1. The Leading Ultra-Low-Cost Airline Serving
Mexico and the US
Banco Santander - 19th Annual Latin American Conference
January 2015
2. Disclaimer
2
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
of 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
otherwise 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.
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.
3. Third quarter 2014 results indicate positive reversal of
trend
Strong balance sheet and liquidity: Cash of 14% of LTM revenues and net debt
negative (or net cash position) of Ps.922 million, well funded for future growth
Focused on international growth and domestic capacity discipline: 3Q14 Domestic
ASMs 3% growth, resulting in yield stabilization, while international ASMs growth 18%,
responding to stronger fare environment.
Cost control and strong profitability: 3Q14 CASM(1) at USD 8.9 cents, lowest unit
cost producer in the Americas. EBITDAR margin of 27% and EBIT and net income
margin of 9%
Unit revenue improvement: 3Q14 TRASM increased 1% y-o-y, with stable yield and
non-ticket revenues expansion
Non-ticket revenues growth: 3Q14 Non-ticket revenues ex-cargo per passenger
increased 58% y-o-y (44% including cargo). Ramp-up of new products and services,
while increasing customer acceptance
Notes:
(1) Converted to USD at an average exchange rate corresponding for the period, $13.1114 Ps.
3
4. Fourth quarter 2014 demand and traffic results continue to
be encouraging
4
4Q14 Traffic results encouraging: Discipline maintained in domestic market and growth in international market
• October and November traffic performed in line
• December traffic saw an improving performance
- Load factor stable at 82.1% and counter flows managed well
- International demand outperformed the rest of the network
- 992k booked passengers in December (+13.1% y-o-y)
Unit revenue indicators (TRASM) for 4Q14 and booking curve continue to be strong, in particular during December
• Base fare and yield sequential recuperation, y-o-y growth
• Non ticket revenue per passenger sequential growth
- Ancillary combos were successfully launched
- Seat selection increasing uptake
- V-Club reached +100K memberships and +250K members
- Cargo operation margin accreditive
New projects in 4Q14
• New mobile application was launched in December (IOS)
- Manage promotions/discounts
• Bus switching campaign resulted in a great success:
- Education and trial plans went viral
- Reached 20M impacts in social media and became trending topic in Twitter: 8.4M impact
Cost discipline and profitability
• CASM under control despite pressure from the Mexican peso depreciation, offset by tailwind from declining fuel
prices supporting margin expansion (though there is a pricing lag for jet fuel in Mexico)
5. We have been executing important improvements to our
network and keeping a solid operational performance
5
Notes:
(1) Market share of operated routes in MTY; figures updated as per DGAC report as of November 2014
Network diversification and tactical capacity re-deployment
• Adjustments have yielded better results
- More international ASMs (+14% during 4Q14 y-o-y)
- Less concentrated in Tijuana and Guadalajara with a shift to new markets such as Monterrey is
working well
• Volaris increased network overlap with the three main domestic competitors
- In 2014 we launched 40 routes: 28 domestic and 12 international
During 4Q 2014, Volaris increased capacity and opened 20 new routes
- International capacity already represents 31% (December) which provides an increasing natural
hedge against currency devaluation
- Monterrey passenger market share already at 17%(1) despite collective expansion of all
competitors
Operational performance
• 4Q14 on time performance (84.7%), block hours (12 hrs.), maintenance A/c reliability (99.67%)
• Up gauge to A320 slot operation at Mexico City airport
6. Looking into 2015, managing disciplined growth
6
Macroeconomic and other tailwinds /headwinds
• Improved GDP growth in Mexico and strong US GDP growth
• Declining oil prices
• Volatility of the Mexican peso / strong US dollar
2015 capacity guidance
• ASMs expected to grow 10-12% y-o-y
-Domestic growth between 2-4% and international growth between 33-36%
Fleet
• Five net aircraft additions
• Retrofit in 1H15 of its A320 fleet and new deliveries configuration to add
more seats per aircraft (179)
• Two A321 deliveries in 2Q15 with 220 seats (ripe for Mexico City slot
operation)
7. Sacramento
Oakland
Los Angeles
San Diego
Tijuana
San Jose
Fresno
Mexicali
Las Vegas
Chicago (Midway/O’Hare)
Denver
OrlandoHermosillo
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.
Ciudad Juárez
Volaris – Mexico’s Ultra-Low-Cost Carrier’s snapshot at
30,000 feet
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
Source: Company data, SCT-DGAC
Serving to 54 destinations throughout Mexico and the US
2008 2013 CAGR
Unit cost
(CASM ex-fuel;
cents, USD)(1)
5.5 5.5 0.0%
Passenger
demand
(RPMs, bn)
3.2 9.0 +23.0%
Aircraft
(End of Period)
21 44 +15.9%
Passengers
(mm)(2) 3.5 8.9 +20.5%
Operating revenue
(mm, USD)(1) 397 1,018 +20.7%
Adj. EBITDAR
(mm. USD)(1) 67 220 +26.8%
Adj. ROIC (pre-
tax)
11.0% 15.1% +4.1pp
Volaris’ destinations
Phoenix
San Luis Potosí
Ciudad Obregón
Veracruz
San Antonio
Ontario
Villahermosa
Tampico
Portland
Domestic market share(3)
Sept. LTM Int.
Pax Revenue
27%
Tapachula
Huatulco
Sept. LTM Dom.
Pax Revenue
73%
Fort Lauderdale
Reno
12.2%
20.7% 22.7% 23.1%
2008 2012 2013 Nov YTD
2014
Houston
7
8. Volaris’ low base fares stimulate demand and drive
continuing growth
Stimulation
of
demand
More
ancillary
revenue
More capacity
Lower base
fares
Resilient ULCC business
model driving high,
profitable growth
Lower cost
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
8
9. Notes;
(1) Converted to USD at an average exchange rate corresponding for the period, $13.1167 Ps.
(2) Figures updated as per DGAC report as of June 2014.
Source: Company data, data airlines public information, DGAC reports, MI DIIO
Volaris’ ULCC business model is clearly differentiated from legacies,
hybrids and other LCC’s
Aeromexico Interjet VivaAerobus Volaris
CASM Sept. YTD 2014
(cents, USD)(1)
13.9 13.3 9.7 9.0
Low ticket prices Sept. YTD 2014 ≈
Average Fare (USD)(1)
165 106 45 87
Non-ticket rev. exc. Cargo Sept. YTD 2014
Non-ticket rev. exc. Cargo per pax (USD)(1)
6.8 9.4 23.4 18.5
Modern & uniform fleet
Average age fleet (years) 9.8 (2)
6.0 (2)
20.6 (2)
4.3
High daily utilization
Block hours per day 11.4 8.7 8.4 12.4
Other/ eg. (No GDS) ≈
Legacy < Hybrid/LCC < ULCC
9
10. 5.3
11.9
9.9
9.1
8.0 8.5
6.5
5.5
8.4
5.7 5.9
9.5
3.6
5.5
5.2
4.8
5.5 4.7
4.1
4.2
4.2
4.6 3.9
4.7
Avianca LatAm Aeromexico Gol Interjet Copa VivaAerobus SouthWest Allegiant Spirit DCOMPS
Volaris has a best-in-class unit cost structure
Denotes fuel
cost per ASM
Lowest unit cost in the Americas(1)
CASM and CASM ex-fuel (September YTD 2014, USD cents)(3)
Latin American Carriers
US Network
Carriers(2)
Best-In-Class
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, $13.1167 Ps.
Source: Company data, Airlines public information
9.0
17.4
15.2
13.9 13.6
10.6
9.7
10.6
10.0
15.1
10
13.3
12.6
11. 20.6
10.4
8.8
5.8
4.2
VivaAerobus Mexican
average
Aeromexico Interjet
12.4
11.4
8.7 8.4 8.8
8.1
Aeromexico Interjet VivaAerobus Global
A320
Global
A319
Young, fuel efficient fleet (4)
Interjet
Focus on fleet utilization and efficiency drives higher revenue
and lower cost: A320 retrofit and A321 arrival(1)
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) Block hours per day calculated as ((Total block hours for the period / Monthly average number of aircraft) / Number of days for the period)
(4) Aeromexico and Interjet represent domestic competitors of Volaris
(5) Fleet average age updated as per DGAC report as of June 2014
Source: Company data, airlines public information, DGAC, Airbus, miDiio
Load factor
(Sept. YTD 2014)
Implied passengers
per aircraft(2)
82%
72%
80%
149
108
128Interjet A320
150 seats per aircraft
Aeromexico 737-800
160 seats per aircraft
High daily utilization(4)
Volaris A320
179 seats per aircraft
High density configuration(3)
Aeromexico
Block hours per day (September YTD 2014) (3) Average age (Yrs, September YTD 2014)
(5) (5)(5)
11
VivaAerobus 737-300
148 seats per aircraft
VivaAerobus 81% 120
(5)
12. 145
110
Bus
Bus passenger shift to air travel
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)
Air travel time and cost savingsSignificant upside for air travel
Fare (USD)(2,3)Travel time (Hrs)
Mexico City – Tijuana
(1)
Total air travel trips
(mm)
Total bus trips
(mm)
40.5
4.0
Bus Air
36.5 hours less
• 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
24% cost savings
30
30
60
2013
International
Domestic
2013
First, economy
and other
2,781
2,706
75
(1)
12
13. • Excess
baggage
• Checked
bag limited
to 1 piece
(25kgs.)
• Carry-on
(oversized)
• Strollers
• Priority
boarding
• Check-in
Unbundled strategy: “Tú decides” – You decide
• V-Club
subscription
(108k active
suscriptions)
• Co-branded
credit cards
(101k active
cardholders)
• Manage my
booking
• VEmpresa
• 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
• Packages
•Additional forms
of payment
Notes:
(1) V-Club & Co-branded credit cards figures as of December 31th,2014 13
14. Acceleration of Volaris’ non-ticket revenues
Notes:
(1) Converted to USD at an average exchange rate corresponding for the period
Source: Company data, Airlines public information
Increased contribution of non-ticket revenue to the top line
Non-ticket revenue per passenger
Volaris (USD)(1)
Best-in class US LCC’s
(3Q14, USD)
Contribution
to Operating
Revenue
7% 7% 9% 13% 14%
2009 – 2013 CAGR: +57.6%
2009 – 2013 CAGR: +24.0%
Non-ticketrevenue
(USDmm)(1)
45
54
Allegiant Spirit
18%
24
39
68
115
148
181
2009 2010 2011 2012 2013 LTM Sep 14
7.0 8.9
11.4
15.5 16.5
19.0
2009 2010 2011 2012 2013 LTM Sep 14
14
15. 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 August 2014.
Source: Company data and DIIO MI Market Intelligence for the Aviation Industry
48 48
41 40
38
13
0
10
20
30
40
50
99
48
32
0
25
50
75
100
USA (Leisure) USA (VFR) CAM, SAM,
Canada,…
Attractive growth opportunities in Mexico and
throughout the Americas
Domestic – growth potential of nearly 160
routes (4)
International – growth potential of about 154
routes (4)
(3)
Number of routes(1)
Number of routes(2)
Routes served Growth potential
Capacity – ASMs
(Year-over-year change) 4Q14 FY14 FY15E
Total 3.0% 8.5% 10% - 12%
Domestic -0.7% 5.8% 2% - 4%
International 14.0% 17.2% 33% - 36%
15
16. Substantial growth opportunity in the US-Mexico VFR /
leisure travel market
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
Orlando
0.1mm
San
Francisco
0.7mm
San Jose
0.4mm
San
Diego
0.9mm
Denver
0.5mmSacramento
0.3mm
Chicago
1.5mm
Fresno
0.5mm
Los Angeles
4.6mm
Las Vegas
0.4mm
San
Bernardino
1.7mm
Phoenix
1.2mm
Tucson
0.3mm
Albuquerque
0.2mm
El Paso
0.6mm
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
San Benito
0.3mm
Mission
0.6mm
Tampa
0.1mm
Portland
0.2mm
Miami
0.1mm
16
17. 17
23 26
36
Dec '11 Dec '12 Dec '13 Dic '14
39
50
78
93
Dec '11 Dec '12 Dec '13 Dic '14
Positive expansion, managing capacity and diversification of
routes
Notes:
(1) Capacity measured by ASM’s
Source: Data company, SCT-DGAC, DIIO MI
Percentage of Volaris’ 1Q15 domestic capacity competing with:
Solid expansion for Volaris
A significant portion of our capacity faces no competition(1)
Volaris flown domestic routes Volaris flown international routes
More than 2x More than 1.5x
17
67% 66%
30%
20%
Aeromexico Interjet Vivaaerobus Non-competed
19. 20 18 17
12
24
23 22
19
9 14
23
22
3
FY13 FY14 FY15 FY16
A319 A320 A320 w/Sharklets A320 NEO w/Sharklets A321 w/Sharklets
A higher density fleet generates more incremental capacity
with fewer additional aircraft
Projected fleet under current contracts (number of aircraft)(1)
Notes:
(1) Net fleet after additions and returns
(2) Figure calculated as of the end of September 2014
Source: Company data
18%
29% 47%
% % of year-end fleet
w/Sharklets
Backlog of 64 Aircraft to support growth(2)
Seat growth 7% 13% 14%
50
55
59
44
19
20. 28%
20%
14%
10%
0%
10%
20%
30%
Copa GOL LATAM
Solid financial performance
Note:
(1) Converted to USD at an average exchange rate corresponding for the period
Source: Company data, airlines public information
Operating revenues(1) Adj. EBITDAR(1)
Operating Revenues CAGR 2009 - 2013 LTM September 2014 Adj. EBITDAR margin
17.5%
27.9%
18.7% 17.8%
0.0%
10.0%
20.0%
30.0%
Copa Gol AM
374
536
714
887
1,018 1,013
0
200
400
600
800
1,000
1,200
2009 2010 2011 2012 2013 LTM
Sep 14
(USDmm)
117
140
100
188
220
178
0
50
100
150
200
250
2009 2010 2011 2012 2013 LTM
Sep 14
(USDmm)
20
21. 13.7%
32.2%
19.3%
7.7%
5.9%
Copa GOL AM LatAm
LTM Liquidity – Cash and Equivalents / Op.
Revenue
Solid balance sheet and liquidity, well funded for growth
Note:
(1) Principal + interest debt
(2) Includes IPO Smiles program proceeds
Source: Company data, Airlines public information
• IPO provided sufficient liquidity / capital
for growth over the next years
• Minimal on-balance sheet debt
• USD $68mm(1) of financial debt as
of September 2014
• Strong cash position
• USD $135mm of cash and
equivalents as of September 2014
• Fully financed pre-delivery payments and
executed sale-leasebacks for all
deliveries in 2015 and 2016
(2)
21
22. Active in jet fuel hedging, reaching up to 45% of projected
consumption for 2015
22
Period Total % hedged Avg. price (gal/USD$) Instrument
4Q14 26% $2.80 Swap
1Q15 29% $2.53 Swap/Call
2Q15 45% $2.15 Swap/Call
3Q15 45% $2.07 Call
4Q15 45% $2.07 Call
1Q16 10% $1.84 Call
2Q16 5% $1.70 Call
24. 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 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.
24
25. MXN millions unless otherwise stated (2) 2012A 2013A
September
YTD 2014A
September
YTD 2014A (1) 3Q 2014A 3Q 2014A (1)
% of total
operating
revenues
(USD
millions)
(USD
millions)
Passenger 10,177 11,117 8,163 607 3,253 242 81.4
Non-ticket 1,510 1,885 1,915 142 742 55 18.6
Total operating revenues 11,687 13,002 10,078 749 3,995 297 100
Fuel 4,730 5,086 4,088 304 1,455 108 36.4
Aircraft and engines rent expense 1,886 2,187 1,860 138 637 47 16.0
Salaries and benefits 1,303 1,563 1,174 87 395 29 9.9
Landing, take off and navigation expenses 1,640 1,924 1,577 117 532 40 13.3
Sales, marketing and distribution expenses 752 704 590 44 238 18 6.0
Maintenance expenses 499 572 473 35 167 12 4.2
Other operating expense 288 347 333 25 123 9 3.1
Depreciation and amortization 211 302 205 15 87 6 2.2
Total operating expenses 11,309 12,685 10,301 766 3,634 270 91.06
EBIT 378 317 (222) (17) 361 27 9.0
Operating margin (%) 3 .2 2 .4 (2.2) (2.2) 9 .0 9.0
Finance income 14 25 17 1 7 0 0.2
Finance cost (90) (126) (23) (2) (9) (1) (0.2)
Exchange (loss) gain, net (95) 66 112 8 116 9 2.9
Income tax benefit (expense) (3) (17) 18 1 (127) (9) (3.2)
Net income (loss) 203 265 (98) (7) 347 26 8.7
Net margin (%) 1.7 2.0 (1.0) (1.0) 8.7 8.7
Net income (loss) excluding special items (3)
203 379 (98) (7) 347 26 8.7
Adjusted EBITDAR 2,475 2,806 1,842 137 1,085 81 27.2
Adj. EBITDAR margin (%) 21.2 21.6 18.3 18.3 27.2 27.2
EPS Basic and Diluted (cents) 31.0 (9.7) (0.7) 34.3 2.6
EPADS Basic and Diluted (cents) 310.4 (96.5) (7.2) 343.2 25.5
Consolidated statements of operations summary
Notes:
(1) Figures converted to USD September end of the period spot exchange rate $13.4541, for convenience purposes only
(2) Audited financial information 2010A – 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 25
26. Consolidated statements of financial position summary
Nota:
(1) Figures converted to USD September end of the period spot exchange rate $13.4541, 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 2010A – 2013A
Source: Company data
MXN millions unless otherwise stated (5) 2012A 2013A
September
2014A
September
2014A (1)
(USD millions)
Cash and cash equivalents 822 2,451 1,814 135
Current guarantee deposits 238 499 651 48
Other current assets 755 1,050 900 67
Total current assets 1,815 4,000 3,365 250
Rotable spare parts, furniture and
equipment, net 1,195 1,341 1,992 148
Non-current guarantee deposits 2,245 2,603 2,881 214
Other non-current assets 447 434 463 34
Total assets 5,702 8,378 8,701 647
Unearned transportation revenue 1,259 1,393 1,495 111
Short-term financial debt 527 268 271 20
Other short-term liabilities 1,936 2,211 2,256 168
Total short-term liabilities 3,722 3,872 4,022 299
Long-term financial debt 633 294 621 46
Other long-term liabilities 272 250 211 16
Total liabilities 4,627 4,416 4,854 361
Total equity 1,075 3,962 3,847 286
Total liabilities and equity 5,702 8,378 8,701 647
Net debt (2) 338 (1,889) (992) (69)
Adjusted debt (3) 14,360 15,874 18,073 1,343
Adjusted net debt (4) 13,538 13,423 16,259 1,208
26
27. Consolidated statements of cash flows summary
Notes:
(1) Figures converted to USD September end of the period spot exchange rate $13.4541, for convenience purposes only
(2) Audited financial information 2010A - 2013A
Source: Company data
MXN millions unless otherwise stated (2) 2012A 2013A
September September
3Q 2014 3Q 2014YTD 2014A YTD 2014A (1)
(USD millions) (USD millions)
Cash flow from operating activities
Income (loss) before income tax 207 283 (116) (9) 474 35
Depreciation and amortization 211 302 205 15 87 6
Guarantee deposits (311) (620) (430) (32) (215) (16)
Unearned transportation revenue 433 135 101 8 (445) (33)
Changes in working capital and provisions (43) (61) 104 8 57 4
Net cash flows provided by (used in) operating activities 497 39 (136) (10) (42) (3)
Cash flow from investing activities
Acquisitions of rotable spare parts, furniture, equipment and
intangible assets (856) (1,161) (1,090) (81) (370) (27)
Proceeds from disposals of rotable spare parts, furniture and
equipment 1,043 849 277 21 - -
Net cash flows (used in) provided by investing activities 187 (312) (813) (60) (370) (27)
Cash flow from financing activities
Legal costs incurred on behalf of shareholders - - - - - -
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) (16) (1) (5) -
Other financing costs - - (7) - (4) -
Payments of financial debt (694) (1,084) (268) (20) - -
Proceeds from financial debt 550 444 571 42 106 8
Net cash flows (used in) provided by financing activities (272) 1,861 280 21 96 7
Increase (decrease) in cash and cash equivalents 412 1,588 (669) (50) (316) (23)
Net foreign exchange differences (31) 41 32 2 42 3
Cash and cash equivalents at beginning of period 441 822 2,451 182 2,088 155
Cash and cash equivalents at end of period 822 2,451 1,814 135 1,814 135
27
28. Adj. EBITDA and Adj. EBITDAR reconciliation
Notes:
(1) Figures converted to USD September end of the period spot exchange rate $13.4541, for convenience purposes only
(2) Audited financial information 2010A - 2013A
Source: Company data
MXN millions unless otherwise stated (2) 2012A 2013A
September
YTD 2014A
September
YTD 2014A (1) 3Q 2014 3Q 2014
(USD
millions)
(USD
millions)
Net income (loss) 203 265 (98) (7) 347 26
Plus (minus):
Finance costs 90 126 23 2 9 1
Finance income (14) (25) (17) (1) (7) (0)
(Benefit)/provision for income taxes 3 17 (18) (1) 127 9
Depreciation and amortization 211 302 205 15 87 6
Business alliance amortization - - - - - -
EBITDA 494 685 95 7 563 42
Exchange (gain) loss, net 95 (66) (112) (8) (116) (9)
Other financing cost (income), net - - - - - -
Adjusted EBITDA 589 619 (17) (1) 447 33
Aircraft and engine rent expense 1,886 2,187 1,860 138 637 47
Adjusted EBITDAR 2,475 2,806 1,842 137 1,085 81
28
