Jet Airways (India) Ltd. Presentation on Financial Results Q3 FY08 28 th January 2008 1 1 1
Agenda Performance highlights Q3 FY08 Apr - Dec FY08 Outlook JetLite performance highlights 2 2 2
Performance highlights Q3 FY08 3 3 3
Financial highlights Q3 FY08 Total Revenues of INR 25.2 Billion (USD 638.7 Million) Up 28% over Q3 FY07 EBITDAR of INR 2,906 Million (USD 73.7 Million) Down 6% over Q3 FY07 Loss Before Tax of INR 1,304 Million (USD 33.1 Million) Loss After Tax of INR 911 Million (USD 23.1 Million) Revenue Passengers carried 2.95 Million Up 9% from 2.72 Million in Q3 FY07 Achieved Seat Factor of 69.1% Down from 69.3% in Q3 FY07 * ROE used for conversion: 1 USD = INR 39.415 for FY08 and 1 USD = INR 44.26 for FY07 4 4 4
Summary Q3 FY08 (USD Million) DOMESTIC INTERNATIONAL TOTAL Q3 08 Q3 07 Q3 08 Q3 07 Q3 08 Q3 07 Total Revenues 413.6 354.2 225.0 90.8 638.6 445.0 Of which Op. Revs 390.6 332.9 224.9 90.8 615.5 423.7 Total Expenditure 417.3 337.7 254.4 93.4 671.7 431.0 Of which Fuel 133.4 106.2 99.4 32.0 232.7 138.2 (Loss)/Profit before Tax (3.7) 16.6 (29.4) (2.6) (33.1) 14.0 PBT (excl. Sale & Lease back) (3.7) 5.6 (29.4) (2.6) (33.1) 3.1 (Loss)/Profit after Tax 6.3 11.6 (29.4) (2.6) (23.1) 9.0 EBITDAR 50.4 55.8 23.4 13.8 73.8 69.7 Margin % 12.9% 16.8% 10.4% 15.2% 12.0% 16.4% * ROE used for conversion: 1 USD = INR 39.415 for FY08 and 1 USD = INR 44.26 for FY07 5 5 5
Key events Addition of 10 aircraft to fleet (5 wide body and 5 narrow body) Launched New York (JFK) flights via Brussels on 28 October Upgraded South East Asian routes to A330 aircraft in December Flights to Dhaka from Kolkata and Delhi in December Capacity addition on domestic routes Mumbai - Chandigarh, Mumbai - Kochi and Mumbai Bhopal Kolkata Ahmedabad, Kolkata Guwahati Announced codeshare with American Airlines effective February Fuel surcharge increased to INR 1,650 for domestic operations 6 6 6
Market share Q3 FY08 Combined 29.0% Indian 16.0% Air Deccan 15.4% Kingfisher 13.6% JetLite 7.4% Combined 29.4% Jet Airways 22.0% Indigo 9.9% SpiceJet 10.2% Paramount 1.2% Go Air 4.3% Source: Press report 7 7 7
Company operating parameters Traffic Parameters Oct 07-Dec 07 Oct 06-Dec 06 Variance % Number of Departures 32,068 30,315 5.8% ASKMs Mio 6,586 4,598 43.2% RPKMs Mio 4,554 3,184 43.0% Passenger Load Factor % 69.1% 69.3% -0.2 points Block Hours 68,646 57,985 18.4% Revenue Passengers (Million) 2.95 2.72 8.7% Revenue per RPKM in INR 4.57 5.03-9.1% Cost per ASKM in INR 3.36 3.45-2.7% Break Even Seat Factor (%) 73.5% 68.7% 4.8 points Average Gross revenue per passenger in INR* 7,521 6,374 18.0% Average Gross revenue per passenger in USD* 190.8 144.0 32.5% Period end Fleet size 76 59 28.8% Average fleet size during period 69.8 58.2 20.1% Average Head Count Gross 11,910 9,780 21.8% Aircraft Utilisation 10.8 10.9-1.4% * Average revenue per passenger includes Fuel Surcharge and Congestion Surcharge * ROE used for conversion: 1 USD = INR 39.415 for FY08 and 1 USD = INR 44.26 for FY07 8 8 8
Company P&L INR Million INR Million Oct 07-Dec 07 Oct 06-Dec 06 Variance % INCOME Operating Revenues 24,260 18,754 29.4% Non Operating Revenues 912 943-3.3% Total Revenues 25,172 19,698 27.8% IN USD Mio 638.6 445.0 EXPENDITURE Employees Remuneration & Benefits 3,027 2,261 33.9% Aircraft Fuel Expenses 9,173 6,115 50.0% Selling & Distribution Expenses 2,622 2,077 26.2% Other Operating Expenses 6,531 5,218 25.2% Aircraft Lease Rentals 1,365 1,679-18.7% Depreciation 2,204 1,077 104.6% Interest 1,554 651 138.7% Total Expenditure 26,476 19,078 38.8% IN USD Mio 671.7 431.0 (LOSS)/PROFIT BEFORE TAXATION (1,304) 619-310.5% IN USD Mio (33.1) 14.0 IN USD Mio (excl Profit on sale of aircraft) (33.1) 3.1 Provision for taxation (393) 219-279.3% (LOSS)/PROFIT AFTER TAXATION (911) 400-327.5% IN USD Mio (23.1) 9.0 EBITDAR 2,907 3,083-5.7% IN USD Mio 73.8 69.7 Margin % 12.0% 16.4% * ROE used for conversion: 1 USD = INR 39.415 for FY08 and 1 USD = INR 44.26 for FY07 9 9 9
A. Domestic operations 10 10 10
Domestic operating parameters Traffic Parameters Oct 07-Dec 07 Oct 06-Dec 06 Variance % Number of Departures 28,870 28,584 1.0% ASKMs Mio 3,040 3,068-0.9% RPKMs Mio 2,198 2,149 2.3% Passenger Load Factor % 72.3% 70.1% 2.2 points Block Hours 49,241 48,027 2.5% Revenue Passengers (Million) 2.52 2.50 0.9% Revenue per RPKM in INR 6.16 5.93 3.9% Cost per ASKM in INR 4.50 4.07 10.5% Break Even Seat Factor (%) 73.1% 68.7% 4.4 points Average Gross revenue per passenger in INR* 5,667 5,523 2.6% Average Gross revenue per passenger in USD* 143.8 124.8 15.2% * Average revenue per passenger includes Fuel Surcharge and Congestion Surcharge * ROE used for conversion: 1 USD = INR 39.415 for FY08 and 1 USD = INR 44.26 for FY07 11 11 11
Domestic P & L INR Million INR Million Oct 07-Dec 07 Oct 06-Dec 06 Variance % INCOME Operating Revenues 15,397 14,735 4.5% Non Operating Revenues 906 943-3.9% Total Revenues 16,304 15,679 4.0% IN USD Mio 413.6 354.2 EXPENDITURE Employees Remuneration & Benefits 2,583 1,991 29.7% Aircraft Fuel Expenses 5,257 4,699 11.9% Selling & Distribution Expenses 1,762 1,735 1.5% Other Operating Expenses 3,811 3,840-0.8% Aircraft Lease Rentals 1,037 1,082-4.1% Depreciation 1,155 952 21.3% Interest 843 647 30.3% Total Expenditure 16,448 14,946 10.0% IN USD Mio 417.3 337.7 (LOSS)/PROFIT BEFORE TAXATION (144) 733-119.7% IN USD Mio (3.7) 16.6 IN USD Mio (excl Profit on sale of aircraft) (3.7) 5.6-165.1% EBITDAR 1,985 2,470-19.6% IN USD Mio 50.4 55.8 Margin % 12.9% 16.8% * ROE used for conversion: 1 USD = INR 39.415 for FY08 and 1 USD = INR 44.26 for FY07 12 12 12
Key performance drivers Peak season impact and slow down in industry capacity has led to : Higher seat factor of 72.3% vs 70.1% over the same period last year Improved yield in Q3 FY08 vs Q3 FY07 by 2.6% (13.2% higher sequentially) Excluding YQ yield in Q3 FY 08 is 10.7% lower than Q3 FY07 Q3 FY08 growth in domestic capacity (industry) was 22% as compared to 44% last year same period; Average Industry seat factor for Q3 FY 08 estimated to be in the high 60s; 9W Seat factor was 72% Product enhancement initiatives New aircraft inducted in domestic with IFE Increased seat pitch in Business & Economy class on existing aircraft Fuel prices were at historical highs : Rate impact as compared to Q2 FY08 was USD 15.5 million Progressive increases in fuel surcharges have been implemented 13 13 13
B. International operations 14 14 14
International operating parameters Traffic Parameters Oct 07-Dec 07 Oct 06-Dec 06 Variance % Number of Departures 3,198 1,731 84.7% ASKMs Mio 3,546 1,530 131.7% RPKMs Mio 2,356 1,035 127.6% Passenger Load Factor % 66.4% 67.6% -1.2 points Block Hours 19,405 9,958 94.9% Revenue Passengers (Million) 0.43 0.22 96.6% Revenue per RPKM in INR 3.09 3.16-2.2% Cost per ASKM in INR 2.38 2.21 7.7% Break Even Seat Factor (%) 77.0% 70.0% 7.0 points Average Gross revenue per passenger in INR* 18,286 16,004 14.3% Average Gross revenue per passenger in USD* 463.9 361.6 28.3% * Average revenue per passenger includes Fuel Surcharge * ROE used for conversion: 1 USD = INR 39.415 for FY08 and 1 USD = INR 44.26 for FY07 15 15 15
International P & L INR Million INR Million Oct 07-Dec 07 Oct 06-Dec 06 Variance % INCOME Operating Revenues 8,863 4,019 120.5% Non Operating Revenues 6 - Total Revenues 8,868 4,019 120.7% IN USD Mio 225.0 90.8 EXPENDITURE Employees Remuneration & Benefits 444 270 64.7% Aircraft Fuel Expenses 3,917 1,417 176.5% Selling & Distribution Expenses 860 342 151.7% Other Operating Expenses 2,720 1,378 97.4% Aircraft Lease Rentals 327 597-45.2% Depreciation 1,049 125 738.9% Interest 711 4 19343.7% Total Expenditure 10,028 4,132 142.7% IN USD Mio 254.4 93.4 PROFIT BEFORE TAXATION (1,159) (113) -924.7% IN USD Mio (29.4) (2.6) EBITDAR 922 613 50.5% IN USD Mio 23.4 13.8 Margin % 10.4% 15.2% * ROE used for conversion: 1 USD = INR 39.415 for FY08 and 1 USD = INR 44.26 for FY07 16 16 16
Breakup Q3 FY08 UK USA Asean/SAARC Total Flights 709 891 1,598 3,198 Pax 125,200 125,016 183,578 433,794 Total Net Rev USD Mio 81 82 45 208 SF% 63.7% 64.5% 78.6% 66.4% % of Total Intl Pax 28.9 28.8 42.3 100.0 % of Total Intl Net Rev 38.9 39.3 21.7 100.0 * ROE used for conversion: 1 USD = INR 39.415 for FY08 and 1 USD = INR 44.26 for FY07 17 17 17
Sector-wise seat factors Sector Q1 FY08 Q2 FY08 Q3 FY08 Apr-Dec'07 SAARC MAA-CMB-MAA 54.3 66.5 64.3 61.8 DEL-KTM-DEL 93.6 93.5 83.2 89.3 CCU-DAC-CCU - - 36.8 36.8 DEL-DAC-DEL - - 34.2 34.2 SAARC Total 77.0 82.0 73.2 77.0 ASEAN BOM-SIN-BOM 78.2 73.6 80.1 77.3 MAA-KUL-MAA 84.3 82.9 78.7 81.9 MAA-SIN-MAA 80.6 73.4 68.7 74.1 DEL-SIN-DEL 66.2 79.5 82.0 76.2 DEL-BKK-DEL 73.2 73.2 85.7 77.4 CCU-BKK-CCU 44.7 48.7 77.6 57.1 ASEAN Total 72.7 73.8 79.2 75.3 UK BOM-LHR-BOM (117/118) 67.6 68.0 65.5 67.0 BOM-LHR-BOM (119/120) 58.8 59.8 57.0 58.5 DEL-LHR-DEL 57.9 68.9 68.6 65.2 ATQ-LHR-ATQ 73.3 81.7 80.2 78.0 AMD-LHR-AMD 54.6 57.5 52.9 55.0 UK Total 62.5 66.1 63.7 64.1 US BOM-BRU-EWR-BRU-BOM - 65.5 71.0 68.9 MAA/DEL-BRU-YYZ-BRU-DEL/MAA - 58.6 61.6 60.9 DEL-BRU-JFK-BRU-DEL - - 57.3 57.3 US Total 64.2 64.5 64.4 TOTAL 65.6 67.5 66.4 66.6 18 18 18
One time/ extraordinary impact (International) Impact of lower utilisation of wide-body aircraft for the period Oct to Dec 07 amounts to ~ 8.5 USD million Route launch expenses USD 1.0 million Impact of employees hired for International operations but not fully utilised (Pilots and Engineers) ~ USD 4 5 million 19 19 19
Performance highlights April-December FY08 20 20 20
Summary April-December FY08 (USD Million) DOMESTIC INTERNATIONAL TOTAL Apr-Dec 07 Apr-Dec 06 Apr-Dec 07 Apr-Dec 06 Apr-Dec 07 Apr-Dec 06 Total Revenues 1,234.1 1,022.1 479.6 200.8 1,713.7 1,222.8 Of which Op. rev 1,056.2 946.9 479.0 200.8 1,535.3 1,147.7 Total Expenditure 1,163.7 994.1 559.7 244.6 1,723.4 1,238.7 Of which Fuel 364.1 335.9 197.3 88.1 561.4 424.0 (Loss)/Profit before Tax 70.4 28.0 (80.1) (43.8) (9.7) (15.8) PBT (excl. Sale & Lease back) (9.5) (19.5) (80.1) (43.8) (89.6) (63.3) (Loss)/Profit after Tax 72.0 30.2 (80.1) (43.8) (8.1) (13.6) EBITDAR 101.0 123.3 35.7 0.5 136.7 123.8 Margin % 9.6% 13.0% 7.4% 0.3% 8.9% 10.8% * ROE used for conversion: 1 USD = INR 39.415 for FY08 and 1 USD = INR 44.26 for FY07 21 21 21
Balance sheet I SOURCES OF FUNDS INR Million As on 31-Dec-07 INR Million As on 31-Mar-07 Shareholders' Funds 21,121 22,373 Loan Funds 101,912 60,563 Deferred payments towards Jet Lite Investments 5,500 - Deferred Tax Liability 3,175 3,311 TOTAL SOURCES OF FUNDS 131,709 86,246 In USD Million 3,341.6 1,984.0 II. APPLICATION OF FUNDS Net Fixed Assets: 117,005 72,920 Investments 16,019 689 Current Assets, Loans & Advances 30,722 33,645 Less: Current Liabilities & Provisions 32,038 21,008 Net Current Assets (1,315) 12,637 Profit & Loss Account TOTAL APPLICATION OF FUNDS 131,709 86,246 In USD Million 3,341.6 1,984.0 * ROE used for conversion: 1 USD = INR 39.415 for FY08 and 1 USD = INR 44.26 for FY07 22 22 22
Ongoing initiatives 23 23 23
Ongoing initiatives Network expansion Launched Gulf routes in January 2008 Kuwait from Delhi/ Kochi Bahrain from Mumbai/ Kochi Muscat from Kozhikode/ Kochi Doha from Mumbai/ Kozhikode Operations to San Francisco via Shanghai and to Hong Kong in the next few months Increased sales initiatives Corporate deals over 2,100 (includes 600 deals for international deals) Imminent codeshares (Air Canada and United) Increase in web bookings 2,255 per day in Q3 FY08 from 1,881 in Q3 FY 07 24 24 24
Outlook 25 25 25
Outlook Q4 trends for passengers and yields will reflect seasonality Remaining aircraft deliveries on schedule Rationalisation in domestic capacity & yields Crude oil prices continue to pose a risk Impending recession in the US could affect this situation further Application for Dubai and Abu Dhabi under review 26 26 26
Jet Airways fleet plan No of Aircraft 120 100 80 60 40 20 62 5 8 49 92 81 10 10 12 8 9 14 54 56 105 13 12 18 62 112 13 12 20 67 - Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 BOEING 737s ATR A340-300/A330s B777-300ER In addition, Jet has firm orders for 20 B737, 10 B787 and 10 B737 option aircraft between FY 2012 2014 27 27 27
JetLite (India) Limited 28
Fleet status In Fleet: 17 Boeing and 7CRJs As At Boeing Boeing CRJ CRJ Flying On ground Flying On ground 20/04/07 12 5 2 5 30/06/07 14 3 3 4 30/09/07 15 2 3 4 31/12/07 16 1 4 3 31/03/08 * 17 0 5 2 * - Proposed 29
Updates - Network/ Fleet/ operations Increase in daily capacity by 16.4% seats in Q3 as compared to Q2 Increased market share from 6.9% in Q2 to 7.4% in Q3 Average seat factor for the 9 months above 70% Cost per ASK maintained at INR 3.1 despite higher fuel costs Cost per ASK w/o fuel lower by~7.5%.(unit cost reduction of 27.7% over FY 07) Reconfiguration & rebranding exercise in progress Applied for rights to operate to Gulf & Thailand; expect approvals soon 30
Operating parameters Q3 FY08 Traffic Parameters OCT-07 TO DEC-07 DOMESTIC INTERNATIONAL TOTAL Number of Departures 10,369 367 10,736 ASKMs Mio 1,423 48 1,471 RPKMs Mio 1,021 32 1,053 Passenger Load Factor % 71.8% 65.5% 71.6% Block Hours 19,405 571 19,976 Revenue Passengers (Million) 0.85 0.04 0.89 Revenue per RPKM in INR 3.50 5.76 3.57 Cost per ASKM in INR 3.12 3.48 3.13 Break Even Seat Factor (%) 89.1% 60.4% 87.7% Cost per ASKM in INR w/o Fuel 1.59 2.29 1.61 Break Even Seat Factor (%) w/o Fuel 45.4% 39.7% 45.2% Average Gross revenue per passenger in INR* 4,658 5,132 4,679 Average Gross revenue per passenger in USD* 118 130 119 Average Net revenue per passenger INR* 4,218 4,626 4,236 Average Net revenue per passenger USD* 107 117 107 Period end Fleet size 23 1 24 Average fleet size during period 19 1 20 Aircraft Utilisation 9.1 8.9 9.0 * Average revenue per passenger includes Fuel Surcharge and Congestion Surcharge * ROE used for conversion: 1 USD = INR 39.415 for FY08 31
Income statement Q3 FY08 Figs in INR Mio Particulars OCT-07 TO DEC-07 DOMESTIC INTERNATIONAL TOTAL INCOME Operating Revenues 4,073 207 4,280 Non Operating Revenues 19 1 20 Total Revenues 4,092 207 4,299 IN USD Mio 103.8 5.3 109.1 EXPENDITURE Employees Remuneration & Benefits 443 15 458 Aircraft Fuel Expenses 2,174 58 2,232 Selling & Distribution Expenses 540 27 567 Other Operating Expenses 1,044 59 1,103 Aircraft Lease Rentals 645 31 676 Depreciation 20 1 21 Interest 100 3 103 Total Expenditure 4,966 193 5,160 IN USD Mio 126.0 4.9 130.9 PROFIT BEFORE TAXATION (874) 14 (860.19) IN USD Mio (22.2) 0.3 (21.8) EBITDAR (128) 48 (80) IN USD Mio (3.3) 1.2 (2.0) Margin % -3% 23% -2% * ROE used for conversion: 1 USD = INR 39.415 for FY08 32
Operating parameters April-December FY08 Traffic Parameters APR-07 TO DEC-07 DOMESTIC INTERNATIONAL TOTAL Number of Departures 28,891 1,244 30,135 ASKMs Mio 3,971 256 4,227 RPKMs Mio 2,842 169 3,011 Passenger Load Factor % 71.6% 66.1% 71.2% Block Hours 54,127 2,737 56,863 Revenue Passengers (Million) 2.32 0.13 2.46 Revenue per RPKM in INR 3.40 4.07 3.44 Cost per ASKM in INR 3.12 2.80 3.10 Break Even Seat Factor (%) 91.8% 68.8% 90.2% Cost per ASKM in INR w/o Fuel 1.71 1.87 1.72 Break Even Seat Factor (%) w/o Fuel 50.2% 46.0% 50.0% Average Gross revenue per passenger in INR* 4,460 5,513 4,517 Average Gross revenue per passenger in USD* 113 140 115 Average Net revenue per passenger INR* 4,161 5,148 4,214 Average Net revenue per passenger USD* 106 131 107 Period end Fleet size 23 0 24 Average fleet size during period 18 1 19 Aircraft Utilisation 8.4 33.2 8.6 * Average revenue per passenger includes Fuel Surcharge and Congestion Surcharge * ROE used for conversion: 1 USD = INR 39.415 for FY08 33
Income statement April-December FY08 Figs in INR Mio Particulars APR-07 TO DEC-07 DOMESTIC INTERNATIONAL TOTAL INCOME Operating Revenues 10,772 747 11,519 Non Operating Revenues 60 1 61 Total Revenues 10,832 748 11,581 IN USD Mio 274.8 19.0 293.8 EXPENDITURE Employees Remuneration & Benefits 1,379 91 1,470 Aircraft Fuel Expenses 5,619 238 5,857 Selling & Distribution Expenses 1,134 72 1,206 Other Operating Expenses 3,338 258 3,597 Aircraft Lease Rentals 1,922 106 2,028 Depreciation 58 4 62 Interest 137 7 144 Total Expenditure 13,587 776 14,363 IN USD Mio 344.7 19.7 364.4 PROFIT BEFORE TAXATION (2,755) (28) (2,782) IN USD Mio (69.9) (0.7) (70.6) EBITDAR (697) 87 (610) IN USD Mio (17.7) 2.2 (15.5) Margin % -6% 12% -5% * ROE used for conversion: 1 USD = INR 39.415 for FY08 34
JetLite fleet plan 40 36 35 33 No of Aircraft 30 25 20 15 10 24 24 7 7 17 17 27 7 20 9 24 10 26 5 - Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 B 737 CRJ / Regional Ac 35
Thank You 36
Disclaimer Certain statements in this release concerning Jet Airways future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in the aviation business including those factors which may affect our cost advantage, wage increases, our ability to attract and retain professionals, time and cost overruns on various parameters, our ability to manage our international operations, liability for damages, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital, and general economic conditions affecting our industry. Jet Airways may, from time to time, make additional written and oral forward-looking statements, including our reports to shareholders. Jet Airways does not undertake to update any forwardlooking statement that may be made from time to time by or on behalf of the company.