Aegean Airlines Company Presentation. October 2008

Transcription

1 Aegean Airlines Company Presentation October 2008

2 Agenda Aegean Airlines at a glance Investment highlights Appendix 2

3 Fastest growing Greek carrier 9 years ago Started operations as a full service carrier serving 10 domestic destinations Carrying 00k passengers in 1 st year of operations Fleet of 4 RJs, ATRs Competing with Greek carriers Today 40 routes to 29 destinations in Greece and abroad 5.2 m passengers in 2007 ( m expected for 2008) Fleet of 27 jet aircraft (29 by end 2008) Competing with OA, intl LCCs and network carriers Track record of 5-year profitability IPO in July Free float 25% million pax Passengers Revenue breakdown (2007) Scheduled flights 85% 5% 10% Charter flights Other

4 Investment highlights Network coverage: Well established in domestic market / expanding international network Competitive Environment: Leading domestic share Market share gains in the majority of international routes Focus on Quality - Fleet renewal Operating / financial update: Passenger growth continued in 2008 Profitability performance above industry standards in a challenging environment Strong balance sheet 4

5 Our network Domestic International THESSALONIKI KAVALA ALEXANDROUPOLIS IOANNINA LIMNOS KERKYRA KEFALONIA CHIOS MYTILINI ATHENS SAMOS MYKONOS KOS SANTORINI RHODES CHANIA HERAKLION Opened in 2008 Opened in

6 Competitive position - International Routes (y-t-d) 1 2 Routes Athens-Bucharest Athens-Cairo AGEAN market rank Number 1 Number 2 # Operators 2008 rising market share in the majority of routes #1 position in Balkan routes Athens-Frankfurt Athens-Larnaca Athens-London Athens-Milan 4 5 #1 position in intl routes out of Thessaloniki #1 in 8 out of 17 intl routes 7 Athens-Munich Athens-Rome Athens-Sofia 4 Opened May Athens-Tirana 11 Heraklion-Larnaca Rhodes-Larnaca Thessaloniki-NRW 6 Opened May Thessaloniki-Frankfurt 4 15 Thessaloniki-Larnaca 16 Thessaloniki-Munich 17 Thessaloniki-Stuttgart 4 6

7 Competitive position Performance on our main bases: -4 percentage points market share gain in Athens in 2008 #1 carrier in Thessaloniki #1 carrier in Heraklion Aegean at Athens International Airport Number 2 carrier out of 65 carriers operating flights Athens Airport Survey Favorite airline for Greek residents Aegean Airlines 45% 0% Market share by Pax 25% 20% 15% 10% 5% Olympic Airlines Lufthansa Singapore 17% 12% 4% H 2008 Emirates % 7

8 International network - Winter 2008 With latest additions we are covering 10 out of 16 most popular international destinations out of Athens Aegean 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 Winter Athens - Paris Athens-Düsseldorf rd daily flight Athens-London Top 20 International Destinations out of Athens London Larnaca Paris Rome Munich Frankfurt Milan Amsterdam Zurich Madrid Brussels Istanbul Cairo Vienna Bucharest NRW Berlin Prague Moscow Tel Aviv *Excl. Long Haul 8

9 International Network Strategy We plan to continue our international network expansion to better cover the needs of our customers 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 Potential new destinations Amsterdam Barcelona Beirut Belgrade Berlin Brussels Budapest Copenhagen Geneva Istanbul Kiev Madrid Manchester Moscow Prague Tel Aviv Vienna Zurich Warsaw 9

10 Focus on quality services % of web bookings 0% Quality product offering First to introduce Business Class in domestic market On time performance 20% 9% New website design & booking engine Self check in kiosks more than 20k visits per day 10

11 Fleet renewal 12.0 Average fleet age Delivery of 27 new aircraft Airbus A20/21 over the period Maintenance and fuel efficiency benefits in full by beginning of 2010 Image benefits / reliability / higher avg capacity per A/C Years E 2009E 2010E Fleet at peak period Total Fleet (year end) A 20 / Avros Boeing 77/ Total

12 Operating update Total passengers served reached 2.6m in H1: 2008, +1% above 2007 (+24% international, +8% domestic y-o-y growth). Scheduled services load factor at 67%, 0.5 percentage point higher vs prior year with 7% larger average capacity per aircraft flown Passenger growth trends maintained in Q: 2008 (,000) 1H H vs 07 Domestic passengers 1,557 1,680 8% International passengers % Total passengers 2,9 2,647 1% Total available seats,477,896 12% Total flights 25,628 26,74 4% Pax / Flight % Load factor (RPK/ASK) 66.5% 67.0% Load factor (Pax/Avs) 67.1% 68.0% 12

13 Financial update Efficient revenue management, gradual maturity of routes opened in previous years and fuel surcharges drive unit revenues higher Fuel impact largely offsetting achieved revenue improvements USD and fuel hedges net negative impact of 9m versus negative 1.7m in 2007 Cash and cash equivalents at 159.8m Impact of high oil prices more intense in Q. Nevertheless, positive profitability and strong cash flows expected for FY 08 Euro (million) 1H H vs 07 Revenue % EBITDAR % EBITDAR margin 1.9% 11.% -2.6pp EBT % Net income % Yield ( cents) % RASK ( cents) % CASK - EBT level ( cents) % CASK - EBT level (excl. fuel cents) % Average segment length (km) % 1

14 Closing remarks 0ur challenges Fuel costs European economic slowdown Privatization of OA Fleet transition costs International routes expansion risks Our strengths / opportunities Strengthening of AEGEAN s competitive positioning y-t-d Capacity discipline in most of the routes flown OA restructuring transformation Downsizing 5% imposed Maturing revenue management efforts Fleet investment benefits gradually unfold Positive profitability trends on international routes opened in the past 2 years Explore further partnerships / alliance opportunities 14

15 Appendix Shareholders structure Our network Lufthansa partnership Financial Statements 15

16 Shareholders structure Free Float 2.6% Vassilakis Group 5.7% Piraeus Bank 4.7% Osiris 4.7% D. Ioannou 6.1% Cantel Participations 6.2% Laskarides Group 19.0% 16

17 17 Our network Athens-Mytilini 12 Thessaloniki-Santorini 2 Athens-Myconos 11 Thessaloniki-Rhodes 22 Athens-Limnos 10 Thessaloniki-Mytilini 21 Athens-Kos 9 Thessaloniki-Mykonos 20 Athens-Kefalonia 8 Thessaloniki-Kos 19 Athens-Kavala 7 Thessaloniki-Heraklion 18 Athens-Ioannina 6 Thessaloniki-Chania 17 Athens-Heraklion 5 Athens-Thessaloniki 16 Athens-Corfu 4 Athens-Santorini 15 Athens-Chios Athens-Samos 14 Athens-Chania 2 Athens-Rhodes 1 Athens-Alexandroupolis 1 Domestic Routes Thessaloniki-Stuttgart 17 Thessaloniki-Munich 16 Thessaloniki-Larnaca 15 Thessaloniki-Frankfurt 14 Thessaloniki-Dusseldorf 1 Rhodes-Larnaca 12 Heraklion-Larnaca 11 Athens-Tirana 10 Athens-Sofia 9 Athens-Rome 8 Athens-Munich 7 Athens-Milan 6 Athens-London 5 Athens-Larnaca 4 Athens-Frankfurt Athens-Cairo 2 Athens-Bucharest 1 International Routes

18 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 Düsseldorf Frankfurt Stuttgart Munich Increased brand awareness in Germany Linked loyalty programs: miles earned in both carriers Improved connectivity from coordinated schedules Thessaloniki Athens 18

19 Profit & Loss FY 2007 amounts in m euros, % y-o-y change y-o-y % Scheduled Services % Charter % Other (cargo, service ch., ex.aviation) % Airport charges % Sales % Other operating income % Employee benefits (54.7) (65.) 19% Aircraft fuel (79.2) (95.9) 21% Aircraft maintenance (4.7) (58.8) 5% Overflight expenses (15.8) (19.5) 2% Ground handling expenses (11.) (15.0) % Airport charges (5.) (68.2) 28% Catering expenses (10.) (1.1) 28% Distribution expenses (4.7) (1.6) -9% Marketing and advertising expenses (.5) (.9) 14% Inventories consumption (0.7) (0.9) 2% Other operating expenses (25.2) (29.7) 18% EBITDAR % EBITDAR margin 17.4% 17.2% Aircraft leases (2.7) (6.1) 52% EBITDA % Depreciation (6.2) (4.1) -% EBIT % EBIT margin 10.0% 8.9% Interest and other financial income Interest and other financial expense (7.1) (6.9) Gains on sales of subsidiaries Losses on sales of associates (.0) - EBT % Income Tax (9.8) (8.8) Profit / (loss) after tax from continuing operations % Profit from discontinued operations Profit after tax % Minority Interest (1.0) - Net earnings after tax and minority interest % 19

20 Balance sheet FY 2007 amounts in m euros 1/12/2006 1/12/2007 ASSETS Intangible assets Tangible assets Down payments for tangible assets acquisition Deferred tax assets Other long term assets Total fixed assets Current assets Inventories Customers and other trade receivables Down payments Cash and cash equivalents Total current assets TOTAL ASSETS EQUITY AND LIABILITIES Parent company shareholders equity Share capital Share premium account Other reserves (8.9) (22.9) Retained earnings (97.) (61.6) Parent company shareholders equity Liabilities Long term liabilities Long term loan liabilities Finance lease contracts liabilities 14.2 Long term derivative instruments liabilities 1.6 Provisions for retirement benefits obligations Total long term liabilities Short term liabilities Suppliers and other liabilities Long term loan liabilities payable next year Short term loan liabilities 20.4 Other short term liabilities Liabilities from tickets sold but not flown Accrued expenses Derivative instruments liabilities Current tax liabilities Total short tern liabilities Total liabilities TOTAL EQUITY AND LIABILITIES

21 Cash Flow FY 2007 amounts in m euros 1/12/2006 1/12/2007 Cash flows from operating activities Profit of the period Adjustments for: Taxes Depreciation of fixed assets Results from sale of fixed assets (0.4) 0.2 Profits from sale of subsidiaries (0.4) (0.0) Losses from sale of affiliated firms.0 - Interest and other financial income (0.) (.5) Interest and other financial expenses.4.6 Loss /(profit) from financial derivatives (0.9) (0.1) Provisions for retirement benefits obligations Operating flows from discontinued activity 1. - Cash flows from operating activities before changes in working capital Changes in working capital (Increase) / decrease in inventories (0.6) (1.6) (Increase) / decrease in trade & other receivable (4.0) (0.) Increase / (decrease) in payables Increase /(Decrease) in financial derivatives liabilities Cash outflows for retirement benefits obligations (0.1) (0.1) Other changes in working capital (1.4) (2.5) Total changes in working capital 12.1 (1.8) Interest expenses paid (.6) (.1) Income taxes paid - (6.6) Net cash flows from operating activities Cash flows from investment activities Purchases of fixed assets (8.1) (7.1) Sales of fixed assets Advances for acquisition of fixed assets (27.4) (4.6) Sale of affiliates/subsidiaries Interest and other financial income received Investment flows from discontinued activity (1.6) Net cash flows from investment activities (5.9) (20.1) Cash flows from financing activities Loans drawn / (repaid) Share capital increase Share capital increase expenses - (8.5) Changes in financial lease capital (.1) (16.4) Financing flows from discontinued activity (1.7) - Net cash flows from financing activities (2.7) Net (decrease)/ increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period

22 Profit & Loss Interim 2008 amounts in m euros, % y-o-y change Q1 Q1 Q2 Q2 % 1H 1H % Scheduled Services % % % Charter % % % Other (cargo, service ch., ex.aviation) % % % Airport charges % % % Sales % % % Other operating income n.m % % Employee benefits (14.7) (17.2) 17% (16.4) (18.4) 1% (1.0) (5.6) 15% Aircraft fuel (15.5) (24.4) 57% (25.1) (42.4) 69% (40.7) (66.8) 64% Aircraft maintenance (10.4) (1.5) 29% (15.5) (17.4) 12% (26.0) (0.9) 19% Overflight expenses (.1) (.8) 2% (5.6) (6.0) 6% (8.8) (9.8) 12% Ground handling expenses (2.2) (.0) % (4.1) (4.2) 2% (6.4) (7.2) 1% Airport charges (11.2) (1.4) 19% (18.5) (22.8) 2% (29.8) (6.2) 22% Catering expenses (2.5) (2.6) 4% (.7) (.9) 5% (6.2) (6.5) 4% Distribution expenses (8.0) (9.2) 15% (9.6) (11.) 18% (17.6) (20.5) 16% Marketing and advertising expenses (1.0) (1.4) 42% (0.7) (2.1) 184% (1.7) (.5) 10% Inventories consumption (0.2) (0.2) 8% (0.2) (0.2) -27% (0.4) (0.) -14% Other operating expenses (5.8) (9.4) 61% (7.4) (10.5) 4% (1.2) (19.9) 51% EBITDAR % % % EBITDAR margin 7.2% 4.% 18.1% 15.5% 1.9% 11.% Aircraft leases (7.4) (9.1) 2% (9.) (11.8) 26% (16.7) (20.9) 25% EBITDA (1.6) (4.9) 204% % % Depreciation (1.0) (1.1) 18% (1.0) (1.6) 5% (2.0) (2.7) 6% EBIT (2.6) (6.0) 15% % % EBIT margin -.2% -6.1% 10.1% 7.% 5.0% 2.% Interest and other financial income % Interest and other financial expense (2.2) (6.0) 176% (2.0) (5.1) (4.2) (11.0) Other extraordinary EBT (.8) (5.7) 5% % % EBT margin -4.7% -5.8% 9.1% 8.2%.8% 2.9% Income Tax (2.8) (.5) (1.6) (2.2) Net earnings after tax and minority (2.6) (4.4) 7% % % 22

23 Balance Sheet Interim 2008 amounts in m euros 1/12/2007 1/06/2008 ASSETS Intangible assets Tangible assets Down payments for tangible assets acquisition Deferred tax assets Other long term assets Total fixed assets Current assets Inventories Customers and other trade receivables Down payments Cash and cash equivalents Total current assets TOTAL ASSETS EQUITY AND LIABILITIES Parent company shareholders equity Share capital Share premium account Other reserves (22.9) (.4) Retained earnings (61.6) 4.7 Parent company shareholders equity Liabilities Long term liabilities Long term loan liabilities Finance lease contracts liabilities 9.2 Long term derivative instruments liabilities Provisions for retirement benefits obligations Total long term liabilities Short term liabilities Suppliers and other liabilities Long term loan liabilities payable next year Long term finance lease contracts liabilities payable next year -.2 Other short term liabilities Liabilities from tickets sold but not flown Accrued expenses Derivative instruments liabilities Current tax liabilities Provisions - 0. Total short tern liabilities Total liabilities TOTAL EQUITY AND LIABILITIES

24 Cash Flow Interim 2008 amounts in m euros 0/6/2007 0/6/2008 Cash flows from operating activities Profit of the period Adjustments for: Depreciation of fixed assets Results from sale of fixed assets Profits from sale of subsidiaries (0.0) - Interest and other financial income (0.2) (.6) Interest and other financial expenses Loss /(profit) from financial derivatives (0.1) - Provisions for retirement benefits obligations Cash flows from operating activities before changes in working capital Changes in working capital (Increase) / decrease in inventories (0.5) (0.6) (Increase) / decrease in trade & other receivable (28.1) (22.8) Increase / (decrease) in payables Increase /(Decrease) in financial derivatives liabilities (0.).5 Other changes in working capital (2.8) (1.0) Total changes in working capital Interest expenses paid (0.8) (1.7) Income taxes paid (1.8) Net cash flows from operating activities Cash flows from investment activities Purchases of fixed assets (.5) (2.2) Purchases of intangible assets (0.2) (0.) Sales of fixed assets Advances for acquisition of fixed assets (2.1) 5.5 Sale of affiliates/subsidiaries Interest and other financial income received Net cash flows from investment activities Cash flows from financing activities Loans drawn / (repaid) 8.8 (15.) Share capital increase expenses (1.1) - Changes in financial lease capital (16.4) (10.) Net cash flows from financing activities (8.6) (25.5) Net (decrease)/ increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period

25 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. 25

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