Air Arabia PJSC · DFM:AIRARABIA
Air Arabia PJSC — Investor Presentation (November 2008)
15 slides from Air Arabia PJSC's investor presentation, November 2008
Slide 1: Air Arabia PJSC Investor Presentation
Air Arabia PJSC Investor Presentation November 2008 November 2008 -1-
Slide 2: Disclaimer
Disclaimer Information contained in this presentation is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the company. Neither we nor our advisors make any representation regarding, and assumes no responsibility or liability
Slide 3: Agenda
Agenda Air Arabia at a Glance Financial Highlights November 2008 -3-
Slide 4: Highlights
Highlights Route Network – as of December 2007 A national carrier of the UAE… Established in 2003 by the Government of Sharjah First and largest low-cost airline in the MENA region 5.03 billion RPK 2.5x the number of passengers as its closest LCC rival Current fleet of 16 (Oct 08) Airbus 320s Networ
Slide 5: Experienced Management Team
Experienced Management Team November 2008 -5-
Slide 6: Drive Growth Through an Aggressive Expansion Plan
Drive Growth Through an Aggressive Expansion Plan Significant Route and Fleet Expansion Planned, Supported by Sharjah Airport Expansion 5 Hour Flying Radius (Sharjah Hub) We currently serve only 44 out of the potential 200 airports within 5-hours flying radius November 2008 -6-
Slide 7: Highly Favorable Home and Regional Market Dynamics
Highly Favorable Home and Regional Market Dynamics Strong Air Traffic Growth Projected in Our Target Regions International Air Traffic Growth by Key Route Area Middle East Passenger Traffic(1) 270 7.1% 6.0% AAGR % 2005A-2010E Passengers in MM 5.3% 5.3% 81 Middle East Routes All International Routes
Slide 8: Highly Profitable Low Cost Carrier Business Model
Highly Profitable Low Cost Carrier Business Model Consistently Achieved the Highest Level of Aircraft Utilization in the A320 Family * 100.0 99.8 99.6 Operational Reliability % 99.4 Avg. A320 99.2 99.0 98.8 98.6 98.4 98.2 98.0 7 8 9 10 11 12 13 14 15 Daily Utilization (Hours) *Data indicated for Q1
Slide 9: Consistent Load Factors and Passenger growth
Consistent Load Factors and Passenger growth No.1 for Load Factor 2007 Historic Load Factor vs Pax Numbers Company Load Factor (%) Air Arabia 86.0 400,000 100.0% EasyJet 84.6 300,000 80.0% Wizz Air 83.0 60.0% Ryanair 82.0 200,000 40.0% Virgin Blue 81.7 100,000 20.0% Allegiant 81.3 0 0.0% JetBlue Air
Slide 10: Passenger and Aircraft Growth
Passenger and Aircraft Growth Number of Destinations Fleet Size 16 15 45 41 37 14 40 32 12 11 35 30 10 23 8 25 8 20 15 6 5 15 3 4 10 5 5 2 0 0 2003 2004 2005 2006 2007 08 Q3 2004 2005 2006 2007 08 Q3 Total Passengers and Load Factor Geographic Distribution 3,000 2,700 2,602 100% Central Asia, 79% 80
Slide 11: Historical Financial Performance (Group)
Historical Financial Performance (Group) Revenues Gross Profit Gross Profit (AED in MM) 350 318 30.0% 1,600 1,495 25.9% 272 Revenues (AED in MM) 300 25.0% 1,400 1,225 18.2% % Margin 250 17.4% 20.0% 1,200 200 15.8% 1,000 12.5% 130 15.0% 749 150 800 100 65 10.0% 600 411 50 24 5.0% 400 192 0 0.0% 200 2
Slide 12: Highly Profitable Low Cost Carrier Business Model
Highly Profitable Low Cost Carrier Business Model Revenue/Passenger – 9 Mths 2007 Vs. 9 Mths 2008 Cost/Passenger – 9 Mth 2007 Vs. 9 Mths 2008 575 431 455 311 Revenue/Passenger (AED) Cost/Passenger (AED) Q3 2007 Q3 2008 Q3 2007 Q3 2008 26% Y-o-Y Growth 39% Y-o-Y Increase Cost/Passenger – Excluding fu
Slide 13: Operating costs as a percentage of revenue
Operating costs as a percentage of revenue 100.0% 4.6% 90.0% 13.6% 3.7% 3.7% 3.1% 12.5% 2.3% 80.0% 14.3% 9.2% 14.4% 11.9% 70.0% 11.4% 7.0% 9.1% 8.9% 11.4% 10.9% 10.3% 60.0% 9.9% 11.0% 9.7% 50.0% 14.4% 13.5% 13.9% 11.8% 40.0% 30.0% 28.5% 32.4% 42.6% 31.2% 31.7% 20.0% 10.0% 6.5% 5.1% 4.2% 2.9% 7.6% 4.
Slide 14: Track Record of Profitable Expansion
Drive Growth Through an Aggressive Expansion Plan Track Record of Profitable Expansion # of Destinations vs. Net Profit Margin Breakeven Load Factor vs.*Actual Load Factor Net profit margin (%) 50 30.0% 100% 41 40 35 26.0% 25.0%25.0% 80% Destinations 80% 86% 86% 30 27 20.0% 60% 77% 79% 73% 75% 15.0%
Slide 15: Operating Statistics
Operating Statistics 2004 2005 2006 2007 9mth 08 # of Aircrafts 3 5 8 11 15 Average Aircrafts 3.0 4.9 6.0 9.5 14 Destinations 15 23 32 37 41 # of Passengers (Millions) 0.6 1.1 1.7 2.7 2.6 RPK (Billions) 1.2 2.5 3.7 5.0 5.2 ASK (Billions) 1.8 3.2 4.7 5.8 5.9 Average Load Factor 68.0% 79.0% 80.0% 86.0
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