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1
A Consistent Story with
Strong FundamentalsMay, 2010
“Here Everyone Can Fly”
2
A Consistent Story with
Strong Fundamentals
1| Largest and less penetrated market in the region
2| GOL | Evolution of the low cost and low fare model
3| Consistent story with strong fundamentals
4| Appendix
3
1| Largest and less penetrated market in
the region
A Consistent Story with
Strong Fundamentals
4
Brazil is Growing ConsistentlyEconomy and consumer market growth is leading a larger addressable market
3.2%
4.0%
6.1%
5.1%
-0.2%
2005
2006
2007
2008
2009
Consistent Brazilian GDP Growth (%)
4.5%
5.6%
4.9%
7.5%
3.9%
2005
2006
2007
2008
2009
Strong and Continuous Brazilian Real Wages Growth (%YoY)
19.4%
12.3%
11.7%
7.4%
17.6%
2005
2006
2007
2008
2009
Domestic Air Transportation Demand Consistently Grows at Least 2x the Brazilian GDP (% YoY)
10.7%
10.8%
12.7%
12.5%
4.9%
2005
2006
2007
2008
2009
Strong Expansion of Disposable Income (%YoY)
Domestic Traffic Grows Consistently Above GDP
Source: Banco Bank and ANAC (Brazilian Civil Aviation Regulator)
100 107 96115 119
141 131 128140
127155
159
99 00 01 02 03 04 05 06 07 08 09 10/jan
Brazilian Consumer Confidence Reached the Highest Level In History
5
Larger and High Potential Market...Although the low penetration, the Brazilian consumer base is
growing and pushing the addressable market
Brazil is Still is Under Penetrated Market
Flights per capita – Annual Average
1.3%
11.0%
5.6%
3.4%
7.6%
2004
2005
2006
2007
2008
Adressable Market (%YoY) Growing Very Strong
76
98
2003
2009
Brazilian New Middle Class Growth (mm)
98mm
128mm
+30%
+29%
22.6%
19.3%
18.3%
16.0%
2005
2006
2007
2008
Poverty Ratio (%YoY) Playing a Key Role to Expand Market Opportunities in Brazil
Source: IBGE – Brazilian Geography and Statistics Institute and Bradesco Bank
6
8.0 9.1
9.8
11.8 11.5 11.4 11.5
2002 2003 2004 2005 2006 2007 2008
29 32 35 38 43 43 53 57
46 46
63 68
89 98 100 96
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Main benefits to GOL:
Boosts international and domestic traffic
Strengthens country's exposure to the travel and
tourism industries
Brazilian Government committed R$5 billion to invest in airport
infrastructure
Private sector and Government entities are already discussing
infrastructure alternatives
No significant infrastructure short term risk
World Cup hosting cities
Olympics & World Cup to Boost Traffic in BrazilPast events raised air traffic demand to new levels
31 31 41 43 40 43 44 51 59
71 86
120 137
156
180 186
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
China Germany South Africa
Air Travel Passengers Transported (mm)
Source: ICAO (International Civil Aviation Organization) – considers domestic carriers for both international and domestic flights
7
2| GOL - Evolution of the low cost and
low fare model
A Consistent Story with
Strong Fundamentals
8
TAM 46.3%
GOL 47.8% Oceanair
4.2%
Azul0.3%
Webjet0.6%
NHT 0.9%
Dominant Postion & Standardized B737 FleetWidest route network in Latin America: 50 destinations in Brazil and 11 in
South America and Caribbean Region
Standardized & Young B737NG Fleet
(108 aircraft ~150 – 190 seats)
“GOL’s Stronghold”
2 hour flight range
65% traffic
65% population
75% Brazilian GDP
Mainstream market demands
150-200 seat aircraft
Low cost and strong airport
position prevails
Avg.fleet age: 6 years
Congonhas Airport Slot-Share(São Paulo City) (2)
(1) Considering Pantanal’s redistribution: Azul and Webjet slots are weekends only and NHT 10 out of 28 slots’ are weekdays(2) Source: Infraero Brazilian Airport Authority From Jul-Oct/09 – Congonhas, Brasilia, Recife, Santos Dumont, Confins, Salvador, Galeão, Porto Alegre and Curitiba)
GOL42.6%
TAM38.2%
Other19.2%
High Frequency network (1) :
Next departure will probably be a GOL flight
Brazilian Market Rationale
No secondary airports
Unbalanced population and GDP Generation
Concentrated population density in few large cities
Slotted airports
GOL TAM Others
27% 43% 30%
Slots Distribution
Before VRG Aquisition
Highlights 1Q10
Net Revenue (LTM) – R$6.2Bn
EBIT (LTM) – R$500mm (8.0%)
Flights per day – 860
Destinations – 61
Operational fleet – 108
9
Strong Code Share and Loyalty Program Integration Agreements
with dominant long haul players (2)
69% pax.
Brazil Spain
61% pax.
Brazil France100% pax.
Brazil Holland
36% pax.
Brazil USA
85% pax.
Brazil Mexico
47% Pax.
Brazil N.America
31% Pax.
Brazil Europe
Cost Leadership and Intelligent Sales ChannelsStrong position in Latin America and low cost high efficient sales
channels, generates cross sales and improves GOL’s dynamic yield
management
2009 Total Cost / Passenger (US$) (1)
Largest Loyalty and Client Financing Programs in LATAM
4.4
5.9 5.7
90.0%
92.4%94.0%
2007 2008 2009
Online seat sales (R$ Bn) voegol.com % of net revenues
One of the Largest E-commerce Platforms
in LATAM w/ 40mm unique visitors per year
Financing
+
Educating
+
Marketing
Customer Loyalty
+
Corporate Partnerships
+
Value to GOL Shareholders
Increase operating margins by selling “empty seats”
(1) Source: Companies reports: considers COPA, LAN and TAM as LATAM peers, and RyanAir, SowthWest, EasyJet, Westjet and
JetBlue, as low cost peers.
(2) Source: ANAC – Brazilian Airlines Regulator, 2008 Annual Report
110.0 112.2
178.3190.9
GOL Low Cost Peers TAM LATAM Peers
15% pax.
Brazil USA
10
Fleet size management (demand x supply)
Maximize fleet utilization rate
Reduce fleet GAP
Next Generation Fleet
Reduce maintenance cost (spare parts inventory and
engine overhauls)
Reduce fuel cost
Higher utilization rate
Tap the new middle class
Further penetrate in the business segment
Increase sales to international clients
Increase ancillary revenues (new products)
Develop cargo business
New e-commerce platform
Buy on Board
Wireless onboard entertainment
Simple Strategic RationaleGOL will improve profitability by increasing passenger volume, generating
ancillary revenue and reducing fixed and variable cost in the short, medium and long run
Decrease CASKIncrease RASK
São Paulo – Fortaleza Interstate Bus GOL
Fare (one-way) R$347 R$358
Time 50 hours 3 hours
GOL x Interstate Bus Cost-Benefit Comparison
São Paulo – Salvador Interstate Bus GOL
Fare (one-way) R$317 R$261
Time 36 hours 2 hours
Inte
rsta
te b
us tra
nsport
s o
ver
60m
m p
assengers
/year
in B
razil
11
3| Consistent Story with Strong
Fundamentals
A Consistent Story with
Strong Fundamentals
12
2010 Results to Post Profitability GrowthGOL posted higher profitability growth rate compared to peers
Main Targets
Increase profitability in the next years
Improve cost structure
Upgrade quality of services
Develop new products / ancillary revenues
25% of cash versus LTM net Revenues
Reduce leverage ratios
Further align management and
shareholders
GOL Milestones
2001-2003: pre-ipo & nationwide coverage
2004-2006: IPO and network expansion
2007-2008: VRG Acquisition
2009-Post VRG Merge
2010 Guidance 2009 (A) 2010 Range
Brazilian GDP Growth -0,2% 5.0% 6.0%
Domestic Demand Growth (% RPKs) 17,6% 12.5% 18.0%
Supply and Demand Growth in relation to GDP NM 2.5x 3.0x
Passengers Transported (GOL million) 28.4 31.5 36.5
ASKs, System (billion) 40.0 45.0 47.2
Load Factor (%) 65% ~70% ~70%
Fleet (End of the period) 108 111 111
Yield (R$ cents) 20,34 19.50 21.00
RPK, System (billion) 26.1 31.5 33.0
Departures (000) 274 290 300
CASK ex-fuel (R$ cents) 9.5 8.9 8.5
Fuel litters consumed (billion) 1.29 1.45 1.47
Fuel Price (R$/ liter) 1.40 1.70 1.58
Average WTI (US$ / barrel) 62 82 77
Average Exchange Rate (R$/ US$) 1.99 1.85 1.72
Operating Margin (EBIT) 6.9% 10% 13%
13
Demand Continues to Grow Above CapacityIndustry continues to show signs of focus on results in 2010
Demand (RPK bn) - GOLDemand (RPK bn) - Industry (ex-GOL)
Capacity (ASK bn) and Load Factor(%)
GOL
Capacity (ASK bn) and Load Factor (%)
Industry (ex-GOL)
8,086 9,396 9,817
1T09 4T09 1T10
ASK Doméstico GOL
Taxa de Ocupação Doméstico GOL
1Q09 4Q09 1Q10
ASK GOL - Domestic
Load Factor GOL - Domestic
62.8%
74.2%71.6%
+21.4%
11,666
13,554 13,938
1T09 4T09 1T10
ASK Doméstico Indústria (ex-GOL)
Taxa de Ocupação Doméstico Indústria
ASK Industry (ex-GOL) - Domestic
Load Factor Industry (ex-GOL) - Domestic
63.8%
72.4%71.6%
1Q104Q091Q09
+19.5%
5,079
6,972 7,032
1T09 4T09 1T10
RPK Doméstico GOL
1Q09 4Q09 1Q10
RPK GOL - Domestic
+38.4%
7,524
9,643 9,987
1T09 4T09 1T10
RPK Doméstico Indústria (ex-GOL)
1Q104Q091Q09
RPK Industry (ex-GOL) - Domestic
+32.7%
14
Fare Options
Brazilian Economy
New routes to Caribe
Operating 1Q10 4Q09 Var% 1Q09 Var%
Demand (RPK - bn) 8.0 7.8 3.3% 5.8 37.9%
Capacity (ASK - bn) 11.2 10.6 5.5% 9.5 17.0%
Load Factor 71.8% 73.4% -1.5 p.p. 61.0% +10.9 p.p.
Break-Even Load Factor (BELF) 63.9% 68.0% -4.1p.p. 56.7% +7.2p.p.
Aircraft Utilization (Block Hours/Day) 13.0 12.2 6.6% 11.3 14.3%
Yield (R$ cents) 19.53 18.08 8.0% 23.82 -18.0%
RASK (R$ cents) 15.48 15.27 1.4% 15.89 -2.5%
CASK (R$ cents) 13.77 14.15 -2.7% 14.79 -6.9%
CASK Ex-Fuel. (R$ cents) 8.84 9.88 -10.6% 10.12 -12.6%
Departures 72,531 71,187 1.9% 66,224 9.5%
Average Stage Length (km) 895 894 0.1% 877 2.1%
Employees at period end 18,235 17,963 1.5% 16,799 8.5%
WTI (avg. per barrel, US$) 78.88 76.03 3.8% 43.18 82.7%
Average Exchange Rate (R$/US$) 1.80 1.74 3.5% 2.31 -22.1%
Growing Yields
CASK Fuel
CASK Depreciation
CASK Leasing
Higher frequency
Higher Aircraft Utilization
1Q10: GOL’s Traffic RecordCASK ex-fuel of 1Q10 in line with the Guidance of 2010
15
Financial 1Q10 4Q09 Var% 1Q09 Var%
Net operating revenues (R$MM) 1,730 1,618 6.9% 1,517 14.0%
Ancillary Revenue 162 213 -23.8% 131 24.0%
Passenger 1,568 1,405 11.6% 1,386 13.1%
% Ancillary Revenue 9.4% 13.1% -3.8 p.p. 8.6% +0.8 p.p.
Total Costs (1,538.4) (1,498.5) 2.7% (1,411.9) 9.0%
Total Costs Ex-Fuel (987.4) (1,046.6) -5.7% (965.9) 2.2%
EBIT 191.4 119.2 60.7% 105.1 82.1%
EBIT Margin 11.1% 7.4% +3.7p.p. 6.9% +4.1 p.p.
EBITDAR 405.0 290.1 39.6% 359.3 12.7%
EBITDAR Margin 23.4% 17.9% +5.5 p.p. 23.7% -0.3 p.p.
Net Financial Result (133.7) (72.7) 83.9% (12.9) 939.7%
Income taxes (33.8) 351.4 nm (30.8) 9.6%
Net income (loss) 23.9 397.8 -94.0% 61.4 -61.1%
Net margin 1.4% 24.6% -23.2 p.p. 4.0% -2.7 p.p.
Charter revenue
Other Ancillary Revenues
(cargo, no show and
cancelation taxes)
Aircraft Leasing
Aircraft Insurance
Depretiation
Fuel
EBIT (higher since the
first quarter of 2007)
EBITDAR
Exchange Variation
Expenses (R$ 60MM)
Ineffective Hedge
Expenses (R$ 16MM)
1Q10: Solid ResultsCompany reaches operating margin of 11.1%, going in line
with its financial guidance for 2010
16
Healthier Financial IndicatorsIncrease on operating results and the initiatives to add cash
made a stronger balance sheet, ready to support the accelerated growth
394
1,441 1,523
1T09 4T09 1T10
Disponibilidades (R$MM)
Disponibilidades/Receita Líquida
4Q091Q09 1Q10
Cash and Cash Equivalents (R$ MM)
Cash and Cash Equivalents/Net Revenue (R$MM)
8,184
7,688
7,317
1T09 4T09 1T10
Divida Bruta Ajustada
Divida Bruta Ajustada / EBIDAR + Rec. Fin. 12mAdjusted Gross Debt/EBITDAR + Fin. Rev.
2,936
1,692 1,740
1T09 4T09 1T10
Dívida Liquida (R$MM) Dívida Líquida/EBITDAR
1Q104Q091Q09-32.8
413 500
1T09 4T09 1T10
EBIT 12m (R$MM)
Disponibilidades/Receita Líquida
1Q09 4Q09 1Q10
Cash and Cash Equivalents/Net Revenue (R$MM)
Net Debt / EBITDARNet Debt
Adjusted Gross Debt
1Q101Q09 4Q09
0.4
2.4
2.7
Disponibilidades / Endividamento Curto PrazoCash and Cash Equivalents/Short Term Debt
17
GOL Investor Relations
Rodrigo Alves
Head of Investor Relations
+55 11 2128-4700
www.voegol.com.br/ir
twitter.com/GOLinvest
This presentation contains forward-looking statements relating to the prospects of the
business. estimates for operating and financial results. and those related to growth
prospects of GOL. These are merely projections and. as such. are based exclusively
on the expectations of GOL’s management concerning the future of the business and
its continued access to capital to fund the Company’s business plan. Such forward-
looking statements depend. substantially. on changes in market conditions. government
regulations. competitive pressures. the performance of the Brazilian economy and the
industry. among other factors and risks disclosed in GOL’s filed disclosure documents
and are. therefore. subject to change without prior notice.
18
4| Appendix
A Consistent Story with
Strong Fundamentals
19
Competition and Fuel Price CorrelationFuel price and industry supply providing much better scenario for GOL
1.70 1.72
1.26
1.93
1.4017.2%1.2%
-26.7%
53.2%
-27.5%
2005 2006 2007 2008 2009
Average Fuel Price (GOL R$)
Average Fuel Price Change (GOL %YoY)
Fuel Price Evolution
396 377
287
418
315
2.4%-4.7%
-24.0%
45.8%
-24.5%
2005 2006 2007 2008 2009
Industry Domestic Average Fare (R$)Industry Domestic Average Fare (%YoY)
Industry Domestic Average Fare Evolution
28.8%13.8% 8.2% 7.2% 13.0% 16.1%
43.0%
49.1%48.8% 50.4% 45.6% 42.7%
28.3% 37.1% 43.0% 42.4% 41.4% 41.3%
2005 2006 2007 2008 2009 2M10
GOL TAM Others
GOL Focuses on Market Strength not LeadershipDemand is Surpassing Supply Since 2H09
81 80
114 102
114
31
72.3% 72.2%
68.1%
66.8%
68.1%
72.7%
2005 2006 2007 2008 2009 1T10
Industry Suppy Industry Load Factor
20
GOL’s code-shares created the largest network of foreign airlines in number of
passengers transported to Brazil
GOL Alliance
100% pax
Brasil Holanda
61% paxBrasil França
69%paxBrasil Espanha
85%pax
Brasil México
36% pax
Brasil EUA
47% pax31% pax
Brasil Europa
Brasil
EspanhaFrança
Holanda
Brasil América do Norte
paxBrasil EUA
15%
The code-share agreements generate greater
awareness of the SMILES value, reflecting increased
GOL penetration in the business segment.
Source: ANAC – Brazilian Airlines Regulator, 2008 Annual Report
Graphs consider only foreign companies carrying passengers to Brazil
GOL Alliance - USA41% of total international
passengersGOL Alliance - Global
29%
Star Alliance
27%
One World
17%
Sky Team
35%
GOL Alliance (Brasil-Mundo)GOL Alliance (Brazil-Global)
67%
GOL Alliance …GOL Alliance (Brazil-USA)
21
Successfull Turnaround in 2009GOL: ready to grow and expand operating margins
Operating 2009 2008 Ch% 2007 Ch%
Demand (RPK - bn) 26.1 25.3 3.1% 29.2 -10.8%
Supply (ASK - bn) 40.0 40.1 -2.7% 44.1 -9.2%
Load Factor 65.2% 61.6% +3.7pp 66.4% -1.1pp
Net Revenue(R$MM) 6,025 6,406 -5.9% 4,941 21.9%
Ancillary Revenues 719 516 39.3% 374 92.1%
Passangers Revenues 5,307 5,890 -9,9% 4,567 16.2%
Ancillary Revenues Share 11.9% 8.1% -3.9pp 7.6% +4.4pp
Total Costs (R$MM) (5,612) (6,495) -13.6% (4,931) 13.8%
Total Costs –Ex fuel (3,799) (3,864) -1.7% (3,032) 25.3%
EBIT (R$MM) 413 (89) 566.2% 10 nm
EBIT Margin 6.9% -1,4% Nm 0.2% +6,7pp
EBITDAR (R$MM) 1.207 682 77.1% 598 101.7%
EBITDAR Margin 20.0% 10.6% +9.4pp 12.1% +7.9pp
Net financial result (R$MM) 343 (1,106) Nm (191) 79.5%
Income tax (R$MM) 135 (44) Nm (34) Nm
Net Income (loss) (R$MM) 891 (1,239) Nm 167 Nm
Net Margin 14.8% -19,3% Nm 3,4% +11.4pp
22
3Q09
2433
40 4556 60 6219
22
2121
1515
17
31
37
4342
4040
40
5
28
14
9
111106
108111
115119
109
2007 2008 2Q09 2009E 2010E 2011E 2012E
n New, larger, fuel efficient SFP aircraft
n Fleet standardization of Boeing 737NGs
– Lower spare parts inventory needed
– Phased maintenance reduces ground time
n Installing winglets in all Boeing 737 -700s
n Expand in-house aircraft maintenance services to
achieve additional savings
Fleet Management Operating Fleet, Seats and Average Fleet Age
737-800 SFPs 737-800s 737-700s 737-300s 767-300s
Seats (‘000s)
18.2 17.4 18.1 18.2 18.9 19.6 20.4
’07-12E Seat CAGR 2.2%
n Boeing 737 -700 NG: low density markets or
restricted airports
n Boeing 737 -800 NG:Medium to high densities and
flexibility to land in short runways
n Average fleet age 5.5 years
n Returning all Boeing 737 -300 to be grounded until
december 2009 in process to be returned
Fleet Plan
23
260 117 120 112 101
1,010
1.080
2010 2011 2012 2013 2014 After 2014 Total
R$ MM – as of December 31, 2009
Confortable Debt Payment ScheduleComfortable debt repayment schedule and looking forward to rollover
2010 debt maturities
Debt Repayment Schedule (R$MM) 2010 2011 2012 2013 2014 After 2014 Total
Capital de giro 185.0 - - - - - 185.0
BDMG I e II 2.9 3.3 3.3 6.1 4.0 12.6 32.2
BNDES 14.3 10.8 8.4 - - - 33.5
BNDES-Safra 6.3 9.5 12.7 12.7 3.2 44.4
Debêntures - 93.7 93.5 93.5 93.6 - 374.3
IFC 51.7 - - - - - 51.7
Senior Notes - - - - - 369.8 369.8
Total 260.2 117.3 117.9 112.3 100.8 382.4 1,090.9
24
Current Shareholding Position
Composição Acionária ON % ON PN % PN Total % Total
Acionista Controlador 137,032,718 100.0% 36,635,380 27.5% 173,668,098 64.3%
Board of Directors 16 0.0% 1,865,686 1.4% 1,865,702 0.7%
Free Float - 0.0% 94,242,981 70.7% 94,242,981 34.9%
Treasury - 0.0% 454,425 0.3% 454,425 0.2%
Total 137,032,734 100.0% 133,198,472 100.0% 270,231,206 100.0%
25
Strong Operational Support
Cash & equivalents higher than 23.9% of LTM net
revenues (R$1.4 billion)
Comfortable debt amortization schedule
Significant improvement in all financial ratios in 2009
Positive operating cash flow generation in the last 7
quarters (including 1Q10)
Strong Exim-Bank Support: US$280 Final Commitment
100% tag-along rights for non-voting PN shareholders
25% minimum dividend payout ratio
Active Board of Directors
4 independent members, including Chairman
Proactive advisory committees
Risk & Finance, Audit, Corporate Governance &
People Management & Strategy
Management compensation aligned with shareholders
and linked to share price
3m average trading volume R$71 MM
Financial strength and high corporate governance standards are key to
ensure long term profitability
2010
Ranked #1 (Market Pool)
Best Managed LATAM 2010 – Airlines & Aviation
Most convincing coherent business strategy
Sound practice of corporate governance