Icelandair Group Hf · OMXICE:ICEAIR
Icelandair Group Hf — Q2 2021 Earnings Presentation
25 slides from Icelandair Group Hf's earnings presentation, Jul 23, 2021
Slide 1: Q2 2021 results
Q2 2021 results Investor meeting 23 July 2021
Slide 2: Highlights
Highlights Extensive growth of Positive cashflow Capacity gradually moving Bain Capital – shareholders' our flight schedule from operations closer to 2019 level meeting today 15 destinations re-introduced Strong booking inflow for the Bookings in the Further strengthens liquidity second half of the
Slide 3: Financials
Financials Ívar Sigurður Kristinsson CFO Icelandair Group
Slide 4: Net loss USD 54.9 million
Net loss USD 54.9 million An improvement of USD 35.9 million • Results for the quarter impacted by the ramp-up of the USD million Q2 2021 Q2 2020 Change international route network and investment in an ambitious Transport revenue 55.0 27.6 27.4 Aircraft and aircrew lease 7.8 26.9 -19.1 flight schedu
Slide 5: Ramp-up started in the international route network
Ramp-up started in the international route network Destinations added and capacity increased on existing routes Total ASK’000 Total ASK’000 Passengers per market Destinations added per month Q221 and as % of Q219 Q221 vs Q220 per month Q221 in ´000 in Q221 % of 2019 Europe Via ASK´000 N-America From
Slide 6: Domestic operation continues to show recovery and cargo operation remains strong in Q221
Domestic operation continues to show recovery and cargo operation remains strong in Q221 Icelandair domestic passenger service Icelandair Cargo Loftleidir Icelandic shows consistent recovery 165% 156% • Freight Ton-Kilometers (FTK) increased • Operation still at minimum level due to by 26% year-on-y
Slide 7: Salaries and salary related cost USD 52.5 million in Q221
Salaries and salary related cost USD 52.5 million in Q221 Average number of full-time employees 1,783 Salaries and salary related cost The number of full-time employees Average no of full-time employees USD million added in Q221 excluding lay-offs in Q220 +1% +589 52.2 52.5 2,105 1,783 1,648 1,516 S
Slide 8: Fuel cost USD 19.5 million
Fuel cost USD 19.5 million Fuel cost Open hedge contracts USD million Overview tons in thousands • Increased production in passenger network drives higher fuel cost 20,553 • Fuel market prices increased by 59% +120% 18,577 year-on-year 19.5 • Effective fuel price $700 per ton in Q2 21 11,678 10,916
Slide 9: Operating expenses growing with increase in production and preparation for continued ramp-up
Operating expenses growing with increase in production and preparation for continued ramp-up Aviation Other excl. fuel expenses 10.9 9.6 9.1 8.2 4.5 4.7 4.6 3.8 3.8 3.9 3.7 3.3 1.8 1.7 Q220 1.4 1.5 1.0 0.9 0.9 0.9 Q221 0.6 0.3 0.1 -1.3 Aircraft lease Aircraft H-L-C** Aircraft Real estate Communicati
Slide 10: Balance sheet
Balance sheet Assets Equity and liabilities USD million 30 Jun 2021 31 Dec 2020 Change USD million 30 Jun 2021 31 Dec 2020 Change Operating assets 440.7 498.4 -57.7 Shareholders' equity 163.8 232.8 -69.0 Right-of-use assets 235.6 119.8 115.9 Loans and borrowings non-current 248.0 239.6 8.4 Intangibl
Slide 11: Net interest-bearing debt excluding lease liabilities USD 147 million
Net interest-bearing debt excluding lease liabilities USD 147 million Equity ratio Interest-bearing debt Net lease liabilities NIBD excl. lease liabilities USD million USD million USD million Excluding warrants Current Non-current Current Non-current 25% +8 +120 -24 271 254 104 264 24 23 32 16% 81 2
Slide 12: Deferred income USD 301.2 million
Deferred income 30 June 2021 USD million Deferred income 301 USD 301.2 million 22 22 Thereof vouchers 89 USD 89.0 million 168 Sold unused tickets Vouchers Frequent Other prepayments Total deferred flyer points income 30 June 2021 12
Slide 13: Positive net cash flow from operations of USD 65 million in Q221
Net cash from operations Q221 USD million Positive net cash flow from operations +162 65 of USD 65 million in Q221 Significant increase from last year -97 Q2 20 Q2 21 13
Slide 14: Strong bookings boost liquidity
Strong bookings boost liquidity Total liquidity USD 362 million on 30 June Liquidity breakdown Liquidity developments in Q221 USD million USD million 362 331 17 8 6 282 120 120 65 120 52 Net cash 52 from operations 32 includes104m in 362 Cash - assets held for sale deferred income 42 52 Government g
Slide 15: Warrants can be exercised in August
Warrants can be exercised in August Warrant class ICEAIRW130821 Exercise period and payment date Payment instructions Tax considerations Last day of trading is 30 July 2021 Exercise price is fixed at ISK 1.13 pr. share The difference between the exercise price and the respective market price constit
Slide 16: Business update and outlook
Business update and outlook Bogi Nils Bogason President and CEO Icelandair Group
Slide 17: 16 months of minimal operations behind us
No of take-offs March 2020 Minimal operations May 2021 First travel Ramp-up restrictions starts 1.800 USA border 1.600 1.400 1.200 Travel 1.000 restrictions eased at the 800 Icelandic border 600 June-August 400 200 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Slide 18: Important role in Icelandic society
Important role in Icelandic society Direct contribution in 2021 Estimated USD 210 million (ISK 26bn) by employing around 2,100 full time employees https://www.landsbankinn.is/Uploads/Documents/Hagsja/20 over the year 20-09-15-neysla-ferdamanna-eftir-thjoderni.pdf Export contribution in 2021 Estimate
Slide 19: We have focused on simplifying and streamlining the business
Binding Sale and MAX aircraft agreement with leaseback of reintroduced Bain Capital to two B737 to the fleet subscribe to MAX9 16.6% stake in aircraft Integration of Icelandair Air Iceland Group Sale of three Connect B757 200 completed Financial aircraft restructuring Sale of Sale and completed with
Slide 20: Great capabilities of the Boeing MAX aircraft creating new opportunities
Great capabilities of the Boeing MAX aircraft creating new opportunities Renewal transition Great Financing in Long term of the fleet in place capabilities final stages strategy reviewed The MAX added and B757 Better technical reliability, fuel The financing of three MAX to Strategic initiative to r
Slide 21: Strong booking inflow in recent weeks
Strong booking inflow in recent weeks Booking flow has been good for the summer and fall 2021 • Continued strong inflow from North-America • The opening of Europe to vaccinated US travelers has positive effect on the N-Atlantic market • Increased booking inflow from Scandinavia and Central Europe •
Slide 22: Current flight schedule for 2022 amounts to 80% of 2019 capacity
No of ASK’000 19% 42% 80% of 2019 of 2019 of 2019 2.200 production production production 2.000 1.800 1.600 1.400 1.200 1.000 800 600 Baltimore added 400 as new destination 200 in summer 2022 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Slide 23: Key takeaways
Key takeaways Positive cash flow from Healthy financial position Strong booking flow in Still a significant operations in Q2 2021 enabling the Company to recent weeks, especially uncertainty because seize opportunities and from North America of COVID-19 address challenges 23
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Slide 25: Disclaimer
Disclaimer • This material has been prepared by Icelandair Group hf. It may include confidential information about Icelandair Group hf. unless stated otherwise all information is sourced by Icelandair Group hf. • The circulation of the information contained within this document may be restricted in