Qantas Airways Limited · ASX:QAN
Qantas Airways — Macquarie Australia Conference 2014
9 slides from Qantas Airways's conference presentation, May 8, 2014
Slide 1: Qantas Airways Limited – Macquarie Australia Conference
Qantas Airways Limited Macquarie Australia Conference 8 May 2014 Qantas’ Guiding Strategic Principles • Safety is always our first priority • The first choice for customers in every market we serve • Maintaining dual-brand strength in domestic market • Reshaping Qantas International to remain compet
Slide 2: Qantas Transformation: Immediate priorities, long-term competitiveness
Qantas Transformation Immediate priorities, long-term competitiveness STRENGTHENING OUR CORE BUSINESS Accelerating cost reduction Deferring growth Right-sizing fleet and network Aligning capex to financial performance Working existing assets harder Accelerating simplification EARNINGS RECOVERY THROU
Slide 3: Qantas Transformation: Focus on cost reduction
Qantas Transformation Focus on cost reduction FY17 EX-FUEL EXPENDITURE TARGET: >10% REDUCTION $2b FY17 EX-FUEL Annualised 1H14 transformation Inflation EXPENDITURE ex-fuel expenditure1 benefits (<$250m p.a.) Assumes steady FX rates, capacity and sector length 1. Annualised 1H14 ex-fuel expenditure (
Slide 4: Moving at pace towards $2b target
Qantas Transformation Moving at pace towards $2b target TARGET: $800M COST SAVINGS BY FY15 $2b Qantas Transformation • Chain of responsibility established for Pipeline implementation of 250 initiatives • Segment CEOs responsible for delivery of segment targets Development phase • Initiatives broken
Slide 5: Consolidation Initiative: 1,500 Management & Non-operational FTE reduction
Qantas Transformation Consolidation Initiative: 1,500 Management & Non-operational FTE reduction • Head office restructure to reduce management layers and improve efficiency Background • Simplified organisation structures for all reporting segments • Freeze on recruitment, consultants and contractor
Slide 6: Right-sizing Initiative: Qantas Domestic Mainline fleet simplification
Qantas Transformation Right-sizing Initiative: Qantas Domestic Mainline fleet simplification Accelerating fleet simplification to 1 x narrow-body and 1 x wide-body fleet type Background • Enabled by B787 deliveries to free up A332 from Jetstar and narrow-body deliveries Dec-13 – 4 Fleet Types 3Q FY1
Slide 7: Group Capex Aligned with Financial Performance
Group Capex Aligned with Financial Performance Supporting positive free cash flow from FY15 onward • Restructure of fleet order, prioritising completion of simplification • Targeted investment in customer; B787; A330 reconfigurations; lounges • Flexibility to adjust capex further; average fleet age
Slide 8: Summary; Disclaimer & ASIC Guidance
Summary • Guiding strategic principles remain consistent • Immediate priority to strengthen core business • Deleveraging balance sheet through earnings recovery, debt reduction • Moving at pace towards delivering $2b cost savings • Group capex aligned with financial performance • Strict financial an
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