2013 Earnings Presentation

Transcription

1 2013 Earnings Presentation 1

2 2 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 plan. 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 warns 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

3 2013 Highlights Fleet Network Milestones A330F +3 A A ATR 72 & Face-out -8 Total 155 International: Six new international destinations were added in the 4Q 2013: Bogota-Cancun Bogota-Guatemala Bogota-San Juan Bogota-Newark Bogota-Chicago Medellin-Salvador Domestic One new destination was added in 4Q 2013: Bogota-Leticia 52 incremental frequencies Image: Successful launch of Aviana s new brand Transition to a single webpage Operations: Seamless implementation of Single commercial code Effective execution of the fleet interchangeability program Finance: Bond issue in the international market of USD$ 300 M Debut on NYSE through IPO on Nov. 5 th raising USD$ 180 M 3

4 Avianca delivers strong results, consolidating its leading position in its core markets ASKs million Load Factor 6.1% 4.6% 36,545 38, BP 90BP Yield - US Passengers 000 s 6.7% 1.6% 5.1% 6.6% 4

5 Avianca s profitability is driven by a significant margin expansion Revenue OPEX RASK CASK EBITDAR EBIT Margin 15.8% 19.7% 15.4% 17.8% Margin 7.8% 8.9% 6.6% 8.4% +390bp +240bp +110bp +180bp 5

6 * Domestic Market: Colombia, Peru, Ecuador 1 Intra Home markets: Colombia, Peru, Ecuador, Salvador, Costa Rica, Guatemala; 2 From our Home Market to North America including Mexico 3 From Colombia,Peru, Ecuador and Costa Rica to Bolivia, Chile,Argentina, Brazil,Uruaguay and Venezeula, 4 Beñlize, Cuba Curazao, Republica Dominciana,Panama, Costa Rica,Guatemala, Honduras, Nicaragua 6 Avianca s strong capacity growth is driven by the expansion in its key markets Region 4Q ASK Growth 4Q RPK Growth 4Q Load Factor Domestic* +5.22% + 8.2% % 8.9% 79.6% 81.0% Intra Home Markets % % 76.7% Home Markets to North America % + 4.1% 81.0% Home Markets to South America 3-2.9% + 1.3% 83.8% Central America & Caribbean % + 4.7% 72.7% Home Markets to Europe + 2.1% % 84.2% Total ASK Growth 4.6% RPK Growth 6.3% Load Factor 80.7% LF increased by BP vs. 4Q 2012

7 Avianca continues to be market leader in Latin American markets Market share in selected Avianca markets Colombia domestic 1 Peru domestic % Other 3.9% 14.1% % % 1 Jan-Dec, bp vs 4Q bp vs 4Q 2012 Intra-home markets Home Home markets markets to N. America to N. America 3 Home Home markets markets to S. America to S. America 3 Home markets to Spain 1 67% 1 28% 1 41% 1 31% * Domestic Market: Colombia, Peru, Ecuador 1 Intra Home markets: Colombia, Peru, Ecuador, Salvador, Costa Rica, Guatemala; 2 From our Home Market to North America including Mexico 3 From Colombia,Peru, Ecuador and Costa Rica to Bolivia, Chile,Argentina, Brazil,Uruaguay and Venezeula, 4 Beñlize, Cuba Curazao, Republica Dominciana,Panama, Costa Rica,Guatemala, Honduras, Nicaragua Source: Aeronautica Civil, MIDT

8 Despite challenging market conditions Avianca s cargo unit performed well in 2013 Revenue ATKs RTKs LF 400bp 200bp 8

9 4Q-2013 Lifemiles Highlights 4Q 2013 sales to third parties grew by +29.3% vs 4Q K active cobranded credit cards, 29.3% increase in relation to 4Q M 5.4M members, members, 10.1% 10.1% increase increase in relation to in relation to 4Q 4Q % Earn/Burn ratio, increasing 7.3% year-over-year 9

10 Outlook 2014 Guidance 2013 Results 2013 Outlook 2014 PAX (9%-10%) 8% (8%-9%) ASK (7%-8%) 6% (7%-8%) LF (79%-80%) 80.5% (79%-81%) EBIT % (7.0%-8.0%) 8.4% (8.75%-9.25%) 10

11 In Summary During the fourth quarter the company has continued with its leadership and consolidation strategy in Latin America The company continues to expand its passenger network, while optimizing its fleet utilization as we were able to implement the fleet interchangeability program The cost reduction initiatives implemented so far have resulted into relevant margin expansion: Operating profit increased by USD$ 27.7 million reaching a total of USD$114.7 million. Operating profit for FY 2013 totaled USD$ million Operating margin increased by 318bp reaching 9.5% in the fourth quarter of Operating margin for 2013 came in at 8.4% EBITDAR Margin of 20.4% in the fourth quarter of 2013 (+460 bp) over the same period of 2012 respectively. For 2013 EBITDAR margin reached 18.0% 11

12 Thank You Investor Relations Contact Information: Investor Relation Officer Andres Ruiz Tel : (57) Ext