Cargojet Inc. · TSX:CJT
Cargojet — Investor Presentation (February 2025)
29 slides from Cargojet's investor presentation, Feb 13, 2025
Slide 1: Corporate Overview December 2024
Corporate Overview December 2024
Slide 2: Caution Concerning Forward Looking Statements
Caution Concerning Forward Looking Statements This presentation includes certain forward-looking statements that are based upon current expectations which involve risks and uncertainties associated with our business and the environment in which the business operates. Any statements contained herein
Slide 3: Agenda
Agenda ▪ Who we Are ▪ Business Model ▪ Key Market Segments ▪ Domestic Business ▪ ACMI Business ▪ All-in Charter Business ▪ Fleet Plan ▪ Financial Highlights ▪ Business Outlook ▪ ESG Policy ▪ Reference Material
Slide 4: Who We Are
Who We Are ▪ Entrepreneurial company that prides itself in building lasting customer relationships while delivering exceptional service ▪ Engaged and passionate workforce of over 1,800 with over $1B in revenues ▪ In 23 years, we have become Canada’s #1 cargo airline, only national overnight air carg
Slide 5: Business Model
Business Model ▪ Only national network that enables next day service for courier industry to over 90% of Canadian population, a strong competitive advantage ▪ Entrepreneurial mindset: allows speed to market, responsiveness and sharp focus on network optimization and cost management ▪ Long-term custo
Slide 6: Key Market Segments
Key Market Segments ▪ Domestic Network ▪ CMI – Crew, Maintenance, Insurance ▪ ACMI (Aircraft, Crew, Maintenance and Insurance) primarily dedicated scheduled routes ▪ “All-in Charter” primarily adhoc business ▪ International Cargo Service
Slide 7: Domestic Business - Network
Domestic Business - Network Cargojet operates its network across North America transporting over 25 million pounds of time-sensitive cargo weekly Cargojet operates over 80 flight legs each business night using a combination of B767-300F; B767-200F and B757-200F aircraft to over 16 cities
Slide 8: Domestic Business - Customers
Domestic Business - Customers ▪ Overnight network reaching 90% of the Canadian population 24/7 ▪ Approx. 75% of Domestic Revenues are under long-term contracts with renewal options Our standard customer contracts include: ▪ Surcharges for uncontrollable cost changes ▪ Guaranteed volume minimums ▪ CP
Slide 9: International Alliances
International Alliances ▪ Fifty-Four international Alliances/Partnerships with the world’s leading carriers ▪ Allows these carriers to extend their networks ▪ Expands Cargojet’s brand globally
Slide 10: Domestic Business - OTP
Domestic Business- OTP 120.0% 99.6% 98.7% 99.7% 99.1% 99.5% 98.7% 99.5% 99.1% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% Q1 Q2 Q3 Q4 2020 2021 2022 2023 2024 ▪ Cargojet must demonstrate operational excellence each and every night to maintain industry leading on-time performance; ▪ Cargojet is ISO 9001-2008
Slide 11: ACMI Business and CMI Business
ACMI Business and CMI Business Cargojet currently operates 15 dedicated ACMI aircraft on a long-term contract basis. ▪ 2 x Domestic routes on CMI basis ▪ 5 x Trans-Border Routes ▪ 5 x Routes that operate between major airports in Mexico and Cincinnati ▪ 3 x Routes that operate between major airports
Slide 12: All-in Charters
All-in Charters ▪ Utilizing our existing fleet that operate in its Domestic and ACMI networks on weekends and daytime for Adhoc charters ▪ Competitive in the Adhoc market pricing due to utilization of existing fixed costs are already covered by its Domestic and ACMI businesses ▪ Lack of consistency
Slide 13: Fleet Plan
Fleet Plan All-cargo aircraft operated by Cargojet 2025 2026 Type Payload (lbs.) 2020 2021 2022 2023 2024 Proj. Proj. B757-200 80,000 8 9 13 17 17 17 17 ER B767-300 125,000 14 16 18 21 21 25 25 ER B767-200 100,000 3 3 3 3 3 2 2 ER Total 25 28 34 41 41 44 44
Slide 14: Financial Highlights
Financial Highlights ee
Slide 15: Quarterly Revenue and Adjusted EBITDA
Quarterly Revenue and Adjusted EBITDA $350 $100 293 $90 $300 $267 $80 Adjusted EBITDA (in $millions) … $247 251 $236 $233 246 $250 $232 $70 Revenue (in $millions) $214 231 231 … $196 $60 $188 189.5 $200 $172 $162 $160 $50 $91 $92 $150 $87 $123 $80 $83 $81 $82 $83 $82 $82 $40 $78 $79 $75 $74 $70 $67
Slide 16: Domestic Revenues and Surcharge Revenues
Domestic Revenues and Surcharge Revenues 200.0 180.0 160.0 Revenue (in $millions) 140.0 72.5 51.4 42.5 120.0 62.9 55.6 61.0 50.2 40.2 50.5 36.3 39.5 100.0 37.7 80.0 60.0 102.5 101.2 93.7 102.8 83.4 87.9 91.9 84.0 89.1 90.0 89.4 40.0 80.7 20.0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2022 2022 20
Slide 17: ACMI and All-In Charter Revenues
ACMI and All-In Charter Revenues 160.0 140.0 120.0 Revenue (in $millions) 64.4 100.0 41.5 32.8 80.0 27.0 26.5 27.3 19.9 43.5 27.6 14.6 20.2 25.9 60.0 40.0 83.5 69.1 63.3 65.7 64.4 62.7 64.6 71.1 69.1 70.2 61.7 52.7 20.0 0.0 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2
Slide 18: Market Cap & Stock Price
Market Cap & Stock Price $4,000 $250 $3,500 $200 $3,000 $2,500 Market Cap $150 $2,000 $100 $1,500 $1,000 $50 $500 $0 $0 2017 2018 2019 2020 2021 2022 2023 2024 Axis Title Market Cap Stock Price Cargojet was added to the TSX S&P index in 2019. At the end of Q4 2024, Cargojet share price was of $107.8
Slide 19: Cargojet Debt at December 31, 2024
Cargojet Debt at December 31, 2024 ▪ Cargojet has a syndicated revolving credit facility with borrowing limit of $600M, with maturity date on July 22, 2027. ▪ Cargojet repaid $61.8 million in debt in 2024, and improved leverage ratio as measured by Net Debt to trailing 12-month Adjusted EBITDA to 2.
Slide 20: Business Outlook
Business Outlook ▪ Long term customer contracts generate 75% of annual revenues with renewal options ▪ Highly engaged workforce with a strong safety culture continues to be the backbone of our service offerings ▪ We are well positioned to benefit from long-term secular trends in e-commerce serving b
Slide 21: Cargojet's ESG Policy
Cargojet’s ESG Policy LITA
Slide 22: ESG Policy Summary
ESG Policy Summary Key Updates to Policy ▪ Builds on Cargojet’s existing ESG policy ▪ Focuses on position statements for key environmental, social, and governance topics based on ESG best- practices, with activity-based information move to Cargojet’s ESG Report ▪ Includes scope and ownership stateme
Slide 23: Reference Material
Reference Material ee
Slide 24: Air Cargo Industry Memberships
Air Cargo Industry Memberships Canadian Courier & Logistics Association International Air Transport Association The International Air Cargo Association ISO 9001:2015 Quality Certified Company
Slide 25: Awards
Cargojet has been 2020 Strategist of the Year Awards awarded as Canada’s Globe and Mail Report on Business Cargo Airline and Carrier of Choice by the Award Recipient Dr. Ajay Virmani Canadian Transportation and Outstanding Business Logistics Magazine for Achievement Award over 22 years. Awarded by t
Slide 26: Boeing 767-300ERF
Boeing 767-300ERF Maximum Payload: 125,000 lbs
Slide 27: Boeing 767-200ERF
Boeing 767-200ERF Maximum Payload: 100,000 lbs
Slide 28: Boeing 757-200ERF
Boeing 757-200ERF Maximum Payload: 80,000 lbs
Slide 29: Thank-you
CARGOVET. Thank-you “ANS SS 4