Qantas Airways Limited · ASX:QAN
Qantas Airways — Nomura Conference 2011
14 slides from Qantas Airways's conference presentation, Nov 30, 2011
Slide 1: Nomura Conference
Qantas Airways Limited Nomura Conference 30 November 2011 Qantas Group Gareth Evans Chief Financial Officer 2
Slide 2: The Qantas Group - Our Operations
The Qantas Group - Our Operations [ Qantas Group is the eleventh largest airline in the world based on passenger numbers and distance flown [ The Group’s network comprises 208 destinations in 46 countries [ The Group operates a passenger fleet of 278 aircraft1 [ Qantas Frequent Flyer is one of the w
Slide 3: Delivering Robust Results in a Challenging Environment
Delivering Robust Results in a Challenging Environment [ Underlying PBT1 in FY11 of $552m, up 46% [ Included $224m impact of significant weather events and natural disasters [ Qantas and Jetstar - two most profitable domestic airlines [ Record result for Jetstar and Qantas Frequent Flyer [ Qantas pr
Slide 4: Flexible Investment Profile
Flexible Investment Profile [ Planned net capital expenditure of $2.5bn in Aircraft deliveries (indicative timing) FY12 and $2.8bn in FY13 FY13 – FY19 – Aircraft Type FY12 FY18 FY24 [ Fleet flexibility demonstrated to date A380-800 2 2 6 [ Deferred delivery of 6 x A380 aircraft A330-200 2 1 - [ Earl
Slide 5: Multi-Brand Model is Designed to Give Customers the Experience they Desire
Multi-Brand Model is Designed to Give Customers the Experience they Desire… 9 …with Each Brand Playing a Very Specific Role World’s best experience Best loyalty program in Hassle free, low cost for business and premium the market driving travel experience for price- leisure customers unrivalled memb
Slide 6: Jetstar Group
Jetstar Group Bruce Buchanan Group Chief Executive Officer Jetstar 11 Jetstar Well-Established in Asia 4 [ Jetstar is one of the fastest growing airlines in the 6 Asia Pacific region [ Operations based across two continents and four countries [ Servicing 17 countries, 57 destinations 3 [ Combined op
Slide 7: Asia Pacific is the Largest and Fastest Growing Global Aviation Market
Asia Pacific is the Largest and Fastest Growing Global Aviation Market [ Asia Pacific LCC sector growing at 33% CAGR, but still under penetrated [ LCC profit pool to grow to A$13bn by 2020 LCC Growth Rate Major growth opportunity for LCCs in Asia Pacific: 2001-2011 LCC Share of Total Capacity by Reg
Slide 8: Jetstar is Evolving Quickly
Jetstar is Evolving Quickly Expanding Jetstar’s footprint: Leverage capital-efficient franchise operating model • Linking China to Asia Japan • Strengthening LCC via international competitive environment connectivity • Set to launch Jetstar • 10 destinations in Japan in 2012 Greater China by Greater
Slide 9: Track Record of Achieving Profitable Growth
Track Record of Achieving Profitable Growth [ Jetstar continuously profitable since 2004 FY11 FY10 VLY start-up % Revenue $m 2,613 2,197 19 [ Record result in FY11 Underlying EBIT $m 169 131 29 [ Underlying EBIT of $169m, up 29% Unit cost c/ASK1 c 4.82 4.94 (2) [ Unit cost1 down 2%, 3% adjusted for
Slide 10: Franchise Model Underpins Scalable Growth
Franchise Model Underpins Scalable Growth Utilise Best of Local Talent and Group Expertise Australia & New Asia Pacific New International Japan Zealand (Singapore) (Vietnam) Opportunities (Domestic) 19 Relentless Focus on Cost Reduction 20
Slide 11: Leveraging our Culture of Innovation
Leveraging our Culture of Innovation SMS Boarding Call centre chat, New payment Pass Skype integration methods SMS boarding Call centre chat, New payment passes Skype integration methods Jetstar Jetstar Improved Improved QFF QFF New Products New products Mastercard proposition e.g. iPad MasterCard p
Slide 12: Jetstar's Brand Strength and Customer Perception
Jetstar’s Brand Strength and Customer Perception [ Jetstar brand well positioned in all markets [ Increasing customer loyalty and advocacy [ Revenue premium over competitors [ Leveraging Jetstar brand into new products and markets [ Jetstar leads on both price and quality [ Focus on “Low Fares, Good
Slide 13: Growing Jetstar in Japan
Growing Jetstar in Japan [ Japanese domestic market – World’s 10th largest population: 127 million people – Four of the world’s top ten routes by seats – Large market with low LCC penetration – Dominated by ANA (54%) & JAL Group (34%) – Significant opportunity to stimulate demand with low fares [ Je
Slide 14: Summary
Summary 27 Qantas Group Well Positioned to Succeed [ Strong domestic franchise underpin’s Group success [ Unrivalled loyalty program driving deeper levels of loyalty and engagement [ Successfully leveraging growth opportunities in Asia [ Significant transformation agenda underway for Qantas Internat