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GOL DAY - NY
JUNE, 2012
MISSION TO BRING PEOPLE TOGETHER
SAFELY AND SMARTLY
VISION TO BE THE BEST AIRLINE TO FLY WITH,
WORK FOR AND INVEST IN
VALUES SAFETY, INNOVATION, CLIENT, FOCUS,
RESULTS-DRIVEN AND SUSTAINABILITY
INSTITUTIONAL PRESENTATION
01:: GOL IS A STRONG PLAYER
02:: STRONG AND SUSTAINABLE
POSITION IN KEY AIRPORTS
03:: CAPACITY MANAGEMENT
04:: COST EX-FUEL ADVANTAGE
05:: SMILES
06:: STRONG BALANCE SHEET
07:: CORPORATE GOVERNANCE
DISCLAIMER
“The material that follows is a confidential presentation of
general background information about GOL Linhas Aéreas
Inteligentes S.A. and its subsidiaries (collectively, “Gol” or
the “Company”) as of the date of the presentation. It is
information in summary form and does not purport to be
complete. No representation or warranty, express or implied,
is made concerning, and no reliance should be placed on,
the accuracy, fairness, or completeness of this information.
This confidential presentation may contain certain forward-
looking statements and information relating to Gol that reflect
the current views and/or expectations of the Company and
its management with respect to its performance, business
and future events. Forward looking statements include,
without limitation, any statement that may predict, forecast,
indicate or imply future results, performance or
achievements, and may contain words like “believe,”
“estimate,” “anticipate,” “expect,” “envisages,” “will likely
result,” or any other words or phrases of similar meaning.
Such statements are subject to a number of risks,
uncertainties and assumptions. We caution you that a
number of important factors could cause actual results to
differ materially from the plans, objectives, expectations,
estimates and intentions expressed in this presentation. In
no event, neither the Company nor any of its affiliates,
directors, officers, agents or employees, shall be liable
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.
This presentation does not constitute an offer, or invitation, or
solicitation of an offer, to subscribe for or purchase any
securities. Neither this presentation nor anything contained
herein shall form the basis of any contract or commitment
whatsoever.
The market and competitive position data, including market
forecasts and statistical data, used throughout this
presentation was obtained from internal surveys, market
research, independent consultant reports, publicly available
information and governmental agencies and industry
publications in general. Although we have no reason to
believe that any of this information or these reports are
inaccurate in any material respect, we have not
independently verified the competitive position, market
share, market size, market growth or other data provided by
third parties or by industry or other publications. Gol does not
make any representation as to the accuracy of such
information.
This presentation and its contents are proprietary information
and may not be reproduced or otherwise disseminated in
whole or in part without GOL’s prior written consent”.
3
01::
GOL IS A STRONG PLAYER
LARGEST LOW COST
AIRLINE IN LATIN AMERICA
NUMBERS
11 YEARS COMPLETED ON
JANUARY 15, 2012
810 FLIGHTS PER DAY
94% OF INTERNET SALES
1Q12 LTM NET REVENUES
R$7.8 BILLION
35.8% DOMESTIC MARKET
SHARE
OVER
35 MILLION PASSENGERS IN
2011
GOL’S MILEAGE PROGRAM, SMILES:
OVER 8.5 MILLION PARTICIPANTS
123 AIRCRAFTS
UTILIZATION RATE 1Q12
12.9 BLOCK HOURS
(BM&FBovespa: GOLL4 e NYSE: GOL), (S&P: B+ / Fitch: B+ / Moody`s: B3)
5
6 YEARS OF OPERATIONS
140 FLIGHTS PER DAY
6 MONTHS NET REVENUES of
R$600 MILLION
5.8% DOMESTIC MARKET
SHARE
OVER
5 MILLION PASSENGERS
IN 2011
28 AIRCRAFTS
UTILIZATION RATE
11.2 BLOCK HOURS
11 YEARS OF COMPANY’S
ACCOMPLISHMENTS
PROFILE
o Low-cost, low-fare platform: Implementation of
the Concept in the Brazilian Airline Industry
o Efficient aircraft utilization
o Innovation
o Largest e-commerce platform in
Latin America
o Standardized fleet of B737 NG aircraft
o 63 domestic and 13 internacional destinations
GOL was founded in 2001 with one mission:
To democratize air travel in Brazil and throughout South America
6
o Varig’s and Webjet’s Acquisitions (2007 and 2010)
o Delta Strategic Partnership / Delta TechOps Agreement
o Electronic Ticket: Replacement of Boarding Pass
o Relationship with Boeing: Aircraft Improvements
SFP: Landing on Shorter Runways
RNP: Reducing Fuel Consumption
o Buy on Board and “Gol in the air”
o Web Check-in
o “Voe Fácil”: Installment Program
7
02:: STRONG AND
SUSTAINABLE
POSITION IN KEY AIRPORTS
Others
Subtitle:
(1) INFRAERO
(2) Source: Hotrans approved on 07/01/2011
(3) Source: ANAC Annual Report
• Cabotage operations (ex:GIG-POA-Foreign) are considered as domestic
• Only Friday frequencies were considered
• TAM consolidates Tam Group + Pantanal
COMPANY’S DOMINANT POSITION IN
THE WORLD CUP AIRPORTS
Largest route network in Latin America with high frequency in major cities
8
AIRPORTS SLOTS IN WORLD CUP’S AIRPORTS
2
3
4
5
6
7
8
9
10
1
Cities hosting Football World Cup
games 11
12
13
14 8
14
11
29
52
34
38
55
63
93
83
65
105
117
8
15
12
33
31
30
27
30
24
93
57
52
96
107
35
16
8
14
45
32
38
45
74
44
31
65
45
24
Cuiabá
Manaus
Natal
Fortaleza
Curitiba
Recife
PortoAlegre
Salvador
Confins
Brasília
Galeão
SantosDumont
Guarulhos
Congonhas
10
9
8
7
2 1
6
4
5
3
11 12 13
14
Restricted
Airports
GUARULHOS AIRPORT PRIVATIZATION
BENEFITS
9
GUARULHOS
BRASÍLIA
PRIVATIZATION: FIRST ROUND
VIRACOPOS
Privatization’s investments benefit GOL’s
strong position in Guarulhos
Boosts international and domestic traffic
o Construction of a terminal to attend at least
7 million passengers per year
o Increase of international passengers by
allowing larger aircraft to operate in
Guarulhos.
o Improvement in domestic demand by
international passengers in flight
connections
GUARULHOS – SÃO PAULO
Privatization boosts international and domestic traffic in a GOL’s well positioned airport
03::
CAPACITY
MANAGEMENT
2011 2012
GOL + Webjet
CAPACITY RATIONALIZATION
RATIONALIZING A MARKET THAT HAS BEEN GROWING AN UNSUSTAINABLE MANNER
Consolidated Domestic Supply
+
+
Webjet’s Acquisition Allow Fleet Flexibility to
Manage Capacity
Early Return of 15 B737-300 Aircraft at no cost
Reduction of approximately 100 Flights/day
Reduction of less profitable operations:
o Night flights (at early hours) and longer flights
FLEXIBLE CAPACITY MANAGEMENT
50.2 49.2
IN 2012, GLAI* IS GROWING INORGANICLY
THROUGH WEBJET ACQUISITION,
RACIONALIZING THE MARKET
* GOL + Webjet, considering Webjet after october 3rd, 2011
11
04::
CASK EX-FUEL
ADVANTAGE
13
EVEN WITH ASK REDUCTION, AND THE FX SCENARIO,
CASK EX-FUEL FOR 2012 WILL REMAIN AT THE SAME
LEVEL AS 2011, REFLECTING THE COMPANY EFFORTS
* Quarter average dollar
**Company’s earnings releases
CASK EX-FUEL
ADJUSTED BY THE
AVERAGE STAGE
LENGTH IN DOLLAR*
CASK EX-FUEL
(LTM)
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
4.9 5.0 5.1 4.9 5.0 5.3 5.5 5.5 4.7
6.4 6.6 6.6 6.8 6.9 7.1 7.3 7.1 7.0
8.7 8.9 9.1 9.4 9.5 9.8 9.9 9.8 9.7
4.9 5.0 5.0 5.1 5.1 5.1 5.1 5.3 5.6
8.3 7.8 7.7 7.9 7.7 7.9 7.8 8.5 8.9
6.4 6.4 6.2 6.6 6.0 5.8 5.8 5.6 5.9
6.0 5.7 5.7 6.0 6.1 5.8 5.6 5.9 6.3
05::
SMILES
SMILES DEVELOPMENT
SMILES: Hidden asset gives high flexibility potential
Miles Redemption Through Website
Easier and more convenient way to issue tickets
Alternative Miles redemption by call center
Flight to Miami
100% of Load Factor*
* Available Seats
Strategic Airline Partnerships
Increases traffic to GOL’s network
Additional value to SMILES: long-haul flights
Integration of mileage program
81% YOY growth on redemption
Over 180 partners
Over 8.5 mm clients
Main Airline Partners
Accrual Redemption
Jun/12 Aug/12
Main Financial Partners
COBRANDED
15
52,8%
46,9%
35,7%
31,0%
27,6%
27,3%
23,7%
4,4%
3,8%
FlyBuys
FlyBuys
Qantas Program
Airmiles
Nectar
Flying Blue
LANPASS
Multiplus
Smiles
Smiles is being treated as separate business unit
16
0%
20%
40%
60%
SMILES GROWTH OPPORTUNITY
Loyalty Market Penetration (as % of population) Growth of Frequent Flyer Program Members
Australia
New
Zealand
BRAZILIAN CREDIT CARD
MARKET GROWTH: ~20-25%
06::
STRONG
BALANCE
SHEET
NO RISK OF REFINANCING OR
PRESSURE ON THE SHORT TERM
18
49
191 89
674
258 256
1
11
22
410
-
911
2012 2013 2014 2015 2016 2017 2018 2019 Após 2019
R$ Debt US$ Debt
R$362
After 2019
Amortization of Financial Debt R$ millions
ANNUAL MATURITY (R$ in million) – Excluding Financial Leasing
313 342
442 464 469
6.0x 6.1x
5.0x 5.1x 4.6x
1Q11 2Q11 3Q11 4Q11 1Q12
Short-term Debt (R$MM) Total Cash / Short-term Debt
(*) Excludes Reclassification for Short-Term Debentures
1,880 2,076 2,187 2,348
2,157
25.9% 29.0% 29.6% 31.1%
27.6%
1Q11 2Q11 3Q11 4Q11 1Q12
Total Cash (R$MM) Total Cash / Net Revenues (LTM)
7,344
7,612 8,142 8,527 8,503
4.8x 6.3x
8.6x
13.0x
14.9x
1Q11 2Q11 3Q11 4Q11 1Q12
Adjusted Gross Debt Adjusted Gross Debt / EBITDAR (LTM)
1,542 1,200
943 656 571
4.4x
3.4x
2.5x
1.6x 1.3x
1Q11 2Q11 3Q11 4Q11 1Q12
EBITDAR LTM (R$MM) EBITDAR / Interest Expenses
(*)
1Q12 RESULTS
MAIN FINANCIAL INDICATORS
19
Indicators show a trend to improve in the coming quarters
HEDGE STRATEGY IS CONSERVATIVE,
NON-SPECULATIVE
20
GOL’s Financials Aspects
Currency: USD Hedge
Interest Rates: Aircraft financing
Fuel Hedge: 100% Proxy Brent
Hedge Strategy
Fuel Hedge (as of June)
Current
% Average HR
Maximum
% Average HR
3 months 31% 31%
6 months 24% 24%
12 months 12% 12%
24 months 9% 12%
36 months 7% 11%
Current
Position
If triggers
reached
THE COMPANY IS STRETCHING THE FUEL HEDGE
BY HAVING A PROACTIVE APPROACH
07::
CORPORATE
GOVERNANCE
HIGH CORPORATE GOVERNANCE
STANDARDS
Dividend Policy
Active Board of Directors
& Aligned Management
High Listing Standards
Proactive Advisory
Committees
Management compensation aligned with shareholders
3 independent members, including Chairman (july 2012)
Compensation
Risk & Finance
Audit
100% tag-along rights for non-voting PN shareholders
Compliant with the NYSE and SEC Corporate Governance Standards
Compliant with Sarbanes-Oxley
Last dividend paid in 2011 (year ended in 2010)
25% minimum dividend payout ratio, as required under Brazilian law
Safety Standards
VRG awarded with IOSA Certification (IATA Operational Safety Audit Program)
Consolidated operational safety audit procedures
Most Improved Financial Disclosure Procedures
Best Ranked IR Websites Best CFO elected by the Sell-Side
Best CEO elected by the Sell-Side Best CFO elected by the Buy-Side
Best CEO elected by the Buy-Side
Highest Standards of Corporate Governance
22
o Will be elected as Chairman of the Board of Directors.
o The changes were defined within the strict governance standards, with participation of the Board of Directors
during all the process.
o Transition will take 90 days.
GOL ANNOUNCED NEW CHIEF
EXECUTIVE OFFICER
Paulo Sergio Kakinoff
Paulo Sergio Kakinoff was elected as the new Company’s CEO
Constantino de Oliveira Junior
"The coming of Kakinoff represents another key move in the Company’s corporate
governance and will add records of achievement, and bring a new dynamic and extensive
experience in management.“
Constantino de Oliveira Junior
o Will be invested in the new position as the CEO as of July 2nd, 2012.
o Over 2 years of experience as a Board of Directors member.
o Leaves Volkswagen Group, where he served for 19 years, and was the President of Audi Brazil.
o Prior to the presidency of Audi Brazil, Paulo Sergio Kakinoff was Sales & Marketing Director at Brazil’s
Volkswagen and South America Executive Director at the headquarters of the Volkswagen Group in Germany.
23
24
“GOL’s strategy remains the
same: prioritizing simplicity
above everything else. These
are the attitudes that are
making GOL increasingly the
best company to fly with, work
for and invest in”
Constantino de Oliveira Junior
CLOSING
REMARKS
LATIN AMERICA AVIATION INDUSTRY
Number of passengers in Latin America is expected to triple in the next
20 years (438.9 million passengers in 2030 vs. 145.9 million in 2010)*.
GOL’S STRENGTHS
Flexibility to rationalize supply in the domestic market
Dominant position in brazil’s main airports
SMILES: Hidden asset gives high flexibility potential
Cost advantage: Low-cost, low-fare model
Strong Balance Sheet
High Standards of corporate governance
*Source: Oxford Economics study commissioned by IATA (International Air Transport Association)
IN BRAZIL
Infrastructure investments
Main events coming (world cup and olympic games).
Rational capacity addition
