Qantas Airways Limited · ASX:QAN
Qantas Airways — H1 FY2009 Earnings Presentation
10 slides from Qantas Airways's earnings presentation, Feb 4, 2009
Slide 1: 2008/09 Half Year Results Investor Briefing
For personal use only 2008/09 Half Year Results Investor Briefing Disclaimer •This Presentation has been prepared by Qantas Airways Limited (ABN 61 009 661 901) (Qantas). Past performance •Summary information Past performance information given in this Presentation is given for illustrative purposes
Slide 2: Overview
Overview For personal use only • Market leading position – 65% domestic market share • Profitable • Investing for the future – Committed fleet renewal program • Prudent capital management – Maintain investment grade credit rating • FY09 outlook affirmed First Half 2009 (1H09) Result • Profit before
Slide 3: Key Drivers of 1H09 Result
Key Drivers of 1H09 Result For personal use only Half-Year Ended 31 December Increase/ • Revenue up 1.7% 2008 2007 (Decrease) – Passenger revenue flat $m $m % Total revenue 7,919 7,785 1.7 – Growth in Jetstar and Operating expenditure 6,771 5,969 13.4 Frequent Flyer EBITDAR 1,148 1,816 -36.8 Profit
Slide 4: Two Brand Strategy – Overview
Two Brand Strategy – Overview For personal use only • Domestic group market share at the profit maximising level of 65% • Provides flexibility in varying market conditions • Transition of international leisure routes to Jetstar Two Brand Strategy - Qantas • PBT of A$199 million, down 76% – Underpinn
Slide 5: Two Brand Strategy - Jetstar
Two Brand Strategy - Jetstar For personal use only • PBT of A$72 million, down 48% • Cost leadership • Low fares leadership • International leisure market growth • Pan Asian brand Loyalty • EBIT of A$73 million, up 18% Loyalty • Successful launch – Any Seat and Frequent Flyers Store – Direct earn st
Slide 6: Qantas Freight Enterprises
Qantas Freight Enterprises For personal use only • PBT of A$41 million, marginally down • Positively affected by exchange rates • Tough operating environment • Yield initiatives Operational Improvement • Enhanced fleet efficiency • Improved on-time performance • Product enhancements – Premium econom
Slide 7: Qantas' Response to Current Environment
Qantas’ Response to Current Environment For personal use only • Decisive reductions in capacity to mitigate traffic decline • Cost reductions • Flexible hedging allows participation in fuel price reductions and protection from FX movements • Capital expenditure managed to enhance financial flexibili
Slide 8: Sustainable Future Program
Sustainable Future Program For personal use only • SFP program reset in FY09 and targets reassessed • New target of A$1.1 billion to 30 June 2010 reflects – Reduced growth-related savings – Reduced fuel efficiency savings – Other targeted savings maintained • Target of A$550 million benefits to be r
Slide 9: Capital Management
Capital Management For personal use only • Strategy of continuing to grow and re-equip fleet • Maintaining strong capital position critical to fleet renewal program • Management focus on – Improving free cash flow within the business; and – Preserving cash and maintaining liquidity • Cash balance of
Slide 10: Fuel and Foreign Exchange
Fuel and Foreign Exchange For personal use only • Unprecedented volatility • High levels of hedging • 85 percent participation at current prices • Fuel costs A$486 million higher – FX hedging gains of A$180 million partially offset this in the P&L • At current prices fuel costs will be lower in H209