P/ F Atlantic Airw ays Presentation of Half Year Report 2 0 1 1 1 2 - - PowerPoint PPT Presentation

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P/ F Atlantic Airw ays Presentation of Half Year Report 2 0 1 1 1 2 - - PowerPoint PPT Presentation

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P/ F Atlantic Airw ays Presentation of Half Year Report 2 0 1 1 1 2 Septem ber 2 0 1 1 Atlantic Airw ays at a glance Atlantic Airways was established in 1987 to develop the Faroese airline industry and airline services Faroese airline

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SLIDE 1

P/ F Atlantic Airw ays

Presentation of Half Year Report 2 0 1 1 1 2 Septem ber 2 0 1 1

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SLIDE 2

Atlantic Airw ays at a glance

  • Atlantic Airways was established in 1987 to develop the

Faroese airline industry and airline services Faroese airline industry and airline services

– National airline carrier of the Faroe Islands – International company based in Sørvágur, Faroe Islands – Operational base in Faroes and satellite base in Copenhagen p p g

  • Operating in three main segments:

– Scheduled flights with Faroe Islands as cornerstone – Charter operations in Europe a

  • p

a o u op – Helicopter operations in Faroese and North Sea waters

  • Operating a fleet of 4 aircraft and 2 helicopters in H1 2011

– Excluding aircraft leased out Excluding aircraft leased out

  • Transported 88,000 passengers on scheduled flights in H1

2011 Head Q a te and maintenance base in Fa oe Islands

  • Head Quarter and maintenance base in Faroe Islands

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SLIDE 3

Second quarter of 2 0 1 1 in brief

  • Solid result based on improved utilisation and

limited effect from volcanic activity limited effect from volcanic activity

  • Reduced unit cost as a result of higher

productivity, reduced fleet and combined efforts in different segments

  • Revenue was DKK 118.8 million, an increase of

28%

  • EBITDA increased to DKK 22.9 million or 107 %

growth growth

  • The result before tax was DKK 12.1 million, an

improvement of DKK 13.9 million

  • The result after tax was DKK 9.9 million, an

The result after tax was DKK 9.9 million, an improvement of DKK 11.4 million

  • Net financial items was DKK -0.5 million

compared to DKK -0,4 million in Q2 2010

  • Total depreciation and impairment was DKK 10.6

million compared to DKK 12.4 million in Q2 2010

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SLIDE 4

First half of 2 0 1 1 in brief

  • Solid result based on improved utilisation
  • Reduced unit cost as a result of higher

productivity, reduced fleet, little volcanic activity and combined efforts in different segments

  • Revenue was DKK 203.3 million, an increase of

Revenue was DKK 203.3 million, an increase of 18%

  • EBITDA increased to DKK 32.2 million or 80 %

growth

  • The result before tax was DKK 9.5 million, an

improvement of DKK 18.2 million

  • The result after tax was DKK 7.8 million, an

improvement of DKK 15.0 million improvement of DKK 15.0 million

  • Net financial items was DKK -2.8 million

compared to DKK -1,6 million in H1 2010

  • Total depreciation and impairment was DKK 20.2

million compared to DKK 25.0 million in H1 2010

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SLIDE 5

Our m ission and business

Mission We transport people and cargo by air with F I l d t Provide network services with Faroe Islands as a cornerstone Faroe Islands as our cornerstone as a cornerstone Charter and capacity provision outside Faroe Islands employing spare and additional Islands employing spare and additional capacity Provide helicopter services in and around Provide helicopter services in and around Faroe Islands Support and invest in development of Support and invest in development of tourism, cargo and logistics

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SLIDE 6

Segm ent overview

  • I ncom e distribution
  • In H1 2011 the income was distributed between Scheduled services 79% , Charter

13% and Helicopter operations 7% 13% and Helicopter operations 7%

  • Export income is defined as income originating from customers based outside

Faroe Islands Faroe Islands

H1 2011 Export income in H1 2011

13% 7% 79% 54% 46% Domestic income Export income 79% Scheduled services Charter / ACMI operation Helicopter 6

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SLIDE 7

Segm ent overview

  • Block hour distribution

H1 2 0 1 1 2 0 1 0

7000 3000 4000 5000 6000 2010 1500 2000 2500 1000 2000 3000 2010 2009 500 1000 1500 H1 2011 H1 2010 Scheduled services ACMI/Charter

  • perations

Helicopter Scheduled services ACMI/Charter

  • perations

Helicopter 7

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SLIDE 8

Scheduled services

  • Traffic inform ation

W eekly Departures expected High season Low season

7000

Scheduled services Airborne hours

expected Copenhagen 30 18 Reykjavík 3 2

3000 4000 5000 6000

Billund 7 2 Aalborg 3 Bergen 2

1000 2000 2006 2007 2008 2009 2010

Bergen 2 London 2 Total 4 7 2 2

Scheduled services Number of passengers

150000 200000 250000

Passenger numbers on scheduled services in H1

50000 100000 150000

scheduled services in H1 2011 increased from 81,905 to 87,707, or by 7% . Ash cloud had an adverse impact

  • n the passenger numbers

8 2006 2007 2008 2009 2010

  • n the passenger numbers

last year.

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SLIDE 9

Segm ent overview

  • Passenger distribution

Scheduled services passengers

200.000

Diversified income in H1 2011

120.000 140.000 160.000 180.000 13% 7%

Diversified income in H1 2011

S h d l d 40.000 60.000 80.000 100.000 2011 2010 70% 7% 3% 13% Scheduled routes Taxfree Mail and Cargo Charter 20.000 H1 2010 70% Helicopter 9

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SLIDE 10

Scheduled services

  • Com m ents
  • The previous decline in number of passengers

has been reversed by new growth throughout Q2

  • Passenger numbers increased 7 % on scheduled

services in H1 2011

  • Loadfactor increased 3% from 74% to 77%
  • Eyjafjallajokull had a considerable impact in

2010

  • Higher growth in the tourist segment

Higher growth in the tourist segment

  • Market demand originating in Faroes has not

returned to previous level P iti t d h d b hi h i f

  • Positive trend hampered by high increase of

airport charges

  • Fuel costs rose 26% in H1

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SLIDE 11

Charter operations

  • Charter/ ACMI counts for 14% of fixed

wing operations

  • Growth in ad hoc/ ACMI demand in H1

2011

  • Provided capacity for other airlines

such as Blue 1 and BA in H1 2011 such as Blue 1 and BA in H1 2011

  • Very competitive environment
  • Short runways, 100 seats and

flexibility are trade marks flexibility are trade marks

  • Widening our scope for 2012 with

higher capacity and access to A 319 capacity

9.000

Charter operations Airborne hours

3 000 4.000 5.000 6.000 7.000 8.000 1.000 2.000 3.000 2006 2007 2008 2009 2010 11

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SLIDE 12

Helicopters

  • Recent developm ents

Dom estic services since 1 9 9 4

  • Scheduled service to remote islands

SAR contract from 2 0 0 0 - 2 0 1 0

  • Extended contract with Government

temporarily for 2011 Extension for next four years in principle

  • Extension for next four years in principle

agreed and supported by parliament Offshore and charter

  • Secured access to AW 139 helicopter to

Secured access to AW 139 helicopter to support oil exploration in 2011 and 2012

  • Concentrating on Faroese sector but closely

following development West of Shetland

Helicopter services - Airbourne hours

Fleet and m aintenance

  • Reduced fleet by selling one AW 139 in

January 2011 P id d i t t t t l

800 1000 1200 1400

Airbourne hours

  • Provided maintenance support to external

customers

200 400 600 800 2006 2007 2008 2009 2010 12 2006 2007 2008 2009 2010

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SLIDE 13

Fleet developm ent

The fleet in brief: Four aircraft in ownership at period-end Q2 2011*

Fleet in service at period-end Q2 2 0 1 1 * No. Ow n Manufact.

Q – Book value 115 MDKK One BAE 146-200 aircraft leased in for

BAE 146-200 1 1988 Avro RJ 100/ 85 3 2 1993-1999 Bell 412 2 2 1993-1997

One BAE 146 200 aircraft leased in for the summer season. The company has sold and delivered the

Expected delivery 1 A319 2012 * Excluding aircraft leased out

AW 139 helicopter in January 2011 One Airbus 319 on order for delivery in March 2012

* Excluding aircraft leased out

March 2012

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SLIDE 14

Fleet developm ent

First Airbus 319 enters into service in March 2012 Effi i t i ft ith l f l b d Efficient aircraft with lower fuel burn and maintenance cost Configured to 144 seats compared to present g p p 95 Equipped with modern navigational technology and HUD Decided to implement RNP – AR 0.1 procedures to enhance safety, lower minima, improve regularity and reduce impact from turbulence New opportunities with direct flights to destinations in southern Europe

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SLIDE 15

Financials ( 1 )

I NCOME STATEMENT ( DKK 1 ,0 0 0 )

Q2 2 0 1 1 Q2 2 0 1 0 YTD 2 0 1 1 YTD 2 0 1 0 FY 2 0 1 0

Total revenue 118,833 92,838 203,284 171,606 402,671 Flight expenses

  • 73,415
  • 59,201
  • 127,603
  • 109,956
  • 244,177

Employee expenditures

  • 22,516
  • 22,592
  • 43,460
  • 43,780
  • 89,445

Result before depr., am ort. and im pairm . ( EBI TDA) 2 2 ,9 0 2 1 1 ,0 4 5 3 2 ,2 2 1 1 7 ,8 7 0 6 9 ,0 4 9 Depreciations, amortisations and impairment

  • 10,567
  • 12,415
  • 20,200
  • 24,959
  • 49,546

Result before financial item s ( EBI T) 1 2 3 3 5

  • 1 3 7 0

1 2 0 2 1

  • 7 0 8 9
  • 1 9 5 0 3

Result before financial item s ( EBI T) 1 2 ,3 3 5

  • 1 ,3 7 0

1 2 ,0 2 1

  • 7 ,0 8 9
  • 1 9 ,5 0 3

Net financial items

  • 527
  • 417
  • 2,814
  • 1,610
  • 3,933

Share of p/ l of ass. comp. 310 310

  • 488

Result before tax ( EBT) 1 2 ,1 1 8

  • 1 ,7 8 7

9 ,5 1 7

  • 8 ,6 9 9

1 5 ,0 8 2 Tax

  • 2,181

322

  • 1,713

1,543

  • 2,738

Profit 9 ,9 3 7

  • 1 ,4 6 5

7 ,8 0 4

  • 7 ,1 5 6

1 2 ,3 4 4 , , , , ,

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SLIDE 16

Financials ( 2 )

BALANCE SHEET ( DKK 1 ,0 0 0 )

Q2 2 0 1 1 Q2 2 0 1 0 YTD 2 0 1 1 YTD 2 0 1 0 FY 2 0 1 0

Assets

Intangible assets 5,097 5,892 5,097 5,892 5,469 Tangible assets 232,373 282,558 232,373 282,558 214,285 Other non-current assets 2,430 1,834 2,430 1,834 1,346 Total non-current assets 239,900 290,284 239,900 290,284 221,100 Inventories 3,778 3,837 3,778 3,837 2,666 Total receivables 42,820 31,955 42,820 31,955 42,454 Cash and cash equivalents 114,825 100,205 114,825 100,205 81,145 Assets held for sale 63,353 Total current assets 161,423 135,996 161,423 135,996 189,618 Total assets 401,323 426,280 401,323 426,280 410,718

Equity and Liabilities

Total equity 222 467 210 811 222 467 210 811 227 487 Total equity 222,467 210,811 222,467 210,811 227,487 Total non-current liabilities 69,960 124,782 69,960 124,782 67,452 Total current liabilities 108,896 90,687 108,896 90,687 115,778 Total equity and liabilities 401 323 426 280 401 323 426 280 410 718

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Total equity and liabilities 401,323 426,280 401,323 426,280 410,718

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SLIDE 17

Financials ( 3 )

Cash flow s ( DKK 1 ,0 0 0 )

Q2 2 0 1 1 Q2 2 0 1 0 YTD 2 0 1 1 YTD 2 0 1 0 FY 2 0 1 0

Net cash flow from: Operating activities 22,834 25,519 68,911 50,897 62,077 Investing activities*

  • 163
  • 7,294

25,436

  • 11,854
  • 31,098

Fi i i i i 9 708 897 60 668 4 357 15 353 Financing activitites

  • 9,708

897

  • 60,668
  • 4,357
  • 15,353

Cash flow s for the period 12,964 19,122 33,680 34,686 15,626 * Of this purchase of property, plant and equipment

  • 257
  • 7,269

25,499

  • 11,558
  • 29,916

p p p y, p q p , , , ,

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SLIDE 18

Liquidity and capital structure

As of 30 June 2011, Atlantic Airways had a comfortable equity ratio of 55% and net cash of DKK 115 mill.

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SLIDE 19

Listing and ow nership

  • Floated on NASDAQ OMX in Iceland December 2007 and on NASDAQ

OMX Copenhagen in November 2008

Listings NASDAQ OMX Iceland NASDAQ OMX Copenhagen Sym bol FO-AIR FO-AIR Market Cap. (as of 30 June 2011) MDKK 107 MDKK 107

  • 33% of shares held by private investors
  • 33% of shares held by private investors
  • 67% by the Faroese Government

Shareholders Ow nership Faroese Government 67.0 % Sp/ f.07.12.2007 5.6 % Other registered shareholders 21.7 % Non-registered shareholders 4.6 % Own shares 1.1 % Total 1 0 0 %

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SLIDE 20

Focus areas in 2 0 1 1

  • Challenges and changes regarding extended

runway

  • Airbus 319 Entry into service
  • Upgrading helicopter services
  • Continue to lower unit cost

Co u

  • o

u

  • s
  • Improved flexible services to customers
  • Increase tourism to the Faroes
  • Increase activities within charter and position

Increase activities within charter and position Airbus on the market

  • Advocate lower taxes and charges on aviation
  • Reduction and/ or diversification of taxes and

charges on air transport will support our aim to grow traffic and provide more alternatives with regard to destinations, capacity and prices. regard to destinations, capacity and prices.

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SLIDE 21

Expectations for 2 0 1 1

Market conditions

  • Traffic development in third quarter will be close to target

p q g

  • New uncertainties created by the financial turmoil
  • The steady high fuel price and increased charges on aviation hampers return to

growth

  • Market trends in tourism are in favour of Faroe Islands, but opportunity is not

exploited effectively

  • Demand and contracts for charters/ ACMI are up
  • In principle agreed to provide the Government an upgraded domestic helicopter

and SAR service based on two Bell 412 helicopters for the next four years

  • Prepared to provide oil industry with offshore support as it develops in Faroese

waters and follow the development West of Shetland closely waters and follow the development West of Shetland closely Financial

  • Atlantic Airways maintains its expectation of an improved result in 2011 compared

to 2010, but the level of improvement will de dependent on factors that the company ultimately cannot control, such as fuel prices, the various effects of the

  • ngoing global economic uncertainties and crisis situation in certain European

regions

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SLIDE 22

Board of Directors & m anagem ent

Board of Directors Managem ent

Bjarni A Bjarnason

Ch i

Magni Arge, CEO Marius Davidsen, CFO Bjarni A. Bjarnason, Chairman Kaj Johannesen, Deputy Chairman Jens W . W illum sen, Member of the Board Tezz Tordsdotter Ohlsson, Member of the Board I ngi S. Joensen, Member of the Board

(employee representative)

Olaf S. Poulsen, Member of the Board

(employee representative)

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SLIDE 23

Com pany inform ation

P/ F Atlantic Airw ays Vágar Airport FO-380 Sørvágur Faroe Islands Tel + 298 34 10 00 Tel + 298 34 10 00 Fax + 298 34 10 01 Established 1987

  • Reg. no. 1223

VAT Number 379778 u be 3 9 8 Domicile municipality: Sørvágur Website: www.atlantic.fo Email: ir@atlantic.fo For further inform ation contact: Magni Arge, CEO, tel + 298 213700- magni@atlantic.fo Marius Davidsen, CFO, tel + 298 213703 - marius@atlantic.fo

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SLIDE 24

Disclaim er

This presentation includes statements regarding future results, which are subject to risks and uncertainties. Consequently, actual results may differ significantly from the results indicated or implied in these statements No representation or warranty (expressed or implied) is made as f to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person’s officers or subsidiary undertakings or any of such person s officers or employees or advisors accept any liability whatsoever arising directly or indirectly from the use of this document

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