Analysts and Investors conference call Q results. 15 May 2012

Transcription

1 Analysts and Investors conference call Q 202 results 5 May 202

2 Management summary Successful start into the year 202 Shape & Size has accounted to the operational improvement with more than EUR 50 m Positive revenue development with an increased seat load factor by 3.9%-points and yield improvement by 7.3% compared to Q/20 Cancellation of routes and capacity reduction have positively contributed to the operating result in Q/202 The severe fuel price increase of 8% compared to previous year s quarter could also be compensated by cost reduction measures out of Shape & Size Operating result improved by 2% compared to Q/ Net debt reduced due to the capital increase of Etihad Airways 2

3 Financial Performance Q 202 [in EUR m] Revenue EBITDAR EBIT NET income +4% % % +5% Q / 20 Q / Revenue grew strongly driven by yield and seat load development despite a 0% reduction in capacity Reduction in cost (ex fuel) and positive topline development offset the strong increase in fuel costs leading to positive EBITDAR Cost of aircraft ownership improved resulting in close to EUR 40 m EBIT improvement Financial result is EUR 8 m weaker than Q/20 due to non cash valuation differences in hedging instruments 3

4 Operational development st quarter Passenger, capacity, seat load factor & yield development Total revenue per ASK [EUR ct.] Cost (EBIT-level) per ASK [EUR ct.] +3.3% Passenger [m] Capacity [m] % % % Q/ Q/2 7.6 Q/ % 7.86 Q/ incl. fuel Cost (EBIT-level) per ASK excl. fuel [EUR ct.] SLF [%] %p. 4.9% 32.4% 9.7% 8.4% 30.0% 8.9% 20.0% 5.7% Yield [EUR] % 34.6% 35.3% Q/ Q/2 Q/ Q/2 A/P and handling charges Other Navigation Air transportation tax Personnel 4

5 Development of Expenses [EUR m] Direct operating expenses Compared to Q/ strong increase in fuel costs (+8%), other cost are in line with capacity reduction and cost reduction initiatives Other operating expenses Distribution cost higher compared to Q/ due to new inventory Personnel expenses Higher than last year driven by FTE increase and increment due to collective agreement +3.2% % Fuel MRO +5.9% Airport & handling charges Navigation Air transportation tax Catering Other Distribution Advertising Commissions Insurance Other Q/ Q/2 Q/ Q/2 Q/ Q/2 5

6 Cost of aircraft ownership Leases & depreciation [EUR m] Fleet development [number of aircraft] Lower than last year driven by reduction in fleet -3.7% Leases A320 family A330 family B737 family E90 Depreciation Q400 Q/ Q/2 Dec 20 Q/2 6

7 Financial result Q 202 vs. Q 20 [EUR m] Breakdown of financial result Income Expenses Currency & derivatives effects -20% % % Lower interest income compared to last year Interest expenses in 202 higher due to interest on corporate bonds Non-cash evaluation effect; lower than last year 7

8 Balance sheet [EUR m] Balance sheet structure, 20 vs. Q 202 B/S as of December 3, 20 B/S as of March 3, 202 Fixed assets Other current assets Liquid assets 2,264 66% 24% 0% Net debt: 83 % 89% Equity Debt Fixed assets Other current assets Liquid assets 2,5 8% 6% 92% 24% 5% 677 Equity Debt Equity increase of EUR 73 m through Etihad Seasonal loss in Q with negative impact on equity ratio; cumulative profitability for the next three quarters expected to improve ratio Next to equity injection, close to EUR 90 m were drawn under the credit facility with Etihad (shareholder loan) 8

9 Dollar hedging 202 Dollar hedging profile and FX rate development, 202 vs. 20 Hedging profile [%] FX rate development * [USD/EUR] [%] Apr 92 May Jun Jul Aug Sep Oct Nov Dec [EUR/USD] Apr May Jun Jul Aug Sep Oct Nov Dec Hedging Rate 202 (as of 05//202) Hedging Rate 20 (as of 05/20) Current Hedge rate Market / Forward rate Hedge rate 20 * as of May 202 / May 20 9

10 Fuel hedging 202 Fuel hedging profile and fuel price development, 202 vs. 20 Hedging profile [%] Price ) development * [USD/t] [%] Apr May Jun Jul Aug Sep Oct Nov Dec [USD/t],050, Apr May Jun Jul Aug Sep Oct Nov Dec Hedging Rate 202 (as of 05//202) Hedging Rate 20 (as of 05/20) Current Hedge price Market / Forward price Hedge price 20 ) excl. differentials * as of May 202 / May 20 0

11 Late one-off bonuses TXL and DUS for 20 identified (EUR 5.2 m) Outsourcing customs warehouse in discussion Module target decreased by EUR 2.0 m Conceptual preparation for model for base jumper discussed with crew planning Production adjustment (FY -3%) not completely compensated Required flexibility in flight program decrease productivity target Contracts for reduction/ optimization CUSS/ SSK in various airports finalized One-off payment regarding CUSS / SSK agreed Pilot Fuel Coaching campaign started Post flight analysis software to be installed (belair and NIKI) Awareness campaign for cockpit and cabin crew started Meeting with ATC & GOPS PMI conducted Implemented Flexibility of current system analyzed Number and type of flight changes analyzed Complexity costs evaluated Server solution for video conferencing tool, contract signed with cost savings of EUR 0. m The module responsibility changes to the new CHO Planning on level SVP/EVP to be prepared until 8 Mar 2 Increase of target for module by EUR.5 m Cost reduction through optimized use of printers and copiers identified Additional airport marketing support negotiated (EUR 0.4 m) Fuel measure to reduce cost index implemented (EUR 0.7 m) Shape & Size overview of key performance indicators and full year EBIT impact as of March 6 th 202 [EUR m] 3. Airport sourcing 3.2 Onboard services 3.3 Crew base concept 3.5 Crew productivity / travel 3.6 Enhancing ecki 3.7 Fuel saving 3.8 PMI punctuality 3.9 Compensation payments 3.0 Future OCC 3. IT 3.2 Overhead 3.3 Procurement / admin cost saving 3.4 NIKI cost > 55 m 5 > 0 m Cost initiatives Process improvement Maintenance 4 > 0 m 6 Profitability Improvement Network reduction & productivity Yield & Revenue mgmt EUR 2 Alliances 3 > 45 m > 70 m Yield optimization > 20 m Ancillaries Points of Sale Systems SHAPE & SIZE profitablity improvment full year 202 > EUR 200 m EBIT values without effects from cost avoidance

12 Contribution to full year EBIT improvement of more than EUR 50 m in the first quarter of 202 Q 202 Shape & Size performance [EUR m] Q > 0.5 Q Q > 2 > 3 5 Cost initiatives MRO 4 6 Process improvement Yield & Rev. mgmt Profitability Improvement EUR 2 Network reduction & productivity Q > 4 Alliances 3 Q Q > 20 > 2 SHAPE & SIZE profitablity improvment in Q/2 > EUR 50 m Satisfying yield development oneworld effects Aircraft sourcing Strategic procurement 5 Overall good achievements 6 Enhanced crew productivity and crew travel EBIT values without effects from cost avoidance 2

13 EBIT improvement now > EUR 225 m in 202 with increasing impact in the course of the year [EUR m] Share of Total 22% 3% 34% Effect in EUR m >70 >225 >60 >45 >50 Q Q2 Q3 Q4 202 Implementation Realization 3

14 Strong earning improvement envisaged Target 202 Operational performance Result Balance sheet A L Capacity Strong fleet reduction (0% of aircraft) Reduction in selected nonstrategic markets in Europe Moderate increase in long haul business Capacity utilization and income Increasing load factor through network reduction, improved sales platform and partnerships Revenue Growth in revenue through yield and SLF growth expected Expenses Cost per ASK ex fuel will be kept stable; structural cost increases will be offset through Shape & Size Result Improvement in profitability Balance sheet Equity and liquidity stabilized through Etihad investment Deleveraging is the key objective for 202; initiatives are on the way Strong earnings improvement targeted for 202, Shape & Size with continous positive effects 4