JET AIRWAYS (I) LTD. Financial Results Q1 FY09

Transcription

1 JET AIRWAYS (I) LTD Presentation on Financial Results Q1 FY09 July 29,

2 Agenda Domestic operating environment Jet Airways performance highlights JetLite performance highlights Outlook 2 2 2

3 Domestic operating environment 3 3 3

4 Domestic industry growth Traffic growth rate for the industry reduced from 11.1% in Q4 FY08 4.2% in Q1FY09 Capacity growth rate for the industry reduced from 18.1 % in Q4 FY % in Q1FY09 Per day Feb'08 Mar'08 Apr'08 May'08 Jun'08 Industry Capacity 196, , , , ,318 9W Capacity 40,737 39,611 39,626 39,051 38,584 Industry Pax 127, , , , ,872 9W Pax 29,664 26,748 27,954 27,256 24,805 Industry losses for FY 2008 estimated at USD 1.0 billion 4 4 4

5 Domestic yields are trending up 7,500 6,500 6,418 6,158 5,500 5,479 5,598 5,600 4,500 3,500 3,899 3,738 3,749 3,589 3,559 2,500 1,732 1,741 1,849 2,012 2,599 1,500 Mar 08 Apr 08 May 08 Jun 08 Jul 08 (1 15th) Basic Fare YQ Gross Yield without a major impact on traffic Seat Factor st Mar 1 30th Apr 1 31st May 1 30th Jun 1 15th Jul 5 5 S.F % S.F F % S.F J % S.F Y % 5

6 leading to an increased market share in Q1 Indian Airlines 15.4% Air Deccan 13.5% Combined 27.8% Kingfisher 14.3% Jet Lite 8.2% Combined 29.3% Jet Airways 21.1% MDLR 0.1% Indigo 11.7% SpiceJet 10.4% Paramount 1.2% Go Air 3.9% 6 Source: Press report 6 6

7 Domestic ATF prices at historic highs 71.6 ATF currently forms close to 50% of airline operating costs for FSC and close to 60% for LCC leaving airlines with very little room to maneuver. Fuel prices in June represent a crude oil price of $ Mio Feb 08 Mar 08 Apr 08 May 08 Jun 08 Jul 08 Average Fuel Rate 7 7 7

8 Performance highlights Q1 FY

9 Financial highlights Q1 FY09 Total Revenues of INR 29.0 Billion (USD Million) Up 46% over Q1 FY08 Profit Before Tax of INR 2,191 Million (USD 50.9 Million) Up 343% over Q1 FY08 Profit After Tax of INR 1,434 Million (USD 33.3 Million) Up 365% over Q1 FY08 Revenue Passengers carried 3.15 Million Up 18% from 2.68 Million in Q1 FY08 Achieved Seat Factor of 67.4% Down from 69.1% in Q1 FY08 9 * ROE used for conversion: 1 USD = INR for Q1 FY09 and 1 USD = INR for Q1 FY08 9 9

10 Summary Q1 FY09 (USD Million) DOMESTIC INTERNATIONAL TOTAL Q1 09 Q1 08 Q1 09 Q1 08 Q1 09 Q1 08 Total Revenues Of which Op. Revs Total Expenditure Of which Fuel Excess Depr Reversal due to change in method Profit before Tax (65.8) (20.1) Profit after Tax EBITDAR (33.2) 48.5 (23.7) 6.4 (56.8) 54.9 Margin % 9.6% 14.4% 7.4% 6.0% 8.5% 12.4% * ROE used for conversion: 1 USD = INR for Q1 FY09 and 1 USD = INR for Q1 FY08 The figures include one time impact of change in depreciation policy from WDV to SLM for narrow body aircraft of USD Mio

11 Key events Addition of 4 aircraft to fleet (2 A330 and 2 ATR) Launched flights to Hong Kong via Mumbai on 14 April Daily flights to Abu Dhabi from Mumbai and Delhi effective April Additional frequencies to Doha (from Kozhikode) and Muscat (from Mumbai) in April Introduced Mumbai Bangkok effective May 7 Flights from Mumbai to San Francisco via Shanghai introduced on June

12 Company operating parameters Q1 FY09 Traffic Parameters Apr 08 Jun 08 Apr 07 Jun 07 Variance % Number of Departures 35,337 29, % ASKMs Mio 8,154 4, % RPKMs Mio 5,498 3, % Passenger Load Factor % 67.4% 69.1% 1.7 points Block Hours 81,229 59, % Revenue Passengers (Million) % Revenue per RPKM in INR % Cost per ASKM in INR % Break Even Seat Factor (%) 86.1% 66.9% 19.2 points Cost per ASKM in INR w/o Fuel % Break Even Seat Factor (%) w/o Fuel 42.8% 40.1% 2.7 points Average Gross revenue per passenger in INR* 8,172 6, % Average Gross revenue per passenger in USD* % Period end Fleet size % Average fleet size during period % Average Head Count Gross 13,403 10, % Aircraft Utilisation % * Average revenue per passenger includes Fuel Surcharge and Congestion Surcharge * ROE used for conversion: 1 USD = INR for Q1 FY09 and 1 USD = INR for Q1 FY

13 Company P&L Q1 FY09 INR Million INR Million Apr 08 Jun 08 Apr 07 Jun 07 Variance % INCOME Operating Revenues 28,672 18, % Non Operating Revenues 320 1, % Total Revenues 28,992 19, % IN USD Mio EXPENDITURE Employees Remuneration & Benefits 3,552 2, % Aircraft Fuel Expenses 15,392 5, % Selling & Distribution Expenses 3,174 2, % Other Operating Expenses 8,999 5, % Aircraft Lease Rentals 1,506 1, % Depreciation 1,990 1, % Interest 1, % Total Expenditure 35,959 19, % IN USD Mio Excess Depr Reversal due to change in method 9,159 PROFIT BEFORE TAXATION 2, % IN USD Mio Provision for taxation % PROFIT AFTER TAXATION 1, % IN USD Mio EBITDAR (2,446) 2, % IN USD Mio (56.8) 54.9 Margin % 8.5% 12.4% * ROE used for conversion: 1 USD = INR for Q1 FY09 and 1 USD = INR for Q1 FY08 13

14 A. Domestic operations

15 Domestic operating parameters Q1 FY09 Traffic Parameters Apr 08 Jun 08 Apr 07 Jun 07 Variance % Number of Departures 29,316 27, % ASKMs Mio 2,938 2, % RPKMs Mio 2,124 2, % Passenger Load Factor % 72.3% 71.2% 1.1 points Block Hours 50,221 47, % Revenue Passengers (Million) % Revenue per RPKM in INR % Cost per ASKM in INR % Break Even Seat Factor (%) 90.1% 63.4% 26.7 points Average Gross revenue per passenger in INR* 5,666 5, % Average Gross revenue per passenger in USD* % * Average revenue per passenger includes Fuel Surcharge and Congestion Surcharge * ROE used for conversion: 1 USD = INR for Q1 FY09 and 1 USD = INR for Q1 FY

16 Domestic P & L Q1 FY 09 INR Million INR Million Apr 08 Jun 08 Apr 07 Jun 07 Variance % INCOME Operating Revenues 14,901 13, % Non Operating Revenues 313 1, % Total Revenues 15,214 15, % IN USD Mio EXPENDITURE Employees Remuneration & Benefits 2,066 2, % Aircraft Fuel Expenses 7,105 4, % Selling & Distribution Expenses 1,973 1, % Other Operating Expenses 5,184 3, % Aircraft Lease Rentals 1, % Depreciation 684 1, % Interest % Total Expenditure 18,723 14, % IN USD Mio Excess Depr Reversal due to change in method 8,531 PROFIT BEFORE TAXATION 5,022 1, % IN USD Mio EBITDAR (1,427) 1, % IN USD Mio (33.2) 48.5 Margin % 9.6% 14.4% * ROE used for conversion: 1 USD = INR for Q1 FY09 and 1 USD = INR for Q1 FY

17 B. International operations

18 International operating parameters Q1 FY09 Traffic Parameters Apr 08 Jun 08 Apr 07 Jun 07 Variance % Number of Departures 6,021 2, % ASKMs Mio 5,216 1, % RPKMs Mio 3,374 1, % Passenger Load Factor % 64.7% 65.6% 0.9 points Block Hours 31,008 11, % Revenue Passengers (Million) % Revenue per RPKM in INR % Cost per ASKM in INR % Break Even Seat Factor (%) 84.9% 80.7% 4.2 points Average Gross revenue per passenger in INR* 16,575 14, % Average Gross revenue per passenger in USD* % * Average revenue per passenger includes Fuel Surcharge * ROE used for conversion: 1 USD = INR for Q1 FY09 and 1 USD = INR for Q1 FY

19 International P & L Q1 FY09 INR Million INR Million Apr 08 Jun 08 Apr 07 Jun 07 Variance % INCOME Operating Revenues 13,770 4, % Non Operating Revenues % Total Revenues 13,778 4, % IN USD Mio EXPENDITURE Employees Remuneration & Benefits 1, % Aircraft Fuel Expenses 8,287 1, % Selling & Distribution Expenses 1, % Other Operating Expenses 3,814 1, % Aircraft Lease Rentals % Depreciation 1, % Interest % Total Expenditure 17,237 5, % IN USD Mio Excess Depr Reversal due to change in method 628 PROFIT BEFORE TAXATION (2,831) (817) 246.3% IN USD Mio (65.8) (20.1) EBITDAR (1,018) % IN USD Mio (23.7) 6.4 Margin % 7.4% 6.0% * ROE used for conversion: 1 USD = INR for Q1 FY09 and 1 USD = INR for Q1 FY

20 Balance Sheet Jet Airways standalone INR Million As on 30 Jun 08 INR Million As on 31 Mar 08 I SOURCES OF FUNDS Shareholders' Funds 36,575 45,517 Loan Funds 125, ,025 Deferred payments towards Jet Lite Investments 4,125 4,125 Deferred Tax Liability 2,347 1,602 TOTAL SOURCES OF FUNDS 168, ,269 In USD Million 3, ,169.2 II. APPLICATION OF FUNDS Net Fixed Assets: 160, ,075 Investments 15,078 14,754 Current Assets, Loans & Advances 39,516 35,394 Less: Current Liabilities & Provisions 45,860 35,953 Net Current Assets (6,344) (559) TOTAL APPLICATION OF FUNDS 168, ,269 In USD Million 3, , * ROE used for conversion: 1 USD = INR for June 2008 and INR for March

21 Major initiatives Network and Revenues Capacity reduction from July of around 12% in domestic Reduction of commissions paid to travel agents from 5% to 0% Increase in the fuel surcharges by Rs. 100 and Rs. 200 based on sector lengths eff. July 16, which will help us recover the July fuel cost increase Increase of INR 4 per kg in the net cargo yield by reduction in discounts offered to agents in the market from July

22 Network initiatives

23 Network Initiatives Domestic/International Connectivity with Gulf 1. Recently introduced BOM MCT and BOM AUH flights connect both ways with 15+ domestic operations at BOM. 2. Similarly DEL AUH flights introduced at schedules that maximize domestic and SAARC connectivity. 3. BOM/DXB, DEL/DXB, BOM/RUH and BOM/JED flights also planned with similar schedules 4. BOM/BAH flights rescheduled w.e.f. Winter Schedule to also mirror schedules

24 JetLite (India) Limited 24

25 Operational Highlights Passenger increased by 19.4% in Q1 FY 09 as compared to Q1 FY 08 Average seat factor for the Q1 FY 09 is 72.4% vs 73.7% same quarter last year Operating revenue increase by 18.3% in Q1 FY 09 as compared to Q1 FY 08 Loss after tax of Rs. 1,348 million (US$ 31.3 million) in Q1 Fy 09 vs Rs. 1,069 million (US$ 26.3 million) in Q1 FY 08 Aircraft utilization increased by 10% in Q1 FY 09 as compared to Q1 FY 08 25

26 Operating parameters Q1 FY09 Traffic Parameters Apr '08 Jun '08 Apr '07 Jun '07 Variance % Number of Departures 11,383 10,005 14% ASKMs Mio 1,566 1,413 11% RPKMs Mio 1,133 1,041 9% Passenger Load Factor % 72.4% 73.7% 1 pts. Block Hours 21,172 19,275 10% Revenue Passengers (Million) % Revenue per RPKM in INR % Cost per ASKM in INR % Break Even Seat Factor (%) 111% 97% 13 pts. Cost per ASKM in INR w/o Fuel % Break Even Seat Factor (%) w/o Fuel 53% 53% 0 pts. Average Gross revenue per passenger in INR* 4,093 4,202 3% Average Gross revenue per passenger in USD* % * Average revenue per passenger includes Fuel Surcharge and Congestion Surcharge * ROE used for conversion: 1 USD = INR for Q1 FY09 & INR for Q1 FY 08 26

27 Income statement Q1 FY09 Figs in INR Mio Particulars Apr '08 Jun '08 Apr '07 Jun '07 Variance % INCOME Operating Revenues 4, , % Non Operating Revenues % Total Revenues 4, , % IN USD Mio EXPENDITURE Employees Remuneration & Benefits % Aircraft Fuel Expenses 3, , % Selling & Distribution Expenses % Other Operating Expenses 1, , % Aircraft Lease Rentals % Depreciation % Interest % Total Expenditure 6, , % IN USD Mio PROFIT BEFORE TAXATION (2,035.7) (1,069.2) 90% IN USD Mio (47.3) (26.3) Provision for taxation (688.0) PROFIT AFTER TAXATION (1,347.7) (1,069.2) 26% IN USD Mio (31.3) (26.3) * ROE used for conversion: 1 USD = INR for Q1 FY09 & INR for Q1 FY 08 27

28 Balance Sheet Q1 FY09 Figs in INR Mio A s o n A s o n 3 0 J u n M a r 0 8 I S O U R C E S O F F U N D S S h a re h o ld e rs ' F u n d s 6, ,6 0 8 L o a n F u n d s 8, ,2 7 1 T O T A L S O U R C E S O F F U N D S 1 5, ,8 7 8 I n U S D M illio n I I. A P P L I C A T I O N O F F U N D S N e t F ix e d A s s e t s : 1, ,5 0 0 I n v e s tm e n t s 8 8 D e fe rr e d T a x A s s e t s 1,3 1 5 C u rre n t A s s e ts, L o a n s & A d v a n c e s 5, ,0 0 5 L e s s : C u rre n t L ia b ilitie s & P r o v is io n s 8, ,1 0 3 N e t C u rr e n t A s s e t s ( 2,8 4 6 ) ( 1,0 9 8 ) P ro fit & L o s s A c c o u n t 1 5, ,8 4 4 T O T A L A P P L I C A T I O N O F F U N D S 1 5, ,8 7 8 I n U S D M illio n * ROE used for conversion: 1 USD = INR for Q1 FY09 & INR for plan Q1 FY 08 28

29 Outlook

30 Outlook Q2 trends for passengers and yields will reflect low seasonality Reduction in Domestic capacity of around 12% due to commercial reasons Fuel surcharge increased in July, Current YQ for domestic INR 2,350 for sector distance =<750 kms INR 3,100 for distance > 750 kms Have increased Minimum Selling Price in July; looking to further fare increases in August 2008 Oil prices on the downward trend; this could provide potential entry point from a hedging perspective Will begin operations to Dubai in end August and to Saudi Arabia in October 2008; with this, we will complete our International expansion 1 st phase

31 Thank You

32 Disclaimer Certain statements in this release concerning Jet Airways future growth prospects are forwardlooking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in the aviation business including those factors which may affect our cost advantage, wage increases, our ability to attract and retain professionals, time and cost overruns on various parameters, our ability to manage our international operations, liability for damages, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital, and general economic conditions affecting our industry. Jet Airways may, from time to time, make additional written and oral forwardlooking statements, including our reports to shareholders. Jet Airways does not undertake to update any forward looking statement that may be made from time to time by or on behalf of the company