Azul S.a. · BMFBOVESPA:AZUL3
Azul — Q4 2024 Earnings Presentation
18 slides from Azul's earnings presentation, Feb 24, 2025
Slide 1: 4Q24 Results
4Q24 Results February 24, 2025
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is only a summary and does not purport to be complete. This presentation has been prepared solely for informational purposes and should not be construed as financial, legal, tax, accounting, investment or other advice or a recommendation with
Slide 3: Solid and Unique Business Model
Solid and Unique Business Model Azul’s Core Strengths Unparalleled Beyond the Metal: High-Growth Lowest Cost Network Business Units Structure Flexible and Fuel-Efficient Exceptional Supportive Fleet Customer Service Stakeholders 3
Slide 4: Unparalleled Network
Unparalleled Network Overlap with Competitors Route Map (# of routes) Competitor 1 31 (21%) 13 76 28 229 (82%) 8 31 (22%) Competitor 2 Asunci ón Azul is uniquely positioned with the most diversified network in Brazil, while competitors focus mainly on three cities 4
Slide 5: Unparalleled Network: Market Presence
Unparalleled Network Market Presence (% of capacity in airports where departure share exceeds 60%) Azul 63.3% Aerolineas Argentinas 62.9% Wideroe 53.6% IndiGo 39.8% Air New Zealand 38.0% Qantas 24.5% Malaysia Airlines 20.3% ANA 19.0% Ryanair 18.5% Ethiopian Airlines 17.1% JAL 15.4% LATAM Airlines 14
Slide 6: All-Time Record Revenue, EBITDA and EBIT
All-Time Record Revenue, EBITDA and EBIT 4Q24 Revenue 4Q24 RASK R$5.5 billion R$44.98 cents 4Q24 EBITDA¹ 4Q24 EBIT¹ R$2.0 billion R$1.2 billion 35.2% margin 22.3% margin Positive results and industry-leading profitability 6 ¹Adjusted for non-recurring items related to restructuring, totaling R$117.1
Slide 7: Strong Unit Revenue even with Capacity Growth
Strong Unit Revenue even with Capacity Growth ASK RASK (Billion) (R$ cents) +11.0% -0.7% 12.3 45.3 45.0 12.0 +3.0% 42.9 42.2 11.1 11.1 +4.9% 10.9 38.2 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 ¹ 1Q24 2Q24 3Q24 4Q24¹ Impacted by Floods Impacted by Floods in Rio Grande do Sul in Rio Grande do Sul Strong RASK even
Slide 8: Beyond the Metal: Strong Contribution from Business Units
Beyond the Metal: Strong Contribution from Business Units RASK (% of total) 15% 23% 85% 77% 4Q23 4Q24 Business units Passengers Business units accounted for 23% of RASK and 24% of EBITDA in 4Q24, at more than R$450 million Over R$1.5 billion EBITDA contribution in 2024 8
Slide 9: Beyond the Metal: Higher Revenue from Business Units
Beyond the Metal: Higher Revenue from Business Units Gross Billings Ex-Airline Gross Billings International Revenue (R$ million) (R$ million) (R$ million) +27% +63% +9.0% 2023 2024 2023 2024 2023 2024 Business units leverage Azul’s unparalleled network and flexible fleet, providing low-risk growth 9
Slide 10: Lowest Unit Cost Among Peers
Lowest Unit Cost Among Peers CASK¹ CASK ex-fuel¹ Foreign exchange (R$ cents) (R$ cents) (R$) -6.5% +17.8% 37.35 5.84 34.93 +0.7% 4.96 23.72 23.88 4Q23 4Q24 4Q23 4Q24 4Q23 4Q24 YoY CASK down and CASK ex-fuel flat even with 17.8% devaluation of Brazilian real and 4.8% inflation 10 ¹Adjusted for non-re
Slide 11: Elevate Plan: Higher Aircraft Utilization and Productivity
Elevate Plan: Higher Aircraft Utilization and Productivity Aircraft Utilization* Productivity (Block hours per day) (Million ASK per FTE) +12.7% +10.2% 12 802 10 728 4Q23 4Q24 4Q23 4Q24 Elevate Plan initiatives leading to higher aircraft utilization and productivity, also increasing capacity 11 *Exc
Slide 12: Solid Business Model Leading to Consistent Profitability Growth
Solid Business Model Leading to Consistent Profitability Growth EBITDA (R$ billion) ~7.4 6.1 5.2 3.6 3.2 2.6 2.3 1.8 1.2 1.4 1.3 1.6 0.5 0.1 0.2 -0.1 0.3 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E EBITDA of R$6.1 billion in 2024 Reaffirming ~R$7.4 billion f
Slide 13: Significant Reduction in Liabilities
Significant Reduction in Liabilities Loans, Financing and Other Liabilities (R$ billion) -6.3 19.0 -2.7 -8.5 -0.9 2.3 12.8 10.5 -5.0 4Q24 Loans, financing Lessor/OEMs 2030 Lessor/OEMs notes 2029 and 2030 notes 4Q24 Pro-forma 2030 Incremental Pro-forma and other liabilities equity instrument superpri
Slide 14: Shareholder Structure After Equitization
Shareholder Structure After Equitization % Current Economic Shareholder Structure Current Economic Shares Pro-forma % Pro-forma Shares Current shareholders 348,136,997 69% 348,136,997 15% Lessors/OEMs Equity 96,009,988 19% 96,009,988 4% Existing Convertible 57,000,000 11% - 0% 2L Direct Equitization
Slide 15: Equitization at Implied Valuation of US$2 Billion
Equitization at Implied Valuation of US$2 Billion Loans, Financing and Other Liabilities Dilution (R$ billion) (%) +55 -6.3 19.0 85 12.8 30 4Q24 Pro-forma Current Pro-forma R$6.3 billion debt reduction for 55% incremental dilution: implied valuation of US$2 billion 15
Slide 16: Setting Azul Up for Long-Term Success
Setting Azul Up for Long-Term Success Safety Cash Generation and Operational Crewmember Customer Profitability Integrity Engagement Experience $ Governance and Management Discipline Creating a forever-lasting company, preferred by customers, crewmembers, partners and investors 16
Slide 17: Further Opportunities to Expand Margins
Further Opportunities to Expand Margins Margin Expansion Drivers (EBITDA, R$ billion) ~7.4 Transformational Beyond the metal Initiatives 6.1 high growth business units Fleet transformation and higher utilization Unique network position 2024 2025E Already identified opportunities leading to continued
Slide 18: Thank you.
Thank you. INVESTOR RELATIONS Contact us +55 11 4831-2880 invest@voeazul.com.br www.voeazul.com.br/ir 18