120511 webconference ingles - 1 t12 ss
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Q R l1Q12 Results PresentationPresentation
May 14 2012May,14 2012
[email protected] www.tam.com.br/ir
Warning - Information and Projection
This notice may contain estimates for future events. These estimates merely reflect the expectations of the Company’sThis notice may contain estimates for future events. These estimates merely reflect the expectations of the Company s management, and involve risks and uncertainties. The Company is not responsible for investment operations or decisions taken based on information contained in this communication. These estimates are subject to changes without prior notice.
This material has been prepared by TAM S.A. (“TAM“ or the “Company”) includes certain forward-looking statements that are based principally on TAM’s current expectations and on projections of future events and financial trends that currently affect or might affect TAM’s business and are not guarantees of future performance They are based on management’saffect or might affect TAM s business, and are not guarantees of future performance. They are based on management s expectations that involve a number of business risks and uncertainties, any of each could cause actual financial condition and results of operations to differ materially from those set out in TAM’s forward-looking statements. TAM undertakes no obligation to publicly update or revise any forward looking statements. g p y p y g
This material is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Likewise it does not give and should not be treated as giving investment advice It has no regard to the specific investment objectives financial situation or particular needs of anyinvestment advice. It has no regard to the specific investment objectives, financial situation or particular needs of any recipient. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. j g
2
1. Highlights
2. LATAM
Agenda 3. Financial ResultsAgenda
3
3
1. Highlightsg g
4
Highlights of our business unitsg g
•New market campaign: “When we talk, we fly together”
W h d f th f th ti th "D l f th•We have earned for the fourth time the "Deal of the Year"
•Better fuel management in Latin America
•TAM Fidelidade receives Freddie Awards•Certification to provide TAM Fidelidade receives Freddie Awards•Certification to provide maintenance services for ATR-72
•Integration to the Airbus MRO Network
f•Profile on social networks Facebook and Twitter
•Award: Best Performance of Thalysy
•Launched kiosks at Pãode Açucar store
•Signature of definitive agreements regarding the joint venture with AIMIA
•New cargo terminal in São Paulo
•Partnership between TAM Cargo and Multiplus
5
•Partnership between TAM Cargo and Multiplus
We revised our 2012 guidanceg
Guidance 2012Reviewed
Real 2012Jan Mar
Guidance 2012Original
Max.
Demand Growth (RPK) 8% 11% 7% 9% 7%Domestic Market
Reviewed
Min.
Jan - MarOriginal
Min. Max.
( )
Supply growth(ASK) 1% 3% -1% 1% 4%
Domestic 0% 2% -2% 0% 5%
International 1% 3% 1% 3% 3%
Load Factor 76% 78% 76% 78% 73%
Domestic 72% 74% 72% 74% 68%
International 83% 85% 83% 85% 83%
Average WTI 95 95 103Assumptions Average WTI
Average US dollar rate 1.74 1.82 1.77
Assumptions
6
We maintained our fleet plan unchanged
156 157 162 169 176180
244 8 1012 123 3 3
156 157 162 169 176
120
150 22 22 20 23 244 8 10
90
127 124 129 134 140
30
60127 124 9
01T12 2012 2013 2014 2015
Airbus Wide body Boeing 777 Boeing 767Airbus Narrow body
7
1. Destaques2 LATAMq2. LATAM
8
Final steps in the Merger with LAN
May 7:May 7:
CVM approved the
Edital
May 10: Launch of
the Exchange Offer
May 9:
F4 Form DeclaredEff ti
June 12: Closing of
the ExchangeEffective the Exchange Offer
Expected annual synergies of US$600 to US$700 million fully achieved by the end of the fourth year, of which US$170 to US$200 million will be achieved by the end of the first year.y
One‐time cost of between US$150 to US$200 million.
9
3. Financial Results
10
Multiplus Highlights
growth in Points Issuedvs 1Q11
24.5%
mln in Gross Billings(26.6% growth vs 1Q11)
R$ 430
mln in Dividends paid(including interest on capital)
R$ 261
thousand new Membersvs 4Q11 reaching 9 8 million members
400
11 11
vs 4Q11, reaching 9.8 million members
Multiplus Results
398 3
Net revenue of R$ 347.1 millionR$ 430.4 mln in gross billingsR$ mln & mln pointsR$ mln
242.0285.1
321.5
398.3347.1
17.415.2
339.9 354.6397.3
433.6 430.4R$ mln
9.010.9
12.5
5
1Q11 2Q11 3Q11 4Q11 1Q12Receita Líquida Pontos resgatados1T11 2T11 3T11 4T11 1T121Q11 2Q11 3Q11 4Q11 1Q12
81.2
EBITDA Ajustado de R$ 91,6 milhões R$ 61.6 mln in Net Income92.8
91.6R$ mlnR$ mln
70.9
51.3
70.961.6
89.1
81 382.3
81.3
12
1T11 2T11 3T11 4T11 1T121T11 2T11 3T11 4T11 1T121Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12
We recorded a 6% increase in net revenue
In Reais 1Q12 vs 1Q11
1Q12 vs 4Q11
1Q12 1Q11 4Q11
Net Revenue (million)
Operating Expenses (million)
3,228
3,252
1Q116%
11%
4Q11‐10%
‐1%
3,042
2,932
3,579
3,281 p g p ( )
EBIT (million)
EBIT Margin
,
(23)
‐0.7%
‐
‐
‐
‐
,
110
3.6%
,
298
8.3%
EBITDAR (million)
EBITDAR Margin
Financial Result + Others* (million)
298
9.2%
235
‐22%
‐3.3p.p.
68%
‐51%
‐7,9p.p.
380
12.5%
140
612
17.1%
(78)
Net Results (million)
Total RASK (cents)
Financial Result + Others* (million) 235
101
16.3
68%
‐22%
2%
‐
‐1%
‐10%
140
129
15.9
(78)
96
18.1Total RASK (cents)
CASK (cents)
CASK ex‐fuel (cents)
16.4
10.0
7%
2%
‐1%
‐3,4%
15.4
9.8
16.6
10.4
CASK USD (cents)
CASK USD ex‐fuel (cents)
9.3
5.7
1%
‐4%
1%
‐2%
9.2
5.9
9.2
5.8
13*Movements in fair value of fuel derivatives
We changed the accounting regarding reward tickets issued but not flownissued, but not flownFlow of accrual and redemption points for airline tickets
P i A ti M d l
Changing in the accounting methodology for reward tickets revenue
CLIENT(loyalty program
member)
Previous Accounting Model
Award ticket issuance
Products or Services
PurchaseRevenue is recognized
Period in which the passenger can use the award ticket
Accrue
D + 0 D + 180
Current Accounting Model
POINTSAward ticket issuance
Period in which the passenger can use the award ticket
TICKETS
Redeem
D + 0 D + 180
Revenue is recognized on the balance sheet as "Deferred Income"
Revenue is recognized at the moment the passenger check‐in
TICKETS
The changes have no impact on the Multiplus S.A. Financial Statements
14
Adjusting* our result, we recorded 9% increase in net revenue and EBIT margin of 2 3%revenue and EBIT margin of 2.3%
1Q12 ComparisonIn Reais
Adjusted vs Accounting
AdjustedAccounting
1Q12 Comparison
Net Revenue (million) 3,327
Accounting
‐3%3,228
Operating Expenses (million)
EBIT (million)
3,252
75
0%
‐
3,252
(23)
No Impact
EBIT margin
EBITDAR (million)
2.3%
397
‐3.0 p.p
‐33%
‐0.7%
298
EBITDAR margin
RASK geral (centavos)
11.9%
16.8
‐2.7 p.p.
‐3%
9.2%
16,3
15 * In order to continuously improve the measure of our business, we started deferring the revenue related to the award tickets issued, but not flown, thus impacting the lines of passenger revenue
We continued with the yields recovery in the domestic market with an increase of 3%market, with an increase of 3%
Adjusted* Domestic Passengers
ASK12 373
ASK, RPK and Load Factor5%
Passenger Revenue - R$ Million
5%11,767 12,168 12,373
2%
2%
1 511 1 641 1 583
-4%
RPK8,288 8,278 8,426
1Q11 4Q11 1Q12Load
2%1,511 1,641 1,583
1Q11 4Q11 1Q12LoadFactor 70% 68% 68%
Yield - R$ Cents
1Q11 4Q11 1Q12
RASK - R$ Cents
-5%
3%
-4%
0%
5%
18.2 19.8 18.8 12.3 12.7 12.3
16
1Q11 4Q11 1Q12 1Q11 4Q11 1Q12
* In order to continuously improve the measure of our business, we started deferring the revenue related to the award tickets issued, but not flown, thus impacting the lines of passenger revenue
In the annual comparison, international passenger revenue increased by 22% and the RASK 20% in dollarsrevenue increased by 22% and the RASK 20% in dollars
Adjusted* International Passengers
ASK
ASK, RPK and Load Factor
R$1,071 R$1,117
Passenger Revenue - Million30%2%
ASK7,334 7,619 7,455 R$862
$ ,
4%
22%
-2%
5%
RPK5,838
6,089 6,150
1Q11 4Q11 1Q12Load
U$516 U$595 U$631
1Q11 4Q11 1Q12
6%1%
Q Q QLoadFactor 80% 80% 82%
Q Q Q
R$14 1R$15.0RASK - CentsYield - Cents 21%
6%
Avg US DollarR$11.7
R$14.1R$15.0
28%
7%R$ 14.8
R$ 17.6 R$ 18.2
12%
31%
1.67 1.80 1.77
6%
-2%
U$7.0 U$7.8 U$8.59%
20%
U$ 8.9 U$ 9.8 U$ 10.3-3%
31%
17
1Q11 4Q11 1Q121Q11 4Q11 1Q121Q11 4Q11 1Q12
* In order to continuously improve the measure of our business, we started deferring the revenue related to the award tickets issued, but not flown, thus impacting the lines of passenger revenue
Liquidity and debt profile
Adequate debt profile Liquidity Position
1,800
2,100
R$ Million2,453
2,607
1,9142,145
2,568 2,567
2,0482,000
2,500
3,000
900
1,200
1,500
995
500
1,000
1,500
,
2012 2013 2014 2015 2016 2017 2018 2019 2020 20210
300
6002005 2006 2007 2008 2009 2010 2011 1Q12
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Debentures, bonds and othersLeasing on the balance sheet
Debt mix by currency
Adjusted Net Debt / EBITDAR
$ 6 3 6 5
8.0
8%
R$
3.8
5.66.3 6.5
3.84.3
4.9
4.0
6.0
92%US$ 2005 2006 2007 2008 2009 2010 2011 1Q12
2.1
0.0
2.0
18 Obs.1: Net Debt Adjusted includes annual operating leases x 7Obs.2: Debt is considered in US GAAP for 2005 and 2006 and in IFRS since 2007
Teremos sinergias entre US$ 600 milhões e US$ 700 milhões anuais700 milhões anuais
Receitas: Carga US$120-125 Milhões, Pax US$240-285 Milhões Custos US$240-290Milhões
Fonte da sinergia
Novos serviços compartilhamento
Valor US$ milhões
Carga 125 Aeroportos Consolidação de funções em 120 30
JustificativaFonte da sinergia
Valor US$ milhões Justificativa
85
Novos serviços, compartilhamento de melhores práticas
Maior acesso a hubs conjuntos e atratividade da rede combinada
Carga 125
Relevância Procurement
Aeroportos Consolidação de funções em aeroportos em que ambas operam
Aproveitamento de economias de
120
75 70 100
30
85
80
atratividade da rede combinada
Rede combinada cria novos pares de cidades e mais serviçosNova e maior
da rede Procurement
Corporativo
pescala em contratos
Racionalização dos gastos corporativos gerais e algumas
75
70 20
70 100
80
45A combinação da rede suporta no os destinos e h bs
de cidades e mais serviçosconectividade
Novos
Corporativo
TI
corporativos gerais e algumas funções
Eficiências em plataformas comuns
70
45
20
65 7045
50
novos destinos e hubs
Incluindo a consolidação de contratos com companhias aéreas
voos
Outras receitas
TI
Manutenção
p
Aproveitamento de economias de
45
35 2520
65 70
50
25
contratos com companhias aéreas associadas e aumento da utilização
Consolidação dos programas e Passageiro
com passageiros
Vendas
Manutenção
Eficiência com esforços de vendas
escala e de eficiências35
15
2520
4035
www.tam.com.br/ir
19
25 compartilhamento das melhores práticas
frequente Vendas combinados15 4035
19
20