LATAM Airlines Group SA · BCS:LTM
LATAM Airlines Group SA — Q1 2016 Earnings Presentation
12 slides from LATAM Airlines Group SA's earnings presentation, May 12, 2016
Slide 1: First Quarter 2016 Results Presentation
First Quarter 2016 Results Presentation May, 2016 12/05/2016
Slide 2: First Quarter 2016 Highlights
First Quarter 2016 Highlights The Company reported an operating margin of 9.4% and a net income of US$102 million, maintaining its operating margin guidance of 4.5% - 6.5% for FY2016 LATAM is adjusting its guidance for domestic capacity reductions in Brazil from 8% - 10% to a reduction of 10% - 12%
Slide 3: Q1 2016 Financial Summary
Q1 2016 Financial Summary (US$ Millions) 1Q16 1Q15 Change Total Operating Revenues 2.328 2.791 -16,6% Passenger 1.958 2.344 -16,4% Cargo 276 350 -21,2% Total Operating Costs -2.109 -2.564 -17,8% Operating Income 219 227 -3,5% Operating Margin 9,4% 8,1% 1,3pp Net Income 102 -40 - Foreign exchange gai
Slide 4: LATAM Operating Statistics Q1 2016
LATAM Operating Statistics Q1 2016 System Capacity Capacity Traffic Load Factor RASK (US Cents) International +9.4% +10.5% 84.8% 5.7 (Long Haul & Regional) 54% (+0.8 p.p.) (-21.1%) +2.9% Domestic Brazil -8.4% -8.9% 82.5% 5.0 in BRL 29% (-0.5 p.p.) (-24.6%) 17% SSC Domestic +7.4% +9.1% 83.7% 7.3 (+1.
Slide 5: Our strategy is delivering results
Our strategy is delivering results CASK-equivalent (US cents) CASK-equivalent ex–fuel (US cents) -17.4% -9.1% 6.2 6.1 4.1 4.0 4.8 5.1 3.6 3.6 4.2 3.3 2013 2014 2015 Q1 2015 Q1 2016 2013 2014 2015 Q1 2015 Q1 2016 5
Slide 6: Gradual process towards a unified image
Gradual process towards a unified image
Slide 7: We continue to strengthen our network, as new routes will begin in 2016
We continue to strengthen our network, as new routes will begin in 2016 NETWORK New routes for 2016 • Lima – Washington D.C. • Lima – Montevideo Lima • Lima – Antofagasta Sao Paulo • Lima – Salta • Lima – Rosario • Lima – Mendoza (2017) • Sao Paulo - Johannesburg Santiago 7
Slide 8: LATAM Fleet Plan 2016 - 2018
LATAM Fleet Plan 2016 - 2018 Expected reduction of US$2.0 - 3.0 billion in fleet assets 327 329 336 345 11 8 8 10 76 81 82 76 +24 aircraft +20 aircraft +20 aircraft -22 aircraft -13 aircraft -11 aircraft 240 243 247 255 2015 2016 2017 2018 Fleet Commitments Narrow Body Wide Body Freighters (US$mm) 1
Slide 9: LATAM Credit Metrics
LATAM Credit Metrics Adjusted Net Debt(1)/EBITDAR LTM Cash and Equivalents as % of LTM revenues US$1.3bn 5.9 13.4% 13.9% 5.8 Dec 15 Mar 16 Dec 15 Mar 16 (1) Adjusted for the capitalization of operating leases (7x yearly expense) 9
Slide 10: Fuel and FX exposure
Fuel and FX exposure LATAM Fuel Hedge for 2016 Portfolio 2015 Portfolio 2016 63% 27% 27% 37% 27% 11% 1Q16 2Q16 3Q16 4Q16 LATAM FX Hedge for 2016 170 176 180 90 1Q16 2Q16 3Q16 4Q16 ¹Company information as of May, 2016. 10
Slide 11: Guidance 2016
Guidance 2016 2016 Previous Guidance New Guidance ASK Growth (Passenger) Total Network (1%) - 2% (1%) - 1% International 3% - 5% 3% - 5% Brazil Domestic (8%) - (10%) (10%) - (12%) SSC Domestic 6% - 8% 6% - 8% ATK Growth (Cargo) 0% - (2%) (2%) - (4%) Operating Margin 4.5% - 6.5% 4.5% - 6.5% 11
Slide 12: Thank you
Thank you www.latamairlinesgroup.net InvestorRelations@lan.com