Air Arabia PJSC · DFM:AIRARABIA
Air Arabia PJSC — Investor Presentation (May 2008)
16 slides from Air Arabia PJSC's investor presentation, May 2008
Slide 1: Air Arabia PJSC Investor Presentation
Air Arabia PJSC Investor Presentation May 2008 May 2008 -1-
Slide 2: Disclaimer
Disclaimer Information contained in this presentation is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the company. Neither we nor our advisors make any representation regarding, and assumes no responsibility or liability
Slide 3: Agenda
Agenda Air Arabia at a Glance Investment Highlights Financial Highlights Strategy and Outlook May 2008 -3-
Slide 4: Highlights
Highlights Route Network – as of December 2007 A national carrier of the UAE… Established in 2003 by the Government of Sharjah First and largest low-cost airline in the MENA region 5.03 billion RPK(1) 2.5x the number of passengers as its closest LCC rival(1) Current fleet of 11 leased Airbus 320s Ne
Slide 5: Passenger and Aircraft Growth
Passenger and Aircraft Growth Number of Destinations Fleet Size 38 16 14 40 37 14 35 32 12 11 30 23 10 25 8 20 8 15 5 15 6 4 3 10 5 5 2 0 0 2003 2004 2005 2006 2007 08 Q1 2004 2005 2006 2007 08 Q1 Total Passengers and Load Factor Geographic Distribution 3,000 2,700 100% Central Asia, 79% 80% P a sse
Slide 6: Investment Highlights
Investment Highlights Highly favorable home and regional market dynamics Strong air traffic growth projected in our target regions Low Cost Carrier (LCC) model highly untapped in the Middle East First mover advantage Highly profitable Low Cost Carrier business model Continue to drive costs lower thr
Slide 7: Strong Air Traffic Growth Projected in Our Target Regions
Highly Favorable Home and Regional Market Dynamics Strong Air Traffic Growth Projected in Our Target Regions International Air Traffic Growth by Key Route Area Middle East Passenger Traffic(1) 270 7.1% 6.0% AAGR % 2005A-2010E Passengers in MM 5.3% 5.3% 81 Middle East Routes All International Routes
Slide 8: Low Cost Carrier Model Highly Untapped in the Middle East
Highly Favorable Home and Regional Market Dynamics Low Cost Carrier (LCC) Model Highly Untapped in the Middle East LCC Penetration – Proven Markets – LCC Penetration - Middle East(2) 2005A(1) Europe LCC 2005A 2008E – Air Arabia Estimate LCC 11% LCC 1.4% 0.8% Traditional Carriers 89% North America LC
Slide 9: Highly Profitable Low Cost Carrier Business Model (Q3/07)
Highly Profitable Low Cost Carrier Business Model (Q3/07) Revenue / ASK Cost / ASK Company EBITDAR (AED - Fils) (AED - Fils) Air Asia 13.7 11.2 32.2% Air Arabia 21.1 13.6 34.3% Ryan Air 21.5 16.8 30.0% Jet Blue 20.3 19.1 16.6% South West 22.6 20.8 15.2% Vigin Blue 36.8 31.3 19.6% WestJet 34.0 29.2 2
Slide 10: Continue to Drive Costs Lower Through Operational Efficiencies
Highly Profitable Low Cost Carrier Business Model Continue to Drive Costs Lower Through Operational Efficiencies Revenue/Passenger – Q1 2007 Vs. Q1 2008 Cost/Passenger – Q1 2007 Vs. Q1 2008 470 421 346 418 Revenue/Passenger (AED) Cost/ Passenger (AED) Q1 2007 Q1 2008 Q1 2007 Q1 2008 12% Y-o-Y Growth
Slide 11: Highest Level of Aircraft Utilization in the A320 Family
Highly Profitable Low Cost Carrier Business Model Consistently Achieved the Highest Level of Aircraft Utilization in the A320 Family * 100.0 99.8 99.6 Operational Reliability % 99.4 Avg. A320 99.2 99.0 98.8 98.6 98.4 98.2 98.0 7 8 9 10 11 12 13 14 15 Daily Utilization (Hours) *Data indicated for Q1
Slide 12: Drive Growth Through an Aggressive Expansion Plan
Drive Growth Through an Aggressive Expansion Plan Significant Route and Fleet Expansion Planned, Supported by Sharjah Airport Expansion 5 Hour Flying Radius (Sharjah Hub) We currently serve only 38 out of the potential 200 airports within 5-hours flying radius May 2008 - 12 -
Slide 13: Track Record of Profitable Expansion
Drive Growth Through an Aggressive Expansion Plan Track Record of Profitable Expansion # of Destinations vs. Net Profit Margin Breakeven Load Factor vs.*Actual Load Factor 38 Net profit margin (%) 40 25.0% 32 23.0% 20.0% 100% Destinations 30 24 18.0% 80% 15.0% 86% 16 80% 85% 20 60% 77% 79% 73% 12 10
Slide 14: Experienced Management Team
Experienced Management Team May 2008 - 14 -
Slide 15: Historical Financial Performance
Historical Financial Performance Revenues Gross Profit Gross Profit (AED in MM) 350 318 30.0% 25.9% 1,400 300 25.0% 1,225 Revenues (AED in MM) % Margin 1,200 250 17.4% 20.0% 200 15.8% 1,000 12.5% 130 13.8%15.0% 749 150 800 100 65 53 10.0% 600 411 50 24 5.0% 356 400 192 0 0.0% 200 2004 2005 2006 2007
Slide 16: Operating Statistics
Operating Statistics 2004 2005 2006 2007 Q1 08 # of Aircrafts 3 5 8 11 11 Average Aircrafts 3.0 4.9 6.0 9.5 11 Destinations 15 23 32 37 38 # of Passengers (Millions) 0.6 1.1 1.7 2.7 0.76 RPK (Billions) 1.2 2.5 3.7 5.0 1.5 ASK (Billions) 1.8 3.2 4.7 5.8 1.7 Average Load Factor 68.0% 79.0% 80.0% 86.0%