4Q23 Results
March28,2024
Disclaimer
The information contained in this presentation is only a summary and does not purport to be complete. This presentation has been prepared solely for informational purposes and should not be construed as financial, legal, tax, accounting, investment or other advice or a recommendation with respect to any investment. 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.
This presentation includes estimates and forward-looking statements within the meaning of the US federal securities laws. These estimates and forward-looking statements are based mainly on our current expectations and estimates of future events and trends that affect or may affect our business, financial condition, results of operations, cash flow, liquidity, prospects and the trading price of our preferred shares, including in the form of ADSs. Although we believe these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to many significant risks, uncertainties and assumptions and are made reflecting information currently available to us.
These statements appear throughout this presentation and include statements regarding our intent, belief or current expectations in connection with changes in market prices, customer demand and preferences, competitive conditions, general economic, political and business conditions in Brazil, particularly in the geographic markets we serve and may serve in the future, our ability to keep costs low, existing and future governmental regulations, increases in maintenance costs, fuel costs and insurance premiums, our ability to maintain landing rights in the airports that we operate, air travel substitutes, labor disputes, employee strikes and other labor related disruptions, including in connection with negotiations with unions, our ability to attract and retain qualified personnel, our aircraft utilization rate, defects or mechanical problems with our aircraft, our ability to successfully implement our growth strategy, including our expected fleet growth, passenger growth, our capital expenditure plans, our future joint venture and partnership plans, our ability to enter new airports (including certain international airports) that match our operating criteria, management's expectations and estimates concerning our future financial performance and financing plans and programs, our level of debt and other fixed obligations, our reliance on third parties, including changes in the availability or increased cost of air transport infrastructure and airport facilities, inflation, appreciation, depreciation and devaluation of the real, our aircraft and engine suppliers and other factors or trends affecting our financial condition or results of operations, including those factors identified or discussed as set forth under "Risk Factors" in the prospectus included in our registration statement on Form F 1 (No 333 215908 filed with the Securities and Exchange Commission (the "Registration Statement").
In addition, in this presentation, the words "believe," "understand," "may," "will," "aim," "estimate," "continue," "anticipate," "seek," "intend," "expect," "should," "could," and similar words are intended to identify forward-looking statements. You should not place undue reliance on such statements, which speak only as of the date they were made. We do not undertake any obligation to update publicly or to revise any forward-looking statements after we distribute this presentation because of new information, future events or other factors. Our independent public auditors have neither examined nor compiled the forward-looking statements and, accordingly, do not provide any assurance with respect to such statements. Considering the risks and uncertainties described above, the future events and circumstances discussed in this presentation might not occur and are not guarantees of future performance. Because of these uncertainties, you should not make any investment decision solely based upon these estimates and forward-looking statements.
In this presentation, we present EBITDA, which is a non-IFRS performance measure and is not a financial performance measure determined in accordance with IFRS and should not be considered in isolation or as alternatives to operating income or net income or loss, or as indications of operating performance, or as alternatives to operating cash flows, or as indicators of liquidity, or as the basis for the distribution of dividends. Accordingly, you are cautioned not to place undue reliance on this information.
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2023
Highlights
Azul's unique business model delivering solid operating and financial results
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Record revenue of R$18.7 billion
Record non-ticket revenue of ~R$6 billion
Record RASK of R$42.48 cents
2023 EBITDA R$5.2 billion, R$2 billion higher YoY
Delivered 2023 guidance
Amicable conclusion of capital optimization plan
Second most on-time airline in the world
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Unique Business Model Delivering Solid Results
Only carrier in
82%
of our routes
Exclusive Network
exposure to Brazil's fast-growing regions
Superior Customer Service
one of the industry's highest Net Promoter Scores and best on-time performances
Industry-Leading Profitability
with further upside from growth and fleet transformation
All-time Records
revenue, PRASK and RASK
Optimized Capital Structure
higher liquidity and improved debt profile
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Exclusive Network with the Best Connectivity in Brazil
Overlap | ||
(# of routes) | ||
Competitor 1 | ||
39 | ||
(24%) | ||
23 | ||
259 | 27 | 73 |
(82%) | ||
8 | 18 |
(14%) | |
Competitor 2 |
Only carrier in 82% of routes
Leadership position in 91% of our routes
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Connectivity Example: Recife Hub
2023 Departures
(Airport Market Share, %)
11%
16%
73%
Azul Competitor 1 Competitor 2
92
daily departures
41
destinations
6
Official Airline
Sponsor of Brazil´s
Olympic Committee
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All-time Record Revenue, RASK and PRASK in 4Q23
Record 4Q23 Revenue
R$5.0 billion
Up 13% YoY and up 55% vs. 4Q19
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Record 4Q23 RASK
R$45.30 cents
Up 6% YoY and up 35% vs. 4Q19
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4Q23 EBIT | 4Q23 EBITDA |
Record 4Q23 PRASK
R$42.01 cents
Up 6% YoY and up 31% vs. 4Q19
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R$883 million | R$1.5 billion |
17.6% margin | 29.2% margin |
4 Q
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4 Q
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Strong results and industry-leading profitability, with further upside from growth and fleet transformation
Adjusted for non-recurring items | 8 |
Strong Contribution from Our Other Businesses
Charter
$ Fast-growth,high-margin businesses
Annual revenues ~R$6 billion
RASK
(R$ cents; % of total)
45.30
26%
74%
4Q23
Non-ticket Ticket
Leveraging Azul's unique network and flexible fleet
Additional growth opportunities going forward
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2023 vs. 2022 EBITDA
2023 EBITDA | |
(Adjusted, RS billion) | |
20.3% | 27.9% |
-0.3
1.1 | -0.2 | ||
-0.3 | |||
1.7 | |||
5.2
3.2
EBITDA | RASK expansion | FX and oil | Inflation | Maintenance | Investing | EBITDA |
Adj. 2022 | and growth | expense | in the future | Adj. 2023 |
All-time record EBITDA, with R$2 billion expansion year over year
Adjusted for non-recurring items | 10 |
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Disclaimer
Azul SA published this content on 13 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 April 2024 23:12:02 UTC.