key highlights –q2/2018 business result...designed, equipped with modern equipment and prominent...
TRANSCRIPT
July 2018
Key Highlights –Q2/2018 Business result
Disclaimer
INFORMATION CONTAINED IN OUR PRESENTATION IS INTENDED SOLELY FOR YOUR REFERENCE. SUCHINFORMATION IS SUBJECT TO CHANGE WITHOUT NOTICE, ITS ACCURACY IS NOT GUARANTEED AND ITMAY NOT CONTAIN ALL MATERIAL INFORMATION CONCERNING THE COMPANY. NEITHER WE NOR OURADVISOR MAKES ANY REPRESENTATION REGARDING, AND ASSUMES NO RESPONSIBILITY OR LIABILITYFOR, THE ABILITY, THE ACCURACY OR COMPLETENESS OF, ANY ERRORS OR OMISSION IN, ANYINFORMATION CONTAINED HEREIN. IN ADDITION, THE INFORMATION MAY CONTAIN PROJECTIONS ANDFORWARD-LOOKING STATEMENT THAT REFLECTS THE COMPANY'S CURRENT VIEWS WITH RESPECT TOFUTURE EVENTS AND FINANCIAL PERFORMANCE. THESE VIEW ARE BASED ON CURRENT ASSUMPTIONSWHICH ARE SUBJECT TO VARIOUS RISK FACTORS AND WHICH MAY CHANGE OVER TIME. NOASSURANCE CAN BE GIVEN THAT FUTURE EVENTS WILL OCCURS, THAT PROJECTIONS WILL BEACHIEVED, OR THAT COMPANY ASSUMPTIONS ARE CORRECT. ACTUAL RESULT MAY DIFFER MATERIALLYFROM THOSE PROJECTED. THIS PRESENTATION IS STRICTLY NOT TO BE DISTRIBUTED WITHOUT THEEXPLICIT CONSENT OF THE COMPANY'S MANAGEMENT UNDER ANY CIRCUMSTANCES.
1
Key Highlights
Carried 5.806 m passengers in Q2 2018, an increase of 28.9% compared with Q2 2017. (Total Passenger carried in Q2
2017 was 4.505 mil)
Capacity in Q2 2018 is 6.67m seat flown, increase 29.8 % compared with Q2 2017.
Vietjet operate 94 routes in Q2 2018 including 38 Domestic routes and 56 International routes, compared with 37
Domestic routes and 36 International routes in Q2 2017.
Total Operating Revenue in Q2 2018 is 8,588.3 billion VND, increased 52.06% compared with Q2 2017.
Operating Profit in Q2 2018 reached 836.1 VND billion, 26.3% higher than that in Q2 2017 with 661.97 VND
billion.
Load Factor is maintained at high figure with nearly 87.1% in Q2 2018, slightly lower than 87.71% in Q2 2017.
Achieved the highest technical reliability of 99.64% among top Airlines in Asia Pacific region.
Foreign Exchange rate as at 30/06/2018 is 22,650 VND/USD, compared with 22,431 VND/USD in 30/06/2017.
Fuel price Jet A1 (MOPS) in June 2018 is 88.92 USD/barrel, 7.8% increased compared with that in June-2017
2
Operating Statistics
Modern and young fleet with average age of 2.95 years comprising 24
Airbus A320s and 30 A321s and 1 A321NEO as of 30/06/2018.
Up to 30/06/2018, VJC has total 219 aircraft on order with Airbus and
Boeing in which the company received 43 aircraft.
Pax Carried: 5.806 m passengers in Q2 2018.
Operated an extensive network of 38 domestic routes and 56 international
routes, services up to 30/06/2018.
Vietjet operated a total of 31,114 flights in Q2 2018.
Aircraft utilization – 14.4 block hours per aircraft a day.
Safety indicators of ground operations and Flight operations are also
highest in the region.
On-time performance ratio of 83.4% in Q2 2018
4.55.8
-0.5
0.5
1.5
2.5
3.5
4.5
5.5
6.5
7.5
8.5
9.5
Q2-17 Q2-18
Passengers (m) Total aircraft
45
55
73.094.0
Q2-17 Q2-18
TOTAL ROUTES OPERATED
Passengers & Aircraft growth
3
Passenger Growth To More Than 40% Per Annum
3,156 5,562
9,313
14,051
17,110
24,100
30,000
34,00036,000
39,000
43,000
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Passengers (‘000 pax)
4
Flight network extension
The number of Routes: 94 routes(includes: 38 domestic routes and 56 international routes
5
6
Vietjet opened direct flights connecting Hanoi & Ho Chi Minh City to Osaka (Japan)
6
Products - Services
Reasonable and economical price with varied ticket types for choosing. Added services were offered, such as check-in priority, boarding priority, hot meals, pre-ordered beverages, and much more, were made available.
“12pm, It’s time to Vietjet” promotion campaign offered millions of tickets from VND0 to bring flying opportunities for domestic and foreign passengers
Travel insurance products to minimize travel risks were adjusted and sold to passengers via www.vietjetair.com
Our Skyshop continued to improve its services. Apart from hot meals and typical Vietjetsouvenirs, many seasonal products were purchased onboard by passengers, for example, summertime products, wintertime products, Tet holiday products, and more.
Duty-free products proved popular on Vietjet’s international flights; a wide-range of cosmetics, perfumes, alcohols, cigarettes, and more, were sold at reasonable prices
7
Products - Services
At all airport, areas serving Vietjet's inbound and outbound flights are synchronouslydesigned, equipped with modern equipment and prominent branding signs to facilitatecustomers.
Operated international flights at new terminal T2 in Cam Ranh and transfered flightoperation to Terminal T1 - Yangon International Airport (Myanmar) with modern facilitiesand many utility services for passengers.
Cam Ranh International Airport Yangon International Airport (Myanmar)8
Typical events of the Q2 2018
Organized Annual General Shareholders Meeting 2018 successfully.
Strengthened cooperation at the ACMECS 2018 Economic Cooperation Strategy Summit and 2018 CLMV Summit
Attended the 74th International Air Transport Association (IATA) Conference
Opened direct flights from Hanoi, Ho Chi Minh City to Osaka (Japan)
Boeing and Vietjet ink deal for 100 new aircraft
Vietjet and Vietnam Youth Union’s Central Committee, National Volunteer Centre launched “Let’s clean up the ocean” 2018
9
Vietjet Academy
10
In the second quarter, Vietjet has finished theconstruction of Aviation Academy in cooperationwith Airbus, which been installing equipment to bein operation in the next quarter, ensuring a stabletraining, reducing time and cost of regular pilottraining.
10
Awards
Listed at the top companies of Nhip cau Dau tu Magazine “Vietnam’s 50 Best –performing Companies 2017”, being on “the Billion-Dollar Club” of companieswhich have market capitalization of over USD1 billion.
Being honored as one of the Vietnam's 50 best listed companies in 2018 byForbes
Top Airlines by Absolute Passenger Growth in Southeast Asia” Award
Received Vietnam’s excellent brand award being voted by Vietnam EconomicTimes
11
Vietjet’s aircraft fleet by 30th June, 2018 stood at 55 aircraft including 24 Airbus A320s and 31Airbus A321s with the average age of 2.95 years.
The fleet of aircraft has seat configuration from 180 to 220-230 seats and the designs are intune with the low cost airline business model.
Vietjet made an order of 171 Airbus A320/321 aircraft and an order of another 200 737MAX200 aircraft with Boeing.
The orders with Airbus and Boeing will be completed at the end of 2025.
12
Fleet Expansion
1112
Lively fleet of Vietjet 13
AC Type Vietjet Air Asia(AK)
Indigo Jetstar (JQ)
easyJet(U2)
Ryanair
A319 ( 156 seats) 91
A320 24 87 131 52 103
A321 ( 230 seats) 31 8
B737 NG 436
Avg. Age (y) 2.95 5.6 6.1 7.8 7.7 6.8
Total 55 87 131 60 194 436
Young, modern and Fuel Efficient Fleet
A321 deliver cost & revenue benefits
14
15
Cost, cost & cost!
A strong focus on cost
15
1H2018 2018 2019 2020
A320 24 25 22 19
A321 31 41 52 42
737 Max 200 0 0 4 28
Total 55 66 78 89
0
10
20
30
40
50
60
70
80
90
100
2017 2018 2019 2020
A320 A321 737Max8
FLEET EXPANSIONYoung, modern and Fuel Efficient Fleet
16
Daegu - the fourth largest city of South Korea is the new destination of Vietjet in this beautiful country
17
Comprehensive fuel saving program
Applying advanced technology andenvironment friendly solution in dailyoperation is one of the top priorities ofVietjet. By analyzing both operational andmaintenance aspects, Safran’s SFCO2®service develops procedures andrecommendations to address airlines’ needfor greater fuel efficiency which can reduceVietjet fuel consumption up to 5%
By 1H 2018, the SFCO2 program saved1,197,920 kg of fuel.
18
Safety and Quality activities of the 1Q2018
Continue working with Airbus Nablue to enhance Flight DataMonitoring.
Working with Airbus to study more about Skywise digitalaviation data platform – which aims to become the singleplatform of reference used by all major aviation players toimprove operational performance and business results.
19
Best In Class Cost Structure With Room For Improvement
•Source: Bloomberg, Company Financial Statement
•Vietjet’s results are based on Q2 2018 Financial Statement. Other peers’ results are based on full year 2017 number.
Lowest CASK-Ex fuel. There is still headroom for cost structure improvement to further decrease both CASK & CASK ex-fuel
20
4.83
3.54
5.13
3.78
5.565.16
4.42
5.73
6.76
5.72 5.89
8.55
6.18
2.261.94
2.362.74
3.422.82
4.29 4.10
3.463.73
5.54 5.4
4.03
3.07
3.98 4.02
4.74 4.56
5.595.02
5.83
5.15 5.34
7.13 7.2
Vie
tjet
Air
Air
asia
gro
up
Rya
nai
r
Ceb
u P
acif
ic
Spir
it
Ind
igo
No
rwe
gian
Air
Jets
tar
Alle
gian
t
Spic
eJet
Go
l Lin
has
Sou
thw
est
No
k
RASK CASK - ex fuel CASK
The latest orders to purchase more 100 Boeing and 50 Airbus aircraft will help Vietjetdeveloping our airline alliances across the Asia Pacific region and worldwide
21
Best Class In Operating Performance (Seperated Fs)
Total Revenue: increased 52.1%from 5,648 VND billion in Q2 2017 to 8,588 VND billion in Q2 2018.
Operating Profit grew up 26.3% to 836.14 VND billion in Q2 2018 compared to same period in 2017.
Profit before tax increased 25.5% to 837 VND billion in Q2 2018, compared to 667 VND billion in Q1 2017.
Cash and Cash Equivalent increased 104.3% to 5,388 VND billion in Q2 2018, compared to 2,637 VND billion in Q2 2017.
22
TOTAL REVENUE (VND’bil)
5,648
8,588
Q2-17 Q2-18
OPERATING PROFIT (VND’bil)
PROFIT BEFORE TAX (VND’ bil)
662836
Q2-17 Q2-18
667837
Q2-17 Q2-18
Cash and Cash Equivalent( VND’bil/%)
2637
5388
Q2-17 Q2-18
Solid Growth In Ancillary
Ancillary revenue per pax: increased 6.3% from 14.2 USD/pax in Q2/2017 to 15.1 USD/pax in Q2/2018.
Total Ancillary revenue as % of Total Operation Revenue slightly decreased to 22% in Q2/2018 compare to Q2/2017
14.2
15.1
Q2-17 Q2-18
Ancillary revenue per pax
USD/pax
Ancillary revenue % of Total Operation Revenue
23
25.3%22.0%
Q2-2017 Q2-2018
Excellent Financial Performance (Consolidated Fs)
Revenue per ASK increased 11% YoY due to strong growth from passenger carried (up 28.9%) and high load factor at 87.1%.
Cost per ASK impacted by higher fuel price (up 6.6%).
Cost per ASK (excluded fuel) up 0.12 US.cent from 2.14 to 2.26.
RASK – CASK: up 39.6% YoY.
2.14 2.26
Q2-17 Q2-18
CASK EX-FUEL (US Cents)
4.354.83
Q2-17 Q2-18
RASK (US Cents)
3.78 4.03
Q2-17 Q2-18
CASK (US Cents)
0.57
0.80
Q2-17 Q2-18
RASK - CASK (US Cents)
24
Excellent Financial Performance (Consolidated Fs)
• Total assets: increased 40%from 24,945 VNDbil in Q2-17 to 34,891 VNDbil in Q2-18.
• Total Equity increased 48.7% to 11,842 VND bil in Q2-18 due to strong Retained Earnings from 1H-2018.
• Cash and Cash equivalentincreased 103.6% to 5,395 VND bil in Q2-18 due to strong cash flow from sales in 1H-2018.
• Net Debt/ Equity decreased from 0.6x to 0.2x in Q2-18 due to substantial growth in equity and strong cash balance showing the better financial position of the Company.
CASH & CASH EQUIVALENT (VND’bil)
2,650
5,395
-
1,000
2,000
3,000
4,000
5,000
6,000
Q2-17 Q2-18
TOTAL EQUITY (VND’bil)
7,964
11,842
Q2-17 Q2-18
TOTAL ASSETS (VND’Bil)
24,945
34,891
Q2-17 Q2-18
Net Debt/ Equity
0.6x
0.2x
0.0x
0.1x
0.2x
0.3x
0.4x
0.5x
0.6x
0.7x
Q2-2017 Q2-2018
Net Debt / Equity
25
Term Description
ASK Available Seat Kilometer
CASK Total Cost (excluding cost of aircraft sold) per Available Seat Kilometer.
CASK ex-fuel Total Cost (excluding cost of aircraft sold, fuel) per Available Seat Kilometer.
RASK Total Revenue (excluding Revenue from sale aircraft) per Available Seat Kilometer.
EBITDA Earning before Interest, Tax, Depreciation and Amortization.
EBITDAR Earning before Interest, Tax, Depreciation and Amortization, and Rent.
Load Factor Passenger Carried / Capacity.
LCC Low Cost Carrier
OTP On Time Performance.
RPK Revenue Passenger Kilometer.
Capacity Available seat
AircraftUtilization
Average numbers of hours during each 24-hour period that an aircraft is actually in flight
Definitions And Abbreviations
26
27THANK YOU