Virgin Australia Holdings Limited · ASX:VGN

Virgin Australia — Virgin Blue Holdings — FY2005 Earnings Presentation

17 slides from Virgin Australia's earnings presentation, Nov 16, 2005

  1. Slide 1: Annual Financial Results

    Annual Financial Results 12 months ended 30 September 2005 Brett Godfrey Managing Director 16 November 2005

  2. Slide 2: Financial Highlights

    Financial Highlights % 2005 2004 Increase / 12 months to 30 $m $m Decrease September Revenue $1,755.7 $1,532.6 + 14.6% EBITDAR $379.5 $427.2 -11.2% Profit Before Tax $148.4 $224.3 -33.8% Net Profit After Tax $105.2 $157.4 -33.2% Earnings Per Share 10.1 cents 17.1 cents -40.9% Dividend per share 25.0

  3. Slide 3: Operating Highlights

    Operating Highlights % 12 months to 30 September 2005 2004 Increase/ Decrease Passengers carried 13.4 million 11.8 million + 13.6% RPKs 15.7 billion 13.8 billion + 13.8% ASKs 20.4 billion 17.5 billion + 16.6% Load Factor - revenue 76.8% 78.9% - 2.1 pts Average Aircraft 48.8 44.3 + 12.4% Yield – sche

  4. Slide 4: Virgin Blue – the last 12 months

    Aug 30 2000 LCC Jan 05 Up t o5 0f lig h Co / M ts p Feb 05 ha mm EL er d ng en ay ar ce SY fac co D ilit ns Sk y i ru t Mar 05 yb n B cti oa ris on rd ba of –b ne Bl ue ig ge Pl st Apr 05 us mo far bi l OA es eb G illb Lo oa w rd May 05 $1 Co in 38 st Au .1 Ca str m rri er ali illi on of a t h Jun 0

  5. Slide 5: Group Strategy

    Group Strategy „ Improve quality and reduce volatility of revenue streams „ Maintain superior operational performance „ Product development and new business opportunities „ Keep driving cost control culture 4

  6. Slide 6: Positioning ourselves to improve revenue streams

    Positioning ourselves to improve revenue streams COST QANTAS Legacy DOMESTIC SABENA Dinosaurs PAN AM Low Cost Carrier YIELD New World Carrier VIRGIN BLUE TODAY JETSTAR RYANAIR VIRGIN BLUE 2000 AIR ASIA 5

  7. Slide 7: Revenue

    Revenue Improving yield environment Yield (Scheduled Revenue) 15.00 90% 80% 14.00 13.05 70% 13.00 60% 12.00 11.77 50% 11.00 10.65 40% 10.40 30% 10.00 20% 9.00 10% 8.00 0% FY01/02 FY02/03 FY03/04 FY04/05 Yield ASK Growth 6

  8. Slide 8: Improving Revenue

    Improving Revenue „ Focus on improving quality of Revenue – increase yield and reduce volatility „ Increase penetration of business market „ Elevate market/brand penetration „ Product improvement „ Interline and ancillary revenue – new revenue sources, higher margins „ Branding and marketing targete

  9. Slide 9: Operational Performance - OTP

    Operational Performance - OTP 95 90 OTP Percentage 85 Jetstar Qantas 80 Virgin Blue Average: 75 Jetstar 84.8% Qantas 83.9% 70 Virgin Blue 90.4% Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Source: DOTARS 8

  10. Slide 10: Product Improvement Supports Move Upmarket into Business Market

    Product Improvement Supports Move Upmarket into Business Market Loyalty Program Live2Air Others „ “Velocity” „ Cost neutral or better „ Launched yesterday „ Delayed launch „ Frequency via trunk „ Survey evidence • rollout still 2006 routes showed lack of program „ Will provide the only „ Blue Room b

  11. Slide 11: Other Revenue Streams – Higher Margins Lower Volatility

    Other Revenue Streams – Higher Margins Lower Volatility API Ancillary revenue „ New API technology allows Virgin Blue to Codeshare with any international carrier „ On board product • Estimated to account for up „ Blue Holidays dynamic to 15% of Qantas traffic packaging which has been locked up „ Car

  12. Slide 12: Non-Flying Revenue – Area for Growth

    Non-Flying Revenue – Area for Growth Ancillary Revenue as Percentage of Total Revenue 20% 15% 10% 13.6% 5% 7.2% 4.9% 4.3% 2.0% 0% Ryanair Easyjet Virgin Jetblue Southwest Blue 11

  13. Slide 13: Controllable Costs Continue to be Driven Downwards

    Controllable Costs Continue to be Driven Downwards „ Average cost per barrel of Jet Cost per ASK (cents) Fuel has increased more than 10 76% 9 7.73 7.71 7.95 „ As a result, CASK rose in 8 7.26 2H05 1.25 7 1.63 1.97 1.26 „ Price impact (ASK adjusted) 6 in 2004/5 was $115 million 5 „ Non-fuel costs we

  14. Slide 14: Fleet Strategy

    Fleet Strategy „ Continue to operate one of the youngest fleets in the world „ Fleet profile in next 12 months „ 4 new 737-800 to be added „ 2 leased 737-800 to be returned (one in FY06 and one in FY07) „ ASK growth in FY06 under 2.5% 13

  15. Slide 15: Capital Management

    Capital Management „ Full year dividend of 25 cents per share „ Policy going forward to pay annual dividend subject to capital management strategy „ No commitment to underwrite future dividends. 14

  16. Slide 16: Outlook

    Outlook „ 2004/05 Tough Year „ Fuel price increase had impact of $115 million before tax „ Highly competitive environment, especially with pressure on yields „ Consolidation and focus on product development broadened our appeal. „ 2005/06 … „ Fuel not expected to return to previous levels (FY04 – US

  17. Slide 17: Thank You

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