Air Canada · TSX:AC
Air Canada — Shareholder Meeting (June 2020)
24 slides from Air Canada's shareholder meeting presentation, Jun 25, 2020
Slide 1: 2020 Annual Shareholder Meeting
2020 Annual Shareholder Meeting June 25, 2020
Slide 2: Calin Rovinescu, President and Chief Executive Officer
Calin Rovinescu President and Chief Executive Officer 2
Slide 3: 2009-2019
2009-2019 - Decade of growth - Job creation - Prosperity - Culture change - Stock market performance 3
Slide 4: 2019 Highlights
2019 HIGHLIGHTS - Strong financial results - 87% share gain - Skytrax: Best Airline in North America - The Globe and Mail reported Air Canada was best performing stock on the TSX - Arrival of first Airbus A220 4
Slide 5: COVID-19
COVID-19 «th L ; ma NNN +, wh PAN were atl ai ‘ L. pi Bi Rat, Raat rate DERE, t <0 as ae "eRe AIR CANADA 5
Slide 6: COVID-19
COVID-19 - Aeronautics Act - Quarantine Act - Canada-U.S. border restrictions - Inter-provincial restrictions - Government actively discouraging travel 6
Slide 7: Broad brush, blanket travel prohibitions
Broad brush, blanket travel prohibitions are inhibiting economic recovery. 7
Slide 8: High Fixed Cost Structure
HIGH FIXED COST STRUCTURE - High capital expenditure - Large unionized $22M workforces PER DAY NET CASH BURN 8
Slide 9: COVID-19 Rapid Response
COVID-19 RAPID RESPONSE - Stopped service to China - Limited spending and conserved cash - Reduced capacity by 85%-95% - Removed 79 aircraft permanently from fleet 9
Slide 10: Liquidity
LIQUIDITY Thanks to years of prudent capital allocation, we entered the crisis with access to significant liquidity and lines of credit. - Bolstered cash position by more than $5.5B 10
Slide 11: Impact to employees: 20,000 jobs lost
Impact to employees: 20,000 jobs lost 11
Slide 12: Biosafety
BIOSAFETY - Hospital grade PPE - Mandatory face coverings - Temperature checks - Increased personal space - Personal hygiene kits - Electrostatic sprayers in cabins 12
Slide 13: Other Biosafety Measures
OTHER BIOSAFETY MEASURES - Flexible booking policies - Touchless processes - Limited personal interactions onboard - HEPA filters 13
Slide 14: Ongoing Transformation
ONGOING TRANSFORMATION - New reservation system - Loyalty program - Repatriated more than 300,000 Canadians - Corporate social responsibility 14
Slide 15: Sustained Activities
SUSTAINED ACTIVITIES - Converted wide-bodies - Over 1,600 cargo- only flights since March 15
Slide 16: Heeded the Call of Elected Officials
HEEDED THE CALL OF ELECTED OFFICIALS - Respected social distancing, quarantine, isolations and more • Air Canada was virtually shut down 16
Slide 17: Responsible Actions
RESPONSIBLE ACTIONS - New bio-health and consistent safety guidelines 17
Slide 18: Economic Contribution
ECONOMIC CONTRIBUTION - Air Canada represents about $50B in economic output to Canada - Employed 38,000 + 6,000 at regional airlines - Support 34,000 retirees and their families - Supported 190,000 jobs in spin-off industries 18
Slide 19: Lift Restrictions
LIFT RESTRICTIONS Safely resume travel: - Safe corridors (air bridges) - Science-based approaches 19
Slide 20: Lift Restrictions
LIFT RESTRICTIONS #timetotravel Dear Prime Minister and Canadian Premiers, AIR CANADA 20
Slide 21: Smart Regulation
SMART REGULATION - Government needs to consider alternatives - Apply objective, evidence-based measures 21
Slide 22: Smart Regulation
SMART REGULATION Aviation and the travel, hospitality and tourism industries depend on finding viable alternatives. The entire Canadian economy depends on it. 22
Slide 23: Thank you
Thank you 23
Slide 24: 2020 Annual Shareholder Meeting
2020 Annual Shareholder Meeting June 25, 2020