Corporate Presentation March 2017 March 27, 2017
Quality & Award winning airline Full Service Carrier Focus on quality, efficiency Fleet of 58 Aircraft in 2017 46 Airbus A320 family 12 Turboprops 12.5m pax in 2016 Star alliance member Award winning airline 7x skytrax best regional award 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Traffic in RPKs (m) 5x 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 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 / delivered in 2015 2016 2
Athens main hub + 6 other A/C bases in Greece and Cyprus 2016 :145 destinations 111 international 34 domestic THESSALONIKI % international activity by source market Western Europe: 55% Cyprus: 10% Central Europe: 25% Middle East: 10% ATHENS KALAMATA % international activity by base Athens: 70% Thessaloniki & Larnaca: 15% Regional / Leisure: HERAKLION 15% CHANIA HERAKLION RHODES LARNACA 3
369 Last decade at a glance Growing international / Seeking improvements in network, costs / Consolidation m Revenue 553 563 850 1,020 983 120 100 80 60 40 20 0 20 40 Pre tax profit / margin 9% 10% 7% 6% 4% 5% 2% 12% 8% 10%10% 5% 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 4,023 6,216 ASKs 8,308 9,139 10,732 16,383 14,668 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Passenger Traffic 1.4 1.9 2.3 2.8 3.1 3.5 3.5 4.0 4.3 4.9 6.0 6.7 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 EBT Margin Unit costs / stage length 6.4 5.9 6.1 5.2 5.1 4.4 4.3 4.2 5.3 4.9 4.7 4.8 1,200 1,000 800 600 400 200 0 90% 80% 70% 60% 50% 40% Load Factor 78% 71% 74% 69% 68% 77% 4 International Pax Domestic Pax CASK (excl fuel) Average stage length km In cents FY04-FY13: Aegean standalone / Group FY:13 & FY:14 include full consolidation of Olympic Air
Rapid growth following acquisition of Olympic Using synergies to expand 8.8 Passengers 10.1 11.6 12.5 Turboprop Airbus 45 Fleet 50 58 61 6.1 30 +17 jet 2012 2013 2014 2015 2016 Domestic International 2012 2013 2014 2015 2016 ASKs +78% Network Destinations 134 119 104 145 9,139 10,732 12,194 14,668 16,383 65 5 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Network, cost synergies and market dynamics => financial performance in 2013 2015 Strong incoming traffic offsets impact of weak local demand 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% 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) 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 marketable securities 244 218 238 On balance sheet debt & finance leases 59 58 55 Net debt / (cash) (185) (160) (182) 6
2016 key market drivers Domestic Athens / Thessaloniki / Larnaca Seasonal / Leisure regional Greek airports Economy stabilizes / local demand rebounds but only driven by significant lower fares Direct / Indirect Taxation => pronounced impact Increased competitors capacity Growth in total market traffic....but no growth in market revenue on persistent yield pressures and taxation increases Less seasonal characteristics Local / price sensitive consumer demand grows on lower fares International incoming growth slows down in Q2, improved trends for Q3 and Q4 Athens hub benefits continue to develop Thessaloniki more resilient mature operations for Aegean Resilient traffic characteristics since the beginning of the crisis 100% incoming leisure driven Oversupply in 2016 and especially in early summer leading to demand/supply mismatch and lower loads and yields Strong performance in seasonally most important third quarter 7
Non resident arrivals by air in 2016 Non resident Arrivals by air 17.0 16.4 15.0 14.2 15.0 +9% 13.0 11.0 11.9 11.7 10.8 10.7 11.6 11.2 12.3 10.6 9.0 7.0 7.4 7.3 6.7 6.8 7.8 7.7 8.8 9.7 9.8 Total arrivals Rest of GR Thessaloniki Athens 5.0 3.0 0.9 0.9 3.5 3.4 0.9 0.8 0.9 3.2 3.1 2.9 0.9 0.9 2.6 2.7 1.1 3.4 1.1 4.2 1.2 4.5 1.0 1.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 8 Source: SETE, AIA
Total traffic Greek airports Domestic Traffic (m) 6.5 6.8 6.2 5.6 5.1 5.0 6.0 7.3 +10% 8.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 30.0 25.0 20.0 15.0 10.0 5.0 0.0 International Traffic Athens International Traffic Rest of GR 22.6 22.7 20.3 17.5 17.3 18.2 18.0 16.0 16.1 11.7 10.6 10.6 10.1 9.9 9.5 9.9 8.4 8.2 24.8 12.9 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 +10% +10% 9 Source: HCCA, A3 estimates
Aegean passenger growth Total Passengers +7% Available Seats 15.2 +7% 16.2 +2% +12% 11.6 12.5 2015 2016 5.6 5.7 6.0 6.7 2015 2016 Domestic International Total 10
2016 operating results Q2 challenging given supply/demand mismatch but strong Q3 & improvement continues in Q4 ASKs (bn) per quarter 2015 2016 +12% RPKs (bn) per quarter 2015 2016 +16% +13% +10% +10% 14.7 16.4 +13% +14% +9% +12% +18% 11.3 12.7 2.2 2.6 4.0 4.5 5.3 5.8 3.2 3.5 1.6 1.8 3.0 3.3 4.4 4.9 2.4 2.8 Q1 Q2 Q3 Q4 FY Load Factor per quarter Q1 Q2 Q3 Q4 FY +1.0 3.2 +1.4 +5.4 +0.6 70.3% 69.3% 75.3% 72.1% 82.3% 83.7% 80.3% 80.3% 75.0% 75.0% 2015 2016 11 Q1 Q2 Q3 Q4 FY
2016 Financial highlights Revenue per quarter (m) 2015 2016 +4% RASK per quarter ( cents) 2015 2016 +7% 4% +7% +5% 983 1020 6% 17% 2% 5% 8% 6.3 6.9 7.3 5.9 5.8 7.2 6.2 6.8 5.9 6.3 138 148 266 256 389 416 191 200 Q1 Q2 Q3 Q4 FY Pre tax earnings per quarter (m) 2015 2016 95.8 104.8 100.3 Q1 Q2 Q3 Q4 FY CASK per quarter (cents) 2015 2016 +3% 5% 3% 3% 2% 6.8 7.0 6.7 6.1 6.5 5.8 6.1 5.5 6.0 5.4 31.2 51.6 Q1 Q2 Q3 Q4 FY 12 Q1 Q2 2.1 Q3 Q4 FY 12.3 14.4 21.5 29.6
Healthy cashflow generation 68 20 28 Cashflow 2016 (EUR m) 5 33 10.4 50 237 10 253 Cash & financial investments the beginning of the year operating cashflow before working capital Δ Total changes in working capital Interest & tax Capex Net pdps OA acquisition Dividend Finance leases Cash & financial investments at the end of the period 93 5 21 Cashflow 2015 (EUR m) 18 30 10.4 50 218 237 Cash & financial investments the beginning of the year operating cashflow before working capital Δ Total changes in working capital Interest & tax Capex Net pdps OA acquisition Dividend Finance leases Cash & financial investments at the end of the period 13 Financial investments include investments in Money market funds, bonds and shares
Significant Athens network expansion *Number of routes out of Athens 2016 71 International routes 2012 22 International routes 2016 101 total routes 14 2012 40 total routes
Connecting Athens with Europe, Middle East and Cyprus WEST Indicative connecting routes via Athens 15 NORTH WEST Brussels, Düsseldorf, Hamburg, Frankfurt, Munich, Stuttgart, Berlin, Hannover, Kassel London, Manchester, Birmingham, Geneva, Zurich, Paris, Nantes, Amsterdam, Dublin, Lille, Luxembourg, Edinburgh SOUTH WEST Warsaw, Budapest, Prague, Stockholm, Helsinki, Tallinn, Vienna,Copenhagen, Krakow Kiev, Moscow, St. Petersburg, Sofia, Bucharest,Tirana, Belgrade, Dubrovnik, Split Toulouse, Bordeaux, Marseille, Madrid, Barcelona, Milan, Lyon, Rome, Venice, Lisbon, Majorca, Naples, Nice Toulouse, Bordeaux, Marseille, Madrid, Barcelona, Milan, Lyon, Rome, Venice, Lisbon, Naples, Nice, Pisa Catania, Malta, Bari Cairo, Alexandria Tbilisi,Istanbul, Izmir, Tehran, Yerevan NORTH EAST Amman, Beirut, Tel Aviv, Larnaca, Riyadh, Jeddah, Kuwait SOUTH EAST EAST
Delivers 4x network flows Hub support & Defense 17% YTD growth in connecting traffic 3,500 In,000 3,000 connecting passengers: 26% of total 2,500 4X 2,000 1,500 1,000 500 0 2008 2010 2013 2014 2015 2016 16
Digital / loyalty developments drive on line penetration higher Continuous roll out of new services New responsive Booking, My Booking, Award Booking & Rebooking Services / Flight Related Notification Services / Miles+Bonus Push Notifications Integration of My Aegean in Apps Brings single sign on and personalization aspects to the apps Passport & ID Scanning in Apps for Faster Check in Miles awarded display for A3/OA operated flights Google now Boarding Pass Integration and more to come 40% Company web sales / total++10ppt 30% 20% 10% 17 0% 2013 2014 2015 2016
Summary Our basis & Industry dynamics Our strategy Solid Balance Sheet Efficient cost structure Strong positioning on key markets Flexibility Weak economy remains Increased reliance on incoming leisure Greece tourism potential Drivers ( Diversify source & destination / city breaks / season extension / theme tourism / conferences / infrastructure investments ) Consolidate bases and activity to protect profitability and improve KPIs Further exploit network synergies and connectivity Distribution cost initiatives IT / ecommerce investments / Value cycle loyalty enhancements Cost discipline on controllable costs 18
19 Appendix
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 20
Profit & Loss 21 P&L Group Group %yoy In millions FY:15 FY:16 Revenue Scheduled Services 827.4 870.4 5% Charter 45.7 41.4 10% Other (cargo, ancillaries, executive aviation) 109.8 108.6 1% Total revenue 983.0 1,020.3 4% Other operating income 18.8 14.2 24% Employee benefits (109.4) (119.5) 9% Aircraft fuel (216.3) (197.3) 9% Aircraft maintenance (97.6) (118.6) 22% Overflight expenses (67.1) (68.3) 2% Ground handling expenses (60.4) (63.7) 5% Airport charges (50.7) (56.0) 10% Catering expenses (24.4) (28.4) 16% Distribution expenses (73.8) (78.8) 7% Marketing and advertising expenses (14.6) (15.9) 9% Other operating expenses (70.2) (81.2) 16% EBITDAR 217.3 206.9 5% EBITDAR margin 22.1% 20.3% Aircraft leases (106.1) (130.1) 23% EBITDA 111.2 76.8 31% Depreciation (14.0) (18.0) 28% EBIT 97.2 58.9 39% EBIT margin 9.9% 5.8% Interest income 1.1 1.1 Interest expense (6.1) (6.5) FX difference 8.1 (1.9) Financial results 3.1 (7.3) EBT 100.3 51.6 49% EBT margin 10.2% 5.1% Income Tax (31.9) (19.4) 39% Net earnings / (loss) after tax 68.4 32.2 53%
Key Operating Statistics FY:15 FY:16 Change Group Group In % RASK (Revenue per ASK, in cents) 6.8 6.3 8% Yield (Revenue per RPK, in cents) 8.9 8.1 8% CASK (EBT level, in cents) 6.1 6.0 2% CASK (EBT level, in cents) excl. fuel costs 4.7 4.8 3% Capacity FY:15 FY:16 In % ASKs (in millions) 14,668 16,383 12% Total available seats (000) 15,194 16,205 7% Total Block Hours 167,511 180,588 8% Total Sectors Flown 109,546 112,709 3% Average capacity per flight 139 144 4% Average sector length (km) 809 864 7% Passengers (000) By type of service : Schedule passengers 11,216 12,076 8% Charter passengers 433 387 10% By network : FY:15 FY:16 In % Domestic 5,624 5,725 2% International 6,025 6,738 12% Total number of passengers 11,648 12,463 7% RPKs (in millions) 11,285 12,715 13% Pax/flight 106 111 4% Load factor Scheduled (Pax/AVS) 76.9% 77.0% 0.1pp Load factor Scheduled (RPK/ASK) 76.9% 77.4% 0.6pp 22
In EUR,000 Balance Sheet BALANCE SHEET GROUP 31/12/2015 31/12/2016 Intangible assets 47,602.09 47,046.73 Goodwill 39,756.30 39,756.30 Tangible assets 103,937.97 100,768.20 Advances for assets acquisition 30,994.76 387.33 Financial Assets available for sale 8,901.82 1,025.00 Deferred tax assets 16,732.90 0.00 Other long term assets 25,998.48 27,647.27 Hedging derivatives 232.68 9,339.23 Total non current assets 274,157.00 225,970.06 Inventories 13,181.67 16,079.85 Customers and other receivables 104,475.87 105,977.68 Advances 14,013.43 24,732.82 Financial Assets at fair value 39,609.11 4,684.24 Hedging derivatives 34,072.06 24,839.48 Restricted cash 36,392.03 0.00 Cash and cash equivalents 152,932.85 248,477.75 Total current assets 394,677.02 424,791.81 TOTAL ASSETS 668,834.02 650,761.87 BALANCE SHEET GROUP 31/12/2015 31/12/2016 Share capital 46,421.11 46,421.11 Share premium account 72,775.98 72,775.98 Other reserves 13,187.28 30,118.18 Retained profit / (loss) 115,964.62 94,955.78 Total equity 221,974.43 244,271.05 Finance lease contracts liabilities 45,175.34 35,838.01 Derivative contracts liabilities 12,555.62 1,180.84 Provisions for retirement benefits obligations 8,405.35 9,998.18 Provisions 19,915.62 15,236.24 Other long term liabilities 27,832.85 14,221.24 Deffered tax liabilities 10,612.69 Total long term liabilities 113,884.78 87,087.20 Suppliers & other liabilities 77,123.21 87,106.19 Long term finance leases liabilities payable next year 10,196.61 10,894.43 Other short term liabilities 74,495.07 90,903.84 Liabilities from tickets sold but not flown 83,961.75 100,948.13 Accrued expenses 28,818.35 25,928.98 Hedging derivatives 48,940.30 3,147.29 Income tax liabilities 7,822.27 0.00 Provisions 1,617.25 474.75 Total short term liabilities 332,974.81 319,403.62 Total liabilities 446,859.59 406,490.82 TOTAL EQUITY AND LIABILITIES 668,834.02 650,761.87 23
Cashflow 24 31/12/2015 31/12/2016 Profit / (loss) before tax 100,316.9 51,598.6 Adjustments for: Depreciation of tangible assets 14,010.0 17,984.4 Loss from impairment of assets (326.3) Provisions (18,007.8) (8,987.3) Foreign currency exchange (gains) / losses (7,850.8) 1,908.5 (Profit) / loss from investing activities (1,351.6) 177.1 Finance Cost 5,869.8 5,517.7 Cash flows from operating activities before changes in working capital 92,660.3 68,199.0 Changes in working capital (Increase)/Decrease in inventories 248.2 (2,898.2) (Increase)/Decrease in trade & other receivables (29,890.5) (14,407.5) Increase/(Decrease) in trade payables 28,218.0 36,875.9 Total changes in working capital (1,424.3) 19,570.2 Interest expenses payable (2,853.8) (3,486.5) Income tax paid (18,429.3) (24,506.5) Net cash flows from operating activities 69,953.0 59,776.2 Cash flows from investing activities Purchase of assets (20,236.5) (4,671.1) Proceeds from sale of assets 1,980.7 0.0 Advances for the acquisition of assets 30,622.4 32,957.3 Purchase of Financial Assets (43,501.3) 0.0 Sale of Financial Assets 12,301.6 41,294.4 Acquisition of subsidiaries (10,400.0) (10,400.0) Interest and other financial income received 734.9 181.9 Net cash flows from investing activities (28,498.2) 59,362.4 Cash flows from financing activities Dividends (49,885.3) (49,889.0) Finance leases capital repayment (9,726.5) (10,096.7) Net cash flows from financing activities (59,611.9) (59,985.7) Net (decrease)/ increase in cash and cash equivalents (18,157.2) 59,152.9 Cash and cash equivalents at the beginning of the year 207,482.0 189,324.9 Cash and cash equivalents at the end of the period 189,324.9 248,477.8
Revenue Breakdown shift to international Domestic Revenue International Revenue 45% 55% 72% 2006 2010 2016 25
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 DPS FY16 0.40 pending AGM approval Contact: investors@aegeanair.com +30 210 626 1660 26
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. 27