3Q08 Results Presentation November 17, 2008
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
2This presentation is subject to copyright and may not be copied or used without GOL’s express consent
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$55mm per year
Integrated network
Integrated network
Integrated inventory
Integrated systems
Integrated network
GTA and VRG merged into one airline on Sep 30, 2008
3This presentation is subject to copyright and may not be copied or used without GOL’s express consent
GOL Webcast 3Q08
14.914.5
15.7
14.7
16.5
14.9
18.0
13.7
19.9
14.6
20.8
13.2
18.2
16.7
17.4
14.2
13.1
14.7
16.3
14.814.315.3
12.0
13.0
14.0
15.0
16.0
17.0
18.0
19.0
20.0
21.0
22.0
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08
50
60
70
80
90
100
110
120
130
RASK CASK WTI
RASK and CASK Evolution
US$ / 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
4This presentation is subject to copyright and may not be copied or used without GOL’s express consent
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
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
FortalezaFortaleza
RecifeRecife
SalvadorSalvador
ManausManaus
Buenos AiresBuenos Aires
Porto AlegrePorto Alegre
Santiago Santiago
Rio de Janeiro
São PauloCuritibaCuritiba
B. HorizonteB. Horizonte
BrasBrasíílialia
Florianópolis
BogotaBogota
CaracasCaracas
FortalezaFortaleza
RecifeRecife
SalvadorSalvador
ManausManaus
Buenos AiresBuenos Aires
Porto AlegrePorto Alegre
Santiago Santiago
Rio de Janeiro
São PauloCuritibaCuritiba
B. HorizonteB. Horizonte
BrasBrasíílialia
Florianópolis
BogotaBogota
CaracasCaracas
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
João PessoaJoão Pessoa
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
Porto SeguroPorto Seguro
Campo GrandeCampo Grande
AssunAssunççãoão
Panama City
ManausManaus
MaringMaringáá
São LuisSão Luis
Boa VistaBoa Vista
Buenos AiresBuenos Aires
Rio BrancoRio Branco
João PessoaJoão Pessoa
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
More connectivity
Less redundancy+ =
More efficient network
Increased load factors
VRG Network GTA Network Consolidated Network+ =
Caracas
Bogota
5This presentation is subject to copyright and may not be copied or used without GOL’s express consent
GOL Webcast 3Q08
Highly Efficient Consolidated Network
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
João PessoaJoão Pessoa
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
BogotaBogota
CaracasCaracas
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
João PessoaJoão Pessoa
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
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)
6This presentation is subject to copyright and may not be copied or used without GOL’s express consent
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 - -
7This presentation is subject to copyright and may not be copied or used without GOL’s express consent
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
8This presentation is subject to copyright and may not be copied or used without GOL’s express consent
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
9This presentation is subject to copyright and may not be copied or used without GOL’s express consent
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%
10This presentation is subject to copyright and may not be copied or used without GOL’s express consent
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%
11This presentation is subject to copyright and may not be copied or used without GOL’s express consent
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
12This presentation is subject to copyright and may not be copied or used without GOL’s express consent
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$89.3mm in change in available-for-sale securities in 3Q08 as defined by SFAS 115
13This presentation is subject to copyright and may not be copied or used without GOL’s express consent
GOL Webcast 3Q08
Investment Plans and Financing
13
Capex (R$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$mm Cost Term
Aircraft Loan 1,200 ~5% pa ~12 years
Pre-Delivery Payment Facilities 970 ~5% pa ~2 years
Other Capex 350 ~6% pa ~7 years
Own Resources 780
Total 3,300
14This presentation is subject to copyright and may not be copied or used without GOL’s express consent
GOL Webcast 3Q08
USD Exposure
Exposure
Hedge
(1) Per annum, on Sep 30, 2008
Sep 30, 08E 3Q08E
USGAAP USGAAP
Assets Liabilities US$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 $700
Hedge Ratio
4Q08 46%
1Q09 25%
2Q09 12%
3Q09 2%
4Q09 2%
FX Hedge on September 30, 2008
Medium Term Obligations
Exposure (cash)Balance Sheet Exposure (non-cash)
15This presentation is subject to copyright and may not be copied or used without GOL’s express consent
GOL Webcast 3Q08
9
25 3552
6474
8518 20
1611
72
31
4040
4040
28 11
111
38
104 108115
121127
5.5
5.65.45.5
6.8
9.0
2007A 2008E 2009E 2010E 2011E 2012E
4
5
6
7
8
9
10
Fleet plan to facilitate profitable growth and reduce costs
Order for 167 737-800NGs (32 delivered)
Fleet Plan
737 – 800s 737 – 700s 737 – 300s737 – 800 SFPs767 – 300s
Average Fleet Age (years)
16This presentation is subject to copyright and may not be copied or used without GOL’s express consent
GOL Webcast 3Q08
Guidance
(1) Balance sheet debt and capital leases plus 7x annual rent, less cash.
(2) US GAAP. Total shares outstanding are based on general estimates and assumptions. The number of shares in the actual calculation of EPS will likely be different from those set forth above
General Guidance 2008E (+/-) 2008E (+/-) Variation 2009E (+/-)
(Consolidated, USGAAP) Previous Revised % Revised
Domestic Market Growth (% RPKs) na 8.5 - 6
Pax Transported (mm) 26 26 - 29
ASKs, System (billion) 41.3 41.3 - 40.5
Domestic 32.5 32.5 - 34
International 8.8 8.8 - 6.5
Fleet (end of period) 104 104 - 108
RPKs, System (billion) 25.8 25.8 - 25.8
Cargo and Other Revenues (R$ 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
17This presentation is subject to copyright and may not be copied or used without GOL’s express consent
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.