Syn Prop e Tech SA · BMFBOVESPA:SYNE3
Syn Prop e Tech SA — Azul — Q2 2020 Earnings Presentation
14 slides from Syn Prop e Tech SA's earnings presentation, Aug 13, 2020
Slide 1: 2Q20 Earnings Results
2Q20 Earnings Results August 13th, 2020
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation is only a summary and does not purport to be complete. This presentation has been prepared solely for informational purposes and should not be construed as financial, legal, tax, accounting, investment or other advice or a recommendation with
Slide 3: First time Brazilian carrier elected "Best of the Best"
First time Brazilian carrier elected “Best of the Best” #1 Overall in the World #1 Airline in Latin America #1 Airline in Brazil #1 Economy in the World #1 Economy in Latin America #1 Low Cost Carrier in Latin America Tripadvisor Ranking #1 #6 #2 #7 #3 #8 #4 #9 #5 #10 3
Slide 4: Caring for the health and safety of our crewmembers and customers
CARING FOR THE HEALTH AND SAFETY OF OUR CREWMEMBERS AND CUSTOMERS Daily temperature checks of all crewmembers Mandatory mask or face covering HEPA cleaning filters remove 99.9% of airborne particles Intensified aircraft cleaning New boarding process: Tapete Azul (blue carpet) ̶ Displays seat numbers
Slide 5: Fleet flexibility
FLEET FLEXIBILITY Diversified and Right-Sized Aircraft for the Brazilian Market Targeted Routes by Fleet Type 17 aircraft Low cost Cessna per trip 9 seats 33 aircraft ATR 70 seats 53 aircraft Embraer 106-136 seats 42 aircraft Low cost Airbus per seat 174-214 seats ATR & Cessna E-Jets A320neo Family
Slide 6: Increase of immediate liquidity position
INCREASE OF IMMEDIATE LIQUIDITY POSITION Cash Balance Debt Amortization (R$ billion) (R$ million) 2.3 2,386 2.2 30 Agreement to be rolled over beyond 2021 1.3 1.6 2,356 556 520 0.9 284 309 0.6 542 26 356 210 296 74 14 14 14 12 164 March June 3Q20 4Q20 1Q21 2Q21 2H21 2024 Cash Receivables BRL USD 6
Slide 7: Other sources of liquidity
OTHER SOURCES OF LIQUIDITY • Strong balance sheet Azul Assets ̶ No restricted cash (R$ million) ̶ No minority interest in subsidiaries 1,363 • Wholly-owned loyalty program 2,273 • TAP investment 6,644 ̶ Bond principal plus interest R$689 million 754 ̶ Equity stake R$65 million 623 ̶ TAP to receive 1
Slide 8: Azul's Management Plan Update
AZUL’S MANAGEMENT PLAN UPDATE 8
Slide 9: Azul Management Plan: Support from all stakeholders
AZUL MANAGEMENT PLAN: SUPPORT FROM ALL STAKEHOLDERS Over R$7.0 Billion in cash savings and deferrals until December 2021 Crewmembers Lessors Payroll initiatives aimed at adjusting to new demand Comprehensive renegotiation of lease terms environment R$3.2 billion in working capital reduction until De
Slide 10: Significant lease liability reduction
SIGNIFICANT LEASE LIABILITY REDUCTION Strong support from leasing partners ̶ New payment profile resulting in R$3.2 billion working capital relief until Dec 2021 ̶ Better cash generation than power-by-the-hour ̶ Lease liability reduction of 21% (present value of future payments) Lease Liability New
Slide 11: Faster than expected network recovery
FASTER THAN EXPECTED NETWORK RECOVERY Total Capacity Recovery Azul Routes Leadership (% of previous year) Network growth focused on domestic market ̶ True to original network strategy: only carrier in 85% of markets ̶ 88 destinations and 404 daily flights to be served by September ~60% ̶ Increase in
Slide 12: Cargo performance
CARGO PERFOMANCE • Stable revenue even with dramatic network reduction Mainline ASK Cargo Revenue YoY Change YoY Change • Adapted passenger aircraft to transport cargo • Prioritized high-yield express cargo 48% • 27% market share (#1 in Brazil) • E-commerce represented 17% of cargo revenue -83% -76%
Slide 13: Well positioned to navigate COVID-19 crisis
WELL POSITIONED TO NAVIGATE COVID-19 CRISIS Successful execution of management plan with over R$7 billion in cash savings Liquidity runway greater than 24 months Largest domestic network with flexible fleet creates unique possibilities for network recovery Azul Cargo well positioned to lever
Slide 14: Investor Relations
I N V E S T O R R E L AT I O N S +55 11 4831 2880 invest@voeazul.com.br