Vietjet Aviation Joint Stock Company · HOSE:VJC
Vietjet Aviation Joint Stock — Non-Deal Roadshow (September 2018)
26 slides from Vietjet Aviation Joint Stock's roadshow presentation, Sep 25, 2018
Slide 1: VietJet Aviation Joint Stock Company Presentation
VietJet Aviation Joint Stock Company Presentation September 2018
Slide 2: Company Overview
Company Overview Ranking Vietjet Ranking Vietjet Business Description Pax Market Share (4) vs. VN carriers vs. all carriers 21.0% 1 1 46.9% Having commenced operations in December 2011, VietJet had grown rapidly to become the largest airline in Vietnam after only 4 years of operations, commanding a
Slide 3: Route network map
Route network map As ofSource: 30/6/2018: 94 routes (38 domestic and 56 international) Company Information 2 Source: Company Information. As at August 31st, 2018 Vietjet operates 101 routes out of which 38 domestic and 63 international routes
Slide 4: Investment Highlights
Investment Highlights 1 Largest domestic airline in Vietnam, the fastest growing aviation market in Asia Pacific 2 Young fleet with large growing order book 3 Best-in-class cost structure with strong operational performance 4 Excellent financial performance 5 Significant ancillary revenue upside 6 S
Slide 5: Highest growth in air passenger traffic and inbound tourism
Largest domestic airline in Vietnam, the fastest growing aviation market in Asia Pacific 1 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.
Slide 6: Vietnam is supported by strong fundamentals
Largest domestic airline in Vietnam, the fastest growing aviation market in Asia Pacific 1 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 foreca
Slide 7: 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 1 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
Slide 8: Domestic market leader with strong government support
Largest domestic airline in Vietnam, the fastest growing aviation market in Asia Pacific 1 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
Slide 9: Young, modern and fuel efficient fleet
Young fleet with large growing order book 2 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 7.10 6.40 6.70 5.73 6.00 5.01 4.60
Slide 10: Amongst the lowest unit costs in the world
Best-in-class cost structure with strong operational performance 3 Amongst the lowest unit costs in the world CASK ex-fuel(1) (USD cents / ASK) Asia(2) Europe / Middle East(2) Average: 2.62 Average: 3.19 4.81 3.04 2.86 2.73 2.83 2.65 2.43 2.32 2.38 2.45 1.87 FY2016 FY2017 1H2018 AirAsia Cebu Indigo
Slide 11: Highest RPK growth vs peers & consistently high load factor
Best-in-class cost structure with strong operational performance 3 Highest RPK growth vs peers & consistently high load factor Comparables Asia(3) Europe / Middle East(3) RPK: RPK: RPK: RPK: 9,690m 14,451m 20,585m 13,588m Average: 10.8% Average: 10.3% 82.1% Growth (%) RPK(1) 49.1% 42.5% 44.2% 25.5%
Slide 12: Efficient financial and operational risk management
3 Best-in-class cost structure with strong operational performance Efficient financial and operational risk management Fuel cost management and hedging VietJet adopts a comprehensive fuel cost management program that include: – Fuel efficient aircraft that can save up to 16% of consumption, plus fue
Slide 13: Sustained growth in revenue and profitability
Excellent financial performance 4 Sustained growth in revenue and profitability Total Revenue(1) Airline Revenue(2) (VND bn) (VND bn) 2015-2017 1H17-18 2015-2017 growth: 52.9% CAGR: 46.0% CAGR: 43.4% 1H17-18 growth: 29.2% Total Net Income(3) Airline Net Income(4) 2,000 1H17-18 2015-2017 1,817 growth
Slide 14: Profitability exceeding that of most peers
Excellent financial performance 4 Profitability exceeding that of most peers, with consistent improvement in net margins Comparables Asia(2) Europe / Middle East(2) VND 3,636bn VND 5,947bn VND 7,380bn VND 5,575bn Average: 28.4% Average: 26.7% 37.4% 32.8% 32.7% 33.7% 33.8% 31.8% 32.3% Adj. EBITDAR 29
Slide 15: Robust balance sheet with improving credit metrics
4 Excellent financial performance Robust balance sheet with improving credit metrics Lease Adjusted Net Debt(1) / Equity Adjusted EBITDAR(2) / (Net Interest + Rent) 9.0x 2.5x 7.8x 8.0x 1.9x 1.9x 7.0x 2.0x 6.1x 1.7x 1.6x 6.0x 1.5x 5.0x 4.0x 1.0x 3.0x 2.5x 1.9x 2.0x 0.5x 1.0x - - FY2015 FY2016 FY2017
Slide 16: Increase in ancillary revenue per passenger
Significant ancillary revenue upside 5 Increase in Ancillary revenue per passenger, with potential upside supported by digital opportunities Comparables Asia(2) Europe / Middle East(2) Average: USD 10.40 Average: USD 19.43 per Passenger (USD) Ancillary Revenue 32.01 18.00 14.27 15.16 15.81 12.14 11.
Slide 17: Prominent Brand recognised as Best Ultra Low-Cost Airline in 2018
Strong brand recognition 6 Prominent Brand recognised as Best Ultra Low-Cost Airline in 2018 has a 96% brand awareness(1) in Vietnam with superior customer loyalty A Prominent digital media presence enhancing awareness B Strong Brand Representation across various categories(2) Strong on-line prese
Slide 18: Entrepreneurial and visionary management team with a proven track record
Experienced leadership team 7 Entrepreneurial and visionary management team with a proven track record Visionary, reputable and highly experienced leadership with over >20 years in managing diverse businesses, domestically and internationally, have led VietJet to achieve consistent gain in market sh
Slide 19: Strategic Plan
Strategic Plan
Slide 20: 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 21: 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 VietJet is committed to operational safety with an emphasis on high tech Maintain leading position
Slide 22: Appendix
us yleyet4ircom
Slide 23: Income statement
Income statement Vietjet JSC Incom e Statem ent FYE 31 Decem ber, VND m unless stated otherw ise Unit VND m VND m VND m VND m FY2015 FY2016 FY2017 1H2018 Revenue VND m 19,845,479 27,499,296 42,302,573 21,221,912 Cost of Sales VND m (17,735,540) (23,597,459) (35,753,176) (18,223,404) Gross Profit VND
Slide 24: Balance sheet
Balance sheet Vietjet JSC Balance Sheet FYE 31 Decem ber, VND m unless stated otherw ise Unit VND m VND m VND m FY2016 FY2017 1H2018 Cash and Cash Equivalents VND m 2,741,341 6,861,602 4,939,421 ST Investments VND m 1,400 1,400 1,327,400 Accounts Receivable - Short-term VND m 7,128,757 10,223,454 11
Slide 25: Ranked #22 in the 2018 Airfinance Journal Airline Top 50
Ranked #22 in the 2018 Airfinance Journal Airline Top 50 24
Slide 26: Disclaimer
Disclaimer THIS PRESENTATION HAS BEEN PREPARED BY VIETJET AVIATION JOINT STOCK COMPANY (THE “COMPANY”) SOLELY FOR YOUR INFORMATION AND FOR USE AT THE PRESENTATION BY THE COMPANY AND HAS NOT BEEN INDEPENDENTLY VERIFIED. THIS PRESENTATION IS BEING COMMUNICATED ONLY TO PERSONS WHO HAVE PROFESSIONAL EXP
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