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CEB
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Disclaimer
This information provided in this presentation is provided only for your reference. Such information has not been independently verified
and, as such, is not guaranteed to be accurate nor complete. Neither Cebu Air, Inc. (CEB or the Company) nor any of its affiliates,
shareholders, directors, employees, agents or advisers makes expressed or implied representations or warranties as to the accuracy or
completeness of the information contained herein and neither of them shall accept any responsibility or liability (including any third
party liability) for any loss or damage, whether or not arising from any error or omission in compiling such information or as a result of
any partys reliance or use of such information. The information and opinions in this presentation are subject to change without notice.
EBITDAR, EBITDA, EBITDAR Margin, EBIT and core net income are not measures of performance under the Philippine Financial Reporting
Standards (PFRS), and should not be considered in isolation or as alternatives to net income as an indicator of CEBs operating
performance or to cash flow from operating, investing and financing activities as a measure of liquidity, or any other measures of
performance under PFRS. Because there are various EBITDAR, EBITDA, EBITDAR Margin, EBIT and core net income calculation methods,
CEBs presentation of these measures may not be comparable to similarly titled measures used by other companies.
This presentation also contains certain forward-looking statements. These forward-looking statements include words or phrases such
as CEB or its management believes, expects, anticipates, intends, plans, foresees, or other words or phrases of similar import.
Similarly, statements that describe CEBs objectives, plans or goals are also forward-looking statements. All such forward-looking
statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by
the relevant forward-looking statement. Such forward looking statements are made based on managements current expectations or
beliefs as well as assumptions made by, and information currently available to, management. There is no assurance that expected
events will occur, that projections will be achieved, or that the Company and its managements assumptions are correct.
2
Our journey so far has been good
CEB Passengers (M)
18.4 19.1
16.9
14.4
13.3
11.9
10.5
8.7
6.4
5.2
3.3
2.0 2.3 2.1
0.4 1.0 1.2 1.5 1.5 1.6 1.7
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
4
Business Updates
Some Operating Statistics
As of December 31, 2016:
4.8 6.6
4.4
Domestic
International
14.0 14.4
1.8
0.1
Source: CAB (full year 2016 CAB data not yet available)
6
Leader in Domestic Market
Highest domestic market share at 58% - carried 14M domestic passengers in 2016
Highest seat load factor and competitive performance index
Most extensive domestic network: 36 routes and 59 destinations
From 2007-2015, CEB passenger traffic posted CAGR of 13.7%, higher than industrys 9.9%
0.89 72%
CEB group PAL group AirAsia group CEB group PAL group AirAsia group
Source: CAB (full year 2016 CAB data not yet available)
Growing International Markets
1H2016 Market Share
CEBs international market share now 20%; healthy seat load factor of 79%
From 2006 to 2015, international passenger traffic grew at a CAGR of 7.6%
CEB 20%
Domestic carriers posted a CAGR of 12.7%, with CEB growing the fastest at Foreign
28% CAGR carriers
49% PAL 27%
International network of 30 international destinations and 43 routes
9
Prudent Balance Sheet; Free Cash Flow Positive
Cash level at P4.7B in 2015 vs. P7.1B in 3Q16
Property and equipment at P79.1B vs. P72.1B in 2015 due to three A320 aircraft additions, two A319
disposal, and additional pre-delivery payments for future aircraft deliveries
Total debt(1) 36,589 37,499 Acquisition of PPE & other assets, net (12,354)
Other liabilities 23,284 24,494 Increase in investment in JVs, net (119)
Total Liabilities 59,873 61,993 Net cash used in investing (12,473)
Total Equity 24,955 30,841
Net Availment (Repayment) of Debt (152)
Net debt/equity(2) 1.28x 0.99x Dividends paid (1,212)
Adjusted net debt/equity(3) 2.48x 2.01x Net cash provided by financing (1,363)
Cash-to-sales-LTM ratio 8% 13% Net foreign exchange difference 184
Forex, closing 47.06 48.50 NET INCREASE IN CASH 2,395
CASH AND EQUIVALENTS, END 7,101
NOTE:
(1) Includes current and noncurrent portion of long-term debt
(2) Net debt is total debt less cash and cash equivalents
(3) Adjusted net debt is net debt plus capitalized lease and ARO
10
What made us click?
What made us successful?
12
CEBs Philippine, and Filipino, advantage
Location, location, location! FOUR HOURS
- Over 100M population, 7,100 islands 90 airports
- Two billion people within four hours from MLA Nominal GDP per Capita at 10.4% CAGR
2,787 2,873 2,899
The Filipino Diaspora 2,372
2,605
2,154
- Over 10% of Filipinos live and work abroad
- Hongkong, Singapore, UAE, Saudi
17 November 2015
Outlook
Our growth story is far from over
A fundamental of air travel: Population and disposable income drive demand:
+ 40
Low air travel penetration Country Trips Per Capita GDP Per Capita Population (M)
Singapore 6.01 USD 55,910 5.5
+
Hong Kong 5.17 40,252 7.2
Liberalized aviation markets Malaysia 1.59 10,933 29.9
Thailand 0.65 5,977 68.0
Indonesia 0.37 3,492 254.0
Philippines 0.31 2,871 99.0
Vietnam 0.27 2,015 91.0
Large and growing
LCC opportunity Others: India at 0.3; PRC at 1.3; Europe at 2.2 and US at 2.4 trips per capita
Some headwinds along the way
Airports congestion
Competition
16
Fuel, Forex, and Rates Challenge
Fuel
As of Feb 17, 2017, Jet Kero closed at $66.12/bbl Jet Kero Spot Price Index
70
Forex
As of Feb 17, 2017, USDPHP closed at Data source: Bloomberg
Rates 48
10 November 2016 17
Fleet Expansion Plan:
Get bigger, reach farther, and get smarter!
Current fleet of 57: 36 A320, 4 A319, 7 A330, 8 ATR 72-500, and 2 ATR 72-600
Remaining order book of 32 A321 NEO, 14 ATR 72-600, and 1 A330
For balance of 2017 to 2021:
1 A330 for delivery in 2017
4 A319 to be sold between 2017-2018 Ave. fleet age(1)
7 A320 for lease return in 2018-2019 4.91 years
14 ATR 72-600 for delivery from 2017-2020
32 A321 NEO to be delivered between 2017-2021
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