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Tam Apresentacao1 T08 20080513 Eng
 

Tam Apresentacao1 T08 20080513 Eng

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    Tam Apresentacao1 T08 20080513 Eng Tam Apresentacao1 T08 20080513 Eng Presentation Transcript

    • 1Q08 Results Presentation São Paulo, May 13, 2008
    • Information and Projection This notice may contain estimates for future events. These estimates merely reflect the expectations of the Company’s management, and involve risks and uncertainties. The Company is not responsible for investment operations or decisions taken based on information contained in this communication. These estimates are subject to changes without prior notice. This material has been prepared by TAM S.A. (“TAM“ or the “Company”) includes certain forward- looking statements that are based principally on TAM’s current expectations and on projections of future events and financial trends that currently affect or might affect TAM’s business, and are not guarantees of future performance. They are based on management’s expectations that involve a number of business risks and uncertainties, any of each could cause actual financial condition and results of operations to differ materially from those set out in TAM’s forward-looking statements. TAM undertakes no obligation to publicly update or revise any forwardlooking statements. This material is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Likewise it does not give and should not be treated as giving investment advice. It has no regard to the specific investment objectives, financial situation or particular needs of any recipient. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. 2
    • The domestic market grew 9% from January to April 2008 Domestic Market - Variation (vs previous period) 130 125 120 115 Current 110 period 105 Previous 100 period 95 Accum. market Accum. market Accum. market Accum. market 90 growth 2008 growth 2005 growth 2006 growth 2007 9% 85 19% 12% 12% 80 J F M AM J J A S ON D J F MA M J J A S O N D J F M A M J J A S ON D J F M A 2005 2006 2007 2008 Source: ANAC 3
    • The international market (among Brazilian carriers) is recovering, and grew 44% … International Market - Variation (vs previous period) Acum TAM 2007 71% 200 Acum TAM 2008 52% 180 Acum TAM 2006 Acum TAM 2005 41% 160 40% TAM 140 Market 120 Previous 100 period 80 Accum. market Accum. Market Accum. market Accum. market decrease 2006 growth 2005 decrease 2007 growth 2008 60 30% 7% 5% 44% 40 J F M AM J J A SON D J F MAM J J A SO ND J F MA M J J A SO ND J F MA 2005 2006 2007 2008 Source: ANAC 4
    • …with higher growth anticipated for Brazilian carriers due to the unbalance in the bilateral agreements % international traffic 100% 80 53.3% 53.8% 65.0% 71.5% 60 40 Intl 46.7% 46.2% carriers 20 35.0% 28.5% Brazilian carriers 0 2004 2005 2006 2007* * estimates 5
    • We are both domestic and international market leaders TAM’s Domestic Market Share* TAM’s Domestic Market Share* 50,0% 49,3% 48,9% 48,0% 47,1% 43,5% 35,8% 33,0% 2003 2004 2005 2006 2007 Jan - Apr 2008 1Q08 Apr/08 TAM’s International Market Share* – Among Brazilian carriers TAM’s International Market Share* – Among Brazilian carriers 72,4% 68,8% 67,5% 67,7% 37,5% 18,8% 14,3% 12,0% 2003 2004 2005 2006 2007 Jan - Apr 2008 1Q08 Apr/08 Source: ANAC 6 * RPK – Revenue passenger kilometer
    • 1Q08 Highlights (1/2) Steady strengthening of our fleet Delivery of 1 A320 (versus 4Q07) Redelivery of 2 F100 (versus 4Q07) Firm contract for acquisition of 22 A350 XWBs, four A330-200s and 20 A320 aircraft Operational efficiency 12.6 block hours per aircraft per day 13.6 block hours per aircraft per day, considering only the operating fleet Average total load factor of 73.2% in 1Q08 Agreements: Beginning of code-share flights with LAN Peru and Combination of TAM’s Loyalty Program with Lufthansa’s Miles & More 7
    • 1Q08 Highlights (2/2) IOSA certificate (IATA Operational Safety Audit) renewed Strengthening of our network Conclusion of 30 business agreements (SPAs) reaching 64 airline partners abroad Partnership with NHT (Airline Company from Southern Brazil) Expanded Conveniences to our costumers Easy Web Check-in expanded for international destinations International website launched - www.tamairlines.com Share Buy-back program 153 thousand shares bought-back 8
    • Our gross revenue increased 23%... Domestic passenger revenue grew 21% Gross Revenue (R$ M) 23% RPK increased 15% 2,500 2,347 ASK increased 14% 199 214 2,000 1,913 International passenger revenue 158 157 grew 21% 613 1,500 506 RPK increased 61% 1,000 ASK increased 50% 1,321 1,093 500 Others Cargo revenue grew 37% Cargo Int. Pax Other revenue grew 26% Dom. Pax 0 1Q07 1Q08 9
    • ...but total RASK reduced 2%... 1Q08 vs 1Q08 vs 1Q08 vs 1Q08 vs R$ Cents 1Q07 4Q07 1Q08 1Q07 4Q07 1Q08 1Q07 4Q07 1Q07 4Q07 RASK total ¹ ² 16,72 17,87 16,38 -2,1% -8,3% RASK scheduled domestic² 14,54 16,69 15,37 5,7% -7,9% Domestic load factor - % 69,4 70,4 69,9 0,5 p.p. -0,5 p.p. 22,00 24,90 23,09 5,0% -7,3% Yield scheduled domestic³ RASK scheduled international² 14,07 11,26 11,39 -19,0% 1,2% International load factor - % 71,3 71,0 76,9 5,6 p.p. 5,9 p.p. 19,78 15,88 14,82 -25,1% -6,7% Yield scheduled international³ Yield scheduled international³ 9,65 8,96 8,47 -12,2% -5,4% (USD cents) 1 Includes charter, cargo and Other revenues, net of taxes 10 2 Net of taxes 3 Gross of taxes
    • ...while total CASK increased 2%... Total CASK BR GAAP - R$ cents 1Q08 vs 1Q07 20 16.25 15.92 15 CASK 2.1% 10 CASK excl-fuel -5.5% 5 0 1Q07 1Q08 11
    • ...reducing the spread (RASK-CASK)... RASK/CASK (R$ Cents) BR GAAP 20 16.72 16.38 16.25 15.92 15 10 5 CASK RASK 0 1Q07 1Q08 Spread 0.80 0.13 EBIT 4.8% 0.8% Margin 12
    • ...impacting our margins in BR GAAP... BR GAAP EBITDAR - R$ M EBIT - R$ M Net Income - R$ M 400 100 80 88 -20% -80% -96% 340 80 59 300 60 272 60 200 40 40 19% 100 20 5% 18 12% 20 3% 0,1% 0,8% 3 0 0 0 1Q07 1Q08 1Q07 1Q08 1Q07 1Q08 Margin over net revenue 13
    • ...and in US GAAP... US GAAP EBITDAR - R$ M EBIT - R$ M Net Income - R$ M 146 400 150 150 -14% 138 -43% -66% 331 300 283 100 100 83 200 47 50 50 8% 18% 8% 100 13% 4% 2% 0 0 0 1Q07 1Q08 1Q07 1Q08 1Q07 1Q08 Margin over net revenue 14
    • ...reducing our earnings per share Earnings per share Earnings per share US GAAP (R$) BR GAAP (R$) 0.92 -66% -96% 0.39 0.31 0.02 1Q07 1Q08 1Q07 1Q08 15
    • The main difference between BR and US GAAP is the accounting treatment of aircraft leasing 44 aircrafts are 44 aircrafts are Net Profit Reconciliation reclassified as capital to US GAAP reclassified as capital leases as per SFAS nº 13 leases as per SFAS nº 13 57 60 6 47 40 -19 20 3 0 BR GAAP Leasing Income Others US GAAP Taxes 16
    • Our balance sheet remains solid R$ million - BRGAAP 2008* 2007 2006 2005 2004 Cash 2,226 2,607 2,453 995 297 Short-Term Debt 865 1,005 363 216 204 Long-Term Debt 1,365 1,345 895 425 399 Total Debt 2,230 2,350 1,258 641 603 Shareholder's Equity 1,489 1,527 1,449 760 191 Capitalization 2,855 2,872 2,344 1,185 590 Aircraft and flight equipment leases 5,949 5,976 5,032 4,389 4,557 Total Debt Adjusted 8,179 8,326 6,290 5,030 5,160 Total Capitalization Adjusted 8,804 8,848 7,376 5,574 5,147 Debt / Capitalization 78% 82% 54% 54% 102% Adjusted Debt / Adjusted Capitalization 93% 94% 85% 90% 100% Adjusted Net Debt / Adjusted Capitalization 68% 65% 52% 72% 94% * LTM 17
    • Even with the appreciation of the Real, revenue in foreign currencies increased Revenue Approximately 50% (Passenger + Cargo) Approximately 50% of our costs of our costs 100% (including fuel) are (including fuel) are exposed to foreign exposed to foreign 33% 34% 80 currencies currencies 60 40 67% 66% 20 International Domestic 0 1Q07 1Q08 ASK proportion International 33% 39% Domestic 67% 61% Dollar exchange -15% 2.050 1.749 rate 18
    • Stocks performance since follow-on 350% 250% 137% 150% 85% 74% 50% 0% -50% IPO Follow-on Mar/31/2008 Jun/14/2005 Mar/10/2006 TAMM4 TAMN IBOV DJBR20 www.tam.com.br/ir 19
    • We have a positive outlook for 2008 2008 Guidance Actual - 1Q08 10.6% Domestic market demand growth from 8% to Market 12% (in RPK terms) Maintain leadership in both domestic and 50.0% dom international markets 67.7% intl ASK growth of Domestic 14% 14.2% International 40% 49.7% TAM Average load factor at approximately 70% overall 73.2% Reduction of 7% in total CASK ex-fuel in BR GAAP -5.5% yoy Three additional international destinations or --- frequencies in 2008 20
    • Our growth plan is supported by a flexible fleet plan Total fleet 2 2 147 150 2 141 8 2 136 4 2 4 128 123 22 4 22 4 20 18 16 100 115 113 110 104 50 101 0 2008 2009 2010 2011 2012 B777 B767 Airbus wide-body Airbus narrow-body 21
    • We signed a commitment To be the preferred airline company Excellence Excellence Excellence in Technical- in in Service Operational Management PASSION FOR AVIATION PASSION FOR AVIATION 22
    • 1Q08 Results Presentation São Paulo, May 13, 2008 23