Virgin Australia Holdings Limited · ASX:VGN

Virgin Australia — Virgin Blue Holdings — FY2005 Earnings Presentation

16 slides from Virgin Australia's earnings presentation, 2005

  1. Slide 1: Financial Results 12 months ended 30 September 2005

    Financial Results 12 months ended 30 September 2005 Keith Neate Chief Financial Officer

  2. Slide 2: Results Overview FY05

    Results Overview FY05 12 months to 2005 2004 % variance 30 September $m $m Revenue $1,755.7 $1,532.6 + 14.6% EBITDAR $379.5 $427.2 - 11.2% PBT $148.4 $224.3 - 33.8% NPAT $105.2 $157.4 - 33.2% Yield 10.64 cents 10.51 cents + 1.2% CASK (inc fuel) 7.84 cents 7.47 cents + 4.9% CASK (ex fuel) 6.03 cents

  3. Slide 3: Results Overview 2H05

    Results Overview 2H05 6 months to 2H05 2H04 % variance 30 September $m $m Revenue $874.4 $786.9 + 11.1% EBITDAR $152.7 $191.3 - 20.2% PBT $44.6 $90.1 - 50.5% NPAT $30.0 $63.0 - 52.4% Yield (Scheduled 10.43 cents 10.11 cents + 3.2% Revenue) CASK (inc fuel) 7.95 cents 7.26 cents + 9.5% CASK (ex fuel)

  4. Slide 4: Revenue Overview

    Revenue Overview „ Scheduled passenger A$ Millions revenue up 14.7% 1800 „ Yield up 1.2%, with 2H05 1600 up 3.2% YoY 1400 „ Other revenue up 10.8% 1200 1000 „ Freight 800 „ On board sales 600 400 200 0 2004 2005 Scheduled Revenue Other Revenue 3

  5. Slide 5: Cost per ASK (CASK)

    Cost per ASK (CASK) Change from 2004 Cost per ASK (cents) Aircraft operating costs + 8.0% 10 (1) 9 Airport charges, + 4.8% 7.84 8 7.47 navigation, & station operations 7 1.25 1.81 Contract & other - 25.5% 6 maintenance costs 5 Commission & other - 4.3% 4 marketing & reservation costs 3 6.22 6.03 Fue

  6. Slide 6: Aircraft Operating costs

    Aircraft Operating costs „ Total expenditure up 8.0%, CASK down 7.6% „ Change of fleet mix 2004 2005 Owned 13 19 Leased 36 32 49 51 700 NG’s 22 22 800 NG’s 27 29 49 51 „ Residual value and component accounting impact of $4 million. Airframe and engine effective life increased from 16 to 22.5 years 5

  7. Slide 7: Airport Charges, navigation & station operations

    Airport Charges, navigation & station operations „ Total expenditure up 22.1%, CASK up 4.8% „ Increase in excess of production and passenger growth „ NCC appeal decision still outstanding „ Efficiencies in station operations and scale „ Airport charges increased 14.8% on average „ Increased security

  8. Slide 8: Contract and other maintenance costs

    Contract and other maintenance costs „ Total expenditure down 13.2%, CASK down 25.5% „ Economies of scale and fleet mix „ Three year ANZES contract in place „ Exceptional performance of NG aircraft type „ Currency appreciation on USD denominated costs 7

  9. Slide 9: Commissions, other marketing and reservation costs

    Commissions, other marketing and reservation costs „ Total Expenditure up 11.5%, CASK down 4.3% „ Development and Launch costs of loyalty programme have been expensed „ Investment in experienced corporate sales team/structure „ Agent commission rates reducing as a percentage „ Tom Andrews campaign -

  10. Slide 10: Fuel and Oil

    Fuel and Oil „ Total expenditure up 67.8%, CASK up 44% „ Average BBL price jet fuel up 76.6% against 2004 „ Fuel costs account for 23% of cost base compared to 17% in 2004 „ Price increase (adjusted for production growth) has cost an additional $115 million in 2004/05 „ Fuel savings programme implem

  11. Slide 11: Labour & staff related costs

    Labour & staff related costs „ Total expenditure up 21.7%, CASK up 4.5% „ CASK increase in line with expectations „ EBA negotiations progressing „ KIOSK and Web-check savings through natural attrition 10

  12. Slide 12: Hedging

    Hedging „ FX „ Forward contracts for 2005/06 50% cover at an average 0.755 „ Fuel „ Some short dated hedging in place for 2005/06 „ Interest „ 80% of exposure hedged at around 6.1% 11

  13. Slide 13: Balance Sheet and Cash Flow

    Balance Sheet and Cash Flow Year end 30 September 2005 2004 Capital Expenditure $303 M $494 M Available cash $616 M $520 M Days cash cover 140 Days 144 Days Total equity $770 M $664 M Net Debt/ Net debt plus equity (1) 60% 65% (1) Net debt adjusted to include annual aircraft rental expense capitalis

  14. Slide 14: Other business

    Other business „ Change of Financial Year End to 30 September with immediate effect „ In line with Corporations Act requirement „ Interim accounts for 12 months to 31 March 2005 „ Audited accounts for 18 months to 30 September 2005 13

  15. Slide 15: Statutory Reporting - reconciliation

    Statutory Reporting - reconciliation 12 months to 6 months to 18 months to 31 Mar 05 30 Sept 05 30 Sept 05 $m $m $m Revenue $1,668.6 $874.4 $2,543.0 EBITDAR $417.4 $152.7 $570.1 PBT $193.8 $44.6 $238.4 NPAT $138.1 $30.0 $168.1 Yield (Scheduled 10.49 cents 10.43 cents 10.47 cents Revenue) CASK (inc f

  16. Slide 16: Thank You

    Thank You 15

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