Vietjet Aviation Joint Stock Company · HOSE:VJC
Vietjet Aviation Joint Stock — Q3 2017 Earnings Presentation
29 slides from Vietjet Aviation Joint Stock's earnings presentation, October 2017
Slide 1: Key Highlights – Q3/2017 Business result
Vietjet Aviation Joint Stock Company Key Highlights –Q3/2017 Business result October 2017
Slide 2: Disclaimer
Disclaimer INFORMATION CONTAINED IN OUR PRESENTATION IS INTENDED SOLELY FOR YOUR REFERENCE. SUCH INFORMATION 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 ADVISOR MAKES ANY REPRESENTATION
Slide 3: Key Highlights
Key Highlights Carried 4.36 m passengers in Q3 2017, an increase of 25% vs Q3 2016. ASK in Q3 2017 is 5,776 m, increased 32,1 % vs Q3 2016 Fuel price increased 8.6% vs Q3 2016 from 65USD/barrel to 70.59 USD/barrel in Q3 2017 The Revenue increased 34.4% vs Q3 2016 to VND 6,142 Bil(1) in Q3 20
Slide 4: Operating Statistics
Operating Statistics Modern and young fleet with average age of 3.37 years TOTAL ROUTES OPERATED comprising 25 Airbus A320s and 15 A321s as of 30 September 2017. 73 55 Up to 30 September 2017, VJC has total 219 aircraft on order with Airbus and Boeing in which the company received 27 aircraft. Q
Slide 5: Passenger Growth To More Than 40 M Passenger Per Annum
Passenger Growth To More Than 40 M Passenger Per Annum Total Passengers (‘000 pax) 50,000 45,000 43,000 39,000 40,000 36,000 34,000 35,000 30,000 30,000 25,000 25,000 20,000 17000 15,000 14,051 9,313 10,000 5,562 5,000 3,156 - 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 5
Slide 6: Flight network extension
Flight network extension - y CHINA. CHENGDU — ) — cuNepu nok SS TAINAN, * \ MACAU.) Me KAOSHIUNG! iii \HONGKONG \ \ MYANMAR” \ / (includes 3B ioe routes & 35 international routes) grew/by 20 io routes, Byer the same period last year “Sp> KUALA LUMPUR | if
Slide 7: Hanoi - Yangon route launch
Company Overview Vietjet has commenced Hanoi - Yangon route. After Ho Chi Minh City, Hanoi - Yangon is the second route flying to the beautiful Myanmar of Vietjet. 6
Slide 8: Products - Services
Products - Services Reasonable and economical price with varied ticket types for choosing “12pm, It’s time to Vietjet” promotion campaign offered millions of tickets from VND0 to bring flying opportunities for domestic and foreign passengers Sky Shop & Jet Café foods and souvenir services on board c
Slide 9: 4 aircraft were wet-leased
4 aircraft were wet-leased Early August, 2017, after exploration and assessing process, the delegation and 4 Vietjet’s aircraft departed to Pakistan to operate wet-leased flights. Vietjet’s aircraft have been operated on the domestic routes of Pakistan. With the 4 aircraft wet leasing, Vietjet has e
Slide 10: Typical events of the 3Q2017
Typical events of the 3Q2017 On October 15, 2017, CEO Nguyen Thi Phuong Thao delivered an impressive speech to 1000 delegates at Da Nang Investment Forum 2017, chaired by Prime Minister Nguyen Xuan Phuc On October 7, 2017, in Albuquerque City (New Mexico, United States), Vietjet’s hot air balloo
Slide 11: Awards
Awards • Vietjet continued to be honored by Forbes Magazine among the Top 50 Vietnamese best listed companies at Business Forum held in Ho Chi Minh City • Vietjet was honored as the “Pioneering Airline” at the festival of national tourism industry 2017 (The Guide Awards) which was held by The Guide
Slide 12: Fleet Expansion
Fleet Expansion Vietjet’s aircraft fleet by 30th September, 2017 stood at 40 aircraft including 25 Airbus A320s and 15 Airbus A321s with the average age of 3.37 years. The fleet of aircraft has seat configuration from 180 to 220-230 seats and the designs are in tune with the low cost airline busines
Slide 13: A321 deliver cost & revenue benefits
Young, modern and Fuel Efficient Fleet AC Type Vietjet Air Asia Indigo Jetstar easyJet Ryanair (JQ) A319 ( 156 seats) 143 A320 25 173 137 53 136 A321 ( 230 seats) 15 6 B737-800 383 Avg. Age (y) 3.37 6.6 5.6 7.9 7.0 6.5 Total 40 173 137 59 279 383 A321 deliver cost & revenue benefits 13
Slide 14: Cost, cost & cost! A strong focus on cost
Cost, cost & cost! A strong focus on cost 13
Slide 15: Fleet Expansion
FLEET EXPANSION Young, modern and Fuel Efficient Fleet 100 90 80 70 60 50 40 30 20 10 0 2017 2018 2019 2020 A320 A321 737Max8 2017 2018 2019 2020 A320 25 25 22 19 A321 27 41 52 42 737 Max 200 0 0 4 28 Total 52 66 78 89 A321 deliver cost & revenue benefits 15
Slide 16: Vietjet hot air balloon in Albuquerque
In Albuquerque City (New Mexico, United States), Vietjet’s hot air balloon brought the images of beautiful and young girls to Albuquerque International Balloon Fiesta 2017 – the largest balloon festival in the world 15
Slide 17: Safety and Quality activities of the 3Q2017
Safety and Quality activities of the 3Q2017 Successfully complete AOC renew AOC and AMO Certificate in accordance with new VAR ( Vietnam Aviation Regulations). The new AOC certificate is valid until 10 Oct. 2018. Ensure high safety and quality level of operation during summer season including we
Slide 18: VietJet Active Participation at International Forum
VietJet Active Participation at International Forum Vietjet attended GE Aviation's Global Summit 2017 From September 19th to 22nd. The conference helped Vietjet to better define its technology investment strategy and to improve connection and cooperation opportunities between Active participation at
Slide 19: Safety records among AAPA Airlines members
Safety records among AAPA Airlines members Source: The first 06 months of 2017 AAPA report The quality of operation and high operating safety indicator help decrease Vietjet’s insurance cost up to 30% compared to the previous year and now is the best efficient one in the world. 20
Slide 20: 4th Quarter Safety Program Priorities
4th Quater Safety Program Priorities LOSA FDM Cockpit & Cabin IATA IMX Software Strengthening SMS & QA FDM capability with Airbus Safety Safety Action Promotion Fatigue Risk Groups & HIRA Lessons Management learnt from Safety Bulletin other airlines 19
Slide 21: Best In Class Cost Structure With Room For Improvement
Best In Class Cost Structure With Room For Improvement 8.54 6.7 5.84 5.66 5.73 5.67 5.4 5.44 5.69 5.13 5.02 5.02 4.77 4.29 3.91 3.92 4.03 3.66 3.78 3.81 3.13 3.39 2.38 2.36 2.74 2.29 1.62 1.71 1.65 1.68 1.53 1.47 1.5 1.28 1.19 1.24 1.07 1.07 Airasia group Gol Linhas Nok Ryanair Indigo Southwest Cebu
Slide 22: Market Cap of LCCs
Market Cap: Market Cap (Bil USD) of LCCs (24/10/2017) 25.00 22.84 20.00 15.00 10.00 6.64 6.84 5.00 4.40 4.28 2.69 2.16 1.30 1.52 1.56 0.94 0.78 0.13 0.37 - 22
Slide 23: P/E of LCCs
P/E P/E of LCCs (24/10/2017) 40 36.39 35 30.34 30 26.33 25.58 25 20.25 20 16.5 15 15 13.96 13.1 12.09 10.31 10 8.51 6.63 5 0 0 AA Thai AA Nok AAX Indigo Cebu HVN VJC EasyJet RyanAir Wizz Spring Jeju Air Air Air Arabia 23
Slide 24: Boeing CEO visit and Jakarta route opening
President and CEO Boeing Commercial Airplanes Kevin McAllister paid On August 22, inaJakartar working visit at Vietjet (Indonesia), VietjetOffice hold the announcement ceremony to open the route from Ho Chi Minh City to Jakarta (Indonesia) 23
Slide 25: Best Class In Operating Performance
Best Class In Operating Performance TOTAL REVENUE (VND’bil) OPERATING PROFIT (VND’bil) Total Revenue: increased 34.4% from VND 4,570 billion in Q3 2016 to VND 6,142 billion in Q3 2017. 6142 4570 Operating Profit grew up 25.8% 869 1,093 to VND 1,093 billion in Q3 2017 compared to same period in 2016.
Slide 26: Solid Growth In Ancillary
Solid Growth In Ancillary Ancillary revenue per pax: increased 20.7% Ancillary revenue per pax from 12.1 USD/pax in Q3/2016 to 14.6 USD/pax USD/pax in Q3/2017. Total Ancillary revenue as % of Total Operation Revenue increased to 23% in Q3/2017 compare to Q3/2016 14.6 12.1 Q3/2016 Q3/2017 Ancilla
Slide 27: 2017 Looking Forward
2017 Looking Forward Revenue: • Q3 2017: 103.7% KPI • FY 2017 : double-digit increase PBT: • H1 2017: 119.2% KPI • FY 2017: double-digit increase Operational Flights: • H1 2017: 100% KPI • FY 2017: double-digit increase Passengers: • H1 2017: 100% KPI • FY 2017: double-digit increase due to
Slide 28: Definitions And Abbreviations
Definitions And Abbreviations Term Description ASK Available Seat Kilometer CASK Total Cost (excluding cost of aircraft sold) per Available Seat Kilometer. CASK ex-fuel Total Cost (excluding cost of aircraft sold, fuel) per Available Seat Kilometer. RASK Total Revenue (excluding Revenue from sale ai
Slide 29: Thank you
Thank you Thank you Vietjet is proud to be a sponsor of APEC CEO Summit Vietnam 2017 28
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