4q 2015 earnings results presentation...
TRANSCRIPT
4Q 2015 Earnings Results Presentation B787 Dreamliner 1
The present document consolidates information from Avianca Holdings SA and its subsidiaries, including unaudited financial figures, operational managerial indicators, financial indicators and managerial projections of future performance, in line with Avianca Holdings SA and its subsidiaries’ business plans. References to future behaviors are indicative and do not constitute a guarantee of compliance by the Company, its shareholders or directors. Unaudited accounting and financial information and projections presented in this document are based on internal data and calculations made by the Company, which may be subject to changes or adjustments. Any change in the current economic conditions, the aviation industry, fuel prices, international markets and external events, among others, may affect the ongoing business results and future projections. Avianca Holdings S.A. herein after Avianca Holdings and its subsidiaries warn investors and potential investors that future projections are not a guarantee of performance and that actual results may differ materially. Every investor or potential investor will be responsible for investment decisions taken or not taken as a result of his or her assessment of the information contained herein. Avianca Holdings S.A. is not responsible for any third parties’ content. Avianca Holdings may make changes and updates to the information contained herein. The information, tables and logos contained in this presentation may not be reproduced without the consent of Avianca Holdings SA
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• 50% CAPEX reduction for 2016, with further reduction initiatives
for the coming 30 months
• Focus on capacity growth strategy geared towards fleet
optimization
• Active deleveraging planned throughout the next 24 months
targeted towards reducing debt indicators.
• Maintenance and Training facilities (MRO and CEO) will be
inaugurated during 1H 2016
• Improvement in 2015 On-time Performance (OTP): 84.48% vs.
75.28% in 2014
Executive Summary
• More than 28 million passengers carried: +7.9% vs. 4Q2014
• A Load Factor of 79.7%
• More than 122K transported tons
• More than 6.4 million members: +9.9%
• 4Q EBIT1 Margin: 8.8%; FY EBIT1 Margin: 5.7%
• 4Q CASK1: -21.1% (8.42¢);CASK ex fuel : -14.0% (6,6¢)
• Write off of the cash balance held in Venezuela ($236.7 million)
• Excluding write off , Net income for FY 2015 would be
$127.6 million
2015 Results
2016 Emphasis
_
Source: Company Information 1 When indicated the figures exclude one-time expenses: $236.7 million non-operating special charge related to the write-off of the value of Venezuelan bolivars held by the Company; $4.2 million associated to extraordinary fleet maintenance charges; $0.8 million loss on sale of property and equipment. 12M Figures exclude one-time expenses informed on previous earnings releases
• Avianca was recognized in the World Travel Awards as
the “Leading Airline in South America”
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B787 Dreamliner
4Q
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Aircraft Type Sep-2015 In Out Dec-2015
Airbus A320 Family1 111 3 1 113
ATR – 72 15 - - 15
Embraer E190* 12 - 5* 7
Airbus A330 10 - 1 9
Cessna 208 11 - - 11
Airbus A330F 5 - - 5
Airbus A300F 4 - - 4
ATR – 42 1 1 - 2
Boeing 787 5 2 - 7
Boeing 767F 2 - - 2
Total 176 +6 -7 175*
During 2015 we continued to advance in our fleet
optimization plan
Adjusted 4Q2015 Operating Fleet Status Capacity
Source: Company Information 1 The Airbus A320 Family is comprised by 10 A318, 22 A319, 50 A320, 3 A321, 8 A319 sharklets, 11 A320 sharklets and 9 A321 sharklets. 2 A320 Family Seating Capacity: A318: 100pax, A319: 120pax, A320: 150pax, A321: 194pax. * Total fleet adjusted by operational changes of the E190 fleet
100/194 pax2
68 pax
96 pax
252 pax
12 Pax
68 tons
40 tons
48 pax
250 pax
53 tons
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4Q
6
10,586
11,566
41,052
44,513
4Q2014 4Q2015 FY2014 FY2015
11.6
9.1
11.8
9.7
4Q2014 4Q2015 FY2014 FY2015
8,422
9,216
32,602
35,478
4Q2014 4Q2015 FY2014 FY2015
Passenger traffic continues to grow while Load Factors improve during 4Q2015
*Source: Company Information
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ASKs – millions RPKs – millions
Yield - US¢ Load Factor
+9.3% +9.4%
79.6% 79.7%
79.4% 79.7%
4Q2014 4Q2015 FY2014 FY2015
+8.8% +8.4%
6,909 7,301 26,230 28,290 PAX
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RASK-US¢ 11.74 9,23 11.46 9,80
113.3
93.9
283.3
249.2
4Q2014 4Q2015 FY 2014 FY 2015
10.67
8.42
10.77
9.24
4Q2014 4Q2015 FY 2014 FY 2015
1,243 1,067
4,704 4,361
4Q2014 4Q2015 FY 2014 FY2015
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Revenues – millions CASK1 - US¢
EBITDAR1 – millions EBIT1 – millions
252.6
229.7
781.2
797.5
4Q2014 4Q2015 FY 2014 FY 2015
-9.0%
-17.1%
Cost saving initiatives materialized during 2015
Source: Company Information 1 When indicated the figures exclude one-time expenses: $236.7 million non-operating special charge related to the write-off of the value of Venezuelan bolivars held by the Company; $4.2 million associated to extraordinary fleet maintenance charges; $0.8 million loss on sale of property and equipment. 12M Figures exclude one-time expenses informed on previous earnings releases
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-21.1%
CASK ex fuel 7,68 6,61 7,49 6,98
Margin 20.3% 21,5% 16.6% 18.3% Margin 9.1% 8,8% 6.0% 5.7%
-14.1%
-7.3%
-14.2%
+2.1% -12.0%
+ 0,8%
+ 28.7% + 26.1% 84.2%
+ 7.7%
+ 1,9%
+ 11.1%
81.5%
70.6%
+ 10.2% + 11.1% 77.5%
+ 5.4% + 6.9% 75.7%
+ 6.5% 81.5% + 5.9%
Central America & Caribbean4
HM to North America2
Home Markets to Europe
Domestic*
Intra Home Markets1
HM to South America3
Increasing Load Factors are the result of network optimization
Total
FY2015 ASK Growth
FY2015 RPK Growth
FY2015 Load Factor
Region
ASK Growth 8.4%
RPK Growth 8.8%
Load Factor 79.7%
+ 10.6%
*Domestic Market: Colombia, Peru, Ecuador 1 Local Intra-Markets: Colombia, Peru, Ecuador, Salvador, Costa Rica, Guatemala; 2 From Local Markets to North America including México 3 From Colombia, Peru, Ecuador and Costa Rica to Bolivia, Chile, Argentina, Brazil ,Uruguay and Venezuela, 4 Belize, Cuba Curacao, Dominican Republic, Panamá, Costa Rica, Guatemala, Honduras, Nicaragua 9
63.2%
12.1%
12.3%
5.3%
Others
7.0%
58.4% 18.0%
12.0%
Others 5.7%
4.5% 1.4%
Source: Aeronáutica Civil, MIDT *Domestic Market: Colombia, Peru, Ecuador 1 Local Intra-Markets: Colombia, Peru, Ecuador, Salvador, Costa Rica, Guatemala; 2 From Local Markets to North America including México 3 From Colombia, Peru, Ecuador and Costa Rica to Bolivia, Chile, Argentina, Brazil ,Uruguay and Venezuela, 4 Belize, Cuba Curacao, Dominican Republic, Panamá, Costa Rica, Guatemala, Honduras, Nicaragua
Market Share in selected Avianca Markets
Intra-home markets Home markets
to North America Home markets
to South America
Home markets
to Spain
1
1 65%
1 26%
2 34%
2 28%
Colombia Domestic1 Peru Domestic2
1 FY2015 2 Nov 2015
3
10
167,0
163,0
4Q2014 4Q2015
326
332
4Q2014 4Q2015
468
536
4Q2014 4Q2015
Avianca Cargo´s performance during 4Q2015
Source: Company information. Does not include Domestic Ecuador and Colombia. 1 Includes consolidated revenues from the cargo operation in Mexico
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Revenues1 – millions ATKs – millions
RTKs – millions Load Factor
-2.4% +14.5%
70%
62%
4Q2014 4Q2015
+1.8%
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Market Share 2015 (%)
20
11
11
11
9
8
30
Market Share FY2015
Avianca Cargo delivers healthy performance in its core markets
Miami2 Colombia1
Other
2015 2014
Source: Aeronautica Civil and Miami International Airport 1 For the period ended December 2015 2 For the period ended December 2015
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16
12
9
2
18 Other
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• 2015 revenues increased 4.5%* vs 2014 • 477K active cobranded credit cards, an increase of 39.8% vs.2014 • More than 6.5 million members, a 9.9% increase vs. 2014 • 77% Burn-to-Earn ratio
*Source: Company Information
Highlights FY2015
LifeMiles Loyalty Program
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New Commercial Partners
+21%
Our strategy – We are committed to…
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Rationalize capacity growth in the next two years. Expected five
years growth: CAGR of 2.2%
1
Rationalize Capex for the coming years while maintaining high
standards of service
2
Maintain levels of profitability and productivity
4
Continue enhancing our cost reduction initiatives through our
corporate programs like Efficiency+ and cost control committee
5
Continue with our initiatives of revenue diversification through
ancillary revenues, Cargo and LifeMiles
6
Deleverage the balance sheet
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3 Improve free cash flow generation
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Flight Plan 2016
ASK
EBIT %
LF
PAX
2015
7.9%
8.4%
79.7%
5.7%
Outlook 2016
3% - 5%
3% - 5%
78% - 80%
5.5% - 7.5%
Source: Company Information 17
Thank You Contact Information:
Investor Relations Office [email protected] T: (57) 1 – 5877700 www.aviancaholdings.com
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