Syn Prop e Tech SA · BMFBOVESPA:SYNE3
Syn Prop e Tech SA — Azul — Q3 2018 Earnings Presentation
13 slides from Syn Prop e Tech SA's earnings presentation, Nov 8, 2018
Slide 1: 3Q18 Results
3Q18 Results November 8th, 2018 1
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is only a summary and does not purport to be complete. This presentation has been prepared solely for informational purposes and should not be construed as financial, legal, tax, accounting, investment or other advice or a recommendation with
Slide 3: Customer Service Excellence
Customer Service Excellence YTD On-Time Performance (A151) 87.1% Voted best airline 86.4% 84.4% in Latin America by Kayak in all categories: 81.0% Azul Latam Avianca Gol Among top 5 on-time airlines in the world YTD (250+ daily flights) 1 Considers arrivals within 15 minutes of scheduled time (Fligh
Slide 4: Azul's Fleet Transformation
Azul’s Fleet Transformation The addition of next-generation aircraft is the cornerstone of Azul’s margin expansion strategy going forward CASK Advantage Trip Cost Advantage +5% -26% -29% -14% E195 E2 A320neo E195 E2 A320neo 118 seats 136 seats 174 seats 118 seats 136 seats 174 seats 4
Slide 5: 3Q18 Highlights
3Q18 Highlights ASK EBITDAR Operating Margin Net Income (million) (R$ million) (R$ million) +7.6% +19.3% 675 12.2% 7,701 628 199 6,454 7.1% 117 3Q17 3Q18 3Q17 3Q18 3Q17 3Q18 3Q17 3Q18 • EBITDAR increased 7.6% YoY to R$ 675 million • 3Q18 operating income of R$ 174 million, even with fuel and foreign
Slide 6: Operating Margin – 3Q18 vs. 3Q17
Operating Margin – 3Q18 vs. 3Q17 • Strong results from margin expansion strategy: - Fuel and currency impact accounted for 16-point reduction in margin - Recovery of 11 margin points from revenue recapture and margin expansion R$ million ~16 margin 12.2% points 7.1% 243 323 174 254 EBIT 3Q17 Fuel an
Slide 7: Revenue Statistics – 3Q18
Revenue Statistics – 3Q18 Average Fare Load Factor (R$) (%) 11% 380 83.1% 83.7% 342 3Q17 3Q18 3Q17 3Q18 RASK Stage Length (R$ cents) (Km) Stage-length adjusted +8.0% 11% 3% 1,023 31.7 30.9 926 3Q17 3Q18 3Q17 3Q18 7
Slide 8: TudoAzul and Azul Cargo Express Growth
TudoAzul and Azul Cargo Express Growth Strong non-ticket revenue growth driven by TudoAzul and Azul Cargo Express • Wholly-owned loyalty program TudoAzul • Additional capacity to drive further growth: ‒ 10.5 million members ‒ Increase in volume share from 11% to 14% YoY ‒ Increase in loyalty share*
Slide 9: Strong Liquidity Position
Strong Liquidity Position Azul maintained a strong cash position while protecting all of its non-aircraft debt foreign currency exposure Cash Balance Total Debt (R$ million) (R$ billion) Accounts receivables Adjusted for 46% of TTM currency Cash¹ revenue hedges 4,118 3.6 3.5 3,841 2.9 1,341 3,075 1,
Slide 10: Limited Foreign Exchange Exposure
Limited Foreign Exchange Exposure Azul has the lowest relative balance sheet exposure to foreign exchange volatility among Brazilian carriers Foreign Currency Exposure Assets and Liabilities in Foreign Currency (3Q18) (R$ million, 3Q18) Total Debt 6,072 R$ US$ 33% Aircraft¹ 2,875 67% Non-Aircraft De
Slide 11: 2018 Outlook
2018 Outlook 2018 Guidance 9M18 ASK growth 16% to 18% 16.7% Domestic 7% to 9% 6.5% International 50% to 55% 62.9% CASK ex-fuel -1% to -3% -0.2% Operating margin 9% to 11% 7.8% Note: CASK ex-fuel and operating margin adjusted for non-recurring items 11
Slide 12: Clear Path to Increased Profitability
Clear Path to Increased Profitability Diligently executing on margin expansion drivers, with further room for improvement Operating Margin Growth Breakdown Macro Environment Non-ticket Revenue TudoAzul A320neo / E2 Improvement in GDP growth Baggage and other Lower interest rates Further redu
Slide 13: Investor Relations
Investor Relations +55 11 4831 2880 invest@voeazul.com.br