Air Arabia PJSC · DFM:AIRARABIA
Air Arabia PJSC — Investor Presentation (August 2008)
15 slides from Air Arabia PJSC's investor presentation, August 2008
Slide 1: Air Arabia PJSC Investor Presentation
Air Arabia PJSC Investor Presentation August 2008 August 2008 -1-
Slide 2: 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 assumes no responsibility or liability
Slide 3: Agenda
Agenda Air Arabia at a Glance Financial Highlights August 2008 -3-
Slide 4: Highlights
Highlights Route Network – as of December 2007 A national carrier of the UAE… Established in 2003 by the Government of Sharjah First and largest low-cost airline in the MENA region 5.03 billion RPK(1) 2.5x the number of passengers as its closest LCC rival(1) Current fleet of 15 leased Airbus 320s Ne
Slide 5: Experienced Management Team
Experienced Management Team August 2008 -5-
Slide 6: Drive Growth Through an Aggressive Expansion Plan
Drive Growth Through an Aggressive Expansion Plan Significant Route and Fleet Expansion Planned, Supported by Sharjah Airport Expansion 5 Hour Flying Radius (Sharjah Hub) We currently serve only 41 out of the potential 200 airports within 5-hours flying radius August 2008 -6-
Slide 7: Highly Favorable Home and Regional Market Dynamics
Highly Favorable Home and Regional Market Dynamics Strong Air Traffic Growth Projected in Our Target Regions International Air Traffic Growth by Key Route Area Middle East Passenger Traffic(1) 270 7.1% 6.0% AAGR % 2005A-2010E Passengers in MM 5.3% 5.3% 81 Middle East Routes All International Routes
Slide 8: Highly Profitable Low Cost Carrier Business Model
Highly Profitable Low Cost Carrier Business Model Consistently Achieved the Highest Level of Aircraft Utilization in the A320 Family * 100.0 99.8 99.6 Operational Reliability % 99.4 Avg. A320 99.2 99.0 98.8 98.6 98.4 98.2 98.0 7 8 9 10 11 12 13 14 15 Daily Utilization (Hours) *Data indicated for Q1
Slide 9: Consistent Load Factors and Passenger growth
Consistent Load Factors and Passenger growth No.1 for Load Factor 2007 Company Load Factor (%) Air Arabia 86.0 350,000 100.0% EasyJet 84.6 300,000 80.0% 250,000 Wizz Air 83.0 200,000 60.0% Ryanair 82.0 150,000 40.0% 100,000 Virgin Blue 81.7 20.0% 50,000 Allegiant 81.3 0 0.0% JetBlue Airways 80.7 Se
Slide 10: Passenger and Aircraft Growth
Passenger and Aircraft Growth Number of Destinations Fleet Size 45 41 37 16 15 40 35 32 14 30 12 11 23 10 25 8 20 15 8 15 6 5 10 4 3 5 5 2 0 0 2003 2004 2005 2006 2007 08 Q2 2004 2005 2006 2007 08 Q2 Total Passengers and Load Factor Geographic Distribution Central Asia, 3,000 2,700 100% 79% N. Afric
Slide 11: Historical Financial Performance
Historical Financial Performance Revenues Gross Profit Gross Profit (AED in MM) 1,400 350 318 30.0% 1,225 25.9% R evenues (AED in M M ) 300 25.0% 1,200 % Margin 250 17.4% 20.0% 1,000 871 200 15.8% 14.4% 749 12.5% 130 125 15.0% 800 150 100 65 10.0% 600 411 24 5.0% 50 400 192 0 0.0% 200 2004 2005 2006
Slide 12: Highly Profitable Low Cost Carrier Business Model
Highly Profitable Low Cost Carrier Business Model Revenue/Passenger – H1 2007 Vs. H1 2008 Cost/Passenger – H1 2007 Vs. H1 2008 494 442 332 418 Revenue/Passenger (AED) Cost/Passenger (AED) H1 2007 H1 2008 H1 2007 H1 2008 18% Y-o-Y Growth 33% Y-o-Y Increase Cost/Passenger – Excluding fuel 221 201 9.7%
Slide 13: Operating costs as a percentage of revenue
Operating costs as a percentage of revenue 100.0% 4.6% 90.0% 13.6% 3.7% 3.0% 3.7% 12.5% 2.3% 12.0% 80.0% 14.3% 14.4% 11.9% 11.4% 7.0% 70.0% 9.1% 8.9% 11.4% 11.0% 60.0% 10.9% 9.9% 11.0% 50.0% 14.4% 11.0% 13.5% 13.9% 11.8% 40.0% 30.0% 28.5% 32.4% 43.0% 31.2% 31.7% 20.0% 10.0% 6.5% 5.1% 4.2% 2.9% 7.6%
Slide 14: Track Record of Profitable Expansion
Drive Growth Through an Aggressive Expansion Plan Track Record of Profitable Expansion # of Destinations vs. Net Profit Margin Breakeven Load Factor vs.*Actual Load Factor Net profit margin (%) 50 30.0% 100% 41 40 35 26.0% 25.0% 80% 86% 86% Destinations 77% 79% 80% 77% 27 20.0% 60% 73% 30 17.0% 67%
Slide 15: Operating Statistics
Operating Statistics 2004 2005 2006 2007 H1 08 # of Aircrafts 3 5 8 11 15 Average Aircrafts 3.0 4.9 6.0 9.5 14 Destinations 15 23 32 37 41 # of Passengers (Millions) 0.6 1.1 1.7 2.7 1.6 RPK (Billions) 1.2 2.5 3.7 5.0 3.2 ASK (Billions) 1.8 3.2 4.7 5.8 3.6 Average Load Factor 68.0% 79.0% 80.0% 86.0%
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