Aegean Airlines Sa · ATHEX:AEGN
Aegean Airlines Sa — Investor Presentation (September 2018)
29 slides from Aegean Airlines Sa's investor presentation, Sep 3, 2018
Slide 1: Corporate presentation
Corporate presentation September 2018 September 3, 2018 1
Slide 2: Aegean at a glance – Full Service carrier delivering quality excellence
Aegean at a glance – Full Service carrier delivering quality excellence +80% ASKs growth 2012‐ 2017 13.2 million 49 Jet Aircraft passengers 12 Turboprops 153 destinations Athens hub + 6 122 international other A/C bases 31 domestic Skytrax • Fleet & network as of 2018 Award winning 2
Slide 3: 19 Year History with Long Term Growth despite Adversity
19 Year History with Long Term Growth…..despite Adversity 2017 • Service & Personnel Quality Main Advantage 8th time awarded by Skytrax 13.2 Passengers in million 2011 12.5 International 2003 traffic 2013 11.6 First Year with exceeds Olympic Air Profits before 2007 Listing in domestic for Acquired T
Slide 4: Passengers recognize service
Passengers recognize service Distinctions: Best regional Airline in Europe according to Skytrax for 2018 9th in the list of top 20 best airlines in the world by Conde Nast Traveler Reader’s Choice Awards – October 2017 Ranked 7th by Airhelp score – June 2018 Service highlights: Promote tradi
Slide 5: Greek Tourism develops strongly in 2013-2017
Greek Tourism develops strongly in 2013‐2017 Competitiveness, Stability & higher investments enhance the role of tourism High dependence on Western European markets remains With international Air Arrivals the key contributor Total tourist arrivals (in m) Tourist arrivals by country 27.2 23.6 24.8 22
Slide 6: Impressive & Consistent! Passenger Traffic growth post 2013
Impressive & Consistent ! Passenger Traffic growth post 2013 Greek Tourism Awareness & Product Improving ! Passengers in million Domestic International 60.0 41.6 50.0 Total 2013‐2017 CAGR +10% 40.0 28.5 28.1 CAGR 2013‐2017: +10% 30.0 83% CAGR 2007‐2017: +4% CAGR 2007‐2013: +0% 20.0 81% 8.2 10.0 6.6
Slide 7: Aegean Reacts to Opportunity
Aegean Reacts to Opportunity ……Athens international network rapid expansion 2013: 40 Destinations 2018: 109 Destinations from Athens from Athens 17 Countries 41 Countries 27 International 80 International 17 Destinations 17 Destinations 40
Slide 8: Developing Hub flows / Athens competitive advantage
Developing Hub flows / Athens competitive advantage 2008‐2017 => 5x Connecting Flows through Athens Aegean connecting In ,000 passengers grow 5x 3,500 Indicative Network Flows 3,000 NORTH WEST Warsaw, Kiev, Moscow, 2,500 5X Budapest, 2,000 Prague, Stockholm, St. Petersburg, Sofia, NORTH EAST Helsi
Slide 9: And still….Retains Leading Domestic Share
And still….Retains Leading Domestic Share despite……2 Foreign & 3 Local Carriers Active in Domestic ! • Flies to 31 destinations to support international feed & be positioned for recovery • Olympic Brand Commercial Operation 100% domestic • Exploit historic brand, alternate distribution policy 2017 M
Slide 10: Aegean 2018 Network Focus
Aegean 2018 Network Focus…..+ 11 destination ex Athens ! • Conservative and focused growth ‐ further strengthening Athens hub • Focus on Italian / German / Spanish and Swiss routes • New routes include Basel, Bologna, Cluj Napoca, Genova, Lamezia, Malaga, Palermo, Porto, Turin, Verona, Zadar, Zagreb
Slide 11: Aegean clear market leader in Athens
Aegean clear market leader in Athens • Only European Carrier with Increased International PAX Share since Ryanair Activity in Home Base International pax share evolution in Athens for Aegean and Ryanair 35% 37% AIA Market shares in Total traffic A3 Ryanair 34% 31% 28% 24% Others 23% (58 carriers) 20
Slide 12: Rising Direct bookings / Allows access to customer, ancillary potential
Rising Direct bookings / Allows access to customer, ancillary potential 60% Company web bookings / total 50% +20 ppt 40% 30% 20% 10% 0% 2013 2014 2015 2016 2017 2019 e • Ancillary potential: – Extra space seat charge as of February 2018 – Eurobank loyalty program ‘Epistrofi’ added to partnerships /
Slide 13: Re-fleeting plan for 2020-2025 with Airbus A320neo family
Re‐fleeting plan for 2020‐2025 with Airbus A320neo family • MOU with Airbus for delivery of 30 A/C plus 12 options announced in March 2018 • Final Airbus purchase agreement expected in June 2018 • Negotiating positions for direct leases with lessors to increase number of new A/C deliveries • New fle
Slide 14: New A/C characteristics & Re-fleeting objectives
New A/C characteristics & Re‐fleeting objectives Increase Seat New engine Quality upgrade capacity Improved Range option offers 15% / New services +3.5% to +8% Possibilities fuel savings opportunities (A320 / A321) *Addressing lease * Opportunity to reset *Right size Fleet duration / holding Mainten
Slide 15: Market Update – 2018
Market Update –2018 • Market demand positive with rising passenger traffic, but below capacity growth Total Passengers 1Q17 1Q18 yoy 2Q17 2Q18 yoy 1H17 1H18 yoy Jan‐July 2018 yoy Domestic Market 3,060,842 2,894,175 ‐5% 4,255,445 4,516,291 6% 7,316,287 7,410,466 1% 9,470,724 2% International Market 2
Slide 16: Aegean's operating performance in 2018
Aegean’s operating performance in 2018 • Network synergies and commercial initiatives drive Load Factors higher, despite an already high comparison base • 2nd year of conservative capacity growth, in view of re‐fleeting investment Total passengers (,000) ASKs (,000) Total passengers (,000) ASKs (,00
Slide 17: 1H18 Seasonal Losses
1H18 Seasonal Losses 1H17 1H18 Change Key Headlines in EUR ,000: Revenue 450.7 455.7 1% EBITDAR 59.7 50.0 ‐16% EBITDA (10.5) (14.7) 41% Pre‐tax earnings for the period (26.7) (18.3) ‐32% Net earnings for the period (20.0) (13.8) ‐31% Load factor ‐ Scheduled services (RPK/ASK) 79.2% 81.7% 2.4pp RASK
Slide 18: Strong cash flow generation
Strong cash flow generation 1 Cashflow 1H18 (EUR m) In EUR m 37 36 180 5 2 308 16 396 Cash & financial operating Total changes in Interest & tax Capex OA acquisition Dividend Finance leases FX diff Cash & financial investments the cashflow before working capital investments at the beginning of the w
Slide 19: Appendix
Appendix +> AEGEAN 2 hounauacevawens 2 © OLYMPIC
Slide 20: Hedging coverage
Hedging coverage • Managing exposure to reduce volatility on results and target cost certainty USD needs coverage % of annual needs Average rate FY 2018 59% 1.14 FY 2019 61% 1.19 Fuel needs coverage % of annual needs Average rate $/MT* FY 2018 61% 555 FY 2019 57% 650 • As of Sept 3rd, 2018 • * in FO
Slide 21: Shareholder Structure
Shareholder Structure 32.4% 36.7% 30.9% E. Vassilakis * Other pre‐IPO shareholders Free Float Listed on the Athens Exchange *11.7% controlled through Autohellas, 23.8% controlled through Evertrans 21
Slide 22: Profit & Loss 2016-2017
Profit & Loss 2016‐2017 P&L Group Group %yoy In € millions FY:16 FY:17 Revenue Scheduled Services 870.4 963.4 11% Charter 41.4 54.6 32% Other (cargo, ancillaries, executive aviation) 108.6 109.7 1% Total revenue 1,020.3 1,127.6 11% Other operating income 14.2 14.0 ‐2% Employee benefits (119.5) (125.
Slide 23: Key Operating Statistics 2016-2017
Key Operating Statistics 2016‐2017 FY:16 FY:17 Change Group Group In % RASK (Revenue per ASK, in € cents) 6.3 6.9 9% Yield (Revenue per RPK, in € cents) 8.1 8.2 1% CASK (EBT level, in € cents) 6.0 5.3 5% CASK (EBT level, in € cents) ‐ excl. fuel costs 4.8 4.1 6% Capacity ASKs (in millions) 16,383 16
Slide 24: Balance Sheet
Balance Sheet In € millions ASSETS 31/12/2016 31/12/2017 TOTAL EQUITY AND LIABILITIES 31/12/2016 31/12/2017 Intangible assets 47.0 45.1 Share capital 46.4 46.4 Goodwill 39.8 39.8 Share premium account 72.8 72.8 Tangible assets Other reserves 30.1 4.0 100.8 94.2 Retained profit / (loss) 95.0 124.7 Ad
Slide 25: Cashflow Statements
Cashflow Statements 31/12/2016 31/12/2017 Profit / (loss) before tax 51.6 85.8 Adjustments for: Depreciation of tangible assets 18.0 19.4 Provisions (9.0) (1.5) Foreign currency exchange (gains) / losses 1.9 11.9 (Profit) / loss from investing activities 0.2 (0.9) Finance Cost 5.5 3.6 Cash flows fro
Slide 26: Revenue growth fueled by international network expansion
Revenue growth fueled by international network expansion • Efficient network & revenue management drives load factors, although yield dilution over the years given increasing stage length • Ancillary potential not fully exploited • Network direction justifies further investment on higher capacity fl
Slide 27: Showing Cost discipline over the years
Showing Cost discipline over the years • Re‐fleeting offers opportunity to address maintenance costs FY:09 FY:16 FY:17 % total FY:17 costs in EUR Cost per ASK Employee benefits 1.11 0.73 0.75 12% 125.0 Aircraft fuel 1.32 1.20 1.23 20% 204.5 Depreciation 0.15 0.11 0.12 2% 19.4 Aircraft leases 0.79 0.
Slide 28: Aegean Share
Aegean Share • Listed in Athens Exchange • Bloomberg AEGN GA / Reuters AGNr.AT • IPO : July 2007 / €7.60 IPO price • Dividends / Returns: – DPS FY08 €0.25 – DPS FY09 €0.13 – Capital return FY13 €1.00 – DPS FY14 €0.70 – DPS FY15 €0.70 – DPS FY16 €0.40 – DPS FY17 €0.55 • Contact: investors@aegeanair.c
Slide 29: Disclaimer
Disclaimer Forward Looking Statements Except for historical information, the statements made or information contained in this presentation are forward‐looking in nature. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objecti
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