1Q 2016 Earnings Results Presentations22.q4cdn.com/896295308/files/doc_financials/2016/... ·...
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1Q 2016 Earnings Results Presentation B787 Dreamliner
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
• The Company reduced its fleet CAPEX by USD 1.4
billion for the next 30 months and reaffirmed its
leverage target of no more than 5.0x by 2019
• Improvement in 2016 On-time Performance (OTP): ~81% vs. 77% in 2015 +400bp
• Avianca Cargo transported 9.6k tons of flowers for St. Valentine’s Day
• Lifemiles was awarded as “Up and Coming Program of the Year “, “Best Promotion” and “Best Redemption Ability” in the Freddie Awards
• We successfully began test trials in our MRO facilities, which we expect to be fully operational by 2H2016
Executive Summary
• More than 7.1 million passengers carried:
+6.8% vs. 1Q2015
• A Load Factor of 78.8%
• More than 127k transported tons
• 6.6+ million members: +9.7%
• EBIT1 Margin of 7.2 % for 1Q2016: +106bps vs.
1Q2015
1Q2016 Results
1Q2016 Milestones
_
Source: Company Information 1. When indicated 1Q2015 Figures used for comparison purposes exclude one-time expenses informed on its correspondent earnings release
1er avión del MRO – Martes 3 de Mayo. We launched a new VIP Lounge in Miami International Airport
B787 Dreamliner
1Q 2016
Aircraft Type Dec.2015 In Out Mar.2016
Airbus A320 Family1 113 - -2 111
ATR – 72 15 - - 15
Embraer E190 12 - -5* 7
Airbus A330 9 - -1 8
Cessna 208 11 - - 11
Airbus A330F 5 - - 5
Airbus A300F 4 - - 4
ATR – 42 2 - - 2
Boeing 787 7 - - 7
Boeing 767F 2 - - 2
Total 180 - -8 172*
During 1Q2016 we started our fleet optimization
plan
1Q2016 Adjusted Operating Fleet Status Capacity
Sorce: Company Information 1 The Airbus A320 Family is comprised by 10 - A318, 25 - A319, 50 – A320, 3 – A321, 7 – A319sharklets, 7 – A320sharklets and 6 – A321sharklets. 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
Grounded 1 321 – Grounded 9 de Enero para Devolución al Lessor 1 330 – 14 Enero 1 320 - Out of Fleet 04 Marzo
1Q 2016
10,549
11,504
44,513
45,467
1Q2015 1Q2016 FY2015 LTM
10.8 8.7
9.7 9.3
1Q2015 1Q2016 FY2015 LTM
8,332
9,060
35,478
36,206
1Q2015 1Q2016 FY2015 LTM
Passenger traffic growth matches capacity expansion
Source: Company information
R 218 G 41 B 28
ASKs – millions RPKs –millions
Yield - US¢ Load Factor
+9.0% +8.7%
79.0% 78.8%
79.7% 79.6%
1Q2015 1Q2016 FY2015 LTM
+2.1% +2.1%
CASK-ex fuel 7.41 6.67
9.93
8.11
1Q2015 1Q2016
1Q 2016 results are the outcome of the network optimization initiatives
1,116
1,005
1Q2015 1Q2016
R 218 G 41 B 28
Revenues – millions CASK1 - US¢
RASK-US¢ 10.58 8.74
-18.3%
Source: Company Information 1- When indicated 1Q2015 Figures used for comparison purposes exclude one-time expenses informed on its correspondent earnings release
-9.9%
EBITDAR1 – millions EBIT Margin1 - US¢
6.1%
7.2%
1Q2015 1Q2016
205.1
214.9
1Q2015 1Q2016
Margin 18.4% 21.4% EBIT million 68.4 72.2
+4.7% +106bps
-10.1%
EBITDAR Margin 14.7% 18.4% 21.4%
4.6%
6.1%
7.2%
1Q2014 1Q2015 1Q2016
EBIT USDM 50.0 68.4 72.2
Profitability levels during 1Q2016 continued to improve
R 218 G 41 B 28
EBIT Margin Evolution1 –
EBITDAR Margin +~660bps
Source: Company Information 1- When indicated 1Q2015 and 1Q2014 Figures used for comparison purposes exclude one-time expenses informed on its correspondent earnings release
+264bps
+ 8.2%
+ 20.3% + 24.7% 82.7%
+ 7.7%
+ 4.9%
+ 11.6%
79.5%
68.3%
+ 4.4% + 9.4% 77.8%
+ 12.4% + 7.0% 73.0%
+ 2.2% 82.7% + 1.7%
Central America & Caribbean4
HM to North America2
Home Markets to Europe
Domestic*
Intra Home Markets1
HM to South America3
Healthy Load Factors are the result of Avianca’s network flexibility and stable traffic growth
Total
1Q2016 ASK Growth
1Q2016 RPK Growth
1Q2016 Load Factor
Region
ASK Growth 9.0%
RPK Growth 8.7%
Load Factor 78.8%
+ 17.4%
*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 ,Uruguay and Venezuela, 4 Belize, Cuba Curazao, Republica Dominicana, Panamá, Costa Rica, Guatemala, Honduras, Nicaragua
Región
ASK Growth
RPK Growth
Load Factor
DOM COL
4.9% 8.9% 77.3%
DOM PER
0.5% 1% 81.3%
DOM ECU
5.7% -0.9% 68.2%
Región
ASK Growth
RPK Growth
Load Factor
BOG MAD
2.2% 7.9% 85.1%
BCN BOG
5.6% 9.6% 87.0%
BOG LHR
81.5% 88.2% 77.7%
60.7%
12.5%
12.6%
5.2%
Otros 9.0%
58.8% 17.2%
13.4%
Otros 5.2%
4,0% 1.4%
*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 ,Uruguay and Venezuela, 4 Belize, Cuba Curazao, Republica Dominicana, Panamá, Costa Rica, Guatemala, Honduras, Nicaragua
Avianca consolidates its leadership in the Colombian Domestic Market
Source: Aeronáutica Civil, MIDT
Intra-home markets Home markets
to North America Home markets
to South America
Home markets
to Spain
1
1 65%
1 23%
2 32%
2 31%
Colombia Domestic1 Peru Domestic2
1 March 2016 2 February 2015
2
155
147
1Q2015 1Q2016
300
304
1Q2015 1Q2016
509
559
1Q2015 1Q2016
Avianca Cargo: Financial and Operational Results
Source: Company information. Dos not include Domestic Ecuador and Colomnia.
R 218 G 41 B 28
Revenues – millions ATKs – millions
RTKs - millions Load Factor
-5.1% +9.8%
58.9%
54.4%
1Q2015 1Q2016
+1.5%
Otros
Amerijet
Atlas Air
UPS
AVH
Cent./Sky
LATAM
2015 2014
Otros
DYA
MARTINAIR
UPS
LAN
CENT & SKY
AV 38
15
15
10
3
3
17
Market Share as of March 31 (%)
18
12
11
11
9
8
31
Market Share 1Q 2016
Avianca Cargo: Market Share
Miami Colombia
Other Other
2016 2015
LifeMiles:“Up and Coming Program of the Year”
• 1Q’16 revenues increased 31.7% vs 1Q15 • 453K active cobranded credit cards, an increase of 28.2% vs. 1Q’15
• More than 6.6 million members, a 9.7% increase vs. 1Q’15
• 251 commercial partners, +17% vs 1Q’15
Highlights 1Q2016
Freddie Awards 2016 “Best Redemption Ability” in the Americas “Best Promotion” in the Americas” “Up and Coming Program of the Year” 210 Award
In Summary
16
1
As the Company successfully rationalized its Capex for the next 30
months, which will average ~USD280 million from 2017 to 2019, we expect to:
2
Maintain and further enhance the levels of profitability and
productivity
4
5
Continue with our initiatives of revenue diversification through
ancillary revenues, Cargo and LifeMiles
3
Improve free cash flow generation
Continue our cost reduction initiatives through our corporate
programs
Deleverage the balance sheet (reaffirming our Net Debt to EBITDAR
target of no more than 5x by 2019)
2016
Avianca Holdings maintains its 2016 Guidance
ASK
LF
PAX
Outlook FY2016
3% - 5%
3% - 5%
78% - 80%
5.5% - 7.5%
Fuente: Información de la Compañía
EBIT1 %
1. Does not include extraordinary items for the period:_________
Thank You Contact Information:
Investor Relations Office [email protected] T: (57) 1 – 5877700 www.aviancaholdings.com