november 17, 2008ri.voegol.com.br/arquivos/pres3q08_confcall_eng_vfinal.pdfoperating income of...

3Q08 Results PresentationNovember 17, 2008

1This presentation is subject to copyright and may not be copied or used without GOL’s express consent

GOL Webcast 3Q08

Highlights 3Q08

Net Revenues of R$1.8 billion in 3Q08 (+37% y-o-y)

Operating income of R$61.2 mm (3.4% margin)

Consolidated CASK = R$17.4 cents / ASK

Operating Performance in 3Q08

19 additional daily flight frequencies

Breakeven load factor: 57.9% (-19.9pp over 2Q08)

Load factor: 60% (- 4.6pp over 2Q08)

Capacity (ASK): -7% over 2Q08

Pax volumes (RPK): -14% over 2Q08

Yield: R$27 cents (+39% over 2Q08)

3Q08 Brazil domestic RPK growth of 8.7% (1, 2)

High Demand Growth

(1) 3Q08 vs. 3Q07(2) Source: ANAC


GOL Webcast 3Q08

Synergies from Restructuring

Flight Network GTA and VRG flight network were operated separately

VARIG aircraft could only operate VARIG destinations

Each company had and used separate parts inventory

GTA pilots could not flight VRG aircraft and vice-versa

Each company had different systems, operated and maintained separately

Before Restructuring Current Structure

Operations

IT Systems

Estimated Gains

~R$20mm per year

~R$105mm per year

~R$55mm per year

Integrated network

Integrated network

Integrated inventory

Integrated systems

Integrated network

GTA and VRG merged into one airline on Sep 30, 2008


GOL Webcast 3Q08

14.914.5

15.7

14.7

16.5

14.9

18.0

13.7

19.9

14.6

20.8

13.2

18.2

16.7

17.4

14.2

13.1

14.7

16.3

14.814.315.3

12.0

13.0

14.0

15.0

16.0

17.0

18.0

19.0

20.0

21.0

22.0

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08

50

60

70

80

90

100

110

120

130

RASK CASK WTI

RASK and CASK Evolution

US$ / barrel (1)

Consolidated data, USGAAP(1) Quarterly average

R$ cents

ATC Restrictions

ANAC Restrictions

VRG Acquisition

GTA and VRGNew Networks

Integrated Network

CADE Approval for VRG Acquisition

R$ 4.2c


GOL Webcast 3Q08

More flight options

Better segmentation

Network Integration

MacapMacapáá

FortalezaFortaleza

NatalNatal

RecifeRecife

CuiabCuiabáá

SalvadorSalvador

VitVitóóriaria

Porto SeguroPorto Seguro

Campo GrandeCampo Grande

AssunAssunççãoão

Panama City

ManausManaus

MaringMaringáá

São LuisSão Luis

Boa VistaBoa Vista

Buenos AiresBuenos Aires

Rio BrancoRio Branco

JoãoJoão PessoaPessoa

Porto VelhoPorto Velho

Porto AlegrePorto Alegre

RosarioRosario

Caxias do SulCaxias do Sul

AracajuAracaju

Santiago Santiago

TeresinaTeresina

LimaLima

GoiâniaGoiânia

Campina GrandeCampina Grande

PetrolinaPetrolina

CampinasCampinas

Santa CruzSanta Cruz

BelBeléémmSantarSantaréémm

Montevideo

Rio de Janeiro

São Paulo

IlhIlhééusus

CordobaCordoba

FozFoz do Iguado Iguaççuu

LondrinaLondrina

Juazeiro do NorteJuazeiro do Norte

CuritibaCuritibaJoinvilleJoinville

ChapecChapecóó

B. HorizonteB. Horizonte

ImperatrizImperatriz

PalmasPalmas

BrasBrasíílialia

MarabMarabáá

Florianópolis

UberlandiaUberlandia

Navegantes

Pres. Pres. PrudentePrudente

Cabo Frio

MacapMacapáá

FortalezaFortaleza

NatalNatal

RecifeRecife

CuiabCuiabáá

SalvadorSalvador

VitVitóóriaria




Panama City

ManausManaus

MaringMaringáá

São LuisSão Luis

Boa VistaBoa Vista



JoãoJoão PessoaPessoa



RosarioRosario


AracajuAracaju

Santiago Santiago

TeresinaTeresina

LimaLima

GoiâniaGoiânia


PetrolinaPetrolina

CampinasCampinas



Montevideo

Rio de Janeiro

São Paulo

IlhIlhééusus

CordobaCordoba


LondrinaLondrina



ChapecChapecóó



PalmasPalmas

BrasBrasíílialia

MarabMarabáá

Florianópolis


Navegantes


Cabo Frio

FortalezaFortaleza

RecifeRecife

SalvadorSalvador

ManausManaus



Santiago Santiago

Rio de Janeiro

São PauloCuritibaCuritiba


BrasBrasíílialia

Florianópolis

BogotaBogota

CaracasCaracas

FortalezaFortaleza

RecifeRecife

SalvadorSalvador

ManausManaus



Santiago Santiago

Rio de Janeiro

São PauloCuritibaCuritiba


BrasBrasíílialia

Florianópolis

BogotaBogota

CaracasCaracas

MacapMacapáá

FortalezaFortaleza

NatalNatal

RecifeRecife

CuiabCuiabáá

SalvadorSalvador

VitVitóóriaria




Panama City

ManausManaus

MaringMaringáá

São LuisSão Luis

Boa VistaBoa Vista



João PessoaJoão Pessoa



RosarioRosario


AracajuAracaju

Santiago Santiago

TeresinaTeresina

LimaLima

GoiâniaGoiânia


PetrolinaPetrolina

CampinasCampinas



Montevideo

Rio de Janeiro

São Paulo

IlhIlhééusus

CordobaCordoba


LondrinaLondrina



ChapecChapecóó



PalmasPalmas

BrasBrasíílialia

MarabMarabáá

Florianópolis


Navegantes


Cabo Frio

MacapMacapáá

FortalezaFortaleza

NatalNatal

RecifeRecife

CuiabCuiabáá

SalvadorSalvador

VitVitóóriaria




Panama City

ManausManaus

MaringMaringáá

São LuisSão Luis

Boa VistaBoa Vista






RosarioRosario


AracajuAracaju

Santiago Santiago

TeresinaTeresina

LimaLima

GoiâniaGoiânia


PetrolinaPetrolina

CampinasCampinas



Montevideo

Rio de Janeiro

São Paulo

IlhIlhééusus

CordobaCordoba


LondrinaLondrina



ChapecChapecóó



PalmasPalmas

BrasBrasíílialia

MarabMarabáá

Florianópolis


Navegantes


Cabo Frio

More connectivity

Less redundancy+ =

More efficient network

Increased load factors

VRG Network GTA Network Consolidated Network+ =

Caracas

Bogota


GOL Webcast 3Q08

Highly Efficient Consolidated Network

MacapMacapáá

FortalezaFortaleza

NatalNatal

RecifeRecife

CuiabCuiabáá

SalvadorSalvador

VitVitóóriaria




Panama City

ManausManaus

MaringMaringáá

São LuisSão Luis

Boa VistaBoa Vista






RosarioRosario


AracajuAracaju

Santiago Santiago

TeresinaTeresina

LimaLima

GoiâniaGoiânia


PetrolinaPetrolina

CampinasCampinas



Montevideo

Rio de Janeiro

São Paulo

IlhIlhééusus

CordobaCordoba


LondrinaLondrina



ChapecChapecóó



PalmasPalmas

BrasBrasíílialia

MarabMarabáá

Florianópolis


Navegantes


Cabo Frio

BogotaBogota

CaracasCaracas

MacapMacapáá

FortalezaFortaleza

NatalNatal

RecifeRecife

CuiabCuiabáá

SalvadorSalvador

VitVitóóriaria




Panama City

ManausManaus

MaringMaringáá

São LuisSão Luis

Boa VistaBoa Vista






RosarioRosario


AracajuAracaju

Santiago Santiago

TeresinaTeresina

LimaLima

GoiâniaGoiânia


PetrolinaPetrolina

CampinasCampinas



Montevideo

Rio de Janeiro

São Paulo

IlhIlhééusus

CordobaCordoba


LondrinaLondrina



ChapecChapecóó



PalmasPalmas

BrasBrasíílialia

MarabMarabáá

Florianópolis


Navegantes


Cabo Frio

BogotaBogota

CaracasCaracas

Consolidated Network

Separate Network

Flights/day(average round-trip)

794 flights per day

Eliminate

redundancies

To create more

flights options

Better slot utilization in CGH

No redundancy

(1)

CGH-SDU 42 32

GRU-SSA 7 4

GIG-REC 6 5

CGH-POA 10 9

BSB-SSA 6 4

GRU-FOR 4 2

CGH-VIX 2 4

CGH-CXJ - 2

GIG-BSB 9 11

CGH-LDB - 1

CGH-MGF - 1

CNF-CWB 2 3

(1) CGH (Congonhas, SP); SDU (Santos Dumont, RJ); GRU (Guarulhos, SP); SSA (Salvador, BA); GIG (Galeão, RJ); REC (Recife, PE); POA (Porto Alegre, RS); BSB (Brasília,

DF); FOR (Fortaleza, CE); VIX (Vitória, ES); CXJ (Caxias do Sul, RS); LDB (Londrina, PR); MGF (Maringá, PR), CNF (Confins, MG), CWB (Curitiba, PR)


GOL Webcast 3Q08

(1) Consolidated

Disciplined Capacity Growth

mm ASKs 1Q08 2Q08 3Q08 4Q08E 2009E

Domestic ASKs (1)

8,072 8,382 7,998 8,100 34,000

q-t-q growth 7% 4% -5% 1% 4%

y-o-y growth 36% 22% 16% 7% 4%

Internacional ASKs (1)

2,986 2,295 1,913 1,600 6,500

q-t-q growth 39% -23% -17% -16% -26%

y-o-y growth 182% 15% -7% -26% -26%

Total ASKs (1)

11,058 10,677 9,911 9,700 40,500

q-t-q growth 14% -3% -7% -2% -2%

y-o-y growth 58% 21% 11% - -2%

Net Aircraft Returns (1)

(3) 2 6 - -


GOL Webcast 3Q08

Capacity and Network Expansion

Flights/DayNumber of Operating

Aircraft(average)

RPK (MM)

ASK (MM)

2Q08 3Q08

+13.6%

3Q07

-5.1%

109103

91

5,470

6,8975,944

+8.7%

-13.8%

2Q083Q07 3Q08

8,941

10,6779,912

+10.9%

-7.1%

Jun/08 Sep/08

740 730

-1.4%770

-5.2%

Sep/07

2Q083Q07 3Q08


GOL Webcast 3Q08

Net Revenues

Higher Volumes (3Q08 vs 3Q07)

RPK: +8.7%

Average Fleet: +13.6%

ASK: +10.9%

Load factor: -1.2 p.p. 60.0%

Low Fares (3Q08 vs 3Q07)

Average Fares: +25.0%

Yield: +24.7%

RASK: +23.7%

Breakeven Load Factor: -1.9 p.p.

Ancillary Revenues (3Q08 vs 3Q07)

R$ 178.0MM (55.0% increase over 3Q07)

Net RevenuesR$ MM

3Q08

1,303.5

1,788.3

+37.2%

3Q07


GOL Webcast 3Q08

CASK(R$ cents)

EBITDAR R$ million

RASK(R$ cents)

EBITDAR Margin

Profitability - 3Q07 x 3Q08USGAAP

3Q07 3Q083Q07 3Q08 3Q07 3Q08

193.4

259.9

14.58

18.04

+23.7%

14.23

CASK Ex-Fuel

+ 13.6%

+22.4%

14.9% 14.5%

3Q07 3Q08

5.54

7.55

+36.3%

Fuel / ASK

17.42

+34.4%


GOL Webcast 3Q08

Net Financial Results

Financial Expense (R$ MM)

Financial Income (R$ MM)

3Q08 Net Financial Results: -R$399.8 MM

3Q083Q07

62.0

4.5

3Q08

-33.2

-96.4190.5%

3Q07

Investment of Cash Balances• R$723.8mm of cash invested

• Average earning rate of 13.0% in BRL

Long-term Financing• R$2.1 billion (including capital leases)

• Average maturity of 7.2 years

• Average interest rate of 6.2%

(1) Per annum, as of Sep 30, 2008

(1)

-92.8%


GOL Webcast 3Q08

Net Income Composition

Net Loss3Q08

Net Income3Q07

Taxes

Net Financial Results

Net Revenues

Fuel Costs

Commercial Expenses

Other Operating Expenses

Salary Expenses

3Q08 EPS: -R$1.47/share

-US$0.88/ADSNet Margin: 3.5% Net Margin: -16.5%

R$ million USGAAP

-294.3

45.5

-45.8

+484.7

-94.8

-253.3

-60.4

-431.4

+44.2


GOL Webcast 3Q08

Cash Flow Evolution

Operating Activities

2Q08

Cash. Cash

Equivalents and

Short-term

Investments:

737.7

Net Decreasein Cash (3Q08)

Investing Activities

Financing Activities

3Q08

Cash. Cash

Equivalents and

Short-term

Investments:

723.8

R$ million USGAAP

-13.9

-206.2

-17.4(1)

209.7

(1) Excluding R$89.3mm in change in available-for-sale securities in 3Q08 as defined by SFAS 115


GOL Webcast 3Q08

Investment Plans and Financing

13

Capex (R$mm) 2008-2010

R$mm

Aircraft Acquisition 1,400

Pre-Delivery Payments 1,100

Other Investments (Hangar, IT, Spare Parts) 800

Total 3,300

Financing Sources (R$mm) 2008-2010

R$mm Cost Term

Aircraft Loan 1,200 ~5% pa ~12 years

Pre-Delivery Payment Facilities 970 ~5% pa ~2 years

Other Capex 350 ~6% pa ~7 years

Own Resources 780

Total 3,300


GOL Webcast 3Q08

USD Exposure

Exposure

Hedge

(1) Per annum, on Sep 30, 2008

Sep 30, 08E 3Q08E

USGAAP USGAAP

Assets Liabilities US$mm

US$mm US$mm Term Interest¹ Fuel $451

Cash in USD $98 Capital Leases $580 12.0a 5,00% Leasing $79

Aircraft Deposits $54 PDP Facility $250 1.3a 4,65% Insurance $6

Aircraft $580 Senior Notes $225 8.5a 7,25% PDP (cash portion) $4

Perp. Notes $200 na 8,75% Debt Amortization (cash) $20

IFC Loan $42 4.8a 6,03% Debt Interest $17

Bank Loan $60 <1.0a 4,15%

Others $75 na na

---------- ---------- ----------

TOTAL $732 TOTAL $1.432 TOTAL $577

Net Balance Sheet Exposure $700

Hedge Ratio

4Q08 46%

1Q09 25%

2Q09 12%

3Q09 2%

4Q09 2%

FX Hedge on September 30, 2008

Medium Term Obligations

Exposure (cash)Balance Sheet Exposure (non-cash)


GOL Webcast 3Q08

9

25 3552

6474

8518 20

1611

72

31

4040

4040

28 11

111

38

104 108115

121127

5.5

5.65.45.5

6.8

9.0

2007A 2008E 2009E 2010E 2011E 2012E

4

5

6

7

8

9

10

Fleet plan to facilitate profitable growth and reduce costs

Order for 167 737-800NGs (32 delivered)

Fleet Plan

737 – 800s 737 – 700s 737 – 300s737 – 800 SFPs767 – 300s

Average Fleet Age (years)


GOL Webcast 3Q08

Guidance

(1) Balance sheet debt and capital leases plus 7x annual rent, less cash.

(2) US GAAP. Total shares outstanding are based on general estimates and assumptions. The number of shares in the actual calculation of EPS will likely be different from those set forth above

General Guidance 2008E (+/-) 2008E (+/-) Variation 2009E (+/-)

(Consolidated, USGAAP) Previous Revised % Revised

Domestic Market Growth (% RPKs) na 8.5 - 6

Pax Transported (mm) 26 26 - 29

ASKs, System (billion) 41.3 41.3 - 40.5

Domestic 32.5 32.5 - 34

International 8.8 8.8 - 6.5

Fleet (end of period) 104 104 - 108

RPKs, System (billion) 25.8 25.8 - 25.8

Cargo and Other Revenues (R$ million) 500 550 10 650

Departures (000) 275 275 - 290

CASK ex-fuel (R$ cents) 9.4 9.4 - 8.9

Fuel liters consumed (mm) 1,350 1,370 1 1,250

Fuel Price (R$ / liter) 2.3 2.05 -11 1.9

Average WTI (US$ / barrel) na 105 - 85

Average Exchange Rate (R$ / US$) 1.67 1.77 6 1.95

Estimated Tax Rate (%) 25 18 -7 pp 23 - 25

Capital Expenditures (R$ mm) 950 950 - 1,150

Total Adjusted Net Debt (1)

/ Total Cap. (%) 60 66 +6 pp 60

Average Shares Outstanding (mm) (2)

200.2 200.2 - 200.0


GOL Webcast 3Q08

Competitive Strengths

Custos

Baixos

Maiores

Taxas de Ocupação

Preço Justo com

Serviço de Alto

Valor Agregado

Crescimento

Sustentável e

Rentabilidade

Lower

Costs

Higher Load

Factors

Low Fares and

Differentiated

Services

Profit

Growth

This presentation contains forward-looking statements relating to the prospects of the business. estimates foroperating and financial results. and those related to growth prospects of GOL. These are merely projections and. assuch. are based exclusively on the expectations of GOL’s management concerning the future of the business and itscontinued access to capital to fund the Company’s business plan. Such forward-looking statements depend.substantially. on changes in market conditions. government regulations. competitive pressures. the performance ofthe Brazilian economy and the industry. among other factors and risks disclosed in GOL’s filed disclosuredocuments and are. therefore. subject to change without prior notice.

november 17, 2008ri.voegol.com.br/arquivos/pres3q08_confcall_eng_vfinal.pdfoperating income of...

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