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Avianca Holdings S.A.Corporate Presentation
May 2018
2
DisclaimerThe material that follows comprises information about Avianca Holdings S.A. (the “Company”) and its subsidiaries, as of the date of the presentation. It has been prepared solely for informational purposes and
is not to be construed as a solicitation or an offer to buy or sell any securities and should not be treated as giving legal, tax, investment or other advice to potential investors. The information presented or
contained herein is in summary form and does not purport to be complete.
No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness, or completeness of this information. Neither the Company nor any of its
affiliates, advisers or representatives accepts any responsibility whatsoever for any loss or damage arising from any information presented or contained in this presentation. The information presented or
contained in this presentation is current as of the date hereof and is subject to change without notice, and its accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or
representatives makes any undertaking to update any such information subsequent to the date hereof.
This presentation contains forward-looking statements, which are based upon the Company and/or its management’s current expectations and projections about future events. When used in this presentation,
the words “believe,” “anticipate,” “intend,” “estimate,” “expect,” “should,” “may” and similar expressions, or the negative of such words and expressions, are intended to identify forward-looking statements,
although not all forward-looking statements contain such words or expressions. Additionally, all information, other than historical facts included in this presentation is forward-looking information. Such
statements and information are subject to a number of risks, uncertainties and assumptions. Forward-looking statements are not guarantees of future performance and actual results may differ materially from
those anticipated due to many factors. As for forward-looking statements that relate to future financial results and other projections, actual results may be different due to the inherent uncertainty of estimates,
forecasts and projections. Because of these uncertainties, potential investors should not rely on these forward-looking statements. Neither the Company nor any of its affiliates, directors, officers, agents or
employees, nor any of the shareholders or initial purchasers shall be liable, in any event, before any third party (including investors) for any investment or business decision made or action taken in reliance on
the information and statements contained in this presentation or for any consequential, special or similar damages.
Certain data in this presentation was obtained from various external sources, and neither the Company nor its affiliates, advisers or representatives has verified such data with independent sources. Accordingly,
neither the Company nor any of its affiliates, advisers or representatives makes any representations as to the accuracy or completeness of that data, and such data involves risks and uncertainties and is subject
to change based on various factors.
In addition to IFRS financials, this presentation includes certain non-IFRS financial measures, including Adjusted EBITDAR, which is commonly used in the airline industry to view operating results before
depreciation, amortization and aircraft operating lease charges, as these costs can vary significantly among airlines due to differences in the way airlines finance their aircraft and other asset acquisitions.
However, Adjusted EBITDAR should not be considered as an alternative measure to operating profit, as an indicator of operating performance, as an alternative to operating cash flows or as a measure of the
Company’s liquidity. Adjusted EBITDAR as calculated by the Company and as presented in this document may differ materially from similarly titled measures reported by other companies due to differences in
the way these measures are calculated. Adjusted EBITDAR has important limitations as an analytical tool and should not be considered in isolation from, or as a substitute for an analysis of, the Company’s
operating results as reported under IFRS.
The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of the
Company or this proposed offering.
3
Agenda
Company Overview and Track Record
Leading Airline in Latin America focused on
service excellence
Strong Operational and Financial Performance
1
2
3
Strategic Projects and Full Year Outlook5
Diversified Sources of Revenue with Growing
Non-Passenger Businesses4
Company Overview and Track
Record
5
Successful Integration with Further Synergy Generation Potential
Source: Company. / (1). Consolidated figures for the eleven months ended December 31, 2010. (2). Includes EBIT contribution of Avianca S.A. and GTH. (3). Maintenance, Repair and Overhaul providers (“MRO”) and Operational Excellence Center (“CEO”).
Well-Defined Integration Plan
Experience operating widebody aircraft
offers new opportunities for traffic from
Central America and Lima
• Complementary networks offer a unique growth
proposition in Central and South America
• Only 2 routes overlapped before combination
Complementary
Routes
Complementary
Fleet
Both airlines shared similar brand and
customer strategies, providing a high
standard of service
Customer
Service
Approach
Valores y Fortalezas Compartidas
Single Management Team
Single Loyalty Program
Network & Commercial Integration
Star Alliance
LifeMilesMaximization
Realized Revenue Synergies: $219MM
EBITMargin:
Core Systems Migration
Single Brand
Single Commercial Code
RevenueManagementOptimization
Ancillary Revenue
ERPIntra Hub Connectivity
Airport Optimization Model
Single Operations Management
Fleet Interchangeability
Cost Control Initiatives
Potential Cost-Reduction Synergies: US$80MM
Network / Fleet Optimization
MRO and CEO(3)
Single Web Page
TotalRevenue’17: $4,625 MM
6% - 8%6.2%6.6% 8.4%5.3% 5.9% 7.2%~4.5%(2) 9.4%
2011 2012
2015
2016
2014
2017
2013
2018
Total Revenue’ 10: $2,815MM(1)
2010
6
Leading Airline with Strategic Footprint in the Americas
Colombia Domestic
#1
54.6% Participación de Mercado(3)
Intra-Home Markets(4)
#1
66.8% Participación de Mercado(3)
Home Markets to Spain
#1
35.4% Participación de Mercado(3)
US$4,625 mm Total Revenues* in 2017
105+ Destinations and 6,000+ Weekly Departures
US$1,006 mm Total EBITDAR* in 2017
188 Aircraft Fleet (176 Pax and 12 Fre Aircraft1) as of 1Q18. Avrg Jet Fleet Age of 6.7 Years as of Mar-18.
3 Hubs:Bogota, San Salvador and Lima
Source: Company, Aeronáutica Civil de Colombia, and internal data derived from Travelport Marketing Information Data Tapes (“MIDT”). Note: market shares based on number of passengers(1). 5 Airbus 330F, 5 Airbus 300F and 2 Boeing 767F(2). Brazilian operations reflect the code-share agreement with Oceanair (“Avianca Brasil”), including the licensing of the Avianca trademark
Leading Loyalty Coalition Programwith 8.1+ mm Members
(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor(NY008B8R) 684268_1.wor
Avianca Brasil(2)Complementary Business Lines –~20% of Consolidated Revenues in 2017
Courier
✓Single commercial code✓
Single Avianca brand✓
Single website
Interchangeability of aircraft✓
(3). Sourced from Company, 2017 for Colombia Domestic, as of Dec 2017 for Intra-Home Markets and Home Markets To Spain(4). International traffic within our Home Markets (Colombia, Ecuador, Peru, El Salvador, Costa Rica, Nicaragua, Honduras, Guatemala, Belize, excluding Central American & Caribbean (non-regional)).* When indicated the figures are adjusted by one-time items during 2017
Geographic Footprint
Leading Airl ine in
Latin America focused on
service excellence
8
Leading Airline in Latin America…
Leading Airline with Strategic Footprint in the Americas(4)
Peru(3)
Source: Company and local regulators.(1) Market share based on number of passengers. Colombia: 1Q18, Peru: 1Q18, Ecuador: Jan-18(2) Brazilian operations reflect the code-share agreement with Oceanair (“Avianca Brasil”), including the licensing of the Avianca trademark to 2016(3) Reflects market share in the routes it operates as of April 2017.(4) Based on domestic and international passengers. Colombia and Peru, as of 1Q18(5) Market shares sourced from Company.(6) International traffic within our Home Markets (Colombia, Ecuador, Peru, El Salvador, Costa Rica, Nicaragua, Honduras, Guatemala, Belize, excluding Central American & Caribbean (non-regional).
Significant Market Share Gains in Key Markets – Passenger Evolution (MM)
Colombia(3)
Domestic Operations
#1
#3
Perú Domestic11,3% Market Share
Leading Position in Latin American Markets(1)
#2
Ecuador Domestic24,3% Market Share
▪ Unparalleled route network connecting the Americas
▪ Leadership position in the markets served:
~54.6% domestic market share in Colombia
~68.8% market share in Intra-Home Markets(5)
~35.4% market share in Home Markets to Spain routes
Undisputed leadership connecting passengers across our home markets with
one another and with North America, Europe and South America
Colombia Domestic54,6% Market Share
9
Successful Fleet Optimization Leading to Reduced Complexity
Long Term Fleet – 4 Families by 2020
ATR72
✓ ATR72s for improved
regional capacity
A330F
Boeing 787
✓ More fuel efficient than
many similarly sized
airplanes
A320 Neo
✓ 15% less fuel consumption
✓ Up to 500nm of additional
✓ Range & Up to 3% cost
savings
✓ 40% more cargo capacity vs.
previous cargo fleet
✓ Increased fuel efficiency & Improved
technical dispatch reliability
✓Reduced training costs and maintenance
expenses
✓ Improved range and network
performance
✓Opportunity to up gage in congested
markets & Increased regional capacity
✓New B787-9 (3 for 2019): 250-290
passengers. This variant differs from the
787-8, a greater capacity of fuel, a greater
maximum weight to the takeoff (MTOW).
✓A321S: fuel-saving Sharklets –offers up to
5% fuel-burn savings (+100 nautical
miles/185 kilometers)
Jet passenger operative
Fleet average age: 6.7 years
Fuente: Compañía.
Modern
fleet
providing
platform for
higher
profitability
2018 2019 2020 2021 2022+ Total
B787 1 3 - - - 4
A319 - - 4 4 12 20
A320 5 6 14 17 56 98
A321 2 - 2 2 11 17
Total(1) 8 9 20 23 79 139
2010 – 9 Families
E190 MD83 B757
A320 B767 Regional
A330 B737 F100
Average Jet Fleet Age of 10.1 Years
2017 – 7 Families
Boeing 787
A320 Family(1)
ATR 72 / 42
A330 Pax / 330F /300F
B767F
E190
Cessna 208
Backlog Designed to Enhance Fleet Efficiency(2)
Strong Operational
and Financial Performance
+13,4%
+2,2%
+9,1%
+9,9%
+4,7%
-3,3%
11
Demand outgrows capacity deployment resulting in record Load Factor
Región 1Q18 RPK Growth 1Q18 ASK Growth
*Domestic Market: Colombia, Peru, Ecuador 1 Local Intra-Markets: Colombia, Peru, Ecuador, Salvador, Costa Rica, Guatemala; 2 From Local Markets to North América including México 3 From Colombia, Perú, Ecuador and Costa Rica to Bolivia, Chile, Argentina, Brazil and Uruguay, 4 Belize, Cuba Curazao, Republica Dominicana,
Panamá, Costa Rica, Guatemala, Honduras, Nicaragua
1Q18 Load Factor
83.0%
80.1%
85.1%
87.4%
79.2%
80.7%
Domestic*
Intra Home
Markets1
Home Markets to
North America2
Home Markets to
South America3
Central America &
Caribbean4
Home Markets
to Europe
Total RPK 6.8% ASK 4.5% Load Factor 83.6%
+11,5%
+0,3%
+7,8%
+9,0%
+1,1%
-7,4%
12
Demand recovery in core markets drive yield improvement
1Q RPKs – Millions 1Q Load Factor
1Q ASKs – Millions 1Q Yield - US¢
8,332 9,060
9,972 10,647
1Q15 1Q16 1Q17 1Q18
40,243 40,919
FY 2017 LTM
+6.8%
+1.7%+175 bps +44 bps
79.0% 78.8%
81.9%83.6% 83.1% 83.6%
1Q15 1Q16 1Q17 1Q18 FY 2017 LTM
10,549 11,504
12,180 12,734
1Q15 1Q16 1Q17 1Q18
48,401 48,955
FY 2017 LTM
+4.5%
+1.1% +5.5%+1.4%
10.8
8.7 8.6 9.1 9.3 9.4
1Q15 1Q16 1Q17 1Q18 FY 2017 LTM
8.88.9
Quarterly Full Year Ex-Strike
10.0
8.1 8.2 8.6 8.6 8.7
7.5 6.7 6.4 6.4 6.7 6.7
1Q15 1Q16 1Q17 1Q18 FY 2017 LTM
13
2017
2016
Avianca remains committed to pursue a leaner cost structure (Unadjusted)
1Q Revenues – US millions 1Q EBITDAR – US millions
1Q CASK ex Fuel - US¢ 1Q EBIT – US millions
10.6
8.7 8.8 9.2
899 792 862
972
217 213
205 197
1Q15 1Q16 1Q17 1Q18
9.2
9.3
3,550 3,659
891 883
FY 2017 LTM
886 897
19.9% 19.7%
FY 2017 LTM
194
215 216
227
17.4%
21.4%20.3% 19.4%
1Q15 1Q16 1Q17 1Q18
57
72 69
76
5.1%
7.2%
6.4% 6.5%
1Q15 1Q16 1Q17 1Q18
294
301
6.6%
6.6%
FY 2017 LTM
Quarterly Full Year Ex-Strike Non-passanger Revenues EBIT/EBITDAR Margin RASK
14
2017
Quarterly Full Year Ex-Strike Non-passanger Revenues EBIT/EBITDAR Margin RASK
1. When indicated the figures are adjusted by the following one-time items: ACDAC’s operatives expenses; $ -25,402
Avianca remains committed to pursue a leaner cost structure (Adjusted)
2017
2016
1Q Revenues – US millions 1Q EBITDAR – US millions
1Q CASK ex Fuel - US¢ 1Q EBIT – US millions
10.3
8.5 8.8 9.2
899 792 862
972
189 185
205 197
1Q15 1Q16 1Q17 1Q18
9.6
9.7
3,734 3,843
891 883
FY 2017 LTM
9.7
7.9 8.2 8.4 8.7 8.7
7.2 6.4 6.3 6.2
6.7 6.6
1Q15 1Q16 1Q17 1Q18 FY 2017 LTM
68 72 70
101 6.3%
7.4%6.6%
8.7%
1Q15 1Q16 1Q17 1Q18
434
4659.4%
9.8%
FY 2017 LTM
260,3 301,1 293,2 273,9
1.339
157 141 139 139
350,74
31,6 32,0
549,9
2018 2019 2020 2021 2022+
AIRCRAFT CORPORATE DEBT BONDS
93,23%
1,83%4,94%
59.73%
24.13%
14.46%
1.69%
15
Debt Overview and Deleveraging Plan
By Currency
EURCOP
USD
Type(1) Currency Avg. Rate
Aircraft Debt USD 3.92%
Bonds COP 10.21%
Bonds USD 7.95%
CorporateDebt
USD 6.53%
Total 5.20%
____________________Source: Company.(1) Excludes US$6.3 Millions of corporate debt in COP and US$128.2 Millions of aircraft debt in EUR.(2) Current installments of long term debt + long term debt – cash. Cash includes cash and cash equivalents + restricted cash + available for sale securities + short term certificates of bank deposits + long term restricted cash.(3) Current installments of long term debt + long term debt + (aircraft rentals 12M x 7) – cash. Cash includes cash and cash equivalents + restricted cash + available for sale securities + short term certificates of bank deposits + long term restricted cash.(4) Consolidated net profit for the period plus the sum of income tax expense, depreciation, amortization and impairment and aircraft rentals, minus interest expense, minus interest income, minus derivative instruments, minus foreign exchange.(5) EBITDAR coverage ratio calculated as EBITDAR divided by the sum of aircraft leases and interest expense.
By Type(1)
AircraftDebtUSD
BondsCOPBonds
USD
CorporateDebtUSD
449 474
982
413
1,690
1Q18 Debt Amortization Schedule (US$MM)
1Q18 Debt Profile
Diversi f ied Sources of
Revenue withGrowing Non-
Passenger Businesses
17
Avianca Cargo: Financial and Operative Results
Segment Overview Key Metrics (Cargo and Courier)
Market Share Colombia (2018)(4) Market Share Miami (2018)(5)
▪ Strong performance for 1 Quarter 2018, Transported tons of 11.400 tons
of Valentine’s Day flowers, + 4.4% vs 1Q17
▪ New A330Fs provide reduced unit costs, higher capacity (up to 40%
morethan the previous fleet)(1) and improved reliability
▪ Network improving We are continuing our efforts to strengthen our
connections to and from Asia
13,6%11,3% 10,4%
8,6%6,6%
13,7%
35,9%
Atlas UPS AVH Amerijet AmericanAirlines
Latam Others
36,2%
9,4% 9,4% 8,6%
4,2%
32,3%
AVH Atlas Latam UPS Skylease Others
Load Factor
2.502 2.483
2017 LTM
+3.5%
52,9% 56,5%
1Q17 1Q18
56,7% 57,6%
2017 LTM
125
146
1Q17 1Q18
545
566
2017 LTM
Revenues (US$MM)(2)
+17.2%
620 601
1Q17 1Q18
-3.0%
+3.2%
328 339
1Q17 1Q18
RTK (MM)(3)
1.419,4 1.430,2
2017 LTM
ATK (MM) (3)
Source: Company.
(1) On a per trip basis. (2) Includes consolidated revenues from the cargo operation in Mexico and Deprisa (Other Business Unit) (3) Includes bellies and excludes Colombia domestic operations. Includes commercial agreements with OceanAir Linhas Aereas, not included in official statistics.
(4) International Cargo – Aeronáutica Civil de Colombia (as of September 2017) (5) Miami-Dade Aviation Statistics, by airline group (as of March 2018)
4,4 4,9 5,46 6,5 7
7,8 8,1
2011 2012 2013 2014 2015 2016 2017 1T18
18
LIFEMILES COMPAÑÍA DE LEALTAD
Source: Company(1) LifeMiles home markets include Colombia, Peru, Ecuador and Central America.
LifeMiles won 2 categories in the 2017 Freddie Awards
Best Redemption Ability, Best Promotion, Up-and-Coming Program
Selected Air Companies
Selected Financial Institutions
~70 banks with active contracts
Selected Regional Hotels
Other Selected Commercial Partners
Strong Brand RecognitionStrong and Growing Network Commercial Partners
Co-Branded Credit Cards
HomeMarkets(1)
Members (MM) Quarterly HighlightsGeographic Presence
2015
Best Promotion
Up and Coming Program
2016
Redemption Ability
Up and Coming Program
Best Promotion
2017
1
1
1
1
1
Best Promotion
Up and Coming Program
1
1
• 1Q’18 gross billings increased 13.9% vs 1Q´17
• Active cobranded credit cards reached 651K, an increase of 16.6% vs. 1Q’17
• Approximately 8.1 million members, a 12.7% increase vs. 1Q’17
• 347 commercial partners, +6.1% vs 1Q’17
Robust Financial and Performance and Leading Market Positions
FlightPlan2018
1Q 2018 2018 OUTLOOK
PAX
ASK
LF
-1.3% 7.0% – 9.0%
4.5% 8.0% – 10.0%
83.6% 80.0% – 82.0%
8.7%6.0% – 8.0%
EBIT¹
EBIT 6.5%
Source: Company Information
1. When indicated the figures are adjusted by the following one-time items: ACDAC’s operatives expenses; $ -25,402
Thank YouContact Information:
Investor Relations Office
ir@avianca.com
T: (57) 1 – 5877700
www.aviancaholdings.com
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