Qantas Airways Limited · ASX:QAN
Qantas Airways — Macquarie Australia Conference 2018
13 slides from Qantas Airways's conference presentation, May 3, 2018
Slide 1: Qantas Group - Positioned for Growth and Sustainable Returns
Qantas Group - Positioned for Growth and Sustainable Returns Tino La Spina, Qantas Group Chief Financial Officer Macquarie Australia Conference 3 May 2018
Slide 2: Third Quarter FY18 Trading Update
Third Quarter1 FY18 Trading Update • Q3 trading update released 2 May 2018 Underlying Profit Before Tax • Q3 total revenue up 7.5%2 to $4.25b $1.6b • Strong Unit Revenue3 performance in both the domestic and international $1.4b markets $1.2b • On track for a record result despite increased fuel cost
Slide 3: Having Come Through Qantas Transformation, the Group is in a Position of Strength
Having Come Through Qantas Transformation, the Group is in a Position of Strength Group Operating Margin1 Return on Invested Capital of >20% (12 months to 31 Dec 2017) Commencement 11% 10% of accelerated All segments delivering ROIC >10% Transformation 8% Program Targeting ongoing transformation gro
Slide 4: Financial Framework Aligned with Shareholder Objectives
Financial Framework Aligned with Shareholder Objectives 1. Maintaining an Optimal 2. ROIC > WACC2 3. Disciplined Allocation Capital Structure Through the Cycle of Capital Minimise cost of capital by Deliver ROIC > 10%3 Grow invested capital with targeting a net debt range of through the cycle
Slide 5: Delivering on Our Strategy to Respond to Emerging Global Forces
Delivering on Our Strategy to Respond to Emerging Global Forces Understanding the Long-term Context New Centres of Shifting Customer Customer Demand Rapid Digitisation and Resource Constraints and Workforce and Geopolitical the Rise of Big Data and Climate Change Preferences Influence Clear Strategi
Slide 6: Maximising our Leading Domestic Position Through Dual Brand Strategy
Maximising our Leading Domestic Position Through Dual Brand Strategy • Disciplined approach to capacity growth Average Domestic Market Capacity Growth2 • Growing margins and maintaining advantage to competitors 2.2% 0.7% • Holding corporate market share, growing SME and leisure -1.4% -0.5% -0.9% • E
Slide 7: Building a More Resilient Qantas International
Building a More Resilient Qantas International Fleet Renewal Network and Grow with Asia Strategic Airline Attracting the High- Hub1 Evolution Partnerships Yield Customer A MORE SUSTAINABLE BUSINESS DELIVERING ROIC > 10% 7 1. Perth hub and return to Singapore hub commenced in March 2018.
Slide 8: Aligning Qantas and Jetstar with Asia's Growth
Aligning Qantas and Jetstar with Asia’s Growth FY18 Group International Capacity1 North America UK2 Asia2 The USA has strong market UK represents one of the The rise of the Asian middle growth. Qantas continues to be slowest growing markets whilst class has provided significant the market share lead
Slide 9: Diversification and Growth at Qantas Loyalty
Diversification and Growth at Qantas Loyalty Qantas Loyalty targeting 7-10% CAGR1 in earnings2 through Qantas Loyalty EBIT2 ($M) FY22: $500m - $600m2 7-10% • Growing core Qantas Frequent Flyer and Business Rewards with CAGR New member and partner expansion Businesses 10% • Increasing earnings mix fr
Slide 10: Investing in Customer, Brand, Data and Digital
Investing in Customer, Brand, Data and Digital Technology-enabled Innovative Onboard Global Lounge Program Award-winning Service Journeys Product QANTAS CONTINUES TO BE RECOGNISED IN LEADING GLOBAL AIRLINE AWARDS 10
Slide 11: Focus on People, Culture and Leadership
Focus on People, Culture and Leadership Engagement Diversity Leadership and Talent • Top 10 companies to work for in • 35% of senior roles held by women • Investment in development and Australia1 training, across-Group careers • Enhanced parental leave, mental • Ongoing investment in customer health
Slide 12: Investment Proposition
Investment Proposition Integrated portfolio, stable earnings, financial strength Domestic Airlines International Airlines • Dual brand strategy delivering sustainable margin advantage to respective • Leading two airlines for outbound Australia competitors • Structurally transformed Qantas Internatio
Slide 13: Disclaimer & ASIC Guidance
Disclaimer & ASIC Guidance This Presentation has been prepared by Qantas Airways Limited (ABN 16 009 661 901) (Qantas). Summary information This Presentation contains summary information about Qantas and its subsidiaries (Qantas Group) and their activities current as at 3 May 2018, unless otherwise