Grupo Aeromexico, S.a.b. De C.v. · BMV:AERO
Grupo Aeromexico, S.a.b. De C.v — Investor Presentation (September 2015)
20 slides from Grupo Aeromexico, S.a.b. De C.v's investor presentation, September 2015
Slide 1: Investor Relations Presentation
INVESTOR RELATIONS PRESENTATION INVESTOR RELATIONS PRESENTATION SEPTEMBER 2015
Slide 2: Aeromexico: Mexico's Premium Revenue Carrier
AEROMEXICO: MEXICO’S PREMIUM REVENUE CARRIER. • Mexico’s only full service carrier, offering customers up to a three-class service. • Operating a hub and spoke network model with main hub airports in Mexico City and Monterrey. • Global Airline. Only Mexican carrier flying to long-haul markets in Eur
Slide 3: About Us: Aeromexico Timeline 2014-2015
ABOUT US: AEROMEXICO TIMELINE 2014-2015. Issuance of notes guaranteed by US Ex –IM Bank (USD $195.8 million, 2.3 % structured notes ) . Selected to join the Sustainability Index of the BMV. Mar ‘15 Grupo Aeromexico celebrates 80 Feb ● Aeromexico and Delta years as Mexico’s flagship airline. ‘15 requ
Slide 4: Mexican Economy Continues to Strengthen
MEXICAN ECONOMY CONTINUES TO STRENGTHEN. Growth Opportunities for Mexican Air Traffic Penetration(2) Economy(1) Flights Per Capita for Middle & Upper Class Population Expected GDP Annual Percentage Change 4.0 (>$15K) 3.0 3.0 Mexico 2.4 2.5 2.1 2.3 Latin America and 2.0 the Caribbean 1.3 1.5 Brazil 1
Slide 5: Aeromexico: Financial Results YTD2015
AEROMEXICO: FINANCIAL RESULTS YTD2015. Total Revenues Operating Margin Millions of Pesos Millions of Pesos 4.2% +9.0% 21.95 2.7Pts. 20.13 1.6% YTD 2014 YTD 2015 YTD 2014 YTD 2015 Operating Profit EBITDAR Millions of Pesos Millions of Pesos 927 194.7% 50.6% 4,808 3,193 314 YTD 2014 YTD 2015 YTD 2014
Slide 6: Interest Rates and Debt Composition
INTEREST RATES AND DEBT COMPOSITION. Debt Composition 2008 2015(1) 31% 40% 60% 69% Working Capital Fleet Benchmark Financial Adjusted Debt / Adjusted EBITDAR 7.9x 7.3x 6.4x 5.1x 4.8x 3.7x 20% 80% 2.1x Interjet Gol Avianca LATAM GAM Volaris Copa Low Cost Airlines Full Service Airlines (1) Information
Slide 7: Solid Performance in Mexican Market
SOLID PERFORMANCE IN MEXICAN MARKET. 2Q15 Domestic Market Share Domestic Passenger Growth Millions of Passengers 1.3% 3.0% +9.8% 3.15 2.87 11.1% 34.3% 24.1% 25.4% 2Q14 2Q15 2Q15 International Market Share International Passenger Growth Millions of Passengers 16.1% +25.4% Otras 31.2% 1.53 17.2% 1.22
Slide 8: Network Enhancement
INVESTING IN OUR FUTURE: NETWORK ENHANCEMENT. Strengthening our network with new Network Enhancement in 2015 destinations and frequencies: • Increased presence in Central & South America: Managua, Panama and Medellin. • Strengthened service to USA & Canada: Mexico City to Boston, Toronto and Vancouv
Slide 9: Revenue Management Strategy Focused on RASK
REVENUE MANAGEMENT STRATEGY FOCUSED ON RASK. Ancillary Revenues per Passenger • Competitive pricing with better segmentation to drive $7.90 USD volume while protecting yields. $7.50 $7.30 • Capturing marginal VFR and leisure passengers with competitive pricing in advance purchase. $5.90 • Building s
Slide 10: Unrelenting Focus on Costs
UNRELENTING FOCUS ON COSTS. Cost control has also been key in the transformation of the Mexican Airline Industry. Mexican Carriers have proven their ability to cut costs, with Aeromexico becoming the most efficient Full Service Carrier in the Americas. Airlines in Americas, CASK Stage Length Adjuste
Slide 11: Investing in Our Future: People
INVESTING IN OUR FUTURE: PEOPLE. • Global Management Team that combines experience of International Airlines. • New Labor Contracts for new employees. Potential Labor Cost Savings 11
Slide 12: Investing in Our Future: Aeromexico Fleet Plan
INVESTING IN OUR FUTURE: AEROMEXICO FLEET PLAN. Average Fleet type Model 4Q14 4Q15E Age E-145 24 17 13.2 E-170/175/190 38 44 5.1 Regional 62 61 737-700 24 19 9.8 737-800 25 31 5.7 Narrow Body 49 50 B767 4 0 23.2 B787 5 8 0.9 B777 4 4 10.9 Wide Body 13 12 Total 124 123 8.4 12 Source: Grupo Aeromexico
Slide 13: Investing in Our Future: Aeromexico Fleet Plan
INVESTING IN OUR FUTURE: AEROMEXICO FLEET PLAN. Fleet Plan renewal provides CASK efficiencies, maintaining flexibility and reducing ownership cost. Fleet Plan Today Long term Leased vs. Owned E-145 • Moving towards a more balanced split of owned vs leased aircraft E-170/175/190 E-170/190 through our
Slide 14: Effective Risk Management
INVESTING IN OUR FUTURE: EFFECTIVE RISK MANAGEMENT. Reducing exposure to external factors, building flexibility in our fleet plan. Economic Cycle Exchange Rate Exposure Aircrafts Revenues 300 250 MXN 42% USD 200 58% Reduced risk from Fleet plan 150 flexibility exchange rate Costs fluctuations. 100 M
Slide 15: Developing Partnerships
INVESTING IN OUR FUTURE: DEVELOPING PARTNERSHIPS. Strategic alliances have contributed to Aeromexico’s increased connectivity and premium product. Aeromexico is the only Mexican carrier in an international alliance. Club Premier Loyalty Program Delta Air Lines Alliance • Aeromexico has a 51% investm
Slide 16: Strategic Alliance: Potential Joint Network in US-MEX Transborder Market
STRATEGIC ALLIANCE: Potential Joint Network in US-MEX Transborder market POTENTIAL JOINT NETWORK FOR MEXICO – US TRANSBORDER MARKET • AM and DL have filed an application with the US DOT and Mexican Competition Authorities (COFECE) seeking antitrust immunity for a new joint venture on flights between
Slide 17: Enhancing Product for Our Customers
INVESTING IN OUR FUTURE: ENHANCING PRODUCT FOR OUR CUSTOMERS. New Services and Products Awards Best Airline in Mexico, 2015. By Global Traveler magazine, for the 5th consecutive year. Best Domestic Airline, 2015. Awarded in this year's first edition of the Food & Travel Reader’s Choice Awards. PAX I
Slide 18: New Mexico City Airport Key Objectives
INVESTING IN OUR FUTURE: NEW MEXICO CITY AIRPORT KEY OBJECTIVES. Strategic opportunity for Mexico to create and develop the best global hub in Latin America. Designed by award winning Architect Norman Foster, who was also architect for Hong Kong and Beijing International Airports, amongst other glob
Slide 19: Once in a Lifetime Opportunities Ahead with New Mexico City Airport
ONCE IN A LIFETIME OPPORTUNITIES AHEAD WITH NEW MEXICO CITY AIRPORT. Mexico City Airport is geographically well positioned to capture connecting passengers from the Americas. Total Air Passengers Origin and Destination between USA and Latin America Direct Connecting Flight 44% = 31.8 mm 56% - 4% of
Slide 20: AS AEROMEXICO. “#)
AS AEROMEXICO. “#)
Grupo Aeroméxico — Investor Presentation (September 2015) on 6ix