P/F Atlantic Airways. Presentation of 1-3 Quarter Report November 2010

Transcription

1 P/F Atlantic Airways Presentation of 1-3 Quarter Report November 2010

2 Atlantic Airways at a glance (1) Atlantic Airways was established in 1987 to develop the Faroese airline industry and airline services Faroese airline industry and airline services National airline carrier of the Faroe Islands International company based in Sørvágur, Faroe Islands Operational base in Faroes and satellite base in Copenhagen Operating in three main segments: Scheduled flights with Faroe Islands as cornerstone Charter operations o in Europe Helicopter operations in Faroese and North Sea waters Operating a fleet of 4 aircraft and 3 helicopters in Q3 Transported 170, passengers Q1-Q3 Q Maintenance base with excellent facilities at Vágar Airport 2

3 Mission and core culture Mission We transport t people and cargo by air with Faroe Islands as our cornerstone Core culture Our core culture places emphasis on safety, regularity, customers, results, and skilled employees Safety Punctuality Customer Profitability Staff It is fundamental to aviation Customers expect us to be on time Customers pick the winners between competitors There will be no development without profit Engaged g and fit to deliver 3

4 Third quarter of 2010 in brief EBITDA increased to DKK 33 million or 127 % growth The result before tax was DKK 19.0 million, an improvement of DKK 23.4 million The result after tax was DKK 15.6 million, an improvement of DKK 19.2 million Revenue was DKK 134 million, an increase of 21% Net financial items was DKK -1.0 million compared to DKK -2,4 million in Q Total depreciation was DKK 13.1 million compared to DKK 16.6 million in Q All segments scheduled, charter and helicopter showed an improvement 4

5 1-3 quarter of 2010 in brief EBITDA increased to DKK 51 million or a growth of 41% The result before tax was DKK 10.3 million, an increased of 33% The result after tax was DKK 8.4 million, an increased of 32% Revenue was DKK 305 million, a decrease of 5% Net financial items decreased from DKK 12.6 million in Q1-Q to DKK -2.6 million Total depreciation was DKK 38.1 million compared to DKK 41.0 million in Q1-Q Result before tax was negatively affected by approximately DKK 5 million related to airspace closures associated with volcanic activity it in Iceland 5

6 Segment overview (1) - Income distribution In Q1-Q the income was distributed between Scheduled services 79%, Charter 10% and Helicopter operations 11% Diversified income in Q1 Q3 10 Export income in Q1 Q3 10 3% 11% Copenhagen 10% Other routes Taxfree 6% 55% Mil Mail and Cargo Charter 15% Helicopter 42% 58% Domestic income Export income 6

7 Segment overview (2) - Passenger distribution Percentage of total revenue per segment Passengers per segment % % 80% Scheduled services Charter / ACMI operation 0 Helicopter Scheduled services Q1-Q3 Scheduled services Q3 7

8 Segment overview (2) - Block hour distribution Q Q1-Q Q Q YTD 2010 YTD Scheduled ACMI/Charter Helicopter services operations 0 Scheduled services ACMI/Charter operations Helicopter 8

9 Scheduled services (1) - Characteristics Small homemarket with less than people Challenging environment: Short runway, mountainous topography, changing island weather system, long distance for alternatives Number of departures from Faroes five doubled since Atlantic started service from Faroes Number of destinations are currently 7 Number of passengers doubled during last decade Investing in developing tourism traffic Rate of decline in traffic since autumn 2008 is slowing 9

10 Scheduled services (3) - Traffic information Scheduled flight - Number of passengers Weekly High Low Departures season season expected Copenhagen Reykjavík 3 2 Billund Aalborg 3 0 Stavanger/B ergen 2 London 2 Total Scheduled flight - Airborne hours

11 Charter operations - Characteristics Niches that correspond to our core competence Short runways, demanding operational area, need for flexibility and loads up to a 100 pax Focusing ad hoc charters Capacity provisions/acmi Corporate Charter and servicing tour operators with charter series Foundation for diversification, efficient utilisation and expansion Provided support to oil related activity in Faroe Island 2010 Provided capacity in small scale for other airlines in Nordic area in 2010 Growth in ad hoc demand d in 2010 but ACMI still very slow 11

12 Helicopters - Recent developments Domestic services since 1994 Scheduled service to remote islands SAR contract from Invested in dedicated SAR helicopter Demanding training to improve competence Discusions with ministry on future domestic helicopter services Offshore and charter Activity it improved since January 2010 Operated in Danish sector in Q1 and Q2 Air logistic contract with ENI in relation to exploration drilling from May 2010 Signed contract for sale of one AW 139 to be delivered before year end Block hours - Helicopter services

13 Key performance indicators - Traffic development Traffic statistics Q Q YTD 2010 YTD 2009 FY 2009 Capacity - scheduled flight (ASK) (1,000) 118, , , , ,205 Traffic - scheduled flight (RPK) (1,000) 89,341 89, , , ,050 Load factor (%) 75% 78% 74% 75% 77% Passengers carried on schedule 66,071 67, , , ,238 Passengers carried 73,225 75, , , ,860 Aircraft operated as at 30 September Helicopters operated as at 30 September Block hours 2,716 2,486 6,164 8,756 10,433 Number of full-time employees

14 Financials (1) INCOME STATEMENT (DKK 1,000) Q Q YTD 2010 YTD 2009 FY 2009 Net sales 133, , , , ,137 Flight expenses -77,297-71, , , ,669 Employee expenditures -23,125-24,195-66,905-77,713-99,835 Result before depr., amort. and impairm. (EBITDA) 33,175 14,591 51,045 36,160 43,633 Depreciations, amortisations and impairment -13,132-16,641-38,091-41,017-63,001 Result before financial i items (EBIT) 20, ,050 12,954-4,857-19,368 Net financial items -1,036-2,358-2,645 12,607 11,745 Share of p/l of ass. comp Result before tax (EBT) 19,007-4,408 10,309 7,750-8,064 Tax -3, ,878-1,373 1,455 Profit 15,586-3,615 8,430 6,377-6,609 14

15 Financials (2) BALANCE SHEET (DKK 1,000) Q Q YTD 2010 YTD 2009 FY 2009 Assets Intangible assets 5,493 7,119 5,493 7,119 6,809 Tangible assets 221, , , , ,746 Financial assets 1,834 2,276 1,834 2,276 1,834 Total non-current assets 229, , , , ,389 Total consumables 3,170 3,634 3,170 3,634 3,761 Total receivables 42,117 26,188 42,117 26,188 27,186 Cash and cash equivalents 76, ,624 76, ,624 65, Assets held for sale 62,792 62,792 Total current assets 184, , , ,446 96,467 Total assets 413, , , , ,856 Equity and Liabilities Total equity 225, , , , ,377 Total non-current liabilities 68, ,502 68, , ,797 Total current liabilities 119,780 78, ,780 78,576 57,681 Total equity and liabilities 413, , , , ,856 15

16 Financials (3) Cash flows (DKK 1,000) Q Q YTD 2010 YTD 2009 FY 2009 Net cash flow from: Operating activities -3,868-2,533 47,028 84,411 70,310 Investing activities* -14,795-18,733-26,649-45,305-65,384 Financing activitites -5,236-3,588-9,593-16,845-21,768 Cash flows for the period -23,899-25,854 10,786 47,115-16,842 *Of this purchase of property, plant and equipment -14,159-16,700-25,425-41,583 61,360 16

17 Liquidity and capital structure As of 30 September 2010, Atlantic Airways had a comfortable equity ratio of 54% and net cash of DKK 76 mill. 17

18 Expectations for 2010 Financial The company expects both a positive EBIT and net result providing that external factors such as fuel and currencies remain at the same level. Operational Long term success requires continuous work to improve cost-competitiveness Pressure on scheduled traffic as a result of increased airport charges Positive effect from helicopter activity as a result of continued exploration activity into November Positive effect from charter segment due to higher utilisation than expected 18

19 Company information P/F Atlantic Airways Vágar Airport FO-380 Sørvágur Faroe Islands Tel Fax Established 1987 Reg. no VAT Number Domicile municipality: Sørvágur Website: ir@atlantic.fo For further information contact: Magni Arge, CEO, tel magni@atlantic.fo Marius Davidsen, CFO, tel marius@atlantic.fo 19

20 Disclaimer This presentation includes statements regarding future results, which are subject to risks and uncertainties. Consequently, actual results may differ significantly from the results indicated or implied in these statements No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person s s officers or employees or advisors accept any liability whatsoever arising directly or indirectly from the use of this document 20