120511 - Web Conference Ingles - 1T12 SS

7/31/2019 120511 - Web Conference Ingles - 1T12 SS

1/20


2/20

Warning - Information and Projection

This notice ma contain estimates for future events. These estimates merel reflect the ex ectations of the Com an s

management, and involve risks and uncertainties. The Company is not responsible for investment operations or

decisions taken based on information contained in this communication. These estimates are subject to changes without

prior notice.

This material has been prepared by TAM S.A. (TAM or the Company) includes certain forward-looking statements that

are based principally on TAMs current expectations and on projections of future events and financial trends that currently

, .

expectations that involve a number of business risks and uncertainties, any of each could cause actual financial condition

and results of operations to differ materially from those set out in TAMs forward-looking statements. TAM undertakes no

obligation to publicly update or revise any forward looking statements.

This material is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy

or sell any securities or related financial instruments. Likewise it does not give and should not be treated as giving

. ,

recipient. No representation or warranty, either express or implied, is provided in relation to the accuracy, completenessor reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of

their own ud ment.

2


3/20

1. Highlights

2. LATAM

3. Financial Results

3

3


4/20

1. Hi hli hts

4


5/20

Highlights of our business units

New market campaign: When we talk, we fly together

e ave earne or e our me e ea o eYear"

Better fuel management in Latin America

maintenance services for ATR-72

Integration to the Airbus MRONetwork

Profile on social networksFacebook and Twitter

Award: Best Performanceof Thalys

Launched kiosks at Pode Aucar store

Signature of definitiveagreements regarding the

joint venture with AIMIA

New cargo terminal in So Paulo

5

ar ners p e ween argo an u p us


6/20

We revised our 2012 guidance

Guidance 2012 Real 2012Guidance 2012

Max.

Demand Growth (RPK) 8% 11% 7% 9% 7%DomesticMarket

Min.

-r g n a

Min. Max.

Supply growth(ASK) 1% 3% -1% 1% 4%

Domestic 0% 2% -2% 0% 5%

International 1% 3% 1% 3% 3%

Load Factor 76% 78% 76% 78% 73%

Domestic 72% 74% 72% 74% 68%

International 83% 85% 83% 85% 83%

Avera e WTI 95 95 103

Average US dollar rate 1.74 1.82 1.77

6


7/20

We maintained our fleet plan unchanged

18012

123 3 3

120

150 22 22 20 23

90

129 134 140

30

60

0

1T12 2012 2013 2014 2015

AirbusWidebody Boeing777 Boeing767AirbusNarrow body

7


8/20

1. Desta ues.

8


9/20

Final steps in the Merger with LAN

CVM

approved the

Edital

May 10:

Launch of

the Exchange

Offer

May 9:

F4Form Declared

June12:

Closing of

ec ve

Offer

Expected

annual

synergies

of

US$600to

US$700

million

fully

achieved

by

the

end

of

the

fourthyear,ofwhichUS$170toUS$200millionwillbeachievedbytheendofthefirstyear.

OnetimecostofbetweenUS$150toUS$200million.

9


10/20

3. Financial Results

10


11/20

Multiplus Highlights

growth in Points Issuedvs 1Q11

24.5%

mln in Gross Billings(26.6% growth vs 1Q11)

R$ 430

mln in Dividends paid(including interest on capital)R$ 261

thousand new Members400

11 11

, .


12/20

Multiplus Results

Net revenue of R$ 347.1 millionR$ 430.4 mln in gross billingsR$ mln & mln pointsR mln

242.0285.1

321.5

.347.1

17.4

15.2

339.9 354.6397.3

433.6 430.4

9.010.9

12.5

1Q11 2Q11 3Q11 4Q11 1Q12

ReceitaLquida Pontos

resgatados1T11 2T11 3T11 4T11 1T121Q11 2Q11 3Q11 4Q11 1Q12

81.2

EBITDA Ajustado de R$ 91,6 milhes R$ 61.6 mln in Net Income

92.891.6

R$ mlnR$ mln

70.9

51.3

70.9

61.6

89.1

82.3.

12

1T11 2T11 3T11 4T11 1T121T11 2T11 3T11 4T11 1T121Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12


13/20

We recorded a 6% increase in net revenue

InReais 1Q12vs

1Q12

vs

1Q12 1Q11 4Q11

NetRevenue(million)

OperatingExpenses(million)

3,228

3,252

1Q11

6%

11%

4Q11

10%

1%

3,042

2,932

3,579

3,281

EBIT(million)

EBITMargin

(23)

0.7%

110

3.6%

298

8.3%

EBITDAR(million)

EBITDARMargin

298

9.2%

22%

3.3p.p.

51%

7,9p.p.

380

12.5%

612

17.1%

NetResults(million)

101

16.3

22%

2%

1%

10%

129

15.9

96

18.1

CASK(cents)

CASKexfuel(cents)16.410.0

7%2%

1%

3,4%15.49.8

16.610.4

CASKUSD(cents)

CASKUSDexfuel(cents)

9.3

5.7

1%

4%

1%

2%

9.2

5.9

9.2

5.8

13

*Movements in fair value of fuel derivatives

We changed the accounting regarding re ard tickets


14/20

We changed the accounting regarding reward tickets

,

Flow of accrual and redemptionpoints for airline tickets Changing in the accounting methodology for reward tickets revenue

CLIENT(loyalty program

member)

rev ous ccoun ng o e

Awardticket

issuance

Products or Services

PurchaseRevenueis

recognized

Periodinwhichthepassengercanusetheawardticket

Accrue

D + 0 D + 180

CurrentAccounting

Model

POINTSAwardticket

issuancePeriodinwhichthepassengercanusetheawardticket

Redeem

D + 0 D + 180

Revenueisrecognized

onthe

balance

sheet

as"DeferredIncome"

Revenueisrecognizedatthemomentthepassenger

checkin

ThechangeshavenoimpactontheMultiplusS.A.FinancialStatements

14

Adjusting* our result we recorded 9% increase in net


15/20

Adjusting* our result, we recorded 9% increase in net

.

InReais

AdjustedvsAdjustedAccounting

NetRevenue(million) 3,327 3%3,228

OperatingExpenses(million)

EBIT (million)

3,252

75

0%

3,252

(23)

NoImpact

EBITmargin

EBITDAR(million)

2.3%

397

3.0p.p

33%

0.7%

298

EBITDARmargin

RASKgeral (centavos)

11.9%

16.8

2.7p.p.

3%

9.2%

16,3

15* In order to continuously improve the measure of our business, we started deferring the revenue related to theaward tickets issued, but not flown, thus impacting the lines of passenger revenue

W i d i h h i ld i h d i


16/20

We continued with the yields recovery in the domestic

, w

Adjusted* Domestic Passengers

ASK

ASK, RPK and Load Factor5%

Passenger Revenue - R$ Million

5%

11,76712,168 12,373

2%

2%

-4%

RPK8,288

8,278 8,426

1Q11 4Q11 1Q12

2%

, , ,

1 11 4 11 1 12

Factor 70% 68% 68%

Yield - R$ Cents RASK - R$ Cents

-5%

3%-4%

0%

18.2 19.8 18.812.3 12.7 12.3

16

1Q11 4Q11 1Q12 1Q11 4Q11 1Q12

* In order to continuously improve the measure of our business, we started deferring the revenue related to theaward tickets issued, but not flown, thus impacting the lines of passenger revenue

I th l i i t ti l


17/20

In the annual comparison, international passenger

v y

Adjusted* International Passengers

ASK, RPK and Load Factor

R 1 071 R$1,117

Passenger Revenue - Million

30%2%

7,334 7,619 7,455 R$862 4%

22%

-2%

5%

RPK

5,8386,089 6,150

1Q11 4Q11 1Q12

U$516 U$595 U$631

1Q11 4Q11 1Q12

6%

1%

Factor 80% 80% 82%

RASK - CentsYield - Cents 21%

Avg US DollarR$11.7

R 14.1

28%7%

R$ 14.8

R$ 17.6 R$ 18.2

12%

1.67 1.80 1.77

-2%

U$7.0 U$7.8U$8.59%

20%

U$ 8.9 U$ 9.8 U$ 10.3-3%

31%

17

1Q11 4Q11 1Q121Q11 4Q11 1Q121Q11 4Q11 1Q12

* In order to continuously improve the measure of our business, we started deferring the revenue related to theaward tickets issued, but not flown, thus impacting the lines of passenger revenue


18/20

Liquidity and debt profile

Adequate debt profile Liquidity Position

1,800

2,100

R$ Million

2,4532,607

1,9142,145

2,568 2,567

2,0482,000

2,500

3,000

900

1,200

1,500

995

500

1,000

1,500

0

300

600

2005 2006 2007 2008 2009 2010 2011 1Q120

Debentures, bonds and othersLeasing on the balance sheet

Debt mix by currencyAdjusted Net Debt / EBITDAR

8.0

8%

R$

3.8

5.66.3 .

3.84.3

4.9

4.0

6.0

92%US$ 2005 2006 2007 2008 2009 2010 2011 1Q12

2.1

0.0

2.0

18Obs.1: Net Debt Adjusted includes annual operating leases x 7Obs.2: Debt is considered in US GAAP for 2005 and 2006 and in IFRS since 2007

Teremos sinergias entre US$ 600 milhes e US$


19/20

Teremos sinergias entre US$ 600 milhes e US$

Receitas: Carga US$120-125 Milhes, Pax US$240-285 Milhes Custos US$240-290Milhes

Fonte dasinergia

ValorUS$ milhes

Justificativa

Fonte dasinergia

ValorUS$ milhes Justificativa

,

de melhores prticas

Maior acesso a hubs conjuntos eRelevncia

aeroportos em que ambas operam

Aproveitamento de economias de

Rede combinada cria novos paresNova e maior

da rede escala em contratos

Racionalizao dos gastos

A combinao da rede suporta

conectividade

Novos

funes

Eficincias em lataformas comuns

novos es nos e u s

Incluindo a consolidao de

voos

Outras receitas Aproveitamento de economias de

associadas e aumento da utilizao

Consolidao dos programas ePassageiro

com passageiros

Eficincia com esforos de vendas

escala e de [email protected]/ir

19

compartilhamento das melhores

prticas

frequente combinados

19


20/20

20

Documents

120511 - Web Conference Ingles - 1T12 SS