Air Arabia PJSC · DFM:AIRARABIA
Air Arabia PJSC — H1 2007 Earnings Presentation
11 slides from Air Arabia PJSC's earnings presentation, August 2007
Slide 1: Air Arabia PJSC 1H 2007 Financial Results
Air Arabia PJSC 1H 2007 Financial Results August 2007 -1-
Slide 2: Disclaimer
Disclaimer Information contained in our presentation 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 advisors make any representation regarding, and assume no responsibility or liability fo
Slide 3: Key Highlights of 1H 2007
Key Highlights of 1H 2007 During the First Half of 2007, Air Arabia has significantly grown its operations Number of aircraft rises to 9 planes, serving 35 destinations Passengers up 58%1 to 1.23m Seat factor rises to 83% Similarly, the financial results of Air Arabia have experienced sign
Slide 4: Ongoing Passenger Growth
Ongoing Passenger Growth Passengers Flown by Air Arabia (‘000) vs. Load Factor 3,000 85.0% 83.0% 79.6% 80.0% 79.0% 2,000 75.0% Passengers ('000s) 1,763 Load Factor (%) 68.0% 1,225 1,133 % 58 1,000 65.0% 776 547 0 55.0% 2004 2005 2006 1H 2006 1H 2007 Passengers Load Factor August 2007 – Figures for 1
Slide 5: Fleet and Network Growth
Fleet and Network Growth Fleet Size Destination Growth 16 35 35 32 30 12 25 23 9 8 8 20 15 5 15 4 3 10 5 5 0 0 2004 2005 2006 1H 2007 2003 2004 2005 2006 1H 2007 Latest Routes Planned Routes - 2H 2007E Latakia - Syria Aden - Yemen Karachi - Pakistan Shiraz - Iran Peshawar - Pakistan Lahore - Pakista
Slide 6: 1H 2007 Financial Highlights
1H 2007 Financial Highlights Revenues EBITDAR Margin Growth Rate 1H 06 – 1H 07: 67% 33% 600 30% 30% 2H 06 – 1H 07: 16% 513 28% 27% 500 442 24% AED in Millions 400 21% 21% 307 18% 300 15% 12% 200 9% 6% 100 3% 0% 0 1H 06 2H 06 1H 07 1H 06 2H 06 1H 07 Net Income1 Net Income Margin1 Growth Rate 120 107
Slide 7: Positive Trends in Margins
Positive Trends in Margins Revenue/Passenger – 1H 2006 Vs. 1H Cost/Passenger – 1H 2006 Vs. 1H 2007 2007 418.5 366.5 331.6 396.3 Revenue / Passenger (AED) Cost/ Passenger (AED) 1H 2006 1H 2007 1H 2006 1H 2007 6% Y-o-Y Growth 10% Y-o-Y Decline August 2007 – Figures for 1H2007 Are Unaudited -7-
Slide 8: Highly Profitable Low Cost Carrier Business Model
Highly Profitable Low Cost Carrier Business Model Operating Costs as a Percentage of Revenues 100.9% 100% 4.6% 97.2% 3.7% 89.0% 13.6% 3.7% 82.8% 12.5% 80% 3.5% 14.3% 14.4% 11.4% 14.0% 9.1% 11.4% 10.9% 7.6% 60% Cost of Sales 9.9% 86.8% Cost of Sales 9.2% 14.4% 13.5% 87.8% Cost of Sales Cost of Sales
Slide 9: Business Outlook
Business Outlook 2007E 2010E Aircraft 10 ~ 19 Destinations 38 ~ 50 Passengers 2.2 Million ~ 4.5 Million Sharjah Hub Growth expected to be Revenue Y-o-Y 30% maintained at ~ 20%-25% p.a. Growth for the next 3 years We expect to maintain, at minimum, our current profitability Profitability levels in te
Slide 10: Appendix
Appendix -10- Ubub Ua yc II airarabia.com
Slide 11: Key Operating Statistics
Key Operating Statistics 2004 2005 2006 1H 2006 1H 2007 # of Aircrafts 3 5 8 7 9 Average Aircrafts 3.0 4.9 6.0 5.5 8.7 Destinations 15 23 32 28 35 # Passengers (Millions) 0.6 1.1 1.7 0.8 1.2 RPK (Billions) 1.2 2.5 3.7 1.4 2.2 ASK (Billions) 1.8 3.2 4.7 1.7 2.7 Average Load Factor 68% 79% 80% 80% 83%