Seoul, February 2017
Content Milestones Success Factors Future Growth 2
Milestones
Successful execution of the low cost carrier model in Vietnam and Southeast Asia 65% 65% Milestones Flew its first Achieved Achieved Incorporated commercial Flew its first Hosted its Signed 29.6% 37.1% Signed contract Hosted its Hosted its and obtained air flight from Ho international 3,000,000 th contract with domestic domestic with Boeing to 10,000,000th 19,000,000th operator ’ s flight between carried Airbus for purchase 100 Chi Minh City market share market share passenger passenger ( “ HCMC ” ) to certificate HCMC and passenger purchasing as at as of 31 Boeing 737 MAX ceremony ceremony “ AOC ” Hanoi as well Bangkok ceremony 100 Aircrafts 31 December December 200 aircraft as to Da Nang 2014 (1) 2015 (2) 2007 2011 2012 2013 2014 2015 2016 Awards Top 10 Golden Award outstanding Vietnam Best Vietnam Best Recognitions of PATA 2015 for “ Best Asian Low International Star Places to Work in brands by the Places to Work in Best airline award Achievement Cost Carrier 2015 ” , Award for Quality, innovative the Tourism and International from the Vietnam the Tourism and given by Prime by the Business marketing campaign by TTG Travel Intellectual Hospitality industry Economic Times Hospitality industry Minister in 2015 by the Pacific Asia Initiative Directions Awards 2015 2014 by Anphabe Property Institute, 2014 by Anphabe Travel Association Vietnam & Nielsen & Nielsen (1) Source: CAAV; based on total passengers boarding domestically via Vietnam-based airlines for the full year ended 31 December 2014 (2) Source: CAAV; based on total passengers boarding domestically via Vietnam-based airlines for the full year ended 31 December 2015 4
Viet ietnam's nam's leading L leading LCC – ac achie hieved within ed within just 4 y just 4 year ears (VND bn) • Achieved a domestic market share (i.e. among Vietnam-based airlines for passengers 15,000 boarding domestically) of 37.1% as of 31 December 2015 (1) , within only 4 years of US$506m (7) 12,000 operations. Further achieved a domestic market share of 43.1% as of 30 June 2016 (2) 9,000 US$338m (7) US$327m (7) 6,000 11,079 • Operated an extensive network of 36 domestic routes and 17 international routes, US$180m (7) 7,402 6,946 3,000 excluding charter services as of June 30, 2016 3,793 0 2013 2014 2015 1H2016 • Served 9.3m passengers in FY2015, representing a CAGR of 71.8% since 2013 (3) Gr Growt wth (FY13 – 1HF HFY16) • Modern and young fleet (average age of 3.3 years) comprising 33 Airbus A320s and 5 Passengers (m) Total aircraft 38 A321s as of 30 June 2016, with an additional 102 Airbus A320-family (4) and 100 Boeing 30 737 MAX 200 aircraft on firm order with an option to lease additional Airbus aircraft 19 10 • Has successfully executed the low cost carrier model, achieving CASK and CASK ex- 9.3 6.4 5.6 3.2 fuel of US¢ 4.14 and US¢ of 2.42 in FY2015 (a decrease from US¢ 5.3 and US¢ of 2.57 2013 2014 2015 1H2016 in FY2013 respectively); Strong growth trajectory with FY2015 Adjusted Revenue of CASK K and CASK K (ex-fuel) (6) US$506m and EBITDAR of US$190m, growing at 70.9% and 119.9%, respectively (5) (US Cents (7) ) Ex-Fuel Ex-Fuel CASK: 2.57 CASK: 2.48 Ex-Fuel Ex-Fuel • Aims to be a multinational airline with an intensive regional and global network CASK: 2.42 CASK: 2.43 coverage, delivering not only aviation services but also consumer services applying e- 5.30 5.04 4.14 3.81 commerce platform 2013 2014 2015 1H2016 (5) Adjusted revenue calculated as total revenue less aircraft sale proceeds; 1US$=21,890VND; CAGR since FY2013 (1) Source: CAAV; based on total passengers boarding domestically via Vietnam-based airlines for FY2015 5 (2) Source: CAAV; for the month ended 30 June 2016 (6) Calculated as cost of sales less the cost of aircraft sold plus selling expenses and general and administrative expenses, Based on total air tickets purchased through VietJet’s ticketing channels divided by ASK (3) (7) Converted at 1US$=21,036VND, 1US$=21,246VND, 1US$=21,890VND and 1US$=21,873VND for FY13-1H16, respectively (4) Out of a total order of 119 aircraft, of which 17 has been delivered
Key Factors (1H2016) 24.8 mm 88% Domestic cumulative passengers 88% Network Ha Noi carried (1) Hai Phong Load Factor (1) Thanh Hoa Vinh Dong Hoi 38 Aircraft (1) 43.1% Da Nang 05 Operational bases Domestic Share (2) Hue Quy Nhon Buon Ma Thuot 53 Routes (1) Nha Trang Da Lat 13.1 hours Can Tho 36 Domestic Phu Quoc Aircraft Utilization 17 International Ho Chi Minh US$574.1mm 6.8 mm Total Revenue (3) Passenger ) 40.13% YOY 1H2015 66% YOY 1H2015 (1) Up to 30/06/2016; Exchange rate: 21.6730 VND/USD & 21,873 VND/USD as at 30/06/2015 and 30/06/2016 (SBV rate) (2) June 2016.. (3) Consolidated financial statement 1H2016 6
Success Factors
Vietnam – A large market Amongst fastest growing urbanizing The fastest growing economy in ASEAN economies in ASEAN 2014 2050 Projected real GDP per capita population living in urban areas) 5.2% Urbanization (share of total 12% CAGR (CY2016-CY2021) 100% 100% 4.8% 23% 4.4% 18% 86% Avg. ASEAN (1) : 3.9% 12% 21% 74% 71% 72% 3.0% 3.1% 56% 1.6% 54% 53% 49% 44% 33% Vietnam Philippines Indonesia Thailand Malaysia Singapore Vietnam Philippines Indonesia Thailand Malaysia Singapore Strong historical and forecasted international Low air-travel penetration – even within Asia tourism growth 10,000 % 2010-2014 CAGR 2010 2015 2020 Brunei % 2014-2020 CAGR 2014 total RPKs per capita 8,000 9.5% 9.4% 8.2% 4.5% 12.5% 0.9% New International tourist 7.9% 6.6% 7.5% 6.5% 7.0% 6.8% arrivals (in millions) Zealand 42.0 Australia 6,000 35.8 US 29.9 4,000 24.3 25.7 24.6 Malaysia South 17.7 16.6 14.9 Korea 14.2 2,000 Thailand 10.4 10.4 7.1 Japan 7.0 7.1 Vietnam 5.2 4.5 3.3 China 0 Indonesia 0 15,000 30,000 45,000 60,000 75,000 Vietnam Philippines Indonesia Singapore Thailand Malaysia 2014 GDP per capita (US$) (1) Includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam Source: SAP independent industry report; IMF World Economic Outlook Database (July 2015), ICAO (2014 annual 8 report), Travelocity, Vietnam Rail, Hoang Long Transit Co, (December 2015)
• Vietnam – Why LCC? Air travel is the fastest growing mode of transport 2010 - 2015 Growth in Passengers (%) 17.2% stimulates airline travel and captures market share from other modes of transport such 7.7% as bus and rail due to advantages of air travel vis-à- vis land transport 0.7% Rail Air Road River (1.5%) 94.2% 93.3% Share of domestic transport modes (%) Air travel is the most efficient transport mode (1) Hanoi HCMC – Hanoi HCMC – Danang Travel 5.8% Time Fare Fare Time Fare Fare modes 4.5% (hrs) (VND) (USD) (hrs) (VND) (USD) 615 km (2) 44 3 28 4 Air 2:05 961,000 1:20 615,000 1,150 km Bus 35:00 861,385 39 15:30 405,458 19 0.7% 0.5% 0.4% 0.3% Rail 34:00 1,066,278 49 17:00 616,833 28 HCMC Air Road Rail River 2011 2015 9
Vietnam – Significant government support Stringent licensing requirements Highly concentrated domestic markets, effectively a duopoly # of AOCs (Air Operator’s Certificate excludes General Aviation) (Controlled by ) 41 1.8% 13.8% (Controlled by 37 ) 27 (1) 4 41.3% Vietnam Indonesia Philippines Thailand 43.1% Domestic market share % by air passenger volume for June 2016 (2) No new commercial entrants since 2011 when VietJet Minimal foreign competition as no foreign airlines permitted to commenced its first commercial flight operate domestic routes Air transport master plan Key government incentives to support VietJet US$10.5bn investment to develop airport infrastructure across the country, increasing the number of operational airports from 22 Fuel Airport to 26 by 2020 Tax supply costs (1) Excluding 2 licenses withdrawn due to bankruptcy (2) Source: CAAV; based on total passengers boarding domestically via Vietnam-based airlines for the month ended 30 June 2016 Source: SAP independent industry report; CAAV, Ministry of Transportation Republic of Indonesia, Civil Aviation Authority of the Philippines, Department of Civil Aviation (DCA) of Thailand, Axis Research Ltd. report dated July 2015 10
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