Webconference ingles   4 t11
Upcoming SlideShare
Loading in...5
×
 

Webconference ingles 4 t11

on

  • 1,055 views

 

Statistics

Views

Total Views
1,055
Views on SlideShare
562
Embed Views
493

Actions

Likes
0
Downloads
7
Comments
0

1 Embed 493

http://tam.riweb.com.br 493

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Webconference ingles   4 t11 Webconference ingles 4 t11 Presentation Transcript

  • 4Q11 ResultsPresentationFebruary,15 2012invest@tam.com.br www.tam.com.br/ir
  • Warning - Information and Projection This notice may contain estimates for future events. These estimates merely reflect the expectations of the Company’s management, management and involve risks and uncertainties. The Company is not responsible for investment operations or uncertainties 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 S.A. ( TAM Company ) forward-looking 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 forward looking 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 fi ll iti l t d financial i t i l instruments. Lik i it d t Likewise does not give and should not b t t d as giving t i d h ld t be treated i i 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
  • 1. Highlights 2. LATAM 3. Financial Results Agenda 33
  • 1 Hi hli ht 1. Highlights4
  • With focus on profitability, we revised our fleetplan Former Fleet Plan Operational  Narrow Body  Fleet 171 179 159 164 127 36 124 32 34 32 119 132 137 143 107 127 104 98 2012 2013 2014 2015 85 74 74 Revised Fleet Plan 65 169 176 157 162 35 36 33 33 124 129 134 140 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2012 is the first of ten years , that the 2012 2013 2014 2015 domestic fleet reduces compared to the previous year Narrow Body Wide Body5
  • We believe in a strong, growing and profitablemarket in 2012 Guidance for 2012 Min. Max. Domestic Market Demand Growth (RPK) 8% 11% Supply growth(ASK) 1% 3% Domestic 0% 2% International 1% 3% Load Factor 76% 78% Domestic 72% 74% International 83% 85% Average WTI USD 95 Assumptions Average US dollar rate 1.746
  • Passenger demand will continue to grow, and there isspare capacity at off peak hours Although our supply will grow up to 2%, we have spaces on our Load factor* X Hour aircraft to absorb the increasing demand 73% Peak Peak Hours Hours 71% 69% 67% 65% 63% 61% 59% 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Even with the increase in the load factor outside of peak hours, we believe the yields will follow the recovery trend started in 20127 *Domestic flights at weekdays in 2011
  • The load factor of the Brazilian market issignificantly lower than the North American Domesic Load factor Brazil x United States 85% 80% 75% 13 p.p. 70% 65% 12 p.p. 60% 55% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 USA Brazil We believe in the improvement of airports, due to the Governments determination to conduct privatization in addition to the budget investments on PAC and U i d Union b d t budget8
  • Highlights of our business units •Yields recovery, looking for offsetting higher costs y g g g TAM expected for 2012 Linhas•Consumidor Moderno magazine award Aéreas•Record in sales in the domestic andinternational markets •Increased from 11 to 26 TAM the number of partners in p Multiplus Cargo the coalition in 2011 •Capillarity via Redecard•EASA certification for line EASA tifi ti f limaintenance•Focus on independent management •More than doubled the•LEAN Method number of stores in 2011. We•Certification for ATR-72 TAM TAM ended th year with 160 units d d the ith it•Preparation for certification of MRO VacationsEmbraer aircraft9
  • 1 Destaques 1. D t 2. LATAM10
  • Status of the deal Aug 13, 2010: We March 1, 2011: Antitrust Brazil Nov 15, 2011 Jan 18, 2012 announced ANAC approved the •SEAE (Ago 2011) F4 SEC filing Edital CVM filing the intention to proposed corporate •SDE (Ago 2011) (preliminary (preliminary combine with LAN structure •CADE (Dec 2011) version) version) Jan 18, 2011: LAN Antitrust Europe Antitrust Chile Shareholders and TAM signed •Germany(Jul 2011) •TDLC (Sep 2011) Meeting binding agreements •Italy (Aug 2011) •Supreme Court •LAN (Dec 2011) •Spain(Oct 2011) p ( ) •(pending) (p g) •TAM (Jan 2012) TAM11
  • We will have synergies between US$ 600 million and US$ 700 million annualy Revenue: Cargo ~$120-125M, Pax ~$240-285M Cost: ~$240-290M Lower bound Synergy Value Synergy Value Upper bound source US$ Millions Rationale source US$ Millions RationaleCargo 120 125 New service, sharing of best Airports 30 35 Consolidation of functions in practices overlapping stationsNetwork Improved access to joint hubs Leveraging economies of 75 85 Procurement 70 100 scale in contractsrelevance and combined network appealNew and Combined network creates Streamlining of corporateincreased 70 80 new city pairs and increased Corporate 20 20 overhead and some functionsconnectivity serviceNew Combined network supports Efficiencies of common IT 45 45 new flights and hubs IT 65 70flights platformsOther Includes consolidation of Leveraging economies andpassenger 35 50 partner airline contracts and Maintenance 20 25 efficiencies of scalerevenue increased utilizationFrequent Consolidation of the Efficiency of combined sales 15 25 programs and sharing of best Sales 35 40flyer efforts practices12
  • 3 Fi 3. Financial R lt i l Results13
  • Multiplus HighlightsOperating highlights Item 4Q11 vs 4Q10 vs 3Q11 Points issued 20.6 billion +28.4% +3.2% Points redeemed d d 17.4 billion b ll +126.2% +39.9% Breakage ratio 24.1% +150bps +10bpsFinancial highlightsFi i l hi hli ht Item 4Q11 vs 4Q10 vs 3Q11 Gross Billings of points Gross Billings of points R$433.6 million R$433 6 million +33.3% +33 3% +9.1% +9 1% Net Revenue R$398.3 million +93.8% +23.9% EBITDA R$61.0 million +46.2% 46.2% ‐21.9% 21.9% (15.3% margin) Adjusted EBITDA R$92.9 million +55.1% +12.8% (23.2% margin) Net Income N tI R$70.9 million R$70.9 million +63.8% 63 8% +38.1% 38 1% (17.8% margin) 1414
  • Multiplus — Strong Growth Members Number of partners Million 9,4 8,9 Number of partners 190 8,3 8,6 86 7,6 8,0 166 161 168 6,9 7,2 151 125 133 121 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Gross Billings “Non-air” redemptions R$ million 434 397 in million of points 564 340 355 325 425 300 264 230 248 73 89 101 33 57 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 NOTE: it includes points issued before 2010 (TAM’s inventory)15
  • Yield and RASK grew both in annual and quarterlycomparison Domestic Passengers ASK, RPK and Load Factor Passenger Revenue - R$ Milli P R Million 2% ASK 4% 11,871 12,232 12,168 -1% 5% 1% 1,581 1,561 1,641 RPK 8,227 8,278 8,225 1% Load 4Q10 3Q11 4Q11 4Q10 3Q11 4Q11 Factor 69% 67% 68% Yield - R$ Cents RASK - R$ Cents 1% 3% 5% 5% 12.7 12.1 12.7 19.2 19.0 19.8 4Q10 3Q11 4Q11 4Q10 3Q11 4Q1116
  • In the annual comparison, international passengerrevenue increased by 21% and the RASK 15% in dollars International Passengers ASK, RPK and Load Factor Passenger Revenue - Million 6% 29% ASK R$1,025 R$1,071 7,820 4% 7,619 7,209 R$833 $ 4% 6% 21% RPK 6,541 6,089 5,749 7% U$625 5% U$595 U$490 Load 4Q10 3Q11 4Q11 4T10 3T11 4T11 Factor 80% 84% 80% Yield - Cents RASK - Cents 21% R$14.1 R$ 17.6 R$13.1 22% R$ 15.7 R$11.6 R$ 14.5 12% Avg US Dollar g 7% 6% 14% 15% 10% U$ 9.6 2% U$ 9.8 1.80 U$6.8 U$8.0 2% U$7.8 U$ 8.5 1.70 1.64 4T10 3T11 4T11 4Q10 3Q11 4Q11 4Q10 3Q11 4Q1117
  • We recorded an EBIT margin of 8.3% In Reais 4Q11 4Q10 4Q11 vs  3Q11 4Q11 vs  4Q10 3Q11 Net Revenue (million) 3,579 3,225  11% 3,319 8% Operating Expenses (million) 3,281  3,006  9% 2,766  19% EBIT (million) EBIT ( illi ) 298 218 37% 553 46% ‐46% EBIT Margin 8.3% 6.8% 1,6p.p. 16.7% ‐8.3p.p. EBITDAR (million) 612 507 21% 852 ‐28% EBITDAR Margin 17.1% 15.7% 1,4p.p. 25.7% ‐8.6p.p. Financial Result + Others* (million) (78) 66 ‐ (1,382) ‐ Net Results (million) 96 150 ‐36% (620) ‐ Total RASK (cents) 18.1 16.9 7% 16.6 9% CASK (cents) 16.6 15.8 5% 13.8 20% CASK ex‐fuel (cents) CASK ex fuel (cents) 10.4 10 4 10.9 10 9 ‐5% 9.7 97 7% CASK USD (cents) 9.2 9.3 ‐1% 8.4 9% CASK USD ex‐fuel (cents) 5.8 6.4 ‐10% 5,9 ‐3%*Others includes “Movements in fair value of fuel derivatives” and “Gains (losses) on aircraft revaluation18
  • Liquidity and debt profile Adequate debt profile Liquidity Position R$ Milhõ Milhões 3,000 3 000 2,607 2,568 2,567 2,700 2,500 2,453 2,145 2,400 1,914 2,000 2,100 1,500 1,800 1 800 995 1,500 1,000 1,200 500 900 0 600 2005 2006 2007 2008 2009 2010 2011 300 0 Cash 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Adjusted Net Debt / EBITDAR Leasing on the balance sheet Debentures, bonds and others 8.0 Debt mix by currency 6.3 6.5 R$ 6.0 5.6 10% 4.3 4.0 40 3.8 3.8 2.1 2.0 90% 0.0 US$ 2005 2006 2007 2008 2009 2010 2011 Obs.1: Net Debt Adjusted includes annual operating leases x 719 Obs.2: Debt is considered in US GAAP for 2005 and 2006 and in IFRS since 2007
  • WTI Hedge We understand that our coverage level and price contracts are appropriate to business needs and market reality 70% USD 150  60% USD 130  USD 130 50% ge Level USD 110  Prices 40% Stike P Coverag 30% USD 90  20% USD 70  10% 0% USD 50  1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Minimum Maximum Current Position Average Strike According to our hedging policy defined by policy, the risk committee20
  • 2011 Guidance Guidance for Actual 2011 2011 Domestic Market Demand growth (RPK) 15% - 18% 16% Supply growth (ASK) 10% - 13% 9,7% Domestic 10% - 14% 9,5% International 10% 10,1% Load Factor 73% - 75% 73,4% Domestic 67,5% - 70% 68,8% International 83% 81,5% 81 5% New international frequency or destination 2 3 CASK ex-fuel -5% -2,4% Average WTI USD 93 USD 95 Assumptions Average US dollar rate R$ 1,78 1,67 Average WTI in R$ R$ 166 R$ 15921
  • Excluding one time effects, we reduce the CASKex-fuel by 4.3% 4 3%0%-1 Impact of salary readjustment higher than inflation-2 0.2% Differences of the maximum -2.4% Adjust of the takeoff weight average fleet PIS and Adjust from-3 referring to f i t COFINS credit -0.7% previous years the lower growth of ASK the line airport fees according to -0.5% our estimates Expenses related Impact of new 4-4 values of domestic -0.5% 0 5% to the merger g -0.2% fees in force since mar/2011 -0.2% -4.3%-5 Personnel Airports Infraero Dilution LATAM Published PIS and Adjusted CASK Cofins fees taxes effects CASK variation* credit variation22 * Excludes the impact from the additional tariff reversal.
  • In 2012 we remain focused in cost control andreduction Total Costs Fixed Variables Third-Party Passengers Overhead Aircraft Expenses Services expenses • Implementation of • Contracts • Reduction of fuel • Reduced spending internal renegotiation with consumption on airport benchmarks to suppliers (reduction of weight contingencies reduce expenses on board, • Implementation of compressor washing, washing • Reduced spending • Management targets for law firms use of external on materials at study of the sources on the airports source of the • System ground) • Reduce costs with spending modernization • Optimization of on-board service b d i • Consultancies spare parts with suppliers reduction purchasing and inventory management23
  • Teremos sinergias entre US$ 600 milhões e US$ 700 milhões anuaisReceitas: Carga US$120-125 Milhões, Pax US$240-285 Milhões Custos US$240-290Milhões Fonte da Valor Fonte da Valor sinergia US$ milhões Justificativa sinergia US$ milhões Justificativa Carga 120 125 Novos serviços, compartilhamento Aeroportos 30 Consolidação de funções em de melhores práticas aeroportos em que ambas operam Q&A Maior acesso a hubs conjuntos e Relevância Aproveitamento de economias de 75 85 atratividade da rede combinada Procurement 70 100 da rede escala em contratos Rede combinada cria novos pares Racionalização dos gastos Nova e maior 70 80 de cidades e mais serviços Corporativo 20 corporativos gerais e algumas conectividade funções Novos A combinação da rede suporta 45 45 TI 65 70 Eficiências em plataformas comuns voos novos destinos e hubs Outras receitas Incluindo a consolidação de Manutenção 20 Aproveitamento de economias de 50 contratos com companhias aéreas 25com passageiros 35 escala e de eficiências associadas e aumento da utilização invest@tam.com.br Passageiro www.tam.com.br/ir e Consolidação dos programas Eficiência com esforços de vendas 15 25 Vendas 35 40 frequente compartilhamento das melhores combinados práticas 2424
  • 25