Interglobe Aviation Ltd · NSE:INDIGO

Interglobe Aviation — Investor Presentation (February 2019)

30 slides from Interglobe Aviation's investor presentation, Feb 12, 2019

  1. Slide 1: Regulation 30 disclosure cover letter

    February 12, 2019 IGAVSECT/02-19/01 To, To, The Managing Director, The General Manager, National Stock Exchange of India Limited, Department of Corporate Services, Exchange Plaza, C - 1, Block G, BSE limited, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra - (E), Mumbai - 400 051 Dalal Stree

  2. Slide 2: Company Presentation February 2019

    Company Presentation February 2019

  3. Slide 3: Disclaimer

    Disclaimer The information contained in this presentation is provided by InterGlobe Aviation Limited (the “Company”) to you solely for your reference. This document is being given solely for your information and for your use and may not be retained by you and neither this presentation nor any part t

  4. Slide 4: Key Strengths / Opportunities Ahead

    Key Strengths Opportunities Ahead

  5. Slide 5: Key Strengths

    Key Strengths

  6. Slide 6: IndiGo is built on four strong fundamentals for success

    IndiGo is built on four strong fundamentals for success • Visionary Founders • High growth Indian market • Strong executive team • Engaged, motivated front-line staff People & Leadership Geography Network Cost Strength Advantage • 52 domestic destinations, 15 & Simple • One of the Lowest CASK intern

  7. Slide 7: Visionary promoters, experienced management and motivated employees behind IndiGo's success

    Visionary promoters, experienced management and motivated employees behind IndiGo’s success Visionary Founders Rahul Bhatia Rakesh Gangwal Promoter and Director Promoter and Director  Skilled entrepreneur, who first spotted the opportunity  Clear vision of a successful business model  Influential

  8. Slide 8: Indian market is underpenetrated with huge potential of growth

    Indian market is underpenetrated with huge potential of growth Low air travel penetration #3 largest aviation market(1,2) in Domestic Seats per Capita(1) the world 3.00 2.76 2.50 One of the Fastest growing 2.00 aviation markets globally 1.50 Strong GDP CAGR(3) of 7.1% 1.04 1.00 0.66 (2012-17) 0.49 0

  9. Slide 9: In this market, IndiGo stands out

    In this market, IndiGo stands out IndiGo’s Business Model is a Clear Winner Market Share Based on Number of Domestic Passengers 42.2% 28.2% 28.1% 15.0% Jet 15.1% Airways(2) 12.2% SpiceJet 12.5% 11.1% Air India (3) 10.4% 2.8% 8.9% GoAir 6.7% Others(4) 2.9% 3.8% Vistara 0.0% 0.0% Kingfisher(1) FY2009

  10. Slide 10: Strong presence in top metros and non metro markets

    …and has developed a strong presence in top metros and non metro markets Top 6 Metro 6E Daily Departure Position Cities share* DEL 31% 1 BOM 29% 2 BLR 46% 1 DEL HYD 51% 1 JAI GAU MAA 48% 1 CCU 50% 1 AMD CCU Top 6 Non- 6E Daily Departure Position Metro Cities share* BOM PNQ HYD AMD 39% 1 GOI 38% 1 GO

  11. Slide 11: We provide an unbundled, simple and well executed product

    We provide an unbundled, simple and well executed product Unbundled product allows customers to pay for their preferences On Time Low Fares Simple and easy to understand Well executed through operational Courteous, excellence Hassle-Free Service 9

  12. Slide 12: One of the Lowest Cost Carriers Globally

    And are one of the Lowest Cost Carriers Globally CASK ex Fuel(1,2,3) (US¢/ASK) 6.71 Asia 5.98 EMEA Americas 5.49 4.95 4.98 5.04 4.63 4.42 3.91 3.64 3.58 2.77 2.83 3.08 2.86 2.39 2.51 2.35 Indian Carrier Indian Carrier Indian Carrier Indian Carrier AirAsia Cebu Spice Jet Wizz Spirit Air India(4) Ryan

  13. Slide 13: IndiGo has achieved several milestones as it scaled up

    IndiGo has achieved several milestones as it scaled up 200+ Aircraft operated 67 Destinations served 1,300+ Daily departures 100+ Daily departures from each metro airport# 22,000+ Motivated employees 1,500+ Different city pairs connected via convenient direct or one stop service Information as of 11

  14. Slide 14: Looking back…IndiGo has seen phenomenal success

    Looking back…IndiGo has seen phenomenal success Strong vision & Cost leadership leadership in Industry(1) Executed through a powerful fleet Employee engagement has been plan key Source: (1) Study done by SAP in 2017 12

  15. Slide 15: Opportunities Ahead

    Opportunities Ahead

  16. Slide 16: Opportunities Ahead: Improve Revenue Performance

    Opportunities Ahead 1 Improve Revenue Performance 2 Communicate our Brand and Improve Processes 3 Maintain and Strengthen Cost Position 14

  17. Slide 17: Revenue focus is critical as we scale up

    Revenue focus is critical as we scale up 1 Improve Revenue Performance I. International III. Cargo and Ancillary II. Domestic Network Expansion Growth 15

  18. Slide 18: Leveraging "4 corners" strategy for international performance

    I. Leveraging “4 corners” strategy to derive international performance improvement “4 Corners” strategy Point to Point strategy • Lower operating cost • Duplicates operating cost • Higher revenue performance • Relies on single city presence • Opportunity to increase frequency Illustrative Example DE

  19. Slide 19: International sales strategy for revenue growth

    I. International point-of-sales (POS) performance  Build a robust sales and distribution network for the international market International sales  Continue to engage with existing and new strategy for international OTAs revenue growth  Create a strong SME/Corporate product 17

  20. Slide 20: We have built a strong domestic foundation

    II. We have built a strong domestic foundation… Metro routes Tier II and Tier III cities  Connected metro airports in the  Connected metro airports with Tier first phase of growth II and Tier III cities in the second phase of growth  Built a high frequency aviation network  Strong demand for air

  21. Slide 21: Looking to capitalize on this foundation to grow further

    II. …And now looking to capitalize on this foundation to grow further Illustrative Example Southern India PNQ VTZ We will be connecting Tier 2 and Tier GOI 3 cities in the next phase of growth HYD  Supplement the existing domestic network BLR MAA IXZ IXE with more connectivity between Tier 2 and Ti

  22. Slide 22: Cargo and ancillary business offers upside opportunity

    III. Cargo and ancillary business offers upside opportunity Ancillary Revenue* 400 9.0% 8.5% 350 8.0%  Ancillary revenue below global 300 7.5% 250 7.0% levels 200 6.5% 6.0%  Continue unbundling products and 150 5.5% 100 5.0% provide more value-added services Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19

  23. Slide 23: Opportunities Ahead: Communicate our Brand and Improve Processes

    Opportunities Ahead 1 Improve Revenue Performance 2 Communicate our Brand and Improve Processes 3 Maintain and Strengthen Cost Position 21

  24. Slide 24: Communicate what we stand for

    Communicate what we stand for …we do not believe in cross-subsidizing customer groups Group A: Group B: Low fares, no frills Higher fares, want frills IndiGo philosophy and Don’t want meals Want meals IndiGo promise Group A customers should not be cross Don’t care where Want the first aisle they sit

  25. Slide 25: Basic promises we make and keep for all customers

    But there are basic promises we make and keep for all customers On-time performance Clean, comfortable environment Efficient processes Courtesy 23

  26. Slide 26: Continuously improve our standard processes for better customer experience

    And look at ways to continuously improve our standard processes for better customer experience How do we schedule? How do we do crew pairings? How do we check-in customers? How do we manage unaccompanied minors? How do we deal with lost baggage? 24

  27. Slide 27: Opportunities Ahead: Maintain and Strengthen Cost Position

    Opportunities Ahead 1 Improve Revenue Performance 2 Communicate our Brand and Improve Processes 3 Maintain and Strengthen Cost Position 25

  28. Slide 28: Fleet mix and operational efficiency to improve cost structure

    Fleet mix and operational efficiency to further improve our cost structure Fleet Mix  Additional fuel efficiency through A320neos  A321neos will have additional seats compared to A320s Operational Efficiency  Ongoing initiatives will enhance operational efficiencies 26

  29. Slide 29: Focused on building a large and profitable air transportation network

    Focused on building a large and profitable air transportation network Uniquely positioned in one of the fastest growing aviation markets Visionary promoters, experienced management and motivated employees Opportunity for further revenue upside by optimizing international and domestic operations One

  30. Slide 30: Thank You

    Thank You

InterGlobe Aviation — Investor Presentation (February 2019) on 6ix