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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.
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