Vietjet Aviation Joint Stock Company · HOSE:VJC
Vietjet Aviation Joint Stock — 9M 2018 Earnings Presentation
27 slides from Vietjet Aviation Joint Stock's earnings presentation, October 2018
Slide 1: Key Highlights –9M/2018 Business results Oct 2018
Key Highlights –9M/2018 Business results Oct 2018
Slide 2: Disclaimer
Disclaimer INFORMATION CONTAINED IN OUR PRESENTATION IS INTENDED SOLELY FOR YOUR REFERENCE. SUCH INFORMATION 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 ADVISOR MAKES ANY REPRESENTATION
Slide 3: Highest growth in air passenger traffic and inbound tourism
Largest domestic airline in Vietnam, the fastest growing aviation market in Asia Pacific Highest growth in air passenger traffic and inbound tourism Air passenger traffic growth Inbound tourism growth(1) 2012-2017 Historical Passenger Traffic CAGR (%) 2012-2017 Inbound Tourism CAGR (%) Vietnam 28.9%
Slide 4: Vietnam is supported by strong fundamentals
Largest domestic airline in Vietnam, the fastest growing aviation market in Asia Pacific Vietnam is supported by strong fundamentals Large population estimated One of the fastest growing SEA economies A powerful consumer economy(1) to reach 96.5 million in 2018 (2016-2018e GDP CAGR) Highest forecast
Slide 5: Allowing air travel to become a more accessible and efficient mode of transportation
Largest domestic airline in Vietnam, the fastest growing aviation market in Asia Pacific Allowing air travel to become a more accessible and efficient mode of transportation Air travel is the most efficient means of transportation in Vietnam Travel is substantially faster and more efficient by air c
Slide 6: Domestic market leader with strong government support
Largest domestic airline in Vietnam, the fastest growing aviation market in Asia Pacific Domestic market leader with strong government support “Viet Nam regards the private sector as a development force” –Mr. Nguyen Xuan Phuc, Prime Minister Largest airline in Vietnam by capacity(1) Key government i
Slide 7: Young fleet with large growing order book
Young fleet with large growing order book Young, modern and fuel efficient fleet, driving lower maintenance & fuel cost in the long term Youngest fleet in APAC (average age of aircraft fleet) Asia(1) Europe / Middle East(1) Average: 5.78 years Average: 5.46 years Significant fleet growth with sizeab
Slide 8: Fleet Expansion
Fleet Expansion Vietjet’s aircraft fleet by 30th September, 2018 stood at 57 aircraft including 23 Airbus A320s and 34 Airbus A321s with the average age of 2.95 years. The fleet of aircraft has seat configuration from 180 to 220-230 seats and the designs are in tune with the low cost airline busines
Slide 9: Key Highlights
Key Highlights Carried 16.88 m passengers in 9M 2018, an increase of 34 % compared with 9M 2017. Capacity in 9M 2018 is 19.38m seat flown, increase 34.9% compared with 9M 2017. Vietjet operate 103 routes in 9M 2018 including 39 Domestic routes and 64 International routes, compared with 38 Domest
Slide 10: Passenger Growth To More Than 40% Per Annum
Passenger Growth To More Than 40% Per Annum Total Passengers (‘000 pax) 50,000 45,000 43,000 39,000 40,000 36,000 34,000 35,000 30,000 30,000 24,100 25,000 20,000 17,110 15,000 14,051 9,313 10,000 5,562 5,000 3,156 - 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 9
Slide 11: Operating Statistics
Operating Statistics Modern and young fleet with average age of 2.95 years comprising 23 TOTAL ROUTES OPERATED Airbus A320s and 34 A321s as of 30/09/2018. Up to 30/09/2018, VJC has total 371 aircraft on order with Airbus and Boeing in which the company received 46 aircraft. 103 73 Pax Carried:
Slide 12: Route network map
Route network map Source: Company Information 11 Source: Company Information. As at August 31st, 2018 Vietjet operates 101 routes out of which 38 domestic and 63 international routes
Slide 13: Phu Quoc – Seoul route
Phu Quoc – Seoul is the 8th routes of Vietjet connecting Vietnam and South Korea, Vietjet has transported more than 2 million passengers traveling between two countries 12
Slide 14: Best Class In Operating Performance (Separated FS)
Best Class In Operating Performance (Seperated Fs) TOTAL REVENUE (VND’bil) OPERATING PROFIT (VND’bil) Total Revenue: increased 50.03% from 16,939 VND billion in 9M 2017 to 25,413 VND billion in 9M 2018. 25,413 2,468 Profit before tax grew up 15.5% to 16,939 2,184 2,281 VND billion in 9M 2018 9M 2017
Slide 15: Solid Growth In Ancillary
Solid Growth In Ancillary Ancillary revenue per pax: increased 16.6% from 14.07 USD/pax in 9M/2017 to 16.63 USD/pax in 9M/2018. Ancillary revenue per pax Total Ancillary revenue as % of Total Operation Revenue USD/pax slightly increased to 24.2% in 9M/2018 compare to 9M/2017 16.63 14.07 9M 2017 9M
Slide 16: Cost, cost & cost!
Cost, cost & cost! A strong focus on cost 15 15
Slide 17: Excellent Financial Performance (Consolidated Fs)
Excellent Financial Performance (Consolidated Fs) Revenue per ASK increased 14,8% RASK (US Cents) CASK (US Cents) YoY due to strong growth from high load factor. Cost per ASK impacted by higher fuel 4.88 4.25 price, initial cost of International 4.25 3.80 routes 9M 2017 9M 2018 9M 2017 9M 2018 Co
Slide 18: Excellent Financial Performance (Consolidated Fs)
Excellent Financial Performance (Consolidated Fs) TOTAL ASSETS (VND’Bil) TOTAL EQUITY (VND’bil) Total assets: increased 33.3% from 26,213 VND bil in Q3-17 to 34,957 VND bil in Q3-18. 34,957 12,450 26,213 8,293 Owner Equity increased 50.13% to 12,450 VND Q3 2017 Q3 2018 Q3 2017 Q3 2018 billions in 3Q
Slide 19: New direct flights connecting Vietnam to Japan
Vietjet opened 3 direct flights connecting Vietnam to Japan including Hanoi & Ho Chi Minh City to Osaka, Hanoi to Tokyo (Narita) 18
Slide 20: Products - Services
Products ‐ Services Reasonable and economical price with varied ticket types for choosing. Added services were offered, such as check-in priority, boarding priority, hot meals, pre-ordered beverages, and much more, were made available. “12pm, It’s time to Vietjet” promotion campaign offered millions
Slide 21: Typical events of the Q3 2018
Typical events of the Q3 2018 Announced three new routes to Japan at Tokyo ceremony during official visit of Vietnam PM Nguyen Xuan Phuc. Vietjet President & CEO Nguyen Thi Phuong Thao gave a strong inspirational speech Vietnam Business Summit in the framework of the World Economic Forum on ASEA
Slide 22: Typical events of the Q3 2018
Typical events of the Q3 2018 Welcomed the first flight of Da Nang - Bangkok (Thailand) and Nha Trang - Da Nang route Attended Australia Pacific Aviation & Corporate Travel Summit 2018, one of the most prestigious conferences for regional airlines hosted by Asia Pacific Aviation Center (CAPA)
Slide 23: Awards
Awards Ranked among the world's 50 best airlines (in the 22nd) by Airfinance Journal, one of the leading magazines in the aviation finance sector Ranked as the safest and highest ranking product in the world with 7-stars by AirlineRatings.com Honored to be one of the 40 most valuable brands of
Slide 24: Strategic Plan
Strategic Plan
Slide 25: Strategy and future plans
Strategy and future plans Target to position Vietjet as a high profile “consumer airline” Increase depth and breadth of network, and focus on route profitability Strengthen leadership position as a Grow high-volume, short- and medium-haul route network in Asia, leading domestic carrier and grow Expa
Slide 26: Strategy and future plans (Cont'd)
Strategy and future plans (Cont’d) Target to position Vietjet as a high profile “consumer airline” Increase aircraft utilization and actively manage fuel consumption and hedging strategy Focus on cost management VietJet is committed to operational safety with an emphasis on high tech Maintain leadin
Slide 27: Thank you
Thank you 26
Vietjet Aviation Joint Stock Company — 9M 2018 Earnings Presentation on 6ix