Luis Pinto, CFO, NetJets Europe. NetJets Europe - Flying the fractional flag

Transcription

1 Luis Pinto, CFO, NetJets Europe NetJets Europe - Flying the fractional flag

2 NetJets Europe history and mission NetJets Europe was founded in 1996, financial backing from Berkshire Hathaway Founded to meet a clear need on average a private jet user flies 160 hours out of a potential 800 hours per year an aircraft can fly Aim is to deliver maximum value for the customer who doesn t need their own jet but wants the flexibility private aviation provides

3 NetJets Europe in numbers 150 jets, 8 aircraft types (light to large cabin) Access to over 800 jets globally Bombardier and Embraer aircraft joining the fleet first delivery Global 6000 in Q customers added new customers to the NetJets Europe programme Access to 5,000 airports worldwide

4 Business aviation - a valuable business tool Value in today s context more important than before As a business tool, business aviation still critical CEOs/CFOs need to demonstrate responsible and efficient use of funds

5 Fractional Ownership How does it work? Owners purchase shares from 1/32 nd of an aircraft over a fixed term, from 3-5 years Customers have guaranteed availability of a jet from anywhere in Europe within 10 hours Option for customers to purchase card for on-demand use in blocks of 25 hours Customers can use their share in any way needed e.g. multiple simultaneous flights, different users Completely hassle free experience take off within 20 minutes of arriving at airport At end of the ownership term; NetJets buys back the share at fair market value Pricing : Starting at 143,000 for card, from US$125,000 for a fractional share

6 Owners profile 75% businesses ( incl. 25% of the Eurostoxx, 20% of the DAX), 25% HNWI 25% of the businesses flying with us are entrepreneurs Over 70% of our flying is with our corporate customers Need great flexibility and privacy when travelling for business and see NetJets as the best way to remain productive when in the air For them it is the smartest way to fly they have the benefits of their own private airline at a fraction of the cost of owning and maintaining whole jet

7 NetJets Europe the market Recession slowed growth globally and shifted focus to efficiency, forward planning and product offer NetJets is increasingly of value in a market of economic uncertainty, volatility and where reactivity is key Addition of new customers to the programme and retention of existing customers higher than initially forecasted NetJets Europe s mature markets UK, France, Germany, Switzerland Great potential in Russia and Middle East Second edition of NJE Doing the Deal 2012 study reveals that global M&A predicted to rise by over 250bn in Optimism high in spite of concerns over global economy and face to face contact to build strong relationships when concluding a deal is a key success factor

8 NetJets Europe Russia and Middle East growth potential Russia Part of the BRIC economy: fastest growing market which is the closest to our European Operations Moscow market grew by 10%, St Petersburg grew by 20% vs. 2.5% in Europe in hours tailored product in Russia available for customers flying to and from Moscow and/or St Petersburg 20% off standard pricing on flights of over three hours Middle East Business aviation traffic between Europe and Middle East - +11% in 2011 vs % growth in NetJets Europe flight hours in 2011 vs Fuelled by UAE, Qatar and Kuwait Serving our Owners from our European operations but looking at a tailored solutions for the region

9 New Product: NetJets Europe Direct Financing NetJets Europe Direct Financing product launched today Response to increasing abandonment of aviation financing by banks and lending institutions Only Fractional Ownership of aircraft company to provide such a product (BH backing) Product will fill in the gap between the lease and the acquisition programme Allow prospects to buy into NetJets acquisition programme without advancing the entire capital while taking advantage of the tax benefits from asset ownership Need in Eastern Europe and Russia markets to provide financing (Key markets for NJE) but available across all regions NetJets Europe Direct Financing product specifics Competitive interest rate Down payment of 25% based on aircraft current sales pricing

10 The future Value going to continue to be a key factor Quality, consistency, safety of service and Berkshire Hathaway s backing are NetJets Europe key differentiators Globalisation marches on at pace, international business the norm Pace of business has increased, need for executives to be in the right place at the right time more than ever In this business for the long-term, financially backed by Warren Buffett s Berkshire Hathaway