AVIATION SERVICES

Third quarter results
Presentation for analysts
25 September 2006
Content
1
Financial Overview – Birgir Haraldsson, Director Audit
2
Aviation Services – Hafþór Hafsteinsson, CEO
3
Shipping & Logistics – Baldur Guðnason, CEO
4
Charter & Leisure – Magnus Stephensen, CEO
5
Summary – Magnús Þorsteinsson, Chairman
Financial overview
Birgir Haraldsson, Director Audit
Financial overview
•
All companies started using the accounting year 1.11-31.10 at beginning of November
2005.
•
The comparative figures in the financial statement are for the 10 month period 1 January –
31 October 2005
•
Operating revenues $ 1,400 million
•
Operating expenses $ 1,424 million
•
Loss before tax $ 83 million
•
Net loss $ 69 million
4
Financial overview
•
•
•
Total block hours flown decreased by 43% to 71,000 in Aviation Services
Number of passengers increased by 14% to 2,933 in Charter & Leisure
Total tonnes transported increased by 16% to 1,677 in Shipping & Logistics
•
•
•
•
EBITDA: $ 34 million
EBITDA / revenues: 2,5%
EBIT: $- 24 million
EBIT / revenues: -1,7%
•
•
Total assets: $ 2,129 million
Total equity: $ 523 million
•
•
Equity ratio: 25%
Current ratio: 0.98
5
1
Financial Overview
2
Income Statement & Cash flow
3
Balance Sheet
6
Income Statement for 3Q 2006
All amounts in $ ,000
2005/6
1.11-31.7
2006
3Q
2005
1.1-31.10
Net sales ...............................................................................
Other income ........................................................................
Total operating revenue
1.374.319
25.335
1.399.654
668.778
7.653
676.431
1.379.537
21.954
1.401.491
Aviation Services ..................................................................
Charter & Leisure .................................................................
Shipping and Logistics .........................................................
Total operating expenses
(316.531)
(744.514)
(362.605)
(1.423.650)
(94.829)
(428.181)
(133.837)
(656.847)
(367.017)
(797.999)
(189.793)
(1.354.809)
Operating result..............................................................
(23.996)
19.584
46.682
Effects of associated companies ...........................................
Financial income (expenses) .................................................
Net financial income (expenses)
(1.713)
(57.242)
(58.955)
(2.074)
(8.702)
(10.776)
(203)
(1.965)
(2.168)
Result before taxes........................................................
(82.951)
8.808
44.514
Income tax ............................................................................
14.086
(5.973)
(12.116)
Net result for the period.................................................
(68.865)
2.835
32.398
7
Cash Flow for the 2006
All amounts in $ ,000
2005/6
1.11-31.7
2005
1.1-31.10
Net earnings (loss) .................................................................
(68.865)
32.398
Net cash (to) from operating activities ......................................
Net cash used in investing activities .........................................
Net cash provided by financing activities ..................................
(41.638)
(100.646)
272.452
1.093
(209.614)
305.563
Net change in cash and cash equivalents ...........................
Effects of foreign exchange adjustments ............................
Cash and cash equivalents at beginning of year ................
130.169
2.813
150.346
97.042
(5.557)
58.861
Cash and cash equivalents at end of period .......................
283.328
150.346
8
Financial ratios and key figures
All amounts in $ ,000
9m 2006
10m 2005
Equity ratio ......................................................................
Current ratio ....................................................................
Return on equity ..............................................................
Working capital provided by operating activit. ................
EBIT .................................................................................
EBITDA ..........................................................................
EBIT / revenue .................................................................
EBITDA / revenue ...........................................................
24,6%
0,98
-14,2%
(7.501)
(23.996)
34.410
-1,7%
2,5%
29,9%
0,71
13,7%
71.535
46.682
100.524
3,3%
7,2%
Total block hours flown ..................................................
Number of passangers (thousands) ..................................
Total ocean freight transported (tonn) ..............................
71.236
2.933
1.676.961
133.053
3.066
9
1
Financial Overview
2
Income Statement & Cash flow
3
Balance Sheet
10
Balance Sheet 31 July 2006
All amounts in $ ,000
31.7.2006
31.10.2005
Goodwill ......................................................................
Other intangible assets ................................................
Property, aircraft, vessels and equipment .....................
Investment in associated companies ............................
Other investment ..........................................................
Guarantee deposits .......................................................
Deferred tax assets .......................................................
Total non-current assets
558.928
36.718
516.705
26.305
106.862
26.868
31.449
1.303.835
501.226
30.566
449.490
839
40.050
18.309
12.864
1.053.344
Inventories ...................................................................
Trade receivables .........................................................
Other receivables .........................................................
Cash and cash equivalents ............................................
Assets classified as held for sale ..................................
Total current assets
21.688
251.080
249.076
283.328
20.367
825.539
16.105
184.422
91.020
150.346
9.775
451.668
Total assets
2.129.374
1.505.012
11
Balance Sheet 31 July 2006
Equity
All amounts in $ ,000
31.7.2006
31.10.2005
Issued capital ...........................................
Share premium ..........................................
Reserves ....................................................
Retained earnings .....................................
Stockholders' equity
26.346
516.053
(30.204)
(15.802)
496.393
22.013
365.393
10.030
51.637
449.073
Minority interest .......................................
Total equity
26.709
523.102
1.495
450.568
12
Balance Sheet 31 July 2006
Liabilities
All amounts in $ ,000
31.7.2006
31.10.2005
Non-current liabilities
Interest bearing loans and borrowings ...................
Guarantee deposits .................................................
Employee benefits .................................................
Provisions ..............................................................
Deferred tax liabilities ...........................................
Total non-current liabilities
656.649
3.375
313
94.455
6.685
761.477
410.132
1.697
1.073
0
7.934
420.836
Current liabilities
Interest bearing loans and borrowings ...................
Trade payables .......................................................
Other payables .......................................................
Total current liabilities
137.370
163.095
544.330
844.795
222.177
152.476
258.955
633.608
Total liabilities
1.606.272
1.054.444
Total equity and liabilities
2.129.374
1.505.012
13
Aviation Services Division
Hafþór Hafsteinsson – CEO Aviation Services
Aviation Services Division
•
•
The main focus of Aviation Services
Division is the International Wet
Lease Operation of Air Atlanta
Icelandic , and aircraft trading
activities of the newly formed Avion
Aircraft Trading.
Supporting activities are
Maintenance & Engineering Services
provided by Avia Technical Services
(ATS), airport handling provided by
Southair.
Air Atlanta Icelandic provides ACMI services to the air
passenger and cargo markets worldwide. Air Atlanta
Icelandic operates a fleet of approximately 40 aircraft .
Air Atlanta Icelandic has approximately 1,500 employees
and contractors at peak times.
Avion Aircraft Trading is a newly established company
handling the Group's aircraft dealing. The company is
part of Aviation Services. Avion Aircraft Trading recently
concluded the purchase of eight Boeing 777-200 cargo
aircraft.
Avia Technical Services in a maintenance, repair and
overhaul company that performs maintenance services on
Avion Group’s aircraft and third party aircraft. ATS has
approximately 300 employees.
SouthAir Iceland is a leading ground handling company
which has been at Keflavik International Airport for over
six years. SouthAir employs has approximately 20
employees.
15
AVIATION SERVICES
1
Financial Overview
2
Operational Overview
3
Outlook 2006
16
AVIATION SERVICES – Financial overview
9 months
• Operating Revenues $361 million
3rd Quarter
• Operating Revenues $102 million
•
Operating Expenses $383 million
•
Operating Expenses $115 million
•
•
EBITDA was $ 11 million
EBITDA 3%
•
•
EBITDA was $3.6 million
EBITDA 4%
•
•
EBIT was $-22 million
EBIT -6%
•
•
EBIT was $-13 million
EBIT -13%
17
AVIATION SERVICES
1
Financial Overview
2
Operational Overview
3
Outlook 2006
18
In transition after 16 years continues growth period
Continued
growth
Transition
Growth – Merger - Transition
700
ƒ In 2006, AAI has undergone
transition period as a result
of strategic change to
simplify fleet and focus
more on cargo
Merger period
500
400
1991 – 2004 revenue CAGR 33%
300
200
100
0
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005*
2006B
2007E
2008E
2009E
2010E
ƒ The growth slowed down
during the merger period
2004 and 2005
600
Revenue (USDm )
ƒ AAI has shown exceptional
revenue growth between
1991 and 2004 at a CAGR of
33%
Air Atlanta
Íslandsflug
Business plan
forecasts
* 2005 figures represent 10 months from
Jan- October due to changes of the financial
year to November through October
The Transition Period started in October 2005
ƒ The Board of Avion Group approved a restructuring plan in October 2005
Main focus of The Restructuring Plan
ƒ Increase emphasis on higher margin/longer
contract cargo projects and reduce the risk of
lower margin/seasonal pax projects
ƒ Simplify the fleet to increase operational
efficiency; retire old and inefficient aircraft
ƒ Cut out projects with negative contribution;
improve project control to ensure higher
margins
ƒ Transfer the Boeing 757, 767 and the Air
Atlanta Europe operation to Excel Airways
Group
The rationale for increased emphasise on Cargo Projects
Share of freight carried by pure
cargo aircraft expected to increase
Growth in World Air Cargo
ƒ Currently, 41% of all cargo volumes is
carried within passenger aircraft bellyholds
ƒ However, growth in cargo traffic is
forecast to outstrip growth in passenger
aircraft capacity
ƒ This will lead to an increase in demand for
cargo-only aircraft, resulting in a larger
share in air freight carried
ƒ World air cargo traffic is
expected to expand at an
average annual rate of 6.2%
according to Boeing and
5.9% according to Airbus in
the next two decades
FTKs (Billions)
800
Forecast
600
6.2%
CAGR
500
200
100
0
0
56%
20%
1998
2003
2008
2013
2018
2023
2023
66%
141.1
59%
Standard-body
(<50 tons)
34%
31%
41%
2003
1993
2003
442.7
300
200
ƒ Freighter fleet size globally will
grow from 1,766 in 2003 to 3,456
in 2023 according to Boeing
ƒ Medium wide-body and large
cargo aircraft are expected to
lead fleet additions, growing from
an estimated overall share of 44%
to 60%
24%
FTKs (billions)
400
400
Wide-body fleet additions are
expected to significantly
outgrow smaller aircraft
Belly holds +4.8% p.a.
2023
Medium wide-body
(40-65 tons)
40%
29%
Dedicated freighters +6.5% p.a.
Large (>65 tons)
The Fleet Restructuring in 2006
ƒ A comprehensive fleet restructuring program was carried out during the 9 months in order to increase
operational efficiency and complete the merger process of Íslandsflug into Air Atlanta
The Fleet Restructuring
ƒ 20 aircraft will be transferred out of Air Atlanta’s
fleet during the financial year Nov 2005 - Oct
2006
Airbus A-310
Boeing 737-400
PAX
Boeing 747-200
Boeing 747-300
Boeing 767-200
xx
xxx x
xx
Boeing 737-300
xxxx
Boeing 747-400
Boeing 757-200
FLEET
CARGO
x
x x xx x
xx
Airbus A-300
Airbus A-310
Boeing 747-200
Boeing 747-400
Restructuring cost
ƒ The fleet restructuring has lead to short-term
downsizing, and has incurred more cost than
expected that will temporarily impact the financial
results of Air Atlanta Icelandic in 2006.
ƒ Number of aircraft not being utilized during
maintenance checks required prior to returning
aircraft
ƒ Redelivery cost (painting, interior, etc.)
ƒ Extra scrap and depreciation of spare parts due
to elimination of aircraft types
ƒ Extra administrative costs (employee, legal,
travel, etc.) required for the fleet restructuring
Air Atlanta’s future market position
35
30
25
20
15
10
5
0
25
20
15Peer
group by 747-400F aircraft type
10
5
Current
China Airlines
Cargolux
SIA
Korean Air
AAI
Nippon Cargo
Cathay
UPS
Atlas Air
Polar Air
Asiana Airlines
Emirates
EVA Air
Global Supply
Air China
China Southern
Japan Airlines
Malaysia Airlines
Dragonair
Great Wall Airlines
0
Atlas Air
Nippon
Cargolux
AAI
Cathay
China
Korean Air
Kalitta Air
SIA
EVA Air
Air France
Japan
Evergreen
Air HK
Martinair
Emirates
Etihad
Air China
MK
Asiana
Fleet size
Peer group cargo carriers*
747-400F fleet
ƒ AAI will become a substantial operator in the cargo market
Current
Orders
Orders
ƒ Compared to the range of existing airlines which operate in the cargo market (excluding integrators), AAI is
expected to become the 4th largest wide-body cargo operator by 2010
ƒ Its position as a major B747-400F operator will be secured by deliveries and conversions
ƒ AAI will be a strong platform/player to benefit from continued freight market growth
Source: Air Transport Intelligence/ACAS fleet data
*AAI’s future orders equal net increase in cargo
carriers by 2010. For all other peer airlines,
orders exclude replacements
New Organizational Chart
•
Air Atlanta Icelandic made organizational changes in 3rd quarter
Board of Directors
Hafthor Hafsteinsson - Chairman
CEO
Hannes Hilmarsson
Accountable Manager
Director IT
Helgi Bjorgvinsson
Director Quality
Adalsteinn Einarsson
Director Flight Safety
Bjarni Gudmundsson
VP Finance
Geir Valur Agustsson
VP HR & Admin
Stefan Eyjolfsson
VP Sales & Marketing
Johann Karason
VP Maintenance
Thorir Kristinsson
VP Flight Operations
Einar Björnsson
ƒ Hafthor Hafsteinsson became Chariman of the Board of Air Atlanta Icelandic. Hafthor will continue to be
CEO Aviation Serverces
ƒ Hannes Hilmarsson replaced Hafthor as Chief Executive Officer
ƒ Jóhann Kárason became VP Sales & Marketing
ƒ Geir Valur Ágústsson became VP Finance
ƒ Stefán Eyjólfsson became VP Human Resources
24
Main activities during the 9 months and to date are:
•
4 Boeing 777-200 Long Range Freighters purchased from Boeing in December, in addition
to 4 previously purchased. 2 deliveries moved forward from 2011 to 2010 due to market
demand
•
5 Airbus A300-600 purchased from China Airlines; all re-sold with good profits
•
7 B747-400 (thereof 5 freighters purchased from ANA and Cargolux to be used with Air
Atlanta as part of the fleet restructuring program
•
3 B747-400 freighters purchased from Air France and in process of being re-sold to a third
party cargo carrier (4Q sale)
•
Change in management of AAT and new strong organization
25
Organizational Chart – Avion Aircraft Trading
•
Avion Aircraft Trading organizational changes in 3rd quarter:
Board of Directors
Hafthor Hafsteinsson - Chairman
CEO
David Masson
VP Finance
Þorsteinn Ó. Þorsteinsson
VP Maintenance
Valdimar Sæmundsson
VP Sales & Marketing
Carine Truong
Technical Contractor
Frank Kurhe
Technical Contractor
Finnbogi Óskarsson
ƒ Hafthor Hafsteinsson became Chariman of the Board of Avion Aircraft Trading. Hafthor will continue to be
CEO Aviation Serverces
ƒ Davíð Másson replaced Hafthor as Chief Executive Officer of Avion Aircraft Trading
26
Status of sale of 51% of AAT:
•
Avion Group announced at the end of June its intent to sell 51% of Avion Aircraft Trading to
an international investment group. During final negotiations other parties showed strong
interest.
•
Avion Group’s Board of Directors decided not to conclude the sale at this time and
continue further talks with other interested parties to maximize shareholders value.
•
In addition current developments of aircraft transactions are promising.
27
AVIATION SERVICES
1
Financial Overview
2
Operational Overview
3
Outlook 2006
28
AVIATION SERVICES
Outlook 2006
•
The restructuring of Air Atlanta Icelandic has lead to short-term downsizing, and has incurred
more cost than expected that will temporarily impact the financial results of Air Atlanta
Icelandic in 2006.
•
The restructuring will be finalised by October 2006, and next years outlook is positive for Air
Atlanta Icelandic, with simplified Aircraft fleet and improved operational efficiency.
•
Further gains on asset sale to be realized with Avion Aircraft Trading. More A300-600
freighter purchases and sales on the horizon and B747-400 freighter opportunities being
studied.
•
Aviation Services is expected to meet Budget in 2006
29
Shipping & Logistics
Baldur Guðnason - CEO Eimskip
Content – Shipping and Logistics
1
Financial Overview
2
Operational Overview
3
Outlook 2006
31
Financial overview – Shipping & Logistics
9 months
3rd Quarter
•
Operating Revenues where $364 million
•
Operating Revenues where $ 143 million
•
Operating Expenses were $320 million
•
Operating Expenses were $ 131million
•
•
EBITDA was $47 million
EBITDA 13%
•
•
EBITDA was $20 million
EBITDA 14%
•
•
EBIT was $29 million
EBIT 7,8%
•
•
EBIT was $12 million
EBIT 8%
32
Content – Shipping and Logistics
1
Financial Overview
2
Operational Overview
3
Outlook 2006
33
Vision and strategy
•
Eimskip is a unique company with three distinct
future visions:
–
–
–
•
•
To consolidate our position as a transport market
leader offering total services in the North Atlantic
through a network linking key ports in Europe, on the
US East Coast and in Canada.
To be the leading short sea supplier in the Baltic states
and Russia
To be a key international player in temperaturecontrolled cargo globally
Eimskip's key competence is organising and
running the most cost-effective transport network
available. The company has a strong market share
in North Atlantic sailings, which serves as a basis
for further efficiencies.
On this foundation, Eimskip aims to build
further growth and diversification into other
areas of transport services.
34
Eimskip has engaged in the following projects in third quarter:
•
May:
–
–
•
June:
–
•
acquired a 55% equity stake in Innovate Holdings
acquired a 70% equity stake in Kursiu Linija
• As of September, Eimskip holds 100% equity stake
All Faroese operations merged under Faroe Ship
August:
–
a bid to acquire all outstanding shares for Atlas Cold Storage Income Trust
• Offer has been extended to 6th of October
35
Eimskip's operations: Current value chain
• Total transport services – total solutions
• More than 90 years experience in shipping in the North Atlantic
• 88 operating bases in 17 countries in Europe, North - America and Asia
• 35 vessels – total deadweight approx. 130,000 gross tonnes
• Approximately 3,000 employees, thereof 2,000 outside Iceland
• Over 40 coldstores – storage capacity over 600 thousand tons
Empty
container
Plant/warehouse
Domestic
transport to
port
Export port
International
transport
Import port
Domestic
transport
from port
Plant/warehouse
Empty
container
Total solution
36
Atlas offer
•
Eimskip has made a takeover bid to acquire all of the outstanding trust units of Atlas
Cold Storage Income Trust which is listed at the Toronto Stock Exchange, the offer
expires 6 October 2006
•
CDN$7.00 cash is offered per Unit and the offer is fully financed
•
The aggregate acquisition cost, including assumed debt of the Trust, will be
CDN$574 million.
•
The offer price represents a 10.6x EBITDA multiple based on the Trust’s results over
the twelve months ended March 31, 2006
•
The combined operations of Eimskip and Atlas Cold Storage Income Trust will create
a network of more than 90 temperature controlled facilities around the world
37
Content – Shipping and Logistics
1
Financial Overview
2
Operational Overview
3
Outlook 2006
38
Outlook 2006
•
Performance according to management’s expectations for the third quarter 2006, which
is expected to continue in the fourth quarter
•
Eimskip is set on increasing it’s operations in the following markets
–
–
–
North-America
Baltic states and Russia
Asia
the future is based on a strong platform
home market
future markets
39
EBITDA Budgets 2004-2006 as published July 2004 compared
to the actuals 2004/2005 and budget 2006
Million ISK
2003
2004
2005
2006
Revenues
23.284
23.800
26.800
30.000
Expences
21.643
21.400
23.500
26.000
1.641
2.400
3.300
4.000
7,0%
10,1%
12,3%
13,3%
EBITDA
EBITDA / Revenue
5000
Million ISK
4000
3000
2000
1000
As Published before
As of Today
0
2003
2004
2005
Year
2006
40
Charter & Leisure Division
Magnus Stephensen – Deputy CEO Charter & Leisure
Financial overview – Charter & Leisure
•
9 months
– Operating Revenues $ 718 million
– Operating Expenses $ 744 million
– Total passengers transported 2,933
– EBITDA
$ -21 million
– EBITDA Ratio
-3%
– EBIT
$ -25,9 million
– EBIT Ratio
-4%
•
3rd quarter
– Operating Revenues $457 million
– Operating Expenses $ 436 million
– Total passengers transported 2,470
– EBITDA
$ 23,8 million
– EBITDA Ratio
5,2%
– EBIT
$ 20,5 million
– EBIT Ratio
4,5%
42
1
Financial Overview
2
Operational Overview
3
Outlook 2006
43
XL Leisure Group - Corporate Structure
XLLG Board of Directors
Chairman Magnus Thorsteinsson
XLLG
CEO Phil Wyatt
Deputy CEO Magnus Stephensen
CFO Halldor Sigurdarson
Airways
COO TBA
MD Jonathan Bousfield
AVION GROUP
Aviation
MD Neil Morris
Tour Operating
COO Michael Stoney
MD Geoff Medhurst
Charter & Leisure
United Kingdom
Shipping &
Logistics
France
Germany
Aviation
Services
USA
Australia
Excel Airways
Star Airlines
Star Europe
Xtra Airways
Air Atlanta Europe
Advent Air
Seat Brokering
Counter Cyclical
XL.COM
Travel City Direct
Freedom Flights
Kosmar
Excel Holidays
Aspire
Take Flight
XL LG Ireland
XL TO France
44
XLLG’s Regional Map
•Excel Airways Group
•Travel City Direct
•Kosmar Villa Holidays
•Star Airlines
•Crystal
•Heliades
•Star Europe
•* Xtra Airways operates in the US.
XLLG has 19% share in the company
•* Advent Air Ltd operates in Australia. XLLG
has 5% share in the company
45
Star Airlines
Star Airlines is the second largest charter airline in the French Market
Purchase price was 14 million EUR
Revenues for financial year 2005 was Euros 173 million and EBITDA Euros 1.9
900,000 passengers flown every year
Star Airlines operates charter flights to over 20 destinations in the Mediterranean Area,
Africa and the Middle East.
In addition to operating Charter flights, they also operate scheduled services to destinations
such as Lebanon, Tunisia, Maldives and Morocco.
46
Star Europe
Star Europe started operating in Germany in the beginning of May 2006
Estimated Investment of Euros 10 million to establish the operation in 2006. YTD
investment 2,5 MEUR or 75% under budget.
Estimated turnover for FY2006 Euros 30 million
Aircraft fleet 4 Airbus in Summer 2006, initial plan 2 aircraft
Commercial contracted: TUI, Hapagfly, Germanwings, Edelweiss Air, Turist Prishtina,
HellasJet, Volaré
Plan to add aircraft for S07
47
Counter cyclical markets – Xtra Airways
•
•
Avion has made an agreement with Xtra Airways, Nevada based airline, to lease part of Excel
Airways’ fleet during the Winter schedule, which is high season for Xtra Airways. Xtra will lease
three aircraft from Excel Airways over Winter 2006. Economic benefit to Excel is estimated at 6
MUSD.
Avion Group has a 19% share in Xtra Airways
48
Counter cyclical markets - Advent Air
•
•
•
•
Strategic joint venture with Advent Air, an Australasian airline group, parent of Skywest.
Avion’s subsidiaries, Star Airlines and Star Europe wil provide up to four Airbus A320 aircraft to
Advent Air’s subsidiary, Skywest during the Winter schedule which is Skywest’s peak season
This is contrary to Star AIrlines’ and Star Europe’s high season therefore, maximising utilization
of existing aircraft
Avion Group has purchased a 5% share in Advent Air
49
Kosmar Villa Holidays
Kosmar Villa Holidays, which specializes in travel to Greece and Turkey, was acquired in 3Q
Purchase price was $ 9.4 million
Turnover for the financial year 2005 was 154 million USD. PBT 1 MUSD.
Offers over 80 resorts in Greece and 12 resorts in Turkey
Kosmar Villa Holidays is the UK No.1 Greek Specialist and was voted Best Tour Operator to
Greece at the British Travel Awards
Licenced to sell over 250,000 holidays, under Excel ownership Kosmar will increase capacity
to 350 000 seats using direct penetration (XL.Com)
50
Crystal TO
Recently Star Airlines acquired French Internet B2B Tour Operator, Crystal, which has a
market leading position across the French internet market in long haul sales
Purchase price for 66% share was EUR 2.0 million
Turnover for the year 2005 was Euros 14 million and PBT 1 million EUR.
Crystal carried 32,000 passengers in 2005, a threefold increase over the previous year
Crystal’s most popular destination routes are: Dominican Republic, Mexico, French Indies,
Cuba, Maldivian Republic, Brazil, Tunisia, Morocco and Croatia
Largest clients are: Lastminute, Opodo, Expedia and Karavel
51
Heliades
•
•
•
•
•
Star Airlines has acquired a French Tour operator Heliades which specialises in travel to
Greece and Cyprus
Purchase price was EUR 7.7 million
Turnover for the financial year 2005 was Euros 80 million and PBT Euros 3.3 million
Heliades carried 120,000 passengers in 2005
On completion of the acquisition, XL Leisure Group, will be France’s fifth largest travel
organization
52
Excel Airways Group – UK Market Share
Excel Airways Group is the 5th largest
Passenger License Holder in the UK
Market after the acquisition of Travel
City Direct.
Position in 2006
Position in 2005
53
1
Financial Overview
2
Operational Overview - Regional update UK/ Fr/Germany
3
Outlook 2006
54
Contribution per pax
Aiways Divison
Sales margin on aircraft fleet on budget
Tour Operating Division
Sales per pax down on budget
Pax flown on budget
Growth in pax flown not enough to
compensate for shortfall in salesmargin per
pax
Excess capacity in market due to difficult
conditions
Overall Revenue Analysis
Actual revenue per pax (£)
Budgeted revenue per pax (£)
Pax flown
Contribution per Pax (£)
100
80
60
40
20
0
-20
-40
-60
-80
-100
Actual
Budget
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
344
325
Dec
383
394
Jan
264
267
Feb
313
307
Mar
297
285
Apr
362
376
May
253
263
Jun
222
243
Jul
318
333
Aug
328
342
Sep
278
281
Oct
267
294
Total
19,797
31,220
19,576
25,776
38,015
50,138
118,638
161,192
225,973
252,566
252,536
192,813
1,388,241
55
Estimated results for the year
•
•
•
•
•
•
•
•
Increased market share. Total number of seats sold on budget.
However, Mid summer demand lower than expected because of exceptionally hot summer
in UK. - Results in lower prices/contribution per seat then originally anticipated.
Many flights cancelled because of Terrorist threat & UK travel security alert, additional costs
related to passenger assistance and compensation
Terrorist incidents such as the ones in Turkey and Jordan
Main competitors have issued profit warnings, f.ex: MyTravel Group plc, Thomas Cook,
UK airlines have not performed according to expectations, f.ex: easyJet, British Airways
High fuel prices
Forecast for 4Q indicates performance under budget
56
Summary
Magnus Þorsteinsson, Chairman
Summary
•
Two out of three division perform in line with expectations for the year 2006
•
Charter & Leisure’s forecast for 4Q indicates performance below budget
•
Redelivery costs of aircraft more than planned in Air Atlanta Icelandic. 20 aircraft returned
during FY06.
•
Mid summer demand lower than expected due to terrorist threat and hot summer in UK
– Total number of seats sold on budget
– Lower prices per seat then originally anticipated
•
Avion Group is a leading international transport solutions group
•
Operations continue to be characterised by steady growth in operating revenues
58
Results compared to forecasts for 2006
Analysts forecasts for 2006 results- in million $
Landsbanki Kaupthing Bank 2006 forecast
Total operating revenues
2.044
2.010
1.926
EBITDA
162
161
165
EBITDA margin
8,0%
8,0%
8,6%
EBIT
83
89
105
EBIT margin
4,0%
4,4%
5,5%
Profit (loss)
54
61
Revised forecast
2.100
120
5,7%
53
2,5%
59