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Avianca Holdings S.A. 1Q 2018 Earnings Presentation 2018
Transcript of Avianca Holdings S.A.s22.q4cdn.com/896295308/files/doc_financials/2018/... · 2016 2015 8.7% EBIT...
Avianca Holdings S.A.1Q 2018 Earnings Presentation 2018
Disclaimer
The present document consolidates information from Avianca Holdings S.A. and its
subsidiaries, including unaudited financial figures, operational managerial
indicators, financial indicators and managerial projections of future performance,
in line with Avianca Holdings S.A. and its subsidiaries’ business plans. 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 warn
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 S.A.
ExecutiveSummary
1Q 2018
Executive Summary
• New routes:
• LIM-MDZ to operate
2Q’18, 1F per day
• BOG-MUC to operate
4Q’18 , 5F per week
• US$ 1.2 Billion in
Revenues in 1Q’18; +9.4%
year on year
• Strongest 1Q revenue
since IPO
• CASK ex-fuel reduction of
-2.2% reaching 6.2 US ¢
• 8.7% EBIT1 margin for
1Q’18 +207 bps vs 1Q’17
• Continuous Yield
recovery since 3Q’17
• Yield increase of 5.5% to
9.1 US¢
• Transported 11,400 tons
of Valentine’s Day
flowers, + 4.4%
• Cargo revenues increase
of 17.2%
• Load Factor of 83.6%
+175bps vs 1Q ’17
• 7.4 million transported
passengers for 1Q’18
• Avianca Holdings S.A. is
currently negotiating a
re-accommodation in
Aircraft orders for
delivery in the 2020-2022
period
• Avianca is awarded as
one of the best airlines
in Latin America by
TripAdvisor
• Leverage reduction
measured as Adjusted net
debt/ EBTIDAR reduced
from 6.0x to 5.9x yoy
• Cash to LTM Revenue of
12.5%1. When indicated the figures are adjusted by the following one-time items: ACDAC’s operatives expenses; $ -25,402
FinancialAnd
Operat ionalResults
1Q 2018
• NEO technology allows savings of up to 20%
in jet fuel (-5K in the emission of CO2 by
plane)
• A321S fuel-saving Sharklets –offers up to 5%
fuel-burn savings (+100 nautical miles/185
kilometers | +1000 pounds/450 kg inpayload
capacity)6
Embraer 190
ATR 72/42
Cessna 208
Airbus 330
Boeing 787
Airbus 330F
Airbus 300F
Boeing 787F
• A320neo on March 18, 2018
• (+2) A321S on March 18, 2018
• (+2) A330 on January 22, 2018
Out In Detail
Executing on our
fleet plan1Q 2018
Airbus 320
113|+3
8
17
13
8|+2
12
5
5
2
188Total Fleet
8,332 9,060
9,972 10,647
1Q15 1Q16 1Q17 1Q18
40,243 40,919
FY 2017 LTM
10,549 11,504
12,180 12,734
1Q15 1Q16 1Q17 1Q18
48,401 48,955
FY 2017 LTM
7
2015
Fourth consecutive quarterly Yield YoY increase; 1Q18 Yield increased 5.5% to 9.1 cents
1Q RPKs – Millions
Quarterly Full Year Ex-Strike
1Q Load Factor
1Q ASKs – Millions 1Q Yield - US¢
+6.8%
+1.7%+175 bps +44 bps
+4.5%
+1.1% +5.5%+1.4%
79.0% 78.8%
81.9%83.6% 83.1% 83.6%
1Q15 1Q16 1Q17 1Q18 FY 2017 LTM
10.8
8.7 8.6 9.1 9.3 9.4
1Q15 1Q16 1Q17 1Q18 FY 2017 LTM
8.88.9
Quarterly Full Year Ex-Strike Non-passanger Revenues EBIT/EBITDAR Margin RASK8
2017
2016
2015
6.5% EBIT Margin for 1Q2018, +7 bp vs 2017 despite lingering effects of pilot strike
1Q Revenues – US millions 1Q EBITDAR – US millions
1Q CASK ex Fuel - US¢ 1Q EBIT – US millions
10.6
8.7 8.8 9.2
899 792 862
972
217 213
205 197
1Q15 1Q16 1Q17 1Q18
9.2
9.3
3,550 3,659
891 883
FY 2017 LTM
886 897
19.9% 19.7%
FY 2017 LTM
194
215 216
227
17.4%
21.4%20.3% 19.4%
1Q15 1Q16 1Q17 1Q18
10.0
8.1 8.2 8.6 8.6 8.7
7.5 6.7 6.4 6.4 6.7 6.7
1Q15 1Q16 1Q17 1Q18 FY 2017 LTM
57
72 69
76
5.1%
7.2%
6.4% 6.5%
1Q15 1Q16 1Q17 1Q18
294
301
6.6%
6.6%
FY 2017 LTM
Quarterly Full Year Ex-Strike Non-passanger Revenues EBIT/EBITDAR Margin RASK9
2017
2016
2015
8.7% EBIT Margin1 for 1Q18, +207 bp vs 1Q17; Strongest 1Q EBIT Margin1 since 1Q14 (adjusted)
1Q EBITDAR – US millions
1Q CASK ex Fuel - US¢ 1Q EBIT – US millions
1Q Revenues – US millions
1. When indicated the figures are adjusted by the following one-time items: ACDAC’s operatives expenses; $ -25,402
10.3
8.5 8.8 9.2
899 792 862
972
189 185
205 197
1Q15 1Q16 1Q17 1Q18
9.6
9.7
3,734 3,843
891 883
FY 2017 LTM
68 72 70
101 6.3%
7.4%6.6%
8.7%
1Q15 1Q16 1Q17 1Q18
434
4659.4%
9.8%
FY 2017 LTM
9.7
7.9 8.2 8.4 8.7 8.7
7.2 6.4 6.3 6.2
6.7 6.6
1Q15 1Q16 1Q17 1Q18 FY 2017 LTM
+13.4%
+2.2%
+9.1%
+9.9%
+4.7%
-3.3%
Region
Domestic*
Intra Home
Markets1
Home Markets to
North America2
Home Markets to
South America3
Central America &
Caribbean4
Home Markets
to Europe
Total
+11.5%
+0.3%
+7.8%
+9.0%
+1.1%
-7.4%
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Avianca reports the strongest 1Q Load Factor in company history of83.6%
1Q18 RPK Growth 1Q18 ASK Growth
*Domestic Market: Colombia, Peru, Ecuador 1 Local Intra-Markets: Colombia, Peru, Ecuador, Salvador, Costa Rica, Guatemala; 2 From Local Markets to North América including México 3 From Colombia, Perú, Ecuador and Costa Rica to Bolivia, Chile, Argentina, Brazil and Uruguay, 4 Belize, Cuba Curazao, Republica Dominicana,
Panamá, Costa Rica, Guatemala, Honduras, Nicaragua
1Q18 Load Factor
83.0%
80.1%
85.1%
87.4%
79.2%
80.7%
RPK 6.8% ASK 4.5% Load Factor 83.6%
83.0%
80.1%
85.1%
87.4%
79.2%
80.7%
Copa2.0%
11
1%
Intra-HomeMarkets
Home Markets To North America
Home Markets To South America
Home MarketsTo Spain
Despite the strike, Avianca continues to consolidate its Leadership Position in the Colombian domestic market
Colombia Domestic1 Peru Domestic1
Source: Aeronáutica Civil, MIDT1: December 2017;*Domestic Market: Colombia, Peru, Ecuador 1 Local Intra-Markets: Colombia, Peru, Ecuador, Salvador, Costa Rica, Guatemala; 2 From Local Markets to North América including México 3 From Colombia, Perú, Ecuador and Costa Rica to Bolivia, Chile, Argentina, Brazil ,Uruguay and Venezuela, 4 Belize, Cuba Curazao, Republica Dominicana, Panamá, Costa Rica, Guatemala, Honduras, Nicaragua
Avianca54.6%
Latam19.7%
VivaCo13.0%
Satena4.9%
Easyfly4.9%
Otros0.9%
66.8% 23.1%
29.4%
35.4%
Avianca11.3%
Peruvian16.2%
Latam57.1%
Starup3.0%
Others12.4%
Business Units
1Q 2018
620.3
601
1Q17 1Q18
545
566
2017 LTM
140
146
1Q17 1Q18
13
Avianca Cargo: financial and operational results
Source: Company.
(1) On a per trip basis. (2) Includes consolidated revenues from the cargo operation in Mexico and Deprisa (Other Business Unit) (3) Includes bellies and excludes Colombia domestic operations. Includes commercial agreements with OceanAir Linhas Aereas, not included in official statistics.
(4) International Cargo – Aeronáutica Civil de Colombia (as of September 2017) (5) Miami-Dade Aviation Statistics, by airline group (as of March 2018)
Segment Overview Key Metrics (Cargo and Courier)
Market Share Colombia (1Q18)4 Market Share Miami (1Q18)5
▪ Strong performance for 1 Quarter 2018, Transported tons of 11.400 tons
of Valentine’s Day flowers, + 4.4% vs 1Q17
▪ New A330Fs provide reduced unit costs, higher capacity (up to 40% more
than the previous fleet)(1) and improved reliability
▪ Network improving We are continuing our efforts to strengthen our
connections to and from AsiaRTK (MM)(3)
Revenue (US$MM)(2)ATK (MM) (3)
Load Factor
-3.0%
13.6%11.3% 10.4%
8.6%6.6%
13.7%
35.9%
Atlas UPS AVH Amerijet AmericanAirlines
Latam Others
36.2%
9.4% 9.4% 8.6%
4.2%
32.3%
AVH Atlas Latam UPS Skylease Others
2,502 2,483
2017 LTM
+3.2% +3.5%
52.9% 56.5%
1Q17 1Q18
56.7% 57.6%
2017 LTM
1,419.4 1,430.2
2017 LTM
+17.2%
328.6 339.4
1Q17 1Q18
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LifeMiles: Loyalty Company
• 1Q’18 gross billings increased 13.9% vs 1Q´17
• Active cobranded credit cards reached 651K, an increase of 16.6% vs. 1Q’17
• Approximately 8.1 million members, a 12.7% increase vs. 1Q’17
• 347 commercial partners, +6.1% vs 1Q’17
Colombia CAM SAM
New Commercial Partners & Awards
Flight Plan 2018
1Q 2018 2018 OUTLOOK
PAX
ASK
LF
-1.3% 7.0% – 9.0%
4.5% 8.0% – 10.0%
83.6% 80.0% – 82.0%
8.7%6.0% – 8.0%
EBIT¹
EBIT 6.5%
Source: Company Information
1. When indicated the figures are adjusted by the following one-time items: ACDAC’s operatives expenses; $ -25,402
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In Summary
US$ 1.2 Billion in revenues a +9.4% year on year
increase
CASK ex-fuel1 reduction of 2.2% reaching 6.2US¢
Continuous yield recovery of +5.5% vs 1Q’17 reaching
9.1 US¢
EBIT margin1 of 8.7%; +207bps vs 1Q 17 resulting in
strongest 1Q EBIT since IPO in 2013
Leverage reduction measured as Adjusted net debt/
EBTIDAR reduced from 6.0x to 5.9x yoy
This quarter Avianca, perceives strong demand across
its network, despite remaining impact of pilot strike,
achieving:
Cash to LTM Revenue of 12.5%
1. When indicated the figures are adjusted by the following one-time items: ACDAC’s operatives expenses; $ -25,402
Thank YouContact Information:
Investor Relations Office
T: (57) 1 – 5877700
www.aviancaholdings.com
