Avianca Holdings S.A - Corporate Presentation Nov 2018 - AWS
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Avianca Holdings S.A.
Corporate Presentation
Nov 2018
Disclaimer The material that follows comprises information about Avianca Holdings S.A. (the “Company”) and its subsidiaries, as of the date of the presentation. It has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities and should not be treated as giving legal, tax, investment or other advice to potential investors. The information presented or contained herein is in summary form and does not purport to be complete. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness, or completeness of this information. Neither the Company nor any of its affiliates, advisers or representatives accepts any responsibility whatsoever for any loss or damage arising from any information presented or contained in this presentation. The information presented or contained in this presentation is current as of the date hereof and is subject to change without notice, and its accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives makes any undertaking to update any such information subsequent to the date hereof. This presentation contains forward-looking statements, which are based upon the Company and/or its management’s current expectations and projections about future events. When used in this presentation, the words “believe,” “anticipate,” “intend,” “estimate,” “expect,” “should,” “may” and similar expressions, or the negative of such words and expressions, are intended to identify forward-looking statements, although not all forward-looking statements contain such words or expressions. Additionally, all information, other than historical facts included in this presentation is forward-looking information. Such statements and information are subject to a number of risks, uncertainties and assumptions. Forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated due to many factors. As for forward-looking statements that relate to future financial results and other projections, actual results may be different due to the inherent uncertainty of estimates, forecasts and projections. Because of these uncertainties, potential investors should not rely on these forward-looking statements. Neither the Company nor any of its affiliates, directors, officers, agents or employees, nor any of the shareholders or initial purchasers shall be liable, in any event, before any third party (including investors) for any investment or business decision made or action taken in reliance on the information and statements contained in this presentation or for any consequential, special or similar damages. Certain data in this presentation was obtained from various external sources, and neither the Company nor its affiliates, advisers or representatives has verified such data with independent sources. Accordingly, neither the Company nor any of its affiliates, advisers or representatives makes any representations as to the accuracy or completeness of that data, and such data involves risks and uncertainties and is subject to change based on various factors. In addition to IFRS financials, this presentation includes certain non-IFRS financial measures, including Adjusted EBITDAR, which is commonly used in the airline industry to view operating results before depreciation, amortization and aircraft operating lease charges, as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other asset acquisitions. However, Adjusted EBITDAR should not be considered as an alternative measure to operating profit, as an indicator of operating performance, as an alternative to operating cash flows or as a measure of the Company’s liquidity. Adjusted EBITDAR as calculated by the Company and as presented in this document may differ materially from similarly titled measures reported by other companies due to differences in the way these measures are calculated. Adjusted EBITDAR has important limitations as an analytical tool and should not be considered in isolation from, or as a substitute for an analysis of, the Company’s operating results as reported under IFRS. The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of the Company or this proposed offering. 2
Agenda
1 Company Overview and Track Record
Leading Airline in Latin America focused on
2 service excellence
3 Strong Operational and Financial Performance
Diversified Sources of Revenue with Growing
4 Non-Passenger Businesses
5 Strategic Projects and Full Year Outlook
3
Company Overview and Track Record
Successful Integration with Further Synergy Generation Potential
Well-Defined Integration Plan
Realized Revenue Synergies: $219MM Total
Revenue’17:
LifeMiles $4,625 MM
Maximization
Single 2018
Ancillary Revenue
Commercial Code
Revenue
Single Brand Management
Star Alliance Single Web Page Optimization 2017
Single Loyalty Program Core Systems Migration Network / Fleet
2016 Optimization
Network & Commercial Integration ERP
Single Management
Intra Hub Connectivity
Team Fleet
Interchangeability 2015 MRO and CEO(3)
Total Revenue’ Single Operations
10: $2,815MM(1) 2014 Management
Airport Optimization Model Cost Control Initiatives
2013
2010 2011 2012
Potential Cost-Reduction Synergies: US$80MM
EBIT
Margin:
~4.5%(2) 5.3% 6.6% 8.4% 6.2% 5.9% 7.2% 9.4% 6% - 8%
Valores y Fortalezas Compartidas
Experience operating widebody aircraft Customer Both airlines shared similar brand and • Complementary networks offer a unique growth
Complementary Complementary
offers new opportunities for traffic from Service customer strategies, providing a high proposition in Central and South America
Fleet Routes
Central America and Lima Approach standard of service • Only 2 routes overlapped before combination
5
Source: Company. / (1). Consolidated figures for the eleven months ended December 31, 2010. (2). Includes EBIT contribution of Avianca S.A. and GTH. (3). Maintenance, Repair and Overhaul providers (“MRO”) and Operational Excellence Center (“CEO”).
Leading Airline with Strategic Footprint in the Americas
Geographic Footprint
US$4,625 mm Total Revenues* in 2017
US$1,006 mm Total EBITDAR* in 2017
190 Aircraft Fleet (178 Pax and 12 Fre Aircraft1) as of 3Q18.
Avrg Jet Fleet Age of 7.0 Years as of Nov-18.
Intra-Home Markets(4)
3 Hubs: (NY008B8R)
(NY008B8R)
(NY008B8R)684268_1.wor
684268_1.wor
684268_1.wor
Bogota, San Salvador and Lima Home Markets to Spain
#1
105+ Destinations and 6,000+ Weekly Departures
63.7% Participación de #1
Mercado(3)
Colombia Domestic 28.6% Participación de
Mercado(3)
Leading Loyalty Coalition Program
with 8.1+ mm Members #1
53.8% Participación de
Complementary Business Lines – Mercado(3) Avianca Brasil(2)
~20% of Consolidated Revenues in 2017
✓ Single commercial code
✓ Single website
Courier
✓ Single Avianca brand ✓ Interchangeability of aircraft
Source: Company, Aeronáutica Civil de Colombia, and internal data derived from Travelport Marketing Information Data Tapes (“MIDT”).
Note: market shares based on number of passengers
(1). 5 Airbus 330F, 5 Airbus 300F and 2 Boeing 767F
(3). Sourced from Company, Sep-18 for Colombia Domestic, as of Sep-18 for Intra-Home Markets and Home Markets To Spain 6
(4). International traffic within our Home Markets (Colombia, Ecuador, Peru, El Salvador, Costa Rica, Nicaragua, Honduras, Guatemala, Belize, excluding Central American &
(2). Brazilian operations reflect the code-share agreement with Oceanair (“Avianca Brasil”), including the licensing of the Avianca trademark Caribbean (non-regional)).* When indicated the figures are adjusted by one-time items during 2017
Leading Airline in Latin America focused on service excellence
Leading Airline in Latin America…
Leading Position in Latin American Markets(1) Significant Market Share Gains in Key Markets – Passenger Evolution (MM)
Colombia(2) Peru(2)
Domestic Operations
Latam Others
20.7% 9.4%
Avianca
Avianca VivaCo
9.9%
13.4% Starup
53.8% Colombia Domestic1 Peru Domestic2
2.7%
Satena
4.7%
1%
Others Copa Easyfly Peruvian Latam
59.2%
#1 0.8% 1.6% 5.0% 12.8%
Leading Airline with Strategic Footprint in the Americas(3)
Colombia Domestic
53.8% Market Share
▪ Unparalleled route network connecting the Americas
#3
▪ Leadership position in the markets served:
Ecuador Domestic
24.5% Market Share
~53.8% domestic market share in Colombia
#3 ~63.7% market share in Intra-Home Markets(4)
Perú Domestic
~28.6% market share in Home Markets to Spain routes
9.9% Market Share
Source: Company and local regulators.
(1) Market share based on number of passengers. Colombia: 3Q18, Peru: 3Q18, Ecuador: Jan-18 to May - 18
Undisputed leadership connecting passengers across our home markets with
(2) Brazilian operations reflect the code-share agreement with Oceanair (“Avianca Brasil”), including the licensing of the Avianca trademark to 2016
(3)
(4)
Reflects market share in the routes it operates as of June 2018.
Based on domestic and international passengers. Colombia and Peru, as of 3Q18 one another and with North America, Europe and South America 8
(5) Market shares sourced from Company.
(6) International traffic within our Home Markets (Colombia, Ecuador, Peru, El Salvador, Costa Rica, Nicaragua, Honduras, Guatemala, Belize, excluding Central American & Caribbean (non-regional).
Successful Fleet Optimization Leading to Reduced Complexity
2010 – 9 Families 2017 – 7 Families Long Term Fleet – 4 Families by 2020
Average Jet Fleet Age of 10.1 Years
A330 B737 F100 Boeing 787 B767F Boeing 787 A320 Neo
✓ More fuel efficient than ✓ 15% less fuel consumption
A320 Family(1) E190
many similarly sized ✓ Up to 500nm of additional
airplanes
A320 B767 Regional ✓ Range & Up to 3% cost
savings
ATR 72 / 42 Cessna 208 ATR72 A330F
E190 MD83 B757 A330 Pax / 330F /300F
✓ ATR72s for improved ✓ 40% more cargo capacity vs.
regional capacity previous cargo fleet
Backlog Designed to Enhance Fleet Efficiency(2)
✓ Increased fuel efficiency & Improved ✓ New B787-8: +250 Pax (B: 28; E: 222) 2018 2019 2020 2021 2022+ Total
technical dispatch reliability
✓ A321S: fuel-saving Sharklets –offers up to
Modern B787 1 3 - - - 4
✓ Reduced training costs and maintenance 5% fuel-burn savings (+100 nautical
fleet
expenses miles/185 kilometers) A319 - - 4 4 12 20
providing
platform for ✓ Improved range and network A320 5 6 14 17 56 98
higher performance
profitability A321 2 - 2 2 11 17
✓ Opportunity to up gage in congested
Jet passenger operative
markets & Increased regional capacity Total(1) 8 9 20 23 79 139
9
Fleet average age: 7.0 years
Strong Operational and Financial Performance
Demand outgrows capacity deployment resulting in record
Load Factor
Region 3Q18 RPK Growth 3Q18 ASK Growth 3Q18 Load Factor
3.14% 3.05% 84.9%
Domestic*
Intra Home
Markets1 4.16% 1.59% 81.0%
Home Markets to
North America2 14.72% 15.11% 86.0%
Home Markets to
South America3 -7.13% -5.78% 82.8%
Central America &
Caribbean4 4.86% 7.16% 76.8%
Home Markets
to Europe 13.04% 12.13% 88.5%
Total RPK 6.8% ASK 6.7% Load Factor 84.7%
*Domestic Market: Colombia, Peru, Ecuador 1 Local Intra-Markets: Colombia, Peru, Ecuador, Salvador, Costa Rica, Guatemala; 2 From Local Markets to North América including México 3 From Colombia, Perú, Ecuador and Costa Rica to Bolivia, Chile, Argentina, Brazil and Uruguay, 4 Belize, Cuba Curazao, Republica Dominicana, 11
Panamá, Costa Rica, Guatemala, Honduras, NicaraguaDemand recovery in core markets drive yield improvement
3Q RPKs – Millions 3Q Load Factor
+6.8%
+6 bps
+5.5%
+71 bps
11,194
32,496 84.6% 84.7%
30,800 83.5% 82.8% 83.5%
10,483 81.3%
9,997
9,441
3Q15 3Q16 3Q17 3Q18 9M17 9M18 3Q15 3Q16 3Q17 3Q18 9M17 9M18
3Q ASKs – Millions 3Q Yield - US¢
+6.7%
+4.6% +6.0%
13,220 +7.0%
38,907 9.5 9.4 9.3
37,190 8.8 8.9 8.7
12,389
11,973
11,618
3Q15 3Q16 3Q17 3Q18 9M17 9M18 3Q15 3Q16 3Q17 3Q18 9M17 9M18
12
Quarterly Full YearAvianca remains committed to pursue a leaner cost
structure (Unadjusted)
3Q Revenues – US millions 3Q EBITDAR – US millions
9.6 22.0%
9.4 9.3
8.9 9.3 21.6%
8.9 255 20.6%
19.1%
177 17.3%
222 229 683
182 652 585
229
16.8%
1,054
895 880 932 2,669 3,014 213 213
604
3Q15 3Q16 3Q17 3Q18 9M17 9M18 3Q15 3Q16 3Q17 3Q18 9M17 9M18
3Q CASK and CASK ex Fuel - US¢ 3Q EBIT – US millions
2016 9.2%
7.9%
9.0 8.8 8.8 237
8.2 8.5 8.3 107
6.5%
5.6%
6.8 6.4 6.6 6.4 6.4 6.5 83 7.1% 165
2017 72 68
4.6%
3Q15 3Q16 3Q17 3Q18 9M17 9M18 3Q15 3Q16 3Q17 3Q18 9M17 9M18
13
Quarterly Full Year Non-passanger Revenues EBIT/EBITDAR Margin RASKAvianca remains committed to pursue a leaner cost
structure (Adjusted)
3Q Revenues – US millions 3Q EBITDAR – US millions
9.4 9.6
9.3 23.4%
8.9 9.3
9.0 21.6%
20.4% 229 21.1%
177 279
229 229
198 182 652 585 223
18.6% 709 18.5%
963 1,054
895 880 2,701 3,014
665
3Q15 3Q16 3Q17 3Q18 9M17 9M18 3Q15 3Q16 3Q17 3Q18 9M17 9M18
3Q CASK and CASK ex Fuel - US¢ 3Q EBIT – US millions
2016 11.0%
132 265
8.7 8.6 8.7 8.3 8.6
8.2 7.5% 7.9%
7.0% 7.9%
6.5 6.4 6.6 6.3 6.4 6.4
82 83 86
237
6.6%
3Q15 3Q16 3Q17 3Q18 9M17 9M18 3Q15 3Q16 3Q17 3Q18 9M17 9M18
14
Quarterly Full Year Non-passanger Revenues EBIT/EBITDAR Margin RASK 1. When indicated the figures are adjusted by the following one-time items: ACDAC’s operatives expenses $-17,854MDebt Overview and Deleveraging Plan
3Q18 Debt Profile
By Type(1) By Currency
Bonds 4,65% COP
Type(1) Currency Avg. Rate Bonds 1,76%
0.70% COP EUR
USD
Aircraft Debt USD 4.00%
14.48%
Bonds COP 8.40%
Aircraft
Debt USD
Bonds USD 7.95% 60.31% USD
25.21%
Corporate Corporate
USD 6.10%
Debt Debt
USD 93,59%
Total 5.21%
3Q18 Debt Amortization Schedule (US$MM)
1.833
AIRCRAFT CORPORATE DEBT BONDS
359.61
999
549.9 1,474
517 510
30.2
273 170 148 227
18.2
138 317.6 302.0 283.2
116.3
____________________
Source: Company. 2018 2019 2020 2021 2022+ 15
(1) Excludes US$6.3 Millions of corporate debt in COP and US$128.2 Millions of aircraft debt in EUR.Diversified Sources of Revenue with Growing Non- Passenger Businesses
Avianca Cargo: Financial and Operative Results
Segment Overview Key Metrics (Cargo and Courier)
Revenue (US$MM)(2) ATK (MM) (3)
▪ Strong performance for the first 9M18 and for 3Q 2018 Avianca Cargo focused +6.4% 149.1
-4.4%
in yield boosting trough fare increase, awaiting for best cargo prices in the +13.3% 449
1,903 1,836
4Q18 season 140.2 397 617.8 590.5
▪ Network improving thanks to the connections increase to and from Asia and
Europe through commercial partnerships and increased widebodies capacity 3Q17 3Q18 9M17 9M18 3Q17 3Q18 9M17 9M18
utilization
RTK (MM)(3) Load Factor
-9.6%
-3.2%
369.0 1,055 1,039 55.4% 56.6%
333.5 59.7% 56.5%
3Q17 3Q18 9M17 9M18 3Q17 3Q18 9M17 9M18
Market Share Colombia (3Q18)4 Market Share Miami (3Q18)5
38.5% 34.5%
31.7%
13.3% 14.5%
11.4% 12.0%
9.0% 8.1% 8.1%
7.4% 6.2%
5.4%
AVH Atlas Latam UPS Skylease Others Atlas Latam AVH UPS Amerijet American Others
Airlines
17
Source: Company.
(1) On a per trip basis. (2) Includes consolidated revenues from the cargo operation in Mexico and Deprisa (Other Business Unit) (3) Includes bellies and excludes Colombia domestic operations. Includes commercial agreements with OceanAir Linhas Aereas, not included in official statistics.
(4) International Cargo – Aeronáutica Civil de Colombia (as of Sep 2018) (5) Miami-Dade Aviation Statistics, by airline group (as of Sep 2018)LIFEMILES COMPAÑÍA DE LEALTAD
Strong and Growing Network Commercial Partners
Strong Brand Recognition
Co-Branded Credit Cards
Selected Air Companies
LifeMiles won 2 categories in the 2017 Freddie Awards Selected Financial Institutions
Best Redemption Ability, Best Promotion, Up-and-Coming Program
2015 2016 2017 ~70 banks with active contracts
1 Best Promotion 1 Redemption Ability 1 Best Promotion Selected Regional Hotels
1 Up and Coming 1 Best Promotion 1 Up and Coming
Program Program Other Selected Commercial Partners
1 Up and Coming
Program
Robust Financial and Performance and Leading Market Positions
Members (MM) Geographic Presence Quarterly Highlights
• 3Q18 gross billings increased 17.4% vs
8.6 3Q17
7.8
7
6.5 • Active cobranded credit cards reached
6
5.4 671K, an increase of 7.1% vs. 3Q17
4.9
4.4
• Approximately 8.6 million members,
+14.5% increase vs. 3Q17
Home
Markets(1) • 433 commercial partners, +28.9% vs
3Q17
2011 2012 2013 2014 2015 2016 2017 3Q18
Source: Company 18
(1) LifeMiles home markets include Colombia, Peru, Ecuador and Central America.Flight Plan 2018
3Q 2018 2018 OUTLOOK
PA X 3.3% 5.0% – 7.0%
ASK 6.7% 8.0% – 10.0%
LF 84.7% 81.0% – 83.0%
EBIT¹ 7.0%
6.0% – 8.0%
EBIT 5.6%
Source: Company Information
1. When indicated the figures are adjusted by the following one-time items: ACDAC’s operatives expenses $ -17,854MThank You
Contact Information:
Investor Relations Office
ir@avianca.com
T: (57) 1 – 5877700
www.aviancaholdings.comYou can also read
