Syn Prop e Tech SA · BMFBOVESPA:SYNE3
Syn Prop e Tech SA — Azul — Q1 2018 Earnings Presentation
11 slides from Syn Prop e Tech SA's earnings presentation, May 10, 2018
Slide 1: 1Q18 Results
1Q18 Results May 10th, 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: Keeping track of our Promises
Keeping track of our Promises Azul continues to execute on its margin expansion strategy while delivering one of the best airline experiences in the world Elected airline with Best airline in Brazil best corporate and third best in the reputation in Brazil world by Melhores by consulting Destino
Slide 4: 1Q18 Highlights
1Q18 Highlights ASK EBITDAR Margin Operating Margin Net Income (million) (R$ million) 12% 30.1% 30.9% 7,166 211 6,384 12.5% 11.1% 58 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18 • EBITDAR growth of 20.8% YoY to R$684 million • Record operating margin of 12.5% for the first quarter - RASK increase of 5.0%
Slide 5: 1Q18 Revenue Highlights
1Q18 Revenue Highlights Strong passenger demand drove 5.1% increase in PRASK on 12.2% increase in ASKs Average Fare Load Factor (R$) (%) 19% 82.2% 376 81.4% 317 1Q17 1Q18 1Q17 1Q18 PRASK Stage Length (R$ cents) (Km) +12.5% stage- length adjusted 15% 5% 1,010 29.5 28.0 881 1Q17 1Q18 1Q17 1Q18 5
Slide 6: 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: ‒ Over 9 million members ‒ Increase in volume share from 9% to 13% YoY ‒ Increase in loyalty share
Slide 7: Strong Liquidity Position
Strong Liquidity Position Azul maintained a strong cash position while paying off debt during 1Q18 Cash Balance Total Debt (R$ million) (R$ million) Accounts receivables Cash¹ 42% of TTM revenue -9% 3.7 3,558 3,443 3.5 3.4 914 1,166 2,139 622 2,643 2,277 1,517 1Q17 4Q17 1Q18 1Q17 4Q17 1Q18 5.1 3.9 3
Slide 8: 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 (1Q18) (R$ million, 1Q18) Total Debt 5,329 R$ US$ 35% Aircraft¹ 2,970 65% Non-Aircraft De
Slide 9: Best Positioned to Seize Brazil’s Growth Potential
Best Positioned to Seize Brazil’s Growth Potential Thanks to its differentiated business model, Azul captured more than 50% of the domestic passenger growth over the last decade Brazil Domestic Passengers by Year • Proprietary network: (in millions) ‒ Largest network in the country (100+ destination
Slide 10: 2018 Guidance
2018 Guidance 2018 Guidance 1Q18 Departures growth 3% to 4% -5.8% ASK growth 17% to 20% 12.2% Domestic 8% to 10% -0.1% International 55% to 60% 80.3% CASK ex-fuel -2% to -4% 0.7% Operating margin 11% to 13% 12.5% 10
Slide 11: Investor Relations
Investor Relations +55 11 4831 2880 invest@voeazul.com.br