3Q 2016 Earnings Results Presentation B787 Dreamliner
2 The present document consolidates information from Avianca Holdings SA and its subsidiaries, including unaudited financial figures, operational managerial indicators, financial indicators and managerial projections of future performance, in line with Avianca Holdings SA and its subsidiaries business plans. References to future behaviors are indicative and do not constitute a guarantee of compliance by the Company, its shareholders or directors. Unaudited accounting and financial information and projections presented in this document are based on internal data and calculations made by the Company, which may be subject to changes or adjustments. Any change in the current economic conditions, the aviation industry, fuel prices, international markets and external events, among others, may affect the ongoing business results and future projections. Avianca Holdings S.A. herein after Avianca Holdings and its subsidiaries warn investors and potential investors that future projections are not a guarantee of performance and that actual results may differ materially. Every investor or potential investor will be responsible for investment decisions taken or not taken as a result of his or her assessment of the information contained herein. Avianca Holdings S.A. is not responsible for any third parties content. Avianca Holdings may make changes and updates to the information contained herein. The information, tables and logos contained in this presentation may not be reproduced without the consent of Avianca Holdings SA
Executive Summary 3Q2016 Results Over 7.6 million passengers carried: +3.2% vs. 3Q2015 A Load Factor of 83.5% +223 BP; vs 3Q 2015 First sequential yield increase since 2Q 2014, from 8.2 2Q2016 to 8.8 3Q2016 +7.4% CASK reduction of 6.0 1 % from 8.7 3Q2016 to 8.2 3Q2016 Adjusted EBIT 1 Margin of 7.9% for 3Q2016: +36 bps vs. 3Q2015 Improved Leverage (Net Adjusted Debt to EBITDAR) from 6.79x on Dec. 31st, 2015 to 5.99x today More than 6.9 million members : +8.9% 3Q2016 Milestones Began operation of MRO facility in Medellin enabling maintenance of up to 5 single isle aircraft LifeMiles launched Co-Branded products with Grupo Bancolombia, a key milestone Starting November 2016: Bogota-Madrid +4 Bogota-Buenos Aires +3 Signed a new code share agreement with Eva Air in Taiwan as part of connectivity efforts Source: Company Information 1. When indicated the figures are adjusted for Cargo Discount _ 3
3Q 2016 B787 Dreamliner
Advanced in our fleet plan execution in 3Q 2016 3Q2016 Operating Fleet Status Aircraft Type Jul.2016 In Out Sep.2016 Airbus A320 Family 1 109 +1-110 ATR 72 15 - - 15 Embraer E190 10 - - 10 Airbus A330 9 - - 9 Cessna 208 11 - - 11 Airbus A330F 5 - - 5 Airbus A300F 4 - - 4 ATR 42 2 - - 2 Boeing 787 7 +2-9 Boeing 767F 2 - - 2 Total 174 +3-177 Capacity 100/194 pax 2 68 pax 96 pax 252 pax 12 Pax 68 tons 40 tons 48 pax 250 pax 53 tons Source: Company Information 1 The Airbus A320 Family is comprised of: 10 A318 20 A319, 49 A320, 2 A321, 8 A319S, 12 A320S and 9 A321S 2 A320 Family Seating Capacity: A318: 100pax, A319: 120pax, A320: 150pax, A321: 194pax. 5
3Q 2016
Increasing Load Factors and Higher Yields as a Result of the Network Optimization Process ASKs millions RPKs millions +6.4% 35,052 +7.0% 28,094 32,947 26,262 +3.1% +5.9% 9,997 11,618 11,973 9,441 Yield - US Load Factor 9.0 8.7 +7.4% 8.8 81.3% 83.5% 79.7% 80.2% 8.2 4Q2015 1Q2016 2Q2016 3Q2016 Source: Company information 7
3Q 2016 Results Were Also Driven by a Leaner Cost Structure Revenues 1 millions CASK 1 - US 3,214-7.2% 2,983 8.7-6.0% 8.2 9.3-14.3% 8.0 1,091-2.7% 1,062 RASK 1 - US 9.4 8.9 9.8 8.5 CASK 1 - ex Fuel 6.5 6.4 6.9 6.3 EBITDAR 1 millions +2.9% 229.1 9.6% 567.7 622.4 EBIT 1 Margin +36bps 7.5% 7.9% +165bps 4.8% 6.5% 222.6 Margin 1 20.4% 21.6% 17.7% 20.9% EBIT 1 (Mllns) 81.8 83.4 155.3 193.3 Source: Company Information 1. Cargo Discount Adjustment 8
Profitability Gained Traction in 3Q 2016 as Macro Landscape Continued to Stabilize EBIT Margin Evolution 1 7.5% +36bps 7.9% 5.9% 3Q2014 3Q2015 3Q2016 EBIT 1 USDM 70.3 81.8 83.4 EBITDAR 1 Margin 17.0% 20.4% 21.6% EBITDAR Margin +~460bps Source: Company Information 1. When indicated the figures are adjusted for Cargo Discount 9
Strong Load Factors are the Result of Avianca s Network Flexibility and Healthy Traffic Numbers Region 3Q2016 ASK Growth 3Q2016 RPK Growth 3Q2016 Load Factor Domestic* Intra Home Markets 1 + 0.9% + 2.6% 81.1% + 2.2% + 1.1% 76.1% HM to North America 2 + 1.4% + 5.0% 85.2% HM to South America 3 + 10.5% + 15.9% 85.9% Central America & Caribbean 4 + 4.5% 7.7% + 5.8% 71.4% Home Markets to Europe + 1.1% + 4.4% 90.9% Total ASK Growth 3.1% RPK Growth 5.9% Load Factor 83.5% *Domestic Market: Colombia, Peru, Ecuador 1 Local Intra-Markets: Colombia, Peru, Ecuador, Salvador, Costa Rica, Guatemala; 2 From Local Markets to North América including México 3 From Colombia, Perú, Ecuador and Costa Rica to Bolivia, Chile, Argentina, Brazil,Uruguay and Venezuela, 4 Belize, Cuba Curazao, Republica Dominicana, Panamá, Costa Rica, Guatemala, Honduras, Nicaragua 10
Avianca Continues to Consolidate its Leadership Position in the Colombian Domestic Market Colombia Domestic 1 Peru Domestic 2 Otros 5.3% 4.3% 0.6% 4.7% Otros 10.1% 13.2% 1 12.2% 3 19.3% 57.2% 11.4% 61.5% 1 Sep 2016 2 Jul 2016 Intra-home markets Home markets to North America Home markets to South America Home markets to Spain 1 65% 1 25% 1 37% 2 23% Source: Aeronáutica Civil, MIDT *Domestic Market: Colombia, Peru, Ecuador 1 Local Intra-Markets: Colombia, Peru, Ecuador, Salvador, Costa Rica, Guatemala; 2 From Local Markets to North América including México 3 From Colombia, Perú, Ecuador and Costa Rica to Bolivia, Chile, Argentina, Brazil,Uruguay and Venezuela, 4 Belize, Cuba Curazao, Republica Dominicana, Panamá, Costa Rica, Guatemala, Honduras, Nicaragua 11
CARGO & OTHER 3Q 2016
Avianca Cargo: Financial and Operational Results Revenues millions ATKs millions 119-3.2% 115 434-5.0% 413 +1.0% 558 563 1,617 +6.3% 1,719 RTKs - millions Load Factor -1.0% -0.1% 921 921 56.2% 55.2% 57.0% 53.6% 314 311 Source: Company information. Does not include Domestic Ecuador and Colombia 13
Avianca Cargo: Market Share Market Share 3Q 2016 Colombia Miami 1 39 18 12 12 12 12 9 11 3 8 2 8 Other 22 Other 31 Market Share as of Sept. 30 (%) 2016 2015 Source: Aeronautica Civil and Miami International Airport. Information as of June, 2016 14
LifeMiles Loyalty Program Highlights 3Q2016 3Q 16 revenues increased 11.7% year on year 520K active co-branded credit cards, a 22.3% increase of vs. 3Q 15 Over 6.9 million members; an 8.9% increase vs. 3Q 15 303 commercial partners, +6.7% vs 3Q 15 New Commercial Partners Colombia Central America South America Peru: Source: Company information 15
LifeMiles Loyalty Program Bancolombia Extends Reach Across LatAm Regional launch of Co-Branded products with Grupo Bancolombia, one of the leading franchises in Colombia and Central America First SMEs Product in the Region (previously launched in COL) This partnership is a key stepping stone to consolidate LifeMiles position in the region, further strengthening our coalition network Protect market share among SMEs and increase loyalty for AV Reach and penetrate a significant part of the Credit Card market in COL and CAM Source: Company information 16
2016
Avianca Holdings: 2016 Guidance FY2016 Outlook 2016 YTD PAX 3% - 5% 3.9% ASK 3% - 5% 6.4% LF EBIT 1% 78% - 80% 5.5% - 7.5% 80.2% 6.5% Source: Company information. 18
In Summary As the Company successfully continues to optimize its cost structure and enhance profitability it has: 1 Increased Load Factor by +223 bps vs 3Q 2015 to 83.5% as traffic numbers outpaced capacity by 280bps 2 Achieved the first yield increase of 7.4% from 8.2 (2Q 2016) to 8.8 (3Q 2016) quarter over quarter since 2Q 2014 3 4 5 6 Substantial increase in PRASK of 14.9% from 6.4 in 2Q 2016 to 7.4 in 3Q 2016 Improved profitability by more than +118 bps reaching an EBITDAR margin of 21.6% vs 20.4% in 3Q 2015, the highest margin in the last 3 years Substantial reduction in total debt of 6.5% (USD -224.6 million) from 3,473 million to 3,248 million Significant improvement in leverage position (Net Adjusted Debt to EBITDAR) from 6.79x on December 31 st, 2015 to 5.99x today. Source: Company Information 1. When indicated the figures are adjusted for Cargo Discount 19
Thank You Contact Information: Investor Relations Office ir@avianca.com T: (57) 1 5877700 www.aviancaholdings.com