2Q 2014 Earnings Presentation

Transcription

1 2Q 2014 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 Executive Summary 2Q 2014 Avianca Holdings Reports Operating Profit of $49.8 Million for the second quarter of 2014 Operating revenues amounted to $1.14 billion (+3.6% Q vs Q), while operating income (EBIT), amounted to $49.8 million, with a margin of 4.4% (+116 bp vs. 2Q 2013) Adjusted net income* came in $19.5 million, with a margin of 1.7% (+150 bps vs. 2Q 2013) Capacity measured in ASK s increased 4.4%, while passenger traffic measured in RPK s rose 4.3%. As a result, the load factor remained stable at 78.2% Cargo revenues increased by 14.1% while capacity measured in ATKs grew by 20%. The cargo load factor increased 400 bps to 62% Passenger carried grew by 5.9%, reaching 6.3 million passengers in 2Q14 compared to 6 million carried in 2Q13 Adjusted cost per available seat kilometer ex fuel (CASK ex-fuel) decreased by 4.0% in 2Q14 Successful transition of 60% of the Colombian domestic operation to the El Dorado Airport providing additional flexibility to Avianca s operation Adjusted net income does not include derivatives and fx impacts 3

4 2Q Highlights Fleet Network Milestones A A A ATR Total 157 International: Inauguration with four weekly frequencies: Bogota-London (LHR) Eleven incremental weekly frequencies: Bogota-Santiago (+7 14) Bogota-La Habana (+1 5) Bogota-Guatemala (+2 6) Bogota-Puerto Rico (+1 4) Domestic Inauguration with ten weekly frequencies: Lima-Iquitos 14 new frequencies: Bogota-Villavicencio Star Alliance: Implementation of code share agreement with Turkish Airlines Operations: Successful transfer to the new El Dorado Terminal (60% of domestic routes) First A321 operating in the Colombia Branding: Avianca s Ecuadorian carrier Aerogal has been integrated under the Avianca brand Source: Company information 4

5 5 Successful migration to the new El Dorado domestic terminal International Terminal New Domestic Terminal Terminal constructed by % of Avianca s domestic flights are now served from the El Dorado Airport. With a clear focus on high density routes (Barranquilla, Bucaramanga, Cali, Cartagena, Medellin, Pasto, Pereira, San Andres) Capacity for domestic flights increased from 10 gates and 6 remote positions to 20 gates and 13 remote positions The Puente Aereo continues to be exclusively operated by Avianca, providing operational flexibility

6 Avianca s healthy passenger growth continues to support the capacity deployment ASKs million Passengers 000 s 4.4% 5.9% 38,761 9,506 9,922 5,931 6,279 Yield - US Load Factor % 78.2% Source: Company information 6

7 The revenue growth and cost control measures are the base for Avianca s margin expansion Revenue USD 000 s OPEX USD 000 s* 3.6% 2.3% 1,105 1,144 1,070 1,095 RASK EBITDAR* EBIT* CASK* % 41.3% Margin* 13.0% 14.4% Margin* 3.2% 4.4% * Does not include one time write-offs; Source: Company information; 7

8 Avianca continuous to maintain healthy Loadfactors throughout its network Region 2Q ASK Growth 2Q RPK Growth 2Q Load Factor Domestic* +5.22% + 5.7% % 7.8% 76.7% 81.0% Intra Home Markets % + 8.7% 72.9% Home Markets to North America % + 5.9% 78.7% Home Markets to South America 3-8.4% - 4.1% 79.7% Central America & Caribbean % + 8.2% 67.4% Home Markets to Europe + 1.9% + 2.7% 88.2% Total ASK Growth 4.4% RPK Growth 4.3% Load Factor 78.2% Reduction due to redeployment from Venezuela * 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 3From Colombia, Peru, Ecuador and Costa Rica to Bolivia, Chile, Argentina, Brazil,Uruguay and Venezuela, 4 Belize, Cuba Curazao, Republica Dominicana, Panama, Costa Rica, Guatemala, Honduras, Nicaragua 8

9 Avianca consolidates its leadership in its key markets Market share in selected Avianca markets Colombia domestic 1 Peru domestic 2 3.7% Other Other 1.4% 12.3% 4.5% 7.0 % 11.4% % % 15.8% 60.7% 1 Jun, Jun, bp vs 2Q 2013 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 64% 1 26% 1 35% 1 32% * 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 3From Colombia, Peru, Ecuador and Costa Rica to Bolivia, Chile, Argentina, Brazil,Uruguay and Venezuela, 4 Belize, Cuba Curazao, Republica Dominicana, Panama, Costa Rica, Guatemala, Honduras, Nicaragua Source: Aeronautica Civil, MIDT 9

10 Through its new A330F fleet, Avianca Cargo positioned itself as a strategic player in the market Revenue ATKs 14.1% 20.0% RTKs LF 29.6% 400 BPS % 62% Source: Company information 10

11 2Q-2014 LifeMiles Highlights 2Q 14 sales to third parties increased by 11.7%* when compared with 2Q K active cobranded credit cards, increasing 26.5% compared with 2Q M 5.6M members, representing 10.1% a increase 9.2% in relation to increase 4Q2012 with respect to 2Q % Burn to Earn ratio, increasing 4.3%,year-over-year * Excluding Sales to Venezuela; Source: Company information, 11

12 Outlook 2014 During the second half the company will continue working on the optimization of deployed capacity, while strengthening its Intra - Home market connectivity Outlook 2014 In line with the cost control measures Avianca was able to increase its capacity by 4.0%, while decreasing its adjusted CASK ex fuel by 4.4% QoQ PAX (7% - 8%) The Cargo business unit continues to deliver strong results reaffirming Avianca s commitment to its revenue diversification strategy (+400 bp in Load Factor) During the second half of 2014 the company will begin the constructions of its MRO (Maintenance Repair and Operations Facility) as well as its Training Center for pilots and crews as part of its cost reduction initiatives ASK LF EBIT % (8%-9%) (77%-79%) (5%-7%) Source: Company information 12

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