Slide 1: Chorus Aviation Investor Presentation October 2015
Joe Randell President and Chief Executive Officer Jolene Mahody Executive Vice President and Chief Financial Officer Nathalie Megann Vice President, Investor Relations and Corporate Affairs October, 2015
Slide 2: Disclaimer
Disclaimer CAUTION REGARDING FORWARD-LOOKING INFORMATION Certain information in this presentation, and statements made during this presentation may be forward- looking. These forward-looking statements are identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate
Slide 3: Corporate profile
Corporate profile Market summary Ticker symbols TSX: CHR.B, CHR.A Shares outstanding(1) 122.2 million Market capitalization(2) ~$669 million Monthly dividend / $0.04 per share / ~8.7% Dividend yield (3) (1) Outstanding Chorus shares as of August 6, 2015 was 122,232,397. (2) Calculated using closing
Slide 4: Why invest in Chorus
Why invest in Chorus Annual dividend of $0.48 per share – with over $810 million paid in dividends since 2006 IPO. Consistently profitable every quarter. Long-term Capacity Purchase Agreement (CPA) limits exposure to many variable costs and provides flexibility to grow and diversify. Strong balance
Slide 5: Financial performance indicators
Financial performance indicators Revenue Adjusted EBITDA(1) In C$ millions In C$ millions FY Ending December 31 FY Ending December 31 $1,711 $204 $1,664 $1,672 $1,666 $184 $187 $1,486 $146 $129 FY2010A FY2011A FY2012A FY2013A FY2014A FY2010A FY2011A FY2012A FY2013A FY2014A Operating Income Adjusted
Slide 6: Second quarter 2015 financial results
Second quarter 2015 financial results Chorus Aviation Inc. 2015 Period ended June 30, 2015 ($ million) Operating Revenue 400.1 Adjusted EBITDA (1) 52.1 Operating Income 38.0 Adjusted Net Income (1) 23.8 Adjusted EPS (basic) (1) 0.20 (1) Non-GAAP measure 6
Slide 7: Jazz – Canada's regional airline
Jazz – Canada’s regional airline 7
Slide 8: Air Canada Express
Air Canada Express Jazz flies for Air Canada as Air Canada Express 11-Year Capacity Purchase Agreement (CPA) Three types of missions for Air Canada: – Smaller markets with lesser demand – High density markets at off-peak times – Point-to-point service of lower density routes Purchases capacity Provi
Slide 9: Fleet simplification and modernization
Fleet simplification and modernization The Chorus fleet will transition to more efficient, larger aircraft with significant fleet simplification Jazz will transition to a mix of larger, newer technology regional jets (CRJ705s) and turboprops (Q400s) Aircraft 2015 2016 2017 2018 2019 2020 2021 2022 2
Slide 10: New CPA: benefits to Chorus
New CPA: benefits to Chorus Unlocking the value in the fleet New Q400s: Dash 8 Classics: Existing Q400s: Leveraging Chorus Balance Unlocking Value Solidifying Value Sheet to Enhance Value Reduction of 19 Dash 8- Enable return for Chorus Minimum addition of 13 100s prior to 2020 enables investment fo
Slide 11: CPA compensation
CPA compensation Our long-term agreement with Air Canada enables a strong presence of Jazz services in the Air Canada Express regional network. Industry standard fixed fee per aircraft, regardless of how Fixed fee much the aircraft is flown or where it flies. A fixed infrastructure fee is also provi
Slide 12: Voyageur Airways
Voyageur Airways A logical extension of our business Transport Canada approved Specialized aviation services – Contract flying – Advanced maintenance and engineering International reach Founded nearly 50 years ago Headquartered in North Bay, ON Share several competencies – Contract flying – Maintena
Slide 13: Voyageur business segments: Contract flying operations
Voyageur business segments: Contract flying operations ~80% of revenues derived from contract flying operations Medical, logistical and humanitarian flight operations serving blue chip clients Fleet of 19 aircraft Transport Canada approved air operator and maintenance organization Fixed-base operati
Slide 14: Voyageur business segments: Contract flying operations
Voyageur business segments: Contract flying operations Aircraft Leased / Owned Aircraft Type Passenger 5 Leased / 2 Owned charter Bombardier CRJ 200LR Passenger 6 Owned charter Bombardier Dash 8 300 Passenger 3 Owned charter De Havilland Dash 7 2 100s Owned Air ambulance 1 200 Leased Beechcraft King
Slide 15: Voyageur business segments: Specialty maintenance and engineering
Voyageur business segments: Specialty maintenance and engineering Maintenance, repair and overhaul (MRO) services for customers worldwide Specialized on all models of Bombardier regional aircraft – Transport Canada, FAA and European Aviation Safety Agency approved – Design Approval Organization by T
Slide 16: Focus areas and growth opportunities
Focus areas and growth opportunities Flying operations Engineering and MRO services Aircraft leasing and trading Other opportunities 16
Slide 17: Thank you
Thank you Nathalie Megann Vice President, Investor Relations and Corporate Affairs nmegann@chorusaviation.ca (902) 873-5094 17