Results 3Q17. November 8, 2017 #NOVAGOL

Transcription

1 Results 3Q17 November 8, 2017 #NOVAGOL

2 3Q17 Highlights Indicators 3Q17 Var. x 3Q16 ASK (BN) % Traffic (000) 8, % RPK (BN) % Load Factor 80.2% +0.4 p.p. Yield (R$ cents) % Pax Revenue (R$ MM) 2, % RASK (R$ cents) % CASK (R$ cents) % 1. Excluding non-recurring results 2. Excludes perpetual bonds (R$ million) Net operating revenues: R$2.7 billion (+13.2% vs. 3Q16) Operating result of R$327 million and EBIT margin of 12.0% Net income: R$328 million and margin of 12.1% EPS: R$0.94/share US$1.49/ADS Aircraft utilization: 12.3 block hours/day (+7.4% vs. 3Q16) Net Debt 2 /LTM EBITDA: 3.4x 2

3 Capacity and Network Rationalization Number of Operating Aircraft (average) RPK (MM) 18.5% % ASK (MM) Q16 2Q17 3Q % 12.0 Flights/Day % % 4.5% 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 3

4 The Most Competitive Airline in Brazil 1. Brazil s lowest cost for 16 years: - Single fleet of 120 B-737 (120 MAX 8 orders) - MAX 8 is ~15% more fuel efficient (x 800 NG) - Lean and productive operations (best utilization) - Lowest fixed costs - Best-in-class maintenance 3. Brazil s most profitable airline: - 9.3% operating (EBIT) margin (9M17) - 3.4x Net debt 2 /LTM EBITDA (3Q17) 21% lower CASK 1 than closest airline - Highest productivity: 288MM ASK/aircraft (9M17) 9M17 Productivity & efficiency 1,558 PAX/employee; 2,257 ASK/employee 2. Brazil s best customer experience: - Most on-time service - Most comfort and leg room - Most convenient flight network for businesses - Wi-Fi & on-board entertainment - #1 loyalty program 4. Brazil s market leader: - Leader in main airports (66% total domestic traffic) - Strong brand - Continuous innovation: #NOVAGOL - 36% market share (September/17) (1) Information published by companies for 2016 (stage-length adjusted). (2) Excludes perpetual bonds (R$ million). 4

5 Best Customer Experience Most on-time departures (95.4%) and best flight completion (98.4%) Best flight network Innovation (#NOVAGOL): selfie check-in Premium lounge Fleet with: GOL Online: internet access and complete entertainment platform Ecological leather seats: more comfortable and modern 5

6 2017 Full Year Guidance Revision Indicator 2017 Previous 9M17 (actual) 2017 Revised Average operating fleet Variation in capacity vs (ASK) 0% to -2% -0.1% +/- 0.5% Variation in capacity vs (Seats) -3% to -5% -5.7% +/- 2% Variation in volume of departures (vs. 2016) -3% to -5% -6.0% + /- 4% Average load factor 77% to 79% 79% +/- 79% Net Revenues (R$ billion) +/- R$10 R$7.6 +/- R$10.3 CASK-ex fuel (R$ cents) +/ / Aircraft Rent (R$ billion) +/- R$1 R$0.7 +/- R$1 EBITDA margin 12% to 14% 13% +/- 14% Operating (EBIT) margin 7% to 9% 8% +/- 9% Fully-diluted shares outstanding (million) Earning per share fully diluted 2 R$0.38 to R$0.52 R$0.04 R$0.80 to R$0.90 Fully-diluted ADS outstanding (million) Earning per ADS fully diluted 2 US$0.57 to US$0.78 US$0.06 US$1.25 to US$1.40 Net Debt / LTM EBITDA +/- 4.2x 3.4x 3 +/- 3.4x (1) Fleet of 120 aircraft at the end of September 2017 (four of them are sub-leased to another airline). (2) After participation of minority interest in Smiles S.A. (3) Net Debt of R$4,492 MM, excluding perpetual bonds, and LTM EBITDA of R$1,268MM (as of September 30, 2017) Downside risks: Q4 fares, external shocks, or capacity growth 6

7 Solid September Quarter 17.0% recurring EBITDA margin and 12.0% recurring operating margin, up 3.7 p.p. and 2.9 p.p., respectively, above 3Q16 margins. Fifth consecutive quarter reporting positive operating profit Reduction in net debt 1 of R$523 million (R$4.3 billion in 3Q17) vs. 2Q17 September Quarter 2017 Recurring operating (EBIT) margin 12.0% (up 2.9 p.p.) Ancillary revenue (cargo and other) and change q-o-q 11.9% of Total Rev. (down 0.7 p.p.) Passenger unit revenue (PRASK) change quarter over quarter Up 9.2% Fuel price (change q-o-q ) Average exchange rate to US$ R$1.99 (up 1.7%) R$3.16 CASK ex-fuel (excluding non-recurring expenses) change q-o-q Up 7.1% GOL System capacity (ASK) change quarter over quarter Up 4.5% GOL System capacity (Seats) change quarter over quarter Up 2.4% 1. Excludes perpetual bonds (R$ million) 7

8 Load Factor and Forward Bookings Chg. (pp) Jan 83% 82% -1 Feb 76% 76% 0 Mar 74% 73% -1 Apr 79% 76% -3 May* 76% 75% -1 Jun 76% 75% -1 Jul 83% 83% 0 Aug 76% 78% +2 Sep 76% 78% +2 Oct 75% 76% +1 Nov 73% 78% +5 Dec 77% 79% Chg. (pp) Jan 82% 83% +1 Feb 76% 78% +2 Mar 73% 76% +3 Apr 76% 79% +3 May 75% 77% +2 Jun 75% 78% +3 Jul 83% 82% -1 Aug 78% 78% 0 Sep 78% 80% +2 Oct 76% +4 Nov 78% +1 Dec 79% +2 (*) New network rolled out in May

9 Profitability (EBITDA) 3Q16 vs 3Q17 RASK (R$ cents) % CASK 1 (R$ cents) +5.0% % EBITDA 1 (R$ million) % Fuel CASK % 3Q16 3Q17 EBITDA Margin 1 CASK Ex-fuel % 3Q16 3Q17 3Q16 3Q17 3Q16 3Q17 (1) Recurring 9

10 Net Financial Results Financial Income (R$ MM) Q16 3Q17 Financial Expense (R$ MM) Net Financial Results: 3Q17: income of R$29 MM 3Q16: expense of R$101 MM Reduction of short and long-term debt 33.4¹ 3Q16 3Q17 (1) Exchange and monetary variations 10

11 Net Income Composition (R$ MM) Excluding minority interest (0.9) Net revenues +317 Fuel costs (31) +37 Aircraft rent Maintenance materials and repairs +14 (64) Other operating expenses Net financial results F/X Gains (ex-fx) +278 (148) Deferred income tax +202 Minority interest (94) Q16 Net income Net margin: -0.04% 3Q17 Net income Net margin: 12.1% 3Q17 EPS: R$0.94/share US$1.49/ADS 11

12 Operating Cash Flow Generation 25% Operating Cash Flow Margin 20% 15% 10% 5% 0% -5% year-to-date quarter 21.7% 14.4% 0.5% -0.2% 9M16 9M17 3Q16 3Q17 in R$ million 9M16 9M17 3Q16 3Q17 Operating cash flow ,090.5 (5.2) Investing cash flow (454.8) (52.8) (201.0) Financing cash flow 2 (1,577.9) (440.1) (241.1) (40.0) Net increase (decrease) in cash and cash equivalents (1,150.7) (299.1) Total liquidity 1 1, ,118.1¹ 1, ,118.1¹ (1) Consolidated cash, cash equivalents and account receivables beginning in (2) Includes foreign exchange variation on foreign subsidiaries. 12

13 Liquidity and Leverage Liquidity 1 (R$ MM) Total Liquidity + Deposits2 Liquidity 2 / LTM Net Revenues 26.3% 26.9% 25.9% 2,589 2,574 2,759 3Q16 2Q17 3Q17 Short Term Debt (R$ MM) Short Term Debt Liquidity / Short Term Debt 3.6x 2.5x 2.4x Interest Coverage (R$ MM) LTM EBITDAR LTM EBITDAR / Interest Exp.+Rent LTM EBITDA / Interest Exp. 1.5x 1.7x 1.0x 0.9x 1.2x 1.3x 2,099 2,028 2,102 3Q16 2Q17 3Q17 Balance Sheet Net Debt (ex-perp) Net Debt (Ex-Perp) / LTM EBITDA 5.6x 4.2x 3.4x ,773 4,868 4,345 3Q16 2Q17 3Q17 3Q16 2Q17 3Q17 (1) Cash, equivalents, short term investments, restricted cash and receivables (2) Includes operational deposits (maintenance / lease deposits) 13

14 Coverage and Liquidity Historical 3Q16 4Q16 1Q17 2Q17 3Q17 Balance Sheet Items (R$ MM) Total Debt 6,346 6,379 6,091 6,217 5,921 Off Balance Debt (Minimum Payment Operating Leases) 6,454 6,247 5,791 5,579 5,133 Capitalized Leases (7 x Rent) 8,776 6,979 6,402 6,090 5,831 Adjusted Total Debt 1 15,122 13,358 12,493 12,307 11,752 Adjusted Total Debt 1 excluding Perpetuals 14,697 12,929 12,073 11,869 11,332 Total Liquidity 2 1,829 1,922 1,517 1,771 2,118 Total Liquidity 2 + Operational Deposits 3 2,589 2,679 2,261 2,574 2,759 Net Debt Ex-perp 4 4,773 4,789 4,976 4,868 4,345 Adjusted Net Debt ex-perp 1,4 13,549 11,767 11,379 10,958 10,176 Leverage Adjusted Total Debt 1 / Capitalization (Market Value) 87% 89% 81% 82% 72% Total Debt / Capitalization (Market Value) 75% 80% 68% 70% 56% Net Debt 4 / LTM EBITDA 6.1x 4.6x 5.7x 4.6x 3.8x Net Debt excl-perp 4 / LTM EBITDA 5.6x 4.2x 5.2x 4.2x 3.4x Coverage LTM EBITDAR / Interest Expense + Rent 1.0x 1.2x 1.1x 1.2x 1.3x LTM EBITDA / Interest Expense 0.9x 1.5x 1.2x 1.5x 1.7x Liquidity Liquidity 2 / LTM Net Revenue 19% 19% 15% 18% 21% Liquidity 2 + Deposits 3 / LTM Net Revenue 26% 27% 23% 26% 27% (1) Adjusted total and net debt includes Capitalized Leases (7x Rent) (2) Liquidity includes cash, equivalents, short term investments, restricted cash and receivables (3) Including Maintenance and Lease Deposits (4) Includes cash, equivalents, short term investments and restricted cash 14

15 GOL Operating Fleet Plan Aircraft Type Configuration Capacity: 138 pax Range: 5,570 km Type: Capacity: 177 pax 1 Range: 5,440 km Type: Capacity: 186 pax Range: 6,510 km Type: MAX TOTAL (1) Reconfiguration in the first half 2018 to increase the number of seats by 5% to 186, maintaining Gol+Conforto spaces. (2) Sale lease-back announced on Sep 5 th 2017 will increase the number of Boeing 737 MAX 8 aircraft planned for 2018 from five to six, without changing overall fleet plan of 121 aircraft at year-end 2018 (redelivery of or to be defined). 15

16 Appendices 3Q17 November 8, 2017

17 GOL s Outstanding Shares and ADSs Shareholder Common Shares ON (%) Preferred Shares PN (%) Total %* Volluto 5,035,036, % 68,915, % 5,103,951, % Delta Airlines ,926, % 32,926, % Other/Free Float % 101,739, % 101,739, % Treasury Shares , % 278, % Total 5,035,037, % 203,858, % 5,238,895, % (*) The calculation considers the ratio of 35 common shares for each preferred share. Shareholding composition as of October 31, 2017 To calculate EPS, divide net income by the weighted average shares outstanding (ON/35+PN): million 1 ADS represents five (5) preferred shares (new ratio as of April 27, 2017). To calculate Earnings per ADS, divide net income by million ADS. 17

18 Low Unit Costs 2Q17 CASK (USD cents, stage-length adjusted) LCC Benchmarks Latin American Companies Fuel Costs Variable Costs Fixed Costs Source: Financial information published by companies (IR websites, SEC and CVM), converted by the exchange rate of each period. 18

19 2Q17 KPIs Productivity 35.0% 25.0% 20.8% 15.0% 5.0% % 10.9% 13.0% 3,9% 14.1% 4.6% 1.0% -2.0% ASK (MM) / Average Number of Operating Aircraft & Net Margin (%) -5.0% -15.0% -25.0% % % -45.0% LCC Benchmarks Latin American Companies 19

20 Disclaimer This presentation may contain certain statements that express GOL Linhas Aéreas Inteligentes S.A. ( GOL ) management s expectations, beliefs and assumptions about future events or results. Such statements are not historical fact, being based on currently available competitive, financial and economic data, and on current projections about the industries in which GOL operates. The verbs anticipate, believe, estimate, expect, forecast, plan, predict, project, target and other similar verbs are intended to identify these forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from those projected in this presentation and do not guarantee any future GOL performance. The factors that might affect performance include, but are not limited to: (I) market acceptance of GOL services; (ii) volatility related to the Brazilian economy and financial and securities markets, and the highly competitive industries GOL operates in; (iii) changes in domestic and foreign legislation and taxation, and government policies related to the transportation markets; (iv) increasing competition from new entrants to the Brazilian markets; (v) ability to keep up with rapid changes in technological environment; (vi) ability to maintain an ongoing process for introducing competitive new products and services, while maintaining the competitiveness of existing ones; (vii) ability to attract customers in domestic and foreign jurisdictions. Other factors that could materially affect results can be found in GOL s annual report on Form 20-F as filed with the U.S. Securities and Exchange Commission, particularly under Risk Factors session. All forward-looking statements in this presentation are based on information and data available as of the date they were made, and GOL undertakes no obligation to update them in light of new information or future development. 20

21 Investor Relations