airarabiafy 2010 presentation · - 3 - highlights • air arabia is a national carrier of uae based...
TRANSCRIPT
- 1 -
Investor Presentation
FY 2010
Air Arabia PJSC
- 2 -
Disclaimer
Information contained in this presentation is subject to change without notice, its accuracy is not guaranteed
and it may not contain all material information concerning the company. Neither we nor our advisors make
any representation regarding, and assumes no responsibility or liability for, the accuracy or completeness of,
or any errors or omissions in, any information contained herein.
In addition, the information contains projections and forward-looking statements that reflect the company’s
current views with respect to future events and financial performance. These views are based on current
assumptions which are subject to various risks and which may change over time. No assurance can be given
that future events will occur, that projections will be achieved, or that the company’s assumptions are correct.
Actual results may differ materially from those projected.
This presentation is strictly not to be distributed without the explicit consent of
Company management under any circumstance.
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Highlights
• Air Arabia is a National Carrier of UAE based in Sharjah, and founded by Sharjah Government in 2003.
• Air Arabia is the first and largest low-cost carrier in MENA.
• 44 A 320 Aircraft on order
� RPK - 9.16 Billion (2009 – 8.47 Billion)
� ASK - 11.04 Billion (2009 – 10.51 Billion).
� Passengers carried – 4.46m (2009 – 4.07 m)
� Current fleet: 25
� Sharjah Base 19
� Casablanca Base 4
� Alexandria Base 2
� Destinations: 65
� Sharjah Base 47
� Casablanca Base 13
� Alexandria Base 5
(
Recent Awards
• Best Managed Company in the Middle East by Euro-Money
• ‘Middle East’s leading low-cost airline’ by World Travel Awards
• Sharjah Economic Excellence Gold Category Award.
• World record of Airbus A320 Utilization over 6 years. (30,000 hours)
• LCC of the year by Doha Aviation Summit
Air Arabia Group Network
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Air Arabia Maroc Network
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Performance:High Utilization & High Reliability
Source: Airbus
YTD we have achieved a flying time per aircraft of over 14 hours per day with more than 99% reliability
�Consistently Achieved the Highest Level of Aircraft Utilization in the A320
Family
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Passengers and Aircraft
Total Passengers Geographic Distribution
Fleet SizeNumber of Destinations
* Air Arabia Group
515
2332
3744
5965
0
20
40
60
80
2003 2004 2005 2006 2007 2008 2009 2010
35
811
16
21
25
0
5
10
15
20
25
30
2004 2005 2006 2007 2008 2009 2010
5471,133
1,763
2,700
3,5614,066
4,456
68% 79% 80% 86% 85% 80% 83%-
1,000
2,000
3,000
4,000
5,000
6,000
2004 2005 2006 2007 2008 2009 2010
Pass
engers ('000s)
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Historical Financial Performance (Group) FY 2010
Revenues Gross Profit
EBITDAR Net Profit
192411
749
1,283
2,066 1,972 2,080
-
500
1,000
1,500
2,000
2,500
2004 2005 2006 2007 2008 2009 2010
Revenues (A
ED 000)
2465
130
318
394358
312
19.1%25.9%
17.4%15.8%
12.5%15.0%
18.2%
0
100
200
300
400
500
2004 2005 2006 2007 2008 2009 2010Gross Profit (U
SD in M
M)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
% M
argin
Gross profit Margin
2984
182
421
741 742
59037.6%35.9%34.4%
24.3%20.4%
15.1%
28.4%
0
200
400
600
800
2004 2005 2006 2007 2008 2009 2010
EBIT
DAR (AED 000)
0.0%
10.0%
20.0%
30.0%
40.0%% M
arg
in
EBITDAR EBITDAR Margin
31
101
376
510452
310
25.0%
29.3%
13.5%7.6%
22.9%
14.9%
0
100
200
300
400
500
600
2005 2006 2007 2008 2009 2010
Net Profit (A
ED (M
M)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
% M
arg
in
Net Profit Net Margin
Comparison Q4 2009 to Q4 2010
2010 2009 Variance
Revenue AED 545m AED 503m +42m
Direct costs AED 442m AED 408m +34m
Selling and Marketing AED 8m AED 16m -8m
G+A AED 20m AED 17m +3m
Operating Profit AED 75m AED 62m +13m
Finance deposits AED -2m AED 52m -54m
Net Profit AED 73m AED 114m -41m
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Revenue vs Cost per passengerFY 2010
6% Decrease
Revenue/Passenger – FY 2009 Vs. FY 2010
Cost/Passenger – FY 2009 Vs. FY 2010
6% Increase 2% Increase
Cost/Passenger – Excluding fuel
375
397
Cost/Passenger (AED)
2009 2010
235
239
Cost/ Passenger (AED)
2009 2010
523
493
Revenue/Passenger (AED)
2009 2010
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Operating Statistics (Airline)
2004 2005 2006 2007 2008 2009 2010
Number of Aircraft 3 5 8 11 16 21 25
Average Aircraft 3.0 4.9 6.0 9.5 14.5 17 23
Destinations 15 23 32 37 44 45 66
Number of Passengers in Millions 0.6 1.1 1.7 2.7 3.6 4.1 4.5
RPK (Billions) 1.2 2.5 3.7 5.0 7.1 8.5 9.2
ASK (Billions) 1.8 3.2 4.7 5.8 8.3 10.5 11.0
Average Load Factor 68% 79% 80% 86% 85% 80% 83%
Revenue / Passenger 318.2 354.7 425.0 453.6 546 523 493
Cost / Passenger 348.9 345.3 382.1 351.6 460 375 397
Cost / Passenger (Ex-Fuel) 240.2 220.7 248.0 207.9 229 235 239
EBITDAR Margin 13.9% 20.4% 24.9% 34.4% 36% 38% 28%
Joint venture revenues growing
2008 2009 2010
SAS 60m 82m 89m
Alpha Flight Catering 25m 27m 30m
SATA 6m 11m N/A
Cozmo 7m
Corporate GovernanceAir Arabia applies strict corporate governance regulations, in
compliance with ESCA resolution number 518 of 2009.
• Air Arabia has split the roles of Chairman and CEO.
• Air Arabia’s board consists mainly of Independent Directors, with
representation of non-executive, and executive members.
• Air Arabia’s board of directors has formed 2 main committees:• Audit Committee
• Remuneration Committee
• Air Arabia has set a Corporate Governance Manual that is strictly
adhered to, and stipulates among other practices the following
policies:• Shareholder Communication Statement
• Code of Ethics and Conduct
• Share Dealing policy
• Whistle blowing policy
• Corporate Social & Environmental Policy
• Dividend Policy