Jet Airways (India) Ltd. Presentation on Financial Results Q3 FY th January 2008

Transcription

1 Jet Airways (India) Ltd. Presentation on Financial Results Q3 FY08 28 th January

2 Agenda Performance highlights Q3 FY08 Apr - Dec FY08 Outlook JetLite performance highlights 2 2 2

3 Performance highlights Q3 FY

4 Financial highlights Q3 FY08 Total Revenues of INR 25.2 Billion (USD Million) Up 28% over Q3 FY07 EBITDAR of INR 2,906 Million (USD 73.7 Million) Down 6% over Q3 FY07 Loss Before Tax of INR 1,304 Million (USD 33.1 Million) Loss After Tax of INR 911 Million (USD 23.1 Million) Revenue Passengers carried 2.95 Million Up 9% from 2.72 Million in Q3 FY07 Achieved Seat Factor of 69.1% Down from 69.3% in Q3 FY07 * ROE used for conversion: 1 USD = INR for FY08 and 1 USD = INR for FY

5 Summary Q3 FY08 (USD Million) DOMESTIC INTERNATIONAL TOTAL Q3 08 Q3 07 Q3 08 Q3 07 Q3 08 Q3 07 Total Revenues Of which Op. Revs Total Expenditure Of which Fuel (Loss)/Profit before Tax (3.7) 16.6 (29.4) (2.6) (33.1) 14.0 PBT (excl. Sale & Lease back) (3.7) 5.6 (29.4) (2.6) (33.1) 3.1 (Loss)/Profit after Tax (29.4) (2.6) (23.1) 9.0 EBITDAR Margin % 12.9% 16.8% 10.4% 15.2% 12.0% 16.4% * ROE used for conversion: 1 USD = INR for FY08 and 1 USD = INR for FY

6 Key events Addition of 10 aircraft to fleet (5 wide body and 5 narrow body) Launched New York (JFK) flights via Brussels on 28 October Upgraded South East Asian routes to A330 aircraft in December Flights to Dhaka from Kolkata and Delhi in December Capacity addition on domestic routes Mumbai - Chandigarh, Mumbai - Kochi and Mumbai Bhopal Kolkata Ahmedabad, Kolkata Guwahati Announced codeshare with American Airlines effective February Fuel surcharge increased to INR 1,650 for domestic operations 6 6 6

7 Market share Q3 FY08 Combined 29.0% Indian 16.0% Air Deccan 15.4% Kingfisher 13.6% JetLite 7.4% Combined 29.4% Jet Airways 22.0% Indigo 9.9% SpiceJet 10.2% Paramount 1.2% Go Air 4.3% Source: Press report 7 7 7

8 Company operating parameters Traffic Parameters Oct 07-Dec 07 Oct 06-Dec 06 Variance % Number of Departures 32,068 30, % ASKMs Mio 6,586 4, % RPKMs Mio 4,554 3, % Passenger Load Factor % 69.1% 69.3% -0.2 points Block Hours 68,646 57, % Revenue Passengers (Million) % Revenue per RPKM in INR % Cost per ASKM in INR % Break Even Seat Factor (%) 73.5% 68.7% 4.8 points Average Gross revenue per passenger in INR* 7,521 6, % Average Gross revenue per passenger in USD* % Period end Fleet size % Average fleet size during period % Average Head Count Gross 11,910 9, % Aircraft Utilisation % * Average revenue per passenger includes Fuel Surcharge and Congestion Surcharge * ROE used for conversion: 1 USD = INR for FY08 and 1 USD = INR for FY

9 Company P&L INR Million INR Million Oct 07-Dec 07 Oct 06-Dec 06 Variance % INCOME Operating Revenues 24,260 18, % Non Operating Revenues % Total Revenues 25,172 19, % IN USD Mio EXPENDITURE Employees Remuneration & Benefits 3,027 2, % Aircraft Fuel Expenses 9,173 6, % Selling & Distribution Expenses 2,622 2, % Other Operating Expenses 6,531 5, % Aircraft Lease Rentals 1,365 1, % Depreciation 2,204 1, % Interest 1, % Total Expenditure 26,476 19, % IN USD Mio (LOSS)/PROFIT BEFORE TAXATION (1,304) % IN USD Mio (33.1) 14.0 IN USD Mio (excl Profit on sale of aircraft) (33.1) 3.1 Provision for taxation (393) % (LOSS)/PROFIT AFTER TAXATION (911) % IN USD Mio (23.1) 9.0 EBITDAR 2,907 3, % IN USD Mio Margin % 12.0% 16.4% * ROE used for conversion: 1 USD = INR for FY08 and 1 USD = INR for FY

10 A. Domestic operations

11 Domestic operating parameters Traffic Parameters Oct 07-Dec 07 Oct 06-Dec 06 Variance % Number of Departures 28,870 28, % ASKMs Mio 3,040 3, % RPKMs Mio 2,198 2, % Passenger Load Factor % 72.3% 70.1% 2.2 points Block Hours 49,241 48, % Revenue Passengers (Million) % Revenue per RPKM in INR % Cost per ASKM in INR % Break Even Seat Factor (%) 73.1% 68.7% 4.4 points Average Gross revenue per passenger in INR* 5,667 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 FY08 and 1 USD = INR for FY

12 Domestic P & L INR Million INR Million Oct 07-Dec 07 Oct 06-Dec 06 Variance % INCOME Operating Revenues 15,397 14, % Non Operating Revenues % Total Revenues 16,304 15, % IN USD Mio EXPENDITURE Employees Remuneration & Benefits 2,583 1, % Aircraft Fuel Expenses 5,257 4, % Selling & Distribution Expenses 1,762 1, % Other Operating Expenses 3,811 3, % Aircraft Lease Rentals 1,037 1, % Depreciation 1, % Interest % Total Expenditure 16,448 14, % IN USD Mio (LOSS)/PROFIT BEFORE TAXATION (144) % IN USD Mio (3.7) 16.6 IN USD Mio (excl Profit on sale of aircraft) (3.7) % EBITDAR 1,985 2, % IN USD Mio Margin % 12.9% 16.8% * ROE used for conversion: 1 USD = INR for FY08 and 1 USD = INR for FY

13 Key performance drivers Peak season impact and slow down in industry capacity has led to : Higher seat factor of 72.3% vs 70.1% over the same period last year Improved yield in Q3 FY08 vs Q3 FY07 by 2.6% (13.2% higher sequentially) Excluding YQ yield in Q3 FY 08 is 10.7% lower than Q3 FY07 Q3 FY08 growth in domestic capacity (industry) was 22% as compared to 44% last year same period; Average Industry seat factor for Q3 FY 08 estimated to be in the high 60s; 9W Seat factor was 72% Product enhancement initiatives New aircraft inducted in domestic with IFE Increased seat pitch in Business & Economy class on existing aircraft Fuel prices were at historical highs : Rate impact as compared to Q2 FY08 was USD 15.5 million Progressive increases in fuel surcharges have been implemented

14 B. International operations

15 International operating parameters Traffic Parameters Oct 07-Dec 07 Oct 06-Dec 06 Variance % Number of Departures 3,198 1, % ASKMs Mio 3,546 1, % RPKMs Mio 2,356 1, % Passenger Load Factor % 66.4% 67.6% -1.2 points Block Hours 19,405 9, % Revenue Passengers (Million) % Revenue per RPKM in INR % Cost per ASKM in INR % Break Even Seat Factor (%) 77.0% 70.0% 7.0 points Average Gross revenue per passenger in INR* 18,286 16, % Average Gross revenue per passenger in USD* % * Average revenue per passenger includes Fuel Surcharge * ROE used for conversion: 1 USD = INR for FY08 and 1 USD = INR for FY

16 International P & L INR Million INR Million Oct 07-Dec 07 Oct 06-Dec 06 Variance % INCOME Operating Revenues 8,863 4, % Non Operating Revenues 6 - Total Revenues 8,868 4, % IN USD Mio EXPENDITURE Employees Remuneration & Benefits % Aircraft Fuel Expenses 3,917 1, % Selling & Distribution Expenses % Other Operating Expenses 2,720 1, % Aircraft Lease Rentals % Depreciation 1, % Interest % Total Expenditure 10,028 4, % IN USD Mio PROFIT BEFORE TAXATION (1,159) (113) % IN USD Mio (29.4) (2.6) EBITDAR % IN USD Mio Margin % 10.4% 15.2% * ROE used for conversion: 1 USD = INR for FY08 and 1 USD = INR for FY

17 Breakup Q3 FY08 UK USA Asean/SAARC Total Flights ,598 3,198 Pax 125, , , ,794 Total Net Rev USD Mio SF% 63.7% 64.5% 78.6% 66.4% % of Total Intl Pax % of Total Intl Net Rev * ROE used for conversion: 1 USD = INR for FY08 and 1 USD = INR for FY

18 Sector-wise seat factors Sector Q1 FY08 Q2 FY08 Q3 FY08 Apr-Dec'07 SAARC MAA-CMB-MAA DEL-KTM-DEL CCU-DAC-CCU DEL-DAC-DEL SAARC Total ASEAN BOM-SIN-BOM MAA-KUL-MAA MAA-SIN-MAA DEL-SIN-DEL DEL-BKK-DEL CCU-BKK-CCU ASEAN Total UK BOM-LHR-BOM (117/118) BOM-LHR-BOM (119/120) DEL-LHR-DEL ATQ-LHR-ATQ AMD-LHR-AMD UK Total US BOM-BRU-EWR-BRU-BOM MAA/DEL-BRU-YYZ-BRU-DEL/MAA DEL-BRU-JFK-BRU-DEL US Total TOTAL

19 One time/ extraordinary impact (International) Impact of lower utilisation of wide-body aircraft for the period Oct to Dec 07 amounts to ~ 8.5 USD million Route launch expenses USD 1.0 million Impact of employees hired for International operations but not fully utilised (Pilots and Engineers) ~ USD 4 5 million

20 Performance highlights April-December FY

21 Summary April-December FY08 (USD Million) DOMESTIC INTERNATIONAL TOTAL Apr-Dec 07 Apr-Dec 06 Apr-Dec 07 Apr-Dec 06 Apr-Dec 07 Apr-Dec 06 Total Revenues 1, , , ,222.8 Of which Op. rev 1, , ,147.7 Total Expenditure 1, , ,238.7 Of which Fuel (Loss)/Profit before Tax (80.1) (43.8) (9.7) (15.8) PBT (excl. Sale & Lease back) (9.5) (19.5) (80.1) (43.8) (89.6) (63.3) (Loss)/Profit after Tax (80.1) (43.8) (8.1) (13.6) EBITDAR Margin % 9.6% 13.0% 7.4% 0.3% 8.9% 10.8% * ROE used for conversion: 1 USD = INR for FY08 and 1 USD = INR for FY

22 Balance sheet I SOURCES OF FUNDS INR Million As on 31-Dec-07 INR Million As on 31-Mar-07 Shareholders' Funds 21,121 22,373 Loan Funds 101,912 60,563 Deferred payments towards Jet Lite Investments 5,500 - Deferred Tax Liability 3,175 3,311 TOTAL SOURCES OF FUNDS 131,709 86,246 In USD Million 3, ,984.0 II. APPLICATION OF FUNDS Net Fixed Assets: 117,005 72,920 Investments 16, Current Assets, Loans & Advances 30,722 33,645 Less: Current Liabilities & Provisions 32,038 21,008 Net Current Assets (1,315) 12,637 Profit & Loss Account TOTAL APPLICATION OF FUNDS 131,709 86,246 In USD Million 3, ,984.0 * ROE used for conversion: 1 USD = INR for FY08 and 1 USD = INR for FY

23 Ongoing initiatives

24 Ongoing initiatives Network expansion Launched Gulf routes in January 2008 Kuwait from Delhi/ Kochi Bahrain from Mumbai/ Kochi Muscat from Kozhikode/ Kochi Doha from Mumbai/ Kozhikode Operations to San Francisco via Shanghai and to Hong Kong in the next few months Increased sales initiatives Corporate deals over 2,100 (includes 600 deals for international deals) Imminent codeshares (Air Canada and United) Increase in web bookings 2,255 per day in Q3 FY08 from 1,881 in Q3 FY

25 Outlook

26 Outlook Q4 trends for passengers and yields will reflect seasonality Remaining aircraft deliveries on schedule Rationalisation in domestic capacity & yields Crude oil prices continue to pose a risk Impending recession in the US could affect this situation further Application for Dubai and Abu Dhabi under review

27 Jet Airways fleet plan No of Aircraft Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 BOEING 737s ATR A /A330s B ER In addition, Jet has firm orders for 20 B737, 10 B787 and 10 B737 option aircraft between FY

28 JetLite (India) Limited 28

29 Fleet status In Fleet: 17 Boeing and 7CRJs As At Boeing Boeing CRJ CRJ Flying On ground Flying On ground 20/04/ /06/ /09/ /12/ /03/08 * * - Proposed 29

30 Updates - Network/ Fleet/ operations Increase in daily capacity by 16.4% seats in Q3 as compared to Q2 Increased market share from 6.9% in Q2 to 7.4% in Q3 Average seat factor for the 9 months above 70% Cost per ASK maintained at INR 3.1 despite higher fuel costs Cost per ASK w/o fuel lower by~7.5%.(unit cost reduction of 27.7% over FY 07) Reconfiguration & rebranding exercise in progress Applied for rights to operate to Gulf & Thailand; expect approvals soon 30

31 Operating parameters Q3 FY08 Traffic Parameters OCT-07 TO DEC-07 DOMESTIC INTERNATIONAL TOTAL Number of Departures 10, ,736 ASKMs Mio 1, ,471 RPKMs Mio 1, ,053 Passenger Load Factor % 71.8% 65.5% 71.6% Block Hours 19, ,976 Revenue Passengers (Million) Revenue per RPKM in INR Cost per ASKM in INR Break Even Seat Factor (%) 89.1% 60.4% 87.7% Cost per ASKM in INR w/o Fuel Break Even Seat Factor (%) w/o Fuel 45.4% 39.7% 45.2% Average Gross revenue per passenger in INR* 4,658 5,132 4,679 Average Gross revenue per passenger in USD* Average Net revenue per passenger INR* 4,218 4,626 4,236 Average Net revenue per passenger USD* Period end Fleet size Average fleet size during period Aircraft Utilisation * Average revenue per passenger includes Fuel Surcharge and Congestion Surcharge * ROE used for conversion: 1 USD = INR for FY08 31

32 Income statement Q3 FY08 Figs in INR Mio Particulars OCT-07 TO DEC-07 DOMESTIC INTERNATIONAL TOTAL INCOME Operating Revenues 4, ,280 Non Operating Revenues Total Revenues 4, ,299 IN USD Mio EXPENDITURE Employees Remuneration & Benefits Aircraft Fuel Expenses 2, ,232 Selling & Distribution Expenses Other Operating Expenses 1, ,103 Aircraft Lease Rentals Depreciation Interest Total Expenditure 4, ,160 IN USD Mio PROFIT BEFORE TAXATION (874) 14 (860.19) IN USD Mio (22.2) 0.3 (21.8) EBITDAR (128) 48 (80) IN USD Mio (3.3) 1.2 (2.0) Margin % -3% 23% -2% * ROE used for conversion: 1 USD = INR for FY08 32

33 Operating parameters April-December FY08 Traffic Parameters APR-07 TO DEC-07 DOMESTIC INTERNATIONAL TOTAL Number of Departures 28,891 1,244 30,135 ASKMs Mio 3, ,227 RPKMs Mio 2, ,011 Passenger Load Factor % 71.6% 66.1% 71.2% Block Hours 54,127 2,737 56,863 Revenue Passengers (Million) Revenue per RPKM in INR Cost per ASKM in INR Break Even Seat Factor (%) 91.8% 68.8% 90.2% Cost per ASKM in INR w/o Fuel Break Even Seat Factor (%) w/o Fuel 50.2% 46.0% 50.0% Average Gross revenue per passenger in INR* 4,460 5,513 4,517 Average Gross revenue per passenger in USD* Average Net revenue per passenger INR* 4,161 5,148 4,214 Average Net revenue per passenger USD* Period end Fleet size Average fleet size during period Aircraft Utilisation * Average revenue per passenger includes Fuel Surcharge and Congestion Surcharge * ROE used for conversion: 1 USD = INR for FY08 33

34 Income statement April-December FY08 Figs in INR Mio Particulars APR-07 TO DEC-07 DOMESTIC INTERNATIONAL TOTAL INCOME Operating Revenues 10, ,519 Non Operating Revenues Total Revenues 10, ,581 IN USD Mio EXPENDITURE Employees Remuneration & Benefits 1, ,470 Aircraft Fuel Expenses 5, ,857 Selling & Distribution Expenses 1, ,206 Other Operating Expenses 3, ,597 Aircraft Lease Rentals 1, ,028 Depreciation Interest Total Expenditure 13, ,363 IN USD Mio PROFIT BEFORE TAXATION (2,755) (28) (2,782) IN USD Mio (69.9) (0.7) (70.6) EBITDAR (697) 87 (610) IN USD Mio (17.7) 2.2 (15.5) Margin % -6% 12% -5% * ROE used for conversion: 1 USD = INR for FY08 34

35 JetLite fleet plan No of Aircraft Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 B 737 CRJ / Regional Ac 35

36 Thank You 36

37 Disclaimer Certain statements in this release concerning Jet Airways future growth prospects are forward-looking 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 forward-looking statements, including our reports to shareholders. Jet Airways does not undertake to update any forwardlooking statement that may be made from time to time by or on behalf of the company.