Avianca Holdings S.A. First Quarter 2013 Earnings Presentation May - PowerPoint PPT Presentation

Avianca Holdings S.A. First Quarter 2013 Earnings Presentation May 23 2013 1

Avianca Holdings S.A. Avianca Holdings S.A. The present document consolidates information from Avianca Holdings SA and its subsidiaries including unaudited financial figures, operational managerial indicators, financial indicators and managerial projections of future performance, in line with Avianca Holdings SA and its subsidiaries business plan. References to future behaviors are indicative and do not constitute a guarantee of compliance by the Company, its shareholders or directors. Unaudited accounting and financial information and projections presented in this document are based on internal data and calculations made by the company, which may be subject to changes or adjustments. Any change in the current economic conditions, the aviation industry, fuel prices, international markets and external events, among others, may affect the ongoing business results and future projections. Avianca Holdings S.A. herein after Avianca Holdings and its subsidiaries warns investors and potential investors that future projections are not a guarantee of performance and that actual results may differ materially. Every investor or potential investor will be responsible for investment decisions taken or not taken as a result of his or her assessment of the information contained herein. Avianca Holdings S.A. is not responsible for any third parties content. Avianca Holdings may make changes and updates to the information contained herein. The information, tables and logos contained in this presentation may not be reproduced without the consent of Avianca Holdings SA 2 Avianca Holdings S.A.

1Q 2013 Earnings Call Avianca Holdings S.A. AGENDA 1.The Industry Gerardo Grajales 2.Transition to IFRS Milton Solano 3.Earnings Results 1Q 2013 Gerardo Grajales 3 Avianca Holdings S.A.

Avianca Holdings S.A. AGENDA 1.The Industry Gerardo Grajales 2.Transition to IFRS Milton Solano 3.Earnings Results 1Q 2013 Gerardo Grajales 4 Avianca Holdings S.A.

Industry Analysis 1Q 2012 vs. 1Q 2013 Avianca Holdings S.A. Environment  Capacity worldwide, measured in ASK's, grew 2.3% during the first quarter of 2013 compared to the same period in 2012, while the load factor for the industry increase to 78.3%, up 1.5 pp compared to that obtained in 2012  During the first quarter of 2013, the number of passengers carried in Latin America grew 5.9% when compared to the same period in 2012. Capacity, measured in ASK’s, increased 5.4% while traffic measured in RPK ´ s increased 7.4%. As a result the load factor increased to 76.4% from 75.1% in the same period last year.  During the quarter, the global freight business experienced a slowdown in the tons shipped of -1.1%, however Latin America maintained a stable trend . Fuel Prices  Fuel prices decreased on average about 2.8% in the first quarter of 2013 compared to the same period in 2012. Exchange Rate  The Colombian peso experienced, during the first quarter of 2013, a depreciation of nearly 2.2%* Sourcee: IATA, ALTA *End Of Period . 5 Avianca Holdings S.A.

Avianca Holdings S.A. AGENDA 1.The Industry Gerardo Grajales 2.Transition to IFRS Milton Solano 3.Earnings Results 1Q 2013 Gerardo Grajales 6 Avianca Holdings S.A.

Transition to IFRS Avianca Holdings S.A. IFRS Effect on Avianca Holdings ’ 1Q 2012 Net Income Figures expressed in thousands of USD 1,814 (19,553) 4,422 (2,298) 6,008 (63,208) 7,544 8,115 (45,953) 34,890 (2) 2,711 IFRS accounting has no impact on cash flows 7 Avianca Holdings S.A.

Transition to IFRS Avianca Holdings S.A. IFRS Effect on Avianca Holdings ’ as of Dec 31 st 2012 Shareholders Equity Position Figures expressed in thousands of USD ,000 (61,670) 24,896 17,621 71,186 (71,654) (110,983) 1,184,067 ,000 (132,363) (303,961) (282,581) ,000 747,644 (1,858) ,000 ,000 ,000 ,000 0 IFRS accounting has no impact on cash flows 8 Avianca Holdings S.A.

Avianca Holdings S.A. AGENDA 1.The Industry Gerardo Grajales 2.Transition to IFRS Milton Solano 3.Earnings Results 1Q 2013 Gerardo Grajales 9 Avianca Holdings S.A.

1Q 2013 Earnings Results Highlights Avianca Holdings S.A. In the first quarter of 2013 AVIANCA HOLDINGS reported a Net income of USD$ 75.3 million  Operating revenues reached USD $ 1.11 billion , an increase of nearly 6.0% over the same period of 2012  Operating income (EBIT) for 1Q 2013 came in at USD $ 108.1 million, a 31% increase over the same period of last year. Consequently operating margin increased to 9.7%, up from 7.8% in 1Q 2012.  EBITDAR came in at USD $ 205.2 million, a 14.2% increase over the same period of last year. EBITDAR Margin for the quarter rose to 18.3% increasing 4.3 pp over the same period of 2012  The cost per available seat kilometer excluding fuel costs (CASK ex Fuel) decreased 1.85% versus the same period of 2012  Capacity measured in ASK’s increased 5.4%, while passenger traffic measured in RPK’s rose 7.8%. As a result, the load factor for the quarter increased to 80.8% from 79.0% in the previous year.  Passengers carried reached nearly 6.0 million , increasing 8.9% over the same period of 2012. 10 Source: Company information Avianca Holdings S.A.

1Q 2013 Earnings Results Summary Avianca Holdings S.A. (USD$ Millions) Q1 2012 Q1 2013 % Var Q1 2013 % VAR Q1 2013 (Ex-Items)* * Total Operating Revenues 1,056.9 1,118.8 5.9% 5.9% Passenger 882.7 940.3 6.5% 6.5% Cargo and other 174.2 178.5 2.5% 2.5% Total operating expense 974.5 1,010.7 3.7% 2.7% Expenses Excluding Fuel 648.8 670.9 3.4% 1.8% Aircraft fuel 325.7 339.8 4.3% 4.3% EBIT 82.4 108.1 31.1% 48.5% EBIT Margin 7.8% 9.7% 1.9 pp 2.8 pp Net Income -0.0 75.3 +100% 63.4% Net Margin 0.00% 6.73% 6.7 pp 2.3 pp EBITDAR 179.6 205.2 14.2% 20.9% EBITDAR Margin 17.0% 18.3% 1.3 pp 2.3 pp • Ex-Items: Excluding Gain/Loss on sale of property and equipment as well as fuel hedging and foreign exchange non operating expenses EBIT = Operating Income, EBITDAR = earnings before interest, tax, depreciation, amortization and aircraft rentals  A VIANCATACA operating revenues increased by 5.9%  Leveraged by a strong growth (8.9%) in passenger numbers, mail and tons carried  Ex-Items: Excluding 2012 and 2013 special items associated to fuel hedging M2M instruments and foreign exchange non operating expenses, net income rose 63.4%  Total Operating Revenues grew 5,9% while Total Operating expenses grew 3.7%. Excluding one time items Total operating expenses grew only 2.7% Source: Company information 11 Avianca Holdings S.A.

1Q 2013 Earnings Results Avianca Holdings S.A. 1Q 2013 Operating income highlights Figures expressed in millions of USD Total Operating Revenue increased by USD $61.9. Million +5.9% 0,00 4.3 1,118.8 57.6 0,00 1,056.9 0,00 0,00 0,00 0 0,00 Operating Passengers Cargo & Operating Revenue 2012 Others Revenue 2013 12 Source: Company information Avianca Holdings S.A.

1Q 2013 Earnings Results Avianca Holdings S.A. 1Q 2013 Total Costs Highlights Numbers expressed in million of USD$ Excluding special items total costs increased in USD $26.1 Million +2.7% 2.8 - 2.1 2.0 2.0 - 2.3 - 8.1 4.5 6.3 0,00 1,009.2 6.8 1,010.7 -1.5 14.2 983.2 8.6 974.5 0,00 0,00 0,00 0 0,00 Total Costs Q1 2012 Total Costs Fuel Ground G&A Wages Air Traffic Rentals Others D&A Sales Manto Total Costs Q1 2013 Total Costs 2012 Gain on 2012* Ops 2013 Loss on 2013* Asste Sales Asste Sales • Ex-Items: Excluding Gain/Loss on sale of property and equipment • Others Include: Flight Operations & Passenger Services 13 Source: Company information Avianca Holdings S.A.

1Q 2013 Earnings Results Avianca Holdings S.A. 1Q 2013 EBITDA Highlights Numbers expressed in million of USD$ Excluding special items total costs increased in USD$ 33.7 Million +31.5% 2.3 -14.1 8.1 0,00 57.6 4.3 -6.8 -6.3 0,00 -4.5 -2.1 -2.0 -2.8 1.5 140.7 139.3 0,00 115.7 - 8.7 0,00 107.1 0,00 0 0 0 0 0,00 EBITDA 1Q 2012 EBITDA PAX Other Manto Sales Fuel Ground G&A Wages Air Traffic Rentals Others EBITDA 1Q 2013 EBITDA 2012 Gain on 2012* Revenues Ops 2013* Loss on 2013 Asste Sales Asste Sales • Ex-Items: Excluding Gain/Loss on sale of property and equipment • Others Include: Flight Operations & Passenger Services 14 Source: Company information Avianca Holdings S.A.