Highlights Q EBITDA forecast for 2015 raised to USD million. Higher passenger revenue and lower fuel price resulting in higher EBITDA

Transcription

1 ICELANDAIR GROUP PRESENTATION OF Q RESULTS 28 JULY 2015

2 Highlights Q EBITDA USD 50.3 million improving by USD 5.0 million from 2014 Higher passenger revenue and lower fuel price resulting in higher EBITDA EBITDA forecast for 2015 raised to USD million 2

3 FINANCIAL RESULTS BOGI NILS BOGASON ǀ CFO

4 The USD has remained strong against most currencies as compared to % -11% -15% -19% -19% -22% -23% ISK EUR GBP CAD DKK NOK SEK Change in main currencies against the USD; Q215 vs Q214 4

5 The weight of US dollars increases in revenues Operating income Operating expenses Q Q Q Q % 51% 51% 39% 22% 26% 32% 31% 16% 17% 5% 5% 5% 4% 9% 7% 1% 1% 13% 11% 2% 3% 2% 2% ISK USD CAD EUR GBP Other* ISK USD CAD EUR GBP Other* Other* mainly the Scandinavian currencies 5

6 Q2 improves between years due to higher passenger revenue and lower fuel price USD million Q Q % Chg. Operating Income % Salaries and related expenses % EBITDA and net profit USD million EBITDA Net Profit Aircraft fuel % Aircraft lease % 50 Aircraft handling, landing and comm % Aircraft maintenance % Other expenses % EBITDA EBIT EBT Profit for the period EBITDA ratio 17.1% 15.2% 1.9 ppt EBITDAR EBITDAR ratio 20.1% 18.4% 1.7 ppt 3 Q211 Q212 Q213 Q214 Q215 6

7 The revenue growth from LY on fixed exchange rates is 9.8% +44% Q211 Q212 Q213 Q214 Q215 Transport revenue Aircraft and aircrew lease Other revenues All figures in USD million. 7

8 Growth in all our businesses in Q2 Year-on-year change in % Passengers Route Network ASK Route Network SLF (ppt) Route Network Passengers Regional and Greenland flights ASK Regional and Greenland flights SLF (ppt) Regional and Greenland flights Fleet utilisation Charter flights Sold BH Charter flights ATK Cargo FTK Cargo Available HRN Hotels Sold HRN Hotels Utilisation (ppt) HRN Hotels 8

9 The Via market our largest market in Q2 with 431 thousand passengers +77% % % % 36% 15% 36% 17% 17% 21% 24% 52% 40% 43% 47% 49% Q211 Q212 Q213 Q214 Q215 To From Via Absolute figures in thousands. 9

10 Load factor increases on top of double digit capacity increase Available seat kilometers (ASK) in millions Passenger load factor +84% 2.8 ppt % 82.2% % 79.5% 80.1% Q211 Q212 Q213 Q214 Q215 Q211 Q212 Q213 Q214 Q215 10

11 Record EBITDA of USD 48 million in the first six months USD million 6M M 2014 % Chg. Operating Income % Salaries and related expenses % EBITDA and net profit USD million EBITDA Net Profit Aircraft fuel % Aircraft lease % 48 Aircraft handling, landing and comm % Aircraft maintenance % Other expenses % EBITDA EBIT EBT Profit/loss for the period EBITDA ratio 10.0% 6.5% 3.5 ppt 8 EBITDAR EBITDAR ratio 13.6% 10.6% 3.0 ppt M11 6M12 6M13 6M14 6M15 11

12 Effective fuel price paid in Q % higher than the average world fuel price 1, % Jan 14 Feb 14 Mar 14 Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Average World Market Price Effective Price Figures: USD/ton. 12

13 56% of estimated fuel usage has been hedged in the next 12 months Period Estimated usage (tons) Option volume Swap volume Total swap and option contracts %hedged Av. Swap Bought call price USD strike Sold put strike Jul 15 36,777 6,000 14,620 20,620 56% Aug 15 36,679 8,000 12,610 20,610 56% Sep 15 30,956 6,000 10,470 16,470 53% Oct 15 24,181 4,000 9,570 13,570 56% Nov 15 20, ,640 10,640 53% Dec 15 19, ,620 11,620 61% Jan 16 19, ,460 10,460 55% Feb 16 17, ,410 10,410 60% Mar 16 19, ,390 10,390 52% Apr 16 18, ,430 8,430 46% May 16 26, ,420 15,420 57% Jun 16 34, ,400 20,400 59% Total 304,285 24, , ,040 56%

14 Increase in cash and cash equivalents amounting to USD million in the first six months Changes in Cash in January - June 2015 USD million Net cash from operations and as % of income USD million Net cash from op. activities Cash Net cash from operating activities Net cash used in investing activities Net cash used in financing activities Currency effect Cash % of income Q Q Q Q Q % 31% 40% 28% 29% 14

15 Balance sheet remains strong with 36% equity ratio and low interest bearing debt USD million Assets Operating Assets Intangible assets Other non-current assets Total non-current assets Other current-assets Marketable securities Cash and cash equivalents Total current assets Total assets 1, USD million Equity and liabilities Stockholders equity Loans and borrowings non-current Other non-current liabilities Total non-current liabilites Loans and borrowings current Trade and other payables Deferred income Total current liabilites Total equity and liabilities 1, Equity ratio 36% 34% 43% Current ratio Net interest bearing debt Interest bearing debt

16 OUTLOOK BJÖRGÓLFUR JÓHANNSSON ǀ PRESIDENT AND CEO

17 Chicago the latest addition to our Route Network

18 Increased co-operation with Hilton Worldwide to attract higher paying segments

19 Purchase of three Q400 for the regional airline operations finalised Route map Regional airline operations First aircraft expected to fly in the regional route network in December 2015 Five Fokker-50 aircraft will be sold The new aircraft opens opportunities to: Expand into new markets Serve the Icelandic market better The new aircraft will improve the efficiency in the operations Same manufacturer of all aircraft Fewer number of aircraft than today 19

20 Call to action with a strategic roadmap for Icelandic tourism in autumn 2013 with the launch of the BCG report in Harpa 20

21 EBITDA forecast for 2015 raised to USD million EBITDA development in USD million Main forecast assumptions: Successful operations in the first six months of the year 154 Favourable external condition: 144 EUR/USD rate assumed 1.10 for the latter half of 2015, an increase from last forecast in April which was Average fuel price (excluding hedging) 606 USD/ton in July, 555 USD/ton in August and 600 USD/ton for the last four months of the year Booking status in the international Route Network strengthened beyond expectations especially in Q3 Outlook in other businesses of the Company is good Forecast

22 ICELANDAIR GROUP Reykjavík Airport 101 Reykjavík Iceland Tel: Fax: Copyright Icelandair Group All rights reserved