Syn Prop e Tech SA · BMFBOVESPA:SYNE3
Syn Prop e Tech SA — Azul — Q2 2018 Earnings Presentation
13 slides from Syn Prop e Tech SA's earnings presentation, Aug 9, 2018
Slide 1: 2Q18 Results
2Q18 Results August 9th, 2018 1
Slide 2: Disclaimer
Disclaimer The information contained in this presentation is only a summary and does not purport to be complete. This presentation has been prepared solely for informational purposes and should not be construed as financial, legal, tax, accounting, investment or other advice or a recommendation with
Slide 3: Customer Service Excellence
Customer Service Excellence YTD On-Time Performance (A151) 86.4% Best Regional Carrier in South America 85.2% 83.5% Best Staff in Best customer service experience South America 79.0% Azul Airline 1 Airline 2 Airline 3 1 Considers arrivals within 15 minutes of scheduled time (FlightStats) 3
Slide 4: Azul's Fleet Transformation
Azul’s Fleet Transformation The addition of next-generation aircraft is the cornerstone of Azul’s margin expansion strategy going forward CASK Advantage Trip Cost Advantage +5% -26% -29% -14% E195 E2 A320neo E195 E2 A320neo 118 seats 136 seats 174 seats 118 seats 136 seats 174 seats 4
Slide 5: 2Q18 Highlights
2Q18 Highlights ASK Adj. Net Revenue Adj. EBITDAR Adj. Operating Adj. Net Income (millions) (R$ millions) (R$ millions) Margin (R$ millions) +18.6% +20.5% 238 +10.9% 7,062 5,956 2,069 5.8% 1,717 521 470 3.7% -39 2Q17 2Q18 2Q17 2Q18 2Q17 2Q18 2Q17 2Q18 2Q17 2Q18 • Adjusted net income of R$ 238 millio
Slide 6: Operating Margin Evolution 2Q18 vs. 2Q17
Operating Margin Evolution 2Q18 vs. 2Q17 Most of fuel and currency headwinds were offset as a result of Azul’s margin expansion strategy and ability to recapture revenue R$ millions Operating margin 5.8% 3.7% 99 76 158 Operating income 2Q17 Fuel and Currency Revenue recapture Margin expansion Adj. O
Slide 7: Revenue Statistics – 2Q18
Revenue Statistics – 2Q18 Average Fare Load Factor (R$) (%) +15.5% 355 80.9% 80.1% 308 2Q17 2Q18 2Q17 2Q18 RASK1 Stage Length (R$ cents) (Km) +13.1% +1.6% 987 28.8 29.3 872 2Q17 2Q18 2Q17 2Q18 Stage-length adjusted2 RASK growth of 8.1% 1 Adjusted for non-recurring revenue loss related to truckers’ s
Slide 8: TudoAzul and Azul Cargo Express Growth
TudoAzul and Azul Cargo Express Growth Strong non-ticket revenue growth driven by TudoAzul and Azul Cargo Express • Wholly-owned loyalty program, TudoAzul • Additional capacity to drive further growth: ‒ ~10 million members ‒ Increase in volume share from 10% to 14% YoY ‒ Increase in loyalty share*
Slide 9: Strong Liquidity Position
Strong Liquidity Position Azul maintained a strong cash position while protecting all of its non-aircraft debt foreign currency exposure Cash Balance Total Debt (R$ million) (R$ billion) Accounts receivables Adjusted for 45% of TTM currency Cash¹ revenue hedges 3,841 3.6 3.6 3.4 3,443 3,025 1,176 1,
Slide 10: Limited Foreign Exchange Exposure
Limited Foreign Exchange Exposure Azul has the lowest relative balance sheet exposure to foreign exchange volatility among Brazilian carriers Foreign Currency Exposure Assets and Liabilities in Foreign Currency (2Q18) (R$ million, 2Q18) Total Debt 5,656 R$ US$ 32% Aircraft¹ 2,788 68% Non-Aircraft De
Slide 11: 2018 Outlook
2018 Outlook 2018 Previous 2018 Revised 1H18 Actual Guidance Guidance ASK growth 17% to 20% 16% to 18% 15.3% Domestic 8% to 10% 7% to 9% 3.2% International 55% to 60% 50% to 55% 76.6% Departures growth 3% to 4% 2% to 3% -2% CASK ex-fuel -2% to -4% -1% to -3% 0.6% Operating margin 11% to 13% 9% to 11
Slide 12: Investor Relations
Investor Relations +55 11 4831 2880 invest@voeazul.com.br
Slide 13: 2Q18 Special Items Reconciliation
2Q18 Special Items Reconciliation 2Q18 Non-recurring adjustments As recorded Adjustment Adjusted Operating revenues 2,017.9 51.2 2,069.1 Passenger revenues 1,905.7 51.2 1,956.9 Operating expenses 2,225.4 1,993.3 (232.1) Other operating expenses 404.3 (232.1) 172.2 Operating income 283.3 75.8 (207.5)