Transat A.t. Inc. · TSX:TRZ
Transat A.t — Q1 2023 Earnings Presentation
19 slides from Transat A.t's earnings presentation, Mar 9, 2023
Slide 1: Investor Presentation: Results for the quarter ended January 31, 2023
Investor Presentation Results for the quarter ended January 31, 2023 Transat reports a strong quarter in a challenging context Customer deposits at a record high which supports FY23 adjusted operating margin target of 4-6% MARCH 9, 2023 Ticker: TRZ/CN
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, the impacts of the coronavirus [“COVID-19”] pandemic, its outlook for the future and planned meas
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, cap
Slide 4: Agenda
AGENDA 1 FY23 Q1 Highlights & Outlook 2 Strategic Priorities Update 3 FY23 Q1 Results 4 Summary 5 Appendix
Slide 5: Strong booking momentum across all networks allowed to produce better results than 2019
Strong booking momentum across all networks allowed to produce better results than 2019 FY23 Q1 delivering further operational and financial progress • Capacity of 100% vs. 2019 across all programs and 98% for Sun destinations Deployed a program that capitalized on our historical strengths with a co
Slide 6: Improvement in prices more than compensates lower load factors, producing higher revenues than 2019
Improvement in prices more than compensates lower load factors which help to produce higher revenues than 2019 Travel & Airline (Capacity and load factor %) Global Sun destinations Capacity Allocation (ASM1) 64% (Main program) Build on our predominant Changes compared to 2019: historical markets and
Slide 7: The combination of demand and higher prices will allow us to manage higher costs
The combination of demand and higher prices will allow us to manage higher costs S1 2023 Bookings and Pricing trends1 vs. 2019 Indicators across the network (as of Mar 6, 2023) 100% 24% Versus 2019 Q2 Winter 22% Load Factor -4% (79% LF) -3% (81% LF) 98% 21% Yield 2 +25% + 22% 2023 Yield Diff vs. 201
Slide 8: Agenda
AGENDA 1 FY23 Q1 Highlights & Outlook 2 Strategic Priorities Update 3 FY23 Q1 Results 4 Summary 5 Appendix
Slide 9: Our priority is to transform Transat into an efficient and competitive airline
Our priority is to transform Transat into an efficient and competitive airline to deliver sustainable financial performance and create shareholder value 1 Simplify / Revitalize the Fleet & Redefine the Network 2 Harness Revenue Management to Optimize Sales Generation and Profitability Update fleet b
Slide 10: Initiatives on the aircraft fleet and network position Transat well for the future
Initiatives executed on the aircraft fleet and network in the past years allow Transat to be well positioned for the future • Simplified fleet with 100% Airbus aircraft (no more seasonal aircraft) • Cockpit Commonality drives lower costs, operational efficiencies & flexibility • Network connectivity
Slide 11: Transat is committed to operate in a sustainable manner
Attentive to the world around us, Transat is committed to operate in a sustainable manner for our customers, our employees and our communities, both here and abroad 1. PLANET 2. PEOPLE Integrate sustainability into our practises 3. PRACTICES Protect the environment Empower our people Integrate susta
Slide 12: Agenda
AGENDA 1 FY23 Q1 Highlights & Outlook 2 Strategic Priorities Update 3 FY23 Q1 Results 4 Summary 5 Appendix
Slide 13: Our adjusted operating results turn positive and we reaffirm our 4-6% margin target
Our adjusted operating results turn positive and we reaffirm our adjusted operating income margin target of 4-6% First Quarter Highlights Quarter ended January 31 12-month period ended January 31 • Revenues were up $465 million vs. 2022 driven by: (in millions of C$, except per share amounts) 2023 2
Slide 14: Quarterly free cash flow turns positive and customer deposits at a record high
Quarterly free cash flow turns positive for the first time in 3 years and our customer deposits at a record high Ongoing or Accomplished Key Financing Initiatives Gradual Normalization of to Improve Liquidity Position Working Capital Dynamics 1 5 Agreement with LEEFF to provide 2 Process to sell fin
Slide 15: Agenda
AGENDA 1 FY23 Q1 Highlights & Outlook 2 Strategic Priorities Update 3 FY23 Q1 Results 4 Summary 5 Appendix
Slide 16: Focus on historical strengths and progress on our strategic plan initiatives
Focus on our historical strengths and progress on our strategic plan initiatives to enable the delivery of our short-term objectives SET THE BASIS FOR SUSTAINABLE PERFORMANCE AND FUTURE GROWTH Optimize the airline Optimize revenue Improve our capital Focus on customer operations, increase the manage
Slide 17: Agenda
AGENDA 1 FY23 Q1 Highlights & Outlook 2 Strategic Priorities Update 3 FY23 Q1 Results 4 Summary 5 Appendix
Slide 18: Capital Structure Overview (As at January 31, 2023)
Capital Structure Overview (As at January 31, 2023) Accounting policies Facility amount 1 Sources of Maturity Type of instruments Carrying Considerations capital Accounts Available Used Unused date amount 1 Revolving Credit Facility Interest rate: Banker’s acceptance plus a premium of 4.5% Long-term
Slide 19: 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