Avianca Holdings S.A. 1Q 2018 Earnings Presentation 2018
Disclaimer The present document consolidates information from Avianca Holdings S.A. and its subsidiaries, including unaudited financial figures, operational managerial indicators, financial indicators and managerial projections of future performance, in line with Avianca Holdings S.A. 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 S.A.
Executive Summary 1Q 2018
Load Factor of 83.6% +175bps vs 1Q 17 7.4 million transported passengers for 1Q 18 Transported 11,400 tons of Valentine s Day flowers, + 4.4% Cargo revenues increase of 17.2% New routes: LIM-MDZ to operate 2Q 18, 1F per day BOG-MUC to operate 4Q 18, 5F per week Executive Summary US$ 1.2 Billion in Revenues in 1Q 18; +9.4% year on year Strongest 1Q revenue since IPO CASK ex-fuel reduction of -2.2% reaching 6.2 US 8.7% EBIT 1 margin for 1Q 18 +207 bps vs 1Q 17 Continuous Yield recovery since 3Q 17 Yield increase of 5.5% to 9.1 US Avianca Holdings S.A. is currently negotiating a re-accommodation in Aircraft orders for delivery in the 2020-2022 period 1. When indicated the figures are adjusted by the following one-time items: ACDAC s operatives expenses; $ -25,402 Avianca is awarded as one of the best airlines in Latin America by TripAdvisor Leverage reduction measured as Adjusted net debt/ EBTIDAR reduced from 6.0x to 5.7x yoy Cash to LTM Revenue of 12.5%
F i n a n c i a l A n d O p e r a t i o n a l R e s u l t s 1Q 2018
Executing on our fleet plan 1Q 2018 Total Fleet Airbus 320 113 +3 Embraer 190 8 ATR 72/42 17 Cessna 208 13 Airbus 330 8 +2 Boeing 787 12 Airbus 330F 5 Airbus 300F 5 Boeing 787F 2 188 Out In Detail A320neo on March 18, 2018 (+2) A321S on March 18, 2018 (+2) A330 on January 22, 2018 NEO technology allows savings of up to 20% in jet fuel (-5K in the emission of CO2 by plane) A321S fuel-saving Sharklets offers up to 5% fuel-burn savings (+100 nautical miles/185 kilometers +1000 pounds/450 kg inpayload capacity) 6
Fourth consecutive quarterly Yield YoY increase; 1Q18 Yield increased 5.5% to 9.1 cents 1Q RPKs Millions 1Q Load Factor +6.8% +1.7% +175 bps +44 bps 8,332 9,060 9,972 10,647 40,243 40,919 79.0% 78.8% 81.9% 83.6% 83.1% 83.6% 1Q15 1Q16 1Q17 1Q18 FY 2017 LTM 1Q15 1Q16 1Q17 1Q18 FY 2017 LTM 1Q ASKs Millions 2015 1Q Yield - US 10,549 11,504 12,180 +4.5% 12,734 +1.1% +5.5% 48,401 48,955 10.8 8.7 8.6 +1.4% 9.1 9.3 9.4 8.9 8.8 1Q15 1Q16 1Q17 1Q18 FY 2017 LTM 1Q15 1Q16 1Q17 1Q18 FY 2017 LTM Quarterly Full Year Ex-Strike 7
6.5% EBIT Margin for 1Q2018, +7 bp vs 2017 despite lingering effects of pilot strike 1Q Revenues US millions 1Q EBITDAR US millions 10.6 217 899 8.7 8.8 9.2 197 213 205 792 862 972 9.3 9.2 891 883 3,550 3,659 17.4% 194 21.4% 20.3% 215 216 19.4% 227 19.9% 19.7% 886 897 1Q15 1Q16 1Q17 1Q18 FY 2017 LTM 1Q15 1Q16 1Q17 1Q18 FY 2017 LTM 1Q CASK ex Fuel - US 2015 1Q EBIT US millions 10.0 72 69 76 7.5 8.1 8.2 8.6 8.6 8.7 6.7 6.4 6.4 6.7 6.7 2016 57 5.1% 7.2% 6.4% 6.5% 6.6% 294 301 6.6% 2017 1Q15 1Q16 1Q17 1Q18 FY 2017 LTM 1Q15 1Q16 1Q17 1Q18 FY 2017 LTM Quarterly Full Year Ex-Strike Non-passanger Revenues EBIT/EBITDAR Margin RASK 8
8.7% EBIT Margin 1 for 1Q18, +207 bp vs 1Q17; Strongest 1Q EBIT Margin 1 since 1Q14 (adjusted) 1Q Revenues US millions 1Q EBITDAR US millions 10.3 8.5 8.8 9.2 9.6 9.7 18.8% 22.0% 20.4% 21.4% 21.4% 21.8% 22.0% 189 899 185 205 792 862 197 972 891 883 3,734 3,843 205 215 218 250 1,007 1,038 1Q15 1Q16 1Q17 1Q18 FY 2017 LTM 1Q15 1Q16 1Q17 1Q18 FY 2017 LTM 1Q CASK ex Fuel - US 2015 1Q EBIT US millions 9.7 7.9 8.2 8.4 8.7 8.7 7.2 6.4 6.3 6.7 6.6 6.2 2016 2017 8.7% 7.4% 101 6.3% 6.6% 9.4% 68 72 70 434 9.8% 465 1Q15 1Q16 1Q17 1Q18 FY 2017 LTM 1Q15 1Q16 1Q17 1Q18 FY 2017 LTM Quarterly Full Year Ex-Strike Non-passanger Revenues EBIT/EBITDAR Margin RASK 1. When indicated the figures are adjusted by the following one-time items: ACDAC s operatives expenses; $ -25,402 9
Avianca reports the strongest 1Q Load Factor in company history of 83.6% Region 1Q18 RPK Growth 1Q18 ASK Growth 1Q18 Load Factor Domestic* -3,3% -7,4% 83.0% Intra Home Markets 1 +4,7% +1,1% 80.1% Home Markets to North America 2 +9,9% +9,0% 85.1% Home Markets to South America 3 +9,1% +7,8% 87.4% Central America & Caribbean 4 +2,2% +0,3% 79.2% Home Markets to Europe +13,4% +11,5% 80.7% Total RPK 6.8% ASK 4.5% Load Factor 83.6% *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 and Uruguay, 4 Belize, Cuba Curazao, Republica Dominicana, Panamá, Costa Rica, Guatemala, Honduras, Nicaragua 10
Despite the strike, Avianca continues to consolidate its Leadership Position in the Colombian domestic market Latam 19.7% Others 12.4% Avianca 54.6% VivaCo 13.0% Avianca 11.3% Colombia Domestic 1 Peru Domestic 1 Starup 3.0% 1% Satena 4.9% Otros 0.9% Copa 2.0% Easyfly 4.9% Peruvian 16.2% Latam 57.1% Intra-Home Markets Home Markets To North America Home Markets To South America Home Markets To Spain 66.8% 23.1% 35.4% 29.4% Source: Aeronáutica Civil, MIDT 1: December 2017;*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
Business Units 1Q 2018
Avianca Cargo: financial and operational results Segment Overview Key Metrics (Cargo and Courier) Revenue (US$MM) (2) ATK (MM) (3) Strong performance for 1 Quarter 2018, Transported tons of 11.400 tons of Valentine s Day flowers, + 4.4% vs 1Q17 New A330Fs provide reduced unit costs, higher capacity (up to 40% more +17.2% 140 146 545 566 620, 3-3.0% 601 2.502 2.483 than the previous fleet) (1) and improved reliability 1Q17 1Q18 2017 LTM 1Q17 1Q18 2017 LTM Network improving We are continuing our efforts to strengthen our connections to and from Asia RTK (MM) (3) Load Factor +3.2% +3.5% 328,6 339,4 1.419,4 1.430,2 52,9% 56,5% 56,7% 57,6% 1Q17 1Q18 2017 LTM 1Q17 1Q18 2017 LTM 36,2% Market Share Colombia (1Q18) 4 Market Share Miami (1Q18) 5 32,3% 35,9% 9,4% 9,4% 8,6% 4,2% 13,6% 11,3% 10,4% 8,6% 6,6% 13,7% AVH Atlas Latam UPS Skylease Others Atlas UPS AVH Amerijet American Airlines Source: Company. (1) On a per trip basis. (2) Includes consolidated revenues from the cargo operation in Mexico and Deprisa (Other Business Unit) (3) Includes bellies and excludes Colombia domestic operations. Includes commercial agreements with OceanAir Linhas Aereas, not included in official statistics. (4) International Cargo Aeronáutica Civil de Colombia (as of September 2017) (5) Miami-Dade Aviation Statistics, by airline group (as of March 2018) Latam Others 13
LifeMiles: Loyalty Company 1Q 18 gross billings increased 13.9% vs 1Q 17 Active cobranded credit cards reached 651K, an increase of 16.6% vs. 1Q 17 Approximately 8.1 million members, a 12.7% increase vs. 1Q 17 347 commercial partners, +6.1% vs 1Q 17 New Commercial Partners & Awards Colombia CAM SAM 14
Flight Plan 2018
1Q 2018 2018 OUTLOOK PAX -1.3% 7.0% 9.0% ASK 4.5% 8.0% 10.0% LF 83.6% 80.0% 82.0% EBIT¹ 8.7% EBIT 6.5% 6.0% 8.0% Source: Company Information 1. When indicated the figures are adjusted by the following one-time items: ACDAC s operatives expenses; $ -25,402
In Summary This quarter Avianca, perceives strong demand across its network, despite remaining impact of pilot strike, achieving: US$ 1.2 Billion in revenues a +9.4% year on year increase CASK ex-fuel 1 reduction of 2.2% reaching 6.2US Continuous yield recovery of +5.5% vs 1Q 17 reaching 9.1 US EBIT margin 1 of 8.7%; +207bps vs 1Q 17 resulting in strongest 1Q EBIT since IPO in 2013 Leverage reduction measured as Adjusted net debt/ EBTIDAR reduced from 6.0x to 5.7x yoy Cash to LTM Revenue of 12.5% 1. When indicated the figures are adjusted by the following one-time items: ACDAC s operatives expenses; $ -25,402 17
Thank You Contact Information: Investor Relations Office ir@avianca.com T: (57) 1 5877700 www.aviancaholdings.com