Air Canada · TSX:AC
Air Canada — Shareholder Meeting (June 2021)
31 slides from Air Canada's shareholder meeting presentation, Jun 29, 2021
Slide 1: 2021 Annual Meeting of Shareholders
2021 Annual Meeting of Shareholders MANAGEMENT’S REPORT Michael Rousseau President and Chief Executive Officer Air Canada June 29, 2021
Slide 2: 2020 Review
2020 REVIEW 2
Slide 3: Severe impact on airline global industry
Severe impact on airline global industry — Operating Revenues Operating Income (Loss) 73% decline in passenger traffic Loss of nearly $3.8 billion 1,650 19,131 5,833 (3,776) 2019 2020 2019 2020 3
Slide 4: Air Canada shares: stock has more than doubled since March 2020
Air Canada shares Stock has more than doubled since March 2020 — 55 50 45 40 35 30 $25.36 25 Monday, 20 June 28, 2021 15 10 5 0 2017 2018 2019 2020 2021 4
Slide 5: Air Canada team – Resilient, resourceful and professional
Air Canada team – Resilient, resourceful and professional — 5
Slide 6: Safety Measures
SAFETY MEASURES 6
Slide 7: Safety measures timeline: China flights suspended, masks, temperature checks
Jan. 2020 Apr. 2020 May 2020 China flights Masks must be Pre-boarding suspended worn by all temperature customers checks 7
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Slide 9: Financing and Cost Savings
FINANCING AND COST SAVINGS 9
Slide 10: Liquidity
Liquidity — Strongest balance sheet in the industry relative to size • Raised nearly $6.8 billion in additional liquidity • Ended the year with $8 billion in unrestricted liquidity • Minimum of $1.7 billion in unencumbered assets 10
Slide 11: Cost-saving measures
Cost-saving measures — Operating expenses decreased by nearly $7.9 billion (45%) • Managed variable costs and reduced fixed expenses • $1.7 billion savings through company-wide cost and capital reduction and deferral program 11
Slide 12: Necessary workforce reduction
Necessary workforce reduction — • Nearly 20,000 furloughed or let go • Preserved 15,000 jobs (40% of workforce) • June/July 2021 – 2,600 employees return to work 12
Slide 13: Travel Recovery
TRAVEL RECOVERY AIR CANADA
Slide 14: #timetotravel
#timetotravel — • Case counts dropping • Vaccination programs advancing • Governments relaxing restrictions FREQUENT FLYER SURVEY: 46% planning to travel (between now and Sept.) 14
Slide 15: Restoring Services
RESTORING SERVICES Maple Leaf Lounge @ la table 15
Slide 16: Touchless services
Touchless services — Touchless check-in Touchless baggage- drop and lounge services Expand facial recognition biometrics 16
Slide 17: Air Canada Cargo
Air Canada Cargo — Capitalized on increased demand for air cargo Cabin space conversions Over 4,000 all-cargo flights in 2020 17
Slide 18: Dedicated freighter conversions
Dedicated freighter conversions — 18
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Slide 20: Ongoing Programs
ONGOING PROGRAMS 20
Slide 21: Changes to our fleet
Changes to our fleet — MAINLINE CURRENT Boeing 787-8 8 Boeing 787-9 29 Boeing 777-300ER 19 Boeing 777-200LR 6 Airbus A330-300 16 Boeing 737 MAX 8 24 / 40 Airbus A321 15 Airbus A320 21 Airbus A319 16 Airbus A220 15 / 33 Total 169 21
Slide 22: New Passenger Service System (Reservation system)
New Passenger Service System (Reservation system) — • Complex multi-year project • Greater ability to: – serve customers – manage inventory – work with partner carriers 22
Slide 23: Transformed Aeroplan
Transformed Aeroplan — • Improved value on flight rewards • More options • New relationships (i.e. Starbucks) • Strong relationships with major credit card partners 23
Slide 24: ESG
ESG • Continued to promote well-being of our People and our Customers • Emphasis on diversity and inclusion • Air Canada Foundation 24
Slide 25: Environmental initiatives
Environmental initiatives — • Installed electric chargers for airport vehicles • Diverted more than 800 tonnes of waste from landfills • Illegal wildlife trade certification 25
Slide 26: Net-zero greenhouse gas emissions by 2050
Air Canada is committed to achieving net-zero greenhouse gas emission by the year 2050 — • Establish interim goals • Invest $50 million in sustainable aviation fuel and other measures 26
Slide 27: Focused on a Safe Restart
FOCUSED ON A SAFE RESTART 27
Slide 28: Re-establish ourselves as a Canadian global champion
Re-establish ourselves as a Canadian global champion — Rebuilding a strong global network • Hub-to-hub flying • Seamless connectivity • Consistent superior customer service • Diversified revenue base (Aeroplan / Cargo) • Reduce costs and increase revenues 28
Slide 29: Key investments in technology
Key investments in technology — • AI • Machine learning and analytics • Mobile and digital technologies 29
Slide 30: Create meaningful personal connections through the customer experience
Create meaningful personal connections through the customer experience 30
Slide 31: Thank you Merci
Thank you Merci aircanada.com