Vietjet Aviation Joint Stock Company · HOSE:VJC
Vietjet Aviation Joint Stock — H1 2023 Earnings Presentation
26 slides from Vietjet Aviation Joint Stock's earnings presentation, July 2023
Slide 1: 1H.2023 Business performance results
1H.2023 Business performance results #1 Vietnam Low-cost Carrier with excellent flight operation capacity Ho Chi Minh City, July 2023 0
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
Slide 3: Contents
Contents I. Company Overview II. Key Investment Highlights III. Business Outlook IV. Notable Events 2
Slide 4: Company overview
Company overview Vietjet is a market leader and a pioneer in Low-Cost Carrier (LCC) in Vietnam Business overview Vietjet has dominated domestic aviation market (1H.2023) • Established in 2007, Vietjet is a leading regional low-cost carrier and Vietnam’s first private airline to be granted operations
Slide 5: Development milestones
Development milestones Vietjet has operated with the incredible growth in aircraft fleet and route networks Fleet DEVELOPMENT MILESTONES 2023 (as of 30 June 2023) Vietjet commenced direct 2022 flights to (Sydney, Melbourne, Brisbane) Australia 82 2021 Vietjet received 4 A330 Vietjet opened 20
Slide 6: Products and services
Products and services Leveraging complete digital platforms to provide full suite of air services and deliver exception experience for Vietjet’s passengers All-in-one loyalty platform Diversified fare classes SKYJOY 9 million members Fly first, Pay later Travel insurance HDBank-Vietjet Travel Credit
Slide 7: Environmental Sustainability
Environmental Sustainability Continuation of investment on “green” aviational solutions and commitment to Fly Net Zero by 2050 Modern and young fleet Owning one of the youngest and most modern fleet globally 82 aircrafts with average age of 5.5 years, operating with economical and flexible costs Iss
Slide 8: Contents
Contents I. Company Overview II. Key Investment Highlights III. Business Outlook IV. Notable Events 7
Slide 9: Key investment highlights
Key investment highlights 1 # 1 LCC in Vietnam with a strong operational capability Best positioned to benefit from Vietnam’s attractive macro story and strong government 2 incentives for the Vietnam’s Aviation sector Consistently and strongly focusing on building and maintaining the best-in-class c
Slide 10: LCC in Vietnam with a strong operational capability
1 Key investment highlights # 1 LCC in Vietnam with a strong operational capability #1 LCC with 40% domestic market share 2nd Largest fleet in Vietnam with 82 aircrafts number of aircraft 91 3% Other Airlines 82 7% 16% 40% 30 10 5 3 34% …Vietjet among the fastest-growing airlines in APAC with total
Slide 11: Passengers, flights, load factor and aircraft utilization
1 Key investment highlights # 1 LCC in Vietnam with a strong operational capability Number of passengers Number of flights (million) (thousand) 20.6 116.3 76.1 12.1 11.8 65.9 9.1 52.5 40.8 5.4 2020 2021 2022 1H.2022 1H.2023 2020 2021 2022 1H.2022 1H.2023 Load factor Aircraft utilization (%) (hours/a
Slide 12: Attractive macro story and government incentives for Vietnam's aviation sector
2 Key investment highlights Best positioned to benefit from attractive macro story and strong government incentives for Vietnam’s Aviation sector Highest GDP per capita growth across ASEAN Highest personal disposable income growth across ASEAN Large LCC market with ample growth opportunities 6.8% 9.
Slide 13: Airport infrastructure opportunities and regulatory changes
2 Key investment highlights Best positioned to benefit from attractive macro story and strong government incentives for Vietnam’s Aviation sector Huge potential development opportunities for airport infrastructure Changes in regulations to support the airline industry Sa Pa Airport (Lao Cai) Cao Ban
Slide 14: Best-in-class cost structure
3 Key investment highlights Consistently and strongly focusing on building and maintaining the best-in-class cost structure Vietjet maintained the lowest CASK (ex-fuel) comparing to Asian and Global LCCs 1H.22 1H.23 CASK ex-fuel regional and global peers Vietjet Asia LCCs Global LCCs 5.1 5.8 5.4 4.2
Slide 15: Cost, cost & cost! A strong focus on cost
Cost, cost & cost! A strong focus on cost 14
Slide 16: Asset base and capital structure
4 Key investment highlights Resilient operational performance to support comprehensive strategy towards building diversified aircraft asset portfolio Stable asset base scale up with additional aircraft asset Well balanced capital structure with c.55% long-term resource (US$ million) Current asset No
Slide 17: Revenue and profit performance
4 Key investment highlights Resilient operational performance to support comprehensive strategy towards building diversified aircraft asset portfolio Airline and consolidated revenue achieved at 71% and 87% y-o-y Ancillary revenue made up 30% of total revenue growth in 1H.2023 respectively (US$ mill
Slide 18: Young and modern fleet and aircraft orderbook
5 Key investment highlights Young and modern fleet with significant commercial and financial potential being secured by a large aircraft orderbook Fleet overview Diversified and fast growth of Vietjet’s air fleet 82 aircrafts, 78 leased and 4 owned Owned 1 1 4 1 4 12 hrs (1H23) compared to 10 hrs (1
Slide 19: Digital airline ecosystem and all-in-one loyalty platform
6 Key investment highlights Comprehensive strategy in building digital airline ecosystem and all-in-one loyalty platform Fully integrated technology management system allowing Vietjet to achieve better profitability and proficiency Digital pilot-to-maintenance Enterprise resource planning Flight dat
Slide 20: Strong brand recognition and awards
7 Key investment highlight Strong brand recognition in Vietnam and across the region providing sustainable competitive advantage Top 50 Sustainable Development Businesses Vietnam 2023 2023 Best Low-Cost Airline Onboard Hospitality for 2023 Best Ultra Low-Cost Airline 2023 2023 Vietnam’s Best Valuabl
Slide 21: Experienced board of directors and management
8 Key investment highlights Experienced board of directors and management committed to investors’ best returns Mdm. Nguyen Thi Phuong Thao Mr. Dinh Viet Phuong Mdm. Ho Ngoc Yen Phuong Chairwoman BOD member, CEO BOD member, EVP & CFO • Madam Nguyen Thi Phuong Thao is one of • Dr. Phuong has more than
Slide 22: Contents
Contents I. Company Overview II. Key Investment Highlights III. Business Outlook IV. Notable Events 21
Slide 23: 2023 Business outlook
2023 STRATEGIC GROWTH PLANNING 2023 Business outlook 1 4 Flight network development Branding and Partnership • Expand widely the domestic route network • Maintain and strengthen the company’s outstanding especially the key routes; strengthen the domestic branding by improving our services (ground se
Slide 24: Contents
Contents I. Company Overview II. Key Investment Highlights III. Business Outlook IV. Notable Events 23
Slide 25: Notable events
Notable events Vietjet has achieved remarkable milestones in reaching momentous agreements with key partners and opening new routes to international destinations In Q2 2023, Vietjet announced direct flights to Hiroshima (Japan) and Brisbane (Australia), and increased the frequency of routes to and f
Slide 26: Thank you
Thank you 25
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