Cebu Air, Inc. 3 rd Quarter Results of Operations November 14, 2019
Disclaimer The information provided in this presentation is provided only for your reference. Such information has not been independently verified and, as such, is not guaranteed to be accurate nor complete. Neither Cebu Air, Inc. (“CEB” or the “Company”) nor any of its affiliates, shareholders, directors, employees, agents or advisers makes expressed or implied representations or warranties as to the accuracy or completeness of the information contained herein and neither of them shall accept any responsibility or liability (including any third party liability) for any loss or damage, whether or not arising from any error or omission in compiling such information or as a result of any party’s reliance or use of such information. The information and opinions in this presentation are subject to change without notice. EBITDAR, EBITDA, EBITDAR Margin, EBIT and core net income are not measures of performance under the Philippine Financial Reporting Standards (“PFRS”), and should not be considered in isolation or as alternatives to net income as an indicator of CEB’s operating performance or to cash flow from operating, investing and financing activities as a measure of liquidity, or any other measures of performance under PFRS. Because there are various EBITDAR, EBITDA, EBITDAR Margin, EBIT and core net income calculation methods, CEB’s presentation of these measures may not be comparable to similarly titled measures used by other companies. This presentation also contains certain “forward-looking statements.” These forward-looking statements include words or phrases such as CEB or its management “believes”, “expects”, “anticipates”, “intends”, “plans”, “foresees”, or other words or phrases of similar import. Similarly, statements that describe CEB’s objectives, plans or goals are also forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement. Such forward looking statements are made based on management’s current expectations or beliefs as well as assumptions made by, and information currently available to, management. There is no assurance that expected events will occur, that projections will be achieved, or that the Company and its management’s assumptions are correct. 2
3Q2019 Snapshot RPK: 6.1B, +18.2% • Fleet: 72 AC Rev: P18.92B, +16.8% Pax vol: 5.47M, +15.1% vs 67 3Q18 ASK: 7.3B, +16.7% SLF: 85.1%, +2.7% pts Jet/bbl: $76.91,-13.4% Pax yield: P3,191, +2.8% Php/$: P51.78, -3.3% EBITDAR:P5.27B, +61.1% PTCore Inc: P259M,+123.8% Net Income: (P384M),+25.9% EBIT: P885M, +241.8% 3
9M2019 Year to Date Update Rev: P63.6B, +17.7% RPK: 18.5B +14.5% Pax Vol: 16.7M, +10.4% ASK: 21.7B +13.5% SLF: 86.5%, +1.8 ppts Jet/bbl: $77.66, -9% Pax yield: P3,555, +7.6% Php/$: 52.06, -0.9% PTCore Inc: P7.89B, +171% EBITDAR: P22.5B, +47% • 12.4% PTC margin EBIT: P9.82B, +137% Net Income: P6.7B, +143% • EBIT 15.4% margin • 10.6% Net margin 4
Domestic Market 3 rd Qtr: 3.9M passengers, up 11.2% YOY 4.5M seats, up 6.1% YOY, for 87% SLF YTD 9M: 11.9M passengers, up 7.3% YOY 13.5M seats, up 4.8% YOY, for 88% SLF • 35 destinations 53% Market share = 1.06 CPI Network: • 80 routes • >2,100 weekly flights Clark-Iloilo and Clark-Bacolod daily flights launched August 5
International Market 3 rd Qtr: 1.6M passengers, up 25.5% YOY 1.95M seats, up 25.4% YOY, 82% SLF YTD 9M: 4.8M passengers, up 19.0% YOY 5.8M seats, up 18.0% YOY, 83% SLF Manila-Shenzhen: • 27 destinations 4x/wk flight launched July • 41 routes Network: Clark-Narita: • 581 weekly flights 4x/wk launched Aug 6
Income Statement Highlights 3Q19 3Q18 % YOY 9M19 9M18 % YOY Total Revenue (Php M) 18,922 16,202 17% 63,625 54,037 18% Strong 13,246 11,234 18% 46,598 39,537 18% Passenger passenger Ancillary 4,196 3,522 19% 12,711 10,402 22% demand Cargo 1,479 1,445 2% 4,315 4,098 5% Average Yields Average fare/pax 2,423 2,364 3% 2,794 2,617 7% Ancillary/pax 768 741 4% 762 689 11% + Yields up Cargo yield / kg 27.37 26.15 5% 27.76 26.84 3% ASK (M) 7,278 6,238 17% 21,724 19,144 14% Revenue/ASK (RASK) 2.60 2.60 0.1% 2.93 2.82 4% Cost/ASK (CASK) 2.48 2.70 -8% 2.48 2.61 -5% +Effective CASK ex-fuel 1.65 1.67 -1% 1.63 1.63 -0.1% Jet $/bbl* 76.91 88.77 -13.4% 77.66 85.37 -9.0% Cost Mgt P/US$* 51.78 53.56 -3.3% 52.06 52.51 -0.9% Income (PHP million) EBITDAR 5,274 3,275 61% 22,503 15,271 47% EBIT 885 -624 242% 9,816 4,136 137% Pre-tax Core Income 259 -1,088 124% 7,964 2,941 171% = YTD 9M Net Net Income -384 -518 26% 6,754 2,781 143% Inc > double! Margins (%) % % ppt % % ppt EBITDAR 27.9 20.2 7.7 35.4 28.3 7.1 EBIT 4.7 -3.9 8.6 15.4 7.7 7.7 Pre-tax Core Income 1.4 -6.7 8.1 12.5 5.4 7.1 Net Income -2.0 -3.2 1.2 10.6 5.2 5.4 8 *source: Published MOPS and BAP rates
Balance Sheet Highlights Sept. 30, Dec. 31, 2019 vs end In Millions of PHP 2019 2018 2018 Cash and cash equiv. 21,578 16,893 4,685 Other current assets 7,985 9,052 -1,067 + 2 A320NEOs, - 2 A320CEOs Property & equipment 88,269 95,099 -6,830 IFRS16: Capitalized lease Right of Use Asset 33,411 - 33,411 Others 7,338 8,347 -1,009 Dividends paid July 2019 TOTAL ASSETS 158,581 129,391 29,190 Current Debt 6,038 6,615 -577 Conservative Net Debt to Noncurrent Debt 39,668 47,182 -7,514 Equity of 1.36x Current Lease 5,595 - 5,595 already inclusive of Noncurrent Lease 28,079 - 28,079 capitalized lease liability Other liabilities 36,680 35,492 1,188 TOTAL LIABILITIES 116,060 89,289 26,771 EQUITY 42,518 40,102 2,416 Cash to Sales Ratio 30.2% 23.0% Current Ratio 0.72 0.75 Net debt to Equity 1.36 0.92 9
Cash Flow Highlights in Millions of PHP 9M19 CASHFLOWS FROM OPERATING ACTIVITIES Income after noncash adjustments 21,839 Exits Net changes in working capital 860 • 3 A320s sold Interest and taxes paid – net -2,116 • 2 A320s Net cash provided by operating activities 20,583 returned CASHFLOWS FROM INVESTING ACTIVITIES Deliveries: Acquisition of PPE -4,591 • Proceeds from disposal 4,406 2 A321NEOs • Other noncurrent asset 513 3 A320NEOs Net cash provided by investing activities 328 • 1 ATR 72-600 CASHFLOWS FROM FINANCING ACTIVITIES Repayment of debt -7,647 Payment of lease liability -3,993 Dividends paid -4,206 1.45 M shares bought back Treasury Stocks -121 since January 2, 2019 Net cash used in financing activities -15,967 Net foreign exchange difference -259 NET INCREASE IN CASH AND CASH EQUIVALENTS 4,686 CASH AND CASH EQUIVALENTS, beginning 16,893 CASH AND EQUIVALENTS, END 21,578 10
Macroeconomic and Commercial Outlook Macroeconomic and Commercial Outlook Fuel: with layered hedges to match bookings: Jet fuel at $76.4/bbl* vs. $77.7/bbl end Sept’19 Ongoing hedge ratios: 3M Forward booking as of Oct 28 : 39% of seats sold for the next 3 mos, 37% for balance 2019 ahead of 35% same period LY 27% for 2020 CEB layers these hedges using swaps and collars with Jet and Brent as underlying Forex: Natural hedges reduce exposure: USD at Php 50.41* vs. Php 51.83 end Sept’19 Natural cash flow hedges and non-deliverable forwards Rates: Now at a downtrend: 3Mo Libor at 1.891%*, down 31 bps vs. 3Q19 3Mo BVAL at 3.154%*, down 47 bps vs. 3Q19 Php loans at 100% float USD loans and leases at 37% float 12 * date of ref : Nov 5, 2019; bps = basis points
Fleet Plan, end Sept 2019 Number of Aircraft to be Aircraft Delivery Total remaining aircraft Delivery Delivered Schedule order of 66*, to replace Existing Order: Airbus A320CEOs , A330 A320NEO 2 2H2019 CEOs, and ATR 72-500s A321NEO 30 2H2019-2023 ATR 600 3 2020-2022 Estimated seat growth : New Order: 5 year CAGR of 8-9% A330NEO 16 2021-2024 A320NEO 5 2023-2024 Baseline fleet of 89 A321XLR 10 2024-2026 aircraft by 2024, but Total Order 66 with ability to grow further or moderate * 2 out of 66 AC orders were received last October 1 and 10, 2019 13
cebupacificair.com
Recommend
More recommend
