Cebu Air, Inc.
2nd Quarter and 1st Half 2015
Results of Operations
cebupacificair.com
Disclaimer
This information provided in this presentation is provided only for your reference. Such information has not been independently verified
and, as such, is not guaranteed to be accurate nor complete. Neither Cebu Air, Inc. (“CEB” or the “Company”) nor any of its affiliates,
shareholders, directors, employees, agents or advisers makes expressed or implied representations or warranties as to the accuracy or
completeness of the information contained herein and neither of them shall accept any responsibility or liability (including any third
party liability) for any loss or damage, whether or not arising from any error or omission in compiling such information or as a result of
any party’s reliance or use of such information. The information and opinions in this presentation are subject to change without notice.
EBITDAR, EBITDA, EBITDAR Margin, EBIT and core net income are not measures of performance under the Philippine Financial Reporting
Standards (“PFRS”), and should not be considered in isolation or as alternatives to net income as an indicator of CEB’s operating
performance or to cash flow from operating, investing and financing activities as a measure of liquidity, or any other measures of
performance under PFRS. Because there are various EBITDAR, EBITDA, EBITDAR Margin, EBIT and core net income calculation methods,
CEB’s presentation of these measures may not be comparable to similarly titled measures used by other companies.
This presentation also contains certain “forward-looking statements.” These forward-looking statements include words or phrases such
as CEB or its management “believes”, “expects”, “anticipates”, “intends”, “plans”, “foresees”, or other words or phrases of similar import.
Similarly, statements that describe CEB’s objectives, plans or goals are also forward-looking statements. All such forward-looking
statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by
the relevant forward-looking statement. Such forward looking statements are made based on management’s current expectations or
beliefs as well as assumptions made by, and information currently available to, management. There is no assurance that expected
events will occur, that projections will be achieved, or that the Company and its management’s assumptions are correct.
17 August 2015 2
Business Updates
Operating Statistics
• CEB flew 4.9M passengers in 2Q15, up 4.3% YOY, and 9.2M in 1H15, up 8.2%
• We posted 84.5% seat load factor in 2Q15 and 81.8% in 1H15
• We utilized our airbus fleet 12.7 hours per day and turned them 6.7x per day.
• On-time performance (OTP) posted at 70.3% for 2Q15
• For 2Q15, RPK grew 19.5% YOY, and ASK grew 24.2%
• As of June 30, 2015: 62 destinations, 93 routes, and 2,631 weekly flights
Load
88.4% 84.5% 85.7% 81.8%
Factor
9.2
8.5
2.1
1.9
Passengers (M)
4.7 4.9
1.0 1.1
6.6 7.1
3.7 3.8
2Q14 2Q15 1H14 1H15
Domestic International
17 August 2015 4
Domestic Market
Average Domestic Market Share
60.9% 59.7% 58.6% 59.7% CEB Group
PAL Group
Air Asia Group
27.7% 28.6% 29.7% 28.6%
11.0% 11.6% 11.2% 11.4%
(1)
2Q14 2Q15 1H14 1H15
• Highest market share at 59.7% in 2Q15(1)
• Most number of passengers carried; Highest seat load factor and competitive
performance index
• 34 destinations, 56 routes, and 2,163 weekly flights
(1)2Q15 figures are based on internal estimates
17 August 2015 5
Short Haul International
Destination Weekly Flights Seat Share
Hong Kong 55x 24.8%
Singapore 40x 27.8%
South Korea 25x 9.4%
Japan 20x 16.4%
China 20x 22.2%
source: CAPA route capacity data for week of Aug 03, 2015
• SLF posted at 79.2% in 2Q15, and 78.5% in 1H15
• 23 short haul destinations, 37 routes, and 449 weekly flights
• Hong Kong, Singapore, and Korea continue to be the largest markets, followed by Japan and
China
17 August 2015 6
Long Haul Operations
Destination Weekly Seat Share(2) Sydney Passenger YOY Traffic Growth Sep-May
Flights(1) 232,876
Dubai 7x 28.8% 68,620
Sydney 5x 35.8% 144,182 Qantas
78,992 PAL
Kuwait 4x 100% 72,437
Cebu Pacific
Riyadh 3x 22.8%
71,745 85,264
Doha 2x 24.6%
(1) Subject to seasonal adjustments; (2) Seat share based on non-stop 2013/14 2014/15
flights
Source: Australia BITRE data
• Long haul posted 75.6% SLF in 2Q15, and 67.9% in 1H15
• As of June 30, 2015: 5 destinations, 5 routes, and 21 weekly flights
• Dubai posted 16.9% YOY passenger growth in 2Q15, resulting to 81.2% SLF
• CEB now largest carrier to operate Manila-Sydney, capturing 37% market share from Sep 2014 to
May 2015*
• Manila-Sydney total passenger traffic grew 62% since CEB started operations. Our market share
represent 96% of the incremental growth.
*source: Australia BITRE
17 August 2015 7
Financial Results
Income Statement Highlights
YOY Change
2Q14 2Q15 1H14 1H15 2Q 1H
Total Revenue (Php Million) 14,953 15,308 26,717 29,506 2% 10%
Passenger Revenue 12,004 12,005 20,852 22,813 0% 9%
Ancillary Revenue 2,192 2,474 4,428 5,092 13% 15%
Cargo Revenue 758 829 1,437 1,601 9% 11%
Average Yield per passenger 2,997 2,930 2,966 3,026 -2% 2%
Average fare 2,534 2,429 2,446 2,474 -4% 1%
Ancillary/passenger 463 501 519 552 8% 6%
Cargo yield per kg 21 23 21 22 13% 4%
Cost/ASK (CASK) 2.443 1.904 2.455 1.896 -22% -23%
CASK ex-fuel 1.248 1.144 1.249 1.156 -8% -7%
(PHP million)
EBITDAR 4,555 5,660 6,986 10,822 24% 55%
EBIT 2,449 3,206 2,962 6,037 31% 104%
Pre-tax Core Net income 2,266 2,991 2,581 5,556 32% 115%
Net income 3,014 2,975 3,178 5,200 -1% 64%
Margins
EBITDAR Margin 30.5% 37.0% 26.1% 36.7% 7 ppts 11 ppts
EBIT Margin 16.4% 20.9% 11.1% 20.5% 5 ppts 9 ppts
Pre-tax Core Net Income Margin 15.2% 19.5% 9.7% 18.8% 4 ppts 9 ppts
Net income margin 20.2% 19.4% 11.9% 17.6% 1 ppts 6 ppts
17 August 2015 9
Balance Sheet Highlights
As at Dec 31, As at June 30,
Php Millions 2014 2015
• Cash level at P6.46B as at Jun 30, 2015
Current assets 8,526 11,232
vs. P3.96B in Dec 31, 2014
Noncurrent assets 67,536 70,581
Total Assets 76,062 81,813 • Property and equipment at P68.2B in
2015 vs. P65.2B in 2014 due to two
Total debt(1) 33,850 34,858 A320 aircraft deliveries in 1Q15
Other liabilities 20,674 20,216
Total Liabilities 54,523 55,074
Total Equity 21,539 26,739
Net debt-to-equity(2) 1.39x 1.06x
Adjusted net debt-to-equity(3) 2.55x 2.06x
Cash-to-sales-LTM ratio 8% 12%
Forex, closing 44.72 45.09
NOTE:
(1) Includes current and noncurrent portion of long-term debt
(2) Net debt is total debt less cash and cash equivalents.
(3) Adjusted net debt is net debt plus capitalized lease and ARO liability
17 August 2015 10
Cash Flows
Php Millions 1H2015
CASHFLOWS FROM OPERATING ACTIVITIES
Income after noncash adjustments 8,826
Net changes in working capital (998)
Interest and taxes paid – net (509)
Net cash provided by operating activities 7,319
CASHFLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment and other
noncurrent assets (5,526)
CASHFLOWS FROM FINANCING ACTIVITIES
Availment of long term debt 3,099
Repayment of long term debt (2,410)
Net cash provided by financing activities 689
Net foreign exchange difference 17
NET INCREASE IN CASH AND CASH EQUIVALENTS 2,499
CASH AND CASH EQUIVALENTS, beginning 3,964
CASH AND EQUIVALENTS, END 6,463
17 August 2015 11
Outlook
Fuel, Forex and Forward Bookings
Fuel
• As of August 12, 2015, Jet Kero at $58.05/bbl Jet Kero Front-Month Closings
from $70.38/bbl in December 31, 2014, and 85
$72.60/bbl on June 30, 2015. 80
• Hedge ratio now at 28% for balance of 2015,
75
19% for 2016, and 14% for 2017.
70
Forex 65
• As of August 12, 2015, USDPHP at 46.26, from
60
44.72 in Dec 31, 2014, and 45.09 in June 30-Dec 30-Jan 28-Feb 31-Mar 30-Apr 31-May 30-Jun 31-Jul
Data source: Mitsui Bussan Commodities
30,2015
• We have no outstanding FX hedges. USDPHP Closing Prices
46.0
Forward bookings 45.5
• As of the week of August 10, 3-month forward
45.0
bookings are at 22% of total available seats.
Total bookings for the period are up 17% YOY. 44.5
• Long haul forward bookings for the next 3
44.0
months show 34% of seats have already been 1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug
sold Data source: pds.com.ph
17 August 2015 13
Fleet Expansion
56 59
52 55
3 Ave. fleet age(1)
5 6 6 6
4.60 years
8 8 10 11
7 7 7 4
32 34 33 35
2014 2015 2016 2017
A319/A320 - Finance Lease A320 - Operating Lease ATR - Finance Lease
A330 - Operating Lease A321 NEO
• Between 2015 to 2022: Total remaining order book of 7 A320, 30 A321 NEO, and 16 ATR 72-600 (2)
• 6 A319 to be sold (2015-2016)
• 7 A320 for lease return (2017-2019)
• 8 ATRs to be replaced (2017-2018)
(1) As of June 08, 2015
(2) Subject to finalization of purchase agreement
17 August 2015 14
Thank you
cebupacificair.com
