Presentation January 2018
GOL today Better relative value 1 2 3 4 5 Fortress network - #1 in business traffic and the routes that matter Proven track record of managing through all cycles The best results in recent history Strengthened liquidity and balance sheet The best positioned for Brazil recovery 2
GOL is Brazil s favorite airline 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 The best poised to benefit from Brazil s Growth 33MM pax/year 13MM loyalty customers 120 B-737s 36% Market Share R$10 billion in annual net revenues R$8.0 billion R$0.3 billion R$1.7 billion 3
Brazil s best sponsored airline One of Boeing s most important 737 customers Over 250 737 aircraft operated to date Order for 120 737 Max 8 Boeing 31 current aircraft financed 40 aircraft financed in total MRO and Wi-Fi maintenance U.S. Exim Bank Constantino Group Brazil s largest transportation operators Board members with significant transportation experience and complementary profiles 61% 10% 2% (1) 28% Delta America s largest airline Total PAX in 2016: 183.7mm Operating fleet: 857 Market cap: ~US$42.0bn (largest of any airline) Invested >US$150MM in equity and US$300MM debt support GOL Board seat Air France/KLM Europe s #1 airline Total PAX in 2016: 93.4mm Operating fleet: 555 Market cap: ~US$4.6bn Invested $100MM Public Market High liquidity ~US$15mm daily volume High standards of disclosure Quarterly IFRS financials Supplementary disclosures IR Website Independent audit committee Publicly-traded loyalty program Note: Market data as of 12/31/2017. (1) Includes 0.3% shares in treasury. 4
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-defined low-cost operations Popularize air travel in South America Consumer-friendly image The leading brand in Brazil Differentiated and efficient service Safe, on-time operations 5
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 (1) Excluding non-recurring expenses; (2) Excludes perpetual bonds and based on LTM EBITDA as of the period end 6
GOL benchmark transaction US$500MM Senior Unsecured Notes due 2025 Uses: Tender Offer 2022 (US$185MM) Tender Offer 2020 (up to US$50MM) Calls Exercise 2018, 2021 and 2028 (US$75MM) Cash (US$180MM) Results: Duration: from 3.9 years to 6.3 years Blended cost of debt: from 8.3% to 7.9% Financial expense reduction: US$15MM/year Total Liquidity / LTM Revenue: from 21% to 26% Increased liquidity for bondholders: index-eligible 7
2017 fourth quarter guidance Preliminary and Unaudited Projection Commentary EBITDA Margin EBIT Margin Ancillary Revenue PRASK CASK Ex-fuel Capacity ASK Capacity Seats 4Q17 17.5%-18.5% 13.2%-14.2% 12.0% -12.2% N.R. 4Q17 vs. 4Q16 Up 7.0%-7.5% Up ~1.6% Up ~3% Up ~2% Operating margin for 4Q17 of 13.2% to 14.2% expected, +1.0 p.p. over 4Q16 (12.8%), excluding non-recurring expenses. Passenger unit revenue (PRASK) for 4Q17 is expected to be up 7.0% to 7.5% year over year. For 4Q17, expects unit revenue (RASK) to increase 7.0%-7.5%. Non-fuel unit costs (CASK ex-fuel), excluding non-recurring, expected to increase by approximately 1.0% in relation to 3Q17, and +1.6% versus same quarter of the prior year. 8
2018 preliminary full year guidance General Guidance (Consolidated, IFRS) 2018E Preliminary Operating fleet (average) 118 ASKs, System (% change) 1% to 3% - Domestic 0% to 3% - International 7% to 10% Seats, System (% change) 1% to 3% Departures, System (% change) 1% to 3% Average load factor (%) 79% to 80% Cargo and other revenues (R$ billion) R$ 1.6 Total net revenues (R$ billion) R$11 Non-fuel CASK (R$ cents) 15 EBITDA margin (%) 16% Operating (EBIT) margin (%) 11% Capital expenditures (R$mm) 600 Net Debt 1 / EBITDA (x) 3.0x Earnings per share fully diluted 2 (R$) 1.20 to 1.40 Earnings per ADS fully diluted 2 (US$) 0.75 to 0.90 (1) Excluding perpetual notes. (2) After minority interest. Downside risks: Q4 fares, external shocks, or capacity growth 9
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). 10
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 11
1. Unparalleled and irreplicable network Leading market position at key airports that represent 75% of Brazilian traffic 4 th largest domestic market in world >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% 12
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 sub-leased to another airline. (2) Fleet as of December 2016. (3) Fleet as of 2Q17, 17 aircraft not includedsubleased to third parties and 3 aircraft 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 Total fleet: 120 aircraft (1) (avg. age: 8 yrs) 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 13
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 Source: SAP and company filings. (1) For three months ended September 30, 2017 Max 8 would result in ~15% less fuel consumption (2) GOL: 2016 20-F and ex-rate R$3.483. Other companies last annual audited FS that represents up to 5% more EBIT margin (3) CASK adjusted for average stage length. (4) Copa, Latam Holdings and Avianca Holdings. (5) Avianca Brazil, Latam Brazil, and Azul 14
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 15
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 16
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 17
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$13bn 1 (1) Gross debt in 2015 and 2016, respectively 18
4. Right-sized balance sheet with strong liquidity Significantly strengthened liquidity position and pre-financed capex obligations Increased liquidity 1 (total liquidity) (R$mm) Liquidity / LTM Net Revenues (%) 23.3% 21.4% 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. 19
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$300mm outstanding loan and provides credit support for GOL s engine overhauls Best-practices sharing among Delta and GOL allows cost savings and efficiency initiatives, and incorporates knowledge and experience to technicians and crews Non-securitized receivables Travel agencies, cargo, freight and international sales receivables that have not been factored Air France KLM holds 1.2% of GOL s share capital, in an alliance that significantly expands GOL s geographic reach 20
5. Uniquely positioned to benefit from Brazil macro GOL led market in rationalizing capacity, delivering yield and margins GOL reacted faster than competitors: lower demand (% CAGR) 3.0% 2010-2014 2015 vs. 2014 2016 vs. 2015 6.0% 2.0% 6.0% 1.0% 2.0% GOL led the decrease in domestic ASK (Available seat kilometers) 44,110 43,373 43,450 +5% reduction y-o-y, ~7 % from peak 41,104 41,164 (5.0%) (6.0%) ALTA Carriers (LatAm) Brazil Domestic GOL 2013 2014 2015 2016 LTM GOL s yield has strongly outperformed industry 1 GOL RASK-CASK spread has improved 1 (R$ 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 (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 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 23.1 22.3 22.0 20.3 1.7 2011 2012 2013 2014 2015 2016 2017 (1) 2011 2012 2013 2014 2015 2016 2017 (1) 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. 21
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 $R cents) 36 35 GOL RPK (LTM) GOL Yield LTM 34 33 32 GDP growth Q vs.q 31 1.0% 30 (2.3%) 0.2% (0.3%) 29 (1.3%) (1.4%) (0.9%) (1.0%) (0.6%) (0.5%) 28 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 GOL s IPO 2004 2011 LAN-TAM merger Azul s IPO 2017 2018 Avianca Brasil - part of Avianca Holdings? And will have foreign airline investment Delta LATAM Hainan United Brazil GDP growth 10.7% 14.3% 13.7% Source: ANAC, Brazil Central Bank. (1) Average LTM gross sales yield (considers tickets sold and not yet flown). Note:. Industry is the average of LATAM Brazil, Azul Brazil, and Avianca Brazil). 29 27 25 23 21 Inflation 6.3% 10% 100% 29% (3.8%) (3.6%)? GDP LATAM Brasil Azul Brasil Avianca BR 9.8% Interest rates 3.0% 4.0% 1.0% 2015 2016 2017E 2018E 6.8% 2.7% 22
GOL s Conservative Financial Policy Asset finance policy Matches USD assets and USD liabilities Aircraft: Acquisition of B737 aircraft (market value in USD, accounted in BRL in FS) financed at below market rate (3%-5%) USD long term (12 year), Exim-guaranteed debt and USD bonds Air Transportation: Passenger receivables financed by suppliers Loyalty program: Cash from sales of miles financed by clients (consumers and banks) Cash management policy Maximizes exposure to BRL-USD interest rate and PPP differential Liquidity in BRL interest earning assets Minimum operating cash balances in foreign operations Leverage policy Hedging policy Maintains conservative long-term capitalization Public market equity sources Net financial debt of 3x EBIT margin of 12% Matches cash flows Hedges foreign exchange, oil price and interest rate risk Hedge books cover up to 24 months of exposure Adequate credit lines in place 23
Strong margins and cash flow generation The Company s financial profile has gone from strength to strength Net revenue (R$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 1) Net of pre-delivery payments. (2) Net income adjusted for non-cash items and change in working capital. 24
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 (1) Liquidity: Cash, equivalents, short term investments, restricted cash and receivables. 25
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$1,584 R$460 R$653 R$232 R$290 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: par call options The outstanding US$117mm 9.25% 2020 senior unsecured notes: call options at 101.5 US$300mm Delta secured 2020 term loan: callable in 2018 Outstanding US$277mm 8.875% 2022 notes: partially tendered (1) Pro forma as of September 30, 2017 considering Senior Notes 2022 Tender Offer (US$ 185MM) and completion of US$ 500MM Senior Notes. Assumes prevailing exchange rate on September 30, 2017 of R$3.168 per USD$1. (2) Liquidity: Cash, equivalents, short term investments, restricted cash and receivables. 26
GOL hedges its medium term cash flows Intelligent hedging 1 Why does GOL USD hedge cash flows and not USD liabilities? GOL s USD debt is matched with USD denominated aircraft assets on balance sheet (good). Swapping principal debt would leave GOL in a long-dollar position (bad) as these assets are traded through their life cycle. GOL USD debt GOL USD fleet assets (at CMV) (as of 1Q17) 1,200.0 (US$ MM) 1,000.0 800.0 600.0 400.0 200.0 $11 $100 $12 $422 $76 $277 $21 $42 $960 4Q17 2018 2019 2020 2021 2022 2023 2023+ Total (US$ MM) $631 Assets (book value) $950 Assets (market value) 2 Why does GOL hedge medium term cash flows and not long term cash flows? The Brazilian airline industry s cost base is largely USD denominated; fuel and FX exposure are largely passed through to yields in time (2/3s). 27
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 $3.1680. (1) Hedge position built during 2Q17. (2) Capital leases. 28
GOL The last 18 months (In R$ 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 (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. 29
GOL today Better relative value 1 2 3 4 5 Fortress network - #1 in business traffic and the routes that matter Proven track record of managing through all cycles The best results in recent history Strengthened liquidity and balance sheet The best positioned for Brazil recovery 30
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. 31
Investor Relations ri@voegol.com.br +55 11 2128-4700 www.voegol.com.br/ir 32