Qantas Airways Limited · ASX:QAN
Qantas Airways — UBS Australasian Conference 2015
14 slides from Qantas Airways's conference presentation, Nov 17, 2015
Slide 1: Driving Sustainable Growth
Driving Sustainable Growth Alan Joyce Qantas Group CEO UBS Australasian Conference 17 November 2015
Slide 2: Driving Sustainable Growth
Driving Sustainable Growth • An integrated Group portfolio for competitive advantage • Optimal capital structure for growth & shareholder returns • Embedding a culture of transformation beyond FY17 • Building on leading domestic position through dual brands • A flexible, cost-efficient approach to g
Slide 3: An integrated Group portfolio for competitive advantage
An integrated Group portfolio for competitive advantage Qantas Domestic FY15 Operating Segment EBIT4 • Leading market position, highest margin carrier in stable domestic market Qantas International Qantas • Reshaped network & cost base, leveraging utilisation and partnerships for growth Internationa
Slide 4: Optimal capital structure for growth and shareholder returns
Optimal capital structure for growth and shareholder returns Maintaining an Disciplined Capital Optimal Capital Structure Allocation • Minimal refinancing risk • Reinvestment • Diverse funding profile – High hurdles applied to growth • No financial covenants – Maintain competitive advantages • Short
Slide 5: Embedding a culture of transformation beyond FY17
Embedding a culture of transformation beyond FY17 Qantas Transformation outcomes by FY17: $2b Transformation Pipeline • Group ex-fuel expenditure reduced by 10%1 Development • Qantas Domestic cost gap2 to competitor closed to within 5% phase $>300m • Qantas International unit cost comparable to key
Slide 6: Building on leading domestic position through dual brands
Building on leading domestic position through dual brands • Qantas Group generating >80% domestic market EBIT from Domestic Market Passenger Growth ~63% capacity share1 (6 consecutive years through FY15)2 Resources slow • Positive long-term outlook in domestic market CAGR3 +3.4% down FY07 - FY144 –
Slide 7: A flexible, cost-efficient approach to growth
A flexible, cost-efficient approach to growth • Increased Group fleet utilisation funding capacity additions – Ongoing unit cost1 reduction from working existing fleet harder – Fixed portion of cost base does not rise with increased utilisation • Jetstar International growth from transition to all-B
Slide 8: Aligning international network with demand growth: Qantas
Aligning international network with demand growth: Qantas Optimising US network in joint venture partnership with American Airlines (AA) • QF SYD-SFO1 (6 x per week) commencing December 2015 Total Australia to • QF SYD-DFW 2 increased to daily A380 service from April 2016 US seat capacity growth rev
Slide 9: Aligning international network with demand growth: Jetstar
Aligning international network with demand growth: Jetstar Building Jetstar Group strength to and within Asia • LCC leadership between Australia and Japan, Bali, key leisure destinations – Growing into capacity increase – ~80% long haul capacity out of Australia deployed to Asia • B787-8 providing i
Slide 10: Strengthening partnerships in key international markets
Strengthening partnerships in key international markets 3 CORNERSTONE ALLIANCES CEMENTING QANTAS’ LONG-TERM POSITION IN US, EUROPE & CHINA • Qantas International & Qantas Domestic ROIC being strengthened by airline partners • Code share uplifts on all partners up +68% on FY131 – Code share uplifts o
Slide 11: Inbound tourism increasing with lower AUD
Inbound tourism increasing with lower AUD Inbound tourism increasing, led by Asia, with lower AUD • Foreign tourist arrivals forecast to increase 5.9% in FY16, 5.6% in FY171 • US visitor arrivals +8.2% average growth rate per annum FY13 to FY152 • China inbound arrivals +19.7% in September 20153 • C
Slide 12: Leveraging digital & data opportunities for break-out growth
Leveraging digital & data opportunities for break-out growth UNMATCHED ASSETS & CAPABILITIES AIRLINE & LOYALTY GROWTH OPPORTUNITIES • 50m passengers annually across Group Increasing airline segment revenue: • 11m QFF1 members • Network enhancement from customer segmentation • 28 years of historical
Slide 13: Questions?
Questions? Noawras
Slide 14: Disclaimer & ASIC Guidance
Disclaimer & ASIC Guidance This Presentation has been prepared by Qantas Airways Limited (ABN 16 009 661 901) (Qantas). Summary information This Presentation contains summary information about Qantas and its subsidiaries (Qantas Group) and their activities current as at 30 June 2015, unless otherwis