Aegean Airlines Company Presentation. Eftichios Vassilakis, Executive Vice Chairman April 2008

Transcription

1 Aegean Airlines Company Presentation Eftichios Vassilakis, Executive Vice Chairman April 2008

2 Agenda Aegean Airlines at a glance Financial & operating update Our strategic focus Appendix 2

3 Fastest growing Greek carrier Revenue breakdown ()* Full Service Carrier since Listed in July Scheduled flights 85% Leader in Domestic Market - Developing International presence 5.2 million passengers in 5% 10% Charter flights 40 routes to 29 destinations in Greece and abroad (Summer 2008) Passengers Other 1,900 employees 5,226, aircraft (Summer 2008) ,447,570 Pre-tax earnings profitable since year revenue CAGR 19% * Excluding airport charges ,002,451 3,576,628 CAGR = 13% 3

4 Domestic network THESSALONIKI KAVALA ALEXANDROUPOLIS Covering 98% of potential demand KERKYRA KEFALONIA IOANNINA LIMNOS CHIOS MYTILINI Operating 23 routes, reaching 17 destinations (Summer 2008) ATHENS MYKONOS SAMOS KOS Carrying 3.4m pax in (+10% y-o-y) CHANIA HERAKLION SANTORINI RHODES Market Share (passenger and revenue) in excess of 50% Opened in

5 International network Operating 17 routes, 12 destinations on 9 countries (Summer 2008) Covering 8 out of 15 most popular destinations out of Athens Carrying 1.9m pax in (+35% y-o-y ) Leader out of Thessaloniki Expanding Share out of Athens (2 nd position) Code share agreements with Lufthansa, Air One, Tap Portugal 5

6 Competitive Update (Jan - Mar 2008) Route AEGEAN Start y-t-d AEGEAN market rank # Operators Market share Trend ATH FRANKFURT 3 3 MUNICH ROME Alitalia de-hubs Malpensa MILANO LARNACA CAIRO Albanian Airlines drop Athens-Tirana SKG BUCHAREST SOFIA FRANKFURT Tarom reduces frequencies to Bucharest MUNICH DUSSELDORF/ COLOGNE/ DORTMUND STUTTGART LARNACA

7 Focus on quality services First to introduce Business Class in domestic market % of web bookings 30% Loyalty programme: Miles&Bonus almost 10% of A3 passengers in E-services / web check in: Largest e- commerce player by revenue in Greece 9% 20% Self check in kiosks 5 times awarded by ERA 7

8 Strong brand and market position Athens Airport Survey Favorite airline for Greek residents Choice = Market Share X 2 Aegean Airlines Olympic Airlines Lufthansa Emirates 46% 21% 11% 4% Market share by Pax 30% 25% 20% 15% 10% 5% Aegean at AIA Number 2 carrier Aegean at Thessaloniki Number 1 carrier Singapore Source: AIA, CAA, Press reports & Company estimates 3% Market share by Pax 50% 40% 30% 20% 10%

9 Lufthansa s regional partner Cooperation since 2005 Amsterdam Brussels Hamburg Hannover Berlin Link generates additional passenger traffic from/to Lufthansa s network, especially business traffic Paris Düsseldorf Frankfurt Stuttgart Munich Increased brand awareness in Germany Linked loyalty programs: miles earned in both carriers Improved connectivity from coordinated schedules Thessaloniki Athens 9

10 Agenda Aegean Airlines at a glance Financial & operating update Our strategic focus Appendix 10

11 Financials Euro (million) Revenue vs 06 20% Sales ( million) EBITDAR EBT % 30% Net income % Cash Debt CAGR = 19% Total equity EBITDAR ( million) Net earnings ( million) CAGR = 35% CAGR = n/a 11

12 Sector comparison Revenue growth EBITDAR margin Net margin Vueling 54% Ryanair 29% Ryanair 20% NAS 44% BA 19% Aer Lingus 8% SkyEurope 28% Aegean 17% Easyjet 8% Ryanair 23% Iberia 17% Aegean 7% Aegean 20% Easyjet 17% Iberia 6% Aer Lingus 15% Aer Lingus 16% BA 6% Easyjet 11% Air France 16% Air France 6% Air France 4% Austrian Airlines 15% NAS 2% Iberia 3% NAS 12% Austrian Airlines 0% BA -1% SkyEurope 3% SkyEurope -9% Austrian Airlines -4% Vueling 3% Vueling -12% Source: Aegean Airlines, Company data, Results for the 12-months to Dec with the exception of Vueling (9-month ) & easyjet (12-month to Sept 07) 12

13 1Q 2008 traffic 1Q 1Q vs 07 Domestic passengers 700, ,483 1% International passengers 265, ,719 35% Total passengers 965,634 1,062,202 10% Total Flights 10,917 11,601 6% Pax / Flight % 13

14 Agenda Aegean Airlines at a glance Financial & operating update Our strategic focus Appendix 14

15 Investment in new aircraft Delivery of 27 new aircraft over the period $1.2 bn in leased and purchased aircraft = largest private investment in transportation in Greece Retirement of Boeing fleet (15 aircraft over the Q4: - Q1:2009 period) Benefits Costs Image benefits / Business Class potential Cost savings (maintenance, fuel) Higher average capacity per A/C Homogeneity Higher capital Costs Transition Costs/Inefficiencies Boeing underutilization in Crew training Reliability/Productivity/On Time performance Aegean representative cost structure as of Q2:

16 Our Fleet A320/321 deliveries Boeing re-deliveries Avro re-delivery 2 Average fleet size A A Avros Boeing 737/ Total Fleet at peak period

17 Average fleet age Years E 2009E 2010E

18 Our Network Expansion Strategy Target W.European & regional markets Expansion criteria/priorities Destinations within 4-hour flight radius Balance of traffic originating in Greece High share of point-to-point traffic Slots availability 2008 Summer schedule consistent with stated strategy Routes Destinations International Network New W. European route: Athens-London New regional route: Athens-Tirana Domestic Network new destinations: Limnos, Kefalonia, now covering 98% of potential demand Total

19 Closing remarks Our strengths / opportunities Leading domestic position and increasing international market significance Profitable since 2003, without new aircraft Fleet investment benefits gradually by Q2 2009: image, fuel costs, maintenance costs, utilization, average capacity per aircraft, specification commonality Rising web penetration, commission reductions, distribution efficiencies Organizational maturity / Revenue Management Team / System Implementation 0ur challenges Fuel price evolution Fleet Transition Q4 - Q International routes expansion risks 19

20 Appendix Recent results Our network Shareholders structure 20

21 operating review More flights, longer distances & market share gains in a growing market AIA Pax (m) & A3 market share (%) 20% 22% 23% 25% 17% 14% % 27% 22% 17% 12% 7% 2% -3% A3 Total pax (m) Average Segment Length (km) Number of flights* , , , , *Excl non revenue flights

22 review: P&L Highlights Euro (million) vs 06 Revenue % EBITDAR % EBITDAR margin 17.4% 17.2% -0.2pp EBIT % EBT % Net income % Net income margin 6.4% 7.4% 1pp 22

23 review: Balance Sheet Euro (million) Advances for A/C acquisition Other fixed assets Total fixed assets Cash and cash equivalents Other current assets Total Assets Total equity Debt Other Liabilities* Total Liabilities & Equity Dec Dec * Includes derivative financial instruments liabilities of 31.2m in vs. 12.6m in

24 review: Key Performance Indicators vs 06 Load Factor (RPK/ASK) Scheduled 71.8% 69.5% -2.3pp Load Factor (Pax/AVS) Scheduled 70.4% 69.2% -1.2pp Avg Pax/flight pax Yield ( cents) % RASK ( cents) % CASK - EBITDAR level ( cents) % CASK - EBT level ( cents) % Average Fare ( ) % 24

25 Our network (Summer 2008) Covering 8 out of 15 most popular international destinations from Athens Athens-Alexandroupolis Athens-Chania Athens-Chios Athens-Corfu Athens-Heraklion Athens-Ioannina Athens-Kavala Athens-Kefalonia Athens-Kos Athens-Limnos Athens-Myconos Athens-Mytilini Domestic Routes Athens-Rhodes Athens-Samos Athens-Santorini Athens-Thessaloniki Thessaloniki-Chania Thessaloniki-Heraklion Thessaloniki-Kos Thessaloniki-Mykonos Thessaloniki-Mytilini Thessaloniki-Rhodes Thessaloniki-Santorini International Routes Athens-Bucharest Athens-Cairo Athens-Frankfurt Athens-Larnaca Athens-London Athens-Milan Athens-Munich Athens-Rome Athens-Sofia Athens-Tirana Heraklion-Larnaca Rhodes-Larnaca Thessaloniki-Dusseldorf Thessaloniki-Frankfurt Thessaloniki-Larnaca Thessaloniki-Munich Thessaloniki-Stuttgart Top 15 International Destinations from AIA London Larnaca Paris Milan Frankfurt Rome Munich Amsterdam Zurich New York Madrid Brussels Istanbul Bucharest Cairo 25

26 Shareholders structure Free Float 25.4% Vassilakis Group 33.9% Piraeus Bank 4.7% Osiris 4.7% D. Ioannou 6.1% Cantel Participations 6.2% Laskarides Group 19.0% 26

27 Thank you For further information on AEGEAN please visit our website at or contact our Investor Relations Manager Stella Dimaraki

28 Forward Looking Statements Except for historical information, the statements made or information contained in this presentation are forward-looking in nature and, as such, are subject to certain risks and uncertainties, many of which are beyond the Company s control, which could cause the actual results 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; foreign currency fluctuations, in particular between the euro and the U.S. dollar; the progress of our codeshared and interline arrangements; our ability to finance our planned acquisition of aircraft and to discharge any resulting debt service obligations; 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. Additional risks are discussed in the Offering Memorandum and the Company s filings with the Capital Markets Commission and the Athens Exchange. 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. 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