Upload
golinvest
View
246
Download
2
Embed Size (px)
DESCRIPTION
2Q10 Earnings Conference Call Presentation
Citation preview
1
Conference Call - 2Q10 ResultsAugust, 2010
“Here Everyone Can Fly”
2
Disclaimer
“The material that follows is a confidential presentation of general background information about Gol Linhas Aéreas Inteligentes S.A. and its subsidiaries (collectively, “Gol” or the “Company”) as of the date of the presentation. It is information in summary form and does not purport to be complete. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or
completeness of this information.
This confidential presentation may contain certain forward-looking statements and information relating to Gol that reflect the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may
contain words like “believe,” “estimate,” “anticipate,” “expect,” “envisages,” “will likely result,” or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause
actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation. In no event, neither the Company nor any of its affiliates, directors, officers, agents or employees, shall be liable before any third party (including investors) for any investment or business decision made or action taken in reliance on the information and statements contained in this presentation or for any
consequential, special or similar damages.
This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment whatsoever.
The market and competitive position data, including market forecasts and statistical data, used throughout this presentation was obtained from internal surveys, market research, independent consultant reports, publicly available information and governmental agencies and industry
publications in general. Although we have no reason to believe that any of this information or these reports are inaccurate in any material respect, we have not independently verified the competitive position, market share, market size, market growth or other data provided by third parties or by
industry or other publications. Gol does not make any representation as to the accuracy of such information.
This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without Gol’s prior written consent”.
3
Agenda
2Q10 Highlights
Evolution of Air Traffic
Fleet renewal: New Costs Level
Outlook for the Second Semester
Financial Results
Q&A
1
2
3
4
5
6
Constantino Júnior, Founder and CEO
Leonardo Pereira, Executive VP, CFO and IR Director
4
1| 2Q10 Highlights
Give a different gift in Father’s Day: you.
Using GOL’s special fares, you spend Father’s Day on your father’s side. Plan ahead and enjoy.Access our website or your travel agent.
5
2Q10 HighlightsAir Traffic Increase, Fleet Renewal and the Company’s Competitive
Advantages, Make GOL a case of success
Traffic Increase of 17% over 2Q10 result
Net passengers revenues increase of 13,2%
Ancillary Revenues increase – highlight to cargo services growth of 57,8%
Aircraft productivity increase (13 block hours per day)
Operational gains for the second semester due to fleet renewal
5 B737-300 devolution
4 B767 aircraft started operating
Higher frequency and regularity in Brazil’s main airports
Low cost structure
SMILES, the biggest mileage program in Latin America (attracts business passengers)
Family Fare + VoeFácil store (attracts middle class)
Phased maintenance
2Q10 Highlights
GOL’s Competitive Advantages
6
2| Air Traffic Evolution
Access our website or consult your travel agent.
Incredible fares?Only at GOL’s tickets megasale.Enjoy it!
7
Air Traffic EvolutionWith Disciplined Capacity Growth
+17%
+18%
GOL ASK & RPK – Domestic Market
(bilion)
62% 72% 61% 67%62%
-0.3%
+20%
-15% +28%
+17%
+15%
GOL ASK & RPK – Total System
(bilion)
60% 72% 61% 67%Load Factor
OperationalFleet
(block/hours)
61%
11.3 13.0 13.1 13.011.3
-1%
+16%
-16%+27%
Load Factor
2Q09 6M096M106M09 6M10
8
3|Fleet Renewal: A New Cost Baseline
Personnel, jobs and evironment.The biggest maintenance center in Latin America is not going to take care only of aircraft.
9
1Q10 2Q10 Var. #
1Q10 2Q10 Var. #
Operational Non-Operational
Regular Flights
737-300 - - - 6 5 -1
737-700 NG 42 42 - 1 - -1
737-800 NG 66 69 3 5 - -5
Chater
767-300 - 4 4 6 2 -4
Total 108 115 7 18 7 -11
Fleet Renewal: New Costs LevelThe gap reduction between operational and total fleet increases
GOL’s efficiency and its costs advantages in 2S10Cost Reduction Map
Operational leasing reduction
4 B767 reactivated (increase revenue)
Next Generation Aircraft:
- Better performance
- Fuel economy
- Better profitability
Co
st Re
du
ction
Fleet snapshot: 5 B300s aircraft return – an
economy of about R$ 3.5mm/ quarter;
B767 reativation – generation of income on assets;
Next Generation aircraft:
better performance and cost reduction;
115
1087
18
1Q10 2Q10 1Q10 2Q10
10
4| Outlook for 2S10
At GOL you earn triple miles on flights arriving or departing from Campinas.
11
Outlook for the Second SemesterFlat Yields in direction to 2010 guidance
2010 Guidance Minimum Maximum
ASKs, System (billion) 45.0 47.2
RPK, System (billion) 31.5 33.0
Load Factor (%) About 70% About 70%
Demand Increase in the Domestic Market (% RPKs) 14.0% 21.0%
Yield (R$ cents) 19.50 21.00
Operating Margin (EBIT) 10% 13%
Capacity Management according to demand
Focus on approaching to a 70% load factor baseline for the year (considered a great Brazilian level of load factor)
Expectations of a Reponsable Management of industry capacity
A second semester expectation of a consistent volume of air traffic and in line with a guidance of 14.0% - 21.0% in 2010
12
5| Financial Result
13
REAL Margin vs. Ex- Margin
1Q10
Operating Margin of 11.1%CASK ex-fuel 8.84 (cent. R$)EBITDAR Margin of 23.4%
REAL Margin EX- Margin
1Q10
Operating Margin of 13.0%CASK ex-fuel of 8.53 (cent. R$)EBITDAR Margin of 25.4%
2Q10
Operating Margin of 3.6%CASK ex-fuel of 8.70 (cent. R$)EBITDAR Margin of 17.2%
2Q10
Operating Margin of 5.9%CASK ex-fuel of 8.37 (cent. R$)EBITDAR Margin of 19.5%
Expenses with fleet renewal
737-300 devolution and B767 reactivation
R$34 MM
737-300 devolution and B767 reactivation
R$37 MM
14
2Q10 Results
Financial 2Q10 2Q09 Var% 1Q10 Var%
Net Operating Revenues (R$MM) 1,591 1,394 14.1% 1,730 -8.0%
Ancillary Revenue 180 148 22.1% 162 11.3%
Passenger 1,411 1,246 13.3% 1,568 -10.0%
% Ancillary Revenue 11.3% 10.6% +0.7 pp 9.4% +1.8 pp
Total Costs (1,533.6) (1,304.1) 17.6% (1,538.4) -0.3%
Total Costs Ex-Fuel (961.9) (874.3) 10.0% (987.4) -2.6%
EBIT 57.3 89.9 -36.3% 191.4 -70.1%
EBIT Margin 3.6% 6.5% -2.9 pp 11.1% -7.5 pp
EBITDAR 274.2 258.8 5.9% 405.0 -32.3%
EBITDAR Margin 17.2% 18.6% -1.4 pp 23.4% -6.2 pp
Net Financial Result (113.2) 369.9 nm (133.7) -15.4%
Income taxes 4.0 (106.2) -103.8% (33.8) nm
Net income (loss) (51.9) 353.7 nm 23.9 nm
Net Margin -3.3% 25.4% -28.6 pp 1.4% -4.6 pp
Passenger Revenues in the domestic market (R$205 MM) Ancillary Revenue (cargo, no show and cancel fees, reschedule fees) (R$30 MM)
Depreciation (R$17 MM): Expenses with fleet renewal(R$37 MM) Fuel (R$142 MM) Publicity expenses with Smiles (R$13,5 MM)
EBIT: Expenses with fleet renewal (R$37 MM):
Exchange variation expenses (R$30 MM)Exchange hedge result (R$8 MM)
15
1.5891.159 322 154
134 123 50,9 385
Cash & EquivalentsTotal Debt 2010 2011 2012 2013 2014 After 2014Total Debts
After 2014
Financial Management (1)
Pay the debts in the next three years
Risk Management AvaliationAn efficient risk management is essential to guarantee GOL’s
growing strategy
(1) Includes only loans, senior notes and debentures
• Not-speculative oil hedge politics (only plain vanilla option)
Current WTI oil hedge 30% (max 50%) of fuel consumption for the next 12 months (max 24 months)
Foreign exchange hedge lower than 10% of costs (3-4 months of gap)
610
R$ miillion
Cash Position > 25% LTM Revenues in 2010
4.5x Adjusted Debt / EBITDAR in next 2 years
International credit rating BB(Standards&Poor’s and Fitch)
Availability (R$ MM)
Hedge Results (R$MM) 2Q10 WTI Foreign
Exchange
Interest
Rate Total
Operational - (1.3) - (1.3)
Sub-total Operating Result - (1.3) - (1.3)
Financial (19.0) (2.7) (0.7) (22.4)
Not designed to hedge (Financial) - 0.9 (4.2) (3.3)
Sub-total Financial Result (19.0) (1.8) (4.9) (25.7)
Total (19.0) (3.1) (4.9) (27.0)
OCI (net of taxes) 0.2 (2.5) (0.1) (2.4)
Hedge
Cash and cash equivalentsCash and cash equivalents (R$MM)
Cash and cash equivalents/Net Revenue
Total Debts
After 2014
2Q09 3Q09 4Q09 1Q10 2Q10
16
6| Questions & Answers