3Q 2014 Earnings Presentation

Transcription

1 3Q 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 3Q 2014 Avianca Holdings Reports Operating Income of $70.3 Million for the third quarter of 2014 Passengers carried grew by 7.5%, reaching 6.8 million passengers in 3Q14 compared to 6.4 million carried in 3Q13 Capacity measured in ASK s increased 6.1%, while passenger traffic measured in RPK s rose 5.3%. As a result, the consolidated load factor reached 81.3% Operating revenues amounted to $1.23 billion (+3.9% vs 3Q 2013 and 7.2% vs 2Q 2014), while operating income (EBIT), amounted to $70.3 million, with a margin of 5.7% (+130 bp vs. 2Q 2014) Cargo revenues increased by 12% while capacity measured in ATKs grew by 15%. The cargo load factor increased 600 bps to 65% Total cost per available seat kilometer (CASK) increased by 3.9% during 3Q14 and remained stable at 10.8 cents for the first 9 months Adjusted net income* came in at 37.7 million, with a net income margin of 3.1% (+123 bps vs. 3Q 2013) Adjusted net income does not include derivatives and fx impacts 3

4 3Q Highlights Fleet Network Milestones A A A ATR Phase out: -2 International: Ten incremental weekly frequencies: Bogota-Barcelona (+3/ DEC 14) Bogota-Cancun (+7) Domestic 64 incremental frequencies on high density routes: Bogota-Cali (+23) Bogota-Medellin (+21) Bogota-Baranquilla (+14) Bogota-Cartagena (+7) Cargo: Successful completion of the acquisition of a stake in Aerounion in Mexico Implementation of code share agreement with Etihad Investor Relations: Official recognition of the BVC, for the quality of the information provided Source: Company information Total 165 4

5 Avianca s healthy passenger growth continues to support the capacity deployment ASKs million Passengers 000 s 6.1% 7.5% 10,683 6,853 10,067 6,373 Yield - US Load Factor % 81.3% Source: Company information 5

6 The revenue growth and cost control measures are the base for Avianca s margin expansion Revenue USD 000 s OPEX 000 s* 3.9% Cycles:+11.3% 10.2% 1,227 1,167 1,182 1,049 RASK CASK* Evolution throughout , EBIT 4.55% 1,049 1, EBIT 4.35% 1,095 1,227 EBIT 5.7% 1, Q Q Q Revenues OPEX PRASK * When indicated cargo and other revenues are adjusted for net interline commission fees received and paid during the period, which for 3Q 2014 amounted to $9.9 million. The new accounting ERP standards carry these amounts either as an incremental cost or as a lesser expense under sales and marketing depending on the net effect of the period.; Source: Company information; 6

7 Avianca mainly deploys capacity to its Home Markets and North America Region 3Q ASK Growth 3Q RPK Growth 3Q Load Factor Domestic* +5.22% + 9.5% % 8.6% 76.8% 81.0% Intra Home Markets % % 77.4% Home Markets to North America % + 7.7% 83.4% Home Markets to South America 3-5.5% - 5.1% 83.8% Central America & Caribbean % + 4.4% 73.2% Home Markets to Europe + 7.6% + 2.7% 87.8% Total ASK Growth 6.1% RPK Growth 5.3% Load Factor 81.3% 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 7

8 Avianca consolidates its leadership in its key markets Market share in selected Avianca markets Colombia domestic 1 Peru domestic 2 3.8% Other Other 1.4% 12.3% 4.5% 7.0 % 11.3% % % 20.5% 57.0% 1 Jun, Jun, bp vs 3Q 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 65% 1 27% 1 38% 1 28% * 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 8

9 Through its new A330F fleet, Avianca Cargo positioned itself as a strategic player in the market Revenue ATKs 12% 15% RTKs LF 27% 600 BPS % 65% Source: Company information 9

10 3Q-2014 LifeMiles Highlights 3Q 14 sales to third parties increased by 46.1%* when compared with 3Q K active cobranded credit cards, increasing 27.9% compared with 3Q M 5.8M members, representing 10.1% a increase 10.1% in relation to increase 4Q2012 with respect to 3Q % Burn to Earn ratio, increasing 1%,year-over-year * Excluding Sales to Venezuela; Source: Company information, 10

11 Outlook FY 2014 and 2015 Outlook FY 2014 Outlook 2015 PAX (6%-7%) (6%-8%) ASK (5%-6%) (5%-7%) LF (77%-79%) (78%-80%) EBIT % (5%-7%) (6%-8%) Source: Company information 11

12 Thank You Investor Relations Contact Information: Investor Relations Office Tel : (57)