Air Berlin PLC AGM 23 June 2015 London

Transcription

1 Air Berlin PLC AGM 23 June 2015 London

2 AGM 2015 Executive Summary High restructuring expenses impact airberlin's 2014 earnings outlook improved EBIT of EUR m includes restructuring cost of EUR 100.6m Fundamental realignment of business model has been launched (3-Phase-Model) Expected positive effects from the restructuring program Improvement of the operating result (EBIT) by 23 Mio. EUR in Q New revenue management system leads to visible yield improvement Growth of revenue per ASK New line-up of management team 2

3 ATTRACTIVE ROUTE NETWORK Global routes and destinations with high frequencies in our network Los Angeles Chicago New York Dusseldorf Berlin Beijing Fort Myers Miami Abu Dhabi In the year 2014: 132 AB/HG destinations 292 codeshare destinations Curacao Bangkok Phuket Destinations operated by AB Codeshare destinations AGM Sydney

4 STRATEGIC PARTNERSHIPS Etihad Airways & codeshare performance oneworld Positive development of codeshare bookings (passengers in thousands) Common passenger development with Etihad Airways Common passenger development with oneworld partners +7% +9% ,020 1,113 Jan-Dec 2013 Jan-Dec 2014 Jan-Dec 2013 Jan-Dec 2014 Additional routes (STR / VIE - AUH) and frequencies (TXL - AUH) as of winter 2015 Continued increase in oneworld passengers Further growth through closer cooperation with Iberia and American Airlines AGM

5 COOPERATION WITH AMERICAN AIRLINES Common growth Triple Daily from DUS / TXL to JFK Daily to MIA and ORD 6 flights per week to LAX and 3 flights per week to RSW More than 2,500 common codeshare flights per week 81 codeshare destinations 130 codeshare routes 5

6 COOPERATION WITH ALITALIA Codeshare agreements with new destinations covering more destinations in Italy More than 400 codeshare flights per week From 12 airports in airberlin core markets to 15 destinations in Italy Switch to Linate, the most convenient airport in Milan 6

7 PARTNERSHIP WITH ETIHAD More flights to Australia and India & new destination Hong Kong New route AUH - HKG Double daily TXL - AUH with connection to 43 Etihad destinations From14 airports in DACH 2,432 common codeshare flights per week 79 codeshare destinations 100 codeshare routes AGM

8 Financial Charts AGM

9 Performance 2014 and trend 2015 Year 2014 Negative EBIT of EUR m Trend going into 2015 Performance improvement starting in Q Includes restructuring cost of EUR 100.6m Yield up by 4.0% or EUR 4.8/pax vs. prior year Adjusted EBIT of EUR m driven by Disappointing yield development of -0.8% vs. prior year Unit cost per available seat kilometer decreased by -2.8% vs. prior year Net loss of EUR m EBIT improvement of EUR 48.5m Continued yield improvement in Q Yield up by 4.2% or EUR 4.9/pax vs. prior year EBIT improvement of EUR 22.9m Announced restructuring program on track company launches a three-phase business model redesign 9

10 airberlin missed envisaged turnaround in 2014 Total revenue [EURm] EBIT [EURm] Net result [EURm] +0.3% , , % -19.4% Total revenue Lack of revenue growth as higher capacity was offset by lower load factor and negative yield development EBIT EBIT 2014 includes restructuring and one-off costs of EUR 100.6m Excluding restructuring costs most operating costs such as cost of aircraft ownership, fuel, airport charges and other operating costs developed favorably Net result Financial result is EUR 11.6m below prior year Tax result improved EUR 12.5m compared to prior year Net result of EUR m including restructuring and one-off costs AGM

11 Yield and load factor were the main drivers for the 2014 shortfall Capacity seats [m] Passengers [m] Yield/Passenger [EUR] Comments +2.5% +0.6% -0.8% Higher capacity could only partially be sold into the market leading to lower load factor and only a slight increase in passengers Yield development declining Consequently, revenues are only slightly up vs. prior Load factor [%] ASK [bn] Total Revenue [EUR m] year and far below expectations -1.2%pts. +3.1% +0.3% , ,160.2 AGM

12 Cost performance in 2014 in line with expectations Cost (2) /ASK [EUR ct] Comments Total Revenue/ASK [EUR] -2.7% Cost 2) /ASK incl. fuel -4.6% Cost 2) /ASK excl. fuel Full year effect of various cost reductions in 2014 that were initiated in 2013 Renegotiation of aircraft leases Decrease in airport charges % Slight increase of personnel costs due to fixed collective labor agreements Flight Revenue (1) /ASK [EUR] Excluding restructuring and one-off costs improvement in Cost/ASK % Fuel Leasing & depreciation Personnel Airport charges Navigation Other excl. OOR (1) Flight revenue incl. airport tax revenue (2) Cost on EBIT level excl. OOR and restructuring and one-off costs of EUR 100m AGM

13 Outlook AGM

14 Additional restructuring measures have been implemented for 2015/16 Revenue Cost Human Resources Network Reorganization plus Tactical Short Term Measures More point-to-point connections; less complexity Capacity reduction on low performing routes, focus on profitable and promising routes (total capacity reduction versus 2014: -4.8%) Revenue Management Implementation of new revenue management tools to improve yield development (PROS) Optimized pricing: long-haul pricing & Sabre Simply Good New fare concept Easy booking and check-in Simply Good Reduced direct operating costs due to new fare concept (catering and airport charges) Single Narrowbody Fleet Focus on single Airbus fleet Reduction in complexity Better economies of scale Reduced cost of aircraft ownership Maintenance MRO optimization Less MRO costs due to single narrowbody fleet Station Closure Reduction of 5 crew bases in Germany Restationing of approx. 100 pilots to Berlin and Dusseldorf Crew Productivity Increase Network optimization as well as improved crew planning Reduction in surplus personnel Optimization of operational platforms Pilot union contributed to turnaround program Overhead Reduction FTE reduction target: 200 FTE Initiatives to optimize processes Reorganization of departments and teams AGM

15 Realignment of airberlin business model 1st Phase to September nd Phase to March rd Phase from April 2016 Management & Leadership Key performance indicators and incentives already introduced at the top three management levels for 2015 Realignment of corporate structures along the airline value chain to drive performance Review of network strategy and planning, scheduling, revenue management and sales channel management while promoting employee input Market Segmentation & Capacity adjustments Short-term capacity optimisation from March to June 2015 (- 4.5%) implemented Significant yield improvement through new revenue management strategy Realign different sales channels and increase partner airline market share Increase of market share in strategic target markets, airberlin hubs and new partnerships withdrawal from non-strategic markets focus on core business Realignment of cost structure following capacity adjustments Profitability & Growth Developing multi-hub strategy as well as new long-haul destinations Deciding on platform growth strategy as well as outsourcing of non-core activities Improving IT infrastructure as the basis for future growth AGM

16 First signs of financial turnaround are visible EBIT excluding restructuring and one-off charges [EUR m] Prior year Actual Q Q Q Q Q Q % % +6.8% +7.2% +48.5% full year result driven by underachievement in important third quarter EBIT improvement already seen in Q Revenue development driven by network restructuring Further improved CASK performance Continued positive EBIT development in Q Revenue improvement additionally supported by new revenue management system Restructuring measures gain traction on the cost side AGM

17 Stronger yield performance over the last six months Yield [EUR/passenger] Prior year Actual % % % % % % Oct 2014 Nov 2014 Dec 2014 Jan 2015 Feb 2015 Mar 2015 Average yield increase past six months: 4.8 EUR per passenger (+4.1%) Cut loss making routes as part of overall network restructuring New revenue management steering strategy more focused on late term bookings Introduction of PROS (12/2014) Change from manual to automated steering and forecasting systems Change from leg-based to network-based capacity and price allocation Ability to differentiate Point of Sale (POS) AGM

18 Q AGM

19 Load factor is a main driver for the Q improvement Q Q Capacity & Passengers [m] ASK [bn] RPK [bn] Load factor [%] -4.0% % % % % Capacity Passengers ASK RPK loadfactor Remarks Continuous improvements and capacity adjustments results in overall capacity reduction Yield could be improved by higher load factor in the market AGM

20 Stronger revenue performance in Q slightly offset by weaker cost development Yield [ ], Revenue and Cost 1 per ASK [ c.] Cost 1 per ASK incl. fuel [EUR ct] % Q Q % % % Fuel Airport charges Yield R/ASK C/ASK excl. fuel Remarks Leasing & depreciation Successful network and revenue management improvements lead to a R/ASK increase. Navigation & Air transportation tax C/ASK remains nearly constant as increase in personnel expenses and airport charges could be almost offset by lower fuel costs Personnel Personnel costs have risen by a direct employee takeover from NIKI, collective labor developments and non-recurring expenses Higher airport charges caused by non-controllable cost development Other excl. OOR Q Q (1) Cost on EBIT level excl. revenues from other operations AGM

21 airberlin improves Q1 result on operating level Total revenue EBITDAR & EBIT Net result [EURm] +4% Q Q % +13% 0% Total revenue EBITDAR EBIT Net result Higher flight revenue due to higher yields and higher load factors drive total revenue development EBITDAR improvement of EUR 23m EBIT follows EBITDAR as costs of fleet remain constant Improved result due to higher yield and load factor on relatively stable cost base Stable net result due to higher interest expense and valuation swings in hedging instruments AGM

22 Air Berlin PLC AGM 23 June 2015 London Q&A

23 Air Berlin PLC AGM 23 June 2015 London

24 Beschlüsse Resolutions 1 2 Annahme des Jahresberichts und des Jahresabschlusses der Gesellschaft für das am 31. Dezember 2014 beendete Geschäftsjahr Genehmigung des Berichts über die Vergütung der Directors für das am 31. Dezember 2014 beendete Geschäftsjahr To receive the annual report and accounts of the Company for the year ended 31 December 2014 To approve the directors remuneration report for the year ended 31 December Wiederwahl von James Hogan als Director der Gesellschaft To re-appoint James Hogan as director of the Company 4 Wiederwahl von Stefan Pichler als Director der Gesellschaft To re-appoint Stefan Pichler as director of the Company 5 Wiederwahl von James Rigney als Director der Gesellschaft To re-appoint James Rigney as director of the Company 6 Wiederwahl von Ali Ismail Sabanci als Director der Gesellschaft To re-appoint Ali Ismail Sabanci as director of the Company 7 Wiederwahl von Dr. Alfred Tacke als Director der Gesellschaft To re-appoint Dr Alfred Tacke as director of the Company 8 Wiederbestellung von KPMG LLP als Wirtschaftsprüfer der Gesellschaft To re-appoint KPMG LLP as the Company s auditors 9 Ermächtigung der Directors, die Vergütung der Wirtschaftsprüfer zu genehmigen Authorisation of the directors to approve the auditors remuneration Die eingeschränkte Ermächtigung der Gesellschaft, politische Spenden und Ausgaben zu tätigen Änderung der Gesellschaftssatzung, um (i) festzustellen, dass die Mehrheit der Directors im Board Bürger der Europäischen Union sind, und (ii) der Gesellschaft zu erlauben, mehr als einen Stellvertretenden Vorsitzenden zu ernennen (nebst entsprechender Anforderungen zur Nationalität) To give the Company limited authority to make political donations and incur political expenditures To amend the articles of association of the Company to (i) ensure that a majority of directors on the Board are European Union citizens, and (ii) allow the Company to appoint more than one deputy chairman (with related nationality requirements) 24

25 Beschlüsse Resolutions Dafür For Dagegen Against Enthaltungen Votings withheld Gesamt (exkl. Enthaltung Total (excl. Votings withheld) Beschluss 1 / Resolution Beschluss 2 / Resolution Beschluss 3 / Resolution Beschluss 4 / Resolution Beschluss 5 / Resolution Beschluss 6 / Resolution Beschluss 7 / Resolution Beschluss 8 / Resolution Beschluss 9 / Resolution Beschluss 10 / Resolution Beschluss 11 / Resolution