Corporate Presentation June 2016
Quality & Award winning airline Full Service Carrier Focus on quality, efficiency, productivity Young fleet of 61 Aircraft 47 Airbus A320 family 14 Bombardier Star alliance member Award winning airline 6x skytrax best regional award 12,000 10,000 8,000 6,000 4,000 2,000 0 Traffic in RPKs (m) 5x 04 05 06 07 08 09 10 11 12 13 14 15 1999 Launched operations 1999 2001 2 local acquisitions 2002 First international routes launched 2006 2007 27 Airbus order 2008 Largest Greek airline 2010 Star alliance member 2011 Becoming single type jet operator 2013 Acquisition of Olympic Air 2014 7 Airbus order 2
Using synergies to expand Passengers (m) Fleet 58 61 6.1 8.8 10.1 11.6 2x Turboprop Airbus 30 45 50 +17 jet 2012 2013 2014 2015 Domestic International 2012 2013 2014 2015 2016 ASKs +60% Network Destinations 104 119 134 65 2x 9,139 10,732 12,194 14,668 3 2012 2013 2014 2015 2012 2013 2014 2015
2013 2016: Fleet Expansion 42 New Aircraft between 2007 and 2016 16 New A/C deliveries 3 10 6 4 3 2007 2008 2009 2010 2015 2016 Total Fleet (A/C) 45 50 58 61 4 6 12 19 27 30 31 2000 2002 2004 2008 2013 Aegean 2013 Aegean & OA JET Bombardier 36 44 47 2014 2015 2016
Athens main hub + 6 other A/C bases in Greece and Cyprus 2016 :145 destinations 111 international 34 domestic THESSALONIKI ATHENS KALAMATA % international activity by base Athens: 70% Thessaloniki & Larnaca: 15% Regional / Leisure: HERAKLION 15% CHANIA HERAKLION RHODES LARNACA 5
Strengthening Athens hub *Number of routes from Athens 2016 71 International routes 2012 22 International routes 2016 101 total routes 6 2012 40 total routes
Connecting Athens with Europe, Middle East and Cyprus WEST NORTH WEST Brussels, Düsseldorf, Hamburg, Frankfurt, Munich, Stuttgart, London, Manchester, Birmingham, Geneva, Zurich, Paris, Nantes, Amsterdam, Dublin, Lille, Luxembourg SOUTH WEST Warsaw, Budapest, Prague, Helsinki, Oslo, Tallinn, Vienna,Copenhagen, Krakow, Vilnius Kiev, Moscow, St. Petersburg, Sofia, Bucharest,Tirana, Belgrade, Dubrovnik, Ljubljana, Split NORTH EAST Tbilisi,Istanbul, Izmir, Tehran Toulouse, Bordeaux, +4 Marseille, Madrid, Barcelona, Milan, Lyon, Rome, Venice, Lisbon, Majorca, Naples, +4 Nice +1 Amman, Beirut, Tel +1 Aviv, Larnaca, Riyadh, Jeddah Toulouse, Bordeaux, Marseille, Madrid, Barcelona, Milan, Lyon, Rome, Venice, Lisbon, Majorca, Naples, Nice Catania, Malta, Bari +2 +2 Cairo, Alexandria SOUTH EAST EAST 7
Delivers 3 x network flows in 7 years HUB support & defense 1,400 1,200 AIA Transfer Pax Departing from Athens connecting passengers: 25% of total 1,000 More than 3x 800 600 400 200 0 2008 2010 2013 2014 2015 8
Tourist arrivals by air 2010 2015 => +50% growth in tourist arrivals, Athens potential remains 2016 ytd growth of 5% (May) Industry Security concerns/ UK referendum / late booking traveling patterns / relatively low visibility on forward bookings Long term potential provided country s stable environment for private investments Tourist arrivals by air (m) 3.1 Athens (m) 3.4 4.2 14.6 15.5 2010 2014 2015 10.6 Rest of Greece (m) Source: SETE 7.5 11.3 11.3 9 2010 2014 2015 2010 2014 2015
Tourist arrivals by source country Greek Tourism - breakdown by source market Oceania 1% EU 79% America 7% Africa Asia 3% Rest Europe 8% Top 10 European Source Markets Arrivals (m) % total Europe 2015/2014 Growth Germany 2.5 19% 22% UK 2.4 18% 15% France 1.5 11% 4% Italy 1.2 9% 32% Poland 0.7 5% 22% Netherlands 0.6 5% 3% Belgium 0.5 4% 18% Russia 0.5 4% 61% Cyprus 0.4 3% 27% Czech Republic 0.4 4% 6% Source: Hellenic Statistics, 2015 10
Total market traffic Despite 27% 28% GDP decline 2008 2015 market grows by 24% 2016 market continues to grow decelerating pace Domestic growth driven by competitors capacity & lower fares International positive though more moderate than 2015 International Athens 11 11 10 10 9 10 8 8 12 Total passengers (m) International rest of GR airports 23 23 20 18 17 18 18 16 16 2016 YTD 2007 2008 2009 2010 2011 2012 2013 2014 2015 Domestic 7 6 7 6 6 6 5 5 7 +15% Domestic +7% International Athens 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total International rest of GR airports International Athens Domestic 39 42 35 34 33 32 33 32 33 2007 2008 2009 2010 2011 2012 2013 2014 2015 11 Source: AIA, HCAA 2007 2008 2009 2010 2011 2012 2013 2014 2015
Aegean main contributor to strong market growth in Athens Aegean International Pax A3 market share 25% 30% 33% 35% 4.5 4.0 3.5 2X 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2012 2013 2014 2015 12 Pax in m, Source: Aegean Airlines, AIA
Revenue Breakdown shift to international PSO Revenue Domestic Revenue International Revenue 56% 75% 66% 70% 44% 25% 28% 25% 2009 2012 2013 2015 2013: Acquisition of Olympic 13
Competitive cost structure 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 1.00 Lean cost structure Synergies with Olympic Scale economies Cost efficiency focus CASK in EUR cents 14 2013 2014 2015 CASK in EUR cents 12.0 10.0 8.0 6.0 4.0 2.0 0.0 %total costs 24% 20% 14% 12% 11% 8% 8% CASK vs stage length sector comparison AEGEAN 0 500 1,000 1,500 2,000 2,500 3,000 Aircraft fuel Airport, Overflight, ground Aircraft leases & depreciation & financials Employee benefits Aircraft maintenance Distribution expenses Other operating expenses Catering expenses Marketing and advertising expenses other financials LCC Stage length in km Full Service Carriers
Key financial Highlights 2013 2015 EUR m FY:13 FY:14 FY:15 yoy Sales 850.0 911.8 983.0 8% EBITDAR 181.8 209.5 217.3 4% EBITDAR margin 21% 23% 22% EBITDA 90.9 118.8 111.2 6% EBT 70.9 94.9 100.3 6% Net earnings 52.5 80.4 68.4 15% Net earnings margin 6% 9% 7% ASKs (m) 10,732 12,194 14,668 20% RASK (EUR cents) 8.0 7.6 6.8 10% CASK (EUR cents) 7.4 6.8 6.1 9% Domestic Passengers (,000) 4,549 5,240 5,624 7% International Passengers (,000) EUR m 4,294 4,873 6,025 24% Total passengers (,000) 8,843 10,113 11,648 15% EUR m FY:13 FY:14 FY:15 Period end cash & other financial assets 244 218 238 On balance sheet debt & financial leases 59 58 55 Net debt / (cash) (185) (160) (182) 15
2016 capacity plans 61 Aircrafts +3 16.200.000 Available seats +1.1m 145 Destinations +14 +0.6m increase international frequencies - Athens +0.2m new Athens international routes +0.15m regional airports +0.15m domestic 111 International destinations +14 34 Domestic destinations 16
First Quarter 2016 Results Timing of Aircraft deliveries / underutilization and domestic weakness weigh on seasonally weak quarter In millions Q1:15 Q1:16 Total revenue 138.1 147.9 7% EBITDAR 6.7 5.9 13% Aircraft leases (20.9) (29.6) 42% EBITDA (14.2) (23.8) 68% Depreciation (3.3) (3.9) 19% EBIT (17.5) (27.7) 59% Financial results 5.2 (1.9) EBT (12.3) (29.6) 140% Income Tax 4.0 8.1 105% Net earnings / (loss) after tax (8.3) (21.5) 157% ASKs (in millions) 2,233 2,583 16% RASK (Revenue per ASK, in cents) 6.3 5.9 6% CASK (EBT level, in cents) 6.8 7.0 3% Load factor Scheduled services (RPK/ASK) 70.3% 69.3% 1.0pp Total available seats (000) 2,612.9 2,911.0 11% Domestic 995.0 1,054.9 6% International 851.0 955.8 12% Total number of passengers 1,846.1 2,010.6 9% 17
Summary Our basis Solid financial metrics Efficient cost structure Strong balance sheet Diversifying markets exposure vs previous years Flexibility Industry outlook Growth potential of incoming leisure / tourism sector Athens relatively underserved room to add medium haul destinations Accelerated competition in domestic market + weak economy Short term challenge on industry security concerns Late bookings pattern Our strategy Further exploit network synergies and connectivity Distribution cost initiatives Long term moderate expansion IT / ecommerce investments / Value cycle loyalty enhancements Address A/C ownership cost (leases + maintenance) 18
Shareholder Structure 33.6% 35.4% Th. Vassilakis * Other pre IPO shareholders Free Float 31.0% Listed on the Athens Exchange *11.6% controlled through Autohellas 19
20 Appendix
Profit & Loss 21 P&L FY:14 FY:15 In % Q1:15 Q1:16 In% In millions Consolidated Results Group change Group change Scheduled Services 748.6 827.4 11% 114.3 126.8 11% Charter 61.4 45.7 25% 1.0 0.5 49% Other (cargo, service charge, executive aviation) 101.9 109.8 8% 22.7 20.6 9% Total revenue 911.8 983.0 8% 138.1 147.9 7% Other operating income 9.7 18.8 93% 2.1 4.3 102% Employee benefits (100.5) (109.4) 9% (24.3) (25.9) 7% Aircraft fuel (232.8) (216.3) 7% (30.8) (29.5) 4% Aircraft maintenance (77.6) (97.6) 26% (12.9) (17.0) 32% Overflight expenses (53.9) (67.1) 24% (10.6) (11.2) 6% Ground handling expenses (51.5) (60.4) 17% (10.2) (10.8) 5% Airport charges (37.4) (50.7) 36% (9.4) (11.1) 18% Catering expenses (21.1) (24.4) 16% (3.8) (4.4) 15% Distribution expenses (61.2) (73.8) 21% (17.0) (16.7) 2% Marketing and advertising expenses (12.3) (14.6) 19% (2.3) (3.3) 45% Other operating expenses (63.8) (70.2) 10% (12.2) (16.6) 36% EBITDAR 209.5 217.3 4% 6.7 5.9 13% EBITDAR margin 23.0% 22.1% 4.9% 4.0% Aircraft leases (90.7) (106.1) 17% (20.9) (29.6) 42% EBITDA 118.8 111.2 6% (14.2) (23.8) 68% Depreciation (12.6) (14.0) 12% (3.3) (3.9) 19% EBIT 106.2 97.2 9% (17.5) (27.7) 59% EBIT margin 11.7% 9.9% 12.6% 18.7% Financial results (11.3) 3.1 5.2 (1.9) EBT 94.9 100.3 6% (12.3) (29.6) 140% EBT margin 10.4% 10.2% 8.9% 20.0% Income Tax (14.4) (31.9) 121% 4.0 8.1 105% Net earnings / (loss) after tax 80.4 68.4 15% (8.3) (21.5) 157%
Key Operating Statistics FY:14 FY:15 In % Q1:15 Q1:16 In% Group change Group change RASK (Revenue per ASK, in cents) 7.6 6.8 10% 6.3 5.9 6% Yield (Revenue per RPK, in cents) 9.6 8.9 8% 9.0 8.5 5% CASK (EBITDAR level, in cents) 5.8 5.3 8% 6.0 5.7 5% CASK (EBITDAR level, in cents) excl. fuel costs 3.9 3.9 1% 4.6 4.5 2% CASK (EBT level, in cents) 6.8 6.1 9% 6.8 7.0 3% CASK (EBT level, in cents) excl. fuel costs 4.9 4.7 4% 5.5 5.9 8% Capacity FY:14 FY:15 In % Q1:15 Q1:16 In % ASKs (in millions) 12,194 14,668 20% 2,233 2,583 16% Total available seats (000) 13,088 15,194 16% 2,613 2,911 11% Total Block Hours 148,062 167,511 13% 27,428 30,043 10% Total Sectors Flown 99,486 109,546 10% 19,150 20,374 6% Average capacity per flight 132 139 5% 136 143 5% Average sector length (km) 767 809 5% 725 760 5% Passengers (000) By type of service : Schedule passengers 9,574 11,216 17% 1,844 2,006 9% Charter passengers 539 433 20% 3 4 63% By network : Domestic 5,240 5,624 7% 995 1,055 6% International 4,873 6,025 24% 851 956 12% Total number of passengers 10,113 11,648 15% 1,846 2,011 9% RPKs (in millions) 9,584 11,285 18% 1,566 1,788 14% Pax/flight 102 106 5% 96 99 2% Load factor Scheduled (Pax/AVS) 77.3% 76.9% 0.5pp 70.7% 69.1% 1.6pp 22 Load factor Scheduled (RPK/ASK) 78.3% 76.9% 1.5pp 70.3% 69.3% 1.0pp
Balance Sheet BALANCE SHEET GROUP EUR,000 31/12/2014 31/12/2015 Intangible assets 47,908.42 47,602.09 Goodwill 39,756.30 39,756.30 Tangible assets 80,488.90 103,937.97 Advances for assets acquisition 56,024.47 30,994.76 Financial Assets available for sale 0 8901.82 Deferred tax assets 21,158.79 16,732.90 Other long term assets 19,984.96 25,998.48 Hedging derivatives 10,631.83 232.68 Total non current assets 275,953.67 274,157.00 Inventories 13,237.74 13,181.67 Customers and other receivables 87,648.24 104,475.87 Advances 10,602.27 14,013.43 Financial Assets at fair value 10,903.27 39,609.11 Hedging derivatives 24,139.12 34,072.06 Restricted cash 16,045.15 36,392.03 Cash and cash equivalents 191,436.88 152,932.85 Total current assets 354,012.67 394,677.02 TOTAL ASSETS 629,966.34 668,834.02 Share capital 46,421.11 46,421.11 Share premium account 72,775.98 72,775.98 Other reserves 1,443.53 13,187.28 Retained profit / (loss) 101,238.75 115,964.62 Total equity 218,992.31 221,974.43 Finance lease contracts liabilities 49,649.50 45,175.34 Derivative contracts liabilities 5,142.25 12,555.62 Provisions for retirement benefits obligations 6,600.34 8,405.35 Provisions 29,200.89 19,915.62 Other long term liabilities 34,583.64 27,832.85 Total long term liabilities 125,176.62 113,884.78 Suppliers 63,437.72 77,123.21 Long term finance leases liabilities payable next year 8,836.13 10,196.61 Other short term liabilities 70,494.90 74,495.07 Liabilities from tickets sold but not flown 65,728.82 83,961.75 Accrued expenses 23,472.72 28,818.35 Hedging derivatives 35,171.21 48,940.30 Income tax liabilities 15,417.38 7,822.27 Provisions 3,238.53 1,617.25 Total short term liabilities 285,797.41 332,974.81 Total liabilities 410,974.03 446,859.59 TOTAL 23EQUITY AND LIABILITIES 629,966.34 668,834.02
Cash Flow Statement Cash Flow Statement Group EUR,000 31/12/2014 31/12/2015 Profit / (loss) before tax 94,890.7 100,316.9 Adjustments for: Depreciation of tangible assets 12,551.2 14,010.0 Loss from impairment of assets 554.0 (326.3) Provisions 2,718.3 (18,007.8) Foreign currency exchange (gains) / losses 8,432.0 (7,850.8) (Profit) / loss from investing activities (3,996.8) (1,351.6) Finance Cost 6,955.8 5,869.8 Cash flows from operating activities before changes in working capital 122,105.0 92,660.3 Changes in working capital (Increase)/Decrease in inventories (1,647.7) 248.2 (Increase)/Decrease in trade & other receivables (25,033.1) (29,890.5) Increase/(Decrease) in trade payables 36,472.4 28,218.0 Total changes in working capital 9,791.5 (1,424.3) Interest expenses payable (3,245.4) (2,853.8) Income tax paid (17,137.2) (18,429.3) Net cash flows from operating activities 111,514.0 69,953.0 Cash flows from investing activities Purchase of assets (13,698.7) (20,236.5) Proceeds from sale of assets 19.5 1,980.7 Advances for the acquisition of assets (34,889.0) 30,622.4 Purchase of Financial Assets (3,492.5) (43,501.3) Sale of Financial Assets 9,136.5 12,301.6 Acquisition of subsidiaries (10,400.0) (10,400.0) Interest and other financial income received 2,282.1 734.9 Net cash flows from investing activities (51,042.2) (28,498.2) Cash flows from financing activities Dividends 0.0 (49,885.3) Share capital return (71,234.9) 0.0 Share capital increase expenses (785.6) 0.0 Finance leases capital repayment (7,846.4) (9,726.5) Net cash flows from financing activities (79,866.9) (59,611.9) Net (decrease)/ increase in cash and cash equivalents (19,395.0) (18,157.2) Cash and cash equivalents at the beginning of the year 226,877.0 207,482.0 24 Cash and cash equivalents at the end of the period 207,482.0 189,324.9
Key financial metrics EUR m FY:08 FY:09 FY:10 FY:11 FY:12 FY:13 FY:14 FY:15 Period end cash & other financial assets 183 213 196 172 156 244 218 238 On balance sheet debt & financial leases 86 83 103 98 82 59 58 55 Net debt / (cash) (97) (130) (93) (73) (74) (185) (160) (182) EUR m FY:08 FY:09 FY:10 FY:11 FY:12 FY:13 FY:14 FY:15 Sales 559 553 516 580 563 850 912 983 EBITDAR 102 96 76 62 73 182 209 217 EBITDAR margin 18% 17% 15% 11% 13% 21% 23% 22% EBITDA 57 32 1 (18) 3 91 119 111 EBITDA margin 10% 6% 0% 3% 1% 11% 13% 11% Net earnings 29 23 (23) (27) (10) 52 80 68 Net earnings margin 5% 4% 5% 5% 2% 6% 9% 7% EUR m FY:08 FY:09 FY:10 FY:11 FY:12 FY:13 FY:14 FY:15 Operating cash flow (before taxes & interest payments) 65 49 (5) 4 21 108 132 91 25 Note: FY2013 pro forma, assuming full consolidation of Olympic Air for the full year
2016 capacity plans: 16m total seats +1m vs 2015 Increasing frequencies on existing routes and new international destinations launched Dublin Nice Lille Napoli Bari Luxembourg Amsterdam Lisbon Ireland France Italy Luxemburg Netherland Portugal Palma de Majorca Ljubljana Jeddah Krakow Vilnius Split Spain Slovenia S. Arabia Poland Lithuania Croatia 26
2016: 101 Destinations from ATHENS 14.0 12.0 10.0 8.0 35 destinations 22 international 40 destinations 28 international + 1 million Seats 64 destinations 34 international 9.2 76 destinations 47 international 10.1 7.8 89 destinations 59 international 11.4 8.9 101 destinations 71 international 12.5 AVS 6.0 6.3 6.4 6.6 PAX 4.0 4.3 4.7 2.0 27 0.0 2011 2012 2013 2014 2015 2016
Athens opportunity Underserved in terms of destinations Number of international destinations served from airport 282 291 Long haul (>5 hours) Short haul (< 5 hours) 79 5 74 92 6 86 77 15 62 123 30 93 165 28 137 176 24 152 140 30 110 176 43 133 141 42 99 180 45 135 100 11 89 192 27 165 110 15 95 220 56 164 110 172 125 166 2005 2016 2005 2014 2005 2014 2005 2014 2005 2014 2005 2014 2005 2014 2005 2014 Airport Athens ATH Lisbon LIS Vienna VIE Zurich ZRH Rome FCO Barcelona BCN Istanbul IST Frankfurt FRA Source: OAG, Mckinsey study (October 2014), A3 28
Last decade at a glance Revenue Pre tax profit / margin ASKs 261 m 440 516 Revenue 983 912 850 683 563 120 100 80 60 40 20 0 20 40 2% 6% 9% 10% 7% 6% 12% 8% 10%10% 4% 5% 2% EBT Margin 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 3,692 4,023 6,216 8,308 9,139 14,668 12,194 10,732 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Passenger Traffic 1.0 1.2 1.4 1.9 2.3 2.8 3.1 3.5 3.5 4.0 4.3 4.9 6.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Unit costs / stage length 5.7 6.2 6.4 5.9 6.1 5.2 5.1 4.4 4.3 4.2 5.3 4.9 4.7 1,200 1,000 800 600 400 200 0 90% 85% 80% 75% 70% 65% 60% 55% 50% 45% 40% 62% Load Factor 71% 69% 68% 74% 77% 29 International Pax Domestic Pax CASK (excl fuel) In cents FY04-FY13: Aegean standalone / Group FY:13 & FY:14 include full consolidation of Olympic Air Average stage length km
Aegean Share Listed in Athens Exchange Bloomberg AEGN GA / Reuters AGNr.AT IPO : July 2007 / 7.60 IPO price Dividends / Returns: DPS FY08 0.25 DPS FY09 0.13 Capital return FY13 1.00 DPS FY14 0.70 DPS FY15 0.70 Contact: investors@aegeanair.com +30 210 626 1660 30
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. 31