Air Berlin PLC Berlin, 15 November 2012 Analysts and Investors conference call

Transcription

1 Air Berlin PLC Berlin, 15 November 2012 Analysts and Investors conference call

2 Management summary Key highlights of the third quarter 2012 Positive development of key performance indicators and Shape & Size airberlin improved operating and net result EBIT in the third quarter improved by 4.5% from EUR 97 m in Q3/11 to EUR 101 m in Profit for the period stood at EUR 66.6 m in the reporting quarter after a profit of EUR 30.2 million in the prior year s quarter Positive codeshare development Continuously positive Shape & Size achievements Successful performance in Q mainly due to positive results from the initiatives of Shape & Size, which accounted for over EUR 170 m in the first nine months Severe increasing fuel price of 11% compared to Q3/11 and 12% over the last nine months compared to 9M/11, could be compensated by cost reduction measures out of Shape & Size Positive effects from codeshare agreements with our strategic partner Etihad Airways and also through the cooperation within the oneworld [EUR m] >50 >70 >170 Similar success is expected with the strategic partnership between Air France-KLM Group >50 Q1 Q2 Q3 9M Air Berlin PLC report 2

3 Management summary cont`d Key messages % Q1/12 Q2/12 Steady increase of EBIT across the quarters Q1/11 Q2/11 Q3/11 Net result more than doubled compared to Q % Monetizing of frequent flyer program topbonus in 2012 to strengthen earnings and balance sheet ratios Launch of turnaround program Turbine 2013 to improve profitability for 2013 Air Berlin PLC report 3

4 A. Q results Air Berlin PLC report 4

5 Financial Performance [EUR m] Q & 9M 2012 Revenue EBITDAR EBIT Net result Despite reduction in capacity, increase in revenue is achieved from slightly higher seat load factor and increase in yield +1.4% Revenue growth and cost initiatives help to improve EBITDAR performance despite higher fuel cost of EUR 35 m in Q3 and EUR 99 m in the first 9 months Due to higher leasing cost, EBIT proportionally does not develop in line with EBITDAR Net result more than doubled compared to the previous year quarter and increases by 23.6% for the first 9 months 1, , % % % 66.6 Q3/ % 3, , % % +23.6% 9M/11 9M/ Air Berlin PLC report 5

6 Topline development Q & 9M 2012 Revenue 1) per ASK [EUR ct.] Revenue 1) per Guest [EUR] Yield [EUR] +2.7% % % Q3/11 Q3/11 Q3/ % % % M/11 9M/12 9M/11 9M/12 9M/11 9M/12 1) Total revenue Air Berlin PLC report 6

7 Operational development Q & 9M 2012 Guests [m] Capacity [m] SLF [%] Q3/ % -5.4% +0.40%p M/ % -6.8% +1.39%p 9M/ ) Total revenue Air Berlin PLC report 7

8 Cost per ASK development Q & 9M 2012 Cost 1) per ASK including fuel [EUR ct.] Cost 1) per ASK excluding fuel [EUR ct.] -0.8% +2.5% % 33.8% 18.0% 8.7% 12.7% 19.0% 8.5% 13.5% 26.1% 25.2% Q3/ % 7.22 Q3/ % 19.6% 8.6% 13.5% -1.7% % 20.3% 8.1% 14.6% Airport & handling charges Operating leases & depreciation Navigation Personnel Other 26.2% 25.3% 9M/11 9M/12 9M/11 9M/12 1) Cost on EBIT level Air Berlin PLC report 8

9 Development of Expenses [EUR m] Direct operating expenses Strong increase in fuel, whilst other direct operating cost decreased in line with capacity reduction +1.0% % -10% -11% -4% % % Q3/ % , , % % % % % % 9M/11 9M/12 Other Catering Aviation tax Navigation charges Airport & handling charges Fuel Total DOC Air Berlin PLC report 9

10 Development of Expenses [EUR m] Other operating expenses Main driver for increase in other operating cost in is the growth in distribution cost following the switch to Amadeus -1% % % % +17% +18% -29% % % Q3/ % -1% % % % % % % % % M/11 9M/12 Other Insurance Commissions Crew travel Premises & vehicles Advertising Distribution IT MRO Total DOC Air Berlin PLC report 10

11 Development of Expenses [EUR m] Q Personnel expenses Net cost of leases & depreciation [EUR m] Higher than last year driven by FTE increase +6% % % % Q3/ Q3/11 Q3/ % +4.9% +2% % 9M/11 9M/ M/11 9M/12 9M/11 9M/12 Depreciation Leases Cost of a/c ownership Air Berlin PLC report 11

12 airberlin fleet as of September 30 th 2011/2012 Fleet development [number of aircraft] Q3/ % Q400 E190 B737 family A330 family A320 family Air Berlin PLC report 12

13 Financial result and income tax development [EUR m] Q Breakdown of financial result Net interest result Currency & derivatives effects Total income tax expense +167% % -34% Q3/11 Q3/11 Q3/11 Air Berlin PLC report 13

14 Balance sheet structure [EUR m] B/S as of Dec 31, 2011 B/S as of Sep 30, ,264 2,385 Fixed assets 66% 11% Equity Fixed assets 57% 8% Equity 89% Debt 92% Debt Other current assets 24% Other current assets 34% Liquid assets 10% Liquid assets 9% Net debt: 813 Net debt: 853 Air Berlin PLC report 14

15 EBIT improvement now > EUR 230 m in 2012 with increasing impact in the course of the year [EUR m] Share of Total 30% 26% >60 >230 >70 >50 >50 Q1 Q2 Q3 Q Implementation Realization Air Berlin PLC report 15

16 Contribution to full year EBIT improvement of more than EUR 70 m in the third quarter of 2012 [EUR m] Q Shape & Size performance Q3 > 17.0 Q3 > Cost initiatives MRO 4 Q3 6 > 1.6 Process improvement Yield & Rev. mgmt Profitability Improvement EUR 2 Network reduction & productivity Alliances 3 1 Q3 Q3 > 22.2 > 7.9 SHAPE & SIZE profitability improvement in > EUR 70 m 1 Enhanced yield development 2 Codeshare effects from partnership with Etihad Airways and oneworld 3 Aircraft sourcing and improvement of network productivity 4 Reduction of maintenance cost Q3 > Several cost measures EBIT values without effects from cost avoidance Air Berlin PLC report 16

17 Turnaround program Turbine is set to achieve our goal for 2013 to reach a positive net result The efficiency program Shape & Size has accounted to operational improvement with more than EUR 170 m and could offset rising fuel prices Though the constantly worsening economic environment as well as other external factors such as aviation tax, fuel price, BER opening delays and changing consumer behavior, claims for the implementation of turnaround Shape & Size is a continuously moving forward successful efficiency program, but it cannot compensate for all negative influences which the airline will be facing in 2013 Turbine challenges status quo business assumptions and adapt business model to lean and smart principles SHAPE & SIZE Internal continuous improvement; well embedded in the organization 2 TURBINE Structural changes to refocus business and operating model Air Berlin PLC report 17

18 airberlin requires structural changes towards a business model with less fragmentation, more efficient operations and a lower cost base Turbine for long-term sustainability TURBINE 2013 Process & levers Structural change to regain competitiveness Challenge status quo business assumptions and adapt business model to lean and smart principles Significantly lift operating performance (RASK / CASK) Develop Master Turnaround Plan by the end of 2012 Building upon airberlin`s core brand attributes (value for money, innovativeness, service with heart) Turbine sharpens our customer offering, especially for high-value customers Implement changes throughout 2013 The program is addressing all elements of the operation, e.g.: Where airberlin flies Number and types of aircraft in the fleet How airberlin routes aircraft and crew around its network Ground processes supporting flights Organizational setup and responsibilities IT and systems supporting the head office Commercial steering model (scheduled / tour operator) Turbine`s major objective is to reduce costs and apply efficient operational principles while maintaining core brand attributes Air Berlin PLC report 18

19 B. Development of topbonus Air Berlin PLC report 19

20 topbonus facts and figures topbonus is the highly attractive Frequent Flyer Program (FFP) of airberlin 1 >3 million members with steady growth and significant development potential 2 Germany's second largest FFP 3 Strong and growing partner network with more than 120 partners 4 Expansion of earn and burn partners and categories envisaged 5 Over 1,000 new members per day in 2012 Air Berlin PLC report 20

21 topbonus partner network topbonus has a reputable and significant partner network with more than 120 partners Earn + burn Selected earn partners Air travel Hotels Car rental Finance & insurance Co-branded credit cards (2) (2) oneworld alliance (2) (2) (2) Newspapers Other partners (2) (2) (1) (2) (1) (1) (2) (2) (2) (1) Expected new oneworld alliance members (2) Denotes coalition partner Air Berlin PLC report 21

22 topbonus member base topbonus has a growing and attractive member base Number of members (in Mio.) Status levels of members (1) Member base expected to grow to 3.1m members by year end 2012 Differentiation of members in standard, silver, gold and platinum Strong historical growth rates with a CAGR of 14% from 2010 to 2012 Status levels attractive for members Higher revenue generated with premium members airberlin intends to monetize topbonus (1) 2012 data based on extrapolation from figures related to the period between 1 January and 31 August Air Berlin PLC report 22

23 Transaction rationale Transaction benefits for airberlin and topbonus Fully consistent with strategy of enhancing attractiveness of topbonus Monetization of topbonus Creating visibility of value contributed by topbonus Strengthening of equity and reduction of financial leverage Ability to participate in future development of topbonus Highly compelling strategic logic evidences by precedent transactions Separation as enabling event for topbonus to develop its full potential Air Berlin PLC report 23

24 C. Back up Air Berlin PLC report 24

25 Dollar hedging 2012/13 Dollar hedging profile and FX rate development, 2012/13 vs. 2011/12 Hedging profile [%] FX rate development * [USD/EUR] Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2011/ / / /13 Hedging rate 2012 (as of 09/28/2012) Hedging rate 2011 (as of 09/30/2011) Current Hedge rate Market / Forward rate Hedge rate 2011 * as of 28 Sep 2012 / 30 Sep 2011 Air Berlin PLC report 25

26 Fuel hedging 2012/13 Fuel hedging profile and fuel price development, 2012/13 vs. 2011/12 Hedging profile [%] Price 1) development * [USD/t] ,080 1,060 1,040 1,020 1, Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2011/ / / /13 Hedging rate 2012 (as of 09/28/2012) Hedging rate 2011 (as of 09/30/2011) Current Hedge price Market / Forward price Hedge price 2011 * as of 28 Aug 2012 / 30 Sep 2011 // 1) excl. differentials Air Berlin PLC report 26