Investor Presentaiton
FINANCE
Finance outlook
A highly cash generative business
Sustainable Free Cash Flow¹ Generation
$M
3,500
Sustainable returns to
3,000
shareholders in stable
operating environment
Operating cash flows depressed post-
GFC at same time as major re-fleeting
2,500
2,000
1,500
1,000
Accelerated business
transformation, Capex
constrained to prioritise
debt reduction
Average Fleet Age²
14
More resilient Group,
leveraged to favourable
operating environment,
with strong free cash
flow
13
12
11
10
10
9
500
0
FY07
FY08
FY09
FY10
FY11
FY12
FY13
Fleet age
-Investing activites (lease adjusted)
8
1H15 record young
fleet age: 7.2 yrs³
7
FY14
FY154
FY16
Operating activities (lease adjusted)
1. Free cash flow equals operating cash flows (lease adjusted) less investing cash flows (lease adjusted). Operating cash flows have been adjusted for off balance sheet capital, similar to rating agency
methodologies which replace aircraft rental payments with an interest charge. Investing cash flows have been adjusted to remove differentials between purchased and leased aircraft. New leases are
treated as a 'cash outflow' equal to the aircraft market value at lease commencement. Lease returns are treated as a 'cash inflow' equal to the notional written down value of the leased asset at time of
disposal. 2. Average fleet age of the Group's scheduled passenger fleet based on manufacturing date at the 30 June of each financial year, as previously reported. 3. Youngest fleet age since privatisation. 4. 29
FY15 net cash from operating activities (lease adjusted) is indicative only.View entire presentation