The Leading Ultra-Low-Cost Airline Serving Mexico and the US March - - PowerPoint PPT Presentation

The Leading Ultra-Low-Cost Airline Serving Mexico and the US

March 2015

Disclaimer

The information ("Confidential Information") contained in this presentation is confidential and is provided by Controladora Vuela Compañía de Aviación, S.A.B. de C.V., (d/b/a Volaris, the "Company") confidentially to you solely for your reference and may not be retransmitted or distributed to any other persons for any purpose whatsoever. The Confidential Information is subject to change without notice, its accuracy is not guaranteed, it has not been independently verified and it may not contain all material information concerning the Company. The Company, nor any of their respective directors makes any representation or warranty (express or implied) regarding, or assumes any responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information or opinions contained herein. None of the Company or any

• f their respective directors, officers, employees, stockholders or affiliates nor any other person accepts any liability (in

negligence, or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or

• therwise arising in connection therewith. No reliance may be placed for any purposes whatsoever on the information set

forth in this presentation or on its completeness.

2

This presentation does not constitute or form part of any offer or invitation for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Recipients of this presentation are not to construe the contents of this presentation as legal, tax or investment advice and should consult their own advisers in this regard. This presentation contains statements that constitute forward-looking statements which involve risks and uncertainties. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition, and future events and plans of the Company. These statements can be recognized by the use of words such as "expects," "plans," "will," "estimates," "projects," or words of similar meaning. Such forward-looking statements are not guarantees of future performance and actual results may differ significantly from those in the forward-looking statements as a result of various factors and assumptions. You are cautioned not to place undue reliance on these forward looking statements, which are based on the current view of the management of the Company on future events. The Company does not undertake to revise forward-looking statements to reflect future events or circumstances.

Solid fourth quarter 2014 results confirm reversal of trend

Total operating revenues: Increase 24% for the quarter and 8% full year, reaching

• Ps. 3,958 million and Ps. 14,038 million, respectively.

Total operating revenues: Increase 24% for the quarter and 8% full year, reaching

• Ps. 3,958 million and Ps. 14,038 million, respectively.

Disciplined capacity management: International ASMs grew 14% in 4Q and 17% FY, while Domestic ASMs remained stable for the quarter, supporting yield recovery. Total ASMs grew only 3% during the quarter and 8.5% for the year. Disciplined capacity management: International ASMs grew 14% in 4Q and 17% FY, while Domestic ASMs remained stable for the quarter, supporting yield recovery. Total ASMs grew only 3% during the quarter and 8.5% for the year. Continuous non-ticket revenue growth: Non-ticket per passenger reached Ps. 313 (US $23(1)) and Ps. 279 (US $21(1)), for the quarter and full year; an increase of 61% and 31%, Continuous non-ticket revenue growth: Non-ticket per passenger reached Ps. 313 (US $23(1)) and Ps. 279 (US $21(1)), for the quarter and full year; an increase of 61% and 31%, Positive cash flow generation, strong balance sheet and good liquidity: Net increase

• f cash by Ps. 342 million for the quarter; generating 16% of LTM revenues and negative

net debt (or positive net cash position) of Ps. 1,017 million. Positive cash flow generation, strong balance sheet and good liquidity: Net increase

• f cash by Ps. 342 million for the quarter; generating 16% of LTM revenues and negative

net debt (or positive net cash position) of Ps. 1,017 million.

Notes: (1) Converted to USD at an average exchange rate corresponding for the period.

3

$23(1)) and Ps. 279 (US $21(1)), for the quarter and full year; an increase of 61% and 31%,

• respectively. Year end non-ticket revenues represent 19% of Total Revenues.

$23(1)) and Ps. 279 (US $21(1)), for the quarter and full year; an increase of 61% and 31%,

• respectively. Year end non-ticket revenues represent 19% of Total Revenues.

Costs control & strong profitability: CASM ex fuel was Ps. 74.4 cents (US 5.37cents(1)) during 4Q and Ps. 71.6 (US 5.38 cents(1)) FY; maintaining lowest unit cost in the Americas. EBITDAR margin of 31% and 22%, an increase of 16.1 p.p. and 0.4 p.p., for the quarter and FY, respectively. Costs control & strong profitability: CASM ex fuel was Ps. 74.4 cents (US 5.37cents(1)) during 4Q and Ps. 71.6 (US 5.38 cents(1)) FY; maintaining lowest unit cost in the Americas. EBITDAR margin of 31% and 22%, an increase of 16.1 p.p. and 0.4 p.p., for the quarter and FY, respectively.

Sacramento Oakland Los Angeles San Diego Tijuana San Jose Fresno Mexicali Las Vegas Chicago (Midway/O’Hare) Denver Orlando Hermosillo Ciudad Juárez

Volaris – Mexico’s Ultra-Low-Cost Carrier’s snapshot at 30,000 feet

Serving to 57 destinations throughout Mexico and the US

2008 2014 CAGR Unit cost (CASM ex-fuel; cents, USD)(1) 5.5 5.4

• 0.4%

Passenger demand (RPMs, bn) 3.2 9.7 +20.5% Aircraft 21 50 +15.6%

Volaris’ destinations

Phoenix Ontario Portland

FY14 Int. Pax Revenue 28% FY14 Int. Pax Revenue 28% FY14 Dom. Pax FY14 Dom. Pax

Reno Houston Dallas Orlando Hermosillo Chihuahua Monterrey Cancún La Paz Los Cabos Los Mochis Culiacán Mérida Tuxtla Gutiérrez Acapulco Puebla Toluca Tepic Zacatecas Mazatlán Guadalajara Aguascalientes Puerto Vallarta Uruapan Colima Morelia Oaxaca León Querétaro

• Cd. de México/D.F.

Notes: (1) Converted to USD at an average annual exchange rate (2) Corresponds to the number of booked passengers (3) Based on number of passengers, domestic and international passengers Source: Company data, SCT-DGAC

Aircraft (End of Period) 21 50 +15.6% Passengers (mm)(2) 3.5 9.8 +18.7% Operating revenue (mm, USD)(1) 397 1,056 +17.7%

• Adj. EBITDAR

(mm. USD)(1) 67 232 +23.0%

• Adj. ROIC (pre-

tax) 11.0% 13.5% +2.5pp

San Luis Potosí Ciudad Obregón Veracruz San Antonio Villahermosa Tampico

Domestic market share(3)

Tapachula Huatulco

FY14 Dom. Pax Revenue 72% FY14 Dom. Pax Revenue 72%

Fort Lauderdale Houston

4

12.2% 20.7% 22.7% 23.0% 2008 2012 2013 2014

Torreón Durango

Volaris’ low base fares stimulate demand and drive continuing growth

Stimulation

• f

demand Lower base fares

Since its launch, Volaris has stimulated new demand in the Mexican market through an aggressive revenue management strategy that drives lower fares and higher load factors

More ancillary revenue More capacity Resilient ULCC business model driving high, profitable growth Lower cost

5

Aeromexico Interjet VivaAerobus Volaris

CASM FY 2014

• (cents, USD)(1)

13.8 13.1 9.7(2) 8.8 Low ticket prices FY 2014

• ≈
• Average Fare (USD)(1)

167 103 45(2) 87 Non-ticket rev. exc. Cargo FY 2014

• Non-ticket rev. exc. Cargo per pax (USD)(1)

6.7 8.5 23.4(2) 19.2

Volaris’ ULCC business model is clearly differentiated from legacies, hybrids and other LCC’s

Notes; (1) Converted to USD at an average exchange rate corresponding for the period, $13.2973 Ps. (2) Figures updated as per latest public reports as of September YTD 2014 Source: Company data, data airlines public information, DGAC reports, MI DIIO

Non-ticket rev. exc. Cargo per pax (USD) 6.7 8.5 23.4 19.2 Modern & uniform fleet

• ≈
• Average age fleet (years)

8.9 6.4 19.7 4.2 High daily utilization

• Block hours per day

11.4 8.8 8.4 12.3 Other/ eg. (No GDS)

• ≈
• Legacy < Hybrid/LCC < ULCC

6

5.5 5.2 4.6 5.5 4.5 4.0 4.5

Volaris has a best-in-class unit cost structure

Lowest unit cost in the Americas(1)

CASM and CASM ex-fuel (FY 2014, USD cents)(3)

8.8 17.4 15.2 13.8 13.6 10.5 9.7 11.0 9.6 14.9 13.1 12.5

5.4 11.9 9.9 9.2 8.0 8.6 6.6 5.5 8.5 6.6 5.9 10.4 3.4 4.0 4.2 4.3 3.8 Avianca LatAm Aeromexico Gol Interjet Copa VivaAerobus SouthWest Allegiant Spirit DCOMPS

Denotes fuel cost per ASM Latin American Carriers US Network Carriers(2) US LCCs

Notes: (1) Based on CASM among the publicly-traded airlines (2) DCOMPS= Direct Competitors: Average CASM and CASM ex-fuel; US network carriers include: Delta, United, Alaska Airlines, American Airlines (3) Non-USD data converted to USD at an average exchange rate corresponding for the period, $13.2973 Ps. (4) Based on CASM among the publicly-traded airlines as of September YTD 2014 Source: Company data, Airlines public information

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(4) (4) (4) (4)

Interjet

Focus on fleet utilization and efficiency drives higher revenue and lower cost: A320 retrofit and A321 arrival(1)

Load factor (FY 2014) Implied passengers per aircraft(2) 82% 72% 79% 147 109 127 Interjet A320 150 seats per aircraft Aeromexico 737-800 160 seats per aircraft Volaris A320 179 seats per aircraft

High density configuration(5)

Aeromexico VivaAerobus 737-300 148 seats per aircraft VivaAerobus (3) 81% 120

12.3 11.4 8.8 8.4 8.8 8.1 Aeromexico Interjet VivaAerobus Global A320 Global A319

Young, fuel efficient fleet

Notes: (1) A320 retrofit and factory fit to 179 seats/A321 arrival with 220 seats (2) Implied passengers per aircraft is calculated as available seats per aircraft multiplied by the load factor (3) Figures updated as per latest public reports as of September YTD 2014. (4) Block hours per day calculated as ((Total block hours for the period / Monthly average number of aircraft) / Number of days for the period) (5) Aeromexico, Interjet and VivaAerobus represent domestic competitors of Volaris Source: Company data, airlines public information, DGAC, Airbus, miDiio

High daily utilization

Block hours per day (FY 2014)(4) Average age (Yrs, FY 2014)

8

19.7 10.5 8.9 6.4 4.2 VivaAerobus Mexican Average Aeromexico Interjet

145

Bus passenger shift to air travel

Air travel time and cost savings Significant upside for air travel

Fare (USD)(2,3) Travel time (Hrs) Mexico City – Tijuana Total air travel trips (mm) Total bus trips (mm)

40.5 36.5 hours less 24% cost savings

2,781 2,706

2013 Executive & luxury First, economy and other

110 Bus Notes: (1) Executive and luxury class (2) Fare figures calculated with average prices for September 2014 (3) Non-USD data converted to USD at an average exchange rate corresponding for the period Source: Company data, Secretaría de Comunicaciones y Transportes (SCT)

(1)

4.0 Bus Air

• Mexico is almost three times the size of the state of Texas
• The distance between Tijuana and Cancún is similar to the

distance between New York City and San Francisco

• 4Q14 bus switching campaign resulted in a great success:
• Education an trial plans went viral
• Reached 20M impacts in social media and became

trending topic in Twitter: 8.4M impacts

30 30 60 2013 International Domestic 75

(1)

9

• Excess

baggage

• Checked

bag limited to 1 piece (25kgs.)

Unbundled strategy: “Tú decides” – You decide

• V-Club subscription

(113k active) suscriptions)

• Co-branded credit

cards (106k active cardholders)

• Advertising
• Food and

beverage

• Hotel

rooms

• Car rentals
• Airport

shuttle

Pre-flight(1) Flight planning At the airport Onboard aircraft Post-flight

• Seat

assignment

• Change /

booking fees

• Insurance
• Carry-on

(oversized)

• Strollers
• Priority

boarding

• Check-in
• Manage my

booking

• Vempresa
• Travel

Commerce

• IOS mobile app
• Packages
• Additional forms
• f payment

Notes: (1) V-Club & Co-branded credit cards figures as of January 31th,2015

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Acceleration of Volaris’ non-ticket revenues

Increased contribution of non-ticket revenue to the top line

Contribution to Operating Revenue 7% 7% 9% 13% 14% 2009 – 2014 CAGR: +53.2% Non-ticket revenue (USD mm)(1) Non-ticket revenue (USD mm)(1) 19% 24 39 68 115 148 206 2009 2010 2011 2012 2013 2014 7 9 11 15 17 21 2009 2010 2011 2012 2013 2014

Notes: (1) Converted to USD at an annual average exchange rate corresponding for the period Source: Company data, Airlines public information

Non-ticket revenue per passenger

Volaris (USD)(1) Best-in class US LCC’s (FY 14, USD)

2009 – 2014 CAGR: +24.5%

11

50 55 Allegiant Spirit

48 48 41 40 38 13 10 20 30 40 50 99 48 32 25 50 75 100

Attractive growth opportunities in Mexico and throughout the Americas

Domestic – growth potential of nearly 122 routes (4) International – growth potential of about 139 routes (4)

Number of routes(1) Number of routes(2)

Notes: (1) Minimum stage length of 170 miles (2) Minimum stage length of 200 miles; CAM stands for Central America; SAM stands for South America (3) South and northbound leisure routes (4) Figures calculated as of December 2014. Source: Company data and DIIO MI Market Intelligence for the Aviation Industry

USA (Leisure) USA (VFR) CAM, SAM, Canada, …

(3)

Routes served Growth potential

12

Capacity – ASMs (Year-over-year change) 4Q14 FY14 1Q15 FY15E Total 3% 9% 9% - 10% 10% - 12% Domestic

• 1%

6% 2% - 3% 2% - 4% International 14% 17% 30% - 32% 33% - 36%

Substantial growth opportunity in the US-Mexico VFR / leisure travel market

San Francisco 0.7mm San Jose 0.4mm Denver 0.5mm Sacramento 0.3mm Chicago 1.5mm Fresno 0.5mm Los Angeles 4.6mm Las Vegas 0.4mm Phoenix 1.2mm Albuquerque 0.2mm San Antonio 0.9mm Bakersfield 0.4mm Austin 0.4mm Dallas 1.5mm Houston 1.5mm Atlanta 0.3mm Washington 0.1mm New York 0.5mm Philadelphia 0.1mm Portland 0.2mm

Notes: (1) Represents Mexican origin population figures as per population data released on May 26, 2011 (2) Mexican origin is based on self-described ancestry, lineage, heritage, nationality group or country of birth. Source: Pew Research Hispanic Center

Denotes Volaris presence(1) Denotes other cities with large Mexican origin populations(1,2)

Significant Mexican origin population(2) of 33.7 million in the US Significant Mexican origin population(2) of 33.7 million in the US

Orlando 0.1mm San Diego 0.9mm San Bernardino 1.7mm Tucson 0.3mm El Paso 0.6mm 0.4mm San Benito 0.3mm Mission 0.6mm Tampa 0.1mm Miami 0.1mm

13

17 23 26 36 Dec' 11 Dec' 12 Dec' 13 Dec' 14

Positive expansion, managing capacity and diversification of routes

Volaris offers more domestic routes than any other Mexican carrier

Volaris flown domestic routes Volaris flown international routes

More than 2x More than 2x

39 50 78 93 Dec' 11 Dec' 12 Dec' 13 Dec' 14 Dec' 11 Dec' 12 Dec' 13 Dec' 14 Notes: (1) Capacity measured by ASM’s Source: Data company, SCT-DGAC, DIIO MI

Percentage of Volaris’ 1Q15 domestic capacity competing with:

A significant portion of our capacity faces no competition(1)

14

67% 66% 30% 20% Aeromexico Interjet Vivaaerobus Non-competed Dec' 11 Dec' 12 Dec' 13 Dec' 14

Fleet and financials

15

24 23 22 19 9 14 23 2 2 3

A higher density fleet generates more incremental capacity with fewer additional aircraft

Projected fleet under current contracts (number of aircraft)(1) 50 55 59 44

20 18 17 12 FY13 FY14 FY15 FY16 A319 A320 A320 w/Sharklets A320 NEO w/Sharklets A321 w/Sharklets

Notes: (1) Net fleet after additions and returns (2) Figure calculated as of February 2015 (3) Percentage of year-end fleet with sharklets Source: Company data

Backlog of 60 Aircraft to support growth(2)

Seat growth % fleet w/Sharklets(3) 7% 18% 13% 29% 14% 47%

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Solid financial performance

Operating revenues(1)

• Adj. EBITDAR(1)

374 536 714 887 1,018 1,056 200 400 600 800 1,000 1,200 2009 2010 2011 2012 2013 2014 (USD mm) 116 140 100 188 220 232 50 100 150 200 250 2009 2010 2011 2012 2013 2014 (USD mm) 23% 17% 14% 10% 0% 10% 20% 30% Copa GOL LatAm

Note: (1) Converted to USD at an average exchange rate corresponding for the period (2) Figures updated as per latest annual public reports as of December 2013 Source: Company data, airlines public information

Operating Revenues CAGR 2009 - 2014 Full year 2014 Adj. EBITDAR margin

17

(2) (2)

22% 28% 19% 18% 0% 10% 20% 30% Copa Gol Aeromexico

(2)

16.1% 28.1% 19.3%

LTM Liquidity – Cash and Equivalents / Op. Revenue

Solid balance sheet and liquidity, well funded for growth

• IPO provided sufficient liquidity / capital

for growth over the next years

• Fully financed pre-delivery payments and

executed sale-leasebacks for all deliveries in 2015 and 2016

• A good liquidity position to strengthen our

balance sheet

7.4% 5.9% Copa GOL Aeromexico LatAm

Note: (1) Principal + interest debt (2) Includes IPO Smiles program proceeds (3) Figures updated as per latest public reports as of September 2014 Source: Company data, Airlines public information

(2,3)

18

(3)

balance sheet

• Unrestricted cash of $2.3 billion pesos as
• f December 31st 2014.

Active in jet fuel hedging, reaching up to 45% of projected consumption for 2015

Period Total % hedged

• Avg. price (gal/USD$)

Instrument

1Q15 29% $2.53 Swap/Call 2Q15 45% $2.15 Swap/Call

19

3Q-4Q15 45% $2.07 Call 1Q16 10% $1.84 Call 2Q16 5% $1.70 Call

Appendix

20

Non-IFRS Terms Glossary

• Available seat miles (ASMs): Number of seats available for passengers multiplied by the number of miles the seats are flown.
• Block hours: Number of hours during which the aircraft is in revenue service, measured from the time it leaves the gate until the

time it arrives to the gate at destination.

• Revenue passenger miles (RPMs): Means the number of miles flown by passengers.
• TRASM: Total revenue divided by ASMs.
• RASM: Passenger revenue divided by ASMs.
• CASM: Total operating expenses, net divided by ASMs.
• CASM: Total operating expenses, net divided by ASMs.
• CASM ex fuel: Total operating expenses, net excluding fuel expense divided by ASMs.
• Load factor: RPMs divided by ASMs and expressed as a percentage.
• EBITDA: Earnings before interest, taxes, depreciation and amortization.
• EBITDAR: Earnings before interest, taxes, depreciation, amortization and aircraft rent expense.
• Adj. EBITDAR: EBITDAR adjusted by non-cash and non-recurring items.
• Adj. Debt: Financial debt plus seven times the aircraft rent expense.
• Adj. Net debt: Adj. Debt minus cash and cash equivalents.
• VFR: Passengers who are visiting friends and relatives.

21

MXN millions unless otherwise stated (2) 2012A 2013A 2014A 2014A (1) 4Q 2014A 4Q 2014A (1) % of total

• perating

revenues (USD millions) (USD millions) Passenger 10,177 11,117 11,303 768 3,140 213 79.3 Non-ticket 1,510 1,885 2,733 186 818 56 20.7 Total operating revenues 11,686 13,002 14,037 954 3,958 269 100 Fuel 4,730 5,086 5,364 364 1,276 87 32.2 Aircraft and engines rent expense 1,886 2,187 2,535 172 675 46 17.1 Salaries and benefits 1,303 1,563 1,577 107 402 27 10.2 Landing, take off and navigation expenses 1,640 1,924 2,066 140 488 33 12.3 Sales, marketing and distribution expenses 752 704 817 56 227 15 5.7 Maintenance expenses 499 572 665 45 192 13 4.8 Other operating expense 288 347 468 32 134 9 3.4 Depreciation and amortization 211 302 343 23 138 9 3.5

Consolidated statements of operations summary

Depreciation and amortization 211 302 343 23 138 9 3.5 Total operating expenses 11,308 12,685 13,833 940 3,532 240 89.2

EBIT 378 317 204 14 426 29 10.8 Operating margin (%) 3.2 2.4 1.5 1.5 10.8 10.8 Finance income 14 25 23 2 6

• 0.2

Finance cost (90) (126) (32) (2) (9) (1) (0.2) Exchange (loss) gain, net (95) 66 449 30 336 23 8.5 Income tax expense (3) (18) (39) (3) (57) (4) (1.4) Net income 203 265 605 41 703 48 17.8 Net margin (%) 1.7 2.0 4.3 4.3 17.8 17.8 Net income excluding special items (3) 203 379 605 41 703 48 17.8 Adjusted EBITDAR 2,475 2,806 3,081 209 1,239 84 31.3

• Adj. EBITDAR margin (%)

21.2 21.6 22.0 22.0 31.3 31.3 EPS Basic and Diluted 0.29 0.31 0.60 0.04 0.69 0.05 EPADS Basic and Diluted 2.94 3.10 5.98 0.41 6.95 0.47

Notes: (1) Figures converted to USD December end of the period spot exchange rate $14.7180, for convenience purposes only (2) Audited financial information 2012A – 2013A (3) Excludes debt prepayment of Ps.65 million, and reservation system migration costs and other non-recurring items of Ps.48 million. Source: Company data

22

Consolidated statements of financial position summary

MXN millions unless otherwise stated (5) 2012A 2013A 2014A 2014A (1) (USD millions) Cash and cash equivalents 822 2,451 2,265 154 Current guarantee deposits 238 499 545 37 Other current assets 755 1,050 879 60 Total current assets 1,815 4,000 3,689 251 Rotable spare parts, furniture and equipment, net 1,195 1,341 2,223 151 Non-current guarantee deposits 2,245 2,603 3,541 241 Other non-current assets 447 434 452 31 Total assets 5,702 8,378 9,905 673 Unearned transportation revenue 1,259 1,393 1,421 97 Short-term financial debt 527 268 823 56 Other short-term liabilities 1,936 2,211 2,524 172

Nota: (1) Figures converted to USD December end of the period spot exchange rate $14.7180, for convenience purposes only (2) Net debt = financial debt - cash and cash equivalents (3) Adjusted debt = (LTM aircraft rent expense x 7) + financial debt (4) Adjusted net debt = adjusted debt - cash and cash equivalents (5) Audited financial information 2012A – 2013A Source: Company data

Other short-term liabilities 1,936 2,211 2,524 172 Total short-term liabilities 3,722 3,872 4,768 324 Long-term financial debt 633 294 425 29 Other long-term liabilities 272 250 242 16 Total liabilities 4,627 4,416 5,435 369 Total equity 1,075 3,962 4,470 304 Total liabilities and equity 5,702 8,378 9,905 673 Net debt (2) 338 (1,889) (1,017) (69) Adjusted debt (3) 14,360 15,874 18,990 1,290 Adjusted net debt (4) 13,538 13,423 16,725 1,136

23

Consolidated statements of cash flows summary

MXN millions unless otherwise stated (2) 2012A 2013A 4Q 2014A 4Q 2014A (1) 2014A 2014A (1) (USD millions) (USD millions) Cash flow from operating activities Income before income tax 207 283 644 44 760 52 Depreciation and amortization 211 302 343 23 138 9 Guarantee deposits (311) (620) (695) (47) (265) (18) Unearned transportation revenue 433 135 27 2 (74) (5) Changes in working capital and provisions (43) (61) 14 1 (90) (6) Net cash flows provided by operating activities 497 39 334 23 470 32 Cash flow from investing activities Acquisitions of rotable spare parts, furniture, equipment and intangible assets (856) (1,161) (1,603) (109) (513) (35) Proceeds from disposals of rotable spare parts, furniture and equipment 1,043 849 418 28 141 10

Notes: (1) Figures converted to USD December end of the period spot exchange rate $14.7180, for convenience purposes only (2) Audited financial information 2012A - 2013A Source: Company data

equipment 1,043 849 418 28 141 10 Net cash flows provided by (used in) investing activities 187 (312) (1,185) (81) (372) (25) Cash flow from financing activities Payments of Treasury Shares

• (7)
• (7)
• Net proceeds from initial public offering
• 2,578
• Transaction costs on issue of shares
• (38)
• Proceeds from exercised treasury shares
• 26
• Interest paid

(127) (65) (23) (2) (7)

• Other financing costs
• (11)

(1) (4)

• Payments of financial debt

(694) (1,084) (400) (27) (132) (9) Proceeds from financial debt 550 444 966 66 395 27 Net cash flows (used in) provided by financing activities (272) 1,861 525 36 245 17 Increase (decrease) in cash and cash equivalents 412 1,588 (326) (22) 342 23 Net foreign exchange differences (31) 41 141 10 108 7 Cash and cash equivalents at beginning of period 441 822 2,451 167 1,814 123 Cash and cash equivalents at end of period 822 2,451 2,265 154 2,265 154 24

• Adj. EBITDA and Adj. EBITDAR reconciliation

MXN millions unless otherwise stated (2) 2012A 2013A 2014A 2014A (1) 4Q 2014A 4Q 2014A (1) (USD millions) (USD millions) Net income 203 265 605 41 703 48 Plus (minus): Finance costs 90 126 32 2 9 1 Finance income (14) (25) (23) (2) (6)

• (Benefit)/provision for income taxes

3 18 39 3 57 4 Depreciation and amortization 211 302 343 23 138 9 Business alliance amortization

• Notes:

(1) Figures converted to USD December end of the period spot exchange rate $14.7180, for convenience purposes only (2) Audited financial information 2012A - 2013A Source: Company data

Business alliance amortization

• EBITDA

494 685 996 68 900 61 Exchange (gain) loss, net 95 (66) (449) (30) (336) (23) Other financing cost (income), net

• Adjusted EBITDA

589 619 547 37 564 38 Aircraft and engine rent expense 1,886 2,187 2,535 172 675 46 Adjusted EBITDAR 2,475 2,806 3,081 209 1,239 84 25