Qantas Airways Limited · ASX:QAN
Qantas Airways — Macquarie Conference 2011
18 slides from Qantas Airways's conference presentation, May 6, 2011
Slide 1: Building Long Term Shareholder Value
Building Long Term Shareholder Value Gareth Evans, CFO Macquarie Conference 6 May 2011
Slide 2: Sustainable Returns to Shareholders
Sustainable Returns to Shareholders Leverage dual brands to International Grow Drive growth build on business portfolio in Asia competitive transformation businesses advantage Continued investment in operations 2
Slide 3: Two distinct yet complementary brands
Two distinct yet complementary brands Customer Premium Price sensitive Premium service, Simple, Product All inclusive Unbundled Sales & Breadth of Direct focus, Distribution distribution Simple fares Network, Scheduling & Market driven Supply driven Fleet 3
Slide 4: Domestic market – two most profitable airlines
Domestic market – two most profitable airlines Qantas Jetstar “Best for Business” “Low fares leader” • World class lounges • Simple yet high-quality product Product • Exclusive Chairman’s lounge • Unbundled fare structure • Faster check-in – less queuing • Market leader in ancillary revenue • Unriva
Slide 5: Sustainable Returns to Shareholders
Sustainable Returns to Shareholders Leverage dual brands to International Grow Drive growth build on business portfolio in Asia competitive transformation businesses advantage Continued investment in operations 5
Slide 6: International business
International business • Enhancing value proposition for key customer segments • Investing in product across both brands • Network enhancements – right aircraft, right route • Leveraging Jetstar in leisure markets • Deepening alliances and partnerships • Continuing QFuture transformation agenda • Qa
Slide 7: Sustainable Returns to Shareholders
Sustainable Returns to Shareholders Leverage dual brands to International Grow Drive growth build on business portfolio in Asia competitive transformation businesses advantage Continued investment in operations 7
Slide 8: Adding value to the Group
Adding value to the Group Strength of portfolio model Qantas Qantas Jetset Frequent Flyer Freight Travelworld Building the world’s Optimising core Creating one of best loyalty business Freight assets Australia’s largest travel businesses 8
Slide 9: Qantas Frequent Flyer strategic objectives
Qantas Frequent Flyer strategic objectives Building the world’s best loyalty business Growth Growth from new from existing business business Share of Member Member New Leverage consumer behaviour wallet retention acquisition partners 9
Slide 10: Building shareholder value
Building shareholder value Positive Working Capital ($M) EBIT ($M) (Deferred Revenue Balance) 77 342* 161 1879 98* 1840 82 1450 167 1300 128 149 107 = Accounting adjustment FY08 FY09 FY10 1H FY11 FY08 FY09 FY10 1H FY11 Unique and powerful loyalty coalition Partners Member Numbers Billings ($M) Rewar
Slide 11: Develop the coalition
Growth into New Market Segments - 500+ Partners 4. Develop the coalition 11
Slide 12: Sustainable Returns to Shareholders
Sustainable Returns to Shareholders Leverage dual brands to International Grow Drive growth build on business portfolio in Asia competitive transformation businesses advantage Continued investment in operations 12
Slide 13: Capitalising on growth in Asia
Capitalising on growth in Asia The world’s largest and fastest growing aviation market Low Cost Carrier Share of Total Capacity LCC Growth Rate by Region/Country % total seat capacity provided by LCCs Australia Europe 31.8% UK Europe United States US 3.2% Global Asia Pacific Asia 49.5% Pacific Note:
Slide 14: Jetstar already established in Asia
Jetstar already established in Asia • Largest LCC in Asia Pacific by gross revenue • Largest carrier between Australia and Japan • Jetstar has announced significant expansion – Singapore hub – Australia domestic – New Zealand – Japan • Future growth focused on – Intra-Asia – New Jetstar affiliates 1
Slide 15: Strong foundations for growth – proven model
Strong foundations for growth – proven model 40,000 Jetstar Group Capacity Growth • Proven business model – Lowest cost position Available Seat Kilometre 30,000 – Market leadership in ancillary revenue 20,000 – Strong brand and 10,000 customer perception 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11e •
Slide 16: Sustainable Returns to Shareholders
Sustainable Returns to Shareholders Leverage dual brands to International Grow Drive growth build on business portfolio in Asia competitive transformation businesses advantage Continued investment in operations 16
Slide 17: Continued fleet modernisation
Continued fleet modernisation Total number of aircraft 2005 2011 20181 (as at Dec10) A380 - 7 20 B747 36 26 9 A330 20 11 18 B767 24 26 - B737 59 62 74 B737-800 27 41 74 B737-400 21 21 - B737-300 11 - - A330 - 8 - B787 - - 15 A320 9 56 c100 B787 Allocation based on return measures - - 35 1 Indicative
Slide 18: Summary
Summary • 1st and 2nd most profitable airlines in the domestic market • Growing and optimising portfolio businesses • Enhancing unique and powerful loyalty coalition in Qantas Frequent Flyer • Jetstar well positioned in Asia – capitalising on growth opportunities • International business transformat