Aegean Airlines Sa · ATHEX:AEGN
Aegean Airlines Sa — Investor Presentation (December 2019)
35 slides from Aegean Airlines Sa's investor presentation, December 2019
Slide 1: Corporate Presentation
Corporate Presentation December 2019
Slide 2: Aegean Airlines at a glance
Aegean Airlines at a glance Flying to 151 destinations in 44 Countries AEGEAN become Europe’s Best Regional Airline and hold first place for the Quality of its Services. Sustainable business model with key Create Value strategic focus area in operational quality and cost efficiency . Efficient Opera
Slide 3: 20 years of experience
20 years of experience 2018 Airbus order of up to 42x A320neo aircraft. 2007 2011 Sign MoU with Pratt & 1999 2003 Listing in Athens International traffic Whitney to power up to 62 Launch scheduled First profitable year Exchange, raising exceeds domestic Airbus A320neo Family flights; pre-tax basis;
Slide 4: 5 Pillars
Continue to develop our strengths and focus on our key pillars Strong Brand Powerful Names Partnership 3.146 Professional and Homogenous Fleet highly dedicated Current: Employees 49x Airbus 320 CEO family Expected: Extensive 46x Airbus 320 Network NEO family - Customer and Services; 5 Pillars - Netw
Slide 5: Gain leverage from Olympic Air acquisition
Gain leverage from Olympic air acquisition • Aegean acquires a historical brand name in Greek aviation in 2013; • Scale Economies; • Network synergies, connectivity gains, full access to all domestic destinations; • Complementary fleet; • Consolidating management services (personnel, facilities, sys
Slide 6: Passenger and Load Factor Evolution
Passenger and Load Factor Evolution 83,2% 83,9% Load Factor Evolution 78,3% 78,3% 76,9% 77,4% 74,3% 68,1% 68,9% Capacity per flight 166 168 155 153 148 144 139 132 14,0 127 13,2 12,5 11,6 10,1 8,8 International Passenger Evolution (in mil.) Olympic 2,0 6,2 6,5 6,1 7,8 6,0 6,7 7,3 4,9 3,1 3,5 3,5 4,3
Slide 7: Contributing to market's growth
Contributing to market’s growth 39 Greek airports but 1 metropolis 30 Passengers AIA (in mil.) 25 16,4 12,9 14,4 20 11,7 10,6 10,1 9,9 9,5 9,9 15 8,4 8,2 10 5 5,8 6,1 6,4 7,2 7,3 7,7 5,6 4,9 4,5 4,3 5,3 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Domestic Passengers International Passen
Slide 8: Star Alliance membership: vote of confidence
Star Alliance membership: vote of confidence ❑ Aegean is a Star Alliance member since 2010, the largest global airline alliance (28 member airlines) providing benefits to both the customers and the company. ❑ Adding value to passengers’ travel experience through: - Access to a worldwide network – "G
Slide 9: Network development
Network development 2019 Schedule Aegean increased capacity with additional frequencies and new routes to Marrakech, Casablanca, Ibiza, Valencia, Sarajevo, Tunis, 151 destinations Skopje, and from Thessaloniki to Hannover. 31 domestic and 120 international to 44 countries. Improved 9M 19 operating f
Slide 10: Adding value to employees
Adding value to employees -Assessment through -40-50% of our personnel TOTAL NUMBER OF EMPLOYEES personality, technical skills, will receive incentives linked * functional test; to productivity; 3,146 -More than 40,000 -600 employees linked to candidate applications each profitability. Personnel cul
Slide 11: Customer focus
Customer focus Customer centric company always providing Catering when almost no a positive customer one else has it, experience, in a promoting Greek commoditized LCC driven Products. European Short Haul Market. The extra smile and The Inflight Magazine. attentiveness of the crew.
Slide 12: Brand recognition and preferability
Brand recognition and preferability ✓ AEGEAN has been recognized in the 2019 TripAdvisor Travelers’ Choice® awards for Airlines winning the distinctions of: ▪ Best Regional Airline Europe ▪ Best Regional Business Class Europe ▪ Best Airline in Greece ✓ Best regional Airline in Europe according to Sk
Slide 13: Next generation - 46x A320neo family
Next generation- 46x 320 neo family 2020 2x - Airbus order 11 9x - Direct leases 2021 7x-Direct leases 7 2022 8x-Airbus order 8 2023 10x-Airbus order 10 2024 10x-Airbus order 10 Strategic imperative to continue to operate a young, modern and efficient fleet. - The new fleet will facilitate replaceme
Slide 14: Multiple benefits from A320neo fleet
Multiple benefits from A320 neo fleet Quality upgrade Improved Range Fuel Savings Financial Benefits Possibilities Aegean’s specific benefits ▪ Increased seat capacity ▪ Operational ▪ The new engine option ▪ Re-contracting of per aircraft. opportunities to reach offer 15% fuel saving maintenance; No
Slide 15: Key figures 9M 2019
Key figures Operated with the same 9M 2019 number of fleet: 49 Jets and 12 Turboprops. Improved load factor by 1 pp YoY. 61 aircraft Despite increased fuel cost and negative IFRS 16 impact reported profit. 84,5% Flew 5% more YoY in 151 € 77,1 mil. net profit destinations in 44 countries. Top line gr
Slide 16: Operating Environment
Operating Environment Aegean: Strong International Passengers growth Total Greek Airports 16.000 60.000 14.000 ↑| 7% ↑| 9% 50.000 ↑| 5% 12.000 ↑| 12% 10.000 40.000 8.000 30.000 ↑| 5% 6.000 ↑| 10% 4.000 20.000 2.000 10.000 ↑| 2% ↑| 4% 0 →| 0% ↑| 1% ↑| 3% ↑| 3% Q3 2018 Q3 2019 9M 20189M 2019 FY 2017 F
Slide 17: Operational Excellence
Operational Excellence Increased asset utilization and improved load factors Total Flights Scheduled Load Factor 120.000 0,86 ↑| 1% ↑| 5% 0,84 100.000 0,82 80.000 0,80 60.000 0,78 0,76 40.000 0,74 20.000 0,72 0 2015 2016 2017 2018 9M 2019 FY 2017 FY 2018 9M 2018 9M 2019 Load factor - Scheduled (RPK/
Slide 18: Organic Growth along the years
Organic Growth along the years Available seat kilometers in millions Passenger Yield in € cents ↑| 1% ↑| 1% →| 0% 8,2 8,3 8,5 8,5 9M 2019 8,1 14.438 ↑| 8% 9M 2018 13.347 2018 17.245 ↑| 4% 2017 16.657 2016 ↑| 2% 2016 2017 2018 9M 2018 9M 2019 16.383 Passenger Number in millions ↑| 6% Revenue growth s
Slide 19: Cost discipline despite increase in jet fuel cost
Cost discipline despite increase in jet fuel cost Total operating costs in € millions CASK- EBIT level excl. fuel cost in € cents ↑| 7% ↑| 9% 960,0 ↑| 12% 5,10 884,3 827,6 812,4 5,00 725,9 4,90 4,80 4,70 4,60 4,50 2016 2017 2018 9M 2018 9M 2019 2015 2016 2017 2018 9M 2018 9M 2019 2018 Total Operatin
Slide 20: Cost evolution reflects higher activity and utilization
Cost evolution reflects higher activity and higher utilization of jet fleet; higher effective unit fuel cost Cost per ASK 9M 18 9M 19 % change Employee benefits 0,75 0,74 -1% Aircraft fuel 1,40 1,50 8% 250,0 Depreciation 0,11 0,75 n.m. 25,0% Aircraft leases 0,74 0,01 n.m. ↑|16,5% Aircraft maintenanc
Slide 21: Strong bottom line performance
Strong bottom line performance Net Income 90.000 80.000 Q3 18 Q3 19 YoY % 9M 18 9M 19 YoY % 70.000 Revenue 60.000 483,6 512,5 6% 939,3 1.031,9 10% 50.000 40.000 EBITDAR 30.000 175,1 168,7 -4% 225,1 232,3 3% 20.000 EBITDA 10.000 140,6 168,1 n.m. 125,9 230,8 n.m. 0 Pre-tax profit for FY 2017 FY 2018 9
Slide 22: Robust Balance Sheet Structure
Robust Balance Sheet Structure Assets Liabilities-Equity € 1.450,6 € 1.450,6 62 134 316 158 61 150 127 397 197 324 637 16 322 9M 19 9M 19 Cash Fleet Advances for assets acquisition Customers and other receivables Equity Finance Lease Other fixed Assets Other Assets Operating Leases Bond Other Long T
Slide 23: Appendix
Appendix + AEGEAN A STAR ALLIANCE MEMBER ‘wz
Slide 24: Working together
Working together ❑ An enduring partnership among five groups/partners1: Vassilakis, Laskaridis, Constantakopoulos, Ioannou and David families. ❑ Company’s shares are listed in the Athens Stock Exchange since 2007. 30,91% 36,70% 32,39% Vassilakis family Pre-IPO shareholders Rest 1.Constantakopoulos F
Slide 25: Current Fleet
Current Fleet Operator Finance Lease Operating Lease Manufacturer/Model Aegean Olympic Air Aegean Aegean Olympic Air Airbus A320ceo family 49 - 4 45 - Bombardier Dash 8- Q400 - 8 - - 8 Bombardier Dash 8- 100 - 2 - - 2 ATR 42-600 - 2 - - 2 Total 49 12 4 45 12 25
Slide 26: Hedging Coverage
Hedging Coverage Forward contracts in US dollars (currency forwards & options) Currency EURUSD % of estimated Average hedged Needs Coverage annual needs rate FY 2019 61% 1,19 FY 2020 Managing exposure to 50% 1,14 reduce volatility on results and target cost Commodity swaps (jet fuel swaps) certainty
Slide 27: Aegean at a glance
Aegean at a glance Consolidated results Jan – Dec Jan – Dec Change Jan – Sep Jan – Sep Change In € millions 2017 2018 in % 2018 2019 in % Revenue 1,127.6 1,187.4 5% 939,3 1.031,9 10% EBITDAR 257.3 244.9 -5% 225,1 232,3 3% EBITDA 119.8 111.4 -7% 125,9 230,8 83% Pre-tax earnings 85.8 98.6 15% 115,8 10
Slide 28: Group Operating figures
Group Operating figures Jan – Dec Jan – Dec Change Jan – Sep Jan – Sep Change 2017 2018 in % 2018 2019 in % Capacity ASKs (in millions) 16,657 17,245 4% 13.347 14.438 8% Total available seats (000) 16,082 16,847 5% 13.101 13.879 6% Total Block Hours 178,229 181,686 2% 141.138 151.189 7% Total Sector
Slide 29: Profit and Loss account
Profit and Loss account Jan – Dec Jan – Dec Change Jan - Sep Jan - Sep Change Consolidated results (in € mil.) 2017 2018 in % 2018 2019 in % Revenue Scheduled Services 963.4 1,014.9 5% 804,3 860,9 7% Charter 54.6 51.6 -5% 41,4 67,0 62% Other 109.7 120.9 10% 93,6 104,0 11% Total revenue 1,127.6 1,187
Slide 30: Balance Sheet Aegean Group
Balance Sheet Aegean Group (in € mil.) December 18 September 19 Total fixed assets 255,1 593,1 Cash & equivalents 271,7 617,7 Financial assets available for sale 18,5 19,6 Other current assets 180,7 220,2 Total assets 725,9 1.450,6 Total equity 277,9 322,1 Finance lease liabilities 22,9 15,8 Operati
Slide 31: Cashflow Aegean Group
Cashflow Aegean Group (in € mil.) Jan – Dec 2018 Jan – Sep 2019 Net cash flows from operating activities 86 307 Net cash flows from investing activities -70 -18 Net cash flows from financing activities -49 52 Net (decrease)/ increase in cash and cash equivalents -33 340 Cash at the beginning of the
Slide 32: Thank You
THANK YOU A STAR ALLIANCE MEMBER YY
Slide 33: Contact Information
Contact Information Aegean Airlines Headquarters 31, Viltanioti str., 14564,Kifissia, Greece Map T: +30 2106261519 T: +30 2106261660 F: +30 210 6261900 www.aegeanair.com https://en.about.aegeanair.com/investor-relations https://www.facebook.com/aegeanairlines https://www.instagram.com/aegeanairlines
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, objecti
Slide 35: Thank You
+ AEGEAN A A STAR ALLIANCE MEMBER %5~
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