Qantas Airways Limited · ASX:QAN
Qantas Airways — Merger or Acquisition (December 2006)
16 slides from Qantas Airways's merger presentation, Dec 14, 2006
Slide 1: Recommended Offer
RECOMMENDED |
Slide 2: Highlights
HIGHLIGHTS Airline Partners Australia (‘APA‘) today announced a recommended cash takeover offer for all of the shares in Qantas Airways Limited » $5.60 per share in cash — final price) » Unanimously recommended by Qantas Board in the absence of a superior offer and subject to the conclusion of an in
Slide 3: Attractive Price
_ ATTRACTIVE PRICE Qantas share price v offer price (last 3 years) Red Share price v Offer Price (last 3 years) $6.00 Offer Price $5.60 $5.50 $5.00 g g | 80% Premium $4.00 WAP. (to Speculation Date) (1) $3.50 Closing Price ($} $3.50 $3.00 $2.50 $2.00 : T T : T T T T T T T T Nov-03 Feb-04 May-04 Aug-
Slide 4: Acknowledging the responsibility of owning Australia's national flag carrier
Airline Partners Australia acknowledges the responsibility of owning Australia’s national ‘flag carrier’ » Majority Australian owned and controlled » Same Australian management & growth strategy >» More than 2/3 of the Board will be Australian citizens >» Compliance with all ownership laws and regul
Slide 5: Making Qantas Stronger - Investment for Growth
MAKING QANTAS STRONGER - : _INVESTMENT FOR GROWTH >» $10+ billion capital investment program over the next five years to strengthen the Qantas product offering — Upgrade ageing fleet ~— Improve quality of Qantas’ current premium offering >» Acquisition of more than 70 aircraft, resulting in a 40% in
Slide 6: Business as Usual
BUSINESS AS USUAL | Support for current Australian management and their growth strategy » No intention to break up the airline » No intention to cut regional services — regional network is viewed as a key asset » — No intention to move maintenance operations offshore PARTHERS
Slide 7: Commitment to management's existing plans for Qantas and Jetstar
Commitment to management’s existing plans for Qantas and Jetstar » Qantas will remain Australia’s national carrier Qantas will continue to employ and train thousands of Australians Qantas will continue its coverage of regional destinations Qantas’ world leading maintenance and safety record will be
Slide 8: Support management in the execution of its existing strategy
Support management in the execution of its existing strategy Patient Capital ~ longer term perspective than the day to day equity market Grow the domestic flying business Grow internationally, driven by Jetstar Substantial investments in new generation aircraft (A-380s, B-787s) Invest for a stronger
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Slide 10: Majority Australian Owned
_ MAJORITY AUSTRALIAN OWNED | Domestic (>60%) Foreign (<40%) eer co a Texas Pacific” i Grou, | 9% ers Australia.
Slide 11: Committed, Experienced and Responsible Owners
COMMITTED, EXPERIENCED | AND RESPONSIBLE OWNERS | » Alico Finance Group is a fully integrated global financial services business, ™ fisted on the Australian Stock Exchange and specialising in structured nN A L asset finance, specialised lunds management and debt funding FMAIE GROUP » Alico has estab
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Slide 13: Premium Price
- PREMIUM PRICE | Compelling offer that maximises value for Qantas Shareholders $6.00 $5.50 $5.00 $ per Qantas Share @ @ z s S & 8 8 we & a 6 $3.00 $2.50 $2.00 Offer price premium" © 30% 61% 88% 37% | Premium Premium Premium Premaum Offer Price 3 month vwap 6 month vwap 12 month war) Average Broker
Slide 14: Acquisition Multiple at a Premium to Comparable Companies
ACQUISITION MULTIPLE AT A PREMIUM _TO COMPARABLE COMPANIES | Adj EV/EBITDAR FY08 1 B.0x 7 Average Adj EV/EBITDAR FY08 = 5.8x 4 5.8x 6.0x 4.8% 4.0% + 2.0% + 0.0x a Cathay Pacific British Airways Singapore Airlines ACE (Air Canada} Qantas t-mth VWAP Qantas @ offer price’ PE FYOS 20.0% 5. 14, 15.0x Ave
Slide 15: Indicative Timetable
Indicative Timetable
Slide 16: Offer Details
OFFER DETAILS $5.60 all cash per share is the final offer price in the absence of an alternative proposal from a third party Under the terms of the offer, the interim dividend that would otherwise be payable by Qantas in April 2007 will not be available. However, the Qantas Board is evaluating wheth
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