Corporate Presentation
April 2015
Agenda
•1 Aegean Airlines – company overview
•2 Update on market environment
•3 Financial results and strategy going forward
Gradual growth even at tough times
• Full Service Carrier
– Focus on quality,
efficiency, productivity
• Young fleet of 50 Aircraft
(2014)
– 36 Airbus A320 family
– 14 Bombardier
1999
• Launched
operations
3
19992001
• 2 local
acquisitions
2002
• First
international
routes launched
20062007
• 27 Airbus order
Traffic in Passengers (m)
10.1
8.8
6.2
5.9
6.1
4.4
3.6
2.4
1.6
0.3
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Aegean pax
2008
• Largest Greek
airline
2010
• Star alliance
member
2011
• Becoming single
type jet operator
Olympic Air
2013
• Acquisition of
Olympic Air
2014
• 7 Airbus order
2015 Network
ASKs* by region
Skandinavia
4%
Balkans
2%
Domestic
Market
15%
CEE
8%
Cyprus
12%
Middle East
8%
Western
Europe
51%
Available seats
by region
Cyprus
10%
Domestic
Market
47%
134 destinations
 100 international
 34 domestic
4
* ASKs: Available Seat Kilometers
Western
Europe
27%
Middle East
7%
Skandinavia CEE Balkans
4% 3%
2%
Agenda
•1 Aegean Airlines – company overview
•2 Update on market environment
•3 Financial results and strategy going forward
Total market grows by 15% in 2014
• Strong rebound in Athens Traffic
• Strong rebound in domestic / on lower fares / supply increase /
demand stimulation
• Continuous growth in rest of Greek airports (purely incoming
leisure)
In m passengers
2007
2008
2009
2010
2011
2012
2013
2014
14/13
yoy
Domestic Traffic
6.6
6.5
6.8
6.2
5.6
5.2
5.0
6.1
21%
International - Athens
10.6
10.6
10.0
9.8
9.5
8.4
8.2
9.9
21%
International - Rest of Greek Airports
17.5
17.3
16.0
16.1
18.2
18.0
20.3
22.7
12%
International traffic
28.1
27.8
26.0
25.8
27.6
26.4
28.5
32.6
14%
Total Traffic
34.7
34.3
32.8
32.1
33.2
31.6
33.5
38.6
15%
Source: Hellenic Civil Aviation Authority, Aegean Airlines
6
TOTAL MARKET
Greek Tourism
• Total arrivals by air exceed 14m in 2014 (+15%)
• Strong arrivals growth from traditional western European
source markets more than offset weakness from Russia
Total tourist arrivals*
By Air
By other modes of transport (mainly road)
Tourist arrivals by air
By country of origin
25,0
22,0
20,0
America
6%
Asia
3%
17,9
16,2
16,4
15,9
15,0
14,9
15,0
15,5
Germany
15%
14,1
10,0
11,9
11,7
10,8
11,6
10,7
UK
15%
12,3
11,2
7,9
5,0
4,3
4,3
4,8
4,3
4,2
France
10%
5,6
4,3
Russia
9%
0,0
2007
7
Rest of
Europe
34%
2008
2009
2010
2011
2012
source: Aegean estimates, Bank of Greece, SETE, AIA surveys, excludes 2m cruises traffic reported
by SETE
2013
2014
Italy
6%
Agenda
•1 Aegean Airlines – company overview
•2 Update on market environment
•3 Financial results and strategy going forward
Last 10 years at a glance
Revenue
850
312
14.000
120
12.000
€m/%
683
559 553
261
912
100
€m
ASKs
Pre-tax profit / margin
369
516
580 563
In m
10.000
80
8.308
8.000
60
440
12.194
10.732
6.216
6.000
40
4.000
20
12% 8% 10%
2% 6% 9% 10% 7% 6%
9.139
3.692
4.023
2.000
0
0
-20
-40
11,0
Passenger Traffic
9,0
7,0
7,0
-4% -5% -2%
Unit costs / stage length
6,0
1.000
5,0
In m
800
4,0
5,0
3,0
3,0
1,0
4,3 4,9
3,5 3,5 4,0
3,1
2,8
1,9 2,3
1,0 1,2 1,4
2,0
1,0
In € cents
9
International Pax
Domestic Pax
90%
80%
600
70%
400
60%
71%
200
50% 62%
0
40%
5,7 6,2 6,4 5,9 6,1 5,2 5,1 4,4 4,3 4,2 5,3 4,9
0,0
-1,0
Load Factor
1.200
CASK (excl fuel)
FY04-FY13: Aegean standalone / Group FY:13 & FY:14 include full consolidation of Olympic Air
Average stage length km
69%
68%
74%
78% 78%
Aegean Strategy & market developments
10
2004-2008
2009-2012
2013-2014
Gradual Growth
Successful restructuring
Consolidation / synergies
• Building presence / brand
/product
• Heavy reliance on domestic
network & local demand
• Mix of fleet
• No alliances
•Extrovert/ incoming leisure
focus
•Flexibility/outsourcing/
homogeneous jet fleet
•Quality/customer excellence
focus remains
•Star Alliance entry
• Seek scale economies
• Acquisition of Olympic
• Network expansion / Build
network flows, connectivity
• Gradual growth of LCC
• State owned Olympic
•GDP loss / Unemployment /
Traffic demand sharply down
•Privatization of traditional
competitor
•Rapid growth of LCC
• Strong rebound in Athens
traffic
• Competition intensifies
• Domestic network new
competitor
Aegean & Olympic vs market
38.6
20,0
34.7
18,0
16,0
29.6
30.8
32.7
34.3
32.8
33.2
32.1
33.5
40,0
35,0
31.6
30,0
14,0
11.2
12,0
10,0
9.4
9.8
11.3
11.2
25,0
10.6
10.1
10.1
9.9
9.0
20,0
8.8
8,0
15,0
6,0
10,0
4,0
5,0
2,0
0,0
0,0
2004
2005
2006
2007
2008
Total GR market
Source: Hellenic Civil Aviation Authority, Aegean Airlines
Note: 2004-2009 passenger traffic of state owned Olympic Airways / 2010-2013 Olympic Air
11
2009
2010
OA
2011
A3
2012
A3&OA
2013
2014
FY:2014 First full year since Olympic Acquisition
brings real growth in capacity
12
2013
2014
Fleet 45 A/C
Fleet 50 A/C
8 A/C Bases
9 A/C Bases
104 Destinations
119 Destinations
32 International destinations from
Athens
47 International destinations from
Athens
11.8m seats
13m seats
8.8m pax
10.1m pax
Note: Capacity / passengers including Olympic Air for the full year in both 2013 & 2014
FY:2014 Financial results
Investment in Athens & connectivity yield positive results
•
•
•
Traffic drivers:
+20% growth out of Athens
– Demand elasticity to lower fares
– Supply increases
+30% growth in connecting traffic
– Connectivity
– Athens becomes more attractive as a destination
Synergies, scale economies drive unit cost lower / Yield pressure continues / Ancillary boost
One-off positive tax provisions
Key Headlines in EUR m
Revenue
EBITDAR
Pre-tax earnings for the period
Net earnings for the period
Total Passengers
Domestic passengers
International passengers
Load factor - Scheduled services (RPK/ASK)
RASK (in € cents)
Yield (in € cents)
CASK (in € cents)
CASK (in € cents) - excl. fuel costs
13
FY:13
Pro-forma
850.0
181.8
70.9
52.5
8.8
4.5
4.3
78.3%
8.0
10.2
7.4
5.3
Note: FY2013 pro-forma, assuming full consolidation of Olympic Air for the full year
FY:14
Group
911.8
209.5
94.6
80.2
10.1
5.2
4.9
78.3%
7.6
9.6
6.8
4.9
7%
15%
34%
53%
14%
15%
13%
-6%
-6%
-8%
-8%
Strong cash flow generation
Cashflow 2014 (EUR m)
35m Airbus
+10.4 m Olympic
Air installments
400
350
122
10
71.4m return to
shareholders
20
51
300
250
200
80
227
207
150
100
50
0
Cash at the beginning of operating cashflow
the year
before working capital Δ
14
Total changes in
working capital
Interest & tax
Net cash flows from
investing activities
Net cash flows from
financing activities
Cash and cash
equivalents at the end
of the period
Fleet evolution
• Focus so far on flexibility: adjust to needs & market: Lease expirations 2-3
A/C per year / only 4 on balance sheet A/C
• Past commitment order of 5 Airbus + 2 more => agreed for delivery
2015/2016
• Additional A/C under operating leases to be added in 2015 to support
network expansion
60
Number of A/C & Total seats
50
14
14
40
30
3
20
10
0
4
6
4
6
6
6
1999
2000
2001
2002
8
6
2003
Note: Olympic Air fleet included as of 2014
21
22
13
12
14
14
10
6
6
6
6
6
4
6
4
2004
2005
2006
2007
2008
2009
2010
RJ100
15
11
B737
A320
BOMBARDIER
29
30
31
2011
2012
2013
Seats
36
2014
43
2015
9.000
8.000
7.000
6.000
5.000
4.000
3.000
2.000
1.000
0
2015 capacity plans: 15m total seats, 2m more vs 2014
Mainly increasing frequencies on existing routes…
2013
2014
2015
Fleet 45 A/C
Fleet 50 A/C
Fleet 57 A/C
8 A/C Bases
9 A/C Bases
9 A/C Bases
104 Destinations
119 Destinations
134 Destinations
11.8m seats
13m seats
15m seats
Additional capacity invested mainly
on:
 International network
 Athens, Crete, Cyprus bases
 Increasing frequencies on existing
routes (opened 1-2 years ago)
THESSALONIKI
CORFU
60%
ATHENS
KALAMATA
% total
international
Seats offered
2015
KOS
8%
CHANIA
HERAKLION
RHODES
17%
LARNACA
…& new international destinations launched
• Helsinki
• Toulouse
• Deauville
• Metz
• Pisa
• Malta
• Amsterdam
• Alexandria
• Sharm El Sheikh
Finland
France
Italy
Malta
Netherlands
Egypt
• Paphos
• Riyadh
• Tallinn
• Oslo
• Tehran
• Yerevan
Cyprus
S. Arabia
Estonia
Norway
Iran
Armenia
• Dubrovnik
Croatia
17
Appendix
18
Shareholder Structure
34%
35%
Th. Vassilakis *
Other pre-IPO shareholders
Free Float
31%
Listed on the Athens Exchange
*11.6% controlled through Autohellas
19
Profit & Loss
P&L
In € millions
Revenue
Scheduled Services
Charter
Other (cargo, service charge, executive aviation)
Total revenue
Other operating income
Employee benefits
Aircraft fuel
Aircraft maintenance
Overflight expenses
Ground handling expenses
Airport charges
Catering expenses
Distribution expenses
Marketing and advertising expenses
Other operating expenses
EBITDAR
EBITDAR margin
Aircraft leases
EBITDA
Depreciation
EBIT
EBIT margin
Interest income
EBT
EBT margin
Income Tax
Net earnings / (loss) after tax
20
Note: FY2013 pro-forma, assuming full consolidation of Olympic Air for the full year
FY:13
Pro-forma Group
720.2
77.8
52.1
850.0
9.8
(102.7)
(223.5)
(71.3)
(46.2)
(51.6)
(34.5)
(18.6)
(58.0)
(8.4)
(63.3)
181.8
21.4%
(90.9)
90.9
(14.1)
76.8
9.0%
(6.0)
70.9
8.3%
(18.4)
52.5
FY:14
Group
748.6
61.4
101.9
911.8
9.7
(100.5)
(232.8)
77.6)
(53.9)
(51.5)
(37.4)
(21.1)
(61.2)
(12.3)
(63.8)
209.5
0.2
(90.7)
118.8
(12.8)
106.0
0.1
(11.3)
94.6
10.4%
(14.4)
80.2
In %
Change
4%
-21%
96%
7%
-1%
-2%
4%
9%
17%
0%
9%
13%
6%
46%
1%
15%
7%
0%
31%
-9%
38%
29%
90%
34%
25%
-22%
53%
Key Operating Statistics
Average passengers per flight
Load factor - Scheduled services (RPK/ASK)
Load factor - Scheduled services (Pax/AVS)
Average sector length (km)
RASK (Revenue per ASK, in € cents)
Yield (Revenue per RPK, in € cents)
CASK (EBITDAR level, in € cents)
CASK (EBITDAR level, in € cents) - excl. fuel costs
CASK (EBIT level, in € cents)
CASK (EBIT level, in € cents) - excl. fuel costs
Capacity
ASKs (in millions)
Total available seats (000)
Total Block Hours
Total Sectors Flown
Average capacity per flight
Average sector length (km)
Passengers (000)
By type of service :
Schedule passengers
Charter passengers
By network :
Domestic
International
Total number of passengers
RPKs (in millions)
Pax/flight
Load factor - Scheduled (Pax/AVS)
Load factor - Scheduled (RPK/ASK)
21
Note: FY2013 pro-forma, assuming full consolidation of Olympic Air for the full year
FY:13
Pro-forma
94
78.3%
74.2%
732
8.0
10.2
6.3
4.2
7.3
5.2
FY:13
10,732
11,879
135,801
93,601
127
732
FY:14
Group
102
78.3%
77.3%
767
7.6
9.6
5.8
3.9
6.7
4.8
FY:14
12,194
13,088
148,062
99,486
132
767
Change
In %
8%
0.0pp
3.1pp
5%
-6%
-6%
-8%
-7%
-8%
-8%
In %
14%
10%
9%
6%
4%
5%
8,169
673
9,574
539
17%
-20%
4,549
4,294
8,843
8,440
94
74.2%
78.3%
5,240
4,873
10,113
9,584
102
77.3%
78.3%
15%
13%
14%
14%
8%
3.1pp
0.0pp
Balance Sheet & Cash Flow
Balance Sheet
Group
In € millions
Dec 13
Dec 14
Total fixed assets
222.2
273.4
Cash and cash equivalents
226.9
207.5
Other current assets
112.3
146.5
Total assets
561.4
627.4
Total equity
212.9
216.5
Finance lease liabilities
59.0
58.5
Loans
0.0
0.0
Other Liabilities
289.4
352.5
Total equity and liabilities
561.4
627.4
Cashflow
In € millions
Group
Jan – Dec 2013
Jan – Dec 2014
Net cash flows from operating activities
104.8
111.5
Net cash flows from investing activities
(0.3)
(51.0)
Net cash flows from financing activities
(26.9)
(79.9)
Net (decrease)/ increase in cash and cash equivalents
77.6
(19.4)
Cash and cash equivalents at the beginning of the period
149.3
226.9
Cash and cash equivalents at the end of the period
226.9
207.5
22
Note: FY2013 pro-forma, assuming full consolidation of Olympic Air for the full year
Key financial metrics
EUR m
Period end cash & bonds
On balance sheet debt &
financial leases
Net debt / (cash)
Capitalised leases (aircraft rent x
7 annual)
Adjusted net debt / (cash)
Adjusted net debt / EBITDAR
Adjusted book gearing / book
equity (period end)
EUR m
Sales
EBITDAR
EBITDAR margin
EBITDA
EBITDA margin
Net earnings
Net earnings margin
EUR m
Operating cash flow (before taxes &
interest payments)
23
156
FY:13
Group
244
FY:14
Group
218
98
-73
82
-74
59
-185
58
-160
524
431
556
483
493
419
637
451
635
475
3.35
5.68
7.82
5.71
2.48
2.27
59%
68%
74%
73%
68%
69%
FY:08
FY:09
FY:10
FY:11
FY:12
183
213
196
172
86
-97
83
-130
103
-93
313
216
450
321
2.11
50%
FY:08
FY:09
FY:10
FY:11
FY:12
FY:13
Group
850
182
21%
91
11%
52
6%
FY:13
Group
65
49
-5
4
21
108
FY:08
559
102
18%
57
10%
29
5%
FY:09
553
96
17%
32
6%
23
4%
Note: FY2013 pro-forma, assuming full consolidation of Olympic Air for the full year
FY:10
516
76
15%
1
0%
-23
-5%
FY:11
580
62
11%
-18
-3%
-27
-5%
FY:12
563
73
13%
3
1%
-10
-2%
FY:14
Group
912
209
23%
119
13%
80
9%
FY:14
Group
132
Aegean Share
•
•
•
•
Listed in Athens Exchange
Bloomberg AEGN GA / Reuters AGNr.AT
IPO : July 2007 / €7.60 IPO price
Dividends / Returns:
– DPS
FY08 €0.25
– DPS
FY09 €0.13
– Capital return
FY13 €1.00
– DPS*
FY14 €0.70
• Contact:
[email protected]
+30 210 626 1660
* Pending AGM approval of May 12, 2015
24
Disclaimer
Forward Looking Statements
Except for historical information, the statements made or information contained in this presentation are forward-looking
in nature. These statements include financial projections and estimates and their underlying assumptions, statements
regarding plans, objectives and expectations with respect to future operations, products and services, and statements
regarding future performance. As such, they are subject to certain risks and uncertainties, many of which are difficult to
predict and generally beyond the Company’s control, which could cause the actual future performance to differ materially
from those referenced, projected or contemplated herein by any forward-looking statement, including but not limited to
the following: overall passenger traffic; the airline ticket pricing environment; the international expansion of our route
network; seasonal fluctuations in passenger travel; aviation fuel prices; landing and navigation fee changes; changes in
aircraft acquisition, leasing and other operating expenses; developments in government regulations and labour relations;
the cost of our ground handling operations; the future development of AIA, the Greek regional airports and the
international airports; foreign currency fluctuations, in particular between the euro and the U.S. dollar; the progress of
our code-shared and interline arrangements; the availability of additional slots or landing rights at existing airports and
the availability of new airports for expansion; interest rate fluctuations; extraordinary events, such as accidents, terrorist
attacks or threats of terrorist attacks, natural disasters and outbreaks of contagious diseases; the rates of taxes payable;
and general economic conditions in Greece and the European Union.
Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable
assumptions, it can give no assurance that its expectations will be attained. Therefore, past performance and/or forwardlooking statements are not to be treated as guarantees of future performance. The forward-looking statements are made
as of the date of this presentation, and we undertake no obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or otherwise.
25