Public Meeting December 7, 2017
Agenda 3:30 pm Welcome 3:45 pm Introduction 4:00 pm Smiles 4:30 pm GOL 5:00 pm Finance 5:15 pm Q&A 5:30 pm Conclusion 2
Introduction Constantino de Oliveira Junior Chairman 3
GOL is #1 Brazil s # 1 Airline #1 in network #1 in business traffic #1 in market share #1 in costs #1 in loyalty program #1 in sponsorship Strong Balance Sheet Right-sizing complete Best poised to benefit from Brazil s Growth 33MM pax/year 13MM loyalty customers 120 B-737 MAX-8 order 36% Market Share R$10 billion in annual net revenues R$8.0 billion R$0.3 billion R$1.7 billion 4
Brazil s best sponsored airline One of Boeing s most important 737 customers More than 250 aircraft purchased to date Order for 120 Max 8 Boeing 31 current aircraft financed 40 aircraft financed in total MRO and Wi-Fi maintenance U.S. Exim Bank 61% 10% 2% (1) 28% Constantino Family Delta Air France/KLM Public Market Brazil s largest transportation operators Board members with significant experience and complementary profiles America s largest airline Total PAX in 2016: 183.7mm Operating fleet: 857 Market cap: ~US$36.0bn (largest of any airline) Invested >US$150MM in equity and provided US$300MM debt support GOL Board seat Europe s #1 airline Total PAX in 2016: 93.4mm Operating fleet: 555 Market cap: ~US$4.6bn Invested $100MM High liquidity ~US$15mm daily trading volume High standards of disclosure Quarterly IFRS financials Supplementary disclosures IR Website Independent audit committee Note: Market data as of 10/27/2017. (1) Includes 0.3% shares in treasury. 5
Unique culture The intelligent airline Strong corporate culture: focus on costs and quality Agent of change promoting shift in the way Brazilians fly Perceived as innovator in the airline industry Re-defining low-cost operations Popularizing air travel in South America Consumer-friendly image The leading brand in Brazil Differentiated and efficient service Safe, on-time operations 6
Highlights 1 Market leadership with an irreplicable, highly defensible network 2 4 3 World-class low cost operator: significantly better than all peers Best-in-class operations and service: driving customer loyalty Right-sized balance sheet with strong liquidity position 5 Positioned to benefit from stable Brazil macro and competitive environment 7
Leonel Andrade CEO, Smiles
Marcos Pinheiro CFO, Smiles
Lowest costs & Best customer experience Paulo Kakinoff CEO 43
1. Unparalleled and irreplicable network Leading market position at key airports that represent 75% of Brazilian traffic 4 th largest domestic market in the world over 90 mm pax/year GOL has over 36% market share YTD ~40% share: core slot-constrained airports (over 50% traffic) ~90 codeshares and interlines: +connectivity GOL s main airports (1) cover 70% of Brazil s GDP 25% of customers: >50% of revenues High-value network focused on higher-yielding business traveler Close-in purchases, ancillary revenue opportunities Salvador 27% 24% Recife 16% Brasília 16% 47% 27% 3.6 3.2 14% 28% 8.4 32% 32% 35% 3% Punta Cana Paramaribo 47% Boa Vista 18% Macapá Manaus Santarém Belém Sao Luis Fernando de Noronha Marabá Teresina Fortaleza Fortaleza (2) Cruzeiro do Sul Carajás Natal Campina Porto Velho 18% Juazeira do Norte Grande Joäo Pessoa Rio Branco Palmas Petrolina Recife 40% Macció Aracaju 30% 2.7 Cuiabá Salvador Brasilia Santa Cruz de La Sierra Goiania Montes 12% Caldas Novas Ilhéus Claros Porto Segura Campo Grande Uberlandia Belo Horizonte Juiz de Fora Vitoria Presidente Prudente Campinas Rio de Janeiro Londrina Maringa Assunçäo Sao Paulo 1% Faz do Iguaçu Curitiba Chapcco Joinville 20% 22% Navegantes Florianopolis Caxias do Sul 4.6 Córdoba Porto Alegre Santiago Mendoza 57% Rosário Montevidéu Buenos Aires 35% Belem 1.5 Belo Horizonte Curitiba 7% 33% 28% 3.1 Rio de Janeiro (SDU+GIG) 15% 50% 10.2 28% 32% 7% Note: Figures inside each pie represent annual PAX/year in millions Source: FDC, Prof Paulo Vicente, ANAC. (1) Sao Paulo (CGH), Sao Paulo (GRU), Campinas (VCP), Rio de Janeiro (GIG), Rio de Janeiro (SDU), Belo Horizonte (CNF), Porto Alegre (POA), Salvador (SSA), Brasilia (BSB), Recife (REC) (2) Pro Forma for GOL s new seats available in Fortaleza Porto Alegre 9% 29% 3.5 39% 24% Azul Latam Others Slot-constrained São Paulo (CGH + GRU) 16% 39% 21.3 5% 41% 44
2. World-class low cost operator Single, optimal fleet type Boeing 737 drives efficiency and lower cost Simplified fleet (No. of planes) Type # of planes Seats per plane Total: 120 (1) Average: 158 B737 NG 120 158 Latam TAM: 163/Total: 319 2 Average: 196 A320 Family 243 172 A350-900 7 348 B767-300 37 221-238 B777-300 ER 10 379 B787 Family 22 247-313 Azul Total: 123 (3) Average: 111 Embraer E Jets 70 118 ATR 40 70 A320-Neo 8 174 A330 5 242-272 Avianca Brasil Total: 53 (4) Average: 155 A320 Family 50 120-165 A330 3 252 (1) Fleet as of 3Q17, four aircraft are subleased to another airline. (2) Fleet as of December 2016. (3) Fleet as of 2Q17, 17 aircraft not included in fleet have been subleased to third parties and 3 aircraft that were not in service (4) Fleet as of Nov 2017. (5) 3Q2017 (6) 9M2019 Enables GOL s superior: Scheduling efficiency Maintenance efficiency Operating efficiency Flexibility High utilization GOL has the highest service level (95.6% flights departing on time and 98.3% flight completion) (5) at the lowest cost (CASK R$ 20.3 cents) (6) South America s largest all-b737 fleet GOL total fleet: 120 aircraft (1) (average age: 8 years) 737-700 fleet: 28 aircraft 737-800 fleet: 92 aircraft Order for 737 MAX 8 5 deliveries in 2018 ~15% more efficient than 737 NG 45
2. World-class low cost operator Over 20% lower than next Brazilian Peer 1 GOL s Low Unit Cost 2... (CASK ex-fuel in US$ cents) RyanAir WestJet JetBlue Southwest Azul 2,35 4,01 4,63 5,04 5,49 6,71... One of the Lowest in the World 3 (CASK in US$ cents) 12 11 10 9 8 7 6 5 4 Lowest Fuel Consumption in Latin America ASK / Liter of Fuel x 1.000 33,8 33,1 31,5 30,7 Average = 32.12 26,4 GOL Copa Avianca Latam Azul Latin America Cos. 4 Brazilian Cos. 5 Max 8 would result in ~15% less fuel consumption that represents up to 5% more EBIT margin Source: SAP and company filings. (1) For three months ended September 30, 2017 (2) GOL: 2016 20-F and ex-rate R$3.483. Other companies last annual audited financial (3) CASK adjusted for average stage length. (4) Copa, Latam Holdings and Avianca Holdings. (5) Avianca Brazil, Latam Brazil, and Azul 46
3. Best in class operations and service Service oriented, innovative platform Most on time Departures + Easy and Fast Flight Changes + 95.4% of on-time departures + 98.4% flight completion GOL Online GOL s Flexible ticket allows clients adapt their flights schedule Flexible fares give clients freedom to change flights at no additional cost Selfie Check-in Allows passengers to save time and check in from wherever they are World s first app to use facial recognition to allow customers to check in Only Brazilian airline with this technology ensures best-in-class passenger experience for high value customers Functional Aircraft Services + Smiles Loyalty Program + GOL+ Conforto Eco-Leather Seats provide comfort during journeys New Products / Onboard service Customers who purchase a GOL+ Conforto seat are given priority when boarding and checking in Best network The leading frequent flyer program in Brazil, with over 13mm members Market cap of US$3bn Key differentiator, critical driver of customer loyalty Best Customer Experience On-board Wi-Fi with full entertainment platform and domestic premium lounges 47
3. Best in class operations and service GOL s product Superlative positioning CUSTOMER MIX On-board Wi-Fi Live TV Free beverages (non- alcoholic) Free snacks On-board sales Tier Elite Cabin segmentation Airport lounges Designated seats Pitch between seats Leisure/ Business Leisure Leisure/SMEs Leisure/ Business Leisure/ Business Domestic Leisure/ Business Leisure/ Business 34 /30 28 /30 30 29 34 /30 36 */34 /31 33 /31 * First class 48
3. Best in class operations and service New on product Personalization 49
3. Best in class operations and service New on product Segmentation Priority access Best fares Cordiality On-time departures Entertainment On-board services 50% REVENUE 50% REVENUE 19% PAX 81% PAX Smiles Elite GOL+Conforto GOL Premium Premium Lounges 50
3. Best in class operations and service New on product Segmentation 51
4. Right-sized balance sheet with strong liquidity Only Brazilian airline with track record of transforming capital structure and fleet 2015-2016 First Phase: Capital Structure Resizing Main Actions Taken & Next Steps 2016-2017 Second Phase: Operational Transformation 2017-2018 Third Phase: Balance Sheet Management Capital Structure Resizing Across the Board: All Key Stakeholders Leased fleet right-sizing 20 Aircraft re-delivered to Lessors, reducing adjusted leverage by ~R$1.8bn Owned fleet right-sizing 9 aircraft sold and capital leases prepaid, resulting in debt reduction of +R$400mm mm and net cash proceeds of +R$200mm Strategic Partner Support Delta and Boeing relationship support provided over R$800mm in liquidity improvements Shareholder and Employee Support Controlling shareholders and Delta funded over R$460mm of new equity and provided credit support of ~$R1bn, while employees agreed to reduce and defer compensation Debtholder Support Debenture holders deferred amortization of capital, and bondholders were offered the opportunity to voluntarily move-up in the capital structure and secure collateral, terming out R$225mm in principal payments and reducing debt by +$R330mm Actions taken resulted in strong adjusted deleveraging from R$17bn to R$13bn 1 (1) Gross debt in 2015 and 2016, respectively 52
4. Right-sized balance sheet with strong liquidity Significantly strengthened liquidity position and pre-financed capex obligations Increased liquidity 1 (total liquidity) (R$mm) 23,3% 21,4% Liquidity / LTM Net Revenues (%) 18,6% 19,5% 20,6% 17,8% 15,5% Capex obligations and financings PDP obligations ~R$300mm Obligations through 2019 financed by SLBs 2.329 2.128 1.829 1.922 2.118 1.517 1.770 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Capitalized maintenance ~R$500mm Support from Delta and Air France KLM (performs majority of overhauls) Finimps credit facilities with Brazilian banks Ex-Im Bank guarantees for MRO Other ~R$100mm Ex-Im Bank guaranteed financings (Wi-fi) (1) Liquidity: Cash, equivalents, short term investments, restricted cash and receivables. 53
4. Right-sized balance sheet with strong liquidity Unencumbered Assets and Solid Partnerships GOL s Liquidity Assets Smiles 53% stake in Smiles provides monetizable asset, borrowing collateral base, and strong recurring cash flow Equity in Finance Lease Aircraft 31 aircraft under finance leases with Ex-Im Bank guarantee Best Strategic Partners Delta is a strong supportive shareholder of GOL, with 9.5% equity stake, long-term commitment, and the strongest codeshare in Latin America Delta guarantees a US$300mm outstanding loan and provides credit support for GOL s engine overhauls Best-practices sharing among Delta and GOL allows cost savings and efficiency initiatives, and incorporates knowledge and experience to technicians and crews Non-securitized receivables Travel agencies, cargo, freight and international sales receivables that have not been factored Air France KLM holds 1.2% of GOL s share capital, in an alliance that significantly expands GOL s geographic reach 54
5. Uniquely positioned to benefit from Brazil macro GOL led market in rationalizing capacity, delivering yield and margins GOL reacted faster than competitors: lower demand (% CAGR) 3,0% 2010-2014 2015 vs. 2014 2016 vs. 2015 6,0% 2,0% 6,0% 1,0% 2,0% GOL led the decrease in domestic ASK (Available seat kilometers) 44.110 43.373 43.450 +5% reduction y-o-y, ~7 % from peak 41.104 41.164 (5,0%) (6,0%) ALTA Carriers (LatAm) Brazil Domestic GOL 2013 2014 2015 2016 LTM GOL s yield has strongly outperformed industry 1 GOL RASK-CASK spread has improved 1 (R$ cents) 23,6 21,4 19,7 19,5 25,5 24,8 24,5 24,1 23,8 23,4 22.4 Industry GOL 24,1 2011 2012 2013 2014 2015 2016 2017 (R$ cents) 23,7 21,8 23,4 24,1 24,0 20,9 19,2 18,3 18,0 17,5 17,4 15,5 15,6 15,0 (1) Industry RASK/CASK 23,5 23,1 23,2 22,7 22,4 22,8 20,3 20,0 21,3 19,3 19,7 19,8 GOL RASK/CASK 2011 2012 2013 2014 2015 2016 2017 23,1 22,3 22,0 20,3 (1) 1.7 Note: Industry = average of Latam Brasil, Azul Brasil, and Avianca Brasil (excludes GOL). (1) Industry LTM 9M17 for GOL and Azul; 6M17 for Latam BR; no Avianca data for 2017. Source: ANAC, adjusted by the stage length. 55
5. Uniquely positioned to benefit from Brazil macro Improving competitive backdrop, healthy supply-demand balance, and improving macro Publicly traded airlines represent ~90% of capacity Resulting in more rational competition (RPM in millions / Gross yield in $R cents) 36 35 GOL RPK (LTM) GOL Yield LTM 34 33 32 GDP growth Q vs.q 31 1,0% 30 (2,3%) 0,2% (0,3%) 29 (1,3%) (1,4%) (0,9%) (1,0%) (0,6%) (0,5%) 28 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 GOL s IPO 2004 2011 LAN-TAM merger Azul s IPO 2017 2018 Avianca Brasil - part of Avianca Holdings? And will have foreign airline investment Delta LATAM Hainan United Brazil GDP growth 10,7% 14,3% 13,7% Inflation 6.3% Source: ANAC, Brazil Central Bank. (1) Average LTM gross sales yield (considers tickets sold and not yet flown). Note: 3Q17 figures are preliminary and unaudited. Industry is the average of LATAM Brazil, Azul Brazil, and Avianca Brazil). 29 27 25 23 21 10% 100% 29% (3.8%) (3.6%)? GDP LATAM Brasil Azul Brasil Avianca BR 9,8% Interest rates 3,1% 4,0% 0,7% 2015 2016 2017E 2018E 6,9% 2,5% 56
Finance 57
GOL s Conservative Financial Policy Asset finance policy Matches USD assets and USD liabilities Aircraft: Acquisition of B737 aircraft (market value in USD, accounted in BRL in FS) financed at below market rate (3%-5%) USD long term (12 year), Exim-guaranteed debt and USD bonds Air Transportation: Passenger receivables financed by suppliers Loyalty program: Cash from sales of miles financed by clients (consumers and banks) Cash management policy Maximizes exposure to BRL-USD interest rate and PPP differential Liquidity in BRL interest earning assets Minimum operating cash balances in foreign operations Leverage policy Hedging policy Maintains conservative long-term capitalization Public market equity sources Net financial debt of 3x EBIT margin of 12% Matches cash flows Hedges foreign exchange, oil price and interest rate risk Hedge books cover up to 24 months of exposure Adequate credit lines in place 58
Strong margins and cash flow generation The Company s financial profile has gone from strength to strength Net revenue (R$MM) $8,104 EBITDA and EBITDAR (and margins) (R$MM) Net capex 1 Operating cash flow 2 (R$MM) $8,956 $10,066 $9,778 $9,867 $10,262 2012 2013 2014 2015 2016 LTM 3Q 2017 ($386) 2012 2013 2014 2015 2016 LTM 3Q 2017 R$ 474 R$ 289 R$ 245 R$ 435 R$ 439 R$ 673 2012 2013 2014 2015 2016 LTM 3Q 2017 3,2% (4.8%) EBITDAR EBITDA (R$Bn) $258 -R$ 0,5 17,0% 18,0% 13,7% 21,7% 20,6% 9,2% 9,6% $1.526 $827 $968 R$ 1,0 $1.813 -R$ 0,1 $236 2,4% $1.336 -R$ 0,7 $1.144 11,6% 12,4% R$ 0,8 $2.141 $2.117 $1.284 R$ 1,5 2012 2013 2014 2015 2016 LTM 3Q 2017 Note: 3Q17 figures are preliminary and unaudited. (1) Net of pre-delivery payments. (2) Net income adjusted for non-cash items and change in working capital. 59
Prudent balance sheet management GOL s credit profile has markedly improved Balance sheet deleverage (net debt ex-perp.) (R$MM) 10,2x 8,0x 5,6x 4,2x Net debt (ex. perp) / LTM EBITDA 5,2x 4,2x 3,4x Short term debt reduction (R$MM) 2,8x 2,1x 2,5x 2,3x 2,1x 2,4x Liquidity / Short term debt 3,6x 5.416 5.016 4.773 4.789 4.976 4.868 4.345 837 998 743 835 727 728 586 Increased interest coverage (R$MM) 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 2,3x 2,4x 2,6x 2,0x 1,8x 2,7x 2,8x 1,7x 1,5x 1,5x 1,0x 1,2x 0,8x 0,9x 1,2x 1,1x 1,2x 1,3x 0,9x 0,6x 0,7x 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Increased liquidity 1 (Total liquidity) (R$MM) Liquidity / LTM Net Revenues (%) 23,3% 21,4% 18,6% 19,5% 15,5% 17,8% 20,6% 1.743 1.878 2.100 2.141 1.867 2.028 2.117 2.329 2.128 1.829 1.922 1.517 1.770 2,118 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 LTM EBITDAR LTM EBITDAR/Interest+Rent LTM EBITDA/Interest Exp. LTM EBITDAR/Interest Exp. 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Note: 3Q17 figures are preliminary and unaudited. (1) Liquidity: Cash, equivalents, short term investments, restricted cash and receivables. 60
Prudent balance sheet management Repayment schedule Pro forma debt maturity profile 1 (R$MM) Pro forma Liquidity 2 3Q 2017: R$2,641 million R$1.317 R$1.211 R$460 R$653 R$232 R$346 R$66 2018 2019 2020 2021 2022 2023 After 2023 GOL is well-capitalized with call options on its bonds and market loan backed by Delta All senior secured bonds totaling ~US$75mm have par call options The outstanding US$117mm 9.25% 2020 senior unsecured notes have a call options at 101.542 US$300mm Delta secured 2020 term loan is callable as early as next year Outstanding US$277mm 8.875% 2022 notes partially tendered (1) As of September 30, 2017, without interest expense, assumes prevailing exchange rate on September 30, 2017 of R$3.168 per USD$1; Assumes USD350MM offering with 60% of 2022s tendered and USD21MM of transaction costs (2) Liquidity: Cash, equivalents, short term investments, restricted cash and receivables. 61
Prudent balance sheet management US$500mm in New 7.000% 7NC4 Notes due 2025 Liability Management Sources: US$500MM Senior Unsecured Notes due 2025 Uses: Tender Offer 2022 - US$200MM Cash US$300MM Duration: increased from 4.2 years to 6.8 years Blended cost of debt: reduced from 8.3% to 7.9% Financial expenses reduction: R$15MM/year Total Liquidity / LTM Revenue: from 21% to 26% Increased liquidity for bondholders: index-eligible 62
Prudent balance sheet management US$500mm in New 7.000% 7NC4 Notes due 2025 Transaction Terms New Issue 12/06/2017 17% US$500,000,000 GOL Finance 7.000% 7NC4 Senior Unsecured Notes due 2025 2% 1% 9% 1% Asset Manager Private Bank Pension Fund Allocation by Type 70% Hedge Fund Bank Portfolio Insurance Issuer: Security Ratings: 41% Gol Airlines (via Gol Finance) 6% 4% Exp. B- / B (S&P/Fitch) Format: 144A / Reg S Size: US$500,000,000 Date: December 6 th, 2017 Settlement: December 11 th, 2017 (T+3) Maturity: January 31 st, 2025 Spread to UST: T+500 Yield: 7.250% Coupon: 7.000% Price: 98.604% Allocation by Region 50% US EMEA LATAM APAC Transaction Highlights On Dec. 6, 2017, GOL priced US$500mm of new 7.0% 7NC4 Notes due 2025: The largest debt issuance ever priced by GOL The lowest ever coupon and yield for GOL The largest bond deal for a Brazilian airline in 2017 Highlights: Roadshow: +100 investors in the US, Europe and Asia Announcement: IPT at mid 7% for US$350mm Two day execution strategy Orderbook: oversubscription of 4.0x Deal upsized to US$500mm and 7.250% Pricing Outcome: 98.604% to yield 7.250% (500bps spread vs 7yr UST) Conclusion of any and all tender offer for 8.875% 2022 (avg life 4.1 years) at a price of 106.50% Extended from 2022 to 2025 at a flat credit spread curve and GOL repriced its secondary curve 70bps lower in the context of this debt Re- IPO exercise Use of Proceeds: general corporate purposes and a portion used to finance a concurrent any and all tender offer with 67% participation 63
Prudent balance sheet management Greatly Improving Deal Results Transaction Performance Analysis Historical Yield Performance (%) # of Orders: 96 O/S: 2.6x Ratings: (-/B-/B-) # of Orders: 101 O/S: 2.1x Ratings: (-/B-/B) # of Orders: 200 O/S: 2.4x Ratings: (-/B-/B) 1.223 50 45 40 35 835 30 25 20 325 200 421 500 15 10 5 Oct-07 Oct-09 Oct-11 Oct-13 Oct-15 Oct-17 GOL 7.500% 2017 issued 03/2017 GOL 8.875% 2022 issued 09/2014 GOL 10.750% 2023 issued 02/2013 GOL 7.000% 2025 issued 12/2017 GOL 9.250% 2020 issued 07/2010 GOL 10.750% 2023 issued 02/2013 Size Indication GOL 8.875% 2022 issued 09/2014 64
Prudent balance sheet management Yield Curve Analysis Brazil CDS 5yr Curve 600 500 400 300 200 100-46 124 170 FED REPUBLIC OF BRAZIL '23 FED REPUBLIC OF BRAZIL '25 41 308 350 COSAN LTD '24 COSAN LUXEMBOURG SA '27 223 PETROBRAS GLOBAL FINANCE '22 71 294 PETROBRAS GLOBAL FINANCE '25 60 195 255 UNITED CONTINENTAL HLDGS '22 UNITED CONTINENTAL HLDGS '24 415 BOMBARDIER INC '22 92 GOL paid 0bps to extend, while comparables trade with an average spread curve of ~70bps from the 4yr to 7yr part of the curve 507 BOMBARDIER INC '24 500 400 300 200 100 0 500 0 500 GOL 2022 Buyback New 7yr at 7.25% 0 65
GOL s proprietary hedging policy in practice 1 2 Triggers Pre-set execution Set for both FX and fuel, based on deviation of FX rate / Fuel price vs. projected levels. Revised periodically Kicks in when triggers are reached 3 Position review Net exposure to WTI / FX reviewed and adjusted for correlation Current hedge position in WTI reflects policy 1 41% More than 3 million barrels hedged Average price hedged: $47 (WTI/bbl) 15% 22% 10% Hedge ratio 7% 5% 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Note: Figures converted at 3Q17 end-of-period exchange rate of $3.1680. (1) Hedge position built during 2Q17. (2) Capital leases. 66
GOL The last 18 months (In R$ millions unless otherwise stated) GOL 2015 (31-Dec LTM) GOL 2017 (30-Sep LTM) Δ Fleet size (EOP) 132 120 (9%) LTM fleet growth 2.3% (2.7%) 5 p.p. Departures 315,902 249,604 (21%) ASK 49,742 46,281 (7%) ASK per aircraft 377 386 2% LTM ASK growth 0.5% (1.6%) 2.1 p.p. RASK - CASK spread (R$ cent) (0.36) 1.69 2.05 Load factor 77.2% 78.9% 1.7 p.p. EBIT (183) 1,042 1,225 EBIT margin (1.9%) 10.2% 12.1 p.p. EBITDA 236 1,284 444% EBITDA margin 2.4% 12.4% 10.0 p.p. Gross debt 9,305 5,501 (1) -41% Liquidity (2) / LTM Revenues 28.2% 20.6% -7.6 p.p. Net debt 7,005 4,345 (1) -38% Adj. Net debt (3) 14,705 10,176 (1) -31% Net debt / LTM EBITDA 29.6x 3.4x (1) -26.2x EBITDAR / Interest expense + rent 0.3x 1.3x (1) 1.0x Note: 3Q17 figures are preliminary and unaudited. (1) Excludes perpetual bonds (R$419.7mm). (2) Liquidity: Cash, equivalents, short term investments, restricted cash and receivables; (3) Adjusted net debt: Net debt + LTM operating lease expenses x 7. 67
Recent performance GOL had an outstanding September quarter, with solid results YTD 17.0% EBITDA margin and 12.0% operating margin, up 3.7 p.p. and 2.9 p.p., respectively, above 3Q16 margins Fifth consecutive quarter of positive operating profit Reduction in net debt (1) of R$377 million vs. 2Q17 3Q 2017 Recurring operating (EBIT) margin 12.0% (Up 2.9 p.p.) 9.3% (Up 5.3 p.p.) 9M17 Ancillary revenue and change q-o-q 11.9% of Total Rev. (Up 0.7 p.p.) 13.4% of Total Rev (Up 1.3% p.p.) Passenger unit revenue (PRASK) change q-o-q Up 9.2% Up 4.1% EPS fully diluted R$0.94 R$0.04 Fuel price (change q-o-q ) Average exchange rate to US$ R$1.99 (Up 1.7%) R$3.16 R$2.03 (Up 4.7%) R$3.18 CASK ex-fuel expenses (1) (change q-o-q) R$ cents 14.08 (Up 7.1%) 13.99 (Down 1.2%) GOL System capacity (ASK) change q-o-q Up 4.5% Down 0.1% GOL System capacity (Seats) change q-o-q Up 2.4% Down 5.7% Operating Cash Flow (R$mm) 882 1,093 Operating Cash Flow Margin 32.5% 14.4% Total Liquidity Up 19.6% Up 10.2% Net Debt / EBITDA (2) 3.4x 3.4x Note: 3Q17 figures are preliminary and unaudited. (1) Excluding non-recurring expenses; (2) Excludes perpetual bonds and based on LTM EBITDA as of the period end 68
2018 Preliminary Full Year Guidance General Guidance (Consolidated, IFRS) 2017E Previous 2017E Revised 2018E Preliminary Operating fleet (average) 115 116 118 ASKs, System (% change) + 0.5% + 0.5% 1% to 3% - Domestic - + 0.5% 0% to 3% - International - + 0.2% 7% to 10% Seats, System (% change) - 2% - 3% 1% to 3% Departures, System (% change) - 4% - 5% 1% to 3% Average load factor (%) 79% 79% 79% to 80% Cargo and other revenues (R$ billion) - R$1.4 R$ 1.6 Total net revenues (R$ billion) R$10.3 R$10.4 R$11 Non-fuel CASK (R$ cents) 13.7 14 15 Fuel liters consumed (mm) - 1,370 1,400 Fuel price (R$ / liter) - 2.1 2.2 Aircraft rent (R$mm) R$1,000 R$ 950 R$ 950 EBITDA margin (%) 14% 14% 16% Operating (EBIT) margin (%) 9% 9% 11% Capital expenditures (R$mm) - 600 600 Net Debt 1 / EBITDA (x) 3.4x 3.4x 3.0x Fully-diluted shares outstanding (million) 347.7 347.7 347.7 Earnings per share fully diluted 2 (R$) 0.80 a 0.90 0.80 to 0.90 1.20 to 1.40 Fully-diluted ADS outstanding (million) 3 173.8 173.8 173.8 Earnings per ADS fully diluted 2, 3 (US$) 0.50 to 0.56 0.50 to 0.56 0.75 to 0.90 (1) Excluding perpetual notes. (2) After minority interest. (3) 2017E Previous adjusted for change in share to ADR ratio from 5:1 to 2:1. Downside risks: Q4 fares, external shocks, or capacity growth 69
GOL Operating Fleet Plan Aircraft Type Configuration 2017 2018 2019 2020 2021 2022 Capacity: 138 pax Range: 5,570 km Type: 737-700 Capacity: 177 pax Range: 5,440 km Type: 737-800 Capacity: 186 pax Range: 6,510 km Type: 737-800 MAX 24 25 22 21 16 16 91 91 89 86 83 78-5 1 13 21 34 43 TOTAL 115 121 124 128 133 137 (1) Sale lease-back announced on Sep 5 th 2017 will increase the number of Boeing 737 MAX 8 aircraft planned for 2018 from five to six, without changing overall fleet plan of 121 aircraft at year-end 2018 (redelivery of 737-700 or 737-800 to be defined). 70
Revenue recognition standard CPC 47 (IFRS15) January 1, 2018 Recognition of ancillary revenues directly linked to the air transport service: only when the ticket is used Reporting: From Auxiliary revenue to Revenue Passenger Impacted GOL s Revenues: Pet in cabin Baggage Allowance Transportation of Special Material Special Seats Remarking rate Excess/ Baggage Allowance Cabin Upgrades No show fees Cancellation fees Customer service fees 71
Impacts New FASB revenue recognition standard Estimated impact upon adoption on January 1, 2018: Certain Ancillary fees currently reported as other revenue will be reclassified as passenger revenue : R$600 million annually Late February 2018, updated 2017 financial statements will be filed in a form 6K to conform with these changes Balance sheet: approximately R$30 million increase to liability for outstanding ancillary revenues Income statement: In accordance with GAAP, the prior year will be adjusted for comparison purposes to reflect approximate R$5 million increase in passenger revenue and pretax income For modeling purposes, this adjusted passenger revenue and pretax income will become the new 2017 base 72
Q&A 73
Closing remarks 74
GOL today Better relative value 1 2 3 4 5 Fortress network - #1 in business traffic and the routes that matter The best positioned for Brazil recovery The best results in recent history Strengthened liquidity and balance sheet Proven track record of managing through all cycles 75
Disclaimer This material has been prepared by Gol Linhas Aéreas Inteligentes S.A. ( GLAI ) and Smiles Fidelidade S.A. ( Smiles ) and includes certain forward-looking statements that are based principally on the sectors current expectations and on projections of future events and financial trends that currently affect or might affect their business, and are not guarantee of future performance. They are based on management s expectations that involve a number of business risks and uncertainties, any of each could cause actual financial condition and results of operations to differ materially from those set out in such forward-looking statements. Any information, data, forecasts or future plans reflect estimates and can not be taken as concrete evidence or promise to the market. GLAI and/or Smiles are not responsible for investment operations or decisions taken based on information contained in this presentation. This material is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Likewise it does not give and should not be treated as giving investment advice. It has no regard to the specific investment objectives, financial situation or particular needs of any recipient. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. Any opinion expressed in this presentation is subject to change without warning by the companies. GLAI and Smiles undertakes no obligation to publicly update or revise any forward looking statements. 76
Investor Relations ri@smiles.com.br +55 11 4871-2020 www.smiles.com.br/ir Investor Relations ri@voegol.com.br +55 11 2128-4700 www.voegol.com.br/ir 77