PRESENTATION FOR SHAREHOLDERS PRESENTATION FOR SHAREHOLDERS CONSOLIDATED FINANCIAL INFORMATION FOR 3Q 2013 14 November, 2013
Warsaw, 7 May 2012
Content § ASG Group’s Achievements in 3Q 2013 § ASG Group’s Structure / Areas of Activity § ASG Group’s Financial Results in 3Q 2013 § ASG Group’s Revenue, Net Profit § Sales / Gross Profit Breakdown by Business Segments § Consolidated Balance Sheets § ASG Group’s Cash Flows and CAPEX § ASG Group’s Employees § ASG Share Price & Performance § ASG Shareholders
1
ASG Group Achievements in 3Q 2013
Financial Parameters:
ยง Increase in consolidated revenue from ยง
continuing operations by 3 % (9m 2013 vs 9m 2012) up to LTL 405 million; Over LTL 28.8 million of net profit attributable to equity holders.
Realization of Strategic Projects:
ยง On 29 March 2013, Avia Solutions Group AB sold 95.5 % of the share capital of Small Planet Airlines UAB (Lithuania) and Small Planet Airlines Sp.z.o.o. (Poland) to the management of these companies Mr. Vytautas Kaikaris (65.5%) and Mr. Andrius Staniulis (30%).
2
ASG Group’s Structure / Areas of Activity
MRO segment
Training Segment
GH & Fuelling Segment
Charter Operations Segment (discontinued operations)
3
ASG Group’s Structure: by companies • FL Technics AB (LT, 100%) •FL Technics Jets UAB (LT, 100%) •Locatory.com UAB (LT, 95%) •FL Technics Line OOO (RU, 93%) •Storm Aviation Ltd. (UK, 100%) •Storm Aviation Cyprus Ltd. (CY, 100%) •FL Technics Ulyanovsk OOO (RU, 99%) •FLT Trading House UAB (LT, 100%)
MRO SEGMENT (8 companies)
Training Segment (2 companies)
•Baltic Aviation Academy UAB (100%) •AviationCV.com UAB (100%)
GH & Fuelling Segment
•Baltic Ground Services UAB (100%) •Baltic Ground Services Sp.z.o.o (100%) •Baltic Ground Services s.r.l. (100%) •Baltic Ground Services TOV UA (100%) •Ground Handling CIS UAB (100%)
(5 companies)
Charter Operations
Segment (discontinued operations)
•Small Planet Airlines s.r.l. (35.5%) •Small Planet Airlines UAB (sold on 29 March 2013) •Small Planet Airlines Sp.z.o.o. (sold on 29 March 2013)
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ASG Group’s Financial Results in 3Q 2013 3Q 2013
3Q 2012
Change (3Q 2013 vs 3Q 2012)
LTL thousands (except margins & EPS & numbers of shares)
9m 2013
9m 2012
Change (9m 2013 vs 9m 2012)
144 319 19 726 13.7% 10 707
145 036 21 248 14.7% 15 350
-0.5% -7.2% -1 pp -30.2%
Revenue from continuing operations Gross profit from continuing operations Gross profit margin (%) EBITDA from continuing operations
405 107 54 489 13.5% 29 281
392 226 57 613 14.7% 37 401
+3.3% -5.4% -1.2 pp -21.7%
7.4% 7 029 4.9% 6 099 5 070 3.5% 5 070 5 064 3.5% 0.859 10 210 14 111 5 893
10.6% 11 405 7.9% 11 273 8 678 6.0% 8 463 17 141 16 823 11.6% 1.475 7 102 15 140 5 893
-3.2 pp -38.4% -3 pp -45.9% -41.6% -2.5 pp -70.4% -69.9% -8.1 pp -41.7% +43.8 -6.8% -
EBITDA margin (%) Operating profit from continuing operations Operating profit margin (%) Profit before income tax from continuing operations Net profit for the period from continuing operations Net profit or the period from continuing operations margin (%) Net profit for the period from discontinued operations Net profit for the period Net profit attributable to equity holders Net profit attributable to equity holders margin (%) EPS (LTL) CAPEX (additions of PPE and intangible assets) Net cash at the end of period Weighted average number of ordinary shares (thousand)
7.2% 19 656 4.9% 16 648 14 374 3.5% 14 204 28 578 28 810 7.1% 2.441 22 712 14 111 5 893
9.5% 31 837 8.1% 30 501 24 572 6.3% 4 269 28 572 28 476 7.3% 4.130 20 475 15 140 5 893
-2.3 pp -38.3% -3.3 pp -45.4% -41.5% -2,7 pp +232.7% +0% +1.2% -0.1 pp -40.9% +10.9% -6.8% -
3
ASG Group’s Revenue, Net Profit 0
40
3Q 2013
138
5
123
2
144
3Q 2012
9
2Q 2012
10
1Q 2012
145 141
6
4Q2011
3
3Q 2011
4
1Q 2011
160 144
4
1Q 2013
2Q 2011
120
5
2Q 2013
4Q 2012
80
106 98 74
7 8
69 50
Net Profitability Revenue from continuing operations (mln LTL) Net profit from continuing operations (mln LTL)
6
Consolidated Income Statements Sales / Gross Profit Breakdown by(quarterly) Business Segments, 3Q 2013 Business Segments’ Revenue – Mix Change (mln LTL)
100 75
2012 3Q
88 78
2013 3Q
50 25 6 0 MRO segment
GH & Fuelling Segment
Training Segment
Business Segment’s Gross Profitability – Mix Change (mln LTL)
15 10 5
14 5 1
0 * Segments’ share in Sales and Gross Profit calculated based on total Sale/ Gross Profit value (including intercompany transactions)
7
Consolidated Income Statements (quarterly) Operating Data by Business Segments, 3Q 2013 Operating Results 1Q 2013
1Q 2012
Number of SOLD man-hours (base maintenance)
78 124
76 986
Number of SOLD man-hours (engineering)
16 202
13 740
787
1 788
Number of SOLD man-hours (maintenance training) Number of line stations (at the end of the period) Number of aircrafts served Number of passengers served
Change, %
2Q 2013
2Q 2012
1.5
61 890
86 956
17.9
13 676 1 636
(56.0) (4.5)
Change, %
3Q 2013
3Q 2012
Change, %
(28.8)
28 822
63 825
(54.8)
19 940
(31.4)
13 180
11 068
19.1
1 651
(0.9)
2 590
731
254.2
21
22
18
24
(25.0)
20
28
1 481
2 403
(38.4)
2 386
3 198
(25.4)
3 332
2 563
-8 30.0
217 960
299 918
(27.3)
384 799
467 841
(17.8)
539 965
441 611
22.3
12 224
9 267
31.9
15 984
16 079
(0.6)
19 548
19 771
(1.1)
TRTO - Number of sold theoretical training hours
1 362
1 856
(26.6)
2 831
3 712
(23.7)
2 127
1 629
30.6
TRTO - Number of sold practical training (FFS) hours
2 497
4 265
(41.4)
3 943
7 814
(49.5)
2 736
2 426
12.8
Volume of fuel sold (tonnes)
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Consolidated Balance Sheets – 1 30-09-2013
§ § § § §
323 607
31-12-2012 299 295
14 111 108 417
30-09-2013 vs 31-12-2012
LTL thousand
+8.1%
Total assets
8 913 97 313
+58.3% +8.9%
Cash and cash equivalents Trade receivables
144 834 83 952 69 841
113 595 73 741 64 828
+27.5% +13.8% +7.7%
Total equity Borrowings Net debt
1.62 4.4%9M
1.49 6.4%YEAR
+0.13 pp -
Liquidity risk Return on assets (ROA), %
9.9%9M 44.8% 32.5%
16.8%YEAR 38.0% 36.3%
+6.8 pp -3.8 pp
Return on equity (ROE), % Equity ratio, % Gearing ratio, %
Net debt = Borrowings – Cash and cash equivalents Return on equity (ROE) = Net profit for the period / Total equity Return on assets (ROA) = Net profit for the period / Total assets Equity ratio = Total equity / Total assets Gearing ratio = Net debt / (Net debt + Total equity)
9
Consolidated Balance Sheets – 2 30-09-2013
31-12-2012
30-09-2013 vs 31-12-2012
323 607
299 295 8 913 97 313 113 595 73 741 64 828 1,49 YEAR 6,4% 16,8%YEAR 38,0% 36,3%
+8.1% +58.3% +8.9% +27.5% +13.8% +7.7% +0.13 pp +6.8 pp -3.8 pp
14 111 108 417 144 834 83 952 69 841 1.62 4.4%9M 9.9%9M 44.8% 32.5%
LTL thousand
Total assets Cash and cash equivalents Trade receivables Total equity Borrowings Net debt Liquidity risk Return on assets (ROA), % Return on equity (ROE), % Equity ratio, % Gearing ratio, % Trade and other receivables 4%
23%
4% 3%
30%
Inventories 2% 0%
Property, plant and equipment Cash and cash equivalents Amount due from customers for contract work Deferred income tax assets
34%
Intangible assets Prepaid income tax
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Consolidated Balance Sheets – 4 30-09-2013 323 607 14 111 108 417 144 834
31-12-2012 299 295 8 913 97 313 113 595
30-09-2013 vs 31-12-2012 +8.1% +58.3% +8.9% +27.5%
83 952
73 741 64 828 1,49 YEAR 6,4% 16,8%YEAR 38,0% 36,3%
+13.8% +7.7% +0.13 pp +6.8 pp -3.8 pp
69 841 1.62 4.4%9M 9.9%9M 44.8% 32.5%
LTL thousand Total assets Cash and cash equivalents Trade receivables Total equity
Borrowings Net debt Liquidity risk Return on assets (ROA), % Return on equity (ROE), % Equity ratio, % Gearing ratio, %
87%
Bank borrowings Finance lease liabilities 13% Borrowings from other related parties Other borrowings 0% 0% 11
Consolidated Balance Sheets – 5 30-09-2013 323 607 14 111 108 417 144 834
31-12-2012 299 295 8 913 97 313 113 595
30-09-2013 vs 31-12-2012 +8.1% +58.3% +8.9% +27.5%
83 952
73 741 64 828 1,49 YEAR 6,4% 16,8%YEAR 38,0% 36,3%
+13.8% +7.7% +0.13 pp +6.8 pp -3.8 pp
69 841 1.62 4.4%9M 9.9%9M 44.8% 32.5%
LTL thousand Total assets Cash and cash equivalents Trade receivables Total equity
Borrowings Net debt Liquidity risk Return on assets (ROA), % Return on equity (ROE), % Equity ratio, % Gearing ratio, %
0% 5% Aircraft maintenance, repair and overhaul (MRO)
26%
Aircraft ground handling and fuelling Unallocated 69% Pilot and crew training
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ASG Group’s Cash Flows & CAPEX Net cash at the end of period (LTL million)* 15 15
15
15
14
13
10
9
10
10
5 0 31-12-2011 31-03-2012 30-06-2012 30-09-2012 31-12-2012 31-03-2012 30-06-2013 30-09-2013
Capital Expenditure (CAPEX, LTL million) 35 30
32
32
25 20 15 10 5
7
7
7
Q1 2012
Q2 2012
Q3 2012
6
7
Q1 2013
Q2 2013
10
0 Y2011
Y2012
Q3 2013
* - Bank overdrafts are subtracted from net cash and cash equivalents at the end of period
13
ASG Group’s Employees Number of full-time employees at the end of period 1051
1022 972 951 929 939 919 856 865 711 579
30-09-2013 30-06-2013 31-03-2012 31-12-2012 30-09-2012 30-06-2012 31-03-2012 31-12-2011 30-09-2011 30-06-2011 31-03-2011
14
ASG Share Price & Performance ASG vs WIG (from 01-01-2013 till 30-09-2013)
Prices in PLN
02-01-2013: High: Low: 26-09-2013:
60.50 75.00 46.00 60.00
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ASG Shareholders ยง ยง
On 3 March 2011 shares of the Avia Solutions Group AB were introduced to trading at Warsaw Stock Exchange (code: AVIASG). The authorised capital of the Company is divided into 5 893 333 ordinary shares with a par value of LTL 1 each. Part of shares and votes 14-11-2013 31-12-2012 32.91% 32.91% 21.89% 21.94% 10.33% 10.33% 6.62% 6.62% 28.25% 28.20% 100.00% 100.00%
ZIA Valda Cyprus Ltd. Indeco: Investment and Development UAB Harberin Enterprises Limited ING Otwarty Fundusz Emerytalny Other Total
Amount of shares and votes 14-11-2013 31-12-2012 1,939,275 1,939,275 1,289,850 1,292,850 609,051 609,051 390,000 390,000 1,665,157 1,662,157 5,893,333 5,893,333
Distribution of ASG Shareholders as at 16 August 2013: 28,20%
32,91% ZIA Valda Cyprus Ltd. Indeco: Investment and Development UAB Harberin Enterprises Limited
6,62%
10,33%
21,89%
ING Otwarty Fundusz Emerytalny Other
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Thank You For Your Attention
www.AviaSG.com/InvestorRelations