sala wealth summit 2012 - ettore poggi

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A F R I C A A S I A A U S T R A L A S I A E U R O P E L A T I N A M E R I C A M I D D L E E A S T

Private Aircraft��Spreading your wings to reach new heights: The ExecuJet Story

P R E S E N T A T I O N B Y

Ettore Poggi Managing Director, ExecuJet

W E A L T H S U M M I T



Justin Divaris has a business degree and is the CEO of the Daytona Group. Justin is an entrepreneur with a passion for sports cars. He spearheaded the successful launch of Aston Martin in South Africa and as well as achieving record sales for Rolls-Royce since taking over the brand. Justin has built a powerful network of exotic and sports vehicle clientele over the years and has placed a major emphasis on the relationship marketing of all the brands in the Daytona stable. Daytona has embraced this concept in the knowledge that high-end clientele consume exclusive brands from vastly different retail and service arenas, yet these brands often reflect similar needs, desires, buying patterns and personalities. Daytona has established a group of companies that provide the worlds most sought after brands and in doing so, has catered for different needs of its valued clients.

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Ettore Poggi joined ExecuJet at Lanseria Airport in 2002 as Managing Director for South Africa, affiliated to the ExecuJet Aviation Group based in Switzerland. As a member of the Group Management Committee, some of his varied responsibilities include general management, marketing and sales activities to promote a range of private luxury jets, supplier relations, and human resources. ExecuJet offers a broad range of professional services such as new and pre-owned aircraft sales, aircraft management on behalf of the owner, charter, FBO and maintenance. The staff complement has grown to 285 rapidly over the last few years, with the construction of the Cape Town facility being completed in 2009.

Born in Johannesburg to Italian parents in April 1954, Ettore spent his school years at Maritz Brothers College, Observatory. He continued his education at the University of the Witwatersrand, where he received his Bachelor of Science Degree in Applied Mathematics and Computer Science. Ettore joined Persetel Africa in 1982, later to be renamed Comparex, and listed on the Johannesburg Stock Exchange a company which is the largest supplier of IT services in Southern Africa. Starting as a Systems Engineer, he carried out installations of major computer systems at large financial institutions, and provided ongoing support and maintenance on those systems. From Regional to National Engineering Manager, he was responsible for roughly 300 hardware and software engineers countrywide, and was then promoted to Chief Executive of Operations. With his final rise to Regional Chief Executive, the Gauteng region of 1600 employees fell under his control, representing 70% of group revenue and profits. Ettore’s major areas of responsibility included general management planning and reporting, sales, outsource activities and after sales support and maintenance. The company’s revenue increased from R600 million to R1,600 million during his tenure.

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is proudly supported by:

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•  www.sa-la.org

•  [email protected]

•  +27 (0) 791787867



SPREADING YOUR WINGS EXECUJET SOUTH AFRICA

MARCH 2012

EXECUJET AVIATION GROUP

Contents •  Civil Aviation

•  Business Jets

•  Industry Wealth

•  Wealth Creation Tool

•  Aviation Safety

•  ExecuJet Overview and Offering

Civil Aviation

COMMERCIAL

GENERAL

BUSINESS

PRIVATE

Business Jets

Large Cabin: + stateroom Long Range: 6000nm (12000km) Pax: 12-16 Price: +$50m

Mid-size Cabin Mid-Range: 4000nm (7400km) Pax: 8-10 Price $26m

Small Cabin Short Range: 1900nm (3600km) Pax: 8 Price: $12m

Aircraft Shipments

Source: Gama

Industry Wealth - Revenue vs. MSCI

Source: Gama, Morgan Stanley

Regional Historical Delivery

Source: Gama

Regional 10 and 20-Year Delivery

North America 2011-2020: 4,200 2021-2030: 5,400

Latin America 2011-2020: 925 2021-2030: 1,200

Europe 2011-2020: 1,900 2021-2030: 2,200

Russia & CIS 2011-2020: 525 2021-2030: 1,010

China 2011-2020: 960 2021-2030: 1,400

Middle East 2011-2020: 410 2021-2030: 765

India 2011-2020: 385 2021-2030: 945

Asia Pacific 2011-2020: 370 2021-2030: 605 Africa

2011-2020: 325 2021-2030: 475

Source: Bombardier Forecast 2011

Industry Wealth - World Shipments (#)

Source: Gama – shipment database 2010

Industry Wealth - World Demand (US$)

Source: Exvere Inc. Nov 2011

Industry Wealth - Residual Values

30%

40%

50%

60%

70%

80%

90%

100%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Sale

Pric

e (%

of N

ew P

rice)

Aircraft Age (years)

Challenger 604/605 Sales

2011 Sales

2008 Sales

2005 Sales

Wealth – Asset Depreciation

2.5%-4.5% depreciation per

annum

To say “you cannot justify your use of Business Aviation economically” would expose a fundamental

misunderstanding of your core enterprise, your growth strategies, your culture and how you apply

your most critical resources.

Wealth Creation - Reflections

Wealth Creation - Acknowledge •  Overcome Scheduled Culture

- “How long do you need at destination?” - Multiple destinations - Hiring an aircraft not a seat

•  Overcome business aviation perceptions - Who is a key employee today? - It’s too expensive

•  African business revolution - Scheduled carriers not keeping up - Increased travel risk

•  Value the Executive’s time - Annual cost to company and the X factor - Family time

•  Compare true trip costs - Hotel, communication, entertainment

Wealth Creation – Benefits

•  Transportation of employees and executives

- Business tool for key employees

•  Transportation of customers

- Undivided attention

•  Transportation of suppliers

- Improves supply chain management

•  Office in the sky

- Wireless broadband access

•  Transportation of cargo, parts and documents

- Reduce down time

- Improve security

•  Transportation for benevolence

- Emergency evacuation

26 000 hrs total

9 500 hrs

Wealth Creation – Case 1

20%

16%

64%

20% of Senior Management time spent travelling rather than doing work – what’s it worth?

Wealth Creation – Case 2

Day 1

Day 2

Day 3

Day 4

Day 5

Day 6

Day 7

Day 8

Day 9

Day 10

Day 1

Day 2

Day 3

Day 4

Day 5

Day 6

JHB to Luanda

Luanda to Nairobi

Nairobi to Entebbe

Entebbe to Nairobi

Nairobi to Accra

Accra to JHB Scheduled

Non-Scheduled

40% time saving

Wealth Creation - Value

•  Revenue or Market Growth - Productivity - Improve customer relations

•  Profit Margin Growth - Time savings - Decreased trip expenses

•  Asset Efficiency - Leverage key employees - Improve business efficiency

•  Employee Satisfaction - Improves key staff retention

•  Customer Satisfaction - Teamwork and cross-pollination of skill

NAM 0.10 0.41

EUR 0.45 0.45

LATAM 1.87 0.0

CIS 0.0 0.0

AFI 7.41 9.94

MENA 0.72 3.32 ASPAC

0.80 0.46

2010 2009

Source: IATA GSIC &Arthur D Little analysis, ACI and airports data

NASIA 0.34 0.0

Safety – Accidents/mill. sectors

NAM 0.10 0.41

EUR 0.10 0.41

CIS 0.10 0.41

AFI 0.10 0.41

MENA 0.10 0.41

NASIA 0.10 0.41

ASPAC 0.10 0.41

ExecuJet no compromise attitude •  Operational Standards

•  Crew

•  Engineer

•  SOPs & MOEs

•  International Accreditation

•  Wyvern

•  Argus (platinum award)

•  ISBAO (ICAO&IATA)

•  BARS (Australian)

•  HART (Mining & Oil)

•  BHP

•  Shell

•  EASA (maintenance)

•  Emergency Response (Blake International)

Safety

Source: IATA GSIC

ExecuJet Overview

LAGOS

Established in 1991

Total Solution

- Management and Operation of Aircraft

- Ad-hoc and Contract Charter

- Sales of new & pre-owned aircraft

- Maintenance

- General Aviation Services

ExecuJet Charter Solution Ad-hoc charter Option

- Fully inclusive

- Flights booked in advance

- 25% deposit required

- Aircraft availability confirmed

- Re-quote 7 days from departure

- Payment before departure

SimplyFly – JetCard Option

•  Advance Purchase of Flight Time

- Primary aircraft

- 25, 50, 100 Hours

- Fixed hourly price for 6/12 months

- Trade up or down to an alternative aircraft

- Cancellation fees based on costs incurred

ExecuJet Purchase SimplyFly - Financing Option

•  Truly non-recourse financing

- Aircraft value of US$ 20 million or higher

- Aircraft age of 5 years or younger at inception

- Customer deposit of 30%

- Aircraft represents the balance of the security

- Fixed rate financing over the term

•  Finance or operating lease structure

•  Off balance sheet possibilities

•  Managed and Operated by ExecuJet

“No requirement for additional assets or personal guarantees beyond that of the aircraft – meaningful- frustration removed.”

ExecuJet Charter Solution What sets us apart?

•  Safety and Security

- Argus, ISBAO, Wyvern, Hart Safety approved

•  Simple commercial practice

- All-inclusive billing systems •  Efficient and expert staff

•  Concierge services

•  Confidentiality and discretion

- VIP, diplomatic, presidential

•  Excellent facilities - VIP Lounges, secretarial services

•  Most varied & modern fleet in Africa

ExecuJet Charter Fleet

Welcome aboard

sala wealth summit 2012 - ettore poggi

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