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

Transcription

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

2 2012 is the transition year business transformation Transition cost incur in 2012 due to the initiatives taken 2011 Measures taken to improve profitability Shape & Size Topline Network & Fleet Costs Maintenance Etihad Airways Partnership Oneworld New revenue management system and passenger service system Introduction of fare classes Organizational structure Guest experience Initiatives with short term negative impacts in H Developing new Hubs Enhancing the long-haul product Lounge development Frequency reduction Route cancellation Investment in staff training Migration process in booking systems Temporally higher FTE needs Selected improvements concluded already in H1/12 R/ASK development Decrease C/ASK ex fuel Seat load factor increase Aircraft utilization Effects Transition process comes along with investments and cost at first hand First improvements can be seen in H1/12 Full positive impact of taken initiatives is projected for 2013 ff Air Berlin PLC report 2

3 Performance improvement H Total revenue development Effects +8.4% Transition process comes along with investments and cost at first hand However First improvements first can be improvements seen in H1/12 can be seen in H1/12 Full positive impact of taken initiatives is projected for 2013 ff Revenue/Pax [EUR] Operational KPIs +3.6% Revenue/ASK [EUR ct] +6.6% Revenue/RPK [EUR ct] -2.5% +5% % * Cost per ASK on EBIT level Air Berlin PLC report C/ASK * excl fuel [EUR ct] a/c utilization Fuel burn/100 ASK [ltr.] 3

4 Operational development Topline Q Guests, capacity, SLF & yield development Revenue / ASK [EUR ct.] % % % 6.87 Guests [m] Capacity [m] Revenue/ASK +7.5% +0.46%p On the operational side our efficiency programme shows first positive developments: In line with the reduced more slowly in relation to the available seats offered compared to previous year, hence seat load factor improved overall SLF [%] Yield [EUR] Yield improved strongly by 7.5%, also driven by structural effects Air Berlin PLC report 4

5 Cost per ASK development Q Cost 1) per ASK including fuel [EUR ct.] Cost 1) per ASK excluding fuel [EUR ct.] +1.9% % % 31.4% Airport & handling charges 20.0% 9.1% 13.5% 25.4% 20.7% 8.4% 14.3% 25.2% Operating leases & depreciation Navigation Personnel Others The effects of the implementation of the Shape & Size programme can be seen in the development of cost 1) Cost on EBIT level Air Berlin PLC report 5

6 Development of Expenses [EUR m] Q Direct operating expenses Most of the direct operating cost decreased due to volume effects on Shape & Size initiatives. After Shape & Size the net increase in fuel amounts to EUR 30 m Other operating expenses Main driver for increase in other operating cost is the growth in distribution cost following the switch to Amadeus Personnel expenses Higher than last year driven by FTE increase +1.8% % Fuel Airport & handling charges Navigation Aviation tax Catering Other MRO Distribution Advertising Commissions Insurance Other % Air Berlin PLC report 6

7 Cost of aircraft ownership Q Fleet development [number of aircraft] Net cost of leases & depreciation [EUR m] % % Effective dollar rate [EUR/USD] % A320 family B737 family Q400 A330 family E190 Air Berlin PLC report 7

8 Contribution to full year EBIT improvement of more than EUR 50 m in the second quarter of 2012 [EUR m] Q Shape & Size performance Q2 Q2 > 19.5 > Cost initiatives MRO 4 Q2 6 > 1.4 Process improvement Yield & Rev. mgmt Profitability Improvement EUR 2 Network reduction & productivity Alliances 3 1 Q2 Q2 > 14.3 > 5.0 SHAPE & SIZE profitability improvement in > EUR 50 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 Q2 > Several cost measures EBIT values without effects from cost avoidance Air Berlin PLC report 8

9 EBIT improvement now > EUR 230 m in 2012 with increasing impact in the course of the year [EUR m] Share of Total 26% 30% >60 >70 >230 >50 >50 Q1 Q2 Q3 Q Implementation Realization Air Berlin PLC report 9

10 Financial Performance [EUR m] Q Revenue EBITDAR EBIT Net result Despite reduction in capacity, increase in revenue is achieved from higher seat load factor and yield Revenue growth and cost initiatives helped to offset fuel cost and keep EBITDAR on last year s level Slightly better cost of aircraft ownership contributed to EBIT Due to lower deferred tax benefits net loss increased +1.7% 1, , % % -50.9% Air Berlin PLC report 10

11 Financial result and income tax development [EUR m] Q Breakdown of financial result Net financial result Currency & derivatives effects Total income tax benefit -27% -2% % Air Berlin PLC report 11

12 Balance sheet structure [EUR m] B/S as of Dec 31, 2011 B/S as of Jun 30, ,264 2,528 Fixed assets 66% 11% Equity Fixed assets 55% 4% Equity Other current assets 24% 89% Debt Other current assets 33% 96% Debt Liquid assets 10% Liquid assets 12% Based on changes in market value from end of June to end of July additional EUR 60 m were accounted for in the adjusted view on equity EUR 320 m Balance negatively impacted by changes in market valuation Target is to achieve a better equity ratio at the end of the year 2012 Net debt target is around EUR 500 m Air Berlin PLC report 12

13 Dollar hedging 2012 Dollar hedging profile and FX rate development, 2012 vs Hedging profile [%] FX rate development * [USD/EUR] Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec jan Feb Mar Apr May Jun Hedging Rate 2012 (as of 07/30/2012) Hedging Rate 2011 (as of 08/12/2011) Current Hedge rate Market / Forward rate Hedge rate 2011/12 * as of 30 Jul 2012 / 12 Aug 2011 Air Berlin PLC I report 13

14 Fuel hedging 2012 Fuel hedging profile and fuel price development, 2012 vs Hedging profile [%] Price 1) development * [USD/t] ,020 1, Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 540 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Hedging Rate 2012 (as of 07/30/2012) Hedging Rate 2011 (as of 08/12/2011) Current Hedge price Market / Forward price Hedge price 2011/12 * as of 30 Jul 2012 / 12 Aug 2011 // 1) excl. differentials Air Berlin PLC I report 14

15 Summary and key highlights H Seat load factor Yield per ASK Total revenue Cost 1) per ASK +8.7% %p % % 7.32 SLF [%] Yield [EUR] R/ASK [EUR ct.] C/ASK incl fuel [EUR ct] Revenue [EUR m] EBITDAR [EUR m] EBIT [EUR m] Net loss [EUR m] +2.7% 1, , % % -2.9% ) Cost on EBIT level H1/11 H1/12 Air Berlin PLC I report 15

16 Strong earning improvement envisaged Operational performance Capacity Moderate increase in long haul business Capacity utilization and income Increasing load factor through network reduction, improved sales platform and partnerships Result Revenue Growth in revenue through yield and SLF growth expected Expenses Cost per ASK excl. fuel will be kept stable; structural cost increases will be offset through Shape & Size Result Improvement in profitability Balance sheet Target 2012 A L Balance sheet Equity and liquidity stabilized through Etihad investment Equity ratio to be better than previous year at the end of 2012 Deleveraging is the key objective for 2012; initiatives are on the way Net debt target to be around EUR 500 m by the end of 2012 Strong earnings improvement targeted for 2012 Air Berlin PLC report 16

17 B. Back up H view Air Berlin PLC report 17

18 Financial Performance [EUR m] H Revenue EBITDAR EBIT Net result Good revenue performance especially in Q1 delivered good H1 rolling increase despite capacity reduction Revenue increase and cost control helped to offset fuel prices increase (EUR 70 m) and still achieve higher EBITDAR EBIT increase in line with EBITDAR development Higher non cash financial result increased net loss +2.7% 1, ,948.1 H1/11 H1/ % % -2.9% Air Berlin PLC report 18

19 Operational development H Guests, Capacity, SLF & yield development Total revenue per ASK [EUR ct.] Cost 1) per ASK incl. fuel [EUR ct.] % % % % 7.32 Guests [m] Capacity [m] R/ASK C/ASK incl fuel +8.7% H1/11 H1/12 Cost 1) per ASK excl. fuel [EUR ct.] +1.93%p Airport & handling charges % -2.5% % Operating leases & depreciation Navigation Personnel 20.5% 8.5% 14.0% 21.0% 7.9% 15.3% SLF [%] Yield [EUR] Other 26.2% 25.4% 1) Cost on EBIT level Air Berlin PLC report H1/11 H1/12 19

20 Development of Expenses [EUR m] Direct operating expenses Strong increase in fuel, whilst other direct operating cost decreased in line with capacity reduction +2.4% Other operating expenses Increase in distribution cost reflects move to Amadeus and higher proportion of sales via indirect channels Personnel expenses Higher than last year driven by FTE increase 1, , Fuel +1.5% Airport & handling charges Navigation Aviation tax Catering Other MRO +5.1% Distribution Advertising Commissions Insurance Other H1/11 H1/12 H1/11 H1/12 H1/11 H1/12 Air Berlin PLC report 20

21 Cost of aircraft ownership H Fleet development [number of aircraft] Net cost of leases & depreciation [EUR m] % % Effective dollar rate [EUR/USD] % A320 family B737 family Q400 H1/11 H1/12 H1/11 H1/12 A330 family E190 Air Berlin PLC report 21

22 Dollar and fuel spot price development [USD/EUR] [$/mt] ,120 1,100 1,080 1,060 1,040 1,020 1, /26 4/9 4/23 5/7 5/21 6/4 6/18 7/2 7/16 7/30 8/13 0 3/26 4/9 4/23 5/7 5/21 6/4 6/18 7/2 7/16 7/30 8/13 Q2 Q2 Dollar spot price 2012 Fuel spot price 2012 CIF NWE (Spot) Air Berlin PLC I report 22