Aegean Airlines Sa · ATHEX:AEGN
Aegean Airlines Sa — Investor Presentation (November 2016)
28 slides from Aegean Airlines Sa's investor presentation, Nov 21, 2016
Slide 1: Corporate Presentation
Corporate Presentation November 2016
Slide 2: Quality & Award winning airline
Quality & Award winning airline • Full Service Carrier Traffic in RPKs (m) – Focus on quality, efficiency, 12,000 productivity 10,000 • Fleet of 61 Aircraft 8,000 – 47 Airbus A320 family 6,000 5x – 14 Turboprops 4,000 • Star alliance member 2,000 • Award winning airline 0 – 7x skytrax best regional
Slide 3: Athens main hub + 6 other A/C bases in Greece and Cyprus
Athens main hub + 6 other A/C bases in Greece and Cyprus 2016 :145 destinations % international activity by 111 international THESSALONIKI source market Western Europe: 55% 34 domestic Cyprus: 10% Central Europe: 25% Middle East: 10% ATHENS KALAMATA RHODES CHANIA HERAKLION LARNACA % inte
Slide 4: Last decade at a glance
Last decade at a glance Growing international / seeking improvements in network, costs / Consolidation 16,000 ASKs Revenue 983 120 Pre‐tax profit / margin 14,668 912 14,000 850 100 12,194 12,000 10,732 €m 683 80 563 10,000 9,139 516 8,308 440 60 8,000 261 6,216 40 6,000 20 3,692 4,023 2% 6% 9% 10% 7
Slide 5: Rapid growth following acquisition of Olympic
Rapid growth following acquisition of Olympic Using synergies to expand Fleet 61 Passengers (m) 58 11.6 Turboprop 50 10.1 Airbus 45 8.8 2x +17 jet 6.1 30 2012 2013 2014 2015 2012 2013 2014 2015 2016 Domestic International Network ‐ Destinations ASKs 134 119 +60% 104 2x 65 14,668 12,194 10,732 9,139
Slide 6: Network, cost synergies and market dynamics led to healthy financial performance in 2013-2015
Network, cost synergies and market dynamics led to healthy financial performance in 2013‐2015 Strong incoming traffic offsets impact of weak local demand EUR m FY:13 FY:14 FY:15 yoy Sales 850.0 911.8 983.0 8% EBITDAR 181.8 209.5 217.3 4% EBITDAR margin 21% 23% 22% EBITDA 90.9 118.8 111.2 ‐6% EBT 70.
Slide 7: Market update
Market update 2016 challenges weigh on KPIs and financial results Athens / Thessaloniki / Seasonal / Leisure regional Domestic Larnaca Greek airports • Weak economy • Less seasonal • Resilient traffic • Direct / Indirect Taxation characteristics characteristics since the increases • Local / price se
Slide 8: Traffic & Tourist arrivals 2016
Traffic & Tourist arrivals 2016 Athens ‐ tourist arrivals by air Total Market 1H15 1H16 YOY JULY AUG SEP YTD 18% 17% Traffic (in m) 16% 15% Domestic 3.2 3.6 12% 8% 6% 12% 11% 14% 12% 11% Athens Intl 5.1 5.4 7% 12% 10% 15% 9% 10% 10% 10% Rest of GR Intl 7.1 7.5 6% 9% 6% 12% 8% 8% 6% 6% 4% Tourist 4%
Slide 9: 9M 2016 operating results
9M 2016 operating results Q2 challenging given supply/demand mismatch but strong Q3 • Winter months become tougher as the company grew fleet and network • Base effects weigh on utilization given timing of A/C deliveries • Healthy Q3 demand and network synergies deliver improved results Capacity Q1:1
Slide 10: 9M 2016 Key Financial Highlights
9M 2016 Key Financial Highlights • Yield pressures continues • Profitability impact on demand weakness in Q2 but rebounds in Q3 • Fuel / distribution cost benefits vs Utilization/maintenance cost pressures Q1:15 Q1:16 Change Q2:15 Q2:16 Change Q3:15 Q3:16 Change 9m:15 9m:16 Change Key Headlines in E
Slide 11: Healthy cashflow generation
Healthy cashflow generation Cashflow 2015 (EUR m) 21 30 10.4 18 93 5 50 218 237 Cash & financial operating Total changes in Interest & tax Capex Net pdps OA acquisition Dividend Finance leases Cash & financial investments the cashflow before working capital investments at the beginning of the workin
Slide 12: Significant growth out of Athens in the last 4 years
Significant growth out of Athens in the last 4 years *Number of routes out of Athens 2016 71 International routes 2012 22 International routes 2016 101 total routes 12 2012 40 total routes
Slide 13: Connecting Athens with Europe, Middle East and Cyprus
Connecting Athens with Europe, Middle East and Cyprus NORTH NORTH WEST Warsaw, EAST Budapest, Kiev, Moscow, Prague, Helsinki, St. Petersburg, Sofia, Oslo, Tallinn, Bucharest,Tirana, Vienna,Copenhagen, Belgrade, Dubrovnik, Krakow Ljubljana, Split Brussels, Düsseldorf, Hamburg, Frankfurt, Munich, Stut
Slide 14: Delivers 3x network flows
Delivers 3 x network flows HUB support & defense 16% ytd growth in connecting traffic in 2016 AIA Transfer Pax Departing from Athens connecting 1,400 passengers: 25% of total 1,200 1,000 More than 3x 800 600 400 200 0 2008 2010 2013 2014 2015 14
Slide 15: Summary
Summary Our basis Our & Industry dynamics strategy • Solid Balance Sheet • Consolidate bases and activity to protect • Efficient cost structure profitability and improve KPIs • Strong positioning on key markets • Further exploit network synergies and • Flexibility connectivity • Weak economy • Distr
Slide 16: Appendix
Appendix 16
Slide 17: Shareholder Structure
Shareholder Structure 33.6% 35.4% Th. Vassilakis * Other pre‐IPO shareholders Free Float 31.0% Listed on the Athens Exchange *11.6% controlled through Autohellas 17
Slide 18: Profit & Loss
Profit & Loss P&L FY:14 FY:15 In % 9M:15 9M:16 In% In € millions ‐ Consolidated Results Group change Group change Scheduled Services 748.6 827.4 11% 663.6 699.3 5% Charter 61.4 45.7 ‐25% 42.0 34.8 ‐17% Other (cargo, service charge, executive aviation) 101.9 109.8 8% 86.7 85.8 ‐1% Total revenue 911.8
Slide 19: Key Operating Statistics
Key Operating Statistics FY:14 FY:15 In % 9M:15 9M:16 In% Group change Group change RASK (Revenue per ASK, in € cents) 7.6 6.8 ‐10% 7.0 6.4 ‐8% Yield (Revenue per RPK, in € cents) 9.6 8.9 ‐8% 9.0 8.4 ‐7% CASK (EBITDAR level, in € cents) 5.8 5.3 ‐8% 5.3 5.0 ‐6% CASK (EBITDAR level, in € cents) ‐ excl
Slide 20: Balance Sheet
Balance Sheet In EUR ,000 BALANCE SHEET GROUP 31/12/2014 31/12/2015 BALANCE SHEET GROUP 31/12/2014 31/12/2015 Intangible assets 47,908 47,602 Share capital 46,421 46,421 Goodwill 39,756 39,756 Share premium account 72,776 72,776 Tangible assets 80,489 103,938 Other reserves ‐1,444 ‐13,187 Advances f
Slide 21: Cashflow
Cashflow Cash flow Statement in ,000 31/12/2014 31/12/2015 Profit / (loss) before tax 94,890.7 100,316.9 Depreciation of tangible assets 12,551.2 14,010.0 Loss from impairment of assets 554.0 (326.3) Provisions 2,718.3 (18,007.8) Foreign currency exchange (gains) / losses 8,432.0 (7,850.8) (Profit)
Slide 22: Competitive cost structure
Competitive cost structure CASK vs stage length – sector comparison • Lean cost structure 12.0 10.0 • Synergies with Olympic CASK in EUR cents 8.0 • Scale economies 6.0 AEGEAN Full Service Carriers 4.0 • Cost efficiency focus 2.0 LCC 0.0 CASK in EUR cents (2015) 0 500 1,000 1,500 2,000 2,500 3,000 S
Slide 23: Tourist arrivals by source country
Tourist arrivals by source country Greek Tourism - breakdown by Top 10 European Source Markets source market (2015) 2015 Arrivals % total 2015/2014 (m) Europe Growth EU Germany 2.5 19% 22% 79% UK 2.4 18% 15% France 1.5 11% 4% Italy 1.2 9% 32% Poland 0.7 5% 22% Rest Netherlands 0.6 5% ‐3% Europe Belg
Slide 24: Tourist arrivals by air
Tourist arrivals by air • 2010‐2015 => +50% growth in tourist arrivals, Athens potential remains Athens (m) Tourist arrivals by air (m) 4.2 3.4 3.1 15.5 2010 2014 2015 14.6 10.6 Rest of Greece (m) 11.3 11.3 7.5 2010 2014 2015 2010 2014 2015 Source: SETE 24
Slide 25: Total market traffic
Total market traffic • Despite 27%‐28% GDP decline 2008‐2015 market grows by 24% • Athens has recovered to pre‐crisis levels • Domestic also @ pre‐crisis on significant yield pressure International ‐ Athens International ‐ rest of GR airports 23 23 12 20 11 11 10 10 18 17 18 18 10 9 16 16 8 8 2007 2
Slide 26: Revenue Breakdown
Revenue Breakdown shift to international PSO Revenue Domestic Revenue International Revenue 56% 66% 70% 75% 44% 28% 25% 25% 2009 2012 2013 2015 2013: Acquisition of Olympic 26
Slide 27: Aegean Share
Aegean Share • Listed in Athens Exchange • Bloomberg AEGN GA / Reuters AGNr.AT • IPO : July 2007 / €7.60 IPO price • Dividends / Returns: – DPS FY08 €0.25 – DPS FY09 €0.13 – Capital return FY13 €1.00 – DPS FY14 €0.70 – DPS FY15 €0.70 • Contact: investors@aegeanair.com +30 210 626 1660 27
Slide 28: 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
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