4.8) 58% (5.2) (7.0) 35% Other operating expenses (10.9) (12.2) 12% (19.3) (16.9) -12% (30.2) (29.1) -4% EBITDAR % % % EBITDAR margin 10.4% 4.9% 23.1% 22.7% 18.7% 16.6% Aircraft leases (20.5) (20.9) 2% (22.9) (26.3) 15% (43.4) (47.2) 9% EBITDA (6.6) (14.2) 116% % % Depreciation (3.1) (3.3) 7% (3.0) (3.6) 22% (6.1) (6.9) 14% EBIT (9.7) (17.5) 81% % % EBIT margin -7.2% -12.6% 12.9% 11.4% 6.0% 3.2% Financial results (1.2) (0.0) (1.2) EBT (10.8) (12.3) 13% % % EBT margin -8.1% -8.9% 12.9% 11.8% 5.7% 4.7% Income Tax % (8.5) (8.1) -5% (6.0) (4.2) -31% Net earnings / (loss) after tax (8.4) (8.3) 0% % % 30

31 Key Quarterly Operating Statistics Q1:14 Q1:15 Change Q2:14 Q2:15 Change H1:14 H1:15 Change Group Group In % Group Group In % Group 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) 1,867 2,233 20% 3,363 3,963 18% 5,230 6, % Total available seats (000) 2,295 2,613 14% 3,526 4,122 17% 5,821 6, % Total Block Hours 24,491 27,428 12% 40,822 46,028 13% 65,313 73, % Total Sectors Flown 17,829 19,150 7% 27,040 30,416 12% 44,869 49, % Average capacity per flight % % % Average sector length (km) % % % Passengers (000) By type of service : Schedule passengers 1,625 1,844 13% 2,536 3,007 19% 4,161 4,850 17% Charter passengers 2 3 7% % % By network : Domestic % 1,391 1,560 12% 2,321 2,555 10% International % 1,314 1,556 18% 2,011 2,407 20% Total number of passengers 1,628 1,846 13% 2,705 3,116 15% 4,333 4,962 15% RPKs (in millions) 1,362 1,566 15% 2,622 2,985 14% 3,984 4,552 14% Pax/flight % % % Load factor - Scheduled (Pax/AVS) 71.0% 70.7% -0.3pp 77.1% 75.9% -1.1pp 74.6% 73.9% -0.7pp Load factor - Scheduled (RPK/ASK) 73.0% 70.3% -2.7pp 78.1% 75.3% -2.8pp 76.1% 73.4% -2.7pp 31

32 Balance Sheet & Cashflow June 2015 Balance Sheet In millions Dec 13 Jun 15 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 Jun 2014 Jan Jun 2015 Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities (4.6) (51.8) Net (decrease)/ increase in cash and cash equivalents Cash at the beginning of the period Cash at the end of the period

33 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

34 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. 34