Air New Zealand Limited · NZX:AIR
Air New Zealand — Non-Deal Roadshow (September 2007)
17 slides from Air New Zealand's roadshow presentation, Sep 12, 2007
Slide 1: Air New Zealand Investor Roadshow September 2007
For personal use only AIR NEW ZEALAND INVESTOR ROADSHOW September 2007 1
Slide 2: Financial overview
Financial overview For personal use only Profit before unusuals and tax $m Operating revenue $300m $268m 5,000 4,500 $4,297m $243m $235m $250m $3,805m $220m 4,000 $3,617m $3,616m $3,498m $200m 3,500 $150m 3,000 $150m 2,500 2,000 $100m 1,500 1,000 $50m 500 0 0 2003 2004 2005 2006 2007 2003 2004 2005
Slide 3: Key influences on profitability
Key influences on profitability For personal use only 3
Slide 4: Group operating performance
Group operating performance For personal use only Year-on-Year Load Factor & Year-to-Date Yield Movements 4
Slide 5: Labour productivity
Labour productivity For personal use only Labour Cost per 100 ASK's $2.60 $2.53 $2.52 $2.52 $2.50 $2.50 $2.40 $2.30 $2.20 $2.10 $2.00 2004 2005 2006 2007 5
Slide 6: Continuous improvement
Continuous improvement For personal use only Online sales • Business transformation initiatives provided further productivity, efficiency $1,200 $1,085m and cost benefits of $128 million in 2007 $1,000 $839m • $324 million of annualised BT benefits $ 800 have been delivered, against a target of $587
Slide 7: Capital expenditure
For personal use only 7 Capital expenditure
Slide 8: IFRS opening position
IFRS opening position For personal use only 8
Slide 9: Hedging Profile
Hedging Profile For personal use only FY08 FY08 FY09 1st Half 2nd Half 1st Half WTI Swaps (USD) 58.06 - - WTI Collars Ceiling Price (USD) 71.58 68.60 70.44 Floor Price (USD) 62.57 60.36 61.12 Total Hedged (barrels ‘000) 3,365 2,830 590 Estimated Fuel Consumption (barrels ‘000) 4,015 4,069 4,157 Hedg
Slide 10: Retaining flexibility
Retaining flexibility For personal use only • NZ has ample flexibility to either increase or decrease capacity to meet future demand 12,000 Base Plan 10,000 5% P.A. Fleet reduction Million ASK 8,000 High Growth 6,000 -5% P.A. 5% Demand reduction 4,000 5% Demand growth 2,000 0 2007 2008 2009 2010 201
Slide 11: Strategic imperatives
Strategic imperatives For personal use only • No.1 in chosen markets • Optimised portfolio of capacity and routes • Strong relationships and alliances to maximise reach • Business simplification • Sustainable margins consistently in the top quartile of the airline industry 11
Slide 12: Focus for the coming year
Focus for the coming year For personal use only Refreshing the Protecting our short-haul environment experience 2008 Growing the Progressing the customer long-haul relationship 12
Slide 13: Refreshing the short-haul experience
Refreshing the short-haul experience For personal use only • The Freedom Air brand to be discontinued, replaced by a revised schedule of full service Air NZ services • Two additional Boeing 737-300 aircraft and the completion of the Q300 investment programme • Focus will move to improving our produc
Slide 14: Progressing the long-haul
Progressing the long-haul For personal use only • The long-haul network experienced strong growth in 2007, with 7.4% growth in passengers carried • Results of the Business Premier and Pacific Premium Economy products pleasing • Work has begun on the next generation of long-haul product, to be delive
Slide 15: Growing the customer relationship
Growing the customer relationship For personal use only • Our frequent flyer programme will undergo some changes, with further segmentation of status • We will look to grow the value of our loyalty programme by broadening its reach • Further developments online as we put the customer back in full co
Slide 16: Protecting our environment
Protecting our environment For personal use only • Over the past decade, our fleet has reduced fuel burn per passenger kilometre by 9.1% • Our aircraft choice reflect our environmental consciousness – with concentration on fuel efficient twin engine long haul aircraft • Air NZ actively seeks to assi
Slide 17: Summary
Summary For personal use only • Robust revenue environment and excellent product • Productivity improvements continue to accrue • Leading market share in chosen markets • Strong balance sheet • Modest capital commitments over the next 2 years • Excellent free cash flow 17