Vietjet Aviation Joint Stock Company · HOSE:VJC

Vietjet Aviation Joint Stock — H1 2017 Earnings Presentation

32 slides from Vietjet Aviation Joint Stock's earnings presentation, August 2017

  1. Slide 1: Key Highlights – 1H/2017 Business result

    Vietjet Aviation Joint Stock Company Key Highlights – 1H/2017 Business result Aug 2017

  2. Slide 2: Disclaimer

    Disclaimer INFORMATION CONTAINED IN OUR PRESENTATION IS INTENDED SOLELY FOR YOUR REFERENCE. SUCH INFORMATION 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 ADVISOR MAKES ANY REPRESENTATION

  3. Slide 3: Key Highlights

    Key Highlights  Carried 8.27 m passengers in H1 2017, an increase of 22.4% vs H1 2016.  Capacity in H1 2017 is 9,43 m seat flow an increase of 22 % vs H12016  Vietjet opened 1 new domestic route and 12 international routes in H1 2017  Fuel price increased 22.2% vs H1 2016 from 67.5USD/barrel to

  4. Slide 4: Key Highlights (CONT.)

    Key Highlights (CONT.)  In H1 2017, Vietjet paid 10% cash dividend (in a total of 119% dividend of 2016) and 20% cash dividend (FY2017)  Vietjet will pay 40% stock dividend in 3Q of 2017 (FY 2017)  Vietjet was granted Full Membership by IATA on 18 Feb 2017, following the award of IOSA certificate

  5. Slide 5: Key Performance Indicator

    Key Performance Indicator 1H2017 1H2016 Change * Total cost exclude finance expense 5

  6. Slide 6: Operating Statistics

    Operating Statistics TOTAL ROUTES OPERATED  Modern and young fleet with average age of 3.12 years comprising 30 Airbus A320s and 15 A321s as of 30 June 2017. 53 73  Up to 30 June 2017, VJC has total 219 aircraft on order with Airbus and Boeing in which the company received 27 aircraft.  Pax Carri

  7. Slide 7: Passenger Growth To More Than 40 M Passenger Per Annum

    Passenger Growth To More Than 40 M Passenger Per Annum Total Passengers (‘000 pax) 50,000 45,000 43,000 39,000 40,000 36,000 34,000 35,000 30,000 30,000 25,000 25,000 20,000 17000 15,000 14,051 9,313 10,000 5,562 5,000 3,156 - 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 7

  8. Slide 8: Flight network extension

    Flight network extension CHINA. CHENGDU — Poy * HONGKONG \\ MYANMAR \ / YANGOON 'e@ VaR 4 ‘ (includes 3B dois stic routes & 35 international routes) grew/by 20 io routes, over the same period last year —

  9. Slide 9: Hochiminh City - Tainan route welcomed

    On 22nd June 2016, together with an impressive performance on the airplane, the Hochiminh City - Tainan route of Vietjet was warmly welcomed by people, leaders of Tainan city and tourists. 8 9

  10. Slide 10: Products - Services

    Products - Services The ticket price is always kept reasonably and economically. Vietjet pioneered in launching the kiosk check-in, web check-in, mobile check-in system, which creates favorable conditions for customers. Sky Shop & Jet Cafe continues supplying seasonal hot and fresh meals and new pro

  11. Slide 11: Products - Services

    Products - Services Vietjet SkyBoss waiting room at Tan Son Nhat Airport had been upgraded and opened on July 2017. The luxurious, convenient and modern ones. 11

  12. Slide 12: Products - Services

    Products - Services Vietjet has just set up a series of check-in kiosks, pioneered in automation, technology application on business. New check-in kiosks were invested in June, 2017 at Tan Son Nhat International Airport (HCMC) 12

  13. Slide 13: Products - Services

    Products - Services The check-in lobby area and waiting room for VJ have just completed expansion, increased check-in booths by 30% and the number of security screening machines by 3, rose the capability of customer services, met the developing plan of VJ. 13

  14. Slide 14: Typical events of the 1H 2017

    Typical events of the 1H 2017  In the first 6 months of 2017, Vietjet had welcomed many local and international organizations, investors, analysts who would like to get better understanding about Vietjet, took part in some international investment conferences. investors in Vietnam and in the world

  15. Slide 15: Awards

    Awards • Top 100 Best Places to Work in Vietnam voted by Anphabe and Nelsen. • The Asian Records voted Vietjet as the carrier to hold the 1st highest number of creative, cultural and exciting activities on board the airplanes. • “The Best Asian Low Cost Carrier” at the TTG Travel Awards. • Asia’s be

  16. Slide 16: Fleet Expansion

    Fleet Expansion Vietjet’s aircraft fleet by 30th June, 2017 stood at 45 aircraft including 30 Airbus A320s and 15 Airbus A321s with the average age of 3.12 years. The fleet of aircraft has seat configuration from 180 to 220-230 seats and the designs are in tune with the low cost airline business mod

  17. Slide 17: A321 deliver cost & revenue benefits

    Young, modern and Fuel Efficient Fleet AC Type Vietjet Air Asia Indigo Jetstar easyJet Ryanair (JQ) A319 ( 156 seats) 143 A320 30 173 137 53 136 A321 ( 230 15 6 seats) B737-800 383 Avg. Age (y) 3.12 6.6 5.6 7.9 7.0 6.5 Total 45 173 137 59 279 383 A321 deliver cost & revenue benefits 17

  18. Slide 18: Hanoi - Siem Reap first flight

    On 30th March 2017, welcome the first passengers on the flight connecting two famous destinations of tourism Hanoi - Siem Reap (Cambodia). 18

  19. Slide 19: Safety Performance

    SAFETY PERFORMANCE  Safety indicators of ground operations and Flight operations are also highest in the region  Achieved the highest technical reliability of 99.55% among the top Airlines in Asia Pacific region These positive operation safety and service results have entailed a 30% decrease in ai

  20. Slide 20: Cost, cost & cost!

    Cost, cost & cost! A strong focus on cost 20

  21. Slide 21: Fleet Expansion

    FLEET EXPANSION Young, modern and Fuel Efficient Fleet 100 90 80 70 60 50 40 30 20 10 0 2017 2018 2019 2020 A320 A321 737Max8 2017 2018 2019 2020 A320 25 25 22 19 A321 27 41 52 42 737 Max 200 0 0 4 28 Total 52 66 78 89 A321 deliver cost & revenue benefits 21

  22. Slide 22: Fuel Saving Program

    Fuel Saving Program SFCO2 - Fuel Saving Program is provided for Vietjet from Safran Group. The result experts in 5 domains where opportunities for fuel saving can be found: dispatch, flight operation, ground operation, maintenance, in-flight service. Each best practice report which is made from expe

  23. Slide 23: Best In Class Cost Structure With Room For Improvement

    Best In Class Cost Structure With Room For Improvement 8.54 6.97 7.08 6.7 5.84 5.66 5.73 5.67 5.57 5.71 5.41 5.4 5.44 5.69 5.13 5.02 4.84 5.02 4.88 4.43 4.58 4.29 3.91 3.92 4.03 3.89 3.98 4.02 3.66 3.78 3.81 3.36 3.13 3.39 2.36 2.74 2.25 2.29 Airasia group Gol Linhas Nok Ryanair Indigo Southwest Ceb

  24. Slide 24: Hochiminh city - Seoul and Hanoi - Busan routes

    Following the success of two key routes: Hochiminh city - Seoul and Hanoi - Seoul (South Korea), Vietjet officially operated the route connecting the Hanoi capital Vietnam with the crowded port city of Busan on 16th December 2016. 23 24

  25. Slide 25: Strong Balance Sheet Performance (Separated FS)

    Strong Balance Sheet Performance (Seperated Fs) TOTAL ASSETS (VND’Bil) Total Assets: increased 47.8% 23,300 15,761 from 15,761 VND billion in 1H2016 to 23,300 VND billion in 1H-16 1H-17 1H2017. TOTAL EQUITY (VND’bil) Total Equity increased 108.5% to 4,853 VND billion in 1H2017, compared to 2,328 VND

  26. Slide 26: Best Class In Operating Performance (Separated FS)

    Best Class In Operating Performance (Seperated Fs) TOTAL REVENUE (VND’bil) OPERATING PROFIT (VND’bil) Total Revenue: increased 45.9% from 7,401 VND billion in 1H2016 to 10,797 VND billion in 1H2017. 10,797 Operating Profit grew up 46.6% 7,401 1090 743 to 1,090 VND billion in 1H2017 compared to same

  27. Slide 27: Solid Growth In Ancillary

    Solid Growth In Ancillary  Ancillary revenue per pax: increased 20% from Ancillary revenue per pax 11.3 USD/pax in 1H2016 to 13.6 USD/pax in USD/pax 1H2017.  Total Ancillary revenue as % of Total Operation Revenue increased to 23.3% in 1H2017 compare to H1 2016 13.6 11.3 1H-16 1H-17 Ancillary reve

  28. Slide 28: Excellent Financial Performance (Consolidated FS)

    Excellent Financial Performance (Consolidated Fs) TOTAL REVENUE (VND’bil) PROFIT BEFORE TAX (VND’bil)  Revenue up 30.8% from H1 2016 based on increase in passenger carried (+46%) and growth in ancillary revenue (+52%) 16,423 12,557 1,907 1,313  Operating Profit increased 45.2% compared to last yea

  29. Slide 29: Excellent Financial Performance (Consolidated FS)

    Excellent Financial Performance (Consolidated Fs) TOTAL ASSETS (VND’Bil) TOTAL EQUITY (VND’bil) • Total assets: increased 49.6% from 16,541 VNDbil in 1H2016 to 24,747 VNDbil in 1H2017. • Total Equity increased 111.9% to 24,747 7,321 7,321 VND bil in 1H2017 due to 16,541 successful IPO in Feb 2017 an

  30. Slide 30: 2017 Looking Forward

    2017 Looking Forward  Revenue: • H1 2017: 105.7% KPI • FY 2017 : double-digit increase  PBT: • H1 2017: 103% KPI • FY 2017: double-digit increase  Operational Flights: • H1 2017: 100% KPI • FY 2017: double-digit increase  Passengers: • H1 2017: 100% KPI • FY 2017: double-digit increase due to de

  31. Slide 31: Definitions And Abbreviations

    Definitions And Abbreviations Term Description ASK Available Seat Kilometer CASK Total Cost (excluding cost of aircraft sold) per Available Seat Kilometer. CASK ex-fuel Total Cost (excluding cost of aircraft sold, fuel) per Available Seat Kilometer. RASK Total Revenue (excluding Revenue from sale ai

  32. Slide 32: Thank you

    Thank you 31

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