Icelandair Group Hf · OMXICE:ICEAIR
Icelandair Group Hf — Q1 2021 Earnings Presentation
23 slides from Icelandair Group Hf's earnings presentation, Apr 30, 2021
Slide 1: Q1 2021 results
Q1 2021 results Investor meeting 30 April 2021
Slide 2: Highlights
Highlights Results Strong Infrastructure Outlook Q1 2021 financial position in place xxx Strong cargo performance, Liquidity position USD 282 Operational flexibility in place Moderate ramp-up will start in disciplined network million on 31 March 2021 for a quick and efficient ramp- Q2 with further c
Slide 3: Financials
Financials Eva Sóley Guðbjörnsdóttir CFO Icelandair Group
Slide 4: Net loss USD 30.1 million
Net loss USD 30.1 million Improvement by USD 210.1 million • Strong cargo performance, disciplined network USD million Q1 2021 Q1 2020 Change Transport revenue 35.6 144.0 -108.5 management and cost control Aircraft and aircrew lease 11.0 26.7 -15.7 • Total revenue decreasing by 73% Other operating r
Slide 5: Traffic Data
Traffic Data Extended travel restrictions continue to lead to limited travel demand Q1 2021 KPIs as % of Q1 2019 Changes from last year 12 104% 5 -5 -7 73% -40 -54 43% -92 -96 Pax ASK LF (ppt) Pax ASK LF (ppt) BH FTK 6% International ASK Domestic ASK BH FTK International Domestic 5 Pax = Passengers,
Slide 6: Fuel cost USD 7.8 million
Fuel cost USD 7.8 million Fuel cost USD million -84.8% + Restructuring in July 2020 resulted in considerable reduction in hedged volume and 51.6 a longer horizon + The Company monitors the market closely but has not yet resumed any hedging activities since early 2020 + Negative mark-to-market of ope
Slide 7: All main deviations in expenses between years are directly related to the adverse effects of the pandemic
All main deviations in expenses between years are directly related to the adverse effects of the pandemic Salaries & Aviation Other related excl. fuel expenses -56% -65% -78% 80.5 Q1 2020 Q1 2021 35.3 20.7 20.6 21.1 17.9 12.1 8.9 10.3 6.7 5.9 7.7 4.5 3.3 4.1 4.4 0.4 1.2 1.9 0.5 2.0 1.1 2.1 0.2 0.2 0
Slide 8: Balance sheet
Balance sheet Assets Equity and liabilities 31 Mar 2021 31 Dec 2020 31 Mar 2021 31 Dec 2020 Operating assets 472.4 498.4 Shareholders' equity 209.1 232.8 Right-of-use assets 107.3 119.8 Loans and borrowings non-current 236.1 239.6 Intangible assets and goodwill 56.7 60.3 Lease liabilities 107.7 119.
Slide 9: 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% 23% -6 +43 -11 264 134 147 257 24 123 21 21 2
Slide 10: Deferred income USD 200.8 million
Deferred income 31 March 2021 USD million Deferred income 201 USD 200.8 million 22 7 Vouchers representing USD 97 96.6 million thereof 76 Sold unused tickets Vouchers Frequent Other prepayments Total deferred flyer points income 31 March 2021 10
Slide 11: Liquidity position USD 282 million at 31 March
Liquidity position USD 282 million at 31 March Liquidity breakdown Liquidity developments in Q1 2021 USD million USD million 331 WC to operations 282 includes 120 1m in hedges 17 NWC includes 120 2m in refunds -18 52 21 Cash - assets held for sale 331 42 52 4 -23 Government guaranteed credit facilit
Slide 12: Business update and outlook
Business update and outlook Bogi Nils Bogason President and CEO Icelandair Group
Slide 13: Divestments and simplification
Divestments and simplification In line with our strategy to focus on streamlining our core business Sale of 25% stake Sale of Integration of in Icelandair Hotels Iceland Travel Air Iceland Connect The shares are expected to be delivered in Sales process initiated in February Completed in March with
Slide 14: Fleet available for international passenger network of summer 2021
Fleet available for international passenger network of summer 2021 Available fleet Seat range in fleet • Three new MAX aircraft expected to be delivered in the spring of 2021 in 28 262 addition to the six Boeing 737 MAX 225 aircraft already in Icelandair’s fleet 9 178 183 • New calculations based on
Slide 15: Operational flexibility to rapidly increase the frequency and destinations to match demand
Operational flexibility to rapidly increase the frequency and destinations to match demand Available seat kilometers (ASK) in millions • During the last four weeks, the bookings have more than doubled compared to the previous four weeks 2.200 2.000 • Icelandair will start a moderate ramp-up 1.800 in
Slide 16: Passenger route network outlook
Passenger route network outlook N-America • Strong interest from the United States for visiting Iceland • Bookings from our destinations in the US have increased in the last few weeks Europe • Bookings currently slower but expected to increase when travel restrictions will be eased • The expected op
Slide 17: Acceleration of vaccinations and lifting of travel restrictions will fuel recovery
28% Acceleration of vaccinations and lifting Finland: Inbound travel from Schengen of travel restrictions will fuel recovery 23% banned excl. Iceland until 25/5 Sweden: Ban for travelers outside EU & Overview of vaccination status and travel restrictions on 30 April 2021 Schengen until 31 May 26% 23
Slide 18: Favourable outlook for Icelandair Cargo
Favourable outlook for Icelandair Cargo Freight volumes regained Most of the freight will continue Investment in conversion The strategy is to increase pre-COVID levels to be transported with of two B767-300ER aircraft cargo capacity in main markets freighters until the capacity in into freighters a
Slide 19: Increased interest from charter and leasing markets and improved demand expected for the second half of the year
Increased interest from charter and leasing markets and improved demand expected for the second half of the year
Slide 20: Weak demand for travel in Q2 2021 for VITA but outlook is good for the second half of the year
Weak demand for travel in Q2 2021 for VITA but outlook is good for the second half of the year, especially from September and onwards 20
Slide 21: Key takeways
Key takeways Acceptable results in Strong financial position Leveraging the interest Increased bookings and Q1 during extraordinary and operational flexibility in Iceland with targeted progress of vaccinations circumstances in place for an efficient campaigns platform for takeoff from ramp-up hiatus
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Slide 23: 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