Corporate Presentation December 2015
Quality & Award winning airline Weathering through the crisis and positioning for strong Full Service Carrier Focus on quality, efficiency, productivity 10.1m passengers in 2014 Young fleet of 58 Aircraft 44 Airbus A320 family 14 Bombardier Star alliance member Award winning airline 6x skytrax best regional award growth 12,000 10,000 8,000 6,000 4,000 2,000 0 Traffic in RPKs (m) 04 05 06 07 08 09 10 11 12 13 14 15 1999 Launched operations 1999 2001 2 local acquisitions 2002 First international routes launched 2006 2007 27 Airbus order 2008 Largest Greek airline 2010 Star alliance member 2011 Becoming single type jet operator 2013 Acquisition of Olympic Air 2014 7 Airbus order 2
Using synergies to expand Passengers (m) 8.8 10.1 11.5 45 Fleet (A/C) 50 58 6.1 2x 30 Turboprop Airbus 2012 2013 2014 2015e Domestic International ASKs (m) +60% 2012 2013 2014 2015e Network Destinations 119 104 134 9,139 10,732 12,194 14,576 65 2x 2012 2013 2014 2015e 2012 2013 2014 2015e 3
Growing from 3 to 9 A/C bases 2015 :134 destinations 100 international 34 domestic in Greece and Cyprus THESSALONIKI 2009 : 3 A/C bases CORFU ATHENS THESSALONIKI KALAMATA KOS ATHENS CHANIA HERAKLION RHODES LARNACA 2015 : 9 A/C bases HERAKLION 4
Strengthening Athens hub *Number of routes from Athens 2016 71 International routes 2012 22 International routes 2016 101 total routes 5 2012 40 total routes
Tourist arrivals by air Attractive Athens potential 2010 2015 => +50% growth in tourist arrivals Athens Tourist arrivals by air 3.1 3.4 4.1 2010 2014 2015e Rest of Greece 10.6 14.6 15.5 7.5 11.2 11.4 2010 2014 2015e 2010 2014 2015e Source: SETE, Aegean Airlines estimates 6
Driving total traffic growth 14 12 10 8 6 despite 27% 28% GDP decline 2008 2015 International Athens Total passengers (m) 11.6 11 11 10 10 9 10 8 8 2015 YTD trends International rest of GR airports 25 20 20 18 17 18 18 16 16 15 10 23 23 4 5 2 0 2007 2008 2009 2010 2011 2012 2013 2014 2015E +22% Domestic 0 2007 2008 2009 2010 2011 2012 2013 2014 2015E 8 7 6 5 4 3 2 1 0 Domestic 7.2 7 6 7 6 6.1 6 5.1 5.0 2007 2008 2009 2010 2011 2012 2013 2014 2015E +18% International Athens +1% International rest of GR 40 35 30 25 20 15 10 5 0 Domestic International Athens International rest of GR airports Total 42 39 35 34 33 32 33 32 33 2007 2008 2009 2010 2011 2012 2013 2014 2015E 7 Source: AEGEAN estimates, YTD is Jan-Oct (AIA, HCAA source)
Ability to adjust and transform successfully 2004 2008 Gradual Growth Building presence / brand /product Heavy reliance on domestic network & local demand Mix of fleet No alliances 2009 2012 Successful restructuring Extrovert/ incoming leisure focus Flexibility/outsourcing/ homogeneous jet fleet Quality/customer excellence focus remains Star Alliance entry 2013 2015 Strong Growth Seek scale economies Acquisition of Olympic Network expansion / Build network flows, connectivity Defend market position and capture market opportunity Gradual growth of LCC State owned Olympic GDP loss / Unemployment / Traffic demand sharply down Privatization of traditional competitor Rapid growth of LCC Strong rebound in Athens traffic Competition intensifies Domestic network new competitor 8
Last 10 years at a glance Revenue Pre tax profit / margin ASKs 261 m 312 369 440 559 553 516 580 563 683 850 912 120 100 80 60 40 20 0 m / % 2% 6% 9% 10% 7% 6% 12% 8% 10% 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 In m 3,692 4,023 6,216 8,308 9,139 12,194 10,732 20 40 4% 5% 2% 11.0 9.0 7.0 5.0 3.0 1.0 1.0 In m Passenger Traffic 1.0 1.2 1.4 1.9 2.3 2.8 3.1 3.5 3.5 4.0 4.3 4.9 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Unit costs / stage length 5.7 6.2 6.4 5.9 6.1 5.2 5.1 4.4 4.3 4.2 5.3 4.9 1,200 1,000 800 600 400 200 0 90% 80% 70% 60% 50% 40% 62% Load Factor 71% 69% 68% 74% 78%78% 9 International Pax Domestic Pax FY04-FY13: Aegean standalone / Group FY:13 & FY:14 include full consolidation of Olympic Air In cents CASK (excl fuel) Average stage length km
Revenue Breakdown shift to international PSO Revenue Domestic Revenue International Revenue 56% 75% 66% 69% 44% 24% 28% 26% 2009 2012 2013 2015e 2013: Acquisition of Olympic 10
Greece home based carriers prior/after acquisition 25.0 45.0 40.0 20.0 35.0 15.0 10.0 30.0 25.0 20.0 15.0 Total market Combined AEGEAN Olympic 5.0 10.0 5.0 0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 0.0 11
Athens opportunity Underserved in terms of destinations Number of international destinations served from airport 282 291 Long haul (>5 hours) Short haul (< 5 hours) 79 5 74 89 6 83 77 15 62 123 30 93 165 28 137 176 24 152 140 30 110 176 43 133 141 42 99 180 45 135 100 11 89 192 27 165 110 15 95 220 56 164 110 172 125 166 2005 2014 2005 2014 2005 2014 2005 2014 2005 2014 2005 2014 2005 2014 2005 2014 Airport Athens ATH Lisbon LIS Vienna VIE Zurich ZRH Rome FCO Barcelona BCN Istanbul IST Frankfurt FRA Source: OAG, Mckinsey study (October 2014) 12
Strong growth out of Athens Aegean International Passengers A3 market share 25% 30% 33% 34% 4.0 3.5 3.0 2x 2.5 2.0 1.5 1.0 0.5 0.0 2012 2013 2014 2015YTD 13 Pax in m, Source: Aegean Airlines, AIA
Delivers 3 x network flows in 7 years! HUB support & defense AIA Transfer Pax Departing from Athens 1,400 1,200 +52% 1,000 3x 800 600 400 200 0 2008 2010 2013 2014 Jan Oct 14 Jan Oct 15 14
Strong passenger growth July Sept 2015 Aegean delivers strong growth in Athens with 34% in international vs 17 % market 31 % in Heraklion, 30% in Rhodes while total market broadly flat Total passengers (m) July Sept 2015 +19% Total passengers (m) Jan Sept 2015 +17% +9% 1.8 1.9 1.8 Out of which Athens +34% +29% 2.4 3.6 4.3 Jul Sep 2014 Jul Sep 2015 +10% +24% 4.1 4.5 4.8 3.8 7.9 9.2 Jan Sep 2014 Jan Sep 2015 Domestic International Total Domestic International Total 15
9 month 2015 results Growth accelerates in 3 rd quarter despite country challenges Strong cashflow generation leads to cash/equivalent at 302m* Stronger dollar, higher air navigation charges in Greece as well as lower fares on the downside, lower fuel costs and unit cost reduction stemming from economies of scale on the plus In millions Q1:14 Q1:15 Q2:14 Q2:15 Q3:14 Q3:15 9M:14 9M:15 Scheduled Services 114.0 114.3 0% 204.8 222.9 9% 282.1 326.4 16% 600.9 663.6 10% Charter 0.8 1.0 22% 20.9 13.3 37% 33.5 27.7 17% 55.3 42.0 24% Other 19.0 22.7 19% 29.0 29.4 2% 31.8 34.5 8% 79.8 86.7 9% Total revenue 133.9 138.1 3% 254.7 265.5 4% 347.5 388.6 12% 736.1 792.2 8% EBITDAR 14.0 6.7 52% 58.7 60.2 2% 112.5 132.3 18% 185.2 199.3 8% EBITDA (6.6) (14.2) 116% 35.9 33.9 6% 89.5 100.6 12% 118.8 120.3 1% EBT (10.8) (12.3) 13% 32.9 31.2 5% 83.4 95.8 15% 105.4 114.7 9% Net earnings / (loss) after tax (8.4) (8.3) 0% 24.3 23.1 5% 62.7 67.2 7% 78.6 81.9 4% RASK (Revenue per ASK, in cents) 7.4 6.3 15% 7.6 6.9 9% 8.1 7.3 9% 7.8 7.0 10% Yield (Revenue per RPK, in cents) 10.1 9.0 11% 9.8 9.2 6% 9.7 8.9 8% 9.8 9.0 8% CASK (EBT level, in cents) 7.9 6.8 14% 6.6 6.1 7% 6.1 5.5 9% 6.7 6.0 10% CASK (EBT level, in cents) excl. fuel costs 6.0 5.5 9% 4.7 4.6 3% 4.2 4.1 3% 4.7 4.5 4% ASKs (in millions) 1,867 2,233 20% 3,363 3,963 18% 4,333 5,322 23% 9,562 11,518 20% Load factor Scheduled services (RPK/ASK) 73.0% 70.3% 2.7pp 78.1% 75.3% 2.8pp 82.8% 82.3% 0.5pp 79.0% 77.4% 1.6pp 16 *including restricted cash and short and fixed income investments
Cash flow generation 430 Cashflow 9Μ 2015 (EUR m) 380 330 280 119 36 13 20 19 50 7 230 180 130 218 302 80 30 20 Cash at the operating Total changes in beginning of the cashflow before working capital year working capital Δ Interest & tax Capex Net pdps Dividend Net cash flows from financing activities Cash and cash equivalents at the end of the period End of period cash includes: 19m restricted cash 10m corporate bonds 40m Money market funds 17
2016 capacity plans 61 Aircrafts +3 16.200.000 Available seats +1.1m 145 Destinations +14 111 International destinations +14 34 Domestic destinations 18
2016 capacity plans: 16m total seats +1m vs 2015 Increasing frequencies on existing routes and new international destinations launched Dublin Nice Lille Napoli Bari or Palermo Luxembourg Amsterdam Lisbon Ireland France Italy Luxemburg Netherland Portugal Palma de Majorca Lubiana Jeddah Krakow Vilnius Split Spain Slovenia S. Arabia Poland Lithuania Croatia 19
20 Appendix
Shareholder Structure 34% 35% Th. Vassilakis * Other pre IPO shareholders Free Float 31% Listed on the Athens Exchange *11.6% controlled through Autohellas 21
Tourist arrivals by country 4,000,000 +50% 3,500,000 +40% +30% 3,000,000 +20% 2,500,000 2,000,000 +12% +5% +10% +10% +0% +10% 2014 2015 ch 1,500,000 +20% 1,000,000 500,000 +16% +21% +5% 47% +18% +10% +37% +8% +30% +40% +50% 0 UK Germany Italy France Netherlands Russia Poland Sweden USA Cyprus Rest +60% Source: SETE, Jan-Aug 2015 22
Profit & Loss FY:13 FY:14 P&L In millions Pro forma Group Group Scheduled Services 720.2 748.6 4% Charter 77.8 61.4 21% Other (cargo, service charge, executive aviation) 52.1 101.9 96% Total revenue 850.0 911.8 7% Other operating income 9.8 9.7 1% Employee benefits (102.7) (100.5) 2% Aircraft fuel (223.5) (232.8) 4% Aircraft maintenance (71.3) (77.6) 9% Overflight expenses (46.2) (53.9) 17% Ground handling expenses (51.6) (51.5) 0% Airport charges (34.5) (37.4) 9% Catering expenses (18.6) (21.1) 13% Distribution expenses (58.0) (61.2) 6% Marketing and advertising expenses (8.4) (12.3) 46% Other operating expenses (63.3) (63.8) 1% EBITDAR 181.8 209.5 15% EBITDAR margin 21.4% 23.0% Aircraft leases (90.9) (90.7) 0% EBITDA 90.9 118.8 31% Depreciation (14.1) (12.8) 9% EBIT 76.8 106.0 38% EBIT margin 9.0% 11.6% Financial results (6.0) (11.3) 90% EBT 70.9 94.6 34% EBT margin 8.3% 10.4% Income Tax (18.4) (14.4) 22% Net earnings / (loss) after tax 52.5 80.2 53% 23 Note: FY2013 pro forma, assuming full consolidation of Olympic Air for the full year
Key Operating Statistics FY:13 FY:14 Change Pro forma Group In % RASK (Revenue per ASK, in cents) 8.0 7.6 6% Yield (Revenue per RPK, in cents) 10.2 9.6 6% CASK (EBITDAR level, in cents) 6.3 5.8 8% CASK (EBITDAR level, in cents) excl. fuel costs 4.2 3.9 7% CASK (EBT level, in cents) 7.4 6.8 8% CASK (EBT level, in cents) excl. fuel costs 5.3 4.9 8% Capacity ASKs (in millions) 10,732 12,194 14% Total available seats (000) 11,879 13,088 10% Total Block Hours 135,801 148,062 9% Total Sectors Flown 93,601 99,486 6% Average capacity per flight 127 132 4% Average sector length (km) 732 767 5% Passengers (000) By type of service : Schedule passengers 8,169 9,574 17% Charter passengers 673 539 20% By network : Domestic 4,549 5,240 15% International 4,294 4,873 13% Total number of passengers 8,843 10,113 14% RPKs (in millions) 8,440 9,584 14% Pax/flight 94 102 8% Load factor Scheduled (Pax/AVS) 74.2% 77.3% 3.1pp Load factor Scheduled (RPK/ASK) 78.3% 78.3% 0.0pp 24 Note: FY2013 pro forma, assuming full consolidation of Olympic Air for the full year
Balance Sheet & Cash Flow Balance Sheet In millions Dec 13 Dec 14 Total fixed assets 222.2 273.4 Cash & financial assets 244.2 218.4 Other current assets 95.0 135.5 Total assets 561.4 627.4 Total equity 212.9 216.5 Finance lease liabilities 59.0 58.5 Loans 0.0 0.0 Other Liabilities 289.4 352.5 Total equity and liabilities 561.4 627.4 Cashflow In millions Jan Dec 2013 Jan Dec 2014 Net cash flows from operating activities 104.8 111.5 Net cash flows from investing activities (0.3) (51.0) Net cash flows from financing activities (26.9) (79.9) Net (decrease)/ increase in cash and cash equivalents 77.6 (19.4) Cash at the beginning of the period 149.3 226.9 Cash at the end of the period 226.9 207.5 25
Key financial metrics EUR m FY:13 FY:14 FY:08 FY:09 FY:10 FY:11 FY:12 Group Group Period end cash & bonds 183 213 196 172 156 244 218 On balance sheet debt & financial leases 86 83 103 98 82 59 58 Net debt / (cash) 97 130 93 73 74 185 160 EUR m FY:08 FY:09 FY:10 FY:11 FY:12 FY:13 Group FY:14 Group Sales 559 553 516 580 563 850 912 EBITDAR 102 96 76 62 73 182 209 EBITDAR margin 18% 17% 15% 11% 13% 21% 23% EBITDA 57 32 1 18 3 91 119 EBITDA margin 10% 6% 0% 3% 1% 11% 13% Net earnings 29 23 23 27 10 52 80 Net earnings margin 5% 4% 5% 5% 2% 6% 9% EUR m FY:08 FY:09 FY:10 FY:11 FY:12 Operating cash flow (before taxes & interest payments) 65 49 5 4 21 108 132 FY:13 Group FY:14 Group 26 Note: FY2013 pro forma, assuming full consolidation of Olympic Air for the full year
Aegean Share Listed in Athens Exchange Bloomberg AEGN GA / Reuters AGNr.AT IPO : July 2007 / 7.60 IPO price Dividends / Returns: DPS FY08 0.25 DPS FY09 0.13 Capital return FY13 1.00 DPS FY14 0.70 Contact: investors@aegeanair.com +30 210 626 1660 27
Disclaimer Forward Looking Statements Except for historical information, the statements made or information contained in this presentation are forward looking in nature. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. As such, they are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the Company s control, which could cause the actual future performance to differ materially from those referenced, projected or contemplated herein by any forward looking statement, including but not limited to the following: overall passenger traffic; the airline ticket pricing environment; the international expansion of our route network; seasonal fluctuations in passenger travel; aviation fuel prices; landing and navigation fee changes; changes in aircraft acquisition, leasing and other operating expenses; developments in government regulations and labour relations; the cost of our ground handling operations; the future development of AIA, the Greek regional airports and the international airports; foreign currency fluctuations, in particular between the euro and the U.S. dollar; the progress of our code shared and interline arrangements; the availability of additional slots or landing rights at existing airports and the availability of new airports for expansion; interest rate fluctuations; extraordinary events, such as accidents, terrorist attacks or threats of terrorist attacks, natural disasters and outbreaks of contagious diseases; the rates of taxes payable; and general economic conditions in Greece and the European Union. Although the Company believes the expectations reflected in such forward looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Therefore, past performance and/or forwardlooking statements are not to be treated as guarantees of future performance. The forward looking statements are made as of the date of this presentation, and we undertake no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise. 28