MISSION VISION VALUES TO BRING PEOPLE TOGETHER SAFELY AND SMARTLY TO BE THE BEST AIRLINE TO FLY WITH, WORK FOR AND INVEST IN SAFETY, INNOVATION, CLIENT, FOCUS, RESULTS-DRIVEN AND SUSTAINABILITY GOL DAY - NY JUNE, 2012
INSTITUTIONAL PRESENTATION 01:: GOL IS A STRONG PLAYER 02:: STRONG AND SUSTAINABLE POSITION IN KEY AIRPORTS 03:: CAPACITY MANAGEMENT 04:: COST EX-FUEL ADVANTAGE 05:: SMILES 06:: STRONG BALANCE SHEET 07:: CORPORATE GOVERNANCE
DISCLAIMER The material that fllws is a cnfidential presentatin f general backgrund infrmatin abut GOL Linhas Aéreas Inteligentes S.A. and its subsidiaries (cllectively, Gl r the Cmpany ) as f the date f the presentatin. It is infrmatin in summary frm and des nt purprt t be cmplete. N representatin r warranty, express r implied, is made cncerning, and n reliance shuld be placed n, the accuracy, fairness, r cmpleteness f this infrmatin. This cnfidential presentatin may cntain certain frwardlking statements and infrmatin relating t Gl that reflect the current views and/r expectatins f the Cmpany and its management with respect t its perfrmance, business and future events. Frward lking statements include, withut limitatin, any statement that may predict, frecast, indicate r imply future results, perfrmance r achievements, and may cntain wrds like believe, estimate, anticipate, expect, envisages, will likely result, r any ther wrds r phrases f similar meaning. Such statements are subject t a number f risks, uncertainties and assumptins. We cautin yu that a number f imprtant factrs culd cause actual results t differ materially frm the plans, bjectives, expectatins, estimates and intentins expressed in this presentatin. In n event, neither the Cmpany nr any f its affiliates, directrs, fficers, agents r emplyees, shall be liable befre any third party (including investrs) fr any investment r business decisin made r actin taken in reliance n the infrmatin and statements cntained in this presentatin r fr any cnsequential, special r similar damages. This presentatin des nt cnstitute an ffer, r invitatin, r slicitatin f an ffer, t subscribe fr r purchase any securities. Neither this presentatin nr anything cntained herein shall frm the basis f any cntract r cmmitment whatsever. The market and cmpetitive psitin data, including market frecasts and statistical data, used thrughut this presentatin was btained frm internal surveys, market research, independent cnsultant reprts, publicly available infrmatin and gvernmental agencies and industry publicatins in general. Althugh we have n reasn t believe that any f this infrmatin r these reprts are inaccurate in any material respect, we have nt independently verified the cmpetitive psitin, market share, market size, market grwth r ther data prvided by third parties r by industry r ther publicatins. Gl des nt make any representatin as t the accuracy f such infrmatin. This presentatin and its cntents are prprietary infrmatin and may nt be reprduced r therwise disseminated in whle r in part withut GOL s prir written cnsent. 3
01:: GOL IS A STRONG PLAYER
LARGEST LOW COST AIRLINE IN LATIN AMERICA (BM&FBvespa: GOLL4 e NYSE: GOL), (S&P: B+ / Fitch: B+ / Mdy`s: B3) NUMBERS 11 YEARS COMPLETED ON JANUARY 15, 2012 810 FLIGHTS PER DAY OVER 35 MILLION PASSENGERS IN 2011 GOL S MILEAGE PROGRAM, SMILES: OVER 8.5 MILLION PARTICIPANTS 6 YEARS OF OPERATIONS 140 FLIGHTS PER DAY OVER 5 MILLION PASSENGERS IN 2011 28 AIRCRAFTS 94% OF INTERNET SALES 1Q12 LTM NET REVENUES R$7.8 BILLION 123 AIRCRAFTS UTILIZATION RATE 1Q12 12.9 BLOCK HOURS 6 MONTHS NET REVENUES f R$600 MILLION 5.8% DOMESTIC MARKET UTILIZATION RATE 11.2 BLOCK HOURS SHARE 35.8% DOMESTIC MARKET SHARE 5
11 YEARS OF COMPANY S ACCOMPLISHMENTS GOL was funded in 2001 with ne missin: T demcratize air travel in Brazil and thrughut Suth America PROFILE Lw-cst, lw-fare platfrm: Implementatin f Varig s and Webjet s Acquisitins (2007 and 2010) the Cncept in the Brazilian Airline Industry Delta Strategic Partnership / Delta TechOps Agreement Efficient aircraft utilizatin Electrnic Ticket: Replacement f Barding Pass Innvatin Relatinship with Being: Aircraft Imprvements Largest e-cmmerce platfrm in SFP: Landing n Shrter Runways Latin America RNP: Reducing Fuel Cnsumptin Standardized fleet f B737 NG aircraft Buy n Bard and Gl in the air 63 dmestic and 13 internacinal destinatins Web Check-in Ve Fácil : Installment Prgram 6
02:: STRONG AND SUSTAINABLE POSITION IN KEY AIRPORTS 7
COMPANY S DOMINANT POSITION IN THE WORLD CUP AIRPORTS Largest rute netwrk in Latin America with high frequency in majr cities AIRPORTS SLOTS IN WORLD CUP S AIRPORTS Restricted Airprts 1 2 Cngnhas Guarulhs 117 105 96 107 45 24 13 11 12 3 Sants Dumnt 65 52 65 9 4 Galeã 83 57 31 14 5 7 5 6 Brasília Cnfins 93 63 24 93 74 44 6 7 Salvadr 55 30 45 10 1 2 3 4 8 9 Prt Alegre Recife 38 34 27 30 38 32 8 10 Curitiba 52 31 45 Cities hsting Ftball Wrld Cup games (1) INFRAERO (2) Surce: Htrans apprved n 07/01/2011 (3) Surce: ANAC Annual Reprt Cabtage peratins (ex:gig-poa-freign) are cnsidered as dmestic Only Friday frequencies were cnsidered TAM cnslidates Tam Grup + Pantanal Subtitle: Others 11 12 13 14 Frtaleza Natal Manaus Cuiabá 8 29 11 14 8 15 12 33 35 16 8 14 8
GUARULHOS AIRPORT PRIVATIZATION BENEFITS Privatizatin bsts internatinal and dmestic traffic in a GOL s well psitined airprt PRIVATIZATION: FIRST ROUND GUARULHOS BRASÍLIA VIRACOPOS GUARULHOS SÃO PAULO Privatizatin s investments benefit GOL s strng psitin in Guarulhs Bsts internatinal and dmestic traffic Cnstructin f a terminal t attend at least 7 millin passengers per year Increase f internatinal passengers by allwing larger aircraft t perate in Guarulhs. Imprvement in dmestic demand by internatinal passengers in flight cnnectins 9
03:: CAPACITY MANAGEMENT
CAPACITY RATIONALIZATION RATIONALIZING A MARKET THAT HAS BEEN GROWING AN UNSUSTAINABLE MANNER Cnslidated Dmestic Supply FLEXIBLE CAPACITY MANAGEMENT Webjet s Acquisitin Allw Fleet Flexibility t Manage Capacity 50.2 49.2 Early Return f 15 B737-300 Aircraft at n cst Reductin f apprximately 100 Flights/day 2011 2012 + GOL + Webjet Reductin f less prfitable peratins: Night flights (at early hurs) and lnger flights IN 2012, GLAI* IS GROWING INORGANICLY THROUGH WEBJET ACQUISITION, RACIONALIZING THE + MARKET * GOL + Webjet, cnsidering Webjet after ctber 3rd, 2011 11
04:: CASK EX-FUEL ADVANTAGE
CASK EX-FUEL (LTM) CASK EX-FUEL ADJUSTED BY THE AVERAGE STAGE LENGTH IN DOLLAR* 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 4.9 5.0 5.1 4.9 5.0 5.3 5.5 5.5 4.7 6.4 6.6 6.6 6.8 6.9 7.1 7.3 7.1 7.0 8.7 8.9 9.1 9.4 9.5 9.8 9.9 9.8 9.7 4.9 5.0 5.0 5.1 5.1 5.1 5.1 5.3 5.6 8.3 7.8 7.7 7.9 7.7 7.9 7.8 8.5 8.9 6.4 6.4 6.2 6.6 6.0 5.8 5.8 5.6 5.9 6.0 5.7 5.7 6.0 6.1 5.8 5.6 5.9 6.3 EVEN WITH ASK REDUCTION, AND THE FX SCENARIO, CASK EX-FUEL FOR 2012 WILL REMAIN AT THE SAME LEVEL AS 2011, REFLECTING THE COMPANY EFFORTS * Quarter average dllar **Cmpany s earnings releases 13
05:: SMILES
SMILES DEVELOPMENT SMILES: Hidden asset gives high flexibility ptential Strategic Airline Partnerships Increases traffic t GOL s netwrk Additinal value t SMILES: lng-haul flights Integratin f mileage prgram 81% YOY grwth n redemptin Main Airline Partners Accrual Redemptin Over 180 partners Over 8.5 mm clients Miles Redemptin Thrugh Website Easier and mre cnvenient way t issue tickets Alternative Miles redemptin by call center Jun/12 Aug/12 Main Financial Partners COBRANDED Flight t Miami 100% f Lad Factr* * Available Seats 15
SMILES GROWTH OPPORTUNITY Smiles is being treated as separate business unit Lyalty Market Penetratin (as % f ppulatin) Grwth f Frequent Flyer Prgram Members Smiles 3,8% 60% Multiplus 4,4% 40% LANPASS 23,7% Flying Blue Nectar 27,3% 27,6% 20% Airmiles 31,0% 0% Qantas Prgram 35,7% FlyBuys Australia FlyBuys 46,9% 52,8% BRAZILIAN CREDIT CARD MARKET GROWTH: ~20-25% New Zealand 16
06:: STRONG BALANCE SHEET
NO RISK OF REFINANCING OR PRESSURE ON THE SHORT TERM Amrtizatin f Financial Debt R$ millins ANNUAL MATURITY (R$ in millin) Excluding Financial Leasing R$362 674 410 911 22 258 256 191 11 49 89 2012 2013 2014 2015 2016 2017 2018 2019 Após After 2019 R$ Debt US$ Debt 1-18
1Q12 RESULTS MAIN FINANCIAL INDICATORS Indicatrs shw a trend t imprve in the cming quarters 25.9% 29.0% 29.6% 31.1% 27.6% 4.4x 3.4x 1,880 2,076 2,187 2,348 2,157 1,542 1,200 2.5x 943 1.6x 1.3x 656 571 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 Ttal Cash (R$MM) Ttal Cash / Net Revenues (LTM) EBITDAR LTM (R$MM) EBITDAR / Interest Expenses 6.0x 6.1x 5.0x 5.1x 4.6x 13.0x 14.9x 313 342 442 464 469 7,344 4.8x 7,612 6.3x 8.6x 8,142 8,527 8,503 1Q11 2Q11 3Q11 4Q11(*) 1Q12 Shrt-term Debt (R$MM) Ttal Cash / Shrt-term Debt 1Q11 2Q11 3Q11 4Q11 1Q12 Adjusted Grss Debt Adjusted Grss Debt / EBITDAR (LTM) (*) Excludes Reclassificatin fr Shrt-Term Debentures 19
HEDGE STRATEGY IS CONSERVATIVE, NON-SPECULATIVE GOL s Financials Aspects Hedge Strategy Currency: USD Hedge Fuel Hedge (as f June) Current Psitin Current % Average HR If triggers reached Maximum % Average HR Interest Rates: Aircraft financing Fuel Hedge: 100% Prxy Brent 3 mnths 31% 31% 6 mnths 24% 24% 12 mnths 12% 12% 24 mnths 9% 12% 36 mnths 7% 11% THE COMPANY IS STRETCHING THE FUEL HEDGE BY HAVING A PROACTIVE APPROACH 20
07:: CORPORATE GOVERNANCE
HIGH CORPORATE GOVERNANCE STANDARDS Highest Standards f Crprate Gvernance 25% minimum dividend payut rati, as required under Brazilian law Last dividend paid in 2011 (year ended in 2010) 3 independent members, including Chairman (july 2012) Management cmpensatin aligned with sharehlders Active Bard f Directrs & Aligned Management Dividend Plicy Safety Standards VRG awarded with IOSA Certificatin (IATA Operatinal Safety Audit Prgram) Cnslidated peratinal safety audit prcedures Risk & Finance Audit Mst Imprved Financial Disclsure Prcedures Best CEO elected by the Sell-Side Practive Advisry Cmmittees Cmpensatin High Listing Standards 100% tag-alng rights fr nn-vting PN sharehlders Cmpliant with the NYSE and SEC Crprate Gvernance Standards Cmpliant with Sarbanes-Oxley Best CEO elected by the Buy-Side Best CFO elected by the Buy-Side Best CFO elected by the Sell-Side Best Ranked IR Websites 22
GOL ANNOUNCED NEW CHIEF EXECUTIVE OFFICER Cnstantin de Oliveira Junir Will be elected as Chairman f the Bard f Directrs. Paul Sergi Kakinff was elected as the new Cmpany s CEO The changes were defined within the strict gvernance standards, with participatin f the Bard f Directrs during all the prcess. Transitin will take 90 days. Paul Sergi Kakinff Will be invested in the new psitin as the CEO as f July 2nd, 2012. Over 2 years f experience as a Bard f Directrs member. Leaves Vlkswagen Grup, where he served fr 19 years, and was the President f Audi Brazil. Prir t the presidency f Audi Brazil, Paul Sergi Kakinff was Sales & Marketing Directr at Brazil s Vlkswagen and Suth America Executive Directr at the headquarters f the Vlkswagen Grup in Germany. "The cming f Kakinff represents anther key mve in the Cmpany s crprate gvernance and will add recrds f achievement, and bring a new dynamic and extensive experience in management. Cnstantin de Oliveira Junir 23
CLOSING REMARKS GOL s strategy remains the same: priritizing simplicity abve everything else. These are the attitudes that are making GOL increasingly the best cmpany t fly with, wrk fr and invest in Cnstantin de Oliveira Junir LATIN AMERICA AVIATION INDUSTRY Number f passengers in Latin America is expected t triple in the next 20 years (438.9 millin passengers in 2030 vs. 145.9 millin in 2010)*. IN BRAZIL Infrastructure investments Main events cming (wrld cup and lympic games). Ratinal capacity additin GOL S STRENGTHS Flexibility t ratinalize supply in the dmestic market Dminant psitin in brazil s main airprts SMILES: Hidden asset gives high flexibility ptential Cst advantage: Lw-cst, lw-fare mdel Strng Balance Sheet High Standards f crprate gvernance *Surce: Oxfrd Ecnmics study cmmissined by IATA (Internatinal Air Transprt Assciatin) 24
GOL INVESTOR RELATIONS +55 11 2128-4700 ri@glnaweb.cm.br www.vegl.cm.br/ir THANK YOU!