Highlights Q EBITDA guidance for 2015 raised to USD million. Higher passenger revenue and lower fuel price reasons for the good results

Transcription

1 ICELANDAIR GROUP PRESENTATION OF Q RESULTS 30 OCTOBER 2015

2 Highlights Q Record EBITDA USD million improving by USD 27.0 million from 2014 Higher passenger revenue and lower fuel price reasons for the good results EBITDA guidance for 2015 raised to USD million 2

3 FINANCIAL RESULTS BOGI NILS BOGASON ǀ CFO

4 USD stronger against other currencies in Q compared to Q % -11% -16% -17% -16% -18% -24% ISK EUR GBP CAD DKK NOK SEK Change in main currencies against the USD; Q315 vs Q314 4

5 The weight of USD increases in revenues Operating income Operating expenses Q Q Q Q % 54% 52% 36% 19% 17% 25% 24% 28% 27% 10% 15% 14% 6% 5% 5% 5% 7% 1% 1% 2% 2% 2% 2% ISK USD CAD EUR GBP Other* ISK USD CAD EUR GBP Other* Other* mainly the Scandinavian currencies 5

6 Profit in Q3 up by 20% compared to last year USD million Q Q % Chg. Operating Income % Salaries and related expenses % Aircraft fuel % Aircraft lease % EBITDA and net profit USD million EBITDA Net Profit 151 Aircraft handling, landing and comm % Aircraft maintenance % Other expenses % 124 EBITDA EBIT EBT Profit for the period EBITDA ratio 35.1% 29.6% 5.5 ppt EBITDAR EBITDAR ratio 37.2% 32.1% 5.1 ppt Q311 Q312 Q313 Q314 Q315 6

7 Growth in all our businesses in Q3 Year-on-year change in % Passengers Route Network ASK Route Network SLF (ppt) Route Network Passengers Regional and Greenland flights ASK Regional and Greenland flights SLF (ppt) Regional and Greenland flights Fleet utilisation Charter flights Sold BH Charter flights ATK Cargo FTK Cargo Available HRN Hotels Sold HRN Hotels Utilisation (ppt) HRN Hotels 7

8 Over 1.1 million passengers carried in Q3 2015, an 18% increase compared to Q % 1, % % % 10% 38% 37% 11% 12% 13% 17% 45% 50% 52% 55% 56% Q311 Q312 Q313 Q314 Q315 To From Via Absolute figures in thousands. 8

9 Record load factor of 87.3% in Q on top of double digit capacity increase Available seat kilometers (ASK) in millions Passenger load factor +75% 3.9 ppt % % 84.0% 83.5% 84.2% 2.3 Q3 11 Q3 12 Q3 13 Q3 14 Q3 15 Q3 11 Q3 12 Q3 13 Q3 14 Q3 15 9

10 EBITDA USD 199 million year to date with EBITDA ratio improving by 4.7 ppt between years USD million 9M M 2014 % Chg. Operating Income % Salaries and related expenses % EBITDA and net profit USD million EBITDA Net Profit Aircraft fuel % Aircraft lease % 199 Aircraft handling, landing and comm % Aircraft maintenance % Other expenses % EBITDA EBIT EBT Profit/loss for the period EBITDA ratio 21.9% 17.2% 4.7 ppt EBITDAR EBITDAR ratio 24.8% 20.5% 4.2 ppt 9M11 9M12 9M13 9M14 9M15 10

11 Effective fuel price paid in Q % higher than the average world fuel price 1, % Average World Market Price Effective Price Figures: USD/ton. 11

12 51% of estimated fuel usage has been hedged in the next 12 months Period Estimated usage (tons) Option volume Swap volume Total swap and option contracts %hedged Av. Swap Bought call price USD strike Sold put strike Oct % Nov % Dec % Jan % Feb % Mar % Apr % May % Jun % Jul % Aug % Sep % Total % Q Q Q Q M % 54% 58% 42% 51% 12

13 Cash and cash equivalents amounting to USD million at the end of September 2015 Cashflow overview 9 months Cashflow overview Q3 months Net cash from operating activities Net cash used in investing actiities Net cash used in financing activities Net cash from operating activities Net cash used in investing actiities Net cash used in financing activities 9M M 2014 Q Q % 13

14 Balance sheet remains strong with 46% equity ratio and low interest bearing debt USD million Assets Operating Assets Intangible assets Other non-current assets Total non-current assets Other current-assets Marketable securities Cash and cash equivalents Total current assets Total assets 1, USD million Equity and liabilities Stockholders equity Loans and borrowings non-current Other non-current liabilities Total non-current liabilites Loans and borrowings current Trade and other payables Deferred income Total current liabilites Total equity and liabilities 1, Equity ratio 46% 46% 43% Current ratio Net interest bearing debt Interest bearing debt

15 OUTLOOK BJÖRGÓLFUR JÓHANNSSON ǀ PRESIDENT AND CEO

16 42 destinations & 410 connections in our Route Network in

17 18% increase in capacity in 2016 and 14% increase in the number of trips Change in capacity* 2016 vs forecast 2015 Change in number of trips 2016 vs forecast % 18% 3% 14% 7% 6% 4% 4% New destinations Increased capacity EUR Increased capacity NA Total capacity increase New destinations Increased number of trips EUR Increased number of trips NA Total increase in number of trips * Capacity = Available Seat Kilometers (ASK) 17

18 Changes in the fleet strategy in our Route Network in 2016 onwards Two B767 added to the fleet in 2016 B737 MAX added to the fleet in The total number of confirmed order for B737 MAX is 16 until B767 B757 B737 MAX 9 B737 MAX 8 18

19 New fleet and new destination in our regional airline operations Route map Regional airline operations Kangerlussuaq in west Greenland a new destination summer 2016 Three Bombardier Q400 aircraft will replace five Fokker-50 aircraft in

20 Continued growth in our hotel operation 2016 Opening in cooperation with Hilton Worldwide 115 rooms 2017 Opening of a lifestyle boutique hotel downtown Reykjavik 50 rooms 2017 Opening of a luxury hotel downtown Reykjavik 160 rooms Build-up of a Hotel at Mývatn in the North of Iceland 20

21 Robust outlook for other businesses 21

22 EBITDA guidance for 2015 raised to USD million EBITDA development in USD million Main assumptions: Ι Successful operations in the first nine months of the year Ι Strengthening booking status in the international Route Network in Q Ι Ι Outlook in other businesses of the Company is good EUR/USD rate assumed 1.12 Q4 2015, an increase from last forecast in July which was 1.10 Ι Average fuel price (excluding hedging) 490 USD/ton in October, 480 USD/ton in November and 550 USD/ton in December Guidance

23 ICELANDAIR GROUP Reykjavík Airport 101 Reykjavík Iceland Tel: Fax: Copyright Icelandair Group All rights reserved