Avianca Holdings S.A. 3Q 2018 Earnings Presentation 2018

Transcription

1 Avianca Holdings S.A. 3Q 2018 Earnings Presentation 2018

2 Disclaimer The present document consolidates information from Avianca Holdings S.A. and its subsidiaries, including unaudited financial figures, operational managerial indicators, financial indicators and managerial projections of future performance, in line with Avianca Holdings S.A. 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 S.A.

3 Executive Summary 3Q 2018

4 Load Factor of 84.7% +10 bps vs 3Q million transported passengers for 3Q18 Cargo business unit continues focus on yield improvement Cargo revenues increase of 6.4% New routes: Lima-Orlando 7F per week Salvador-Orlando 4F per Week Guatemala-Orlando 3F per week Salvador-Boston 4F per week Executive Summary US$ 1.2 Billion in Revenues in 3Q 18; +6.1% year on year Strongest 3Q revenue since IPO CASK ex-fuel 1 reached 6.3 US a 5.1% reduction 7.0% EBIT 1 margin for 3Q18 Continuous Yield recovery since 3Q17 Yield increase of 6.0% to 9.4 US AVH returned all wet leased aircraft and recoverd 100% of its domestic and international post strike operation 1. When indicated the figures are adjusted by the following one-time items: ACDAC s operatives expenses; $ -17,854M Skytrax: Best LaTam Airline y Best Economy Class in the region AVH inaugurated its new VIP lounge in the domestic terminal At El Dorado Avianca Holdings S.A. celebrates 5 year listing anniversary on NYSE

5 F i n a n c i a l A n d O p e r a t i o n a l R e s u l t s 3Q 2018

6 Executing on our fleet plan 3Q 2018 Total Fleet Airbus Embraer ATR 72/42 17 Cessna Airbus Boeing Airbus 330F 5 Airbus 300F 5 Boeing 787F Out In Fleet Update Out of fleet: end of Operating Lease one A319+ one A320 (+2) A320neo and Fleet incorporation pace reduction: Targeted deferral of ~50 AC Reassessing status of 6 additional ~50 AC

7 Fifth consecutive quarterly Yield YoY increase; 3Q18 Yield increased 6.0% to 9.4 cents 3Q RPKs Millions 3Q Load Factor +6.8% 11, % +6 bps +71 bps 9,997 10,483 30,800 32, % 83.5% 84.6% 84.7% 82.8% 83.5% 9,441 3Q15 3Q16 3Q17 3Q18 3Q15 3Q16 3Q17 3Q18 3Q ASKs Millions 3Q Yield - US +6.7% 12,389 13, % +6.0% 38, , % ,618 11,973 Quarterly 3Q15 3Q16 3Q17 3Q18 Full Year 3Q15 3Q16 3Q17 3Q18 7

8 Avianca s strongest third quarter revenue ever, reaching nearly USD$ 1.2 billion +6.1% 3Q Revenues US millions 3Q EBITDAR US millions , ,669 3, % % % % % % 604 3Q15 3Q16 3Q17 3Q18 3Q15 3Q16 3Q17 3Q18 3Q CASK and CASK ex Fuel - US 3Q EBIT US millions % % % % % % 3Q15 3Q16 3Q17 3Q18 Quarterly Full Year Non-passanger Revenues EBIT/EBITDAR Margin RASK 3Q15 3Q16 3Q17 3Q18 8

9 Passenger Revenue for the 3Q18 results in the strongest passenger for a 3Q (Adjusted) 3Q Revenues US millions 3Q EBITDAR US millions % 21.6% % % 21.1% % ,054 2,701 3, Q15 3Q16 3Q17 3Q18 3Q15 3Q16 3Q17 3Q18 3Q CASK and CASK ex Fuel - US 3Q EBIT US millions % % 7.9% % % % 3Q15 3Q16 3Q17 3Q18 Quarterly Full Year Non-passanger Revenues EBIT/EBITDAR Margin RASK 3Q15 3Q16 3Q17 3Q18 1. When indicated the figures are adjusted by the following one-time items: ACDAC s operatives expenses $-17,854M 9

10 Avianca reports the strongest Load Factor in company history of 84.7% Region 3Q18 RPK Growth 3Q18 ASK Growth 3Q18 Load Factor Domestic* 3.14% 3.05% 84.9% Intra Home Markets % 1.59% 81.0% Home Markets to North America % 15.11% 86.0% Home Markets to South America % -5.78% 82.8% Central America & Caribbean % 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, Panamá, Costa Rica, Guatemala, Honduras, Nicaragua 10

11 Despite the strike, Avianca continues to consolidate its Leadership Position in the Colombian domestic market Latam 20.7% Others 9.4% Avianca 53.8% VivaCo 13.4% Avianca 9.9% Colombia Domestic 1 Peru Domestic 2 Starup 2.7% 1% Satena 4.7% Others 0.8% Copa 1.6% Easyfly 5.0% Peruvian 12.8% Latam 59.2% Intra-Home Markets Home Markets To North America Home Markets To South America Home Markets To Spain 63.7% 25.5% 28.6% 33.4% Source: Aeronáutica Civil, MIDT 1: Sep-18; 2: Ago-18; *Domestic Market: Colombia, Peru, Ecuador; Local Intra-Markets: Colombia, Peru, Ecuador, Salvador, Costa Rica, Guatemala; 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 11

12 Business Units 3Q 2018

13 Avianca Cargo: financial and operational results Segment Overview Strong performance for the first and for 3Q 2018 Avianca Cargo focused in yield boosting trough fare increase, awaiting for best cargo prices in the 4Q18 season Key Metrics (Cargo and Courier) Revenue (US$MM) (2) ATK (MM) (3) +6.4% % +13.3% ,903 1,836 Network improving thanks to the connections increase to and from Asia and Europe through commercial partnerships and increased widebodies capacity utilization 3Q17 3Q18 RTK (MM) (3) 3Q17 Load Factor 3Q18-9.6% -3.2% ,055 1, % 56.5% 55.4% 56.6% 3Q17 3Q18 3Q17 3Q % Market Share Colombia (3Q18) 4 Market Share Miami (3Q18) % 34.5% 7.4% 9.0% 8.1% 5.4% 13.3% 14.5% 11.4% 12.0% 8.1% 6.2% AVH Atlas Latam UPS Skylease Others Atlas Latam AVH UPS Amerijet American Airlines 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) Others 13

14 LifeMiles: Loyalty Company 3Q18 gross billings increased 17.4% vs 3Q17 Active cobranded credit cards reached 671K, an increase of 7.1% vs. 3Q17 Approximately 8.6 million members, +14.5% increase vs. 3Q commercial partners, +28.9% vs 3Q17 New Commercial Partners & Awards Colombia CAM SAM NAM 14

15 Flight Plan 2018

16 3Q OUTLOOK PAX 3.3% 5.0% 7.0% ASK 6.7% 8.0% 10.0% LF 84.7% 81.0% 83.0% EBIT¹ 7.0% EBIT 5.6% 6.0% 8.0% Source: Company Information 1. When indicated the figures are adjusted by the following one-time items: ACDAC s operatives expenses; $ -17,854

17 In Summary This quarter Avianca, perceives strong demand across its network, despite remaining impact of pilot strike, jet fuel price increase and FX volatility achieving: US$1.2 B in revenues a +6.1% YoY increase, best 3Q revenue since IPO CASK ex-fuel 1 reached 6.3 US - 5.1% year over year Continuous yield 1 recovery of +6.0% vs 3Q17 reaching 9.4 US 7.0% EBIT 1 margin for 3Q18 Avianca reports strongest 3Q Load Factor in company history of 84.7% 1. When indicated the figures are adjusted by the following one-time items: ACDAC s operatives expenses; $-17,854M 17

18 Thank You Contact Information: Investor Relations Office T: (57)