JET AIRWAYS (I) LTD Presentation on Financial Results Q4 FY08 June 24, 2008 1 1 1
Agenda Domestic operating environment Jet Airways performance highlights JetLite performance highlights Consolidated Jet Airways & JetLite performance Outlook 2 2 2
Domestic operating environment 3 3 3
Imbalance in demand & supply still persists. Seat Capacity in industry continued to grow at 18% in Q4 Against this, passenger growth was only 11%. Consistent increases in Fuel surcharges have led to traffic growth to taper off from highs of 40+% in FY 2007 leading to airlines selling at cheaper basic fares. Despite increases in surcharges, overall yields have been reducing Industry losses estimated ~USD 1.0 billion for FY 2008 and if current trends continue, FY 2009 losses could be ~USD 2.0 billion 4 4 4
Impact of crude oil price increases - Domestic ATF currently forms close to 45% of airline operating costs Prices have gone up ~ 100% over the last 18 months Price increases from Feb to June 2008 has resulted in an additional monthly cost burden of USD 21 mio for Jet alone Estimated fuel cost per passenger carried (Jet) is USD 85 As against this, average yield per passenger is only USD 150 Overall, the industry is losing over USD 20 per passenger This signifies close to a 20% oversupply or imbalance which has to lead to route / capacity rationalisation 5 5 5
Performance highlights Q4 FY 08 6 6 6
Financial highlights Q4 FY08 Total Revenues of INR 27.3 Billion (USD 679.7 Million) Up 37% over Q4 FY07 EBITDAR of INR 2,122 Million (USD 52.9 Million) Down 54% over Q4 FY07 Loss Before Tax of INR 3,742 Million (USD 93.3 Million) Loss After Tax of INR 2,212 Million (USD 55.1 Million) Revenue Passengers carried 3.17 Million Up 17% from 2.71 Million in Q4 FY07 Achieved Seat Factor of 70.9% Down from 72.6% in Q4 FY07 * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 7 7 7
Summary Q4 FY08 (USD Million) DOMESTIC INTERNATIONAL TOTAL Q4 08 Q4 07 Q4 08 Q4 07 Q4 08 Q4 07 Total Revenues 390.5 349.6 289.2 108.0 679.7 457.6 Of which Op. Revs 398.8 347.2 289.1 107.9 687.9 455.1 Total Expenditure 418.1 322.4 354.9 107.2 773.0 429.6 Of which Fuel 132.0 92.3 137.2 34.5 269.2 126.8 (Loss)/Profit before Tax (27.6) 27.2 (65.6) 0.7 (93.3) 27.9 (Loss)/Profit after Tax 10.5 19.5 (65.6) 0.7 (55.1) 20.3 EBITDAR 48.3 83.7 4.6 22.1 52.9 105.8 Margin % 12.1% 24.1% 1.6% 20.5% 7.7% 23.2% * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 8 8 8
Key events Addition of 6 aircraft to fleet (2 B777, 1 A330 and 3 B737) Launched Flights to Gulf in January Kuwait from Delhi/ Kochi Bahrain from Mumbai/ Kochi Muscat from Kozhikode/ Kochi Doha from Mumbai/ Kozhikode Announced codeshare with Air Canada effective February 9 9 9
Company operating parameters Q4 Traffic Parameters Jan 08-Mar 08 Jan 07-Mar 07 Variance % Number of Departures 34,004 29,776 14.2% ASKMs Mio 7,684 4,679 64.2% RPKMs Mio 5,452 3,396 60.5% Passenger Load Factor % 70.9% 72.6% -1.7 points Block Hours 77,284 57,915 33.4% Revenue Passengers (Million) 3.17 2.71 17.0% Revenue per RPKM in INR 4.19 4.73-11.5% Cost per ASKM in INR 3.46 3.17 9.0% Break Even Seat Factor (%) 82.6% 67.1% 15.5 points Cost per ASKM in INR w/o Fuel 2.05 1.99 2.8% Break Even Seat Factor (%) w/o Fuel 49.0% 42.2% 6.8 points Average Gross revenue per passenger in INR* 7,768 6,445 20.5% Average Gross revenue per passenger in USD* 193.6 148.3 30.6% Period end Fleet size 81 62 30.6% Average fleet size during period 78.8 60.7 29.9% Average Head Count Gross 12,777 10,590 20.6% Aircraft Utilisation 10.9 10.7 2.4% * Average revenue per passenger includes Fuel Surcharge and Congestion Surcharge * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 10 10 10
Company P&L Q4 INR Million INR Million Jan 08-Mar 08 Jan 07-Mar 07 Variance % INCOME Operating Revenues 27,599 19,783 39.5% Non Operating Revenues (329) 108-405.2% Total Revenues 27,270 19,890 37.1% IN USD Mio 679.7 457.6 EXPENDITURE Employees Remuneration & Benefits 3,528 2,583 36.6% Aircraft Fuel Expenses 10,802 5,511 96.0% Selling & Distribution Expenses 2,761 2,362 16.9% Other Operating Expenses 8,386 4,728 77.4% Aircraft Lease Rentals 1,483 1,752-15.4% Depreciation 2,503 1,210 106.9% Interest 1,549 530 192.3% Total Expenditure 31,012 18,676 66.1% IN USD Mio 773.0 429.6 (LOSS)/PROFIT BEFORE TAXATION (3,742) 1,215-408.1% IN USD Mio (93.3) 27.9 Provision for taxation (1,530) 334-557.7% (LOSS)/PROFIT AFTER TAXATION (2,212) 880-351.2% IN USD Mio (55.1) 20.3 EBITDAR 2,122 4,599-53.9% IN USD Mio 52.9 105.8 Margin % 7.7% 23.2% 11 11 * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 11
A. Domestic operations 12 12 12
Domestic operating parameters Q4 Traffic Parameters Jan 08-Mar 08 Jan 07-Mar 07 Variance % Number of Departures 29,070 27,717 4.9% ASKMs Mio 2,997 2,985 0.4% RPKMs Mio 2,218 2,098 5.7% Passenger Load Factor % 74.0% 70.3% 3.7 points Block Hours 50,160 46,612 7.6% Revenue Passengers (Million) 2.54 2.43 4.6% Revenue per RPKM in INR 6.01 5.79 3.7% Cost per ASKM in INR 4.82 3.68 31.0% Break Even Seat Factor (%) 80.2% 63.5% 16.7 points Average Gross revenue per passenger in INR* 5,614 5,455 2.9% Average Gross revenue per passenger in USD* 139.9 125.5 11.5% * Average revenue per passenger includes Fuel Surcharge and Congestion Surcharge * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 13 13 13
Domestic P & L Q4 INR Million INR Million Jan 08-Mar 08 Jan 07-Mar 07 Variance % INCOME Operating Revenues 16,001 15,094 6.0% Non Operating Revenues (335) 104-423.1% Total Revenues 15,666 15,198 3.1% IN USD Mio 390.5 349.6 EXPENDITURE Employees Remuneration & Benefits 2,094 2,200-4.8% Aircraft Fuel Expenses 5,297 4,013 32.0% Selling & Distribution Expenses 1,962 1,987-1.3% Other Operating Expenses 4,711 3,255 44.7% Aircraft Lease Rentals 1,149 1,056 8.8% Depreciation 1,119 1,013 10.4% Interest 443 490-9.6% Total Expenditure 16,774 14,014 19.7% IN USD Mio 418.1 322.4 (LOSS)/PROFIT BEFORE TAXATION (1,108) 1,183-193.7% IN USD Mio (27.6) 27.2 EBITDAR 1,937 3,639-46.8% IN USD Mio 48.3 83.7 Margin % 12.1% 24.1% 14 * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 14 14
Key performance drivers Revenue impacted by Gross yield (including YQ) in Q4 FY08 higher by 2.9 % over Q4 FY07 Seat factor at 74.0% in Q4 FY08 vs 70.3% in Q4 FY07 Passenger numbers higher by 4.6% in Q4 FY08 vs Q4 FY07 Fuel prices up in Q4 Fuel rates were higher by 30% compared to Q4 FY07 and 7.4% higher than Q3 FY08 Provision for MTM (Mark to Market) on derivative transactions impacted results to the extend of INR 690.1 mio (USD 17.2 million) and foreign exchange losses were INR 110.6 mio (USD 2.8 million) for the quarter 15 15 15
B. International operations 16 16 16
International operating parameters Q4 Traffic Parameters Jan 08-Mar 08 Jan 07-Mar 07 Variance % Number of Departures 4,934 2,059 139.6% ASKMs Mio 4,687 1,694 176.7% RPKMs Mio 3,234 1,298 149.2% Passenger Load Factor % 69.0% 76.6% -7.6 points Block Hours 27,124 11,303 140.0% Revenue Passengers (Million) 0.63 0.28 126.3% Revenue per RPKM in INR 2.94 3.01-2.3% Cost per ASKM in INR 2.59 2.28 13.3% Break Even Seat Factor (%) 88.1% 76.0% 12.1 points Average Gross revenue per passenger in INR* 16,483 15,118 9.0% Average Gross revenue per passenger in USD* 410.9 347.8 18.1% * Average revenue per passenger includes Fuel Surcharge * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 17 17 17
International P & L Q4 INR Million INR Million Jan 08-Mar 08 Jan 07-Mar 07 Variance % INCOME Operating Revenues 11,598 4,689 147.4% Non Operating Revenues 6 4 Total Revenues 11,605 4,693 147.3% IN USD Mio 289.2 108.0 EXPENDITURE Employees Remuneration & Benefits 1,433 383 274.7% Aircraft Fuel Expenses 5,505 1,498 267.5% Selling & Distribution Expenses 799 374 113.5% Other Operating Expenses 3,675 1,473 149.5% Aircraft Lease Rentals 334 697-52.1% Depreciation 1,384 196 605.1% Interest 1,106 40 2668.8% Total Expenditure 14,238 4,661 205.5% IN USD Mio 354.9 107.2 (LOSS)/PROFIT BEFORE TAXATION (2,633) 31-8487.3% IN USD Mio (65.6) 0.7 EBITDAR 185 960-80.8% IN USD Mio 4.6 22.1 Margin % 1.6% 20.5% 18 * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 18 18
One time/ extraordinary impact (International) Impact of aircraft on ground of wide-body aircraft for the period Jan to Mar 08 amounted to ~ USD 6 million Impact of higher composition of expats vs Indian pilots and also deployment of expats as first officers instead senior commanders (P1/P2) USD 9 million Route launch expenses USD 1.5 million 19 19 19
Performance highlights FY 2008 20 20 20
Summary FY 08 (USD Million) DOMESTIC INTERNATIONAL TOTAL FY 2008 FY 2007 FY 2008 FY 2007 FY 2008 FY 2007 Total Revenues 1,602.9 1,390.3 760.4 312.3 2,363.3 1,702.6 Of which Op. rev 1,436.5 1,311.3 759.7 312.3 2,196.2 1,623.6 Total Expenditure 1,561.4 1,334.6 904.7 356.2 2,466.1 1,690.8 Of which Fuel 489.7 434.3 331.1 124.2 820.8 558.5 (Loss)/Profit before Tax 41.5 55.7 (144.3) (43.9) (102.8) 11.8 PBT (excl. Sale & Lease back) (37.0) 7.4 (144.3) (43.9) (181.3) (36.5) (Loss)/Profit after Tax 81.3 50.3 (144.3) (43.9) (63.1) 6.4 EBITDAR 147.5 209.3 39.7 22.6 187.1 231.9 Margin % 10.3% 16.0% 5.2% 7.2% 8.5% 14.3% * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 PBT and PAT figures for FY08 and FY07 includes profit from sale- leaseback of USD 78.5 million and USD 48.3 million respectively EBITDAR excludes profit from sale- leaseback 21 21 21
Company operating parameters FY08 Traffic Parameters Apr 07-Mar 08 Apr 06-Mar 07 Variance % Number of Departures 126,676 119,369 6.1% ASKMs Mio 24,447 17,698 38.1% RPKMs Mio 16,914 12,307 37.4% Passenger Load Factor % 69.2% 69.5% -0.3 points Block Hours 267,513 227,149 17.8% Revenue Passengers (Million) 11.43 10.73 6.5% Revenue per RPKM in INR 4.40 4.82-8.9% Cost per ASKM in INR 3.34 3.44-3.1% Break Even Seat Factor (%) 76.0% 71.4% 4.6 points Cost per ASKM in INR w/o Fuel 1.99 2.07-3.9% Break Even Seat Factor (%) w/o Fuel 45.3% 43.0% 2.3 points Average Gross revenue per passenger in INR* 7,002 6,002 16.7% Average Gross revenue per passenger in USD* 174.5 138.1 26.4% Period end Fleet size 81 62 30.6% Average fleet size during period 66.3 56.1 18.3% Average Head Count Gross 11,750 9,614 22.2% Aircraft Utilisation 10.8 11.0-1.5% * Average revenue per passenger includes Fuel Surcharge and Congestion Surcharge * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 22 22 22
Company P & L FY08 INR Million INR Million Apr 07-Mar 08 Apr 06-Mar 07 Variance % INCOME Operating Revenues 88,111 70,578 24.8% Non Operating Revenues 6,704 3,435 95.1% Total Revenues 94,815 74,013 28.1% IN USD Mio 2,363.3 1,702.6 EXPENDITURE Employees Remuneration & Benefits 12,052 9,381 28.5% Aircraft Fuel Expenses 32,930 24,276 35.6% Selling & Distribution Expenses 9,829 8,008 22.7% Other Operating Expenses 25,792 18,833 37.0% Aircraft Lease Rentals 5,633 6,458-12.8% Depreciation 7,778 4,141 87.8% Interest 4,927 2,402 105.2% Total Expenditure 98,941 73,499 34.6% IN USD Mio 2,466.1 1,690.8 (LOSS)/PROFIT BEFORE TAXATION (4,126) 514-902.9% IN USD Mio (102.8) 11.8 IN USD Mio (excl Profit on sale of aircraft) (181.3) (36.5) Provision for taxation (1,595) 234-781.2% (LOSS)/PROFIT AFTER TAXATION (2,531) 280-1004.8% IN USD Mio (63.1) 6.4 EBITDAR 7,508 10,079-25.5% IN USD Mio 187.1 231.9 Margin % 8.5% 14.3% 23 * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 23 23
A. Domestic operations 24 24 24
Domestic operating parameters FY08 Traffic Parameters Apr 07-Mar 08 Apr 06-Mar 07 Variance % Number of Departures 113,900 112,759 1.0% ASKMs Mio 12,073 12,155-0.7% RPKMs Mio 8,565 8,538 0.3% Passenger Load Factor % 70.9% 70.2% 0.7 points Block Hours 194,916 190,911 2.1% Revenue Passengers (Million) 9.79 9.90-1.2% Revenue per RPKM in INR 5.78 5.66 2.2% Cost per ASKM in INR 4.22 3.95 7.0% Break Even Seat Factor (%) 73.1% 69.8% 3.3 points Average Gross revenue per passenger in INR* 5,403 5,295 2.0% Average Gross revenue per passenger in USD* 134.7 121.8 10.6% * Average revenue per passenger includes Fuel Surcharge and Congestion Surcharge * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 25 25 25
Domestic P & L FY08 INR Million INR Million Apr 07-Mar 08 Apr 06-Mar 07 Variance % INCOME Operating Revenues 57,631 57,004 1.1% Non Operating Revenues 6,676 3,431 94.6% Total Revenues 64,308 60,435 6.4% IN USD Mio 1,602.88 1,390.3 EXPENDITURE Employees Remuneration & Benefits 9,169 8,194 11.9% Aircraft Fuel Expenses 19,648 18,878 4.1% Selling & Distribution Expenses 6,974 6,894 1.2% Other Operating Expenses 15,924 13,942 14.2% Aircraft Lease Rentals 3,977 4,041-1.6% Depreciation 4,342 3,707 17.1% Interest 2,609 2,358 10.6% Total Expenditure 62,642 58,013 8.0% IN USD Mio 1,561.4 1,334.6 (LOSS)/PROFIT BEFORE TAXATION 1,665 2,422-31.3% IN USD Mio 41.5 55.7 IN USD Mio (excl Profit on sale of aircraft) (37.0) 7.4-599.5% EBITDAR 5,917 9,096-35.0% IN USD Mio 147.5 209.3 Margin % 10.3% 16.0% 26 * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 26 26
B. International operations 27 27 27
International operating parameters FY08 Traffic Parameters Apr 07-Mar 08 Apr 06-Mar 07 Variance % Number of Departures 12,776 6,610 93.3% ASKMs Mio 12,374 5,543 123.2% RPKMs Mio 8,350 3,770 121.5% Passenger Load Factor % 67.5% 68.0% -0.5 points Block Hours 72,598 36,238 100.3% Revenue Passengers (Million) 1.64 0.83 98.8% Revenue per RPKM in INR 2.98 2.94 1.2% Cost per ASKM in INR 2.48 2.35 5.6% Break Even Seat Factor (%) 83.2% 79.7% 3.5 points Average Gross revenue per passenger in INR* 16,536 14,476 14.2% Average Gross revenue per passenger in USD* 412.2 333.0 23.8% * Average revenue per passenger includes Fuel Surcharge * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 28 28 28
International P & L FY08 INR Million INR Million Apr 07-Mar 08 Apr 06-Mar 07 Variance % INCOME Operating Revenues 30,480 13,574 124.5% Non Operating Revenues 28 4 Total Revenues 30,507 13,578 124.7% IN USD Mio 760.4 312.3 EXPENDITURE Employees Remuneration & Benefits 2,883 1,187 142.8% Aircraft Fuel Expenses 13,282 5,398 146.0% Selling & Distribution Expenses 2,855 1,115 156.1% Other Operating Expenses 9,868 4,890 101.8% Aircraft Lease Rentals 1,656 2,417-31.5% Depreciation 3,436 434 691.2% Interest 2,318 44 Total Expenditure 36,299 15,486 134.4% IN USD Mio 904.7 356.2 (LOSS)/PROFIT BEFORE TAXATION (5,791) (1,908) -203.5% IN USD Mio (144.3) (43.9) EBITDAR 1,591 983 61.9% IN USD Mio 39.7 22.6 Margin % 5.2% 7.2% * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 29 29 29
Summary balance sheet Jet Airways INR Million As on 31-Mar-08 INR Million As on 31-Mar-07 I SOURCES OF FUNDS Shareholders' Funds 45,517 22,373 Loan Funds 116,025 60,563 Deferred payments towards Jet Lite Investments 4,125 - Deferred Tax Liability 1,602 3,311 TOTAL SOURCES OF FUNDS 167,269 86,246 In USD Million 4,169.2 1,984.0 II. APPLICATION OF FUNDS Net Fixed Assets: 153,075 72,920 Investments 14,754 689 Current Assets, Loans & Advances 35,394 33,645 Less: Current Liabilities & Provisions 35,953 21,008 Net Current Assets (559) 12,637 TOTAL APPLICATION OF FUNDS 167,269 86,246 In USD Million 4,169.2 1,984.0 30 * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 30 30
Ongoing initiatives 31 31 31
Ongoing initiatives Network expansion Launched flights to Hong Kong via Mumbai on 14 April Daily flights to Abu Dhabi from Mumbai and Delhi eff. 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 from June 14 Rights to operate to Dubai expected shortly 32 32 32
Increased B737 utilisation Additional flights to the Gulf have helped increased aircraft utilisation on the B737 from 10.1 hours to 10.5 hours. By August 08 full network rationalisation will be in place & this will increase aircraft utilisation to ~ 11 hours. These routes are being operated with existing aircraft which are used for domestic operations New routes started are as under: Kochi Doha v.v.(april 18, 2008), Mumbai - Muscat v.v.(april 21, 2008) Mumbai Abu Dhabi v.v.(april 23, 2008) Delhi Abu Dhabi (April 23, 2008) 33 33 33
Corporate Sales update and front cabin loads Corporate Sales units have been established in USA, UK, Benelux, India, HKG and SIN. Over 2,500 corporate deals in place of which ~ 600 are for international. First class seat factors on International routes are up from 27% in January to 40% in May Business class loads continue to be around 50% largely because of new flights to the Gulf which we began from Jan 2008 34 34 34
JetLite (India) Limited 35
Operational Highlights Increased daily capacity by 6.7% seats in FY 08 vs. to FY 07 in domestic operation. Market share up from 6.9% in Q1 to 7.2% in Q4 (Current Market Share is 8.6%) Average seat factor for the FY 08 is 70.8% vs 67.5% previous year Loss before tax of Rs. 4,396 million in FY 08 vs Rs. 6,877 million in FY 07 Revenue per RPK in FY 08 is INR 3.4 vs INR 4.6 in FY 07 Cost per ASK (CASK) in FY 08 is INR 3.2 vs INR 4.3 in FY 07 despite higher fuel costs CASK w/o fuel down ~40% vs pervious year (Rs. 1.72 in FY 08 vs Rs. 2.85 in FY 07) Unit cost reduction of 26% over FY 07 Aircraft utilization increased by 9% over FY 07 Head count lower by 31% over FY 07 36
Operating parameters Q4 FY08 Traffic Parameters JAN-08 TO MAR-08 DOMESTIC INTERNATIONAL TOTAL Number of Departures 9,929 359 10,288 ASKMs Mio 1,390 47 1,437 RPKMs Mio 968 31 998 Passenger Load Factor % 69.6% 65.0% 69.5% Block Hours 19,104 567 19,671 Revenue Passengers (Million) 0.80 0.04 0.84 Revenue per RPKM in INR 3.11 5.69 3.19 Cost per ASKM in INR 3.33 3.63 3.34 Break Even Seat Factor (%) 106.8% 63.9% 104.5% Cost per ASKM in INR w/o Fuel 1.70 2.44 1.73 Break Even Seat Factor (%) w/o Fuel 54.7% 42.8% 54.1% Average Gross revenue per passenger in INR* 4,334 4,590 4,348 Average Gross revenue per passenger in USD* 108 114 108 Average Net revenue per passenger INR* 3,776 4,353 3,803 Average Net revenue per passenger USD* 94 109 95 Period end Fleet size 23 1 24 Average fleet size during period 19 1 20 Aircraft Utilisation 9.0 8.9 9.0 Head Count 2,561 * Average revenue per passenger includes Fuel Surcharge and Congestion Surcharge * ROE used for conversion: 1 USD = INR 40.12 for FY08 37
Income statement Q4 FY08 Particulars Figs in INR Mio JAN-08 TO MAR-08 DOMESTIC INTERNATIONAL TOTAL INCOME Operating Revenues 3,619 190 3,809 Non Operating Revenues 63 2 65 Total Revenues 3,682 192 3,874 IN USD Mio 91.8 4.8 96.6 EXPENDITURE Employees Remuneration & Benefits 483 16 500 Aircraft Fuel Expenses 2,256 57 2,313 Selling & Distribution Expenses 600 17 617 Other Operating Expenses 1,160 51 1,211 Aircraft Lease Rentals 669 44 713 Depreciation (4) (0) (4) Interest 151 5 156 Total Expenditure 5,316 190 5,506 IN USD Mio 132.5 4.7 137.2 PROFIT BEFORE TAXATION (1,635) 2 (1,633) IN USD Mio (40.7) 0.1 (40.7) EBITDAR (881) 49 (832) IN USD Mio (22.0) 1.2 (20.7) Margin % -24% 26% -22% Helicopter depreciation of whole year written back in Q4 ROE used for conversion: 1 USD = INR 40.12 for FY08 38
Operating parameters FY08 Traffic Parameters FY 08 FY 07 Variance % Number of Departures 40,423 41,154-2% ASKMs Mio 5,664 5,816-3% RPKMs Mio 4,009 3,926 2% Passenger Load Factor % 70.8% 67.5% 3.3 points Block Hours 76,534 79,353-4% Revenue Passengers (Million) 3.30 3.18 4% Revenue per RPKM in INR 3.38 4.62-27% Cost per ASKM in INR 3.16 4.28-26% Break Even Seat Factor (%) 93.5% 92.5% 1.1 point Cost per ASKM in INR w/o Fuel 1.72 2.85-40% Break Even Seat Factor (%) w/o Fuel 50.8% 61.7% -10.8 points Average Gross revenue per passenger in INR* 4,341 6,010-28% Average Gross revenue per passenger in USD* 108 138-22% Average Net revenue per passenger INR* 4,110 5,703-28% Average Net revenue per passenger USD* 102 131-22% Period end Fleet size 24 27-11% Average fleet size during period 19 22-16% Aircraft Utilisation 8.7 8.1 9% Head Count 2,561 3,712-31% * Average revenue per passenger includes Fuel Surcharge and Congestion Surcharge * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 39
Income statement FY08 Particulars FY 08 FY 07 Figs in INR Mio Variance % INCOME Operating Revenues 14,891 19,966-25% Non Operating Revenues 165 181-9% Total Revenues 15,055 20,147-25% IN USD Mio 375.3 463.5 EXPENDITURE Employees Remuneration & Benefits 1,969 2,520-22% Aircraft Fuel Expenses 8,170 8,291-1% Selling & Distribution Expenses 1,386 2,250-38% Other Operating Expenses 4,823 9,714-50% Aircraft Lease Rentals 2,742 3,728-26% Depreciation 57 109-47% Interest 304 413-26% Total Expenditure 19,451 27,025-28% IN USD Mio 484.8 621.7 PROFIT BEFORE TAXATION (4,396) (6,877) -36% IN USD Mio (109.6) (158.2) IN USD Mio (excl Profit on sale of aircraft) Provision for taxation Current Tax 0 0 Fringe Benefit Tax 19 19 PROFIT AFTER TAXATION (4,415) (6,897) -36% IN USD Mio (110.0) (158.7) EBITDAR (1,457) (2,809) -48% IN USD Mio (36.3) (64.6) M argin % -10% -14% 4 points * FY 07 Pax revenue include the Support of Rs. 4,000 million from Sahara Group. * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 40
Balance Sheet FY08 INR Million As on 31-Mar-08 INR Million As on 31-Mar-07 I SOURCES OF FUNDS Shareholders' Funds 6,608 6,608 Subordinated Debt 4,012 - Loan Funds 4,259 3,833 TOTAL SOURCES OF FUNDS 14,878 10,440 In USD Million 370.8 240.2 II. APPLICATION OF FUNDS Net Fixed Assets: 1,500 1,154 Investments 8 8 Deferred Tax Asset 624 624 Current Assets, Loans & Advances 5,005 5,081 Less: Current Liabilities & Provisions 6,103 5,856 Net Current Assets (1,098) (775) Profit & Loss Account 13,844 9,429 TOTAL APPLICATION OF FUNDS 14,878 10,440 In USD Million 370.8 240.2 * ROE used for conversion: 1 USD = INR 40.12 for FY08 and 1 USD = INR 43.47 for FY07 41
Consolidated Performance FY 2008 42 42 42
Consolidated P&L for FY 2008 Apr 07-Mar 08 INR Million INCOME Operating Revenues 102,456 Non Operating Revenues 6,757 Total Revenues 109,213 IN USD Mio 2,722 EXPENDITURE Employees Remuneration & Benefits 13,888 Aircraft Fuel Expenses 40,700 Selling & Distribution Expenses 11,137 Other Operating Expenses 30,144 Aircraft Lease Rentals 8,216 Depreciation 8,018 Interest 5,225 Total Expenditure 117,328 IN USD Mio 2,924 (LOSS)/PROFIT BEFORE TAXATION (8,115) IN USD Mio (202.3) IN USD Mio (excl Profit on sale of aircraft) (280.8) Provision for taxation (1,576.5) (LOSS)/PROFIT AFTER TAXATION (6,539) IN USD Mio (163.0) EBITDAR 6,586 IN USD Mio 164.2 Margin % 6.4% 43 43 * ROE used for conversion: 1 USD = INR 40.12 for FY08 43
Consolidated Balance Sheet INR Million As on 31-Mar-08 I SOURCES OF FUNDS Shareholders' Funds 43,427 Subordinated Debt 4,012 Loan Funds 118,484 Deferred payments towards Jet Lite Investments 4,125 Deferred Tax Liability 1,603 TOTAL SOURCES OF FUNDS 171,651 In USD Million 4,278.4 II. APPLICATION OF FUNDS Net Fixed Assets: 173,077 Investments 111 Current Assets, Loans & Advances 37,953 Less: Current Liabilities & Provisions 41,410 Net Current Assets (3,457) Profit & Loss Account 1,919 TOTAL APPLICATION OF FUNDS 171,651 In USD Million 4,278.4 44 44 * ROE used for conversion: 1 USD = INR 40.12 for FY08 44
Outlook 45 45 45
Outlook Q1 trends for passengers and yields will reflect low seasonality Recent implementation of Minimum fare levels by Jet would ease pressure on yields Fuel surcharge increased in June. Current YQ for domestic: INR 2,250 for sector distance =<750 kms INR 2,900 for distance > 750 kms Jet intends to implement Zero commission structure by Oct 08 Oil prices will necessitate some capacity right sizing in the industry 46 46 46
Thank You 47 47 47
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 forward-looking statement that may be made from time to time by or on behalf of the company. 48 48 48