TOKYO MEETINGS NOVEMBER 2016

Transcription

1 TOKYO MEETINGS NOVEMBER 2016

2 CONTENTS AEROMEXICO AT A GLANCE BUILDING A STRONG AND FLEXIBLE AIRLINE STRATEGIC INITIATIVES 2

3 AEROMEXICO: MEXICO S PREMIUM NETWORK CARRIER. Mexico s only full service carrier, offering customers up to a three-class service. Operating a hub and spoke network model with main hub in Mexico City. Global Airline. Only Mexican carrier flying to long-haul markets in Europe, Asia and South America. Over 80 destinations in more than 20 countries, above 610 daily flights million passengers transported in last twelve months. Founding member of SkyTeam. Enhanced strategic alliance with Delta Air Lines. Coalition Loyalty Program. 3

4 THE MEXICAN MARKET: STRONG AND GROWING Growth Opportunities for Mexican Economy (1) Air Traffic Penetration (2) Expected GDP Annual Percentage Change Mexico Latin America and the Caribbean Brazil Flights Per Capita for Middle & Upper Class Population Mexico Brazil Europe US Favorable Demographics Growing Middle Class (3) Favorable Demographic Trends (4) Sources: (1) IMF October 2016, World Economic Outlook for other markets (2) Morgan Stanley Research FY (3) INEGI (4) CONAPO Middle Class (2010 Demographics in Million) (2050 Demographics in Million) mm 70 mm Men Women 4

5 THE MEXICAN MARKET: STRONG AND GROWING LTM Domestic Market Share LTM International Market Share 2.2% 1.3% 1.8% 13.0% 13.5% 31.9% 34.8% 16.7% 12.4% 27.1% 22.3% 4.7% 3.9% 7.1% 7.3% LTM Domestic Passenger Growth Millions of Passengers % 12.9 LTM International Passenger Growth Millions of Passengers % 6.5 LTM LTM15-16 LTM LTM Source: Traffic Report YTD September 2016 (Passenger Information, includes Charter operations). Source: DGAC, Statistical Report 2016.

6 THE MEXICAN MARKET: FINANCIAL RESULTS 3Q 2016 Total Revenues Millions of Pesos 12, % 14,472 Operating Margin Millions of Pesos 1.1 Pts. 10.2% 9.1% YTD15 YTD16 YTD15 YTD16 1,127 Operating Profit Millions of Pesos 1,478 EBITDAR & EBITDAR Margin Millions of Pesos 3, % 4, % +31.1% +26.8% YTD15 YTD16 YTD15 YTD16 6 Source: Grupo Aeromexico Quarterly Results YTD September 2016

7 THE MEXICAN MARKET: FINANCIAL RESULTS YTD SEPTEMBER Total Revenues Millions of Pesos 34, % 38,901 Operating Margin Millions of Pesos 0.5 Pts. 6.4% 5.9% YTD15 YTD16 YTD15 YTD16 2,025 Operating Profit Millions of Pesos 2,505 EBITDAR & EBITDAR Margin Millions of Pesos 8, % 10, % +23.7% +23.6% YTD15 YTD16 YTD15 YTD16 7 Source: Grupo Aeromexico Quarterly Results YTD September 2016

8 CONTENTS AEROMEXICO AT A GLANCE BUILDING A STRONG AND FLEXIBLE AIRLINE STRATEGIC INITIATIVES 8

9 BUILDING A STRONG AND FLEXIBLE AIRLINE: ENHANCING CONNECTIVITY Enhanced international network to connect within Mexico and Mexico with the World. 19 USA & Canada 4 Europe 2 Asia 8 Central America & Caribbean 85 Destinations: 45 domestic and 40 international 7 South America 9

10 BUILDING A STRONG AND FLEXIBLE AIRLINE: ENHANCED CONECTIVITY Aeromexico has developed AICM as one of the best global hubs. Global Airport Country Index 1 ATL USA ORD USA DFW USA CLT USA IAH USA DTW USA CGH Brazil DEN USA MEX Mexico PHX USA 778 Conectivity Index, OAG Latin America CGH MEX GRU BOG BSB Índice Index 2010 Índice Index 2015 Connectivity Index per Airline, ANNA AM Destinations Aeromexico (MEX) Copa (PTY) Azul (VCP) Avianca (BOG) TAM (GRU) GOL (GRU) 10 Source: OAG 2016 Connectivity Index (calculated as ( possible connections / number of destinations served ) ANNA ( Airline Network News Analysis) 2015: (number of destinations served by the airline Hub).

11 BUILDING A STRONG AND FLEXIBLE AIRLINE: REVENUE DIVERSIFICATION Diversification of revenue streams to reduce risk Income Millions of pesos International / Domestic Passengers Millions of PAX transported 25,263 55% 6,506 33% 5,557 12,159 31% 69% 20,222 45% 2,250 7,317 24% 76% 12,898 67% 2005 LTM LTM

12 BUILDING A STRONG AND FLEXIBLE AIRLINE: COST PRODUCTIVITY Aeromexico is the most cost efficient full service carrier in the Americas. Airlines in Americas, CASK Stage Length Adjusted LTM 9.81 Low Cost Carriers Full Service Carriers LATAM, AVIANCA and COPA updated up to LTM June Information from 2016 Quarterly Financial Reports. Includes profit sharing expense and fuel hedge losses. Adjusted Stage miles. Exchange Rate: Considers GAM s average exchange rate for the period (18.74).

13 BUILDING A STRONG AND FLEXIBLE AIRLINE: FLEET STRATEGY DRIVING EFFICIENCY Fleet substitution as key element to achieve cost efficiency while improving passenger experience Years Americas Mean: Average Fleet Age Europe Mean: Mexican Industry Aircraft Orders 100 New Boeing Aircraft Order Up to: 90 B737 MAX Up to: 10 B Americas Europe Rest of Domestic Industry +160 New Aircraft Order (1) DGAC 2015 for Mexican fleet, (2) Source for International Airlines: (2) Ascend and public information from each airline. Public orders announced since Fleet scheduled to arrive from 2012 through

14 BUILDING A STRONG AND FLEXIBLE AIRLINE: FLEET STRATEGY DRIVING EFFICIENCY Today/Seats E-145 E-170/175/ s/800 s NG 787 s 777 s 50 73/81/99 124/ / Fleet Plan Long term E-170/ s NG/MAX 787 s +51% Seat Count 75% of 2015 operations in Mexico City were performed with regional jets (E145/170/190) and Source: Aeromexico estimates as of March Considering total fleet long term (1) B767-2 and B787 data for: Mex-Mad. B737-7 and B737-8 / ERJ145, ERJ190 and ERJ170 data for Mex-Mty. (2) Fleet proportion of leased vs. owned depends on fleet value. (3) on July 2013, Aeromexico announced the pricing of an offering of USD$117.4 million of 2.537% secured notes guaranteed by the Export-Import Bank of the United States. Estimated CASK Reduction (1) ERJ145 EJ170 & E190 B737-7 B737-8 B767 B (17%) (20%) (22%) 80 (10%) 72 E145 E170 E190 B737-7 B737-8 B767 B787 Leased vs. Owned Moving towards a more balanced split of owned vs leased aircraft through our long term fleet plan. Market conditions offer several opportunities to increase business with lessors. Annual Cost of Financing 10%-12% Leased 4% to 6% (2) Owned Leased: (76%) USD $2.8 bn 83 Owned: (24%) USD 900mm 78 Fleet Value (3) USD $106M USD $213M cost savings due to ownership 14

15 BUILDING A STRONG AND FLEXIBLE AIRLINE: FLEET STRATEGY DRIVING EFFICIENCY Fleet type Model 4Q15 2Q16 3Q16 4Q16E E E-170/175/ Regional Narrow Body B B B Wide Body Total Source: Grupo Aeromexico. Fleet

16 BUILDING A STRONG AND FLEXIBLE AIRLINE: RISK MANAGEMENT Reducing exposure to external factors, building flexibility in our fleet plan. 300 Aircraft Economic Cycle Exchange Rate Exposure Revenues Aircraft Staggered Leases Fleet plan flexibility Year MXN 40% MXN 32% Costs USD 60% USD 68% Reduced risk from exchange rate fluctuations. Fleet Total Regional Total Narrow Body Total Wide Body Total GAM Total Source: Grupo Aeromexico. Fleet Fuel Hedging Strategy Over 50% of expected fuel consumption for the next 12 months is hedged with call options and call spreads. Fuel surcharges complement Grupo Aeromexico s hedging strategy. 16

17 BUILDING A STRONG AND FLEXIBLE AIRLINE: BEST PEOPLE Focus on productivity Global management team that combines experience of international airlines Best crew and customer service teams in the Mexican industry Attracting and developing talent Safety and security has and will continue to be our top priority 17

18 CONTENTS AEROMEXICO AT A GLANCE BUILDING A STRONG AND FLEXIBLE AIRLINE STRATEGIC INITIATIVES 18

19 STRATEGIC INITIATIVES : DELTA PARTNERSHIP ENHANCEMENT Delta intends to increase equity stake in Grupo Aeromexico to up to 49% through a cash tender offer at MXP per share. POTENTIAL JOINT NETWORK FOR MEXICO US TRANSBORDER MARKET Santo Domingo AM and DL have obtained Mexican Competition Authorities (COFECE) approval for antitrust immunity for a new joint venture on flights between the US and Mexico. The transaction is expected to complete, subject to DOT approval, in the second half of This joint venture would provide an enhanced customer proposition, deeper schedules and enhanced network possibilities for travelers, differentiating Delta and Aeromexico from other airlines in the market. 19

20 STRATEGIC INITIATIVES: ANCILLARY REVENUES Website Cobranded Cards New website User-friendly environment, driving propensity for online booking and interaction with Aeromexico. App New App Personalized, protected access to facilitate booking and provide targeted marketing. Renewed Upgrades to Clase Premier New product Seat Selection Kiosks New check-in kiosks Better customer service- 50% faster check-in, enhanced passports and visa scanning functionality 20

21 STRATEGIC INITIATIVES: NEW MEXICO CITY AIRPORT Strategic opportunity for Mexico to create and develop the best global hub in Latin America. Designed by award winning architect, Norman Foster, who was also architect for Hong Kong and Beijing International Airports, amongst other globally recognizable buildings. Enhanced processes to optimize connectivity and promote NAICM as the hub of a global flagship airline: Aeroméxico. 21

22 STRATEGIC INITIATIVES: PRODUCT RECOGNITION & CORPORATE RESPONSIBILITY Product Recognition Social Responsibility Initiatives Mexico & Central America Leading Airline, PAX International Readership Awards, Airline Alliance of the Year, Best Airline in Mexico, Best Domestic Airline, Source: Grupo Aeromexico

23 THANK YOU FOR JOINING US TODAY. 23