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ScotiabankTransportation & Aerospace Conference
November 19, 2013
CAUTION REGARDING FORWARD-LOOKING INFORMATION
2
Certain statements set forth in this presentation and statements made during this presentation,including, without limitation, information respecting our ROIC target of a sustainable 12%; theexpected future benefits of the 737 MAX and LEAP-1B engine to WestJet; our 737 and Q400 fleetplans; our goal for inflight entertainment and connectivity and the associated features; and futureopportunities of WestJet Encore are forward-looking statements within the meaning of applicableCanadian securities laws.
By their nature, forward-looking statements are subject to numerous risks and uncertainties, some ofwhich are beyond WestJet’s control. Readers are cautioned that undue reliance should not be placedon forward-looking statements as actual results may vary materially from the forward-lookingstatements due to a number of factors including, without limitation, changes in consumer demand,energy prices, aircraft deliveries, general economic conditions, competitive environment, regulatorydevelopments, environment factors, ability to effectively implement and maintain critical systems andother factors and risks described in WestJet’s public reports and filings which are available underWestJet’s profile at www.sedar.com.
Any forward-looking statements contained in this presentation and statements made during thispresentation represent WestJet’s expectations as of the date of this presentation and are subject tochange after such date. WestJet does not undertake to update, correct or revise any forward-lookingstatements as a result of any new information, future events or otherwise, except as may be requiredby law.
November 2013
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WESTJET’S TRACK RECORD OF PROFITABILITY SINCE INCEP TION
Net Earnings ($ millions)
Reported in Canadian GAAP up to 2009 with 2005 to 2008 restatements. 2010 to 2012 reported under IFRS.
-50
0
50
100
150
200
250
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
4
WESTJET’S GOAL TO GENERATE 12% RETURN ON INVESTED C APITAL
Return on Invested Capital*
Note: 2010 to 2013 presented under IFRS; 2009 and prior presented under previous Canadian GAAP.
* Based on a trailing 12 month basis before tax .
Goal
13.8%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
2005 2006 2007 2008 2009 2010 2011 2012 Q12013
Q22013
Q32013
Sustainable goal
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WESTJET A PROFITABLE GROWTH STORY
Guests (thousands) Available Seat Miles (millions)
Revenues ($ millions)
02,5005,0007,500
10,00012,500
15,00017,50020,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
5,000
10,000
15,000
20,000
25,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
6
7
8
GROWTH AND STRONG FINANCIAL PERFORMANCE CONTINUES
10
OPERATING HIGHLIGHTS – Q3 2013
Strong net earnings reported in the third quarter 2013
Q3 2013 Q3 2012 Change
Net earnings (millions) $65.1 $70.6 (7.8%)
Diluted earnings per share $0.50 $0.52 (3.8%)
Total revenues (millions) $924.8 $866.5 6.7%
RASM (revenue per available seat mile) (cents)
15.14 15.76 (3.9%)
Fuel costs per litre (dollars) $0.92 $0.90 2.2%
CASM, excl. fuel and employee profit share (cents)
8.96 9.10 (1.5%)
Earnings before tax margin 9.8% 11.6% (1.8 pts)
11
YTD 2013 adjusted EBT Margin per reported results as at September 30, 2013 (adjusted for special items and non-op mark-to-market hedge gains/losses).
YTD 2013 – ADJUSTED EBT MARGINWESTJET RANKS 4th AMONG LEADING NORTH AMERICAN PEER S
17.7% 17.5%
15.7%
10.1%
7.4% 7.4%6.7%
5.0%
3.5%2.7%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%S
pirit
Ala
ska
Alle
gian
t
Wes
tJet
Del
ta
US
Airw
ays
Sou
thw
est
JetB
lue
Am
eric
an
Uni
ted
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*IFRS basis Excludes reservation system impairment of $31.9 million in 2007
COSTS REMAIN UNDER CONTROL
8.57 8.29 8.45 8.80 8.85 9.12 8.99
3.50 4.703.20
3.50 4.32 4.50 4.32
2.201.70
1.201.00
1.211.70 1.65
0
2
4
6
8
10
12
14
16
18
2007 2008 2009 2010 2011 2012 YTD 2013
cent
s pe
r AS
M
CASM (ex fuel and profit share) Profit Share Fuel Op. Margin
13
• Original target to reduce costs by $100 million by the end of 2015
• As of Q3 2013, identified and put into action measures that will enable us to reach this goal by the end of 2014, one year ahead of our original goal
• Undertaking a longer term initiative to ensure our unit costs are competitive with low cost North American airlines
Aircraft utilization and channel
efficiencyProductivity
Non-Operational Expenses People
BUSINESS TRANSFORMATION INITIATIVE
Four key focus areas:
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• Selling 10 of our oldest Boeing 737-700s in 2014 & 2015
• Buying 10 new Boeing 737-800s in 2014-15
• Deferring delivery of five 737-700s from 2014-15, to 2016-17
• Transaction creates value:
• Lowers CASM by effectively adding incremental capacity
• Benefits associated with a younger fleet
• Accelerates our move towards more optimal fleet mix
• Allows new planes to be financed in a low interest rate environment
• Assists transition to our long-term in-flight entertainment connectivity strategy once finalized
• Maintains Fleet flexibility
MODERNIZING OUR FLEET - SALE TO SOUTHWEST
15
• WestJet announced in August 2013 an order for 65 Boeing 737 MAX aircraft with delivery dates of Sep 2017 through 2027
• Converting 15 Next Generation 737 deliveries to 737 MAX for a net increase of 50 firm commitments for 737 aircraft
• Key benefits of this order:
• Maintains the flexibility we have built into our fleet plan, including future lease renewal options
– Boeing 737 fleet size between 120 and 162 aircraft by 2023
• Improved operational costs: CFM International LEAP-1B engines expected to reduce fuel burn and CO2 emissions by 13% compared with today’s most efficient single-aisle airplanes
• New Boeing Sky Interior will contribute to an enhanced guest experience
737 BOEING MAX PURCHASE AGREEMENT:GROWING OUR FLEET AND IMPROVING COSTS
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MEASURED GROWTH - 737 FLEXIBLE FLEET PLAN INCLUDING FLEET MODERNIZATION
105 104 97 96 91 87 82 79 76 76 76
4 11 23 29 34 39 44113 21 27
3136
39 4242
42
105 105 110
117 122
129 141
147 152 157
162
0
25
50
75
100
125
150
175
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
737 NG Committed Fleet 737 MAX Committed Fleet
Cumulative Lease Extension Options
120
816
20 20 20 20
5
14
23 25
0
10
20
30
40
50
2013 2014 2015 2016 2017 2018
Q400 NextGen Committed Fleet Cumulative Purchase Options
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Q400 NEXTGEN FLEET PLAN ALSO BUILDS IN FLEXIBILITY
25
34
43 45
BUILDING ON OUR CAPABILITIES
• Strategically selecting carriers in each major world region
• Seamless access to more destinations
• International travel options for the business traveller
• Selective approach keeps costs in line
AIRLINE PARTNERSHIPS EXPANDING OUR NETWORK
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Low Price SegmentEcono
Mid-Value OrientedFlex
High-Value OrientedPlus
Guest MixLow fare bundle
Leisure
Mid fare bundle
Business/Leisure
High fare bundle
Business traveller primarily
Price Lowest fare plus optional services Low fare plus optional services Higher fare with included flexibility, conveniences, comfort
Product Basic service from A to B, extras for a fee
More value, some extras for a fee
Fully inclusive and fully flexible
Guestproposition
Shop for the lowest price for VFR or a low-cost vacation. Pay for what you need.
You need some flexibility but are still looking to save.
You don’t want to sweat the small stuff. You need maximum flexibility and a bit more room to get the work done.
� Unbundled Bundled�
ENRICHING MORE LIVES ACROSS SEGMENTS
20
21
PLUS FARE SEATING
Reconfiguration was completed end of Q1 2013
119101
136118
166156
18
18
18
737-600Before
737-600After
737-700Before
737-700After
737-800Before
737-800After
Plus Seats
136
174
119
166
OUR PLUS SEATING WITH EXTENDED LEGROOM
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WESTJET ENCORE
MARKET OPPORTUNITIESREGIONAL (50+ seats) = $2.1B – DOMESTIC + TRANSBORDE R
Source: Internal estimates using public capacity and traffic information24
0
10
20
30
40
50
60
Air Canada Mainline Air Canada Express WestJet
Can
adia
n D
estin
atio
ns S
erve
d
CalgaryDeer LakeEdmontonFt. McMurrayGanderHalifaxKelownaMontreal
OttawaReginaSaskatoonSt. JohnsTorontoVancouverVictoriaWhitehorse
Winnipeg
Baie ComeauBathurstCalgaryCastlegarCharlottetownCranbrookDeer LakeEdmontonFrederictonFt. McMurrayFt. St. JohnGanderGaspeGoose BayGrande PrairieHalifaxIles De La MadeleineKamloopsKelownaKingstonLethbridgeLondonMedicine HatMonctonMont JoliMontrealNanaimoNorth BayOttawa
PentictonPrince GeorgePrince RupertQuebecRed DeerRegiaRouyn-NorandaSaguenaySandspitSarniaSaskatoonSault Ste. MarieSept-IlesSmithersSt. JohnSt. JohnsSudburySydneyTerraceThunder BayTimminsTorontoToronto-CityVal D'OrVancouverVictoriaWabushWhitehorseWindsorWinnipegYellowknife
AbbotsfordCalgaryCharlottetownComoxDeer LakeEdmontonFt. McMurrayGrande PrairieHalifaxHamiltonKamloopsKelownaKitchenerLondonMoncton
MontrealOttawaPrince GeorgeQuebecReginaSaskatoonSt. JohnsSydneyThunder BayTorontoVancouverVictoriaWhitehorseWindsorWinnipegYellowknife
17 Destinations
60 Destinations
31 Destinations
AIR CANADA AND PARTNERS SERVE DOUBLE THE NUMBER OF CANADIAN DESTINATIONS VERSUS WESTJET
NanaimoFort St. John
BrandonTerrace
WestJet Encore
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WESTJET ENCORE: SIGNIFICANT NETWORK POTENTIAL
YVR
YCD
YEG
YXJ
YYCYYJ YXE
YQR
YQU
Encore launch:30 departs at 9 stations
Potential new
stations
Potential existing
stations
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YBR
YXT
WESTJET ENCORE AT MATURITY
• Organizational structure: wholly owned subsidiary
• Fleet size: up to 45 x 78-seat Q400 turboprop aircraft
• Network and schedule
• National operation (Eastern and Western)
• Domestic and transborder operations
Type of flying Description
New destinationsFlights to/from new destinations not currently served by the WestJet network
Join the dotsFlights between existing destinations not currently flown by WestJet
Schedule improvements
Flights on some existing short-haul routes that benefit from increased frequency and higher load factors; B737 flying will be redeployed to maximize the network
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CRITICAL SUCCESS FACTORS REMAIN THE SAME FOR WESTJET ENCORE
Low cost
• Obtain meaningful and sustainable cost advantage vs. regional competitors
• Low fares to stimulate demand and steal traffic
• Expand low-fare high-value proposition to new markets
Guest experience and culture
• Consistent WestJet guest experience
• Consistent WestJet values
• Maintain caring culture
• Engaged workforce
Guest experience and low cost
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WE HAVE THE FINANCIAL STRENGTHTO PUT OUR STRATEGY INTO ACTION
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*Note: 2010-13 presented under IFRS; 2009 and prior presented under previous Canadian GAAP.Note: All figures are full-year figures based on trailing twelve months. Debt ratios include aircraft operating leases.
CAPITAL STRUCTURE - EXCESS CASH HAS BEEN USED TOLOWER LONG TERM DEBT & BUY BACK STOCK
0.0
1.0
2.0
3.0
4.0
5.0
0
300
600
900
1,200
1,5002005
2006
2007
2008
2009
2010
2011
2012
Q1 2013
Q2 2013
Q3 2013
Ratio
$ m
illion
Cash Adj. Net Debt/ EBITDAR Adj. Debt/ Equity
At September 30, 2013
Net Cash C$1,233-mln
Cash to TTM Revenues 34%
Adj. Net Debt to EBITDAR 1.16x
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RELATIVE LIQUIDITY & LEVERAGE RATIOS – September 30, 2013Liquidity
Leverage
34%
0%
10%
20%
30%
40%
Sp
irit
We
stJe
t
All
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US
Air
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So
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we
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Am
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Un
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De
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sh /
LT
M R
ev
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1.16
0
2
4
6
All
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Ala
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So
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we
st
We
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Sp
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De
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Air
Ca
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US
Air
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Un
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Ad
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et
De
bt
/ E
BIT
DA
R
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RETURNING VALUE TO SHAREHOLDERS – Dividend & NCIB
$0.00
$0.02
$0.04
$0.06
$0.08
$0.10
120
125
130
135
140
145Q3/10
Q4/10
Q1/11
Q2/11
Q3/11
Q4/11
Q1/12
Q2/12
Q3/12
Q4/12
Q1/13
Q2/13
Q3/13
Dividend per share
# Shares (m
ln)
# Shares Dividend
Initiated a $0.05 quarterly dividend, November 2010; increased to:� $0.06 in February 2012 � $0.08 in August 2012� $0.10 in February 2013
Normal Course Issuer Bid� Completed first NCIB August 2011 for $106
million or $14.59 per share� Completed second NCIB November 2012
for $112 million or $16.20 per share� TSX approved up to 6.6 million share NCIB
or ~5%, announced on February 14, 2013.
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GUIDANCE 1
Q4/13 FY 2013 FY 2014
RASMRoughly flat compared
with Q4 2012
CASM (ex fuel & profit share)
Down approximately 0.5%
Flat to up 1.0%
Fuel cost per litre 90 to 92 cents
Effective Tax Rate 27% to 29% 27% to 29%
Capital ExpendituresApproximately $720
million$580 to $600
million
System capacity Up 7.0 to 7.5% Up 8.0% to 8.5% Up 4.0 to 6.0%
Domestic capacity Up 4.0% to 4.5% Up 4.5% to 5.0%
(1) Provided in conjunction with release of Q3 2013 results on November 5, 2013.
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• Proven track record of profitable growth
• Award-winning culture and highly engaged workforce
• Strong brand in the marketplace and expanding airline partnerships
• Attractive combination of planned growth and a strong balance sheet
• Committed to generating and returning value to shar eholders
SUMMARY – WHY INVEST IN WESTJET