Azul SA (AZUL) 2024 Q4 法說會逐字稿

Hello everyone and welcome all to Azul's fourth-quarter earning call. My name is Zach and I will be your operator for today. This event is being recorded, and all participants will be in an listen-only mode until we conduct a Q&A session following the company's presentation.

大家好，歡迎參加 Azul 第四季財報電話會議。我叫扎克，今天我將擔任您的接線生。此次活動正在錄製中，所有參與者將處於僅收聽模式，直到我們在公司演示之後進行問答環節。

(Operator Instructions)

（操作員指示）

I would like to turn the presentation over to Thais Haberli, Head of Investor Relations. Please proceed, Thais.

我想將演講交給投資者關係主管 Thais Haberli。請繼續，泰國人。

Thank you, Zach, and welcome all to Azul's fourth-quarter earnings call. The results that we announced this morning, the audio of this call, and the slides that we referenced are available on our IR website.

謝謝你，扎克，歡迎大家參加 Azul 第四季財報電話會議。我們今天上午宣布的結果、本次電話會議的音訊以及我們引用的幻燈片都可以在我們的 IR 網站上找到。

Presenting today will be David Neelemann, Azul's Founder and Chairman; John Rodgerson, our CEO; and Alex Malfitani, our CFO. Abhi Shah, the President of Azul, is also here for the Q&A session.

今天發表演講的將是 Azul 創辦人兼董事長 David Neelemann；我們的執行長 John Rodgerson；以及我們的財務長 Alex Malfitani。Azul 總裁 Abhi Shah 也出席了問答環節。

Before I turn the call over to David, I'd like to caution you regarding our forward-looking statements. Any matters discussed today that are not historical facts, particularly comments regarding the company's future plans, objectives, and expected performance constitute forward-looking statements.

在我將電話轉給大衛之前，我想提醒您注意我們的前瞻性陳述。今天討論的任何非歷史事實的事項，特別是有關公司未來計劃、目標和預期業績的評論均構成前瞻性陳述。

These statements are based on a range of assumptions that the company believes are reasonable but are subjected to uncertainties and risks that are discussed in detail in our CVM and SEC files. Also, during the course of the call, we will discuss non-IFRS performance measures, which should not be considered in isolation.

這些聲明是基於一系列公司認為合理但受不確定性和風險影響的假設，這些不確定性和風險在我們的 CVM 和 SEC 文件中詳細討論。此外，在通話過程中，我們將討論非國際財務報告準則的績效指標，這些指標不應孤立地考慮。

With that, I will turn the call over to David. David?

說完這些，我會把電話轉給大衛。戴維？

Thank you, Thais. Welcome, everyone, and thank you for joining us today. First, let me begin by thanking our incredible crew members for their passion and dedication. 2024 was a tough year for Azul. Like many airlines around the world, we were impacted by OEM supply chain and engine challenges, which created schedule uncertainty and operational disruption. This affected our customers and crew members in addition to a heavy financial impact of over a billion reais.

謝謝你們，泰國人。歡迎大家，感謝你們今天的到來。首先，我要感謝我們優秀的機組人員的熱情和奉獻精神。 2024 年對 Azul 來說是艱難的一年。與全球許多航空公司一樣，我們受到 OEM 供應鏈和發動機挑戰的​​影響，導致航班時刻表不確定和營運中斷。這不僅為我們的客戶和船員帶來了超過十億雷亞爾的沉重經濟損失。

Also, the Azul family and Brazil at large were severely impacted by a significant devaluation of the local currency and extreme floods in the state of Rio Grande do Sul, which resulted in the closure of the Porto Alegre Airport for over six months. Despite all these significant challenges, our crew members went above and beyond, taking care of each other and our customers on each and every flight. I am proud of them, and I cannot thank them enough.

此外，阿蘇爾家族和整個巴西都受到當地貨幣大幅貶值和南里奧格蘭德州特大洪水的嚴重影響，導致阿雷格里港機場關閉六個多月。儘管面臨這些重大挑戰，我們的機組人員仍然竭盡全力，在每一次飛行中互相照顧並照顧我們的客戶。我為他們感到驕傲，我對他們感激不盡。

Turning to slide 3, the Azul business model more than ever demonstrated its value thanks to our strategic and competitive advantages. The combination of a differentiated network with unique fleet flexibility, our high-growth business units, the lowest unit costs in the region, together with passionate crew members and supportive stakeholders is what allowed us to deliver the record results we present to you today.

翻到投影片 3，得益於我們的策略和競爭優勢，Azul 商業模式比以往任何時候都更能體現其價值。差異化網絡與獨特機隊靈活性、高成長業務部門、地區最低單位成本、熱情的船員和支持性利益相關者的結合，使我們能夠提供今天向您展示的創紀錄的業績。

Slide 4, I would like to describe what I think is the strongest of our competitive advantages, our network. From the beginning, Azul was designed to be different. Our focus has always been to grow the market, to access demand that has never been accessed before. While our competitors focus its operations in three cities of Brazil, resulting in high overlap, our unique fleet and network combination allows us to be the only carrier in 82% of our routes, connecting over 150 destinations, many of which are located in the fastest-growing regions of Brazil.

投影片 4，我想描述我認為我們最強大的競爭優勢—我們的網路。從一開始，Azul 就被設計得與眾不同。我們的重點一直是擴大市場，滿足以前從未滿足過的需求。雖然我們的競爭對手將業務集中在巴西的三個城市，導致重疊性很高，但我們獨特的機隊和網路組合使我們成為 82% 航線的唯一承運人，連接超過 150 個目的地，其中許多目的地位於巴西發展最快的地區。

Slide 5 is another clear way to see how differentiated our network truly is. In this chart, we show how much of each airline's capacity is in the airports where they have over 60% share. As you can see, Azul leads the global industry with 63% of our capacity deployed at airports where we are the most relevant carrier. This means we choose to fly where we are strong, and we are strong in airports where we choose to fly. This is in clear contrast to the industry expectations that, as we grew, we would inevitably face more competition.

投影片 5 以另一種清晰的方式展示了我們的網路的真正差異化。在這張圖表中，我們顯示了每家航空公司在其 60% 以上份額的機場的運力佔比。如您所見，Azul 在全球產業中處於領先地位，我們 63% 的運力部署在我們最相關的航空公司機場。這意味著我們選擇飛往我們實力雄厚的地區，我們選擇飛往的機場也是我們強大的。這與業界的預期形成了鮮明對比，業界認為，隨著我們的發展，我們將不可避免地面臨更多競爭。

In fact, the opposite has happened. We have grown our markets within our network, increasing our strength, and extending our competitive advantage. We truly built a unique business that allows us to succeed, even in the most challenging moments. Proof of that is the tremendous support we have received from all of our stakeholders, whom I would also like to thank. We have truly set up Azul to be successful for the long term.

事實上，情況恰恰相反。我們在網路內拓展了市場，增強了實力，擴大了競爭優勢。我們真正建立了一個獨特的業務，即使在最具挑戰性的時刻也能讓我們成功。證明這一點的是我們從所有利害關係人那裡得到了巨大的支持，我也要向他們表示感謝。我們確實為 Azul 的長期成功做好了準備。

With that, I will turn the time over to John to give you more details on our record results.

說完這些，我會把時間交給約翰，讓他向大家詳細介紹我們的記錄結果。

Thank you, John. Thank you, David. We are very proud of what we built, and I, too, would like to thank our outstanding crew members. On slide 6, you can see that we are excited to report another tremendous quarter with an all-time record revenue EBITDA and EBIT.

謝謝你，約翰。謝謝你，大衛。我們對自己建造的一切感到非常自豪，我也要感謝我們出色的船員。在第 6 張投影片上，您可以看到我們很高興地報告又一個出色的季度，收入 EBITDA 和 EBIT 創下了歷史新高。

Our revenue was up 10% year over year to a record 5.5 billion reais, with a strong RASC of BRL0.45 cents. Our record quarterly EBITDA of BRL2 billion, with a margin of 35.2%, and EBIT of 1.2 billion, reflects the strength of our unique business and competitive advantages, bringing Azul to industry-leading levels of profitability.

我們的營收年增 10%，達到創紀錄的 55 億雷亞爾，RASC 強勁成長至 0.45 美分。我們創紀錄的季度 EBITDA 為 20 億巴西雷亞爾，利潤率為 35.2%，EBIT 為 12 億，反映了我們獨特的業務和競爭優勢，使 Azul 的盈利水平達到行業領先水平。

On slide 7, we break down the capacity and unit revenue metrics for the quarter. Even with capacity growth of 11% year over year, and at the same time that fuel prices dropped 17% year over year, we sustained a historically strong RASC of BRL0.45 cents. This is a clear demonstration of how we can generate high-quality revenue in any macroeconomic environment. In addition to year over year trends, we also generated strong quarter over quarter improvements, even with Porto Alegre only partially reopening in October and not getting to full capacity until December of last year.

在第 7 張投影片上，我們細分了本季的產能和單位收入指標。即使運能年增 11%，同時燃料價格年減 17%，我們仍維持了歷史強勁的 RASC，即 0.45 美分巴西雷亞爾。這清楚地表明了我們如何在任何宏觀經濟環境下創造高品質的收入。除了同比趨勢外，我們還實現了環比強勁增長，儘管阿雷格里港去年 10 月僅部分重新開放，直到 12 月才達到滿載狀態。

As a result, we will see further revenue improvements as we head into the first quarter of this year and beyond. Overall, we see a disciplined industry environment with encouraging revenue trends and more unit revenue gains expected in the quarters ahead.

因此，隨著今年第一季及以後的到來，我們將看到收入進一步成長。總體而言，我們看到一個紀律嚴明的行業環境，收入趨勢令人鼓舞，預計未來幾季單位收入將有更多的成長。

Turning to slide 8, we highlight another one of our structural competitive advantages, the diversification of our revenue base. Our business units have done a great job of what we call growing beyond the metal, finding new and unique ways to increase our revenue outside of just ticket revenue. Our high-margin business units contribution to RASC grew from 15% in 4Q23 to a very strong 23% in 4Q24.

翻到第 8 張投影片，我們重點介紹了我們的另一個結構性競爭優勢，也就是收入基礎的多樣化。我們的業務部門在所謂的「超越金屬」成長方面做得非常出色，除了門票收入之外，我們還找到了新穎而獨特的增加收入的方式。我們的高利潤業務部門對 RASC 的貢獻從 2023 年第四季的 15% 成長到 2024 年第四季的 23%。

All units combined resulted in a positive impact of more than BRL450 million in the quarter and BRL1.5 billion in the year, accounting for 24% of our 2024 EBITDA. The investments we're making in people, technology, and products into these businesses is a key element of creating and extending our competitive advantages, allowing us to continue our profitable growth trajectory for years to come.

所有部門合計在本季度產生了超過 4.5 億雷亞爾的正面影響，在全年產生了 15 億雷亞爾的正面影響，占我們 2024 年 EBITDA 的 24%。我們在這些業務中對人才、技術和產品的投資是創造和擴大我們競爭優勢的關鍵因素，使我們能夠在未來幾年繼續保持獲利成長軌跡。

On slide 9, I would like to further highlight some key results from each of our business units. Our loyalty program, which continues to do well, now has more than 18 million members and increased 27% in gross billings ex-airline year over year. Our co-branded credit card, ranked best in the country, has total spending that represents 0.5% of Brazil's GDP. Let me say that again. 0.5% of the value of Brazil's GDP is spent on the Azul credit card.

在第 9 張投影片上，我想進一步強調我們每個業務部門的一些關鍵成果。我們的忠誠度計畫持續表現良好，目前擁有超過 1,800 萬名會員，航空公司總收入年增 27%。我們的聯名信用卡在全國排名第一，總消費佔巴西 GDP 的 0.5%。讓我再說一次。巴西 GDP 的 0.5% 是用 Azul 信用卡消費的。

Our vacations business continues to expand its network of agencies and stores throughout the country, resulting in an incredible 63% growth in gross billings in 2024. Our logistic business has returned to revenue growth as well, powered by a 9% increase in international revenue for the full year and a very impressive 54% growth in international revenue quarter over quarter.

我們的度假業務繼續在全國擴大其代理商和商店網絡，從而使 2024 年的總營業額實現了驚人的 63% 的增長。我們的物流業務也恢復了收入成長，全年國際收入成長了 9%，並且較上季成長了 54%。

In summary, the growth beyond the metal is strategic and is a key part of the Azul story and a fundamental element of our competitive advantages.

總而言之，超越金屬領域的成長具有戰略意義，是 Azul 故事的關鍵部分，也是我們競爭優勢的基本要素。

On slide 10, we focus on what is becoming yet another competitive advantage. Our cask is the lowest amongst our peers. Overall cask was down 6.5% year over year. Even more impressive is that despite an 18% devaluation of the local currency in the fourth quarter and almost 5% inflation in 2024, cask ex-fuel remained flat. This was driven by our laser focus on efficiency and productivity, two examples of which I will show on the next slide.

在第 10 張投影片上，我們專注於正在成為另一個競爭優勢的東西。我們的木桶價格是同行中最低的。整體木桶產量較去年同期下降 6.5%。更令人印象深刻的是，儘管第四季當地貨幣貶值 18%，2024 年通貨膨脹率接近 5%，但桶裝燃料價格仍保持穩定。這是由我們對效率和生產力的高度關注所推動的，我將在下一張投影片中展示其中的兩個例子。

As you recall from our past two earnings calls, our Elevate plan became a new way of managing our business. In fact, Elevate was so important to us in 2024 that it has been incorporated into our yearly strategic planning moving forward.

正如您從我們過去的兩次財報電話會議中所記得的那樣，我們的 Elevate 計劃成為了我們管理業務的新方式。事實上，Elevate 在 2024 年對我們來說非常重要，以至於它已被納入我們未來的年度策略規劃中。

Slide 11 shows two very beneficial initiatives of our Elevate plan, increased aircraft utilization and productivity, which has been key in driving down our unit cost. On the left, you can see how aircraft utilization has increased year over year. Among other reasons, this was accomplished by reducing aircraft ground time and optimizing our handling, catering, and air processes, leading to an increase in utilization of almost 13%.

投影片 11 展示了我們的 Elevate 計畫的兩個非常有益的舉措，即提高飛機利用率和生產率，這對於降低我們的單位成本至關重要。在左側，您可以看到飛機利用率逐年增加的情況。除其他原因外，這是透過減少飛機地面時間並優化我們的處理、餐飲和空中流程來實現的，從而使利用率提高了近 13%。

On the right, you can see that the airline today is 10% more productive in terms of ASKs per FTE compared to last year or at any time in our history. Therefore, it is fair to say that Azul has never been more productive and further gains are on the way.

在右側，您可以看到，與去年或歷史上任何時期相比，該航空公司目前的每 FTE 的 ASK 生產力提高了 10%。因此，可以公平地說，Azul 的生產力從未如此高，而且還在不斷增長。

Summing it all up on slide 12, you can see that the combination of our structural competitive advantages, growing business units, and lowest unit cost have put Azul back on the path of consistent profitable expansion. Despite its challenges, 2024 was the best year in our history in terms of EBITDA generation. 2025, in turn, is expected to be even brighter with significant revenue growth.

在第 12 張投影片上進行總結，您可以看到，我們的結構性競爭優勢、不斷增長的業務部門和最低的單位成本相結合，使 Azul 重新走上了持續盈利擴張的道路。儘管面臨挑戰，但就 EBITDA 而言，2024 年仍然是我們歷史上最好的一年。預計 2025 年將會更加光明，營收將大幅成長。

With that, we're in a position to reaffirm our outlook for 2025 with a projected record EBITDA of BRL7.4 billion. This superior operational performance is now paired with an optimized capital structure. Thanks to the comprehensive restructuring, we've negotiated with our bondholders, OEMs, and lessors.

由此，我們可以重申對 2025 年的展望，預計 EBITDA 將達到創紀錄的 74 億巴西雷亞爾。如今，卓越的營運表現與優化的資本結構相得益彰。由於全面重組，我們已經與債券持有人、原始設備製造商和出租人進行了談判。

I will now turn it over to Alex, who will provide more details about the capital restructuring.

現在我將把時間交給亞歷克斯，他將提供有關資本重組的更多細節。

Thanks, John. As we have been communicating consistently, our comprehensive restructuring focused on improving liquidity and cash generation, resulting in reduced debt and leverage. Over the next slides, we'll present in detail the robust capital structure that resulted from this plan.

謝謝，約翰。正如我們一直在溝通的那樣，我們的全面重組重點是提高流動性和現金產生能力，從而減少債務和槓桿率。在接下來的幻燈片中，我們將詳細介紹該計劃所產生的穩健資本結構。

On slide 13, you can see the different liability components we have eliminated from our balance sheet, resulting in almost BRL8.5 billion in debt being extinguished and an additional $500 million of new capital coming into the company. The first step of the plan was the elimination of equity obligations owed to lessors and OEMs, totaling approximately BRL3.1 billion reais in exchange for BRL96 million new Azul 4 preferred shares, which are being issued right now in the first quarter of 2025.

在第 13 張投影片上，您可以看到我們從資產負債表中消除的不同負債部分，從而消除了近 85 億巴西雷亞爾的債務，並為公司帶來了額外的 5 億美元新資本。該計劃的第一步是消除對租賃商和原始設備製造商的股權義務，總額約為 31 億雷亞爾，以換取 9,600 萬雷亞爾新的 Azul 4 優先股，這些優先股將於 2025 年第一季發行。

The BRL2.7 billion you see on this slide represent the present value of these obligations. The agreements also extinguished a significant part of the 2030 notes held by lessors and OEMs, with the remaining notes being exchanged for new unsecured notes due two years later in 2032, with an option for Azul to pay interest in kind. That is additional to the cash flow improvements of over $300 million across 2025, 26, and also negotiated with our commercial partners.

您在這張投影片上看到的 27 億巴西雷亞爾代表這些債務的現值。該協議還取消了租賃商和原始設備製造商持有的大部分 2030 年票據，剩餘票據將兌換為兩年後（2032 年）到期的新無擔保票據，Azul 可選擇以實物支付利息。這是在 2025 年和 2026 年期間超過 3 億美元現金流改善的基礎上的額外支出，也與我們的商業夥伴進行了協商。

Given the successful agreements with lessors and OEMs, we then moved on to negotiating with our bondholders. We managed to reach an agreement to equitize into preferred shares $785 million of the 2029 and 2030 notes. By April 30, 35% of the notes value will be converted into preferred shares, and 52.5% will be converted into new exchangeable notes, also with a pay-in-kind interest option. The remaining 12% shall be converted upon completion of an equity offering, raising at least $200 million.

鑑於與租賃商和 OEM 達成的成功協議，我們隨後開始與債券持有人進行談判。我們成功達成協議，將 2029 年和 2030 年票據中的 7.85 億美元轉換為優先股。到 4 月 30 日，35% 的票據價值將轉換為優先股，52.5% 將轉換為新的可交換票據，同時也提供實物支付利息選項。剩餘的 12% 應在完成股權發行後進行轉換，籌集至少 2 億美元。

By reaching these agreements, we were able to access the full gross proceeds of the super priority notes of $500 million. These transactions significantly improved Azul's capital structure and operational cash generation by eliminating not only the lessor and OEM equity issuance obligations, but also most of the 2030 lessor and OEM notes, as well as the 2029 and 2030 bondholder notes.

透過達成這些協議，我們能夠獲得 5 億美元超級優先票據的全部總收益。這些交易不僅消除了出租人和 OEM 股權發行義務，還消除了大部分 2030 年出租人和 OEM 票據以及 2029 年和 2030 年債券持有人票據，從而顯著改善了 Azul 的資本結構和營運現金產生。

None of this would have been possible without the support of our partners and investors, to whom I'm very thankful. Their support demonstrates how the aviation community and financial markets believe in the Azul business model.

如果沒有我們的合作夥伴和投資者的支持，這一切都不可能實現，我非常感謝他們。他們的支持顯示航空界和金融市場對 Azul 商業模式的信任。

Slide 14 shows the resulting share count of all of these agreements. On a fully diluted basis, once all convertible instruments are exchanged into shares, our total share count on equivalent preferred basis will be 2.3 billion shares. The shares issued to lessors and bondholders represent 85% of that base, compared to 30% before we started the restructuring.

幻燈片 14 顯示了所有這些協議的最終份額數量。在完全稀釋的基礎上，一旦所有可轉換工具都轉換為股票，我們的等值優先股總股數將為 23 億股。發行給出租人和債券持有人的股票佔該基數的 85%，而我們開始重組之前這一比例為 30%。

As you all know, before this restructuring, we had two equity instruments, the convertible debenture issued in 2020 and the lessor and OEM equity instrument, which together would already represent a 30% dilution to our shareholder base. Since the dilution of these instruments is already included in the 85%, the incremental dilution from the new agreement is 55%. This means that we exchanged 55% of the company for a total debt reduction of over BRL6.3 billion.

眾所周知，在此次重組之前，我們有兩種股權工具，即 2020 年發行的可轉換債券以及出租人和 OEM 股權工具，這些工具加起來已經對我們的股東基礎造成了 30% 的稀釋。由於這些工具的稀釋已經包含在 85% 中，因此新協議的增量稀釋為 55%。這意味著我們用該公司 55% 的股份換取了總計超過 63 億巴西雷亞爾的債務減免。

You can see that illustrated on slide 15. As we saw before, we reduced our debt by over BRL6.3 billion, including the new super priority notes we issued in January. If you do this simple math, this represents an implied valuation of over $2 billion. We have strengthened our balance sheet and can now turn our attention to expanding our margins and generating positive free cash flow.

您可以在投影片 15 上看到圖示。正如我們之前所看到的，我們減少了超過 63 億巴西雷亞爾的債務，其中包括我們在一月份發行的新的超級優先票據。如果你做這個簡單的數學計算，這代表著隱含的估值超過 20 億美元。我們已經加強了資產負債表，現在可以將注意力轉向擴大利潤率和產生正的自由現金流。

This has been the focus of a strategic planning effort we have just concluded and which John will now discuss. John?

這是我們剛完成的策略規劃工作的重點，約翰現在將對此進行討論。約翰？

Thanks, Alex. With a successful conclusion, we're now even more excited about our future. As I mentioned before, we have incorporated Elevate into our long-term strategic plan, as you can see on slide 16. Under a permanent safety mindset, we will focus on four major pillars to fly Azul into even brighter skies.

謝謝，亞歷克斯。圓滿結束後，我們對未來更加充滿期待。正如我之前提到的，我們已將 Elevate 納入我們的長期策略計劃，正如您在第 16 張投影片上看到的那樣。在始終堅持安全理念的指導下，我們將重點放在四大支柱，讓巴西航空飛向更光明的天空。

Cash generation and profitability, operational integrity, crew member engagement, and customer experience, underpinned by a new framework of governance. Azul is already one of the most profitable airlines in the world, and now with our financial restructure completed, the best is ahead of us.

現金創造和獲利能力、營運完整性、機組人員參與度和客戶體驗，以新的治理框架為基礎。巴西航空已經是世界上最賺錢的航空公司之一，現在我們的財務重組已經完成，最好的未來就在我們面前。

Finally, on slide 17, you can see how we will continue to expand profitability into 2025 and beyond. We still have significant fleet transformation upside to come, with more next-generation aircraft being delivered. Our business units continue to grow beyond our metal, delivering high margins and unit revenue expansion.

最後，在第 17 張投影片上，您可以看到我們將如何在 2025 年及以後繼續擴大獲利能力。隨著更多下一代飛機的交付，我們仍具有顯著的機隊轉型潛力。我們的業務部門繼續在金屬領域以外發展，實現了高利潤和單位收入的擴大。

Our new business management strategy will produce even lower unit costs and secure every additional revenue opportunity ahead of us. With our exclusive network, platform, and unique fleet flexibility, and the lowest cost in the region, we're very optimistic about the future.

我們的新業務管理策略將進一步降低單位成本並確保我們未來的每一個額外收入機會。憑藉我們獨特的網路、平台和獨特的機隊靈活性以及該地區最低的成本，我們對未來非常樂觀。

With that, David, Alex, Abhi, and I are available to answer your questions as I turn the call over to the operator.

當我將電話轉給接線員時，David、Alex、Abhi 和我可以回答您的問題。

(Operator Instructions) Savanthi Synth, Raymond James.

（操作員指示）Savanthi Synth，Raymond James。

Congratulations to the team on completing the current phase of your capital restructuring. Maybe, Alex, could you provide an update on the major cash flow components for 2025 and 2026 after what's been completed?

恭喜團隊完成目前階段的資本重組。也許，亞歷克斯，在完成這些工作之後，您能否提供 2025 年和 2026 年主要現金流組成部分的最新情況？

Yeah, I think it's still consistent with what we provided at Azul Day. If you look at the guidance for free cash flow that we showed, you can see the $7.4 billion EBITDA that we reaffirmed. And then you see the additional components of working capital, rent, CapEx, and interest. Obviously, those numbers were provided when the real was a little bit stronger than what it is today. I think around the budget time, we were at about $5.50. The real showed up to $6.20. Now we're at about $5.70.

是的，我認為它仍然與我們在 Azul Day 提供的內容一致。如果您查看我們展示的自由現金流指引，您將看到我們重申的 74 億美元 EBITDA。然後您會看到營運資金、租金、資本支出和利息等附加組成部分。顯然，這些數字是在雷亞爾比現在略強一點的情況下提供的。我認為在預算時間左右，我們的成本約為 5.50 美元。雷亞爾兌美元匯率升至 6.20 美元。現在約為 5.70 美元。

Obviously, there's a little bit of headwind here. But just to remind everyone, I think we've given these numbers in the past. But basically, when you see a 10% devaluation in the currency, to get back to breakeven on a free cash flow basis, we only need about a 6.5% increase to fares. And obviously, from $5.50 to $5.70, we're only talking about a 3% devaluation of the real. So the fare increase we would need to come back to that free cash flow guidance would be only about 2%, which is very much feasible, especially given the demand environment that we are seeing today.

顯然，這裡有一點逆風。但只是為了提醒大家，我想我們過去已經給過這些數字。但基本上，當貨幣貶值 10% 時，為了在自由現金流基礎上恢復收支平衡，我們只需要將票價提高 6.5% 左右。顯然，從 5.50 美元到 5.70 美元，我們談論的只是雷亞爾貶值 3%。因此，我們需要將票價上漲幅度調整到自由現金流指引值左右，只有 2% 左右，這是非常可行的，尤其是考慮到我們今天看到的需求環境。

So we've reaffirmed the $7.4 billion EBITDA, and I think the free cash flow is something that we'll also still continue to pursue for this year. I think that's what we all collectively are looking for. Clearly, we have a very sound strategy. Our EBITDA generation is best in class. But we all want to convert as much of that cash flow generation, of much of that EBITDA generation, into free cash flow going forward.

因此，我們重申了 74 億美元的 EBITDA，我認為自由現金流是我們今年仍將繼續追求的目標。我認為這就是我們大家共同追求的。顯然，我們有一個非常完善的策略。我們的 EBITDA 生成是同類中最好的。但我們都希望將盡可能多的現金流、大部分 EBITDA 轉化為未來的自由現金流。

And Savanthi, it's a strategic pillar that the whole company is focused on, right? And so every crew member at Azul is aware of it, and our metrics are driven by it. Our bonuses are linked to cash flow generation now.

而 Savanthi 是整個公司關注的策略支柱，對嗎？因此，Azul 的每位機組人員都知道這一點，而我們的指標也受此影響。我們的獎金現在與現金流產生掛鉤。

Yeah, and that interest number that we talked about already reflects all of the components of this equitization, right? The debt reduction, the pick option, right? So that is all consistent with everything that we've already announced so far.

是的，我們討論的利息數字已經反映了股權化的所有組成部分，對嗎？減少債務，選擇權，對嗎？這一切都與我們迄今為止宣布的所有內容一致。

That's helpful. Thank you. And then maybe just on kind of capacity, Abhi, just what are you expecting in terms of kind of the fleet deliveries this year and retirements, and how should we think about kind of domestic versus international growth as you kind of progress through the quarters?

這很有幫助。謝謝。然後也許只是就運力而言，Abhi，您對今年的機隊交付和退役有何預期，以及隨著您在接下來的幾個季度中取得進展，我們應該如何看待國內和國際成長？

Savi, so you will see a higher growth first six months of the year, mostly because of Porto Alegre. So you will see kind of a peak in second quarter, and then it will come down 3Q and 4Q. In terms of deliveries this year, really, it's only the E2. We have no Airbus deliveries this year. So our focus is going to be on the E2.

薩維，因此你會看到今年前六個月的成長速度更快，這主要歸功於阿雷格里港。因此，您會看到第二季出現峰值，然後在第三季和第四季下降。就今年的交付量而言，實際上只有 E2。今年我們沒有空中巴士交付。所以我們的重點將放在 E2 上。

Obviously, we're pushing Embraer and like every OEM in the world that has its challenges. It is a constant monitoring and a constant engagement with them. And in terms of retirements, we do have E1 retirements this year. We are selling some aircraft, and we have some ATR retirements as well. And so we're managing that.

顯然，我們正在推動巴西航空工業公司的發展，就像世界上每一家原始設備製造商一樣，它也面臨挑戰。這是一種持續的監控和與他們持續的接觸。就退休而言，我們今年確實有 E1 退休。我們正在出售一些飛機，也有一些 ATR 飛機退役。所以我們正在管理這個。

In terms of overall capacity, I think we're going to be somewhere in the 10% to 12% range, mostly driven by international. Domestic, I would say, is going to be high single digits in the 8% range and then international is going to be high. The reason international is much higher is because one of the largest OEM impacts we had last year was on the wide-bodies.

就整體運力而言，我認為我們的運力成長將在 10% 至 12% 之間，主要受國際市場的推動。我想說，國內市場的成長速度將達到 8% 左右的高個位數，而國際市場的成長率也將很高。國際價格高得多的原因是，去年我們受到的最大 OEM 影響之一是在寬體飛機上。

We had delays early in the year with aircraft that we were expecting that we didn't get. And then we had impact late in the year with Rolls-Royce engines severely impacting our wide-body fleet.So I would say; domestic, sort of high single digits, around 8%; overall capacity growth about 10% to 12%.

今年年初，我們預期的飛機延誤了，但我們並沒有得到它。然後我們在年底受到了影響，勞斯萊斯發動機嚴重影響了我們的寬體機隊。所以我想說；國內，大約是8%左右的高個位數；整體產能成長約10%至12%。

Victor Mizusaki, Bradesco.

布拉德斯科銀行的維克多·水崎 (Victor Mizusaki)。

I have two questions here. The first one, with regards to the financial restructuring, if I'm not mistaken, there is a plan to raise like BRL200 million of equity. So my first question is if you can comment about the status of this process. And the second one, Azul called a Shareholders' Meeting to approve the issuance of [ON] shares as part of the restructuring plan. So can we assume that controlling shareholders will subscribe this deal?

我這裡有兩個問題。第一個問題，關於財務重組，如果我沒記錯的話，有一個籌集約 2 億巴西雷亞爾股權的計劃。所以我的第一個問題是您是否可以評論一下這個過程的狀態。第二個是，Azul 召開股東大會，批准發行 [ON] 股票作為重組計畫的一部分。那麼，我們是否可以假設控股股東會認購這筆交易？

Yes, I'll take the second one, and then I'll give the first one to Alex. Yes, I think we're excited. I mean, David is on the call, and he's putting in money into the company right now. I think that's -- it's a bullish sign for the company overall. And we're also in the process of going to a single share class, right?

是的，我會拿第二個，然後我會把第一個給亞歷克斯。是的，我認為我們很興奮。我的意思是，大衛正在打電話，他現在正在向公司投入資金。我認為這對整個公司來說是一個利好訊號。我們也正在轉向單一股票類別，對嗎？

And so that's something that, as part of this restructuring process that will happen in about a year's time. And so seeing the controlling shareholders put new capital in, they're doing that at a slight premium to where the stock is today. I think that's also kind of a bullish sign that they believe in the company and are -- plan to be around. So I think that's a good thing.

這是重組過程的一部分，將在大約一年後完成。因此，看到控股股東投入新資本，他們這樣做的價格比現在的股價略高。我認為這也是一個樂觀的信號，表明他們相信該公司並且計劃繼續存在。所以我認為這是一件好事。

I'll let Alex kind of talk to kind of the final steps of the restructure.

我會讓亞歷克斯談談重組的最後步驟。

Yes. Thanks, Victor. Yes. So as we described, there are essentially 3 capital raises happening, right, as all part of the restructuring that we have already announced. The first one, which is happening right now is the equitization of the lessor and OEM obligations, which are going to generate about 96 million preferred shares at a price of BRL32 and some change, right?

是的。謝謝，維克多。是的。正如我們所描述的，基本上有 3 次融資正在進行，對吧，這都是我們已經宣布的重組的一部分。第一個，也就是現在正在發生的，是出租人和 OEM 債務的股權化，這將產生約 9,600 萬股優先股，價格為 32 巴西雷亞爾，還有一些變化，對嗎？

Then as also part of this restructuring, as John mentioned, the voting shareholders, the controlling shareholders are putting in more money into the company. That is also a capital increase that we have already announced, which will be made into ONs at the equivalent price of BRL4.50 per preferred share, which is about BRL0.06 per ordinary share.

然後，作為重組的一部分，正如約翰所提到的，投票股東、控股股東正在向公司投入更多資金。這也是我們已經宣布的增資，將以每股優先股 4.50 巴西雷亞爾（約合每股普通股 0.06 巴西雷亞爾）的等值價格轉為 ON。

And then there will be the equitization of the 2029 and 2030 notes. And then consistent with our bylaws and with Brazilian law, all of these capital raises allow for shareholders to participate. So shareholders can buy together with the lessors at BRL32.

然後將對 2029 年和 2030 年票據進行公平化。然後，根據我們的章程和巴西法律，所有這些融資都允許股東參與。因此股東可以與出租人一起以 32 巴西雷亞爾的價格購買。

They can buy together with the voting shareholders at BRL4.50 per preferred share, and then they will be able to equitize under the same conditions as the bondholders, and we have to do that until April 30, if you've seen that on our documentation, right? All of this is public information that we have already announced.

他們可以與有投票權的股東一起以每股 4.50 巴西雷亞爾的優先股價格購買，然後他們將能夠在與債券持有人相同的條件下進行股權化，我們必須在 4 月 30 日之前這樣做，如果你在我們的文件中看到了這一點，對嗎？這些都是我們已經公佈的公開資訊。

So we have to see how much interest there will be from the market on all these capital increases. And then as you've also seen from all of our announcements, there is a remaining 12.5% equitization of the 2029 and 2030 notes that do depend on a capital raise of $200 million. And so we will see the results. We're focused on implementing all of these capital increases, and then we will see where we are with regard to the remaining requirement.

因此，我們必須看看市場對所有這些增資會有多大興趣。然後，正如您從我們所有的公告中看到的那樣，2029 年和 2030 年票據的剩餘 12.5% 的股權化確實取決於 2 億美元的資本籌集。我們將會看到結果。我們專注於實施所有這些資本增加，然後我們將看看剩餘需求的進展。

(Operator Instructions) Rogério Araujo, Bank of America.

（操作員指示）美國銀行 Rogério Araujo。

I have a couple actually. One is regarding the number of shares that you just disclosed at BRL2.3 billion. Does it include the $200 million follow-on offer? And also in this restructuring, there is a clause saying the controller shareholders -- actually, there is a clause saying that management team and Board members, they may have 11% share in the future, post dilution. It's -- can you disclose a little bit of the terms of those 11% shares and if this is somehow included in this calculation?That's the first one.

事實上我有幾個。一是關於您剛才披露的股票數量為23億巴西雷亞爾。其中包括 2 億美元的後續報價嗎？此外，在這次重組中，有一條條款規定，控制股東——實際上，有一條條款規定，管理團隊和董事會成員在股權稀釋後，未來可能擁有 11% 的股份。您能否透露這 11% 股份的具體條款，以及這是否包含在計算中？第一個。

First question, it's not included, right? And so we did not include the $200 million capital raise because that's -- that can happen at any time in the future. And so we're giving the outstanding shares as of now. And yes, you are correct. There is a management incentive plan for the management team.

第一個問題，它不包括在內，對嗎？因此，我們沒有包括 2 億美元的融資，因為這可能會在未來的任何時候發生。因此，我們現在正在發放流通股。是的，你是對的。對管理團隊有管理激勵計畫。

It's performance-based and time-based from a retention standpoint. And so it can result in up to 10%, 11% dilution as you suggested. However, there are certain criteria to getting there and the compensation committee at Azul is defining what those terms are. And that is our new long-term incentive plan that will be available for the company for the years to come. So it extinguishes all old equity plans that we had, and this is the new equity incentive plan to the management team.

從保留的角度來看，它是基於績效和基於時間的。因此，正如您所說，它可能會導致高達 10%、11% 的稀釋。然而，要達到這個目標有一定的標準，Azul 的薪酬委員會正在定義這些條件。這就是我們新的長期激勵計劃，將在未來幾年為公司提供實施。因此，它取消了我們所有的舊股權計劃，這是針對管理團隊的新股權激勵計劃。

The second one is regarding a haircut that was made in the 2030 notes, if I'm not mistaken, about $244 million. You say in the release that this was done in exchange for other commercial agreements. Could you please clarify what commercial agreements does it include?

第二個是關於 2030 年票據的減記，如果我沒記錯的話，大約是 2.44 億美元。您在新聞稿中說，這樣做是為了換取其他商業協議。您能否澄清一下它包括哪些商業協議？

So there was a cash component that was paid with a significant discount to face value on those notes. And then there were other, let's say, commercial items in dispute, for example, maintenance reserve reimbursements or aircraft deliveries. It's mainly, I think, in general, selecting lessors and continuing with our commercial relationship with lessors under market conditions, right?

因此，在這些票據的支付方式中，現金部分以比票面價值高出許多的折扣形式進行。然後還有其他商業項目存在爭議，例如維修儲備金補償或飛機交付。我認為，總的來說，主要是選擇出租人，並在市場條件下繼續與出租人保持商業關係，對嗎？

We have a lot of growth into our future. And so some of the concessions or some of the commercial agreements that we have negotiated essentially locks in some future demand that Azul has for future aircraft deliveries with specific lessors or it settles some disputes that we had in the past.

我們的未來還有很大的發展空間。因此，我們談判達成的一些讓步或商業協議基本上鎖定了 Azul 未來向特定租賃商交付飛機的一些需求，或者解決了我們過去的一些糾紛。

But everything done -- as you probably know, we had [FTI] inside the company here kind of checking all of the agreements that we have negotiated, validating it to make sure that they qualify towards the $100 million annual cash flow improvement that we had as a mission, right, from our bondholders to be able to access the full $500 million and the equitization. And all of that has been certified and checked.

但一切都已完成——正如您可能知道的，我們讓 [FTI] 在公司內部檢查我們協商的所有協議，對其進行驗證，以確保它們符合我們作為使命所設定的 1 億美元年度現金流改善目標，對吧，從我們的債券持有人那裡能夠獲得全部 5 億美元和股權化。所有這些都已經過認證和檢查。

Savi Syth, Raymond James.

薩維西斯、雷蒙德詹姆斯。

Just, Abhi, I was wondering if you could provide a little bit more color on the current demand environment. I know there's a lot of noise. I think the Carnival timing is not great for 1Q, but you do also have easy comps coming up. But just curious what you're seeing both on kind of the leisure side and the business demand side here.

只是，Abhi，我想知道您是否可以提供更多關於當前需求環境的資訊。我知道有很多噪音。我認為狂歡節的時機對於第一季來說並不是很好，但你也會遇到一些輕鬆的比賽。但我只是好奇您在休閒和商業需求方面看到了什麼。

Hi Savi. So actually, we've been positively surprised with what we've seen January and especially February. You're right. Normally, with Carnival kind of first week of March, you would expect kind of a lame duck February, if you will, and then corporate demand coming back right after Carnival. But we've been actually reasonably positively surprised in February with the close-in revenue builds.

你好，薩維。事實上，我們對一月份，尤其是二月的業績感到非常驚喜。你說得對。通常情況下，由於狂歡節在三月的第一周舉行，所以你會預期二月會比較冷清，然後企業需求會在狂歡節結束後立即恢復。但實際上，我們對 2 月份收入的成長感到相當驚喜。

They've actually been better than last year, which is a good sign. We see a disciplined overall discount environment as well. So looking at corporate discounts, looking at travel agency discounts, we see that's pretty disciplined, which is a very good sign. Talking to our corporate customers, we see no signs of corporate demand slowdown or anyone trying to kind of pull back. We see a lot of groups demand.

他們實際上比去年表現更好，這是一個好兆頭。我們也看到整體折扣環境的規範。因此，透過查看企業折扣和旅行社折扣，我們發現這些折扣非常有紀律，這是一個非常好的跡象。與我們的企業客戶交談時，我們沒有看到企業需求放緩的跡象，也沒有看到任何人試圖撤退的跡象。我們看到很多團體有需求。

We see a lot of demand for in-person trainings and conventions, which has been quite good as well. So -- and for us, honestly, our operation has been much more stable than it was at the end of last year, especially on the international side. And so for us, just having less disruptions and less volatility has been a really good positive sign as well. So overall, I think I've been positively surprised with what I've seen so far in January, February. Next week is Carnival.

我們看到對面對面培訓和會議的需求很大，這也相當不錯。所以——對我們來說，老實說，我們的營運比去年年底穩定得多，尤其是在國際方面。因此，對我們來說，減少干擾和波動也是一個非常好的正面訊號。所以總的來說，我認為我對一月和二月迄今為止看到的情況感到驚訝。下周是狂歡節。

So it's going to be dead. But we do expect strong corporate rebound March 10 and onwards. So I would say, overall disciplined environment, overall corporate discounts, disciplined as well. And our operation has been stable, which has been a very good sign also.

所以它將會死亡。但我們確實預期 3 月 10 日及以後企業將強勁反彈。所以我想說，整體而言，紀律嚴明的環境，整體而言，企業折扣也同樣紀律嚴明。我們的營運一直很穩定，這也是一個非常好的跡象。

That's helpful. Thanks. If I might, just are you seeing any differences between kind of domestic versus international?

這很有幫助。謝謝。如果可以的話，您是否看到國內和國際之間有什麼區別？

International continues to be good. And it was interesting because even when the currency kind of went to BRL6.30, we didn't really see a slowdown in international either. And now it's at BRL5.70 and it looks good. We've actually had to increase a little bit of capacity for the Carnival time frame because we were a little bit too booked actually. But it looks stable to me.

國際情勢持續向好。有趣的是，即使貨幣升至 6.30 巴西雷亞爾，我們也沒有看到國際經濟放緩。現在價格為 5.70 巴西雷亞爾，看起來不錯。事實上，我們不得不在嘉年華期間稍微增加一點容量，因為我們的預訂量實際上有點太多了。但在我看來它看起來很穩定。

The normal seasonality, spring time frame, very strong in the US, Europe, a little bit weaker. But as we look ahead to the Northern summer, we see Europe coming back strong and the US kind of holding its own. So we announced a Recifi to Porto. That's already selling, and we will have a couple of more announcements coming down the pike next couple of weeks as well.

正常的季節性，春季期間，美國非常強勁，歐洲稍微弱一些。但當我們展望北半球的夏季時，我們看到歐洲強勢回歸，而美國則保持穩定。因此我們宣布了雷西菲飛往波爾圖的航線。這些產品已經熱銷，未來幾週我們將發布更多公告。

So we also announced -- come back to Argentina for the peak winter season here. We're excited about Mendoza and Barajas. So overall, pretty stable international, strong, I think, kind of the commentary that I'm hearing all around.

因此我們也宣布——回到阿根廷迎接這裡的冬季旺季。我們對門多薩和巴拉哈​​斯感到很興奮。因此，總體而言，國際情況相當穩定，強勁，我認為，這就是我所聽到的評論。

Guilherme Mendes, JPMorgan.

摩根大通的吉列爾梅門德斯 (Guilherme Mendes)。

So regarding the proposal of the M&A with GOL, can you share some expectations regarding the [CAT] analysis for the proposed M&A in terms of timing and potential remedies? And the second one on the synergies. I mean, what is the timing for your expectation to capture synergies in terms of revenues and in terms of costs?

那麼關於與 GOL 的併購提議，您能否分享對擬議併購的 [CAT] 分析在時間和潛在補救措施方面的一些期望？第二個是關於協同效應。我的意思是，您預計什麼時候能在收入和成本方面實現綜效？

Yeah, hi, Guilherme. So obviously, we cannot comment too much publicly here. But what I will tell you is that we're really confident in the technical analysis and what we propose, right? So let me just give you the quick highlights of what we see as the main benefits to the consumer and to Brazil. First is, we have very low overlap between Azul's network and GOL's network, right?

是的，你好，Guilherme。顯然，我們不能在這裡公開發表太多評論。但我要告訴你的是，我們對技術分析和我們提出的建議非常有信心，對嗎？因此，請容許我簡要介紹一下我們認為對消費者和巴西最主要的好處。首先，Azul 的網路和 GOL 的網路重疊度很低，對嗎？

And we think that the low overlap is a key driver to future growth. We look at the Brazilian market overall has not grown significantly for the last several years. We want to get to 200 cities served, in Brazil, and we think we can do that when we have these networks that are not overlapping that are very, very complementary to connect together, right?

我們認為低重疊度是未來成長的關鍵驅動力。我們來看，巴西市場整體在過去幾年並沒有顯著成長。我們希望在巴西為 200 個城市提供服務，我們認為，當我們擁有這些不重疊、相互補充且可以連接在一起的網絡時，我們就能做到這一點，對嗎？

So we really believe that on the technical case here that it is a case of growth of adding service. We believe that many more cities in Brazil, for example, should and will have service to international destinations, right?And so we think that, that's a key element of growth as well.

因此，我們確實相信，從技術角度來看，這是一個增加服務的成長案例。我們相信，巴西的更多城市應該、也會開闢國際航線，對嗎？所以我們認為這也是成長的關鍵因素。

And also, we think that we can build an airline that is going to be able to compete globally when it comes to fleet, when it comes to engines, when it comes to OEMs, when it comes to access to capital. And those are going to be really, really critical to keep this market growing. So all of this, we think, is our technical case. We see significant consumer benefit coming from this, and that's the case that we're putting forward.

此外，我們認為，我們可以建立一家在機隊、發動機、原始設備製造商和資本獲取方面都具有全球競爭力的航空公司。這些對於保持市場成長來說確實至關重要。所以我們認為，所有這些都是我們的技術案例。我們看到消費者由此獲得巨大利益，這就是我們提出的案例。

Michael Linenberg, Deutsche Bank.

麥可‧林伯格，德意志銀行。

Mike, we can't hear you.

麥克，我們聽不到你說話。

Yes, we can't hear Mike. We'll try to get back to him. If there are any other questions, we can move on. Otherwise, I think we're done.

是的，我們聽不到麥克的聲音。我們會盡力回覆他。如果還有其他問題，我們可以繼續。否則，我想我們就完了。

Okay. So this closes our Q&A session for today. I'll turn it over now to John so that we can -- for closing remarks.

好的。今天的問答環節到此結束。現在我將把發言權交給約翰，以便我們能夠——進行結束語。

Well, I'd like to thank everybody. Obviously, a lot of information. Our IR team, Alex, Abhi, myself will be available to talk to you about Azul going forward. A lot of great things happening, lowest cost, highest EBITDA margins, I think, in close to the world right now. And so we're very, very excited about the future.We fixed the balance sheet now. Now we're off to the races, and we appreciate the support of all of our stakeholders, and we're going to continue to grow a very profitable business. Thanks, everybody.

好吧，我想感謝大家。顯然，有很多資訊。我們的 IR 團隊、Alex、Abhi 和我本人將隨時與您討論 Azul 的未來發展。我認為，目前世界上正在發生很多偉大的事情，成本最低，EBITDA 利潤率最高。所以我們對未來感到非常非常興奮。我們現在修復了資產負債表。現在我們已經開始比賽，我們感謝所有利益相關者的支持，我們將繼續發展非常有利可圖的業務。謝謝大家。

This concludes Azul's audio conference call for today. Thank you very much for your participation, and have a good day.

今天的 Azul 音訊電話會議到此結束。非常感謝您的參與，祝您有愉快的一天。