Icelandair Group Hf · OMXICE:ICEAIR
Icelandair Group Hf — Q3 2021 Earnings Presentation
21 slides from Icelandair Group Hf's earnings presentation, Oct 21, 2021
Slide 1: Q3 2021 results
Q3 2021 results 21 October 2021 1
Slide 2: Highlights Q3 2021
Highlights Q3 2021 Net profit Successful Further strengthening Positive USD 19.6 million ramp-up of liquidity outlook EBIT amounted to USD 8.2 Capacity increased sixfold Positive net cash from Strong booking trends million, increasing from USD compared to last year and operations USD 25 million 3.5
Slide 3: Financials
Financials Ívar Sigurður Kristinsson, CFO 3
Slide 4: Net profit of USD 19.6 million in Q3 2021
Net profit of USD 19.6 million in Q3 2021 Net profit driven by successful ramp up and strong cargo operations USD million Q3 2021 Q3 2020 Change Total revenue increased by 149% Transport revenue 206.8 56.1 150.8 ▪ Passenger revenue up by USD 135 million Aircraft and aircrew lease 9.6 4.4 5.2 ▪ Stron
Slide 5: Capacity in the international route network increased sixfold compared to Q3 2020
Capacity in the international route network increased sixfold compared to Q3 2020 Total ASK in Q3 ASK per quarter 2021 ASK split in Q3 Passenger split 2020 vs 2021 in millions in millions 2021 vs 2020 in thousands ~ x6 ~ x4 ~ x4 2,909 2,909 628 11% 30% 56% 12% 89% 698 153 58% Via 517 44% N-America 2
Slide 6: Cargo operations continued to be strong and number of domestic passengers reached pre-COVID levels
Cargo operations continued to be strong and number of domestic passengers reached pre-COVID levels Domestic Freight ton kilometers Sold block hours passengers FTK ‘000 Loftleidir Domestic capacity and number of passengers near pre-COVID levels 69,197 35,087 7,877 Freight carried increasing by 33% 67
Slide 7: 60% higher average world fuel price and more production driving higher fuel cost
60% higher average world fuel price and more production driving higher fuel cost Fuel cost Average world fuel price Open hedge contracts USD million Average world fuel USD per tonne price 60% higher 20,553 in Q321 vs Q320 +40.7 800 50.1 700 600 500 11,678 10,916 400 300 200 9.4 2020 100 2021 0 Q3 20
Slide 8: Strong equity ratio and net financial liabilities decreasing
Strong equity ratio and net financial liabilities decreasing Assets Equity ratio without warrants Financial liabilities Net financial liabilities USD million USD million USD million Non-current assets Warrants Interest bearing debt Current assets Equity ratio Lease liabilities +193 +115 -8 1.227 25%
Slide 9: Deferred income USD 256.7 million
Deferred income breakdown USD million Deferred income 257 USD 256.7 million 21 23 A decrease of USD 44.6 million 89 from last quarter 123 Sold unused tickets Vouchers Frequent Other prepayments Total deferred flyer points income 30 Sep 2021 99
Slide 10: USD 25 million positive net cash flow from operations in Q3 2021
+114 USD 25 million positive 25 net cash flow from operations in Q3 2021 Significant improvement from last year -88 Q3 20 Q3 21 10
Slide 11: Further strengthening of liquidity in Q3 2021
Further strengthening of liquidity in Q3 2021 Total liquidity Liquidity, less Government facility Breakdown in USD million Development in Q3 2021 in USD million 454 2 120 362 64 120 52 60 334 52 25 Government guaranteed credit facility 242 32 334 Undrawn revolving facilities 242 217 Assets held for
Slide 12: Financing of three Boeing 737 MAX secured
Financing of three Boeing 737 MAX secured ▪ For delivery in December 2021 and January 2022 ▪ Sale and leaseback of two Boeing 737 MAX8 ▪ Asset-backed loan for one Boeing 737 MAX9 ▪ Favorable agreements 12
Slide 13: Business update and outlook
Business update and outlook Bogi Nils Bogason, CEO 13
Slide 14: Flexibility is our main strength
Number of passenger per month 2021 in thousands … and we Flexibility carried more is our main passengers in Number of passengers in 264 thestrength first two July alone equals total passengers 219 212 carried in the first months than in 6 months 2021 the remaining 94 ten months of 40 23 24 2020 19 2
Slide 15: Positive signs in all passenger markets
Positive signs in all passenger markets The opening of the US borders on 8 November marks the accessibility of all the company’s markets Capacity on international routes will be 65% of Q4 2019; 11 destinations in North America and 15 destinations in Europe Strong booking trends in all markets Positi
Slide 16: Planned international capacity in 2022 equals 80% of 2019
No of ASK’000 19% 35% 80% of 2019 of 2019 of 2019 2,200 production production production 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 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 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar A
Slide 17: Further additions of MAX for summer 2022
Further additions of MAX for summer 2022 ▪ Icelandair is currently looking into adding up to three aircraft for summer 2022 ▪ Favorable conditions in the commercial aircraft market ▪ Discussions with aircraft lessors are progressing well and expected to be concluded before year-end 17
Slide 18: Strong outlook for Icelandair Cargo
Strong outlook for Icelandair Cargo ▪ Freight volumes have exceeded pre- COVID levels ▪ Demand continues to be robust for export and the growth in import is strong ▪ The transit market has been the fastest growing market this year and the forward outlook is very positive ▪ Two B767 freighters added
Slide 19: Improved outlook in the global charter market
Improved outlook in the global charter market ▪ Loftleidir Icelandic has secured new short- term projects in Q4 2021, including flights to the South Pole ▪ Flights around the world for international tour operators expected to resume at the end of Q1 2022 ▪ Other revenue streams in the coming months
Slide 20: Key takeaways
Key takeaways Net profit generated in challenging environment Very strong financial position All markets opening up and positive overall booking trend Flexibility of the route network and excellent employees our core strength in seizing opportunities 20
Slide 21: Q&A
Q&A 21