Syn Prop e Tech SA · BMFBOVESPA:SYNE3
Syn Prop e Tech SA — Azul — Q3 2019 Earnings Presentation
12 slides from Syn Prop e Tech SA's earnings presentation, Nov 7, 2019
Slide 1: 3Q19 Earnings Results
3Q19 Earnings Results November 7th, 2019
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is only a summary and does not purport to be complete. This presentation has been prepared solely for informational purposes and should not be construed as financial, legal, tax, accounting, investment or other advice or a recommendation with
Slide 3: Key Accomplishments
KEY ACCOMPLISHMENTS 85% ASK Net Revenue EBITDA (R$ M) (R$ M) (R$ M) 54% 102% 72% 35.2 3.6 11.4 22.9 6.7 1.8 Pre-IPO 2019E Pre-IPO 2019 Pre-IPO 2019 Consensus Consensus 3Q19 Highlights • Record revenue and EBITDA • Delivery of first E-195 E2 • Solid balance sheet and strong • Awarded best airline, be
Slide 4: Growing the Business and Expanding Margins
GROWING THE BUSINESS AND EXPANDING MARGINS Operating Margin Growth Breakdown Next-Generation Business Non-ticket Macro Aircraft Units Revenue Environment 45% 40% 50% 0% Pre-IPO 2020 Additional upside for equity story coming from e-commerce and TAP investment
Slide 5: Unparalleled Network Connectivity
UNPARALLELED NETWORK CONNECTIVITY 114 910 destinations served daily flights (104 domestic + 10 international) 237 84% routes routes leadership position
Slide 6: 3Q19 Financial Highlights
RASK SLA* CASK Operating Margin (R$ cents) (R$ cents) +1.7% -4.0% 3Q19 FINANCIAL 17.6% 18.5% 31.7 32.3 25.8 25.4 24.8 HIGHLIGHTS 3Q18 3Q19 3Q18 3Q19 3Q18 3Q19 3Q19 ex payroll • Net revenue growth of 25% YoY with a 0.8 p.p. increase in operating margin • EBITDA of R$935.8 million, up 24.4% YoY • Oper
Slide 7: Azul Cargo and TudoAzul Growth
AZUL CARGO AND TUDOAZUL GROWTH • Cargo revenue up 42% YoY • Gross billings up 40% YoY • Increase in volume share from 12% to 22% YoY • Wholly-owned loyalty program TudoAzul with • Partnership with Mercado Libre ~12 million members • E-Commerce represented 19% of cargo revenue • Fourth consecutive ye
Slide 8: Strong Liquidity Position
Strong Liquidity Position Cash Balance Net Debt3/EBITDA (R$ million) 41% of TTM Accounts receivables 3.0 adjusting revenue Cash¹ for new 3.3 3.3 leases2 4,367 3.1 4,118 1,424 1,341 2,777 2,943 3Q18 3Q19 3Q18 2Q19 3Q19
Slide 9: Free Cash Flow Generation
Free Cash Flow (R$ million) 951 279 672 FREE CASH FLOW 484 GENERATION 187 Cash flow from Net CAPEX FCF Aircraft Rent Adj FCF operations Payment
Slide 10: Investing in the Future
INVESTING IN THE FUTURE • Fleet transformation on track: - Added five new aircraft in 3Q9 - Additional 12 expected in 4Q19 - First A321neo to be delivered in 4Q19 - Signed MOU to sublease up to 32 E1s • Construction of new hangar to be completed by December • Commercial JV with TAP submitted for sha
Slide 11: FY 2019 Outlook
FY 2019 OUTLOOK Previous Current ASK growth 20% to 22% ~20% Domestic 23% to 25% ~23% International 10% to 15% ~12% CASK 0% to 2% ~ -0.5% Cask excluding non-recurrent items ~1.5% Operating Margin excluding non-recurrent items 18% to 20% ~18%
Slide 12: Investor Relations
I N V E S T O R R E L AT I O N S +55 11 4831 2880 invest@voeazul.com.br