Aegean Airlines SA · ATHEX:AEGN
Aegean Airlines SA — Investor Presentation (June 2023)
34 slides from Aegean Airlines SA's investor presentation, June 2023
Slide 1: Corporate Presentation
Corporate Presentation June 2023
Slide 2: Strong recovery in 2022
Strong recovery in 2022 €1.336,8 mil. €141,3 mil. €106,8 mil. €348,1 mil. Revenues Earnings before taxes Earnings after taxes Equity 16,7 bn. 12,5 mil. 101.340 80% ASKs Passengers Flights Load Factor
Slide 3: Navigating successfully through the years
Navigating successfully through the years Rapidly adapting strategy to address both the challenges and the opportunities Load Factor Evolution 85% 83% 84% 78% 78% 77% 77% 80% 74% 68% 69% 67% 66% Available Seat Kilometers – (in billion) 16,4 16,7 17,2 18,6 16,7 14,7 10,7 12,2 10,8 8,3 9,8 9,1 7,2 94,
Slide 4: Exceeding pre-pandemic revenues & profitability
Exceeding pre-pandemic revenues & profitability Earnings Before Interest, Taxes Revenues (in € mil.) and Depreciation (in € mil.) +2,1 % FY22 vs FY19 1.308,8 1.336,8 269,5 +2,1 % FY22 vs FY19 274,9 674,8 117,3 FY-19 FY-21 FY-22 FY-19 FY-21 FY-22 Earnings Before Taxes (in € mil.) Earnings After Taxes
Slide 5: Historical record profitability in the 3rd and 4th quarter
Historical record profitability in the 3rd and 4th quarter First profitable 4th quarter 1.308,8 1.336,8 Revenue (in €mil.) 674,8 512,5 571,4 347,4 276,9 333,9 327,3 317,4 172,0 188,0 120,8 44,3 108,6 Q1:19 Q2:19 Q3:19 Q4:19 FY:19 Q1:21 Q2:21 Q3:21 Q4:21 FY:21 Q1:22 Q2:22 Q3:22 Q4:22 FY:22 as a % of
Slide 6: Gradual capacity build up
Gradual capacity build up -Activity during the 1st quarter remained significant lower due to Omicron variant -Gradual build-up of capacity by adding new destinations and increasing frequencies in the domestic and international network -July onwards capacity stood marginally below the pre-pandemic le
Slide 7: Greece outperformed rest of Europe in terms of flight activity
Greece outperformed rest of Europe in terms of flight activity -Strong travel demand for Greece prompted more international airlines to add Greek destinations to their schedule or increase the frequency of existing connections. -International carriers’ re-investment mostly to regions, resulted at pe
Slide 8: Total market in Greece continues to attract interest
Total market in Greece continues to attract interest -Capacity offered exceeds 2019 levels - Total traffic close to 2019 64,1 Capacity (in mil.) 60,3 51,2 36,4 49,5 53,1 40,9 28,9 7,5 10,3 10,8 11,0 2013 2017 2019 2022 Traffic (in mil.) 53,4 52,9 47,5 31,5 45,0 44,9 39,4 26,6 4,9 8,1 8,4 8,0 2013 20
Slide 9: AEGEAN ranked among the top tiers in FY22
AEGEAN ranked among the top tiers in FY22 Available Seats* Passengers* ASKs* Wizzair 124% Wizzair 115% Wizzair 124% Ryanair 111% Ryanair 105% Ryanair 110% Aegean 89% Aegean 83% Aegean 90% Air France 84% IAG 80% Eurowings 85% IAG 83% Air France 80% Air France 85% Easyjet 78% Austrian 76% Easyjet 84%
Slide 10: Double-digit EBIT and EBT margins
Double-digit EBIT and EBT margins -Robust demand for travel to/from Greece. -Significant increase of revenue per available seat. -Fleet upgrade with a higher number of neo deliveries in 2022. -Fuel hedging partial protection. % change % change (in € mil.) FY 2019 FY 2021 FY 2022 22/21 22/19 Total Re
Slide 11: Operational expenses – CASK breakdown
Operational expenses – CASK breakdown FY 2019 FY 2021 FY 2022 ASKs 18.596 10.826 16.744 (€ cents.) Employee benefits 0,75 0,62 0,80 Aircraft fuel 1,51 1,24 2,02 Depreciation 0,78 1,39 0,76 Aircraft maintenance 0,98 1,07 0,84 Overflight expenses 0,38 0,36 0,39 Ground handling expenses 0,38 0,42 0,44
Slide 12: Cash Flow Bridge FY-2022
Cash Flow Bridge FY-2022 Amounts in € mil. 12
Slide 13: Q1-23 Highlights
Q1-23 Highlights • €229,1 mil. Consolidated Revenue, +90% vs Q1-22 and +33% vs Q1-19. • 2,6 mil. passengers, +72% compared with Q1-22, +98% international passengers growth. • Positive EBITDA of €19,3 mil., from respective losses of €16,1 mil. in Q1-22. • €14,4 mil. after-tax loss from €38,5 mil. aft
Slide 14: Significant improvement in AEGEAN's performance
Significant improvement in AEGEAN’s performance; Positive EBITDA for the first time in the seasonally weak first quarter and substantially lower after tax losses Load Factor ASKs (in mil.) Passengers (in ‘000) 100% 4.000 3.000 82% 2.525 2.581 82% 3.500 3.340 80% 3.105 2.500 66% 3.000 2.000 60% 2.500
Slide 15: Improved AEGEAN's competitiveness in the post pandemic market
Improved AEGEAN’s competitiveness in the post pandemic market - Losses more than halved due to strong customer demand and fleet upgrade - Q1-23 ASK growth of 11% vs Q1-19 with Revenues +33% due to strong customer demand, driving higher unit revenues in the seasonally weak winter period % chg (in € m
Slide 16: Significant cost benefits from fleet upgrade and capacity growth
Significant cost benefits from the evolution of fleet upgrade and capacity growth Q1 2019 Q1 2022 Q1 2023 ASKs 3.015 2.211 3.340 (€ cents.) Employee benefits 1,05 1,00 0,91 Aircraft fuel 1,42 1,48 1,88 Aircraft maintenance 0,99 0,88 0,70 Overflight expenses 0,39 0,41 0,38 Ground handling expenses 0,
Slide 17: Strong operating cash flow allows further deleveraging
Strong operating cash flow driven by strong pre-sales allow for further deleveraging Cash & Cash Equivalents Debt (€ mil.) (€ mil.) 591,0 517,0 528,0 268,0 199,0 198,0 FY 2019 FY 2022 Q1 2023 FY 2019 FY 2022 Q1 2023 (amounts in EUR mil.) FY 2019 FY 2022 Q1 2023 Cash and Cash Equivalents1 517 528 591
Slide 18: Strengthening AEGEAN's competitive advantages
Strengthening AEGEAN’s competitive advantages Meet Our Team Employees Customers Investments Extensive Network - Pilot Scholarship Program - Trusted consumer brand - NEO Fleet -46 countries - Aircraft Maintenance Engineers - High quality product - Lounges -264 routes Scholarship Program - Loyalty pro
Slide 19: Fleet Modernization ongoing
Fleet Modernization ongoing Driving Efficiency and Elevating Product Quality offer new services to passengers, increased range capabilities for expansion to new destinations and markets, strengthen AEGEAN’s competitiveness, reduce operating costs and upgrade the quality of services offered. 46 42 35
Slide 20: Neo contribution on Group's activity
Neo contribution on Group’s activity 2019 0% contribution in terms of Flights Hours 0% contribution in terms of Flights Efficient Fleet 7,35 kg C02/ Available Seat km (100 ASK) The use of more neo aircraft in our operations 2022 29% in terms of Flights Hours will bring further savings in fuel consum
Slide 21: Driving Efficiency
Driving Efficiency Summer Scale Fleet 31.12.2022 2023 Elevated onboard product, younger fleet offering improved Jets customer experience and services, new configuration, improved engines, lower operating and maintenance costs NEO 19 27 Benefits of Fleet CEO 36 34 Transformation Total jets 55 61 Flex
Slide 22: AEGEAN is investing in innovation and in product development
AEGEAN is investing in innovation and in product development Strengthening our Brand Investment in customer experience Delivery of high-quality services New product offerings Targeting new growth opportunities Offering catering services Investing in innovation Loyalty program Continuous improvement
Slide 23: Summer '23 network and new destinations
Summer ’23 18 mil. available seats 46 Countries 161 Destinations 11 mil. seats in the international network 264 Routes 16 new scheduled Destinations Birmingham – UK Split – Croatia Bristol – UK Sevilla – Spain Bratislava – Slovakia Newcastle – UK Dammam – Saudi Arabia Marrakech – Morocco Baku – Azer
Slide 24: Outlook
Outlook • Strong summer ticket sales; • Strong high-end demand for Greece; premium quality product offering • New destinations and introduce every month new product offerings and targeted services across all travel ribbon, to offer to our passengers the option to enhance their travel experience and
Slide 25: First aviation ecosystem for technical support services and training in Greece
First aviation ecosystem for technical support services and training in Greece With this investment and mainly with the further growth and development of AEGEAN people’s know-how and expertise, AEGEAN, fills a significant gap in infrastructure for third-party support services through two main parall
Slide 26: Flight Training Center
Flight Training Center Capacity Green hangar add significant joined their forces to -up to 7 full flight value to the local The Flight Training create Greece’s 1st simulators for Center will be powered aviation industry Flight Training Center Airbus A320neo, by solar energy Boeing 737NG, produced by
Slide 27: Appendix
Appendix
Slide 28: Hedging Coverage
Hedging Coverage Managing exposure to reduce volatility on results and target cost certainty. Hedging rate % Jet Fuel 2023 62% 2024 21% Hedging rate % US dollars* 2023 56% 2024 40% *Including cashflow and non cashflow hedges as % of total USD expenses 28
Slide 29: AEGEAN at a glance
AEGEAN at a glance Fourth Fourth Full Year Full Year (in € mil.) Quarter Quarter % change 2021 2022 2021 2022 % change Revenue 188,0 317,4 68,8% 674,8 1336,8 98,1% EBITDA 22,8 39,4 73,1% 117,3 1 274,9 134,4% Pre-tax earnings/(Loss) (39,1) 19,9 - (72,1) 1 141,3 - Net earnings/(Loss) (23,7) 13,6 - (57
Slide 30: Profit and Loss Account
Profit and Loss Account (in € mil.) FY 2021 FY 2022 % change Scheduled Services 558,3 1138,3 103,9% Charter 37,9 70,0 84,6% Other 78,7 128,5 63,4% Total Revenue 674,8 1.336,8 98,1% Other operating income 105,6 44,6 -57,8% Employee benefits (66,9) (133,4) 99,5% Aircraft fuel (134,2) (338,9) 152,5% Ai
Slide 31: Balance Sheet & Cash flow Aegean Group
Balance Sheet & Cash flow Aegean Group Balance Sheet- Summary (in € mil.) 31.12.2021 31.12.2022 Total Fixed Assets 814,3 1.203,3 Cash & Cash Equivalents 462,11 463,71 Financial Assets Available for Sale 12,3 64,22 Other Current Assets 251,7 289,2 Total Assets 1.540,4 2.020,4 Total Equity 213,6 348,1
Slide 32: Group operating figures
Group operating figures Q4 2021 Q4 2022 % change FY 2021 FY 2022 % change Capacity ASKs (in millions) 3.329 4.096 23,0% 10.826 16.744 54,7% Total available seats (000) 3.305 3.808 15,2% 11.153 15.803 41,7% Total Block Hours 33.785 40.760 20,6% 113.143 173.914 53,7% Total Sectors Flown 20.942 23.899
Slide 33: Contact details
Building 57, Athens International Airport, Spata Greece 19019 t. 0030 2103551519 e. investors@aegeanair.com www.aegeanair.com https://en.about.aegeanair.com/investor-relations 33
Slide 34: Disclaimer
Disclaimer Forward Looking Statements Except for historical information, the statements made, or information contained in this presentation are forward-looking in nature. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, object