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Avianca Holdings S.A.Corporate Presentation
Aug 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
55.5% Participación de Mercado(3)
Intra-Home Markets(4)
#1
64.1% Participación de Mercado(3)
Home Markets to Spain
#1
32.6% 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
189 Aircraft Fleet (177 Pax and 12 Fre Aircraft1) as of 2Q18. Avrg Jet Fleet Age of 6.8 Years as of Jun-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, Jun-18 for Colombia Domestic, as of Jun-18 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: 2Q18, Peru: 2Q18, Ecuador: Jan-18 to May - 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 June 2018.(4) Based on domestic and international passengers. Colombia and Peru, as of 2Q18(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 Domestic9.7% Market Share
Leading Position in Latin American Markets(1)
#3
Ecuador Domestic24.5% Market Share
▪ Unparalleled route network connecting the Americas
▪ Leadership position in the markets served:
~55.5% domestic market share in Colombia
~64.1% market share in Intra-Home Markets(5)
~32.6% 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 Domestic55.5% Market Share
Copa1.8%
1%
Avianca55.5%
Latam18.7%
VivaCo13.1%
Satena5.2%
Easyfly4.9%
Others0.9%
Avianca9.7%
Peruvian14.9%
Latam57.0%
Starup2.5%
Others11.3%
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: 6.8 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
11
Demand outgrows capacity deployment resulting in record Load Factor
*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
Region
Domestic*
Intra Home
Markets1
Home Markets to
North America2
Home Markets to
South America3
Central America &
Caribbean4
Home Markets
to Europe
Total
2Q18 RPK Growth 2Q18 ASK Growth 2Q18 Load Factor
82.6%
76.2%
84.1%
83.5%
78.6%
82.3%
RPK 3.0% ASK 2.6% Load Factor 82.3%
9.7%
3.2%
2.6%
5.1%
-0.2%
-4.7%
13.9%
2.6%
0.7%
4.7%
-1.1%
-6.8%
12
Demand recovery in core markets drive yield improvement
10,780 11,575
12,621 12,953
2Q15 2Q16 2Q17 2Q18
24,801 25,687
6M17 6M1812
2Q RPKs – Millions 2Q Load Factor
2Q ASKs – Millions 2Q Yield - US¢
+3.0%
+29 bps +101 bps
+2.6%
+3.6% +9.6%+7.6%
+4.8%
Quarterly Full Year
13
Avianca remains committed to pursue a leaner cost structure (Unadjusted)
1
26
62
21
0,1%
2,6%
5,7%
1,7%
2Q15 2Q16 2Q17 2Q18
131
976,1%
4,1%
6M17 6M18
Quarterly Full Year Non-passanger Revenues EBIT/EBITDAR Margin RASK
2017
2016
2Q Revenues – US millions 2Q EBITDAR – US millions
2Q CASK and CASK ex Fuel - US¢ 2Q EBIT – US millions
9,8
8,3 8,6
9,3
829 741 875
988
232 225
217 211
2Q15 2Q16 2Q17 2Q18
8,7
9,2
1.737 1.960
422 408
6M17 6M18
428
391
19,8%
16,5%
6M17 6M18
136166
211
164
12,8%
17,2%
19,3%
13,7%
2Q15 2Q16 2Q17 2Q18
14
Avianca remains committed to pursue a leaner cost structure (Adjusted)
9,6
8,1 8,6
9,3
829 741 875
988
208 197
217 211
2Q15 2Q16 2Q17 2Q18
8,7
9,2
1.737 1.960
422 408
6M17 6M18
5
38
63
50
0,5%
4,0%
5,7%
4,2%
2Q15 2Q16 2Q17 2Q18
133
151
6,2%
6,4%
6M17 6M18
430 437
19,9%
18,4%
6M17 6M18
140178
212187
13,5%
19,0% 19,4%
15,6%
2Q15 2Q16 2Q17 2Q18
2016
2Q EBITDAR – US millions
2Q CASK and CASK ex Fuel - US¢ 2Q EBIT – US millions
2Q Revenues – US millions
1. When indicated the figures are adjusted by the following one-time items: ACDAC’s operatives expenses; $ -28,988 Quarterly Full Year Non-passanger Revenues EBIT/EBITDAR Margin RASK
9,6
7,8 8,2
8,9 8,2
8,6
7,0 6,1 6,3 6,6 6,3 6,4
2Q15 2Q16 2Q17 2Q18 6M17 6M18
183.6300.7 291.9 272.5
1,333
139148 148 148
359.61
29.830.6
549.9
2018 2019 2020 2021 2022+
AIRCRAFT CORPORATE DEBT BONDS
93.59%
1.76%4.65%
15
Debt Overview and Deleveraging Plan
By Currency
EUR
COP
USD
Type(1) Currency Avg. Rate
Aircraft Debt USD 3.93%
Bonds COP 10.58%
Bonds USD 7.95%
CorporateDebt
USD 6.52%
Total 5.26%
____________________Source: Company.
(1) Excludes US$6.3 Millions of corporate debt in COP and US$128.2 Millions of aircraft debt in EUR.
By Type(1)
AircraftDebtUSD
BondsCOPBonds
USD
CorporateDebtUSD
352480
989
420
1,693
2Q18 Debt Amortization Schedule (US$MM)
2Q18 Debt Profile
58.75%
24.94%
14.68%
1.63%
Diversi f ied Sources of
Revenue withGrowing Non-
Passenger Businesses
17
Avianca Cargo: Financial and Operative Results
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 June 2018) (5) Miami-Dade Aviation Statistics, by airline group (as of June 2018)
35.8%
8.5% 9.4% 8.2%6.1%
32.1%
AVH Atlas Latam UPS Skylease Others
13.3% 13.3%11.6% 11.5%
8.4%6.4%
35.6%
Atlas Latam AVH UPS Amerijet AmericanAirlines
Others
Segment Overview Key Metrics (Cargo and Courier)
Market Share Colombia (2Q18)4 Market Share Miami (2Q18)5
▪ Strong performance for 2Q 2018 Avianca Cargo moved a total of 13.082 tons
of Mother’s Day flowers, + 3.4% vs 2Q17
▪ Fleet management improvement due to fleet interchangeability
optimization between Taca Peru and Tampa Cargo Colombia
▪ Network improving thanks to the connections increase to and from Asia and
Europe through commercial partnerships and increased widebodies capacity
utilization
RTK (MM)(3)
Revenue (US$MM)(2)ATK (MM) (3)
Load Factor
-3.0%+16.8%
53.7%56.8%
2Q17 2Q18
53.3%56.7%
6M17 6M18
+2.6%+3.1%
665,2 645,2
2Q17 2Q18
131,8
153,9
2Q17 2Q18
256
300
6M17 6M18
357,2 366,6
2Q17 2Q18
686 706
6M17 6M18
1,285 1,246
6M17 6M18
4.4 4.9 5.46 6.5 7
7.8 8.3
2011 2012 2013 2014 2015 2016 2017 2Q18
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
• 2Q18 gross billings increased 17.8% vs 2Q17
• Active cobranded credit cards reached 666K, an increase of 12.5% vs. 2Q17
• Approximately 8.3 million members, +14.0% increase vs. 2Q17
• 359 commercial partners, +12.2% vs 2Q17
Robust Financial and Performance and Leading Market Positions
FlightPlan2018
2Q 2018 2018 OUTLOOK
PAX
ASK
LF
-4.6%5.0% – 7.0%
from 7.0% - 9.0%
2.6% 8.0% – 10.0%
82.3%81.0% – 83.0%
from 80.0% - 82.0%
4.2%6.0% – 8.0%
EBIT¹
EBIT 1.7%
Source: Company Information
1. When indicated the figures are adjusted by the following one-time items: ACDAC’s operatives expenses; $ -28,988
Thank YouContact Information:
Investor Relations Office
T: (57) 1 – 5877700
www.aviancaholdings.com
