Air Berlin PLC 11 th November 2015 Analyst Conference 3rd Quarter 2015

Transcription

1 Air Berlin PLC 11 th November 2015 Analyst Conference 3rd Quarter 2015

2 DISCLAIMER This presentation has been prepared by Air Berlin PLC. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of Air Berlin PLC, or any of its subsidiaries (collectively, the Company ), or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. Certain financial and statistical information in this presentation has been subject to rounding off adjustments and to currency conversion adjustments. Accordingly, the sum of certain data may not conform to the expressed total. Certain statements in this presentation constitute forward-looking statements. Any statement in this presentation that is not a statement of historical fact, without limitation, is a forward-looking statement. Such forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described in this presentation. As a result, you are cautioned not to place any reliance on such forward-looking statements. The forward-looking statements reflect knowledge and information available at the date of preparation of this presentation and the Company undertakes no obligation to update its view of such risks and uncertainties or to update the forward-looking statements contained herein. Nothing in this presentation should be construed as a profit forecast. This presentation does not constitute or form part of any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities of the Company, nor should it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Not for distribution or release, directly or indirectly, in or into the United States, Australia, Canada or Japan or any other jurisdiction in which the distribution or release would be unlawful. By viewing the presentation, you agree to be bound by the foregoing limitations. 2

3 Executive Summary airberlin improves operating profit in third quarter Revenue RASK growth in a competitive environment driven by capacity reductions and positive impact of the new Revenue Management System Increase in load factor caused by tactical capacity consolidation Cost Advantages of the low oil price offset by fuel hedging and a high US Dollar exposure Further expenses due to retraining of crew and additional number of aircraft in the transition phase to a single narrow body fleet Further headwinds from higher airport charges as well as higher navigation & air transportation tax Outlook RASK improvement versus previous year expected in 4 th quarter Further network and product optimization started 3

4 A. 3rd Quarter

5 Operational result Q3 improved versus prior year Total revenue [EURm] EBITDAR & EBIT [EURm] Net result [EURm] -1% Q Q , , % % +13% Total revenue EBITDAR EBIT Net result Positive yield and load factor development compensated capacity reduction Improvement in operational business leads to significantly positive EBITDAR development, despite higher airport charges, navigation & air transportation tax and negative impact from FX One time effect due to fleet harmonization weigh further on EBITDAR and EBIT Net result follows EBIT development as higher tax charges are compensated by lower interest expenses 5

6 Capacity adjustments and continuous network restructuring results in an increased load factor Q Q Capacity & Passengers [m] ASK [bn] RPK [bn] Load factor [%] -6.9% -6.3% -5.1% % % 88.3 Capacity Passengers ASK RPK Load factor Remarks Capacity adjustments and continuous network restructuring leads to a decreased offered capacity Relatively stronger demand on reduced capacity leading to a higher load factor 6

7 RASK increase stronger than CASK increase Yield [ ], Revenue and Cost 1 per ASK [ c.] Cost 1 per ASK incl. fuel [EUR ct] % Q Q % % % Fuel Yield R/ASK C/ASK excl. fuel Airport charges Remarks Strong yield development combined with higher load factor leads to a strong RASK increase of close to 6% Costs per ASK increased by 5.2%. Main drivers have been: Lower fuel costs have been offset by higher airport charges as well as navigation and air transportation tax Higher leasing & depreciation expenses due to the ongoing fleet harmonization as well as the stronger USD Personnel costs have risen by a direct employee takeover, tariff developments and non-recurring expenses due to ongoing restructuring programme Navigation & Air transportation tax Personnel Leasing & depreciation Other incl. OOR Q Q (1) Cost on EBIT level including other operating result 7

8 Lower interest expenses are offset by higher tax charges Interest expense Currency & derivatives effects Total income tax result Q Q % +13% n.a Breakdown of financial result EURm 8

9 B. January to September

10 Operational result improved despite headwinds from FX Total revenue [EURm] EBITDAR & EBIT [EURm] Net result [EURm] 3, % 3,165.5 Jan-Sep 14 Jan-Sep % % -27% Total revenue EBITDAR EBIT Net result Positive yield and load factor development largely compensated capacity reduction of 6.6% Ground and other services incl. ancillaries improved versus prior year EBITDAR improvement driven by positive development of Q1 and Q3 EBIT affected by increased leasing costs driven by one-off effects due to ongoing fleet harmonization as well as FX Negative deviation due to valuation of derivatives 10

11 Strong Q3 load factor confirms the total year development Jan-Sep 14 Jan-Sep 15 Capacity & Passengers [m] ASK [bn] RPK [bn] Load factor [%] % % % % % 84.8 Capacity Passengers ASK RPK Load factor Remarks Ongoing network improvements and tactical capacity adjustments results in overall capacity reduction Strong Q3 load factor confirms total year development 11

12 RASK growth stronger than CASK in nine month period Yield [ ], Revenue and Cost 1 per ASK [ c.] Cost 1 per ASK incl. fuel [EUR ct] % Jan-Sep 14 Jan-Sep % % % 5.85 Fuel Yield R/ASK C/ASK excl. fuel Airport charges Remarks Total revenue per ASK improves by 3% due to positive yield and load factor development Navigation & Air transportation tax Personnel Main drivers for the CASK increase of 2.4% were: 4.6% reduction in ASK volume leads to higher unit costs for non variable expenses Increase in airport charges as well as navigation and air transportation tax offsets advantages from fuel costs Increase in leasing & depreciation comes from one-off effects resulting from capacity reduction and fleet harmonization as well as strong USD Leasing & depreciation Other incl. OOR Jan-Sep Jan-Sep 15 (1) Cost on EBIT level including other operating result 12

13 Currency & derivatives effects weigh on financial result in the first nine months Interest expense Currency & derivatives effects Total income tax result Jan-Sep 14 Jan-Sep % % % Breakdown of financial result [EURm] 13

14 Consolidated balance sheet structure EURm as of Dec 31 st, 2014 as of September 30 st, ,863 1,697 Fixed assets Other current assets 47% 39% 122% Debt Fixed assets Other current assets 48% 33% 132% Debt Debt Liquid assets 14% -22% Equity Liquid assets 19% -32% Equity Equity Net debt: 804 Net debt:

15 HEDGING Q Hedging profile vs 2014 Hedging profile [%] 1) Rate / Price development [EUR/USD] 1) / [USD/t] 1) 2) 100% 95 1,40 D O L L A R 80% 60% 40% 20% 1,35 1,30 1,25 1,20 1,15 1,10 0% Sep Oct Nov Dec 1,05 Sep Oct Nov Dec Hedge Percentage 2015 Current Hedge Rate / Price 2015 Hedge Rate / Price 2014 Hedge Percentage 2014 Market / Fwd Rate / Price Best Case Hedge Rate / Price Scenario 90 Worst Case Hedge Rate / Price Scenario 100% F U E L 80% 60% 40% 20% % Sep Oct Nov Dec 450 Sep Oct Nov Dec 1) as of 03 Nov 2015 l Hedge percentage / rate / price 2014 as of 05 Nov ) excl. differentials Hedge percentage 2016: EURUSD: 60% l Fuel: 50% 15

16 Questions & Answers