Grupo Aeromexico, S.a.b. De C.v. · BMV:AERO
Grupo Aeromexico, S.a.b. De C.v — Investor Presentation (May 2018)
31 slides from Grupo Aeromexico, S.a.b. De C.v's investor presentation, May 2018
Slide 1: Investor Relations Presentation May 2018
Investor Relations Presentation May 2018
Slide 2: Aeromexico: Mexico's premium revenue carrier
Aeromexico: Mexico’s premium revenue carrier Aeromexico – Delta relationship: A new chapter Building a strong and flexible airline 3
Slide 3: Aeromexico's business model for sustainable long term success
Aeromexico´s business model for sustainable long term success Depth and breadth of network with Only Mexican carrier operating Offering up to a three-class Mexico’s only full service strongest domestic network and flights a “Hub & Spoke” network model, service, including Mexico´s only premium revenu
Slide 4: Aeromexico's recent milestones
Aeromexico´s recent milestones NAICM construction announcement Arrival of first 787-9 JV MRO Maintenance Strategic alliance JCA and Tender offer Transborder JCA begins intention announcement 2011 2012 2013 2014 2015 2016 2017 2018 Delivering positive consecutive operating profit every quarter for th
Slide 5: The right business model in the right economic environment: favorable demographics
The right business model in the right economic environment: favorable demographics Favorable Demographics Growing Middle Class (2) Favorable Demographic Trends (3) (2010 – Demographics in Million) (2050 – Demographics in Million) 90-95 Middle 90-95 49mm 70 mm 80-84 Class 80-84 70-74 70-74 60-64 60-6
Slide 6: Market share LTM March 2018
Market share LTM March 2018 Domestic International Others 5.4% Others 17.1% 28.6% 17.4% 46.3% 7.6% 11.2% 21.2% Transborder 11.2% Others 6.3% 6.6% 27.4% 6.2% 18.4% 9.5% 12.8% 16.8% 6 Sources: DGAC. March 2018 11.4%
Slide 7: Enhanced financial performance
Enhanced financial performance Revenue EBITDAR Million pesos Million pesos 16,284 14,114 873 +15.4% +12.7% 2,673 3,013 1Q17 1Q18 1Q17 1Q18 RASK CASK Exc. Fuel MXN Cents MXN Cents 1.260 1.263 +0.2% 0.983 0.918 (6.7)% 1Q17 1Q18 1Q17 1Q18 7 Source..Financial Report 1Q18
Slide 8: Aeromexico – Delta relationship: A new chapter
Aeromexico: Mexico’s premium revenue carrier Aeromexico – Delta relationship: A new chapter Building a strong and flexible airline 8
Slide 9: Aeromexico - Delta synergies: Our path to sustainable double digit margin
Aeromexico - Delta synergies: Our path to sustainable double digit margin 9
Slide 10: Aeromexico-Delta partnership: Customers at the heart of everything we do
Aeromexico-Delta partnership: Customers at the heart of everything we do… • Strategic focus on delivering what our customers truly value while ensuring that they lie at the heart of all of our actions and decisions • Customer focus will drive revenue premium • Enhanced focus on Net Promoter Score (N
Slide 11: Aeromexico-Delta partnership: The best in each of us
Aeromexico-Delta partnership: The best in each of us Revenue premium Unit cost 11
Slide 12: An industry leading cost base
Aeromexico-Delta partnership: The best in each of us - an industry leading cost base CASK stage length adjusted (US cents) LTM 18 3.33 4.34 5.14 5.31 6.24 6.39 6.56 6.92 7.31 7.35 8.12 8.30 9.10 9.82 6.73 Source: First Quarter 2018 Financial Statement. USD Cents Exchange Rate for 1Q18 is 18.73 and f
Slide 13: An industry leading revenue premium
Aeromexico-Delta partnership: The best in each of us - an industry leading revenue premium TRASK stage length adjusted (US cents) LTM 18 3.54 4.30 5.17 5.99 6.60 7.46 7.96 7.98 8.05 8.47 8.70 10.16 10.80 10.85 7.57 Source: First Quarter 2018 Financial Statement. USD Cents Exchange Rate for 1Q18 is 1
Slide 14: Core initiatives identified to drive synergies
Aeromexico - Delta synergies 35 core initiatives identified to drive synergies Network Product Service Operations $200M USD 14
Slide 15: Steady state revenue synergies
Steady state revenue synergies ≈ $160 USD million Cargo 160 USD Network Alliances million Revenue Management & Sales 15
Slide 16: Creating a hub south of Texas
Creating a hub south of Texas Traffic between Mexico and US is the largest market in the ATI granted on May 8 2017 world ≈ 9.2% YoY passenger growth in LTM 2018 Transborder LTM 2018 market: transborder ≈ 9.0% LTM market: passenger ≈ 30 million growth passengers 2018 16 Sources: DGAC. March 2018.
Slide 17: Building Latin America's global hub
Building Latin America´s global hub 24 USA & Canada 4 Europe 8 Central America & Caribbean 3 Asia Over 90 7 South America Destinations: 45 domestic and 46 17 international
Slide 18: Leveraging strongest domestic network
Leveraging strongest domestic network 18
Slide 19: Personalization to enhance the travel experience: Branded Fares
Personalization to enhance the travel experience: Branded Fares Increasing choice for all of our customers. Basic Classic/ Flexible AM+ Premier Class • Promotional fare • Essentials • Essentials • Time-saving • Superior Service • Limited benefits • Upgrade options • Upgrade options • More comfort •
Slide 20: Steady state cost synergies
Steady state cost synergies ≈ $40 USD million Supply chain & procurement Fleet & 40 USD Airports maintenance million Technology & systems alignment 20
Slide 21: Initiatives to get Aeromexico to a double digit operating margin
Initiatives to get Aeromexico to a double digit operating margin 2017 2018 2019 2020 2021 Synergy Timeline 21
Slide 22: Building a strong and flexible airline
Aeromexico: Mexico’s premium revenue carrier Aeromexico – Delta relationship: A new chapter Building a strong and flexible airline
Slide 23: Managing financial risks: FX and Fuel
Building a strong and flexible airline: Managing financial risks: FX and Fuel Exchange rate exposure Revenue Diversification Revenue 57% $31,455 MXN ≈ 40% 7,770 36% USD 43% ≈60% $22,241 13,311 64% Reduced risk Revenue Passengers from exchange DOM INT rate fluctuations Costs Fuel hedging strategy • A
Slide 24: Driving efficiency while enhancing customer experience
Building a strong and flexible airline: Driving efficiency while enhancing customer experience Jan 2006 2017 2018 SAAB 340 SAAB 145 170/190 Embraer Embraer 170/190 145 Embraer McDonnell MD80s Douglas 737s 737-700s/800s NG 737-800s NG/MAX 757s 787s Boeing Boeing Boeing 767s 787s 777s 777s 107 Aircraf
Slide 25: Fleet plan driving efficiency while enhancing customer experience
Building a strong and flexible airline: Fleet plan driving efficiency while enhancing customer experience • Expected seat growth of 4.1% during 2018 Fleet type Model 2016 2017 2018 E-145 15 - - E-170/190 50 59 61 Regional 65 59 61 737-700 19 16 13 737-800 34 38 36 737-MAX - - 5 Narrow Body 53 54 54
Slide 26: Fleet flexibility contributing to de-risking our plan
Building a strong and flexible airline: Fleet flexibility contributing to de-risking our plan Aircraft Risk management 250 200 150 Fleet plan flexibility 100 50 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 Year Aircraft Staggered Leases Fleet 2018 2019 2020 2021 Total Regional Total 2 3 27 9 41 Na
Slide 27: People
Building a strong and flexible airline: People Focus on productivity • Global management team that combines experience of international airlines. • Attracting and developing talent. • Safety and security has and will continue to be our top priority. 27
Slide 28: The traveler's journey
Building a strong and flexible airline: The traveler´s journey Loyalty Program Technological Ecosystem Key trends: • Driving ancillary revenue • Big data • Machine learning • Automated systems that enable a cost saving model Most popular Instant Messaging Apps 28
Slide 29: A new home for Latin America's global airline
Building a strong and flexible airline: A new home for Latin America's global airline • A state of the art hub for a state of the art airline • Supporting Mexican economic growth for generations to come: •Regional / global headquarters •Logistics hub – import/export •Employment •Economic development
Slide 30: Disclaimer
DISCLAIMER This presentation is neither an offer for sale nor a request to buy any securities. Such offer or request may only be made through an offering memorandum containing the description of the terms and conditions of such offer and shall include detailed information of the company and its mana
Slide 31: Aeromexico
M$ AEROMEXICO. 7)