Controladora Vuela Compania De Aviacion Sab De Cv Class A · BMV:VOLAR/A
Controladora Vuela Compania De Aviacion Sab De Cv Class A — Volaris — Investor Presentation (June 2024)
22 slides from Controladora Vuela Compania De Aviacion Sab De Cv Class A's investor presentation, Jun 20, 2024
Slide 1: A clear path to long-term, profitable growth
A clear path to long-term, profitable growth Publish date: June 20, 2024
Slide 2: Disclaimer
Disclaimer This presentation was prepared by Controladora Vuela Compañía de Aviación, S.A.B. de C.V., (d/b/a Volaris, the "Company") with the purpose of providing interested parties certain financial and other information of the Company. This presentation is confidential and may not be retransmitted
Slide 3: Volaris: Latin America's largest ULCC
Volaris: Latin America’s largest ULCC $3.3B USD Low cost Annual operating revenue (2023) Low Capacity base 33.5 Million increase fares Annual passengers (2023) Volaris’ virtuous 135 cycle Aircraft 59% NEO, average age of 6.1 years 137 More ancillaries More NEO orderbook with Airbus customers 111 A32
Slide 4: Strong track record as a publicly traded company
Strong track record as a publicly traded company Operational and financial scorecard: 2013 – 2023 Growth 2013 (1) 2023 2.0x 2.5x 3.0x 3.5x 4.0x Fleet 44 129 +2.9x Routes 104 231 +2.2x Passengers 8.9M 33.5M +3.7x Revenues $1,016M $3,259M +3.2x EBITDAR $219M $823M +3.8x (2) Free Cash Flow $183M $361M
Slide 5: A clear path to long-term, profitable growth
A clear path to long-term, profitable growth Solidify best-in-class Drive profit from the core Preserve financial cost position and complement with strength attractive opportunities ▪ Remain best-in-class ULCC ▪ Leverage leadership in majority ▪ Balance growth with consistent worldwide… low costs go
Slide 6: A clear path to long-term, profitable growth
A clear path to long-term, profitable growth Solidify best-in-class Drive profit from the core Preserve financial cost position and complement with strength attractive opportunities ▪ Remain best-in-class ULCC ▪ Leverage leadership in majority ▪ Balance growth with consistent worldwide… low costs go
Slide 7: Volaris is one of the lowest-cost operators worldwide
Volaris is one of the lowest-cost operators worldwide CASM ex fuel Key elements to achieve our low-cost structure USD cents | FY 2023 | Stage length adjusted @1,000 miles Efficient single fleet One of the youngest fleet in the Americas, composed of Airbus A320 family aircraft (Avg. age 6.0 years) Hi
Slide 8: All non-fleet related costs have a variable component, providing a competitive advantage
All non-fleet related costs have a variable component, providing a competitive advantage 70%+ of Volaris’ costs and expenses have been variable or semi-fixed over Variable the past 3 years, providing flexibility Fleet to adjust capacity Ownership 24% Semi-Fixed Average Fuel All our Ambassadors have
Slide 9: Fleet plan positions Volaris to further increase our cost advantage
213 Fleet plan positions 189 Volaris to further 173 2028E Seats per increase our cost departure (1) 2022 advantage… 2016 High percentage of NEO aircraft is a 11.8 natural hedge against fuel prices 9.6 (~15% fuel consumption reduction) Gallons/ 8.7 ASM (000) (1) 2016 2022 2028E More seats per departu
Slide 10: A clear path to long-term, profitable growth
A clear path to long-term, profitable growth Solidify best-in-class Drive profit from the core Preserve financial cost position and complement with strength attractive opportunities ▪ Remain best-in-class ULCC ▪ Leverage leadership in majority ▪ Balance growth with consistent worldwide… low costs go
Slide 11: Focus on profitability by leveraging leadership position and diversifying the network
Focus on profitability by leveraging leadership position and diversifying the network into attractive markets Capitalize on leadership position in Consolidate as one of the top players in Central American VFR market has a Mexican market to drive profitability attractive cross-border market long run-
Slide 12: Mexico is ideally suited for the ULCC model
Mexico is in the early stages of growth and the increase in trips per capita towards levels seen in comparable markets presents a significant opportunity to expand capacity Mexico is ideally Domestic air travel penetration | 2022(1) Domestic air trips per capita | 2022 suited for the ULCC model +140
Slide 13: Volaris will continue to extract value from its broad and diversified network in Mexico
Volaris will continue to extract value from its broad and diversified network in Mexico Volaris is the leader at more than half of the airports we serve Volaris’ model appeals to bus passengers Seats | 2023 +72 million passengers Bus Medium-term addressable market Tijuana switching Virtually double
Slide 14: Nearshoring is a key driver of Mexico's expected economic growth
Nearshoring is a key driver of Mexico’s expected economic growth Mexico has displaced China as the main ~40% of FDI comes from the U.S. and this The Mexican Peso has appreciated trade partner of the U.S. share has remained strong over time vs. other currencies in the region Share in Total U.S. Impor
Slide 15: Volaris is one of the largest foreign carriers in the U.S.
Volaris is one of the largest foreign carriers in the U.S. A growing Mexican heritage population provides increasing demand for Volaris’ transborder VFR market Seattle ▪ Roughly 64 million(1) people in the U.S. have Portland Hispanic background, with 37 million having Mexican heritage New York Cost
Slide 16: Central America has similar demographics and VFR patterns as Mexico
Central America has similar Seattle demographics and VFR Portland patterns as Mexico with New York untapped ULCC presence Oakland Reno Sacramento San José Chicago (O’Hare) Chicago (Midway) Washington, D.C. Denver Fresno Las Vegas Air Operator Certificates (AOCs) in Costa Rica and El Ontario Charlott
Slide 17: Track-record of successfully increasing ancillary revenues with further upside potential
Track-record of successfully increasing ancillary revenues with further upside potential Significant success in capturing …translating to a stable source of income: ancillary revenue… less elastic, less volatile, less seasonal Volaris total non-ticket revenue per passenger USD $51 Personalization an
Slide 18: A clear path to long-term, profitable growth
A clear path to long-term, profitable growth Solidify best-in-class Drive profit from the core Preserve financial cost position and complement with strength attractive opportunities ▪ Remain best-in-class ULCC ▪ Leverage leadership in majority ▪ Balance growth with consistent worldwide… low costs go
Slide 19: Robust cash position and conservative debt profile
Robust cash position and conservative debt profile Attractive financial debt maturity profile Millions | USD (1)(2) 49% of the total financial debt is of Volaris’ total debt has PDP Financed no exposure to rising 768 composed of PDP Financed, which are reimbursed once the delivery of Engines 89% rat
Slide 20: Second Quarter and Full Year 2024 Guidance
Second SecondQuarter and Quarter and FullFull Year Year 2024 2024 Guidance Guidance 2Q’24 FY 2024 strategic ASM growth ~ -18% focus’ core pillars TRASM $9.1 to 9.2 cents ▪ Fleet and capacity CASM ex fuel $5.5 to 5.6 cents management to preserve business continuity while EBITDAR Margin 31 to 33% mini
Slide 21: Environmental Social Corporate Governance
Environmental Social Corporate Governance ▪ Reduction of CO2 emissions by 35.4% gco2/RPK ▪ Prioritization of aviation security and operational ▪ Sustainability and business strategy by 2030 vs. 2015 with interim targets safety alignment - No aviation accidents and breaches of our customers’ ▪ Board
Slide 22: ir.volaris.com
ir.volaris.com