Transat A.t. Inc. · TSX:TRZ
Transat A.t — Q2 2022 Earnings Presentation
22 slides from Transat A.t's earnings presentation, Jun 9, 2022
Slide 1: Investor Presentation: Results for quarter ended April 30, 2022
Investor Presentation Results for quarter ended April 30, 2022 Recovery confirmed with a sharp increase in volume JUNE 9, 2022 Ticker: 1 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
1 Q2 2022 Key Highlights 2 Operational Update and Strategic Overview 3 Q2 2022 Results and Sustainability Measures 4 Closing Remark 5 Appendix
Slide 5: Transat's Recent Journey
Transat’s Recent Journey • Post Omicron effect, bookings rebounded strongly allowing us to end the quarter on a very encouraging note and generate revenues of $358 million for the period (40% of 2019 revenues from 30% in previous quarter) • Recalled more than 3,000 employees since the lowest level i
Slide 6: Agenda
1 Q2 2022 Key Highlights 2 Operational Update and Strategic Overview 3 Q2 2022 Results and Sustainability Measures 4 Closing Remark 5 Appendix
Slide 7: Overall Bookings Trend
Overall Bookings Trend Net Weekly Bookings (passenger) as % of 2019 Bookings Development During the Quarter 150% • Revenue growth in the quarter was dampened by the Recently, the Corporation surpasses sharp decline in demand and massive de-bookings due to 2019 levels the hole left by Omicron during
Slide 8: Transatlantic Market: Summer Capacity Outlook
Summer Capacity Outlook (as at May 31, 2022) Transat Capacity Allocation Transatlantic Capacity Breakdown 1 (thousands of seats/segment) Transatlantic Market 2,175 (millions of seats/round trip) 75% of 2019 0.0 0.5 1.0 1.5 2.0 2.5 3.0 1,640 64% 89% of 2019 8% 75% 17% of 2019 16% 17% 17% 157% 2019 20
Slide 9: Continue to implement its strategic plan to set foundations for sustainable financial performance
Continue to implement its strategic plan to set foundations for sustainable financial performance Advancement Advancement 1 status 2 status Flattened organzational structures Redefine the network through: 1.Automation and digitization of business Fixed Cost 1.Implementation of strategic alliances; p
Slide 10: Strong Pre-COVID Momentum from Strategic Initiatives
Strong Pre-COVID 19 Momentum from Strategic Initiatives Acceleration of Renewed Transat to Support COVID-Era Liquidity Factors that Impacted Achievements Strategic Initiatives (Proof of Concept) Profitability High Operational Costs from Revenue Management & Significant operational efficiency Complic
Slide 11: Refreshed Aircraft Fleet
Refreshed Aircraft Fleet • Simplified fleet with 100% Airbus aircraft • Cockpit Commonality drives lower costs, operational efficiencies & flexibility • Network connectivity and commercial alliances • 17 New A321NEO LR: >15% less fuel, ~5,500 tonnes less CO2 /year and 50% less NOx emissions Pre-Covi
Slide 12: Aspiring North American Leader in Corporate Responsibility
Aspiring North American Leader in Corporate Responsibility Reducing GHG Emissions Sustainable Tourism The A321neoLR is the core of our Certified since 2018 fleet transformation, with lowest • Reducing environmental impact Fleet Renewal fuel consumption and GHG • Engaging with communities emissions i
Slide 13: Agenda
1 Q2 2022 Key Highlights 2 Operational Update and Strategic Overview 3 Q2 2022 Results and Sustainability Measures 4 Closing Remark 5 Appendix
Slide 14: Most Recent Financial Results
Most Recent Financial Results Quarter ended April 30 6-month period ended April 30 Highlights of the Second Quarter Results (in millions of C$, except per share amounts) 2022 2021 Change 2022 2021 Change • Revenues were up $351 million vs. 2021 driven by: Unaudited Consolidated Statements of Loss o
Slide 15: Financial Position & Liquidity Runway
Financial Position & Liquidity Runway Advance Discussions for Additional Initiatives to Improve Liquidity Position Since Financial Flexibility to De-Risk the the Beginning of the Pandemic Recovery 1 $863M in available financing1 and 5 3 in continuing discussions with all existing Apply for wage and
Slide 16: Agenda
1 Q2 2022 Key Highlights 2 Operational Update and Strategic Overview 3 Q2 2022 Results and Sustainability Measures 4 Closing Remark 5 Appendix
Slide 17: Transat: A Renewed Leisure Airline in a Recovering Industry
Transat: A Renewed Leisure Airline in a Recovering Industry Recovering Leisure Leading Leisure Airline Renewed Transat Travel Industry Fixed cost reduction & Tourism growth above GDP supported by Robust global network to 25+ countries & Enhanced revenue management favorable socioeconomic development
Slide 18: Agenda
1 Q2 2022 Key Highlights 2 Operational Update and Strategic Overview 3 Q2 2022 Results and Sustainability Measures 4 Closing Remark 5 Appendix
Slide 19: Financing Overview
Financing Overview Facility amount Accounting policies (in millions of C$) Sources of Maturity Type of instruments Carrying As at Apr 30, 2022 Considerations capital date Accounts amount (in millions of C$) Available Used Unused Revolving Credit Facility Current portion of Interest rate: Bankers' ac
Slide 20: Non-IFRS Financial Measures
Non-IFRS Financial Measures The non-IFRS measures, non-IFRS ratios, total of segment measures, capital measures and/or other financial measures used by the Corporation are as follows: ➢ Adjusted operating income (loss))1: Operating income (loss) before depreciation, amortization and asset impairment
Slide 21: Breakdown of non-recurring items
Breakdown of non-recurring items Quarter ended April 30 6-month period ended April 30 (in millions of C$) 2022 2021 Change 2022 2021 Change Non-recurring items Insurance premium payment prepaid for one year coverage - - - 9.4 - 9.4 Unfavourable cash settlement to terminate fuel derivatives contract
Slide 22: Thank you to employees, customers, investors and partners
fNTD We would like to thank all of our employees, customers, investors, financial and commercial partners for their continuous support and contribution through these unprecedented times Annick Guérard President and CEO 22