Air Arabia Pjsc · DFM:AIRARABIA
Air Arabia Pjsc — Air Arabia — 9M 2019 Earnings Presentation
28 slides from Air Arabia Pjsc's earnings presentation, 2019
Slide 1: Results Presentation Q3/9M 2019
RESULTS PRESENTATION Q3/9M 2019
Slide 2: Q3/9M in Focus
Q3/9M IN FOCUS
Slide 3: Strategic Summary – Q3/9M 2019
STRATEGIC SUMMARY – Q3/9M 2019 Air Arabia ▪ 9M performance exceeded market expectations. ▪ Busy Q3 summer period contributed to record YTD financial performance. ▪ 9M financial results were supported by strong cost control measures, improvement in yield margins and higher customer demand. ▪ Closing
Slide 4: Strategic Summary – 9M 2019
STRATEGIC SUMMARY – 9M 2019 Economy ▪ Overall MENA economy growth is expected to continue with modest pace of 1.5 to 3%. ▪ Geo-political tensions in the Middle East region escalated in Q3, adding more pressure on selective markets. ▪ A tougher trading environment in the Eurozone continued driven by
Slide 5: Financial Review 9M / Q3
FINANCIAL REVIEW 9M / Q3
Slide 6: Key Performance – Q3 2019
KEY PERFORMANCE – Q3 2019 (AED Millions) 2019 2018 Change % Pax (m) 2.58 2.44 0.14 6% LF % 82% 81% 1% 1% Revenue (m) 1,438 1,282 156 12% Operating Profit 410 325 85 26% Operating Profit Margin % 28.5% 25.4% 3.2% Net Profit 471 300 171 57% * Pax (m) all hubs 3.4 3.1 0.3 10%
Slide 7: Key Performance – 9M 2019
KEY PERFORMANCE – 9M 2019 (AED Millions) 2019 2018 Change % Pax (m) 7.13 6.57 0.56 9% LF % 83% 80% 3% 4% Revenue (m) 3,611 3,098 513 17% Operating Profit 742 537 205 38% Operating Profit Margin % 20.5% 17.3% 3.2% Net Profit 809 530 279 53% * Pax (m) all hubs 9.25 8.31 0.94 11%
Slide 8: Balance Sheet – 9M 2019
BALANCE SHEET – 9M 2019 (AED Millions) Q3 2019 YE 2018 Change % Assets Non Current Assets 8,846 8,952 -106 -1% Current Assets 3,290 2,466 824 33% Total Assets 12,136 11,418 718 6% Liabilities & Equity Non Current Liabilities 4,386 4,645 -259 -6% Current Liabilities 2,585 2,187 398 18% Total Liabilit
Slide 9: Strong Cash Generation
STRONG CASH GENERATION 3,000,000 2,500,000 Amount in AED'000 2,000,000 Cash & Bank 1,500,000 1,000,000 500,000 - 2016 2017 2018 Q1-19 Q2-19 Q3-19 800,000 600,000 400,000 Amount in AED'000 200,000 Retained Earnings - (200,000) (400,000) (600,000) (800,000) 2016 2017 2018 Q1-19 Q2-19 Q3-19 *Retained E
Slide 10: Impact of Fuel
IMPACT OF FUEL ▪ Fuel price volatility continues as third 61 quarter prices witnessed 23% movement. 60 59 ▪ IMF contributes price volatility against a ICE Brent, US$/BBL backdrop of slowing global growth trade, 58 trade tensions and geopolitical risks 57 including. 56 ▪ Air Arabia fuel hedging statu
Slide 11: Business Updates 9M / Q3
BUSINESS UPDATES 9M / Q3
Slide 12: 9M Business & Commercial Updates
9M BUSINESS & COMMERCIAL UPDATES ▪ 12 new routes were launched between January-September as follows: ≥ Casablanca to Lisbon, Pisa, Prague and Tunis. ≥ Tangier to Lyon. ≥ Sharm El Sheikh to Milan, Amman and Napoli. ≥ Sohag to Riyadh. ≥ Sharjah to Kuala Lumpur, Bishkek, Tunis and Vienna. ▪ Capacity gr
Slide 13: YTD Business & Commercial Updates
YTD BUSINESS & COMMERCIAL UPDATES ▪ Possible new aircraft order to take place 4Q19/1Q20 (est). ▪ In October, an agreement was signed with Etihad Aviation Group to launch “Air Arabia Abu Dhabi”, the capital’s first low-cost carrier. More details the new hub will be communicated soon. ▪ Following rebr
Slide 14: Fleet Status YTD 2019
FLEET STATUS YTD 2019
Slide 15: Current Fleet
CURRENT FLEET Airbus A320 ceo Airbus A321 neo LR 55 Aircraft in service 3 Aircraft in service 41 Sharjah Hub 3 more expected in 2020 10 Morocco Hub 04 Egypt Hub
Slide 16: Fleet Utilization
FLEET UTILIZATION Block hours Average weekly utilization
Slide 17: Outlook 4Q 2019
OUTLOOK 4Q 2019
Slide 18: Outlook – 4Q 2019
OUTLOOK – 4Q 2019 ▪ A busy holiday season is expected this December. ▪ Work is undergoing in Q4 for the new “Air Arabia Abu Dhabi” operations that will cater to the growing low-cost travel market segment in the region. ▪ The current economic and trading conditions impacting the aviation industry aro
Slide 19: Appendix
APPENDIX
Slide 20: Over 170 routes in 50 countries
Over 170 routes in 50 countries
Slide 21: Fleet Size Historical Yearly
FLEET SIZE HISTORICAL YEARLY 60 55 50 53 50 46 40 41 39 33 34 30 29 25 20 21 16 10 11 8 5 0 2 3 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 - 9M
Slide 22: Seat Load Factor Historical Yearly
SEAT LOAD FACTOR HISTORICAL YEARLY 100 80 86 85 83 82 82 82 81 83 80 80 80 80 79 79 60 40 20 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 - 9M
Slide 23: Revenue Historical Yearly
REVENUE HISTORICAL YEARLY IN (AED MM) 5,000 4,000 4,122 3,729 3,825 3,778 3,739 3,611 3,000 3,183 2,832 2,434 2,000 2,066 1,972 2,080 1,000 1,283 749 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 - 9M
Slide 24: Net Profit Historical Yearly
NET PROFIT HISTORICAL YEARLY IN (AED MM) 900 800 809 700 600 662 566 579 500 530 510 509 400 452 435 424 300 369 310 274 200 100 101 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 - 9M *307 *2018 reported net profit absorbed AED307 million accumulated loss following the impa
Slide 25: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Air Arabia’s award winning corporate social responsibility program “Charity Cloud’ provides sustainable education and healthcare initiatives in underprivileged communities across the world. Charity Cloud built and operates over 15 schools and clinics in 12 countries a
Slide 26: Air Arabia Group Companies
AIR ARABIA GROUP COMPANIES AirArabia AirArabia > cozmo travel Engineering Simulator Sons —> ¥ Aipha Bs a | S A Sharjah Avia’ CENTRE = Radisson ty aa Sharjah ay iA c0bic
Slide 27: Contact Us
CONTACT US investor-relations.airarabia.com +971 6 5088791 investorrelations@airarabia.com www.airarabia.com
Slide 28: Disclaimer
DISCLAIMER Information contained in this presentation 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 advisors make any representation regarding, and assume no responsibility or liability f