Transat A.t. Inc. · TSX:TRZ
Transat A.t — Q3 2023 Earnings Presentation
17 slides from Transat A.t's earnings presentation, September 2023
Slide 1: Investor Presentation: Results for the quarter ended July 31, 2023
Investor Presentation Results for the quarter ended July 31, 2023 Transat Achieves Record Q3 Profitability
Slide 2: Caution regarding forward-looking statements
Caution regarding forward-looking statements This presentation contains certain forward-looking statements with respect to the Corporation, including those regarding its results, its financial position and its outlook for the future. These forward-looking statements are identified by the use of term
Slide 3: Non-IFRS financial measures
Non-IFRS financial measures We report our financial results in accordance with IFRS. This presentation was prepared using results and financial information determined under IFRS. In addition to IFRS financial measures, this presentation also contains non- IFRS financial measures, non-IFRS ratios, ca
Slide 4: FY23 Q3 Highlights & Outlook
1 FY23 Q3 Highlights & Outlook
Slide 5: FY23 Q3 Highlights & Outlook
FY23 Q3 Highlights & Outlook Delivering further operational and financial improvements ▪ Revenues of $746 million were up 47% YoY and 7% compared to Q3 2019 ▪ Capacity of 86% vs. 2019 across all networks and 81% for Transatlantic program • Revenue per passenger mile (or yield) for the quarter exceed
Slide 6: Strong Demand Reflected on Both Bookings and Pricing
Strong Demand Reflected on Both Bookings and Pricing Travel & Airline (Capacity, Load Factor % and Yield) Key Indicators for Third Quarter of 2023 Capacity Allocation Versus 2019 Capacity (ASM 1) Versus 2019 Global Network Transatlantic (Main Network) Sun Destinations + 20% Transatlantic - 19% Load
Slide 7: Strong Leisure Travel Momentum Continues in Q4
Strong Leisure Travel Momentum Continues in Q4 Q4 2023 Booking and Pricing trends1 vs. 2019 Indicators across the network (as of September 7, 2023) 93% 28% Current RPM 4: 91% of 2019 levels Q4 23 vs. 19 S23 vs. 19 W24 vs. 23 Current Yield2: +26% vs. 2019 levels 90% 26% Load Factor - 2% - 1% + 2% (82
Slide 8: FY23 Q3 and Year-to-Date Results
2 FY23 Q3 and Year-to-Date Results
Slide 9: Financial Results Gaining Further Momentum: Q3-23 and YTD
Financial Results Gaining Further Momentum: Q3-23 and YTD1 9-month period Third Quarter Highlights Quarter ended July 31 ended July 31 (in millions of C$, except per share amounts) 2023 2022 Change 2023 2022 Change • Revenues were up $238 million vs. 2022 driven by: Consolidated Statements of Loss o
Slide 10: Financial Results Gaining Further Momentum: YTD23 vs. YTD19
Financial Results Gaining Further Momentum: YTD231 vs. YTD191 Factors that Improved Key Stats: Momentum in Line with 2019 Levels Profitability YTD231 vs. YTD191 Revenues Strong demand recovery Adjusted EBITDA2 1 leading to higher yields and Increased network load factors - 8% density and better ASM
Slide 11: Key Ongoing Financing Initiatives
Key Ongoing Financing Initiatives Improvement in Financial Profile Close the transaction in August and net proceeds of CA$50M from land sale in Mexico to be applied to debt Q3 2023 reduction $671M Unrestricted liquidity1,2 Pursue positive free cash flow 1 for the full year 2023 $571M Cash and cash C
Slide 12: Strategic Initiatives and Targets
3 Strategic Initiatives and Targets
Slide 13: Advanced Progress on Our Strategic Plan to Achieve our Short-Term Objectives
Advanced Progress on Our Strategic Plan to Achieve our Short-Term Objectives Optimize revenue management practices, increase fleet utilization and build strategic partnerships to improve yield Enhance business processes in airline FY2023 Target operations, optimize fixed costs base and • Capacity (A
Slide 14: Clear Decarbonization and Corporate Responsibility Focus
Clear Decarbonization and Corporate Responsibility Focus Planet People Sustainable Practices Reduce the environmental Create a positive impact on our Integrate sustainability into our impacts of our activities across people, our customers and our business practices our value chain communities Decarb
Slide 15: Appendix
4 Appendix
Slide 16: Debt Breakdown
Debt Breakdown1 Accounting policies Facility amount2 Maturity Sources of capital Type of instruments Carrying Considerations Accounts Available Used Unused date amount2 Revolving Credit Facility Interest rate: Banker’s acceptance plus a premium of 4.5% Long-term debt 49.6 50.0 50.0 - April 2025 (1st
Slide 17: Non-IFRS Financial Measures
Non-IFRS Financial Measures The non-IFRS measures, non-IFRS ratios, total of segment measures, capital measures and/or other financial measures used by the Corporation are as follows: ➢ Adjusted operating income (loss) or Adjusted EBITDA1: Operating income (loss) before depreciation, amortization an