Jazeera Airways Co. (ksc) · KSE:JAZEERA
Jazeera Airways Co. (ksc) — Jazeera Airways — FY2019 Earnings Presentation
36 slides from Jazeera Airways Co. (ksc)'s earnings presentation, Feb 12, 2020
Slide 1: FY19 Earnings Conference Call
FY19 Earnings Conference Call February 12, 2020
Slide 2: Starting Shortly…
We celebrated our first anniversary operating out of the Jazeera Terminal 5 at Kuwait International Airport. FY19 Earnings Conference Call Starting Shortly…
Slide 3: Disclaimer
Disclaimer The content and information of this document is only intended to provide users with financial and operational information about Jazeera Airways. No warrant or representation is made by Jazeera Airways for the contents of this document and in no way is the material provided in it intended
Slide 4: Agenda
Agenda The Group Today Financial Headlines Operational Milestones Outlook for 2020 Financial Review Q&A
Slide 5: The Group Today
The Group Today 2.4 13 37 830 million aircraft airports employees passenger 9 A320s In the Middle East, + 4 A320neos Europe and Asia Introduction of new Five more 1st LCC to serve Strong fares categories A320neos in 2020 GCC-UK route management
Slide 6: The Group Today
The Group Today Increased revenue from ancillary sources Signed engine maintenance contract with CFM for our A320neo engines Signed component maintenance contract with Airbus for the A320 aircraft Signed up with SABRE to enhance distribution through their GDS network
Slide 7: Financial Headlines
Financial Headlines Our team taking delivery of our second A320neo in October 2019
Slide 8: 4Q19 Operational Highlights
4Q19 Operational Highlights Passengers Load Factor Utilization Yield +28.5% +4.8% -7.0% -15.7% 4Q19: 614 k 4Q19: 75.5% 4Q19: 13.8 hrs 4Q19: KWD32.0 4Q18: 478 k 4Q18: 70.7% 4Q18: 14.8 hrs 4Q18: KWD38.0
Slide 9: FY19 Operational Highlights
FY19 Operational Highlights Passengers Load Factor Utilization Yield +20.6% +2.3% +5.8% +1.6% FY19: 2.4 mn FY19: 77.5% FY19: 14.4 hrs FY19: KWD41.5 FY18: 2.0 mn FY18: 75.2% FY18: 13.6 hrs FY18: KWD40.8
Slide 10: 4Q19 Financial Highlights
4Q19 Financial Highlights Operating Operating Net Revenue Profit Profit +11.8% -31.9% +34.8% 4Q19: KWD20.9 mn 4Q19: -KWD2.8 mn 4Q19: -KWD1.2 mn* 4Q18: KWD18.7 mn 4Q18: -KWD2.1 mn 4Q18: -KWD1.8 mn * Includes KWD1.2 mn impact of engine sales
Slide 11: FY19 Financial Highlights
FY19 Financial Highlights Operating Operating Net Revenue Profit Profit +25.9% +108.7% +124.1% FY19: KWD103.7 mn FY19: KWD14.2 mn FY19: KWD14.9 mn* FY18: KWD82.4 mn FY18: KWD6.8 mn FY18: KWD6.7 mn * Includes KWD1.2 mn impact of engine sales
Slide 12: FY19 Commercial Highlights
FY19 Commercial Highlights eCommerce Ancillary Sales Revenue 16.3% 35.0% vs. FY18 vs. FY18 26.7% 43.2% vs. 4Q18 vs. 4Q18
Slide 13: Operational Milestones
Operational Milestones We operated a special flight to Baku for the UEFA final between Arsenal and Chelsea FC
Slide 14: FY19 Achievements
FY19 Achievements Expanded Grew Strengthened network fleet team Launched 8 new routes: 3 in Took delivery of three new Hired four new key positions: Europe, 2 in the Middle East A320neos in 4Q19, bringing our COO, VP - Engineering & and 3 in Asia. The milestone fleet to 13 aircraft. Maintenance, CEO
Slide 15: FY19 Milestones
FY19 Milestones New routes New services Operations • Sabiha Gokcen, Istanbul: • Priority service • Signed Flight Hour Services April 2019 • Self-check-in kiosks at T5 agreement with Airbus • Bodrum: May 2019 • Jazeera Holidays • Signed new ground handling • London: October 2019 agreement to support
Slide 16: Milestones in Images
Milestones in Images Signed Flight Hour Services Launch of flights to LGW Launch of flights to Al Ain Agreement with Airbus Aviation Company of the Year Signed ground handling Launch of flights to Osh Launch of flight to Kathmandu agreement with SGC Introduced self-check-in kiosks Launch of flight t
Slide 17: FY19 Market Shares
100% FY19 Market Shares Only airline operating LGW. Market share for LGW + LHR: 1.6%. 10% 78% 57% 100% 48% 41% 41% Destinations launched in: 34% 23% 49% 29% 1% 13% 45% 22% 13% 42% 100% Bodrum: May 2019, on hold in 4Q 41% 100% London: October 2019 12% 66% 21% 25% Kathmandu: October 2019, only airline
Slide 18: Where Passengers Fly
Where Passengers Fly Passengers Geographic Passengers Geographic Distribution 2018 Distribution 2019 East Europe Egypt East Europe Egypt 5.7% 33.3% 7.6% 28.9% Levant Levant London 9.3% Others 6.5% 0.3% 2.9% Others 3.4% Indian Indian GCC Subcontinent GCC Subcontinent 35.4% 13.3% 35.9% 17.3%
Slide 19: Jazeera Terminal T5
Jazeera Terminal T5 FY19 KWD4.3 mn KWD2.1 mn KWD1.2 mn Revenue EBITDA Net Profit 4Q19 KWD1.2 mn KWD684 k KWD482 k Revenue EBITDA Net Profit Backlit screens VIV, business DGCA + PACI Visa entry 2.4 Retail + advertising lounge: numbers: desks: occupancy: areas: 264 sqm Completed for Operational 45% le
Slide 20: Outlook for 2020
Outlook for 2020 H.E. the Kuwaiti Ambassador to UK on board our first flight that landed at LGW airport
Slide 21: 2020 Expansions
2020 Expansions Expand Expand Introduced network fleet new fares New routes planned: Five new A320neos to be Introduced new fare categories • Sharjah, UAE delivered in 2020 at the start of 2020 to • Chittagong, Bangladesh Dhaka, enhance our position as a Bangladesh leading LCC • Qassim, KSA • Hail,
Slide 22: 2020 Expansions
2020 Expansions • From January 1, 2020, Jazeera Airways cancelled the Business Class to become a full low-cost economy carrier, with the exception of flights to Cairo and LGW • This change in offering provides better revenue opportunities with the availability of more seats in the high load factor e
Slide 23: Cost Saving Initiatives
Cost Saving Initiatives CFM PBH* for LEAP Engines • Agreement with CFM, the original equipment manufacturer (OEM) of the LEAP engines on the A320neo aircraft, covers all maintenance costs during the entire lifecycle of Jazeera’s A320neo engines • Jazeera pays an hourly charge per engine flying hour
Slide 24: Cost Saving Initiatives
Cost Saving Initiatives Part 145 Line Maintenance • Kuwait Airways Engineering has been managing Jazeera’s line maintenance since inception • The growth of Jazeera’s fleet has enabled it to execute part of the line maintenance in-house, achieving operational efficiencies • Received the Part 145 appr
Slide 25: First Flight Signed Off by Jazeera Engineers
First Flight Signed Off by Jazeera Engineers
Slide 26: 2020 Challenges
2020 Challenges 2020 is proving to be a bigger challenge than 2019 due to various factors: • The operating environment has been challenging during the early weeks of 2020 with tensions in the region and heavy competition on most of our routes • Corona virus has affected the traffic adversely though
Slide 27: Financial Review
Financial Review We landed at LGW with our first flight on October 27, 2019
Slide 28: Key Parameters 4Q19
Key Parameters 4Q19 Operating Parameters 4Q18 4Q19 CHANGE YIELD BY QUARTER (KWD) Average Aircraft 8.5 10.7 25.9% Destination Cities 26 37 42.3% Revenue Drivers 4Q18 4Q19 CHANGE Seats 675,644 813,233 20.4% Passengers 477,988 614,248 28.5% Load Factor 70.7% 75.5% 4.8% PASSENGERS BY QUARTER (000) Net Y
Slide 29: Key Parameters FY19
Key Parameters FY19 Operating Parameters FY18 FY19 CHANGE YIELD BY YEAR (KWD) Average Aircraft 8.6 9.6 11.6% Destination Cities 26 37 42.3% Revenue Drivers FY18 FY19 CHANGE Seats 2,642,110 3,093,523 17.1% Passengers 1,987,286 2,396,321 20.6% Load Factor 75.2% 77.5% 2.3% PASSENGERS BY YEAR (mn) Net Y
Slide 30: Financial Position 4Q19
Financial Position 4Q19 In KWD mn 4Q18 4Q19 CHANGE Major reasons for favorable Operating Revenue 18.7 20.9 11.8% variances Vs 4Q18 Operating Expenses 20.8 23.7 13.8% • Yield decrease year-on-year Operating Profit impact of KWD2.8 mn (2.1) (2.8) 21.9% Net Profit • Passenger increase year-on-year (1.8
Slide 31: Financial Position FY19
Financial Position FY19 In KWD mn FY18 FY19 CHANGE Major reasons for favorable Operating Revenue 82.4 25.9% variances Vs FY18 103.7 Operating Expenses 75.6 89.5 18.4% • Yield Increase year-on-year impact of KWD3.6 mn Operating Profit 6.8 14.2 108.7% • Passenger increase year-on-year Net Profit 6.7 1
Slide 32: Fuel Prices
Fuel Prices 84.9 BRENT Swap Vs. 76.8 65.0 SINGJET Swap 52.6 71.6 BRENT Swap 64.1 (USD/BBL) 54.8 SINGJET Swap 45.1 FY16 FY17 FY18 FY19 24.4% 21.2% Fuel as Percent 24.4% of Revenue 15.2% 21.2% 18.2% 15.2% 18.2% FY16 FY17 FY18 FY19
Slide 33: Balance Sheet Analysis 4Q19
Balance Sheet Analysis 4Q19 Assets have increased by ~KWD103.8 mn mainly driven by: • IFRS 16 Leased assets – KWD82.7 mn • Cash and bank balance increase of KWD17.3 mn driven by: • increased operating cash profits • cash recovered from lessors through replacement of maintenance reserves by bank guar
Slide 34: Q&A
Q&A Our team with H.E. the Kuwaiti Ambassador to UK at the landing of our first flight at LGW
Slide 35: Contacts
Contacts For more information please contact: Krishnan Balakrishnan Chief Financial Officer krishnan.balakrishnan@jazeeraairways.com Mostafa El-Maghraby Head of Investor Relations investorrelations@jazeeraairways.com Jazeera Airways KSC is listed on the Kuwait Stock Exchange Bloomberg: Jazeera KK Re
Slide 36: Thank you
Gah :? > hank you - » \