Results 2Q17. August 9, 2017

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Transcription:

Results 2Q17 August 9, 2017

2Q17 Highlights Indicators 2Q17 Var. x 2Q16 ASK (BN) 10.4-3.0% Traffic (000) 7,261-1.3% RPK (BN) 8.1 +0.5% Load Factor 77.9% +2.7 p.p. Yield (R$ cents) 23.2 +4.8% Pax Revenue (R$ MM) 1,886 +5.3% RASK (R$ cents) 21.4 +10.2% CASK (R$ cents) 1 21.0 +1.1% Net operating revenues of R$2.2 billion (+7.0% vs. 2Q16) Recurring operating result of R$37 million and margin of 1.7% Net income of R$(475) million and margin of -21.2% EPS: -R$1.37/share -US$2.12/ADS CASK ex-fuel 1 decreased by 2.0% Aircraft utilization: 11.3 block hours/day (+4.8% vs. 2Q16) Net Debt 2 /LTM EBITDA: 4.2x 1. Excluding non-recurring results 2. Excludes perpetual bonds (R$ 438.2 million) 2

Capacity and Network Rationalization Number of Operating Aircraft (average) 119 116 116-2.5% 8.10 10.8 RPK (MM) -14.9% 9.6 +0.5% ASK (MM) 12.0-3.0% 8.14 2Q16 1Q17 2Q17-13.1% 10.4 670 Flights/Day -10.5% 712 637-5.0% 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 3

Best Customer Experience Campaign #NOVAGOL combines maturity with vigor, modernity and energy for new and more attractive flights Commitment and the most advanced technology in the world to deliver an ever better experience to customers GOL Online in 1/3 of the fleet allows access to the internet and a complete entertainment platform More legroom and comfortable seats, VIP lounges and new app (check-in with facial recognition, pushes when to leave home/office and flight anticipation/postponement) 4

The Most Competitive Airline in Brazil 1. Brazil s lowest cost for 16 years: - Single fleet of 120 B-737 (120 MAX 8 orders) - B-737 MAX 8 is 13% better fuel efficient - Lean and productive operations (best aircraft utilization) - Low fixed costs (efficient administrative structure) - Smart spare parts management - Best-in-class maintenance 21% lower CASK 1 than closest airline 2. Brazil s best customer experience: - Most on-time airline for the 4th year in a row - Most comfort and leg room - Most convenient flight network for businesses - Friendly service, Wi-Fi & on-board entertainment - Greater supply of comfortable seats - #1 loyalty program: Smiles 3. Brazil s most profitable airline: - 7.8% recurring operating (EBIT) margin (6M17) - 4.2x Net debt 2 /LTM EBITDA (2Q17) - Two-thirds of total debt is asset-based; average maturity 3.2 years Productivity & efficiency 2,138 PAX/employee; 3,036 ASK/employee 4. Brazil s market leader: - Leader in Brazil s main airports (66% of total passenger traffic) - Strong brand - Continuous innovation: #NOVAGOL - 396 ASK/aircraft (MM, 2016) - 35% market share (June/17) (1) Information published by companies for 2016 (stage-length adjusted). (2) Excludes perpetual bonds (R$ 438.2 million). 5

2017 Full Year Guidance Indicator 2017 Full-year 6M17 (actual) Average operating fleet 115 116 1 Variation in capacity vs. 2016 (ASK) 0% to -2% -2.4% Variation in capacity vs. 2016 (Seats) -3% to -5% -9.4% Variation in volume of departures (vs. 2016) -3% to -5% -9.8% Average load factor 77% to 79% 79% Net Revenues (R$ billion) +/- 10 4.9 CASK-ex fuel (R$ cents) +/- 14 14.4 Aircraft Rent (R$ billion) +/- 1 0.5 EBITDA margin 12% to 14% 10% Operating (EBIT) margin 7% to 9% 6% Fully-diluted shares outstanding (million) 347.2 347.5 Earning per share fully diluted 2 R$ 0.38 to R$ 0.52 -R$ 0.90 Fully-diluted ADS outstanding (million) 69.4 69.5 Earning per ADS fully diluted 2 US$ 0.57 to US$ 0.78 -US$ 1.42 Net Debt / LTM EBITDA +/- 4.2x 4.2x 3 Downside risks: Q4 fares External shocks Capacity growth (1) Fleet of 120 aircraft at the end of June 2017 (four of them are sub-leased to another airline). (2) After participation of minority interest in Smiles S.A. (3) Net Debt of R$4,868 MM, excluding perpetual bonds, and LTM EBITDA of R$1,158MM (as of June 30, 2017). 6

Solid June Quarter 7.0% recurring EBITDA margin and 1.7% recurring operating margin, both 8.8 percentage points above 2Q16 margins, despite industry stagnation, fleet restructuring, and volatile currency and fuel prices Non recurring expenses reduced operating income by R$12 million. Net debt 1 was R$ 4.9 billion (down R$108 million vs. 1Q17). June Quarter 2017 Recurring operating (EBIT) margin 1.7% (up 8.8 p.p.) Ancillary revenue (cargo and other) and change q-o-q 15.6% of Total Rev. (up 1.3 p.p.) Passenger unit revenue (PRASK) change quarter over quarter Up 8.5% Fuel price (change q-o-q ) Average exchange rate to US$ R$2.03 (up 10.7%) R$3.22 CASK ex-fuel (excluding non-recurring expenses) change q-o-q Down 2.0% GOL System capacity (ASK) change quarter over quarter Down 3.0% GOL System capacity (Seats) change quarter over quarter Down 4.7% 1. Excludes perpetual bonds (R$ 438.2 million) 7

Load Factor and Forward Bookings 2015 2016 Chg. (pp) Jan 83% 82% -1 Feb 76% 76% 0 Mar 74% 73% -1 Apr 79% 76% -3 May* 76% 75% -1 Jun 76% 75% -1 Jul 83% 83% 0 Aug 76% 78% +2 Sep 76% 78% +2 Oct 75% 76% +1 Nov 73% 78% +5 Dec 77% 79% +2 2016 2017 Chg. (pp) Jan 82% 83% +1 Feb 76% 78% +2 Mar 73% 76% +3 Apr 76% 79% +3 May 75% 77% +2 Jun 75% 78% +3 Jul 83% 0 Aug 78% 0 Sep 78% +1 Oct 76% +2 Nov 78% +1 Dec 79% +1 (*) New network rolled out in May 2016 8

Profitability (EBITDA) 2Q16 vs 2Q17 RASK (R$ cents) 19.4 +10.2% 21.4 20.8 CASK 1 (R$ cents) +1.1% 21.0 CASK Ex-combust. 1-2.0% 5.5 +9.7% 6.0 EBITDA 1 (R$ million) 2Q16 156.2 7.0% 2Q16 2Q17 Fuel CASK 1-1.9% EBITDA Margin 1 2Q17 2Q16 2Q17 2Q16 2Q17 (39.5) (1) Recurring 9

Net Financial Results Financial Income 812.6 778.8 1 2Q16 Financial Expense (R$ MM) 269.6 (R$ MM) 19.7 2Q17 445.0 225.7 1 Net Financial Results: 2Q17: expense of R$425 MM 2Q16: income of R$543 MM Reduction in receivables factoring Increase in portion of long-term financing 2Q16 2Q17 (1) Exchange and monetary variations 10

Net Income Composition (R$ MM) Excluding Smiles S/A minority interest +253 +146 Net revenues Fuel costs (38) +45 Aircraft rent Maintenance materials and repairs +25 +17 Other operating expenses +40 Net financial results (ex-fx) F/X Losses 2Q17 Net income Net margin: -21.2% 2Q16 Net income Net margin: 12.1% (1,008) 2Q17 EPS: -R$1.37/share -US$2.12/ADS +56 Income taxes (11) Smiles minority interest (475) 11

Cash Flow Breakdown 25% 20% annual quarter 15% Operating Cash Flow Margin 10% 5% 0% -5% 2015-6,8% 22,6% 8,1% 0,0% 2016 1Q17 2Q17 in R$ million 2015 2016 1Q17 2Q17 Operating cash flow (669.5) 803.6 0.0 503.9 Investing cash flow (600.9) 95.6 (143.4) (110.4) Financing cash flow 2 750.2 (1,062.8) (261.8) (140.3) Net increase (decrease) in cash and cash equivalents -10% (520.2) (163.6) (405.2) 253.3 Total liquidity 1 1,623.4 1,922.4 1 1,517.2 1 1,770.5 1 (1) Consolidated cash, cash equivalents and account receivables beginning in 2016. (2) Includes foreign exchange variation on foreign subsidiaries. 12

Liquidity and Leverage Total Liquidity 1 (R$ billion) Total Liquidity 1 /LTM Revenues (%) Net Debt 2 (R$ billion) Net Debt 2 /LTM EBITDA (x) 19,5% 15,5% 17,8% 4.2x 5.2x 4.2x R$4.8 R$5.0 R$4.9 R$1.9 R$1.5 R$1.8 4Q16 1Q17 2Q17 4Q16 1Q17 2Q17 (1) Consolidated cash, cash equivalents and accounts receivable (2) Excludes perpetual bonds (i.e.: R$ 438.2 million for 2Q17). 13

Price upside (%) Value Gap and Stock Liquidity 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% US$ 7.2 B US$ 2.3 B US$ 10.5 B US$ 0.9 B US$ 33.6 B US$ 1.0 B US$ 7.1 B US$ 2.9 B US$ 5.3 B EV/EBITDA 4 5 6 7 8 9 10 11 12 13 14 15 iqvg GOL = 44% US$ 27.2 B Source: iq Value Index (iqvi) and iq Value Gap (iqvg) calculated according to their own methodology, where: iqvi = [actual EV/EBITDA multiple / (1 + Price upside from sell-side analysts average)], for price upside > 0 iqvg (%) = 1- [iqvi (company) / iqiv (best valued company)] (1) Potential market cap is calculated assuming iqvg = 0, in relation to the best valued company 7/31/17 iqvi iqvg Ryanair 12.6 0% Copa 12.1 4% Azul 9.7 23% Latam 9.1 28% GOL 7.1 44% Avianca 6.7 47% Southwest 5.8 54% AlaskaAir 5.8 54% Westjet 4.6 64% JetBlue 4.2 67% Daily trade volume 2Q17 (MM) Change vs 2Q16 NYSE-GOL US$4.9 +123% B3-GOLL4 R$23.8 +83% 14

Fleet Plan Aircraft Type Configuration 2016 2017 2018 2019 2020 Capacity: 138 pax Range: 5,570 km Type: 737-700 Capacity: 177 pax 1 Range: 5,440 km Type: 737-800 Capacity: 186 pax Range: 6,510 km Type: 737-800 MAX 28 24 25 22 21 93 91 91 89 86 - - 5 13 21 TOTAL 121 115 121 124 128 (1) Reconfiguration in the first half 2018 to increase the number of seats by 5% to 186, maintaining Gol+Conforto spaces. 15

Appendices 2Q17 August 9, 2017

Unit Costs 2016 CASK (USD cents, stage-length adjusted) 8,48 8,14 8,01 1,95 1,65 1,62 7,55 7.52 1,65 2,04 7,16 7,03 1,77 1,46 6,62 1,17 LCC Benchmarks Latin American Companies 5,68 Fuel Costs Variable Costs Fixed Costs 2,89 3,64 3,33 3,16 2,23 1,69 4,16 4,21 2,79 2,69 1,70 3,69 2,53 3,04 5,45 1,67 1,69 2,32 3,98 3,96 1,52 1,12 1,37 1,09 2,85 Source: Financial information published by companies (IR websites, SEC and CVM), converted by the exchange rate of each period. Alaska Air and Air Asia do not disclose variable cost. 17

2016 KPIs Productivity EBITDA / Aircraft (USD 000) & EBITDA Margin (%) 50,0% 40,0% 30,0% 20,0% 10,0% 0,0% -10,0% -20,0% 25,7% 24,4% 7.511 6.889 28,9% 30,5% 6.007 5.828 40,4% 16,0% 19,6% 19,2% 4.603 4.403 3.845 3.583 12,8% 11,6% 9,7% 2.917 2.701 1.425 ASK (MM) / Average Number of Operating Aircraft & Net Margin (%) 35,0% 25,0% 15,0% 5,0% -5,0% -15,0% -25,0% -35,0% -45,0% 29,4% 19,8% 466 445 0,7% 8,6% 11,4% 410 396 390 15,3% 11,0% 7,2% 358 335 322 13,7% 1,1% -1,9% 286 260 180 LCC Benchmarks Latin American Companies 18

2016 KPIs Leasing and Maintenance 17,4% 16,0% Lease Expense / ASK (USD cents) & Lease Expenses / Net Revenues (%) 11,0% 6,0% 1,0% -4,0% 1,56 7,6% 10,1% 0,67 0,66 6,0% 5,4% 4,3% 0,42 0,34 0,28 6,9% 1,9% 1,7% 1,1% 1,3% 0,16 0,13 0,13 0,10 0,06 Maintenance Expense / ASK (USD cents) & Maintenance Expenses / Net Revenues (%) 15,0% 10,0% 5,0% 0,0% -5,0% -10,0% 10,6% 0,95 8,5% 0,65 6,3% 0,55 5,1% 6,0% 4,6% 5,5% 5,1% 0,44 0,39 0,38 0,35 0,33 3,8% 2,1% 4,2% 0,27 0,10 0,08 LCC Benchmarks Latin American Companies 19

Disclaimer This presentation may contain certain statements that express GOL Linhas Aéreas Inteligentes S.A. ( GOL ) management s expectations, beliefs and assumptions about future events or results. Such statements are not historical fact, being based on currently available competitive, financial and economic data, and on current projections about the industries in which GOL operates. The verbs anticipate, believe, estimate, expect, forecast, plan, predict, project, target and other similar verbs are intended to identify these forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from those projected in this presentation and do not guarantee any future GOL performance. The factors that might affect performance include, but are not limited to: (I) market acceptance of GOL services; (ii) volatility related to the Brazilian economy and financial and securities markets, and the highly competitive industries GOL operates in; (iii) changes in domestic and foreign legislation and taxation, and government policies related to the transportation markets; (iv) increasing competition from new entrants to the Brazilian markets; (v) ability to keep up with rapid changes in technological environment; (vi) ability to maintain an ongoing process for introducing competitive new products and services, while maintaining the competitiveness of existing ones; (vii) ability to attract customers in domestic and foreign jurisdictions. Other factors that could materially affect results can be found in GOL s annual report on Form 20-F as filed with the U.S. Securities and Exchange Commission, particularly under Risk Factors session. All forward-looking statements in this presentation are based on information and data available as of the date they were made, and GOL undertakes no obligation to update them in light of new information or future development. 20

Investor Relations ri@voegol.com.br +55 11 2128 4700 www.voegol.com.br/ir