BUSINESS INFORMATION

n Company name
English name: VIETJET AVIATION JOINT STOCK COMPANY
Short name: VIETJET., JSC
Trade name: VIETJETAIR
n Number and issuance date of Business Registration Certificate of the Joint Stock Company:
Business code No. 0102325399 issued by Hanoi Authority for Planning and Investment
First registration dated July 23rd, 2007
26th amendment registration dated January 24th, 2018
n Head Office: 302/3, Kim Ma Street, Ngoc Khanh Ward, Ba Dinh District, Hanoi, Vietnam
n Tel: (84-24) 7108 6668;
n Fax: (84-24) 3728 1838
n Website: www.vietjetair.com
n Representative office: 8th Floor, CT Plaza, 60A Truong Son, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam
n Charter Capital: VND 4,513,432,840,000 (Four thousand five hundred and thirteen billion,
four hundred and thirty two million, eight hundred and forty thousand Vietnamese dong)
n Total number of shares: 451,343,284 shares (Four hundred and fifty one million, three hundred and forty three thousand,
two hundred and eighty four shares)
n Stock code: VJC
n Air Transport Business License No. 04/2016/GPKDVCHK dated 30/12/2016
n List of subsidiaries and associated companies of Vietjet:
Vietjet has six subsidiaries and two associated companies
Business Information
Basic Financial Information 4
Vision, Mission, Core Values, Corporate Culture 6
Corporate Culture 8
Message of Chairwoman 10

OVERVIEW
Our history and development 14
Business 16
Organizational structure and key personnel 18
Investor relations 28
Current Risk Factors 32
Overview of 2017 36
2018 Outlook 38
Business Development Strategy 40
Awards 42

PERFORMANCE 2017
Business and performance in 2017 46
Flight network expansion 48
Fleet expansion 50
Product - Service 52
Human resources 54
Subsidiaries & Associates 56
Typical events of the year 2017 60
Financial situation of 2017 62

ENVIRONMENTAL IMPACT REPORT 64

ASSESSMENT OF BOM
Assessment of Business Results 68
Business Plan 2018 70

PERFORMANCE OF BOARD OF DIRECTORS AND

SUPERVISORY BOARD 72
Assessment of Company and Board of Management performance 74
Orientation plan of Board of Directors in 2018 75
Performance of Board of Directors 76
Committees 79
Performance of Supervisory Board 80
Risk Management 86

SUSTAINABLE DEVELOPMENT 88

FINANCIAL STATEMENTS 96
4

FINANCIAL SITUATION IN GENERAL

Consolidation Separate

In VND Billion 2013 2014 2015 2016 2017 CAGR In VND Billion 2013 2014 2015 2016 2017 CAGR

Total Revenue 3,790 8,699 19,845 27,499 42,303 82.8% Total Revenue 3,790 6,939 11,013 15,884 22,644 56.3%

Profit Before Tax 1 444 1,168 2,703 5,303 694.1% Profit Before Tax 1 412 649 1,622 2,045 525.8%

Profit Afer Tax 32 360 1,171 2,496 5,074 254.3% Profit Afer Tax 32 328 651 1,416 1,817 174.1%

Profit for shareholders of the company 32 360 1,170 2,496 5,073 254.8% Total Asset 2,948 7,688 12,023 18,512 29,166 77.4%

Earnings per share (VND) 453 4,505 5,893 9,586 11,356 123.8% Equity 605 933 1,585 3,072 5,681 75.0%

Total Asset 2,948 7,677 12,045 20,063 31,658 81.0% Share Capital 800 800 1,450 3,000 4,513 54.1%

Equity 605 967 2,147 4,734 10,594 104.6% Total Liabilities 2,343 6,755 10,438 15,440 23,485 77.9%

Share Capital 800 800 1,450 3,000 4,513 54.1% Equity/Total Asset 20.53% 12.14% 13.18% 16.59% 19.48%

Total Liabilities 2,343 6,710 9,897 15,329 21,064 73.2% Total Liabilities/Total Asset 79.47% 87.86% 86.82% 83.41% 80.52%

Equity/Total Asset 20.53% 12.59% 17.83% 23.60% 33.46% ROE 6.59% 42.68% 51.73% 60.82% 41.51%

ROE 10.6% 45.9% 75.2% 72.5% 66.2% ROA 1.56% 6.27% 6.71% 9.37% 7.72%

ROA 2.3% 6.8% 11.9% 15.5% 19.6%

6,000 11.99% 12.00% 12,000 11,356

5,000 10.00% 10,000

9.08%
4,000 5,074 8.00% 8,000
6,562
5,893
3,000 5.90% 6.00% 6,000

4.14% 3,604
2,000 2,496
4.00% 4,000

1,000 0.85% 2.00%

1,171 2,000
453
32 360
- 0.00%
-
2013 2014 2015 2016 2017
2013 2014 2015 2016 2017
Net profit after tax Net Income Margin
Basic earnings per share
6
OVERVIEW

VISION MISSION CORE VALUES

n To become a multinational airline group with an expanded n To continuously expand our flight network globally, so we n SAFE
regional and global flight network, providing not only air can create more and more flight opportunities for people all n FUN
transportation services but also consumer demanded goods over the world. n AFFORDABLE
and services across advanced e-commerce platforms. n To make a breakthrough in terms of the innovative services n PUNCTUAL
n To become one of the world’s most beloved, trusted and that an airline offers through the adoption of e-commerce
highly prestigious brands in the eyes of travelers all over platforms.
the world. n To make air travel the most popular form of transportation

for the Vietnamese people and all citizens around the world.
n To bring happiness and satisfaction to our customers by

offering outstanding services, always with a friendly smile.

n To maximize the benefits that our customers, shareholders

and employees receive.

8

CORPORATE CULTURE
OVERVIEW

n Safety First Approach

n Integrity
n Innovation, Inspriration
n Hardwork, Resourcefulness
n Happiness, Strength and Dynamic

SAFETY CULTURE
All leaders and staff members at Vietjet are wholeheartedly
committed to safety and quality policies. They are core
values in the workplace and everyone’s responsibility at
Vietjet. Safety and Quality assurance are essential to all
of our aviation activities and will ensure the company
sustainably develops.
“Our customers are the reason Vietjet exists and will
continue to develop sustainably”.

SAFETY AND QUALITY POLICY

Vietjet leaders and staff members are wholehearted
committed to:
l Strictly complying to requirements outlined by CAAV and

all relevant aviation authorities.

l Strictly applying a quality management system as outlined

in our quality management manual.

l Ensuring that each Vietjet employee strictly complies

with requirements and regulations for all operations,

maintenance procedures, and all other services, in an effort
to not only maintain but continuously improve Safety and
Quality standards.
l Providing all necessary and sufficient resources and

meeting all other required conditions for conducting policy

and meeting targets.
l Continuously improving management systems, creating a The pride named Vietjet is formed
reliable working environment with our greatest responsibility
being to satisfy customers’ expectations. by corporate culture, which is the
l Establish a fluid information system to ensure that

all employees are informed about safety-quality data

decisive factor for the success of
adequately and in a timely manner. every action plans.
MESSAGE OF VIETJET CHAIRWOMAN

Dear our shareholders and investors, bring the flight opportunities to everyone aviation infrastructure. However, with our strong desire
from anywhere, contributing to promote and business spirit, break-through strategy, continually
On behalf of Board of Directors of the development of local economies and growth and achievements creation, we are strongly
Vietjet, I am very delighted to thank our tourism with the pride named Vietjet. It is convinced that Vietjet will achieve a successful business
shareholders and investors who trust in the pride of contributing to the growth of season as expected, bringing the highest values and
our development of the company. our nation in general, our economy and benefits to our shareholders, investors, community and
aviation industry in particular, bringing society.
Together, we After having successfully listed its forth the new position, new voice to our
will create a shares on HOSE, VJC stock is continuously domestic aviation industry. In addition, we We thank you very much - our esteemed shareholders,

superior aviation breaking new peaks, playing an continually implement the responsibilities investors for your trust and company with our great
important role as the main driving force to protect the environment, fulfil the aspirations. Together, we will create a superior aviation
ecosystem for the for the domestic stock market. Vietjet has corporate social responsibility with ecosystem for the sake of everyone, for the endless
sake of everyone, continually expanded, reached further, our nation. A series of social charity happiness and joy.

for the endless magically grown by 30% per year, become campaigns, medical examinations, health
a robust phenomenon in the aviation care insurance cards allocation for the Sincerely,
happiness and joy. market, been prominent over the world. poor, free sweet flights for the poor back
The shape of a Consumer Airline has been home for Tet, environment protection,
increasingly evident, promising to bring a good working days, etc. have been
new life trend, a brighter future in the sky launched in the whole system; therefore,
to customers when the aviation industry each Vietjet employee works with the
and e-commerce are boosting together. pride, dedicated spirit and whole-hearted
heart, aiming toward humanity, goodness
A global airline, serving for integration which have been Vietjet people’s beauty Vietjet Chairwoman
and growth is an ambition, but our dream and pride. Nguyen Thanh Ha
and aspirations - we are Vietnamese
entrepreneurs having global visions In 2018, the local and global aviation
in the context of the country’s deep industries will welcome new opportunities,
integration into the open sky and flat as well as challenges from the higher fuel
world. We carry out the sacred mission to prices to the accelerating development of
OVERVIEW
n Our History and Development
n Business

n Organizational Structure and Key Personnel

n Investor Relations

n Current Risk Factors

n Overview of 2017

n 2018 Outlook Vietjet continually grows, contributes to not only

n Business Development Strategy
Vietnamese economic growth but also the overall
n Awards
development of economy, tourism trade industry
in Asia - Pacific
14

OUR HISTORY AND DEVELOPMENT

Vietjet Aviation Joint Stock Company (Vietjet) was established ensure sustainable business development, contribute to the
OVERVIEW

on July 23rd, 2007 with business license number 0103018485. development of the aviation and tourism industries as well as
Vietjet is the Vietnam's first private airline which was economic growth in the region.
granted operations permit and AOC (Air Operator’s Certificate) For more than 6 years of taking off, Vietjet has achieved
for domestic and international flight network. important milestones in the journey of sky conquering and
Aiming to the safe flights with the internationally bringing the innovation to the world's aviation industry.
recognized service quality, within four years Vietjet invested Our milestone are as follows:
in the preparation of resources, systems and finance to

2007 2011 2012 2013 2014 2015 2016 2017

lObtained an Air Certificate “AOC” l Launched Vietjet’s new slogan l Signed a MOU to purchase 100 l Signed an agreement to establish
no. 01/0103018458 “Enjoy Flying”. Airbus aircraft at Singapore Airshow. an Airbus Training Center in Vietnam.
l Expanded domestic flight network l Signed an agreement to purchase l Signed a contract with Boeing to

to 7 new destinations including 100 aircraft with the aircraft purchase 100 B737 MAX 200 Aircraft.
Vinh, Danang, Nha Trang, Dalat, manufacturer group Airbus. l Signed a contract for purchasing

Phu Quoc, and Hai Phong. l Received the first aircraft from the 20 new A321 CEOs and NEOs from
firm order placed to Airbus. Airbus.
l Lauched Vietjet Cargo Joint Stock l Inaugurated Vietjet Training Center. l Officially became a member

Company. l Achieved IATA Operation Safety of International Air Transport l Listed company’s shares on Ho Chi
l Launched the first commercial l Implemented ForYourSmile l Launched Thai Vietjet Joint Stock Audit certificate from International Association (IATA). Minh Stock Exchange (HOSE).
flight from HCMC to Hanoi on program for customer services Company. Air Transport Association (IATA). l Inaugurated 9 new domestic l Groundbreaking ceremony of

December 24th. quality management. l Inaugurated 5 new domestic l Inaugurated 9 new domestic routes and 2 new destinations consutruction of Vietjet Aviation
l Inaugurated the first international routes and 2 new destinations routes and 3 new destinations including Can Tho, and Hue. Academy project.
route from Ho Chi Minh City to including Thanh Hoa, and Can Tho. including Dong Hoi, Chu Lai, and l Inaugurated international routes l Attended APEC Da Nang Summit.

Bangkok (Thailand). l Inaugurated 3 new international Pleiku. to new destinations including China, l Inaugurated new routes to

l Inaugurated 4 new domestic routes routes to Singapore, South Korea, l Inaugurated 2 new international Taiwan, South Korea, and Malaysia. increase the total number of
and 2 new destinations including Quy and Taiwan. routes and 1 new destination to domestic routes to 38.
Nhon, and Buon Ma Thuot. Yangon (Myanmar). l Inaugurated new international

routes to many destinations in

Thailand, China, Cambodia, Taiwan,
South Korea, Myanmar which
increasing the total number of
international routes to 44.
16

BUSINESS
OVERVIEW

1. Passenger air transport: Air transport; stay rent; 16. General Wholesale (to trade Duty Free
passenger air transport (scheduled and 11. Construction of other civil engineering goods);
non-scheduled air transport) for local and projects (to construct and exploit facilities for 17. Act as agents, brokers, auctions (to be an
international markets; aircraft maintenance; to construct and exploit a agent for machinery, industrial equipment,
2. Other supporting services relating to flight operation center; to construct and exploit ships, aircraft);
transportation (train, automobile, ship, air ticket facilities for airport terminals); 18. Insurance Agent operations and insurance
agent); 12. Other education services (to offer practical broker;
3. Advertising (not including tobacco advertising); training for pilots, technicians and engineers and 19. To lease machinery, equipment and other
4. Trading real estate, land-use rights (owned by other professional staffs); tangible assets (to lease aviation transport
owner, user or leaseholder) - to invest in housing 13. To transport goods by air (to deliver regular equipment without pilot: aircraft);
or building, construction projects for sale, lease goods for general public with transportation 20. Other specialized wholesale services (to sell
and lease/purchase; to invest in improving land services; domestically and internationally); aircraft);
and invest in infrastructure on leased land in 14. Direct supporting services for air transport 21. To retail other new goods in specialized
order to lease the infrastructure, including land; (Ground operation services include passenger stores (to retail souvenirs, knit products, fine-art
5. Other means of transport by road; services, maintenance services, cleaning and products in specialized stores);
6. Car rental and other vehicles powered by other services for aircraft parking in terminal, 22. Restaurant and mobile food and beverage
engines for rent; technical support services, catering services, services;
7. Supporting services relating to tourism scheduled and unscheduled aircraft maintenance 23. Other food and beverage services
promotion and tour arrangement: services to service; aircraft spare parts supply service; (not including services at bar, karaoke or
accommodate travellers (not including bar, aircraft refuelling services); discotheque);
karaoke and discotheque services); 15. Other supporting services: to operate large 24. Other beverage services;
8. Tour operator; capacity aircraft, general aviation aircraft (fixed 25. Other services: as required by the
9. Travel agency; wing aircraft and helicopter), on land and Company from time to time and in
10. Short-stay accommodation services: Hotel water; to operate leased aircraft provided that accordance with the applicable law.
(hotel of a certain star standard; not located at the permit has been granted by competent
the Head Office); villas or apartments for short- authorities of the government);
18

ORGANIZATIONAL STRUCTURE AND KEY PERSONNEL

OVERVIEW

ORGANIZATIONAL STRUCTURE

Annual General Meeting

Inspection Committee

Board of Directors

Board of Management

Internal Control

Safety, Security, Quality Assurance

Security Safety Quality Assurance

Training Center Flight Operation Ground Operation Engineering Commercial Customer Service Finance
20

ORGANIZATIONAL STRUCTURE AND KEY PERSONNEL

OVERVIEW

CURRENTLY, THE BOARD OF DIRECTORS CONSISTS OF SIX MEMBERS

Madam Nguyen Thanh Ha Dr. Nguyen Thanh Hung Mr. Luu Duc Khanh

Madam Nguyen Thanh Ha is one of the founders Dr. Nguyen Thanh Hung was appointed Vice- Mr. Luu Duc Khanh was appointed a member of
of Vietjet. She was appointed Chairwoman of Chairman of the Board of Directors in July 2007. Dr. the Board of Directors and chosen as Managing
the Company’s Board in 2007. She has extensive Hung is the Founder and Chairman of Sovico. He is Director in April 2011. Mr. Khanh is an expert
experience in the aviation industry in Vietnam. currently Chairman of Furama Resort & Residence in the financial sector with more than 20 years
Prior to joining the Company, Madam Ha was Danang - one of the premier five star resorts and of experience in senior management roles. He
Deputy Head of Civil Aviation Administration holiday residences in Vietnam - and is Chairman of held prominent positions in prestigious banks
of Vietnam (CAAV). She was the head of the Saigon Sovico Phu Quoc Company. Dr. Hung was the such as Strategy Director at HSBC Vietnam, Vice
Planning & Investment department at Vietnam first Vietnamese member to join the Young Global President at Techcombank and CEO at ABBank.
Airlines before joining CAAV. Madam Ha obtained Leaders in 2007 at the Davos World Economic Mr. Khanh graduated with a bachelor’s degree in
her bachelor’s degree in Physics from National Forum. He is also a member of Asia Pacific economics at The University of Economics HCMC
Science University, a bachelor’s degree in Economics Cooperation (APEC) Business Advisory and received a MBA degree from New England
Economics from the National Economic University Council and Vice Chairman of the Japan-Vietnam University in Australia.
and a master’s degree in Economics. Business Forum. Dr. Hung holds an Electrical
Engineering degree from Kharkov University and a
Ph.D. degree in Cybernetics from the former Soviet Mr. Dinh Viet Phuong
Madam Nguyen Thi Phuong Thao Union’s Academy of Science.
Mr. Dinh Viet Phuong has been a Vice President
Madam Nguyen Thi Phuong Thao is the founder in charge of Business Development since 2012.
of Vietjet in 2002. She was appointed Vice- Mr. Chu Viet Cuong Mr. Phuong has many years of management
Chairwoman of the Board of Directors in 2007. experience in senior positions at reputable
She is also the Company’s Chief Executive Officer Mr. Chu Viet Cuong has been on the Board of companies in Vietnam including Head of Sovico’s
(CEO). She has many successes in business and is Directors since 2011. He is also the Chairman of the representative office in Vietnam; and Deputy
an experienced manager in Vietnam and abroad, Insurance Committee of the Company. Mr. Cuong General Director of Sovico, Deputy General
especially in the banking-finance sector. She was is the Chief Operation Officer of Sovico Holding Director and member of the board of directors
also a founder and a member of the Board of and a director of the Board of HD Bank. Mr. Cuong of Vietnam Motors Industry Corporation - the
Directors of several commercial banks in Vietnam has previously served as Director of BNP Paribas- Ministry of Transport; member of the board of
prior to joining the Ho Chi Minh City Development Pervoir JV, Deputy General Director of Prudential directors of Petechim JSC - Petro Vietnam. He
Joint Stock Commercial Bank (HD Bank) as Assurance Ltd. and Chairman of Dai A Bank. Mr. holds an engineering degree from the University
Standing Vice Chairwoman of the Board of Cuong is a senior expert in banking and finance of the Vietnam Maritime. He graduated with an
Directors, where she helped to develop HD Bank as well as insurance. His domestic experience MBA degree from Centre Franco-Vietnamien de
to become one of Vietnam’s leading commercial has been strengthened by two years of working formation à la Gestion (France) and holds a Ph.D.
banks during her tenure. Madam Thao obtained abroad at the Southeast Asian Strategy Institute in in transportation from Moscow State Academy of
a Doctor of Philosophy (Ph.D.) in Economic Singapore, which was established by the former Water Transport.
Cybernetics from the Mendeleev Institute, a Singapore Prime Minister Lee Kuan Yew. Mr. Cuong
bachelor’s degree in Credit-Finance from the graduated with a master’s degree in Business
Moscow Commerce Institute, and a bachelor’s Administration (MBA) from Massachusetts Institute
degree in Labour Economic Management from of Technology in the U.S. in addition to a master’s
the Moscow National Economics College. She is degree in International Business from Sussex
also a founding member of the System Research University in London in the United Kingdom. He
Academy of the Russian Federation. holds a bachelor’s degree of Economics from
Khaccop University (former Soviet Union).
22

ORGANIZATIONAL STRUCTURE AND KEY PERSONNEL

OVERVIEW

SUPERVISORY BOARD

Ms. Tran Duong Ngoc Thao - Head of Supervisory Board to pharmacy. She had experience as Chief Accountant
Ms. Tran Duong Ngoc Thao was elected Head of the Supervisory for the construction company for many years. She has a
Board of the Company for the term 2017 - 2022. She is also bachelor’s degree in accounting from the Hanoi University
currently a member of the Supervisory Boards of Saigon Ground of Finance and Accountancy, as well as other professional
Services Joint Stock Company and Cam Ranh International qualifications such as Chief Accountant Qualification from
Airport Joint Stock Company. She has vast experience in aviation the Hanoi University of Economics.
internal auditing, corporate finance advisory, restructuring and
M&A. She has a MBA from Asian Institute of Technology, a
Master’s degree in European Business from EM Lyon-France Mr. Pham Van Dau - Member of Supervisory Board
business school, certificate of Quality Management System Mr. Pham Van Dau is a member of the Supervisory Board
for airlines; IATA Aviation Internal Audit and IATA Lead Auditor of the Company for the term 2017 - 2022, he more than
certificates. 15-years experience in Finance and Banking. He is also
currently appointed as Chief Financial Officer of Ho Chi
Minh City Development Joint Stock Commercial Bank.
Ms. Doan Thu Huong - Member of Supervisory Board He has a thorough knowledge of credit, accounting,
Ms. Doan Thu Huong is a member of the Supervisory Board of finance, capital management and planning. He is the
the Company for the term 2017 - 2022. She is currently Chief person in charge of the HD Bank financial department.
Accountant of Vinh Tri Trading Company Limited in 2016. She His role is not only ensuring the capital resource is
is also a member of the Supervisory Boards of Sai Gon Vi Na effectively used but also elaborating detailed plans
Real Estate Joint Stock Company. Previously, she held positions for the future development of HD Bank. He received
in accounting and finance departments of several companies master’s degree of Economics from the University of
operating in various sectors, ranging from the technology Economics of Ho Chi Minh City.
24
OVERVIEW

CEO’S MESSAGE

development and tourism development, will run in parallel with our social responsibility campaigns
while creating a new trend in the aviation that the airline will implement in 2018.
service market with a global vision: to
It is Vietjet’s strategy to build build a multi-national company with a We are strongly convinced of our capabilities to maintain
a consumer airline that serves multi-cultural environment comprising a continued rate of rapid growth, strong development and
more than 40 nationalities under the maximum profitability, bringing more added values on a
the consumption requirements
slogan “Sky Connection”. more popular and higher quality platform, especially in the
of passengers, combining context that e-commerce and low cost carriers are booming
e-commerce and distribution Vietjet will implement robust plans to worldwide, and in Vietnam - a market of over 90 million
systems of consumer goods. enhance service quality and continue people.
conquering local and international
markets. Among others, reaching out to I wish to express my most sincere gratitude and deepest
the international markets will be our first appreciation to our shareholders for your trust in the Board
priority in parallel with local markets. of Management’s leadership and management. With an
Accordingly, Vietjet plans to build an experienced and aspirational team who whole-heartedly
interconnecting global network through create new values for the community, I believe that Vietjet
interline and code share agreements will continue to keep up this impetus, writing more of
with other carriers. In the coming time, this “speedy” growth story, bringing more and more flight
Dear shareholders and investors,
Vietjet’s passengers will be able to fly all opportunities for global citizens, and bringing forth promising
over the world. It is Vietjet’s strategy to profits. We are heading forward to a brighter future in the
The domestic and global aviation industries have
build a consumer airline that serves the sky, making exciting sky connections with the pride named
entered into a new development cycle with many
consumption requirements of passengers, Vietjet.
challenges, inspirational opportunities and immense
combining e-commerce and distribution
potential. We are truly delighted and proud that
systems of consumer goods. Vietjet is Yours sincerely,
Vietjet is a part of this story and significantly
truly a pioneer airline applying innovate
contributing to these outstanding changes and
digital solutions and automation as part
developments.
of the industrial revolution 4.0 - this is
a very important factor in terms of our
Vietjet has become the largest domestic carrier
growth connections.
in Vietnam, providing travel transport services for
over 30 million local and foreign travelers to date,
In addition to our targets of achieving
operating 82 routes, creating travel opportunities
efficient business results, providing better Nguyen Thi Phuong Thao
with modern means of transport at affordable pricing
service quality, by building a modern The President & CEO
for all travelers. Vietjet has placed purchasing orders
fleet, Vietjet has officially announced
for 221 aircraft.
to the world that it is taking a lead on
environmental protection activities for our
Vietjet continues to foster local economic
green planet by practical actions which
26
OVERVIEW

BOARD OF MANAGEMENT
The Board of Management consists of executive directors namely, Chief Executive Officer
- Nguyen Thi Phuong Thao, Managing Director - Luu Duc Khanh, Vice President - Dinh Viet
Phuong, other Vice Presidents and the Chief Financial Officer:

Mr. Luong The Phuc Business Management from Vietnam - Belgium aircraft leasing contracts, planning maintenance,
Co-operation Programme of National Economic planning production and production control. He
Mr. Luong The Phuc is the Company’s Vice University and Université libre de Bruxelles. has 30 years of experience working in the airline
President in charge of flight operations with engineering industry and 25 years of experience
more than 30 years of experience in the aviation in aircraft overhaul and line maintenance with
industry. Before joining the Company, Mr. Phuc Mr. To Viet Thang Vietnam Airlines. From 1993 to 2014, Mr. Thinh
served in the Vietnam Air Force as the Director served as Vietnam Airline’s deputy director of the
of Vietnam Air Force Academy. He also worked Mr. To Viet Thang is Vice President of the Company technical department. Under the management of
for 16 years at Vietnam Airlines during which he and Director of the Safety Security Quality and Mr. Nguyen Duc Thinh, the technical department
was Standing Vice President. He was Chairman Assurance Department (SSQA) responsible for achieved excellence with a technical reliability
of Pacific Airline for 10 years. He was educated the safety of flights, ground operations, and rating of 99.57%, the highest reliability of A320/
as a Military Pilot from the Military Pilot Training the implementation and maintenance of the A321 of any airline in Asia Pacific. He received
school in the former Soviet Union. He obtained Company’s safety and quality programme. He a master’s degree in Civil Aviation Engineering,
a graduate degree in Directorship from the is the project leader for the Company’s IOSA and an MBA and IATA certificates for airline
Defence Academy, a bachelor’s degree in certification process and become a Member engineering.
Business Administration from Ho Chi Minh City of IATA. He has nearly 20 years of working
University of Economics and received graduate experience in the aviation industry including
training from the INSEAD business school. for Vietnam Airlines Corporation. From 2008 Mr. Tran Hoai Nam Mr. Nguyen Duc Tam and airfreight business. Mr. Quang has great Bachelor Degree in Law from Kishinev University,
to 2014, Mr. Thang served as Deputy Director Mr. Nguyen Duc Tam joined the Company in experience having worked for more than 27 and in 2002 he received a Master’s in Law from
of SSQA department at Vietnam Airlines. He Mr. Tran Hoai Nam was appointed Vice President 2007 and served as the first CEO of the Company. years in the air-cargo and airfreight industry. He the National Institute of State and Law in Hanoi
Mrs. Nguyen Thi Thuy Binh has extensive experience in Vietnam’s aviation of the Company in 2015 and placed in charge Mr. Tam has more than 47 years of extensive is an expert in airfreight forwarding and logistics. and in 2004 he received an MBA from Maastricht
industry regulatory matters relating to safety, of aircraft financing and other financial market experience in the aviation industry. He was Vice He was the Chairman of Vietnam Logistics School of Management in The Netherlands.
Mrs. Nguyen Thi Thuy Binh is Vice President of quality and security. Mr. Thang received an related businesses for the company. He was President at Vietnam Airlines for 11 years, Head Business Association (VLA) from 2010-2015
the Company, who is in charge of commercial Engineering diploma with distinction in Aircraft appointed Vice President of Finance in November, of the Information Technology department at and is currently the Vice Standing Chairman of
developing, market expansion and brand value Technics from Czech Technical University in 2016. He has vast experience in the banking and CAAV, Deputy Head of the Technical Materials VLA. Mr. Quang was Chairman of ASEAN Freight Mr. Nguyen Thanh Son
development strategies of the Company in Prague, Czech Republic, and certificates of IATA, finance sector, especially in wholesale banking department at CAAV. Mr. Tam holds an Aviation Forwarders Association (AFFA) from 2012-2015. Mr. Nguyen Thanh Son is Vice President
both domestic and international markets. She Lufthansa and AQS relating to aviation safety and financial institutions. Mr. Nam is Deputy Engineer degree from Harbin Military Engineering Mr. Quang had successfully build up Vector who leads the commercial activities of the
has had many years of experience working in and security, airlines management and quality CEO of HD Bank and is in charge of developing Institute (China), a bachelor’s degree in English Aviation company and served as CEO for this Company, including product creations, sales and
the communication industry and successfully assurance management. and managing large corporate clients as well from Hanoi University of Foreign Language company from 2004-2014 before joining Vietjet distribution, marketing and communications,
launched the annual activities of the Global as developing businesses between HD Bank Teachers, an aircraft type-rating certificate from Air in August 2014. Vector Aviation have been as well as revenue management. Mr. Son was
Mobile Marketing Association in Vietnam since and domestic and foreign financial institutions. Ulianop Aviation School (Soviet Union) and operating as a General Sales and Services Agency appointed as Vice President of Commerce as
2012, contributing to the development of modern Mr. Nguyen Duc Thinh He has previously held management-level other certificates related to aviation and airline (GSSA) in cargo and passenger services for more of April 1st, 2018. He has had more than 20
media in Vietnam. In 2008, Mrs. Binh served as positions at Citibank and Vietnam International engineering. than 52 international airlines in Vietnam and years of experience in commercial activities at
Jetstar Pacific’s Chief Commercial Officer. Mrs. Mr. Nguyen Duc Thinh is the company’s Vice Bank. Mr. Nam has a bachelor’s degree from Southeast Asia. From 1994 to 2000, Mr. Quang both international and domestic airlines. Mr.
Binh obtained a Bachelor’s degree in Russian President and in charge of technical operations Hanoi University of Science and Technology and was airfreight director of the Vinatrans group of Son obtained a Master's degree in Business
and English interpretation from Hanoi Foreign and maintenance department. He is Director of a master’s degree from the Asian Institute of Mr. Do Xuan Quang companies under Ministry of Trade. He served as Administration from University of Economics Ho
Language University, a Bachelor’s degree in the engineering division, which is responsible for Technology (Thailand). Mr. Do Xuan Quang is a Vice President of Vietjet executive vice president of Vinafreight from 2000- Chi Minh City.
Electronics and Telecommunications Engineering store and supply, planning and maintenance, and and CEO of Vietjet Air Cargo - a sister company 2004 and Chairman of this company from 2009-
at Hanoi Polytechnical University, and an MBA in also involves the purchase of aircraft, reviewing under Vietjet that specializes in air-cargo 2014. In 1989, Mr. Do Xuan Quang completed a
28

INVESTOR RELATIONS
OVERVIEW

In order to update information, expand channels of communication

with investors and shareholders, in 2017, Vietjet attended 72 major
conferences and events for domestic and international investors in
Hongkong, Singapore, South Korea, United Kingdom, United States,
and Thailand. Vietjet welcomed and worked with over 600 investors
both local and international at different scales.
The participation of Vietjet senior leaders in activities above helped
investors and shareholders gain a better understanding of Vietjet’s
direction and development strategy.
Vietjet provided shareholders and investors accurate and timely
information of the company's business activities on the official
website: ir.vietjetair.com displayed in both Vietnamese and
English. Vietjet ensures that its shareholders in both domestic and
international are treated equally by the honesty and transparency of
the information system.
Attempts in expanding connection to investors and shareholders
were recognized by the Platinum Media Association of America's 2016
Annual Report, and honored as Vietnam's top 50 listed companies in
2017 by Forbes Magazine Vietnam, and Best Vietnam Deal award in
2017 by Finance Asia.
Till the end of 2017, Vietjet has over 5,400 domestic and foreign
shareholders.
30

INVESTOR RELATIONS
OVERVIEW

SHARES AND SHAREHOLDER INFORMATION

n Charter Capital: 4,513,432,840,000 VND + Foreign Shareholders: 419, hold 26.9% total shares
Number of shares outstanding: 451,343,284 shares +Domestic Shareholders:4,919, hold 73.1% total
Common shares: 451,343,284 shares
Treasury shares: 0
Par value: 10,000VND/share n No State Shareholder
Listed on Ho Chi Minh Stock Exchange:
451,343,284 shares n At the beginning of 2017, charter capital of
Vietjet is 3,000,000,000 VND, in 2017, Vietjet
n Major shareholders: increased its charter capital twice.
+ Sunflower Sunny Investment Company Limited: + Private offering for Sunny Huong Duong Sunny
128,950,134 shares (28.57%) 22,388,060 shares increased share capital by
+ Sovico Holdings: 34,255,000 shares (7.59%) 223,888,060 VND
+ Madame Nguyễn Thị Phương Thảo: 39,559,095 + Increased share capital from Owners’ Equity:
shares (8.76%) 40% equivalent with 1,289,552,240,000 VND.
By the end of 2017, share capital of Vietjet is
n Institution shareholders: 163, hold 66.61% 4,513,432,840,000 VND
total shares
+ Individual: 5,170, hold 33.39% total shares n No treasury and no treasury share transaction
in 2017
n Foreign room of Vietjet is limit at 30%
32

CURRENT RISK FACTORS

OVERVIEW

n Economic growth and the aviation industry n Competition in the Aviation

As a business operating in the aviation industry, the growth The airlines are facing increasing fierce competition when
of our business operations of the company has accompanied there are new entrants in the domestic markets, and foreign
the growth of the region and Vietnamese aviation industry. carriers have increasingly expanded their network to different
Over the next four years, IATA also forecasts that Vietnam destinations in Vietnam while travel market develops so fast
will be the fastest growing aviation market in the world, and and the open aviation policy prevails.
in Southeast Asia, reaching the level of carrying 150 million Vietjet clearly recognizes these competitive risks and is
passengers in the year 2035. Accordingly, Vietjet also has focused on building its own direction, focusing on exploiting
revenue growth and market share in line with the growth new customers and products for the niche market, providing
momentum of the domestic aviation market, the company competitive utility services, and avoiding price competition to
has always maintained sustainable growth. In 2017, total minimize risks.
revenue of the company increased by 53.82% year on year.
Board of Management always consider carefully when making
development decisions at markets in line with the general n Interest rate risk
economic growth rate in each developing areas. Interest rates are an extremely important financial
indicator that the Company must follow and up-to-date to
n Fluctuations in fuel prices make sound investment strategies. Not any one enterprise
In the cost structure of the air transportation, fuel costs will have an amount of capital large enough to conduct
account for the largest share of the total cost of the Company. organizational business production which mostly have
Fuel prices depend on a lot of economic and political factors to raise more from outside sources, including a popular
around the world and are completely out of control of the channel through loans and bears interest rate of use
Company. Fuel prices have undergone many fluctuations in the of loans. As interest rates increase, it will directly
past, and may fluctuate in the future. affect the business situation of enterprises.
To overcome and mitigate this risk, Vietjet implemented Vietjet mainly uses loans from domestic and
various strategies to limit adverse fluctuations in fuel prices foreign banks to make the purchase of new aircraft.
through many action programs including maintaining a Credit Suppliers for the Company are long-term
young fleet, having the optimal fuel consumption ratio; partners with the Company, so the Company
implementing a fuel economy program with the engine regularly enjoys preferential policies. In addition,
manufacturer partners applicable for operation, engineering the management of the Company has always
and maintenance departments. been cautious and deliberate before making
At the end of 2017, the company received the first decisions on the use of loans from banks, so the
A320/321 NEO to save up to 15% of its fuel consumption. The interest rate risk is also controlled and limited
company plans to sign derivatives contracts at the right time. by the Company.
This facilitates the company to control costs by purchasing fuel
at a predetermined price, which will be delivered on a future
date to protect and mitigate the risks of rising fuel prices.
36

AN OVERVIEW OF 2017
OVERVIEW

n In 2017, the Asia-Pacific economy continued to develop favorably with growth

of 5.6% coming as a result of the rapid upturn of consumption, exports, and
investment. The more-than-expected rise of China, Japan, and ASEAN countries is
mainly accounted for this amazing growth rate.

n In the ASEAN region, the economies of Indonesia, Malaysia, Philippines, Singapore,

and Thailand increased by 5.2%, 5.4%, 6.6%, 2.5% and 3.3% respectively. Last
but not least, Vietnam was one of the fastest, stably-growing economies as the
consequence of a surge of 6.81%, which was higher than the country’s average
annual growth during 2011 - 2017 (the projected growth for 2017 had been 6.7%).
The service and transportation sectors significantly contributed to the sustainable
macro-economy of the country in 2017.

n For the aviation transportation industry in 2017, Asia-Pacific airlines transported

approximately 1.214 billion passengers, accounting for one third of global air traffic.
China, India, and ASEAN are the largest markets. With more than 8,500 currently-
operating aircraft, Asia-Pacific is now a major customer of airplane manufacturers
and many more orders for different types of aircraft have been signed in recent
years. We have also seen a clear diversification in terms of the business models being
operated by airlines across multiple dynamic economies in Asia-Pacific. Especially,
the low-cost carrier model, or so-called new-age and economic model, which has
been developing annually at 22% and has started being profitable. These airlines
impressively contributed to the massive seat capacity that has been generated by
new-age and economic airlines globally.

n Recently, Vietnam’s air transport industry has been dramatically expanding

compared to previous years. It has lead to more attention being paid to the need
for improvement of infrastructure in order to meet the growth of air transportation.
With a total of 60 million domestic and international passengers, which is equivalent
to 20% growth rate, Vietnam is becoming one of the largest air traffic centers in the
region. Vietjet by itself delivered service to more than 16.3 million passengers. In
the last month of 2017, Vietjet’s domestic market share reached 43% making it the
biggest airline in Vietnam’s domestic market.

AN
INCREASE IN PASSENGERS
OF CARRIED AS
COMPARED TO
20% 2016
38

2018 OUTLOOK
OVERVIEW

Asia-Pacific will continue to be the world’s fastest domestic airlines will maintain the average growth
growing region. However, the expanding rate of rate around 20.3% per year and reach to around 102
the economy will deeply depend on politics and million passengers in 2020, doubling the volume of
international commerce. The CPTPP, for which Japan 2016, an increase of 24% compared to the Aviation
has a lead role, will be the determining factor for the Transport Development Plan by 2020.
region’s success in 2018. Japan, South Korea, and China
are together establishing a politically stable region, n According to the Aviation Administration of Vietnam,
making Asia-Pacific a reliable and promising region for by 2020, Vietnamese aviation industry in particular
businesses to comfortably invest, build infrastructure, and Vietnamese economy in general will own a
and develop the service sector. At the same time, regional and world-class fleet of over 250-270 aircraft.
the upturn of many major economies in Asia, such as With this fleet, Vietnamese aviation industry will
India, Singapore, Thailand, Malaysia, and Indonesia, really have a voice, a great impact on the market, on
will likely play an important role and be a driving force the international aviation map, better the position of
for the development of the region as a whole. Vietnamese aviation industry. Vietnamese aviation
industry will play a role in associations, conventions,
n In the center of Asia-Pacific, Vietnam is projected to investment issues, finance, aviation industry, market
have a GPD growth rate exceeding 7% in 2018, and in share division.
addition to this motivating force, we will see further
development of exports and domestic consumption, n Under the transport development strategy, Vietnam
and also a great variety of foreign investment funds will have 26 airports by 2020 and currently in the
coming in. expanding process of Noi Bai and Tan Son Nhat
International Airports, along with the construction
n Joining in this region-wide development, the of the new international airport - Long Thanh which
air transport industry, on a mission to enlarge the will be expectedly put into operation in 2020. With a
commerce between economic regions, will continually population of more than 90 millions, and the incomes
play an important role for economic development have been ranked at the average level, the potential
through 2018. Newly opened air routes and an of Vietnamese aviation market is highly appreciated.
increase in the frequency of existing air routes will
create many more jobs for the region. Air transport
will especially grow in China, South Korea, Japan,
India, and Vietnam. According to Boeing, up to 40%
of global transportation and more than 50% growth
contribution will come from Asia-Pacific.
FORECAST OF
n Vietnam will have one of the fastest growing air AN INCREASE OF
transport industries in the region, and the world, in
the next several years. The growth rate will remain
a two-digit number, further facilitated by friendly
policies from the government aimed at attracting
20,3%
tourists and investors from around the world; other
contributing factors include the country’s dynamically AIRLINES CAN
developing economy, and an increase in population of CARRY UP TO
over 1% per year, which generates increasing demand
for international and domestic travel. 100 MILLION
PASSENGERS
n In Vietnam, the domestic airlines have their fleet IN 2020
expansion plan for the period of 2016 - 2020. With
these growth rates, the total passengers of the
40

BUSINESS DEVELOPMENT STRATEGY

OVERVIEW

VIETJET’S MEDIUM & LONG-TERM PILLAR STRATEGIES

n Continue expanding our domestic and international network:

open new routes connecting different commercial airports and
optimize our frequency on local routes; set a priority for markets in
North Asia, Northwest Asia, ASEAN and China.

n Maintain Vietjet’s strong brand health to develop our reputation

and credit with passengers and partners as well as nurturing
sustainable values for the company.

n Develop new services and products on e-commerce platforms to

enhance values and benefits for passengers and bring economic
benefits for the company.

n Diversify our capital portfolio from domestic and international

sources to efficiently serve the company’s financial activities.

n Implement supporting solutions to enhance our cost management

and deploy high-tech appliances for our daily operations.

n Continually develop our fleet of brand new, modern and fuel-

efficient aircraft.

n Participate in various investment projects for terminals and

airport infrastructure to enhance our quality of service and cost
management.

n Nurture an internationally integrated working environment and

continually implement resource development programs for the
company’s long-term development.
42

AWARDS
OVERVIEW

DOMESTIC AWARDS INTERNATIONAL AWARDS

1. Received the Third-class Labor Medal from 6. Vietnam’s 50 Best Performing Companies in 2017 9. Best IPO of the year 2016-2017 and The Company with 1. Received My Favorite New LCC Award in Hong Kong from
State President Tran Dai Quang voted by Nhip Cau Dau Tu magazine Best Public Disclosure of the year 2016-2017 voted by the popular online travel platform, Flyagain.la
the M&A Vietnam 2017 Forum
2. Top 100 Best Places to Work in Vietnam voted by Anphabe and Nelsen 7. The Fastest Growing Airline for Tourists in Vietnam in 2017 2. Honored at Best Employer Brand Asia Awards 2017
as acknowledged by Ministry of Culture, Sports and Tourism 10. Named Best Low Cost Carrier by Department of Tourism of Ho Chi Minh City
3. The Most Favourite Airline in Vietnam voted by Vietnam Economic Times 3. Named Best Ultra Low-Cost Airline 2018 by AirlineRatings.com
8. Received the Platinum Award at Vision Awards 11. Received Pioneering Airline Award at The Guide Awards 2017
4. Top 10 Most Famous Trademarks/brands in Vietnam Annual Report Competition 2016 as voted by League 4. Received Best Vietnam Deal 2017 Award from Finance Asia
as voted by the International Intellectual Property Institute of American Communications Professionals - LACP 12. The Most Favorite Airline in 2017 at the 2017
- Ranked 4th among the Asia Pacific region Trust and Use Award ceremony
5. Top 50 Best Listed Companies in Vietnam 2017 - Ranked the 11th out of 100 worldwide
voted by Forbes Vietnam 13. Top 10 Sustainable Development Businesses as recognized
by Vietnam Economic Times’ Editorial Board and readers
 PERFORMANCE 2017
n Business and Performance in 2017
n Flight Network Expansion

n Fleet Expansion

n Product - Service

n Human Resources

n Subsidiaries & Associates

n Typical Events of the year 2017

n Financial Situation of 2017

Vietjet pioneered and created the new traveling trend

with the global vision
 BUSINESS AND PERFORMANCE IN 2017

46
PERFORMANCE 2017

The year 2017 witnessed Vietjet’s robust international markets were deployed strongly
acceleration of the airline’s 2016 - 2020 with the increase of flight frequency which result
business plan. In the midst of challenging in the great effect on the company’s revenue
market factors, including strong competitions and profit. In 2017, Vietjet recorded VND42,303
in the industry, and high fuel prices, Vietjet still billion in total revenue and VND5,303 billion
achieved outstanding business results. With in profit before tax, increases of 53.83% and
the aim of optimizing the airline’s revenue 96.19% year-on-year, respectively. Those

82
and costs, Vietjet added 17 more A321s, increases resulted from development of sales
increasing its fleet to 51 aircraft - an increase promotion for international routes, chartered
of 24.39% compared to 2016. There were flights, ancillary activities, and improvements
17.11 million passengers carried over the year on efficient cost management. Vietjet also
- an increase of 21.77% compared to previous retained its brand awareness of 99% in the
period. Thanks to a newly opened local route domestic and regional aviation thanks to
and sixteen new international routes, Vietjet continually promotional campaigns, marketing
ROUTES
managed to remain its average load factor events, communication in both domestic and
of 88.05%, which in turn contributed to the international.
airline’s market share of 43% late 2017. This 38 DOMESTIC
figure crowned Vietjet as the leading airline Human resource development was one AND 44
in Vietnam. of the company’s projects of great interest INTERNATIONAL
and developed for the period up to 2020. ROUTES
Within the context of high GDP growth rate In the past few years, the quality of human
and uptrend of investment and trade exchange resources has been improved through the
in 2017, Vietjet managed to take advantage of recruitment of new knowledge, experienced
business opportunities via fleet development, and skilled employees and annual training in
network expansion toward international both domestic and international. Till the end
markets, upgrading of services with a focus of 2017, Vietjet had 3,162 employees and 50
on SkyBoss products and facilitating air foreign experts from more than 35 countries
travel to popularity. Vietjet has successfully in the world, including 499 pilots, 1,046 cabin
implemented the "New Age Carrier" model crews and 592 engineers.
based on high-quality services with a young The Vietjet Aviation Academy Project,
and modern fleet. With an average age of 2.75 regarded as a highlight of Vietnamese
years, Vietjet’s fleet consisted of 24 A320s aviation, is expected to start operating in 2018
and 27 A321s, which conducted 98,805 flights with an Airbus Full-Flight Simulator. Our Vietjet for employees to meet the rising demand of
on 38 domestic routes and 44 international Training Center was also re-granted certificates Vietjet development in coming years. further facilitate travel. Vietjet has continued reliability of 99.66%, the highest of any airline its shares on the stock exchange with the
routes. Aiming to diversify the flight products, for Approved Training Organization (ATO), and to set new standards for Vietnamese and in the Asia Pacific region. Moreover, Vietjet increase of market capitalization from USD1.2
Vietjet cooperated comprehensively with Japan continued to recruit and train 174 pilots, 415 Applying advanced technologies helps speed international aviation with its safe flights. Our utilized Flight Data Monitoring (FDM) to analyze billion at first time to USD2.8 billion.
Airlines and Qatar Airways on an interline basis cabin crews, 96 ground staff, and 48 engineers. up Vietjet’s development. Vietjet continued to safe and efficient operations in 2017 lowered trends and early identification of hazard and
which optimized the globalflight network. The center also coordinated with Airbus, be a pioneer for Vietnamese aviation when aircraft insurance costs under international risk management, and to provide information Furthermore, Vietjet will invest in long-term
Boeing, IATA, ICAO and other international installing check-in kiosks and launching web standards by 30% as compared to 2016. and flight data for fuel saving programs. projects to increase its revenues, profits and
Promotion, marketing programs at organizations to provide intensive courses check-in and mobile check-in systems, which shareholders’ returns.
In 2017 Vietjet has achieved a technical In February 2017, Vietjet listed successfully
 TIANJIN
N SEEO
SEOU
SEO
EO
OUL

JINAN KOR
KOREA
OR
FLIGHT NETWORK EXPANSION
O
OSAKA

48
n In 2017, Vietjet retained its leading position in Vietnam’s domestic market with SUZHO
SUZHOU
a more reasonable resource allocation as dictated by market demand from time to
NANJING SHANG
SHANG
NGHAI
A
time. Company coordinated flexibly its fleet using for domestic and international
PERFORMANCE 2017

flight plans to optimize the company’s profit. At the low seasons in 2017, Vietjet
implemented wet leasing activities or deployed maintenance activities for its fleet LANZHOU
OU NINGB
N GB
GBO
GB
BOO
periodically. WUXI
UX
NEW DELHI ZHENGZHOU
ZHO H
HEFEI
n By end of 2017, Vietjet flew to all domestic airports in Vietnam that could support
A320s and A321s. Its five main bases, Tan Son Nhat, Cam Ranh, Danang, Cat Bi and
CHENGDU
E G X
XI’AN HANGZHOU
H GZHO
G HO
O
Noi Bai improved the flight network connecting new domestic and international
WUHAN
W AN
N
destinations including South Korea and China. CHONGQING
NGQIN
KUNMING
K G CHANGSHA
C
CHA A TAIPEI
TA
AIPEE
n Locally, in 2017 Vietjet opened one new domestic route connecting Hanoi and TA
AIIC
IC
CH
H
HUNG
Dong Hoi in Quang Binh province, and focused on international route development,
especially those in Northeast Asia, for example China, South Korea and Taiwan. TAINAN
Vietjet became the leading passenger carrier between Vietnam and China in 2017.
V
VIETNAM MACAU KAOHSIUNG
The number of international routes being launched last year were 21, increased the HONGKONG
total number of international routes to 44, up 91.3% compared to 2016. MYANMAR HANOI
HAI PHONG
H G

n In addition to 82 routes including 38 domestic routes and 44 international routes, in

TThanh
Th
hanh
a hHHo
Hoaa
2017 Vietjet operated 37 chartered routes with over 1,000 domestic and international C
CHIANGMAI
MAI
flights mainly to markets such as Japan, South Korea, especially China.
Do
D ong
o
on
ng
ng Hoi
YA
ANGO
OON
O O
Hu
Hue
Hu
50 DA NANG
DA NA
NA N
NG
44 TTHAILA
A AND
ND Chu
Chu
h Lai
Laa
Hoang
H ang
ng
g Sa
45
38 40
BANGKOK
ANG K
37 SIEM
M REAP
Quyy Nhon
Q N on
o
Ph
hu Yen
h n
35 Buon
Bu
Buoon M
Maa Thuot
Th
T uo
uot
NH
NHAHA
A TRA
TTRANG
TRAN
RANG
28 30 Da LLaaatt
D

23 25 PHNOM PEN
PHN
PH ENH
EN
HO C
HO CH
CHI MINH
MIN CITY
M CITTY
Y

19
20
14 Phu Quoc
12 15 CAN THO
CAN O
10
10
5
PHUKET
2 2 5
0

Domestic routes International routes

KUALA
UALA LUMPUR
LUM UR

SINGAPORE AUSTRALIA
 FLEET EXPANSION

50 n In 2017, Vietjet continued to operate A320s and A321s - the

most effective aircraft for under six hour flights. By the end
of 2017, Vietjet’s fleet stood at 51 aircraft, including 27 A321s
(220s/230s), equivalent to 53% of its fleet, and 24 A320s,

51
PERFORMANCE 2017

equivalent to 47%. Especially, in December 2017, Vietjet

became the first airline in the region to operate the A321 Neo
aircraft, utilizing its cost effectiveness and supply of seats (230
- 240 seats), saving 15% fuel consumption. AIRCRAFT
n Vietjet is restructuring its fleet, adding more A321s (230
seats) to increase its average seats-per-aircraft from 193 in
2016 to 203 in 2017. With this growing fleet, Vietjet will have
24 A320 &
lower its cost per seat and provide more attractive ticket price 27 A321
in the market.
 PRODUCT - SERVICE

52 n In 2017, Vietjet’s main products, including Eco

and SkyBoss (the airline’s premium class) were
complimented with more services to maximize
benefits for passengers. Added services were
PERFORMANCE 2017

offered, such as check-in priority, boarding priority,

hot meals, pre-ordered beverages, and much
more, were made available.

n Travel insurance products to minimize travel

risks were adjusted and sold to passengers via
www.vietjetair.com.

n Our Skyshop continued to improve its services.

Apart from hot meals and typical Vietjet souvenirs,
many seasonal products were purchased onboard
by passengers, for example, summertime products,
wintertime products, Tet (Lunar New Year) holiday
products, and more.

n Duty-free products proved popular on Vietjet’s

international flights; a wide-range of cosmetics,
perfumes, alcohols, cigarettes, and more, were
sold at reasonable prices.
 HUMAN RESOURCES

54 n VietJet's staffs are mainly aviation specialized such as managers, pilots, TRAINING
12,123

691
aircraft technicians, flight attendants, ground staff, flight attendants ... are
recruited and Training in the country and from abroad. In addition to the
available human resources, VietJet also recruits from universities, colleges
STUDENTS
PERFORMANCE 2017

and other specialized aviation training institutions in the country and abroad. IN 2017
The number of employees will continue to be trained following the aviation COURSES
industry standards at VietJet Training Center before joining the mining chain.
n The goal of VietJet is to "Become a multi-national airline corporation
with wide regional and international network." Therefore, VietJet's staffs are
recruited from more than 30 different countries to fully meet the capacity and
experience of aeronautical specialties (especially pilots, aircraft maintenance
engineers, cabin crews). Based on the strong cultural background, the foreign
labor force and Vietnamese labor forces create a professional, international
and efficient working environment. That is one of the core values contributing
to the development of VietJet over the past 5 years.
n VietJet currently has an approved Training Center that meets the on-site
training needs of pilots, cabin crews, technical staffs and ground operation
staffs. In addition, the cooperation program with Airbus to build Vietjet
Institution equipped with Full Flight Simulator will be operated from 2018
will contribute to further improve the capacity and effectiveness of pilot
training of Vietjet.

AWARDS:
1.Name as one of Top 100 Best Places to Work 2017 by Anphabe (for
fourth consecutive year)
2.Top 50 most attractive employer brands 2017 by Anphabe
3.Asia’s Best Employer Brand 2017 by World HRD Congress (second
consecutive year)
Number of employees, average income:
Total number of staff at Viejet is 3,162 as of 31 December, 2017 (62 staffs
per aircraft), an increase of 26% compared to 2016
Average monthly income is nearly VND15 million/ staff and VND 180
million/pilot
Employee policy:
Vietjet strictly follows a social and health insurance policy for all employees
that is complies with Vietnam’s social and health insurance laws. The cost for
this insurance is around 7% of employees’ total salary cost for the year.
All Vietjet staff (newly-joined and currently-employed) are trained to
learn about Vietjet's working culture; they also receive training in other
professional skills as well as management skills (for management level
only). The average total of training taken by each member of staff is 2% of a
staff member’s working hours per year.
In 2017, Vietjet organized 691 training courses for 12,123 employees in all
aviation specialized
 SUBSIDIARIES & ASSOCIATES

56 VIETJET TRAINING CENTER

Vietjet Training Center (VTC) was established following decision No. 12-12/ VJC-
HĐQT-QĐ on 3rd July, 2012 by Board of Director of Vietjet Joint Stock Company. With
PERFORMANCE 2017

123 instructors, certificated by IATA and CAAV with high experience in aviation industry.

In October 2015, VTC was approved by CAAV as an Approved Training Organization

(ATO) that provides professional training for Pilot, Cabin crew, Technical staff, Ground
Operation Staff and Dispatchers.

In 2016, Vietjet and Airbus made an agreement to provide flight and maintenance
training services in Ho Chi Minh City. With this agreement, VTC will conduct training
for pilots, engineers, dispatchers and instructors complying with Airbus and EASA’s
standards from the first quarter of 2018.

APPROVED MAINTENANCE ORGANIZATION

VJC's Approved Maintenance Organization (AMO) carried out maintenance work
on airplanes, basic technical and planning tasks, and ensured the airworthiness of
all aircraft. VJC performed its own line maintenance work at five major airports in
Vietnam: Hanoi, Hai Phong, Ho Chi Minh, Da Nang and Cam Ranh, replacing engines
and repairing defects. The contents of base maintenance must still be outsourced
due to lack of space for a hangar. In 2017, the Technical Department provided 100%
safe flight with 99.63% technical reliability. On the other hand, the construction and
commissioning of the structural repair workshop was built and contributed to save
much of the costs previously outsourced. The work of human resources was focused
on meeting the requirements of operation and maintenance in the coming years,
fleet growth as well as receiving new aircraft such as A321NEO and B737MAX.
 SUBSIDIARIES & ASSOCIATES
an airside, training and refreshment for safety and
THAIVIETJET security qualification, cost control assurance, and more
besides. These missions helped to bring more revenue
58 ThaiVietjet is an airline operating under a franchising to Vietjet as an important ancillary income, fairly placing
agreement with Vietjet. The carrier is operating four A320s the carrier as a strong competitor in the country and
(all with 180 seat configuration). ThaiVietjet has extended region against the other major and experienced carriers.
its flight network to five domestic routes - from Bangkok to Vietjet’s profile and position in the industry, as well as its
PERFORMANCE 2017

Phuket, Changmai, Changrai and Krabi; and from Phuket to business efficiency (via cooperation with other airlines)
Changrai - and one international route from Bangkok to Dalat was also boosted when the airline received membership
(Vietnam). In addition, ThaiVietjet has cooperated with tour in IATA MITA (cargo) and interline with almost 40 carriers
operators to operate charter flights to destinations in Vietnam worldwide. Internal relationships within the mother
such as Can Tho, Thanh Hoa, Vinh and to Bodh Gaya in India. company were also refreshed with great support from
By end of 2017, ThaiVietjet had carried more than 1.2 Vietjet’s unit departments, all complying with the
million passengers on more than 9.200 domestic and organization’s standards and regulations, regarding
international flights. turn-around time and equipment maintenance, while
positive business results were successfully ensured. In
the calendar year of 2017, Vietjet Cargo was recorded
VIETJET CARGO transporting 68,800 tons of cargo, earning VND746 billion
in terms of revenue; the former is a 25.3% improvement
In 2017, Vietjet via Vietjet Cargo, completed a series of on 2016, and the latter a 11% year-on-year increase. The
important missions assigned by the Board of Management domestic market remains the focal point of business,
for cargo sales and handling services. With strong support accounting for 57,500 tons, and market share, as per
from Vietjet, including management resources, all the CAAV’s report, 35% for this year.
tasks and roles were reviewed and improved, namely In 2017, Board of Management assigned a special
commercial issues, revenue management, customer team to run a freighter operation, leading to the launch
relationship, services supervision at the warehouse of Vietnam’s first ever cargo airline. A list of roles were
placed across certain departments, with a target of
creating a freighter and independent AOC within 2018-
2019. By the end of 2017, research started to look into
the development of infrastructure for the transport of
cargo at airports in Vietnam’s major cities, namely Tan
Son Nhat (Ho Chi Minh City), Noi Bai (Hanoi), Cat Bi (Hai
Phong) and Cam Ranh (Nha Trang, Khanh Hoa province).
A projection for seasonal, long-haul route development
is also under process to accommodate wide-body long-
range aircraft chartered to US, Europe and Australia.
The business development role for Vietjet in the
cargo industry with 2018 - 2019 is a challenge for all
teams, with a targeted volume of cargo set at 95,000
tons, 40% up from 2017’s performance; 2018 will also
be an important year, moving from services supplier
to a professional cargo carrier alongside with reliable
cargo services of passenger aircraft. The task requires a
proactive and constructive action plan for both the cargo
team and mother company as well.
 TYPICAL EVENTS OF THE YEAR 2017

1. Signed USD7.3 billion agreements with Safran - CFM, GECAS in France.

60
2. Announced the launching of direct route connecting Vietnam and India at
Vietnam - India Business Forum.
PERFORMANCE 2017

3. Signed an agreement to open a direct route connecting Vietnam and Australia

at Sydney, Australia.

4. Being awarded the Third-Grade Labor Order of State President for outstanding
achievements in charity and humanitarian work and contributions to the
country's development.

5. Secretary of the HCMC Party Committee Nguyen Thien Nhan visited Vietjet on
the first working day of the Lunar New Year 2018.

6. Signing many important cooperation agreements with the world’s leading

partners including Pratt & Whitney, Qatar Airways, Japan Airlines, Mitsubishi UFJ,
GOAL, etc.

7. Leaders of Vietjet participated in the APEC Vietnam 2017.

8. Ground-breaking of Vietjet Aviation Academy at Saigon Hi-Tech Park in District 9,

Ho Chi Minh city.

9. Welcomed the first Airbus A321Neo in the South East Asia.

10. Received Air Operator Certificate (AOC) recertification of affiliated company

in Thailand.

11. Attended many domestic and international business forums, including Nghe
An, Danang Investment Forum, Gateway to Vietnam, Vietnam Access Day, and
international business forums and conferences.

12. Officially listed on Ho Chi Minh Stock Exchange on February 28th, 2017.

13. Welcomed the aircraft featuring the official logo for the 45th anniversary of
diplomatic relations between Vietnam and France.

14. Celebrated the third anniversary of the Vietnam-Taiwan service operation.

15. Accompanied with Miss Universe Vietnam and Miss Vietnam.

16. Opening the domestic route connecting Hanoi to Quang Binh, international
routes including Ho Chi Minh City (HCMC) - Taichung (Taiwan), HCMC - Phnom
Penh (Cambodia), HCMC - Phuket (Thailand), HCMC - Changmai (Thailand), Hanoi
- Siem Reap (Cambodia), Hanoi - Singapore, Hanoi - Yangon (Myanmar), Hanoi
- Kaohsiung, Da Nang - Seoul, Nha Trang - Seoul, and Bangkok - Dalat.
 FINANCIAL SITUATION IN GENERAL

62
In VND Billion 2014 2015 2016 2017 2014 2015 2016 2017

Total Asset 1. Liquidity Ratio

7,677 12,045 20,063 31,658
PERFORMANCE 2017

Current Ratio 1.00x 0.98x 0.98x 1.27x

Equity 967 2,147 4,734 10,594
Quick Ratio 0.98x 0.95x 0.96x 1.25x
Total Revenue 8,699 19,845 27,499 42,303
2. Capital Structure Ratio
Net Operating Profit 412 1,160 2,671 5,298
Debt/Total Asset (%) 87.4% 82.2% 76.4% 66.5%
Profit Before Tax 444 1,168 2,703 5,303 Debt/Equity (%) 694% 461% 324% 199%

Profit After Tax 360 1,171 2,496 5,074 3. Capacity Ultilization Ratio

Revenue/ Total Asset 1.6x 2.0x 1.7x 1.6x

4. Profitability Ratio

ROE 45.9% 75.2% 72.5% 66.2%

ROA 6.8% 11.9% 15.5% 19.6%

ENVIRONMENTAL IMPACT REPORT

ENVIRONMENTAL IMPACT REPORT

Vietjet has a vision and goal to provide high quality air services
at low cost while respecting sustainable development and
contributing to environmental protection. This spirit is always taken
care of by the company in a uniform and consistent manner in
all its operation and business activities, contributing to reducing
emissions, noise and other natural resources.

Since its inception, Vietjet has always prioritized the strategy

of developing a modern fleet of aircraft with efficiently fuel
consumption, and low noise level. After more than 6 years of
operation, Vietjet’s fleets consists of 23 A320s and 31 A321s.
Among them, some CEO aircraft with the sharklet wingtip can save
5% of fuel consumption and the NEO aircraft can save more than
15% of fuel consumption and significantly reduces cabin noise as
well as noise to the outside environment.

Not only maintain a modern and young fleet and constantly

receive new aircraft, but also has Vietjet actively implemented
a comprehensive fuel saving program through the contract
SFCO2 signed with the Safran Group at Paris Airshow 2017. This
program helps Vietjet improve operation efficiency by reducing the
consumption of fuel as well as reducing CO2 emissions.
Applying advanced technology and environment friendly
solution in daily operation is one of the top priorities of Vietjet.
By analyzing both operational and maintenance aspects, Safran’s
SFCO2® service develops procedures and recommendations to
address airlines’ need for greater fuel efficiency which can reduce
Vietjet fuel consumption up to 5%.

By 2017, the first phase of the SFCO2 program saved 1,855,115

kilograms of fuel (equivalent to 1,855,115 USD), thereby reducing
5,843,612 kilograms of CO2 emissions.
ASSESSMENT OF BOARD
OF MANAGEMENT
n Assessment of Business Results
n Business Plan 2018
 ASSESSMENT OF BUSINESS RESULTS

n In 2017, with dedicated contributions from all Vietjet's employees and leadership, Vietjet overcame many challenges
and continued to achieve positive growth rates in revenues and profits. Vietjet records a total of 42,303 billion VND in
total revenues and 5,303 billion VND in profits before tax, respectively increased by 53.83% and 96.19% compared
to previous year. This performance resulted from increases in international passengers and charter flights and a
correspondent growth in ancillary activities thanks to the expansion of fleet and number of flights.

n In2017, total revenue increased by 0.7%. Profits before and after taxes increase 40.6% and 49.5% respectively as
compare to 2017 budget. These increases can be attributed to Vietjet's management capacities which in turn helps
reduce cost and raise profits.

2016 2017 2016 vs 2017 Actual vs KPI 2017

2017
Air Transport Revenue 15,917 22,548 41.66% 21,589 4.44%
(billion vnd)
Company Net Revenue 15,884 22,644 42.56% 21,274 6.44%
68 (billion vnd)
Consolidated Net Revenue 27,499 42,303 53.83% 42,018 0.68%
(billion vnd)
ASSESSMENT OF BOM

Company Profit before tax 1,622 2,045 26.08% 2,291 -10.74%

(billion vnd)
Consolidated Profit before 2,703 5,303 96.19% 3,772 40.59%
tax (billion vnd)
Company Profit after tax 1,416 1,817 28.32% 2,062 -11.88%
(billion vnd)
Consolidated Profit after tax 2,496 5,074 103.29% 3,395 49.46%
(billion vnd)
 BUSINESS PLAN 2018

IN THE YEAR 2018, THE CARRIER FOCUSES ON THE

MAIN TARGETING ACTIVITIES AS FOLLOWINGS:

n Maintain the leadership position in the domestic market share.

n Continue to expand our network to feasibly international markets such as China,

South Korea, Japan, Taiwan as well as develop more anciliary products and service to
increase profit for the company.

n Implement 4.0 technological program thoroughly across the system.

n Develop our human resource via upgraded training programs and put Vietjet
Aviation Academy into operations.

n Maintain and develop a transparent and fair working environment to attract

international and highly qualified employees.

70
ASSESSMENT OF BOM
 REPORTS OF BOARD OF DIRECTORS
AND SUPERVISORY BOARD

n Assessment of Company and Board

of Management performance
n Orientation plan of Board of Directors in 2018
n Performance of Board of Directors
n Committees
n Performance of Supervisory Board
n Risk Management
n Internal Transactions

We believe that connection makes an ecosystem serving

people and economic growth, bringing a brighter future.
 ASSESSMENT OF COMPANY AND ORIENTATION PLAN OF BOD IN 2018
BOARD OF MANAGEMENT PERFORMANCE

Assessment of Company Performance In 2018, BOD has nine main targets:

2017 played a meaningful role in Vietjet history when marking the airlines’ 10th anniversary of foundation 1. Increasing the frequency of domestic and international routes, which are being operated effectively; maintaining
and 1st of being listed in the stock market (IPO on 28 Feb., 2017). the leading position in terms of passenger volume; ensuring all routes are profitable; increasing ancillary revenue;
Company exceeded its 2017 KPI: maintaining load factor.
- Operated 38 domestic and 44 international routes;
- Carried 17.11 million passengers have been carried, an increase of 22% (including 12% domestic increase 2. Maintaining strong brand recognition; meeting high-class international quality standards equivalent to Japan Airlines
and 91% international increase.) and Qatar Airlines.
- Operated 51 arcraft, with average age of 2.75 years old, Vietjet’s fleet was among the youngest in the
world. 3. Completing, standardizing, and automating operational processes; 100% operational activities to be based on
- Operated 98,805 safe flights whose operation safety indicators ranked top of the region; contribute to advanced SOPs; building and implementing a technology strategy that is comprehensively and synchronously applied
local and regional tourism. throughout the company and all member companies.
- Average Load Factor 2017: 88.05%
- Net revenue (billion VND): 42,303 4. Maintaining a fresh, young, dynamic, transparent and cost-conscious working environment for all employees; saving
- Profit (billion VND): 5,303 5% Operating Costs (excluding fuel costs) compared to 2017; controlling the discrepancies of fuel pumping ratio.
- Basic earnings per share: 11,356 VND
- Total asset (billion VND): 31,658 5. Ensuring safe operations; meeting and exceeding all of the operation targets, especially indicators of productivity and
- Owners’ Equity (billion VND): 10,594 efficiency, on time, safety. Being ready for operating B737MAX aircraft.
- Profit after tax (billion VND): 5,809
- Taxes paid to State Treasury (billion VND): 4,200 6. Improving management capacity, enhance management system, management qualification and teamwork ability.
- Taxes paid/each employee (billion VND): 1.4 Organizing and well operating the risk management system of the company and the member companies.
- Last year, company increased its charter capital 2 times, from 3,000 billion VND to 3,223 billion VND by
private offering 22,388,060 shares for Sunflower Sunny Investment Company Limited, and to 4,513 billion 7. Corporate governance in accordance with international standards of listing.
VND by offering dividend as bonus shares.
It is highlighted that VJC shares’s price increased over triple just after one year of being listed on HOSE Stock 8. Continuing to implement strategic projects about training and human resources; investing infrastructure for training,
74 Exchange, which added up to the firm’s market value of more than 4 billion USD. ground operations, technical operations; creating a centralized and automatic management system.
Beside business operation, Vietjet’s leaders put high eyes on working environment, created motive for
PERFORMANCE OF THE BOD

young employees. Vietjet was granted “Top 100 Companies having Best working environment” for the 5th 9. Contributing to the development of aviation industry and legal documentations related to aviation industry;
& SUPERVISORY BOARD

time. participating in the propaganda of civilized aviation for the passengers and the community, the security and safety
Vietjet also cared about community oriented activities. Vietjet’s charity teams footed in difficult places to regulations; contributing to the national tourism program and the development of local economy.
help poor residents and to build up a “for other spririt” within the company.

Assessment of Board of Management Performance (BOM)

Board of Management accomplished their assigned tasks in 2017. All resolutions from shareholders
Committee and Board of Directors were well carried out.
Complements are hereby given to the Board of Management’s effort, determination and unity spirit in
raising Vietjet to a higher level of development.
However, Board of Management needs to improve the following in the year 2018:
- Human resource organization, major factor of success of company
- Continue to synchronize procedures, regulations, targets in the Corporate Governance System.
- Improving employees’ working skills by the training policies and the payroll system following efficient
business contribution.
 BOARD OF DIRECTORS’ REPORT
No. Decision Date Content 19 13-17/VJC-HDQT-NQ 13/04/2017 Nomination of BOD and Board of Supervisors members for the Term 2017 - 2022.

BOD Approve Charter Capital increase by issuing 22,388,060 shares to Sunflower Sunny Investment
1 01-17/VJC-HDQT-NQ 05/01/2017 20 14-17/VJC-HDQT-NQ 24/04/2017 Cut-off date for cash dividend 2016 (10%).
Company Limited at the price of 84,600 VND/share.

BOD approve the selection of CCB as partner of 10 Airbus A321 aircrafts ownership transfer and Approve the selection of re-insurance brokers and local insurer for VietJet Fleet Aviation insurance
2 01a-17/VJC-HDQT-NQ 12/01/2017 21 15- 17/VJC-HDQT-NQ 03/05/2017
lease back scheduled to be delivered in year 2017, 2018 and 2019. program year 2017-2018

3 01b-17/VJC-HDQT-NQ 03/02/2017 BOD approve the selection of partner to transfer aircraft ownership and lease back for year 2017. 22 16-17/VJC-HDQT-NQ 29/4/2017 Adjustment of Remuneration

4 01b.1-17/VJC-HDQT-NQ 03/02/2017 BOD approve the selection of partner to transfer aircraft ownership and lease back for year 2017. 23 16a-17/VJC-HDQT-NQ 26/5/2017 Adjustment “Location and Dimension of new VTC project”

5 01b.2-17/VJC-HDQT-NQ 03/02/2017 BOD approve the selection of partner to transfer aircraft ownership and lease back for year 2017. 24 17-17/VJC-HDQT-NQ 6/6/2017 Plan if issuing shares 100:40

6 01b.3-17/VJC-HDQT-NQ 03/02/2017 BOD approve the selection of partner to transfer aircraft ownership and lease back for year 2017.
25 17a-17/VJC-HDQT-NQ 6/6/2017 Interim cash dividend 2017 (20%)

7 01b.4-17/VJC-HDQT-NQ 03/02/2017 BOD approve the selection of partner to transfer aircraft ownership and lease back for year 2017.
26 18,19-17/VJC-HDQT-NQ 29/5/2017 CFM engines for 100 Boeing Aircraft.

8 02-17/VJC-HDQT-NQ 15/02/2017 Appoint Mr Tony Quek As Director of GO Department from 01/03/2017

27 20,21-17/VJC-HDQT-NQ 29/5/2017 CFM Engine for 98 Airbus Aircraft

9 03-17/VJC-HDQT-NQ 06/03/2017 Approve plan for AGM 2016

28 22-17/VJC-HDQT-NQ 5/6/2017 Appointed Deputy Director of SSQA

10 04-17/VJC-HDQT-NQ 01/03/2017 Approve wet-lease (02) A320-232 from BH Air

29 24-17/VJC-HDQT-NQ 27/6/2017 Stop Appointed CFO

11 05-17/VJC-HDQT-NQ 02/03/2017 BOD Approve Agreement Number 10 withAirbus

76 30 25-17/VJC-HDQT-NQ 30/6/2017 Change Spoke-man

BOD approved Charter Capital increase from 3,223 billion VND to 4,513 billion VND by issuing
12 06-17/VJC-HDQT-NQ (hủy) 10/03/2017
PERFORMANCE OF THE BOD

128,955,224 shares to current shareholders from Owners’ Equity 31 26-17/VJC-HDQT-NQ 30/6/2017 Interim cash dividend 2017 (10%)
& SUPERVISORY BOARD

13 07-17/VJC-HDQT-NQ 20/03/2017 BOD approve AGM 2017 program

32 29-17/VJC-HDQT-NQ 14/07/2017 Interim cash dividend 2017 (10%)

14 08-17/VJC-HDQT-NQ 20/03/2017 Approve wet-lease Agreement with Freebird Airlines

33 36-17/VJC-HĐQT-QĐ 30/08/2017 Cut-off date for receiving new shares.

15 09-17/VJC-HDQT-NQ 20/03/2017 Approve wet-lease Agreement with Myanmar Airways International (MAI)
34 38-17/VJC-HĐQT-NQ 29/09/2017 Approve plan for issuing 128.955.224 shares

16 10-17/VJC-HDQT-NQ 23/03/2017 Approve the change of Owner and Lessor of 1 aircraft Airbus A320-200 (MSN6341).
35 39-17/VJC-HĐQT-NQ 29/09/2017 Settle odd shares

17 11-17/VJC-HDQT-NQ 07/04/2017 Date for AGM

36 40-17/VJC-HĐQT-NQ 29/11/2017 Cut-off date to set shareholders opinions.

18 12-17/VJC-HDQT-NQ 13/04/2017 Approve the Amendment No. 3 with CFM

 BOARD OF DIRECTORS’ REPORT
COMMITTEES:

l The Aviation Safety Committee is responsible for ensuring aviation safety of the Company. The
Begin/End Date of BOD No. of meeting
No. Member Tittle % Reason Aviation Safety Committee co-ordinates with relevant departments to supervise and to comply with
member attended
regulations set forth in the Company’s Safety Management System. The Company’s CEO, Madam
Nguyen Thi Phuong Thao, serves as the Chairwoman and SSQA; Vice President, Mr. To Viet Thang, acts
1 Madam Nguyễn Thanh Hà Chairwoman 35/35 100% as the Standing Vice Chairman of the Aviation Safety Committee. Two additional members serve as
Vice Chairman, Mr. Luu Duc Khanh and Mr. Luong The Phuc.
2 Madam Nguyễn Thị Phương Thảo Vice- chairwoman 35/35 100%
l The Aviation Security Committee is in charge of ensuring the aviation security for the Company by
coordinating with relevant departments to manage and execute all control activities as stipulated in
3 Dr. Nguyễn Thanh Hùng Vice- chairman 35/35 100% the Aviation Security Program of the Company. Madam Nguyen Thanh Ha, Chairwoman Chairs the
Aviation Security Committee and Madam Nguyen Thi Phuong Thao, CEO and Vice Chairwoman, serves
4 Mr. Chu Việt Cường Member 35/35 100% as Vice Chairwoman. VP Operation, Mr. Luong The Phuc is member to the Aviation Security Committee.
- The Organization and Personnel Committee addresses and decides on issues relating to personnel of
the Company, including but not limited to, identifying organizational issues and reviewing employee
5 Mr. Lưu Đức Khánh Member 35/35 100% salaries. The Committee consists of four members: Chairwoman madam Nguyen Thanh Ha as
Committee Chairwoman, madam Nguyen Thi Phuong Thao as Vice Chairwoman and Mr Luu Duc Khanh
No more BOD member as member of the committee.
6 Mr. Lương Thế Phúc Member 13/35 37%
since 20/4/2017
l The Emergency Response Management Committee is responsible for managing all activities relating
BOD member since to emergency response of the Company, collaborating with other departments to supervise and fulfill
7 Mr. Đinh Việt Phương Member 22/35 63%
20/04/2017 all requirements of the Company’s Emergency Response Plan. This committee is chaired by Mr. Luu Duc
Khanh, with assistance of Mr. Luong The Phuc

l The Risk Management Committee is responsible for assisting the BODs by providing an independent
Vietjet has six members in Board of Directors, including one independent - These Committees implemented their respective tasks properly and and objective assurance to its management and shareholders of the continuous improvement of the
member. Each member in the Board was assigned the following tasks: reported regularly to the Board and played effectively the roles of the Company’s risk management systems, business operations and the proper safeguarding and use
78 • Madam Nguyen Thanh Ha (Chairwoman) and Dr. Nguyen Thanh Hung Committees. of its resources and assets. The Risk Management Committee provides a general evaluation of and
(Vice-Chairman) are in-charge of strategy, policy making, foreign affairs and - All members in the Board have company training certificates. assistance in the overall improvement of its risk management, control and governance processes.
PERFORMANCE OF THE BOD

infrastructure projects. - All Board members have extensive practical experience in Corporate The Risk Management Committee comprises of nine members and is chaired by Madam Nguyen Thi
& SUPERVISORY BOARD

• Madam Nguyen Thi Phuong Thao and Mr. Luu Duc Khanh are in-charge of Governance practice and have attended many other management programs. Phuong Thao. Mr. Luu Duc Khanh serves as Vice Chairman.
operations. - BOD carried out their tasks effectively, guiding the company in important
• Mr. Chu Viet Cuong is in charge of Insurance, PR and Investor Relations. directions, for example, buying aircraft, improving Company Organization
• Mr. Dinh Viet Phuong is in charge of infrastructure projects. Chart, etc…
Madam Nguyen Thanh Ha is a non-executive independent member. She has - BOD maintained regular activities (quarterly meetings and unexpected
performed her role properly, ensured the inspection and supervision of the meetings as required). BOD always worked closely with Company Board of
Company’s general activities and ensured that the shareholders received Management to make on-time decisions.
their benefits. - Board members completed all their assigned tasks and attended all Board
There are five committees under control of the Board. Meetings.
 PERFORMANCE OF SUPERVISORY BOARD
l PERFORMANCE OF SUPERVISORY BOARD l ALL CONCLUSIONS AND RECOMMENDATIONS OF SUPERVISORY BOARD WERE PROVIDED TO THE BOD,
BOM AND RELEVANT DEPARTMENTS, SOME MAIN POINTS:

No. Member Position Commission (VND) Share ownership

To amend and supplement the Company charter and Corporate governance policy to submit AGM for
approval.
1. Tran Duong Ngoc Thao Head of Internal Control 45,000 To speed up the digitization programs (Technology 4.0) in all Company’s activities, ensuring the
achievement of building Vietjet into an advanced consumer airline with a strong e-commerce platform.
2. Doan Thu Huong Member 211,400

3. Pham Van Dau Member 42,000

l RESULTS OF MONITORING THE COMPANY'S OPERATIONAL AND FINANCIAL PERFORMANCE

Supervisory Board (BOS) completed its duties for the year 2017 with the following activities: Executions of AGM’s resolutions Owner equity is VND10,594 billion, increased by Besides, in 2017, the Company also conducted
The Company completed all resolutions of AGM 123.8% compared to 2016 fiscal year. the review for semi-annual financial statements
− Monitoring the executions of Shareholders’ Annual General Meeting (AGM) by directly checking documents and reviewing 2017 in listing shares to Ho Chi Minh stock • Authorized by the AGM 2017, the Board of and the audit of fiscal financial statement based
reports of BOD and BOM. exchange, issuance of new shares to increase Directors discussed with the Supervisory Board, on IFRS standards.
− Supervising management activities of BOD and BOM. charter capital, allocations of profit, changes of to conclude auditing contract for semi-annual Supervision of the Company’s business activities
− Attending extended and on-demand BOD meetings to capture business performance and development strategies of the Company. head office address and supplement business and audited financial statements with KPMG BOS supervised the Company's business
− Cooperating with Internal Auditors and KPMG’s External Auditors to assess financial & accounting operations as well as auditing activities in 2017. Auditing Limited Company based on Vietnamese activities by directing internal audit activities of
financial reports for 2017. • The company listed its 300 million shares on Ho accounting standard and international accounting the Company, promptly reported all findings and
Chi Minh Stock Exchange on 28/02/2017 with standards (IFRS). identified risks to the BOM in order to conduct
In 2017 the BOS held three regular meetings with 100% attendance. In addition, members of the Board regularly communicated the starting price of 90,000 VND / stock, the • In 2017, the Company did not issue yet shares corrective actions and preventive actions.
by telephone, email, to timely handle with unexpected work or related operational issues. capitalization amounted to 27 trillion dong. As of under the employee's stock option program
31/12/2017, the market price was 145,000 dong (ESOP). In 2017, an Internal Audit completed the
per share, bringing the market capitalization to • The increase in foreign ownership limit has not approved inspection and audit plan:
over 65 trillion dong. been implemented in 2017. • Completion of all periodic audits of departments
• In 2017, the Company successfully completed In 2017, the Company paid remuneration to BOM and affiliated companies, 2017’s audit result
Meetings Participants Agenda
two issuances of capital: the private and BOS in accordance with the budget approved shows that the company complied with the
80 placement to increase chartered capital by the General Meeting of Shareholders. established internal control system.
- Election of Head of Supervisory Board to VND 3,223,880,600,000 in March 2017 • The Company has fulfilled all taxation duties to • The results of periodical audits recorded a
Meeting 1:
3/3
PERFORMANCE OF THE BOD

20/04/2017 and the issuance of 40% additional shares the State. decrease in the number of findings by 70%
& SUPERVISORY BOARD

- Assigning tasks within the Supervisory Board

from equity to increase chartered capital compared to 2016 due to the fact that audited
to VND4,513,432,840,000 in October 2017, Supervision of financial result of 2017 departments successfully corrected the identified
- Review internal audit activities in the 1st half of 2017
following AGM’s resolutions. The BOS reviewed the Company's semi-annual issues.
- Review the Company’s overtime control • The Company has advanced the first dividend financial statements and annual financial • Completing a monthly audit of the reservation
Meeting 2: payment of 20% by cash in July 2017, the second statements, and regularly discussed with the system to ensure detection of irregular
3/3
06/10/2017 dividend payment with the rate of 10% in cash independent auditor on the internal control and transactions and to recommend the relevant
- Review information disclosure activities of six months after the listing
in February 2018 in accordance with the AGM’s risk management of the Company. management taking timely corrective measures.
- Finalize supervisory activities for the 4th quarter in 2017 resolutions. Audited financial statements for the year • In addition, the BOS proposed to improve and
• Consolidated revenue is VND42,303 billion, 2017 reflect actual financial position as of update internal control procedures and manuals
- Review safety management of Company’s operations fulfilling 100% of 2017 plan and 53.8% growth 31/12/2017, actual results of operations of the to improve the effectiveness of the Company-
compared to 2016; consolidated profit after tax fiscal year, and in compliance with the current wide management system.
- Review finance & accounting activities was VND5,073 billion, completed 150% of 2017 Vietnamese accounting system and related legal
Meeting 3:
3/3 plan and increased 103.3% compared to 2016; regulations, and was audited by KPMG Vietnam.
20/12/2017
- Check the execution of AGM’s resolutions of 2017

- Review performance of Supervisory Board and Internal Audit department in 2017

 SUPERVISION BOARD’S REPORT

l Directed and managed the operations and business activities according to business plans and key
RESULTS OF MONITORING THE BOD AND BOM performance indicators (KPI) assigned by the BOD.
l Organized daily operation meetings, weekly management meetings, and timely updated the

1. Supervision of BOD activities operations’ situation and business activities in order to make strategic business decisions which reflect
In 2017, the Board of Directors complied with the Company's Charter and Corporate Governance Policy: the development of aviation industry.
l Completed the execution of 2017 AGM’s resolutions. l Directed the preparation of the Company's procedures and regulations to ensure that all activities are

l Deployed BOD meetings and extended meetings with the BOM, to agree on strategies, growth in compliance with all current applicable laws and regulations; executed the application of technology
directions and business plans, to direct management activities within the authority of the Board in for all operations and commercial activities of the Company.
order to achieve business objectives in accordance with the business plan approved by the AGM. l Decided other issues with the authority of the BOM.

l Participated meetings of the Aviation Safety Committee, Aviation Security, Risk Management In 2017, the BOS has not recorded any violations in the management and administration of the BOM
Committee, Human Resources Committee, etc. to provide guidance to ensure safety operations of the and other management positions of the Company.
Company.
l Issued resolutions, decisions and supervising the BOM in implementing resolutions of the AGM and CO-ORDINATION BETWEEN SUPERVISORY BOARD, BOARD OF DIRECTORS AND BOARD OF MANAGEMENT
in the investment and business development activities.
l Promulgated the Corporate Governance Policy and and the Regulation on disclosure of information l During the supervision and control activities of the BOS, BOD, BOM and other departments of the
following the standards applied to listed joint-stock companies. Company supported and coordinated well with the BOS, all requested documents were timely and
l Decided other issues within the authority of the Board of Directors. sufficiently provided.
l The BOS frequently provided comments on corporate governance and the system of procedures

2. Supervision of BOM activities and regulations to the BOD and, thereby contributing to solving difficulties arising from management
The BOM directly managed the business according to the functions and duties prescribed. Based on the activities of the Company.
resolutions of the AGM and the BOD, BOM has performed the following tasks: l In 2017, the BOS did not receive any complaints from shareholders about the Company's
p y business
and management.

SUPERVISORY BOARD’S PLANS FOR 2018

In 2018, the BOS will continue to improve its operations, strengthen thehe inspection and supervision
tivities of the BOD and BOM:
of the company's operations and commercial activities by supervising activities
84 l Monitor the Company’s compliance with current applicable laws, regulations
ulations of aviation, Company
charter and Corporate Governance Policy.
PERFORMANCE OF THE BOD

l Check the implementation of the AGM’s resolutions.

& SUPERVISORY BOARD

l Examine and review mid-year financial statements and annual financial statements. Maintain regular

dited financial statements.

contact with independent external auditors to improve the quality of audited
l Strengthen BOS’s performance by focusing on risk management, controlling
lling and detecting significant
caantt
ve measures.
and potential risk factors so that the Company can timely apply preventive
l Monitor the implementation of information disclosure activities to ensure
sure compliance with curr current
rrrentt
regulations.
l Direct the internal audit activities; improve auditing processes and procedures
rocedures and strengthe
strengthen en
e n the
audit of software applications in the Company, apply automated solutionss to the current audit tta ask
skss in
tasks
order to increase efficiency of monitoring and control.
l Regularly attend meetings of the BOD and give advise for risk management
ment to increase effectiveness
eccti
t ve
v ness
of management.
 BREAKDOWN OF RESPONSIBILITIES FOR RISK
MANAGEMENT ACTIVITIES AT VIETJET
Responsibilities of the Board of Directors: Responsibilities of the Risk Management - Set up and maintain the organizational structure
- Decide on the risk management structure of the Committee: for Operational Risk Management Regulations;
Company, including its components, personnel - Building risk management strategies and - Supervise the implementation of the operational
involved in risk management; decides on roles, policies to submit to the BOM for approval; risk management regulation throughout the
responsibilities and relationships of these - Supervising the implementation of approved system and report to the BOD.
departments in risk management; complete risk management strategies and policies;
forms on reporting on risk; - Ensuring all HODs and staffs of the Company Responsibilities of Head of Departments
- Approve, promulgate, and adjust the Operational are trained and knowledgeable about risk - To be responsible for the Operational Risk
Risk Management Regulations; management; Management Regulations in their respective
- Supervise, monitor and evaluate the - Periodically reporting to the BOD on issues departments;
effectiveness of Operational Risk Management related to risk management, on the effectiveness - Disseminate, organize and implement
in the whole system of VJC; of risk management activities of the Company effectively the regulations and guidelines on
- The Board of Directors establishes a Risk Operational Risk Management Regulations at the
Management Committee and assigns full-time Responsibilities of the Board of Management: unit;
members to join the board to help the Board - Issue specific instructions for the implementation - Encourage, promote the culture of Operational
fulfill these responsibilities. of regulations on management of operational Risk Management Regulations in their respective
risks; departments.

INTERNAL TRANSACTIONS:
In 2017, there were 5 internal transactions (the detailed information were showed in the audited
financial statement 2017).

86
PERFORMANCE OF THE BOD
& SUPERVISORY BOARD
 SUSTAINABLE DEVELOPMENT

There will be a bright future for the world, and we are

continually making efforts to touch it sooner
 SUSTAINABLE DEVELOPMENT

FUTURE IN THE AIR - WINGS OF HOPE

Four years ago, some research by Nielsen revealed some reasons for optimism.
According to their survey, 73% people living in Vietnam, would be willing to pay
higher prices for products of companies with good corporate social responsibility
(CSR) reputations. This means that customers, in particular, and people, in general, are
paying special attention not only to products and services they are using but above all
they look for core values and responsibilities, which companies have been building and
contributing to society.

With that strong support, the majority of reputable, sustainably developing

companies have a strong sense of what they can do for society.

The “pyramid” of CSR, according to Dr. Archie B. Caroll, a professor of business

management at University of Georgia (United States), has been considered the most
comprehensive and widely used model for CSR, one that includes legal, economic,
ethical and philanthropic responsibilities. In over 10 years, since its establishment and
over the course of its development, Vietjet has incorporated these four core values and
responsibilities to become the global’s favourite airline.

Focused on economic growth and development, Vietjet has completed and

balanced our corporate administration objectives in line with social, volunteering and
environmental goals.

As a new-age airline, Vietjet determinedly seeks sustainable development which

can only be fulfilled when economic and financial targets are secured, bringing long-
term benefits for our customers, shareholders, employees and the community. Vietjet
always ensures economic growth with strong indicators, such as total assets, revenue,
profits all showing stable growth and gradually increasing over the years.

Economic growth has also helped Vietjet increase its contribution to society. We
contribute to the State budget, secure the financial interests for shareholders, and
create jobs for the local labour force.

90
SUSTAINABLE DEVELOPMENT
 SUSTAINABLE DEVELOPMENT
Besides receiving the Third Labour Medal from the State President, Vietjet also celebrated its first
anniversary of being listed on Ho Chi Minh Stock Exchange (HOSE). Vietjet shares have become one of the
most popular stocks, being listed at VN30 with a market capitalization of more than US$4 billion. For two
consecutive years our CEO, Madam Nguyen Thi Phuong Thao has been on the list of world’s billionaires
released by Forbes Magazine (US) with a wealth of US$3.1 billion. In 2017 Vietjet also received new
aircraft including the first A321neo aircraft to ever operate in Southeast Asia, allowing the airline to open
new international routes.

With a new-age airline’s strategic vision and mission, and aiming to follow a “Consumer Airline” model,
while continually making innovative breakthroughs with aviation services, Vietjet continues to bring
pleasure and satisfaction to customers through our outstanding, luxury services and friendly smiles not
to mention our many incentives as well as attractive promotions that allow travelers to travel at highly
affordable prices.

With our important human resources - we have more than 3,000 employees, pilots, cabin crews
of above 30 different nationalities - Vietjet continues to maintains, actively disseminate and
implement meaningful and far-reaching charity programs.

Besides bringing millions of flying opportunities to people at reasonable prices, Vietjet also
actively shares and contributes to spreading good values across society. Sharing with the poor,
disadvantaged children has been a big part of the Vietjet family’s life. It’s also part of our
sustainable development program that Vietjet’s leaders have devoted their hearts to and
vowed to build and develop.
Specifically, for the past years, Vietjet has launched and donated more than 10,000 health
insurance cards to the poor and needy across the country.

On the occasion of the Lunar New Year and Mid-Autumn Festival of 2017, for the second
year consecutively, Vietjet staff organized “Warm Tet” and “Warm Mid-Autumn Festival -
Spread the Love” programs to bring happy festive moments to hundreds of disadvantaged
children at Thi Nghe disabled orphan patronage center (Binh Thanh District, HCMC).
Making Tet cakes, visiting Spring Flower Festival, receiving lucky money, celebrating the
party with mid-autumn lanterns, singing, exchanging, and much more besides, these
were unforgettable activities that Vietjet’s leaders and staff got to share with these
children.

From the north to the south, beside the Thi Nghe disabled orphan patronage center
92
(HCMC), the Social work center of Lao Cai or S.O.S Village Nha Trang, S.O.S Village
Danang also received timely sharing from Vietjet’s employees. The practical gifts,
SUSTAINABLE DEVELOPMENT

necessities and cash, all worth hundreds of millions of VND, were donated to support
oy, and bring laughter to their faces.
the spirit of these children, contribute to their joy,
 SUSTAINABLE DEVELOPMENT

Besides Vietnam-based activities, for many years, our staffs have made pilgrimages
and charity trips to Bodh Gaya in India. Vietjet staffs and volunteers arrived Suryapru
village, visited and gifted to more than 100 poor households here. The members
handed out cash and gifts worth USD2,000 to poor households. A further US$2,200
was donated to Nun Tu Tam, a local who teaches the local children with the help of
Indian youths. Nun would manage this fund to support lives of villagers.

Besides, Vietjet volunteer group also visited the Siddhartha school which was
built by Nun Tu Tam and gave 10 desktop computers and 1,000 lucky money gifts;
the group also attended the inaugural ceremony of the school’s computer lab
and tailoring training room, which will all contribute to supporting and bringing
knowledge to the poor and needy.

Recognized by Asia Guinness as “The airline with most creative entertainment on

board”, Vietjet is a dynamic and inspirational brand for meaningful social activities.
A special aircraft brought the national U23 team, who came second at AFC U23
Championship 2018 in China. Vietjet also cooperated with the Vietnam Youth Union
to organize a special flight as part of our “Spread the love” program, supporting
150 poor workers and students by taking them all back home from HCMC to Hanoi
for Tet Holiday. These special flights all had a special meaning and received support
from the community.

In addition, Vietjet continuously supported many more meaningful community

activities and programs including, the Vu A Dinh scholarship fund, Youth Career Day,
Olympic Day Run for public health, “As if we never parted” TV show, offering support
to students during exam season, the International Hot Air Balloon Festival 2017,
Musical tributes for Trinh Cong Son, IRONMAN 70.3 Vietnam, beauty pageants such
as Miss Universe Vietnam, Miss Vietnam and The Face, the Dalat Flower Festival,
and more.
Moreover, Vietjet has a great awareness and shown great support for programs
to better protect and improve the environment through its business operations
and internal activities. Accordingly, Vietjet cooperates with reputable aircraft
manufacturers, such as Airbus and Boeing, to build a new, modern and friendly
environment fleet, especially with the addition of the new A321neo aircraft. With
outstanding fuel efficiency and reduced emissions, the new fleet contributes to
94
improve the company’s performance and protect the environment.
SUSTAINABLE DEVELOPMENT

Additionally, Vietjet always looks to raise awareness of our employees about

environmental protection and actively respond to issues relating to climate change
with many effective and practical measures, including: reusing of stationery,
economically and effectively; cleaning the workplace, planting trees in our offices;
turning off unnecessary lighting equipment, computers, air conditioners, electrical
appliances, using water economically; at the same time, we continue to promote the
“5S” program to build a clean, green and scientific working environment, especially
at our maintenance stations, warehouses, material warehouses.
FINANCIAL STATEMENTS
Let's make impossible possible,
make dreams come true
 98
BÁO CÁO TÀI CHÍNH
FINANCIAL STATEMENTS

100
FINANCIAL STATEMENTS

102
 45,000
42,303
40,000
35,000
30,000
27,499
25,000
20,000 19,845
15,000
8,706 6,549
10,000
3,790 880 2,110 3,902
5,000
281
-
2013 2014 2015 2016 2017
Gross profit Total Revenue

31,658
30,000
25,000 20,063
20,000
15,000 12,045
10,594
10,000 7,677
2,948 4,734
5,000 2,147
605 967
-
2013 2014 2015 2016 2017

EQUITY TOTAL ASSETS

25,000 $1,006 $1,100

$900
20,000
$718 22,549
$700
15,000 $506

15,917 $500
$327
10,000
$180 $300

5,000 11,079
6,946 $100
3,793
0 $(100)
2013 2014 2015 2016 2017

Operating Revenue in VND

Operating Revenue in USD

104
FINANCIAL STATEMENTS
 6.00

5.00

4.00 2.57
2.48

3.00 2.42
2.43 2.32
2.00
2.73 2.56
1.00 1.71 1.47 1.54

0.00
2013 2014 2015 2016 2017

Fuel CASK CASK ex fuel

0.50 0.46
0.44 0.45
0.45
0.39
0.40
0.35
0.30
0.25
0.20
0.15
0.09
0.10
0.05
0.00
2013 2014 2015 2016 2017

RASK - CASK

106
FINANCIAL STATEMENTS
 37.36% 32.73%
12,500.00 32.82%
28.69%
11,500.00 22.65% 30.00%
[VALUE]
95.0%
88.6%

89.0%

88.7%

88.9%

89.1%
88.2%

88.6%

88.1%

88.2%

88.1%

10,500.00
83.8%

83.8%

83.4%

84.7%

90.0% 9,500.00
81.4%

85.0% 8,500.00
7,473.31
7,500.00 0.00%
80.0%
6,500.00
75.0%
5,500.00
70.0% 4,500.00 4,154.23
65.0% 3,500.00 -30.00%
2,500.00 2,043.38
60.0%
1,500.00 859.00
55.0%
500.00
50.0% -500.00 -60.00%
0 0 0 0 0
2013 2014 2015 2016 2017

Load Factor - Domestic Load Factor - International EBITDAR EBITDAR Margin

Load Factor - Total

3.5x
16
2.9x
14 3.0x
12 2.5x
10
2.1x 2.1x
1.9x
2.0x
8 1.6x
14.27
6 12.14 1.5x
11.41
9.38 10.1
4 1.0x
2
0.5x
0
2013 2014 2015 2016 2017 0.0x
Ancillary rev per pax in USD
2013 2014 2015 2016 2017

EBITDAR / Net Interest + Rent

108
FINANCIAL STATEMENTS
FINANCIAL STATEMENTS

110
FINANCIAL STATEMENTS

112
FINANCIAL STATEMENTS

114
FINANCIAL STATEMENTS

116
FINANCIAL STATEMENTS

118
FINANCIAL STATEMENTS

120
FINANCIAL STATEMENTS

122
FINANCIAL STATEMENTS

124
FINANCIAL STATEMENTS

126
FINANCIAL STATEMENTS

128
FINANCIAL STATEMENTS

130
FINANCIAL STATEMENTS

132
FINANCIAL STATEMENTS

134
FINANCIAL STATEMENTS

136
FINANCIAL STATEMENTS

138
FINANCIAL STATEMENTS

140
FINANCIAL STATEMENTS

142
FINANCIAL STATEMENTS

144
FINANCIAL STATEMENTS

146
FINANCIAL STATEMENTS

148
FINANCIAL STATEMENTS

150
FINANCIAL STATEMENTS

152
154