FY18 Earnings Conference Call Agenda Headline Results FY18 - - PowerPoint PPT Presentation

FY18 Earnings Conference Call

Agenda

Headline Results FY18 Highlights FY18 Financial Review Q&A

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• Airways. No warrant or representation is made by Jazeera Airways for the contents of this document and in no way is the material provided in it

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Headline Results

Headline Results

4Q18

Operational Highlights

Passengers +52.5%

4Q18: 478 k 4Q17: 333 k

Load Factor +1.7%

4Q18: 70.7% 4Q17: 69.0%

Utilization +39.6%

4Q18: 14.8 hrs 4Q17: 10.6 hrs

Yield +12.4%

4Q18: 38.0 KWD 4Q17: 33.8 KWD

Headline Results

FY18

Operational Highlights

Passengers +46.4%

2018: 2.0 million 2017: 1.4 million

Load Factor +1.3%

2018: 75.2% 2017: 73.9%

Utilization +24.7%

2018: 13.6 hrs 2017: 10.9 hrs

Yield

• 2.1%

2018: 40.8 KWD 2017: 41.7 KWD

Headline Results

4Q18

Financial Highlights

Operational Revenue KWD18.7 mn

4Q18: KWD18.7 4Q17: KWD10.6 Difference: 76.3%

*Operational Profit

• KWD2.2 mn

(Adjusted: -KWD1.3 mn – YoY: -30.0%)

4Q18: -KWD2.2 4Q17: -KWD1.8 Difference: 20.8%

*Net Profit

• KWD1.8 mn

(Adjusted: -KWD0.9 mn – YoY: -34.1%)

4Q18: -KWD1.8 4Q17: -KWD1.4 Difference: 32.1%

* Includes KWD651k one offs related to irregular events in 4Q18 and KWD256k operating loss related to facilities operations.

Headline Results

FY18

Financial Highlights

Operational Revenue KWD82.4 mn

2018: KWD82.4 mn 2017: KWD56.6 mn Difference: 45.5%

*Operational Profit KWD6.8 mn

(Adjusted: KWD8.8 mn – YoY: 13.9%)

2018: KWD6.8 mn 2017: KWD7 .7 mn Difference: -12.1%

*Net Profit KWD6.7 mn

(Adjusted: KWD8.7 mn – YoY: 5.2%)

2018: KWD6.7 mn 2017: KWD8.2 mn Difference: -19.0%

* Includes KWD1.5 mn one offs related to irregular events in 2018 and KWD534k operating loss related to facilities operations.

Headline Results

FY18

Commercial Highlights

E-Commerce Sales

+11.8% Vs. 2017

Ancillary Revenue

+40.8% Vs. 2017

Headline Results

Q4 2018

Network Highlights

Q1 2018 Q2 2018

Launched In

Ahmedabad Kochi Mumbai Tbilisi Lahore Medinah New Delhi

43%

Market Share

* New Delhi was operational in the last two weeks of 2018 ** Medinah is operated on a seasonal basis

25%

Market Share

1%*

Market Share

42%

Market Share

27%

Market Share

13%

Market Share

**

Headline Results

Network Highlights

Passengers Geographic Distribution FY17 Passengers Geographic Distribution FY18

Headline Results

Network Highlights

Jazeera Market Share FY14 – FY18 Kuwait International Airport Traffic FY14 – FY18

In million In million

Other passengers Jazeera passengers Jazeera market share KIA passengers Passenger growth

Headline Results

Fleet Highlights

Current fleet of 9 aircraft, up from 7 at the end of 2017 . The A320neo offers:

• Significant fuel savings up to 18% over

traditional engines.

• Allows more flying time expanding flying

radius to +6hrs.

• Improved customer experience due to lower

noise.

The latest addition was the first A320neo to be delivered in the region. Contracts signed for 3 new A320neos to be added to the fleet in 2019.

Headline Results

Jazeera Facilities

Jazeera Terminal carried 1.27 mn passengers since opening in May 2018. Duty free and airside retail are now fully

• perational.

Collection of check-in charges commenced from the start of operations. Retail leasing ongoing while all concessions are now actively serving Jazeera passengers. Jazeera Terminal started operations in May 2018.

Financial Review

Key Parameters FY18

Operating Parameters

FY17 FY18 CHANGE

Average Aircraft 7 .0 8.6 22.6% Destination Cities 19 26 36.8%

Revenue Drivers

FY17 FY18 CHANGE

Seats 1,838,244 2,642,110 43.7% Passengers 1,357 ,745 1,987 ,286 46.4% Load Factor 73.9% 75.2% 1.4% Net Yield 41.7 40.8

• 2.0%

Profitability Drivers

FY17 FY18 CHANGE

Sectors 11,569 16,194 40.0% Block Hours 27 ,857 42,540 52.7% Utilization (BH per Day) 10.9 13.6 24.6%

• Capacity increased by 44% though number
• f aircraft increased only by 23%.
• This was achieved by 25% improvement in

daily utilization of the capacity.

Major reasons for adverse variances FY17 Vs FY18

• Fuel Price increase (KWD4.4 mn)
• Yield reduction due to fierce competition

(KWD 1.5 mn)

• One time costs (KWD 1.5 mn)
• Terminal loss (KWD 0.5 mn)

Key Parameters 4Q18

• Fuel Price increase (KWD 1.1 mn)
• One time disruption costs (KWD 0.7 mn)
• Terminal losses (KWD 0.3 mn)
• Yield increase of 12% (KWD 2 mn)

Operating Parameters

4Q17 4Q18 CHANGE

Average Aircraft 7 .0 9.0 28.6% Destination Cities 18 25 38.9%

Revenue Drivers

4Q17 4Q18 CHANGE

Seats 454,361 675,644 48.7% Passengers 313,356 477 ,988 52.5% Load Factor 69.0% 70.8% 1.8% Net Yield 33.8 38.0 12.5%

Profitability Drivers

4Q17 4Q18 CHANGE

Sectors 2,858 4,160 45.6% Block Hours 6,821 11,154 63.5% Utilization (BH per Day) 10.6 13.5 27 .2%

Financial Performance

4Q17 4Q18 CHANGE

Operating Revenue 10,592,668 18,673,967 76.3% Operating Expenses 12,380,196 20,832,444 68.3% Operating Profit

• 1,787

,528

• 2,158,477

20.8% Net Profit

• 1,368,887 -1,808,902

32.1%

Major reasons for adverse variances 4Q17 Vs 4Q18 Major reasons for favorable variances 4Q17 Vs 4Q18

Financial Review

Financial Position

FY17 FY18 CHANGE Operating Revenue 56,611,376 82,369,370 45.5% Operating Expenses 48,899,086 75,587 ,000 54.6% Operating Profit 7 ,712,290 6,782,370

• 12.1%

Net Profit 8,235,287 6,667 ,290

• 19.0%

YIELD BY QUARTER (KWD) PASSENGERS BY QUARTER (000)

47 50 61 54 46 47 53 41 40 43 49 38 36 45 49 34 35 41 47 38 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 263 278 349 274 281 291 381 266 295 300 381 245 282 314 448 313 404 490 615 478 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18

FY17 FY18 CHANGE Cash 22,778,406 6,465,306

• 71.6%

Fixed Assets 13,769,407 21,971,472 59.6% Total Assets 56,213,150 62,866,145 11.8% Total Liabilities 18,016,227 25,029,733 38.9% Equity 38,196,923 37 ,836,412

• 0.9%

The Board of Directors recommended cash dividend of KWD7 million (FY17: KWD7 million), subject to shareholders’ approval at the Company’s AGM.

Financial Review

Fuel

BRENT Swap Vs. SINGJET Swap (USD/BBL) Fuel as Percent of Direct Cost

BRENT Swap SINGJET Swap

Balance Sheet Analysis FY18

Current Assets declined by ~KWD3 mn mainly due to:

• dividend payout of KWD7 mn
• Internal funding of the Terminal building construction of KWD10 mn
• Increase in receivables of KWD11 mn mainly due to bunched up Engine shop visits in 4Q18

(shortage of spare parts from CFM delayed all Engines from MROs from 4Q17). This is a temporary increase until maintenance reserves/insurance claims are collected in 1Q/2Q19. Non-Current Assets increased by ~KWD10 mn primarily due to:

• Terminal building becoming operational in 2018
• Security deposits paid to aircraft lessors for 2019 deliveries

Trade Liabilities have increased by ~KWD7 mn due to:

• Increased level of operations & the bunched up engine invoices in Q4, which will get cleared

in 1Q/2Q19. Debt and Equity remained at the same levels as FY17 .

Q&A

Key Contacts

For more information please contact Krishnan Balakrishnan VP Finance krishnan.balakrishnan@jazeeraairways.com Mostafa El-Maghraby Head of Investor Relations investorrelations@jazeeraairways.com Jazeera Airways KSC is listed on the Kuwait Stock Exchange Bloomberg: Jazeera KK Reuters: JAZK.KW Stay up to date with the latest investor information: investorrelations.jazeeraairways.com

Thank you