Avianca Holdings S.A. 2Q 2013 Earnings Results
Disclaimer This presentation contains certain forward-looking statements. Such forward-looking statements involve a certain degree of risk and uncertainty with respect to the Company’s business, financial results, trends, strategy and projections, and are based on assumptions, data or methods which, although considered reasonable by the Company, may turn out to be incorrect, or may not be possible to realize. The Company gives no assurance that expectations disclosed in this presentation will be confirmed. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements, due to a variety of factors. The Company specifically disclaims any obligation to update any forward-looking statements, which speak only for the date they are made. 2
2013 Industry Highlights Environment Capacity worldwide , measured in ASK's, grew 3.9% during the first half of 2013 when compared to the same period in 2012, while traffic (RPK’s) increased 4.8%. As a result, load factor for the industry increased to 79.0% , up 0.8 pp when compared to the same period in 2012 During the first half of 2013 i nternational air travel traffic (RPK’s) in Latin America grew well above the global pace at 8.7%, supported from strong business travel demand During the first semester of 2013, the number of passengers carried in Latin America grew 6.7% when compared to the same period in 2012. Capacity, measured in ASK’s, increased 5.5% while traffic measured in RPK ´ s increased 7.0%. As a result the load factor increased to 76.2% from 75.1% in the same period last year During the first half of 2013, the global freight business experienced a stabilization in the number of tons shipped of 0.1%, while Latin America maintained a stable growth trend of 1.6% . Fuel Prices Fuel prices decreased on average 4.6% in the first half of 2013 while for the second quarter of this year prices decreased 6.5% over the same period in 2012 Exchange Rate The Colombian peso experienced, during the first half of 2013, a depreciation of nearly 9.1%. For the second quarter of this year the peso depreciated 5.3% over the same period in 2012 Source: ALTA & IATA 3
2Q 2013 Results Highlights In the second quarter of 2013 AVIANCA HOLDINGS reached a Net income of USD$ 70.3 million Operating revenues reached USD $ 1.1 billion , an increase of approximately 7.6% over the same period of 2012 Operating income (EBIT) for 2Q 2013 was USD $ 35.3 million, an increase of USD$ 23.1 million over the same period of last year. Consequently operating margin increased to 3.2% , up from 1.2% in 2Q 2012 EBITDAR came in at USD $ 144.1 million, a 30.8% increase over the same period of last year. EBITDAR Margin for the quarter rose to 13.0% increasing 2.3 pp over the same period of 2012 The cost per available seat kilometer excluding fuel costs (CASK ex Fuel) decreased 0.5% versus the same period of 2012 Capacity measured in ASK’s increased 8.7%, while passenger traffic measured in RPK’s rose 9.3%, outpacing Latin America and worldwide traffic growth . As a result, the load factor for the quarter increased to 78.2% from 77.7% in the previous year Passengers carried reached 5.9 million , increasing 9.6% over the same period of 2012. Source: Company information 4
2Q 2013 Earnings Results Summary (USD$ Millions) 2Q 2012 2Q 2013 % Var 2Q % VAR 2Q 2013 1H 2012 1H 2013 % VAR 1H % VAR 1H 2013 2013 (Ex-Items)* 2013 (Ex-Items)* * Total Operating Revenues 1,027.0 1,105.1 7.6% 7.6% 2,078.7 2,223.1 6.9% 6.9% Passenger 856.3 906.0 5.8% 5.8% 1,738.0 1,843.6 6.1% 6.1% Cargo and other 170.8 199.1 16.6% 16.6% 340.7 379.6 11.4% 11.4% Total operating expenses 1,014.9 1,069.9 5.4% 4.7% 1,984.9 2,085.1 5.1% 4.2% Expenses Excluding Fuel 700.7 757.5 8.1% 7.1% 1,345.0 1,432.9 6.5% 5.3% Aircraft fuel 314.2 312.4 -0.6% -0.6% 639.9 652.2 1.9% 1.9% EBIT 12.2 35.3 +100% +100% 93.9 138.0 47.0% 74.2% EBIT Margin 1.2% 3.2% +2 pp +2.64 pp 4.5% 6.2% +1.69 pp +2.45 pp Net Income -44.8 70.3 +100% +100% -45.7 147.5 +100% +100% Net Margin -4.4% 6.4% +10.7 pp +9.8 pp -2.20% 6.64% +8.83 pp +8.83 pp EBITDAR 110.2 144.1 30.8% 38.2% 289.8 344.9 19.0% 25.7% EBITDAR Margin 10.7% 13.0% +2.3 pp +2.9 pp 13.9% 15.5% +1.57 pp +2.33 pp Ex-Items: Excluding Gain/Loss on sale of property and equipment • EBIT = Operating Income, EBITDAR = earnings before interest, tax, depreciation, amortization and aircraft rentals Avianca Holdings consolidated operating revenues increased by 7.6%, leveraged by a strong growth 9.6% in passengers carried Total Operating Revenues grew 7.6% while Total Operating expenses grew 5.4%. Excluding special items Total Operating expenses increased only 4.7% Operating profit grew by USD$ 23 million over the same period of 2012, while operating margin increased by 2.2 pp reaching 6.2% Net income for the second quarter of 2012 includes a foreign exchange loss of USD$ 27.3 million and net income for the same period in 2013 includes a profit of USD$ 71.2 million profit Source: Company information 5
2Q 2013 Earnings Results Total Costs Highlights (Numbers expressed in million of USD$) Excluding special items total costs increased in USD $48.3 Million +4.7% 1,066.9 1,069.9 3.49 -1.87 0.75 -1.89 2.93 4.74 6.03 6.10 6.78 8.03 16.11 1,018.7 3.80 1,014.8 *Ex-Items: Excluding Gain/Loss on sale of property and equipment • Others Include: Air Traffic & Flight Operation • Source: Company information 6
2Q 2013 Earnings Results EBITDA Highlights (Numbers expressed in million of USD$) Excluding special items EBITDA increased in USD$ 34.5 Million +91.3% 1.87 16.10 28.30 1.89 8.00 6.78 49.70 6.09 6.03 3.49 0.75 72.42 2.93 69.49 41.70 -3.80 37.90 Source: Company information 7
2Q 2013 Cash Balance AVH Cash Position highlights the following En el 4T 2012 se tuvieron los variations for the 2 nd Q13: siguientes movimientos de caja: Concepto US$ Millones Variations US$ Millions 630 Generación de caja operativa 128.8 Net Financing Activities 295 511 * Pago de Pensiones (8.5) Operating Cash Flow 81 466 Pago de Intereses (18.1) Asset Sales 13 14.3% 425 Pago de PDP's (40.1) Interests (17) 13.4% Pago de deuda (56.1) 10.9% Others (19) Otros (39.6) 9.8% PDP's (32) Total (33.6) Dividend Payments (37) Debt Payments (79) Adicionalmente, la compañía a Total 205 Septiembre de 2012 contaba con: Concepto US$ Millones AVH has made the following cash deposits: 2011 2012 1Q-2013 2Q-2013 Depósitos para compra de flota 266.5 Deposits US$ Millions Depósito para mantenimiento aeronaves 151.4 Cash US$MM Cash/Revenue LTM US$MM PDP's Depósito para arrendamiento aeronaves 359.5 106.2 Total 524.1 Maintenance Reserves 161.5 Security Deposits for Operating Leases 37.1 Total 558.1 * Cash and Cash equivalents under IFRS standards expressed in USD$ Millions Source: Company information 8
2Q 2013 Fuel Hedging Strategy FUEL HEDGE (% Consumption) 47% 50% 46% 43% 14% 40% 15% 31% 17% 30% 14% 20% 33% 31% 1% 25% 10% 17% 1% 1% 1% 0% 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 H.O SWAP H.O CALL OPT INSTRUMENT 3Q -13 4Q -13 1Q -14 2Q -14 3Q -14 4Q -14 H.O SWAP (USD) 2,887 2,909 2,921 2,892 2,799 2,790 H.O CALL OPT (USD) 2,933 3,010 2,981 2,854 0 0 * Hedge in Heating Oil During the second quarter of 2013 realized Hedged 164 million gallons, approximately hedge losses summed up to USD$ 1.0 million, 31% of the expected volume to be consumed which accounted for 27% of the gallons over the next 12 months hedged. The average hedge price per gallon stands at USD$ 2.92 / gallon Source: Company information 9
2Q 2013 Passenger Business Highlights Capacity (ASK’s millions) Traffic (RPK’s millions) Load Factor Load Factor Capacity (ASK’s millions) Traffic RPK’s (millions) 9.3% 0.5 pp 8.7% 9,506 7,435 78.2% 8,748 6,801 77.7% RASK (USD$) CASK - Exfuel (USD$) Yield (USD$)* Yield (USD$) TRASK (USD$) CASK* - Exfuel (USD$) -0,5% -1.0% -3.2% 8.01 12.6 11.7 12.2 11.6 7.97 QoQ Total CASK decreased 3.0% 2Q 2012 2Q 2013 *Accounting Cask includes all business segments (Passenger, Cargo & Other) Source: Company information 10
Diversified Capacity Growth International Domestic Network Regional Network Network Colombia – Peru - Ecuador Central America Bucaraman ga Waspan Puerto 3 HUBS Bonanza Cabezas Pereira Rosita Armenia Sluna Ibague Bogota Corn Island Blue Field San Salvador San Carlos Lima San Juan del Norte La Fortuna/Arenal Tamarindo 3 Complementary Tambor Focus Cities Quepos/Manuel Antonio Palmar Sur Bahía Draka San Jose Golfito Puerto Jimenez Guayaquil Map Conventions Quito Taca Regional routes Destinations Guayaquil HUBS Map Conventions Map Conventions Complementary Focus Cities Avianca,Taca, Aerogal routes Map Conventions Destinations La Paz HUBS Santa Cruz Avianca routes de la Sierra +4.4% Complementary Focus Cities Destinations CAM & CAR HUBS Complementary Focus Cities 18.7% Domestic +1.05% Total ASK North America 17.8% Intra Home Markets +0.41% Growth South America 8.7% +22.8% Europe (Spain) Source: Company information 11
Recommend
More recommend
