Transat A.t. Inc. · TSX:TRZ
Transat A.t — Q2 2023 Earnings Presentation
20 slides from Transat A.t's earnings presentation, June 2023
Slide 1: Investor Presentation: Results for the quarter ended April 30, 2023
Investor Presentation Results for the quarter ended April 30, 2023 Transat builds on its momentum and enters a summer of robust activity Adjusted operating income for the second quarter of 2023 nearly 40% higher than in the second quarter of 2019 Transat raises its adjusted operating income margin t
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, ca
Slide 4: FY23 Q2 Highlights & Outlook
1 FY23 Q2 Highlights & Outlook
Slide 5: FY23 Q2 Highlights & Outlook
FY23 Q2 Highlights & Outlook Delivering further operational and financial improvements • Capacity of 93% vs. 2019 across all networks and 96% for Sun destinations Strong momentum allowed us to continuously improve our yield1 from +15% at the beginning of the quarter to reach +24% compared to the sam
Slide 6: Price Increases Outweighed Lower Load Factors
Price Increases Outweighed Lower Load Factors Travel & Airline (Capacity, Load Factor % and Yield) Key Indicators for Second Quarter of 2023 Capacity Allocation Versus 2019 Capacity (ASM 1) Versus 2019 Global Network Sun Destinations (Main Network) Sun Destinations -1% Transatlantic -9% Load Factor
Slide 7: Strong Leisure Travel Momentum Reflected in Our Booking and Pricing Trends for the Summer
Strong Leisure Travel Momentum Reflected in Our Booking and Pricing Trends for the Summer S2 2023 Booking and Pricing trends1 vs. 2019 Indicators across the network (as of June 1, 2023) 88% 30% Current RPM: 85% of 2019 levels Versus 2019 Q3 Summer Current Yield: +29% vs. 2019 levels 85% 28% Load Fac
Slide 8: Strategic Priorities Update
2 Strategic Priorities Update
Slide 9: Significant Progress with Our Strategic Plan Centered on Becoming a More Resilient and Efficient Airline
Significant Progress with Our Strategic Plan Centered on Becoming a More Resilient and Efficient Airline • Capitalize on international network served • Onboard experienced revenue from Eastern Canada stronghold management expertise • Operate only two complementary aircraft • Implement dynamic pricin
Slide 10: Drive Operational Efficiencies and Improved Utilization with Modernized & Simplified Fleet
Drive Operational Efficiencies and Improved Utilization with Modernized & Simplified Fleet • 100% Airbus aircraft (no more seasonal aircraft) • Enhanced network connectivity and commercial alliances • Cockpit commonality drives lower costs, operational efficiencies & • New A321LR / A321XLR consume >
Slide 11: Clear Decarbonization and Corporate Responsibility Focus
Clear Decarbonization and Corporate Responsibility Focus Planet People Sustainable Practices Reduce the environmental Create a positive impact on our Integrate sustainability into our impacts of our activities across people, our customers and our business practices our value chain communities Decarb
Slide 12: FY23 Q2 Results
3 FY23 Q2 Results
Slide 13: Financial Results Gaining Momentum: Q2-23 and W23
Financial Results Gaining Momentum: Q2-23 and W231 6-month period Second Quarter Highlights Quarter ended April 30 ended April 30 (in millions of C$, except per share amounts) 2023 2022 Change 2023 2022 Change • Revenues were up $512 million vs. 2022 driven by: Consolidated Statements of Loss o In 2
Slide 14: Financial Results Gaining Momentum: W23 vs. W19
Financial Results Gaining Momentum: W23 vs. W191 Factors that Improved Momentum in Line with 2019 Levels Key Stats: W23 vs. W191 Profitability Revenues Demand recovery leading to Adjusted EBITDA2 1 Increased network higher yields -5% density and better ASM 3 revenue management practices lead to impr
Slide 15: Key Ongoing Financing Initiatives
Key Ongoing Financing Initiatives Improvement in Financial Profile Extend the maturity date of secured credit facilities from April 2024 to April 2025 Q2 2023 (Book value of C$198M) $724M Unrestricted liquidity1,2 Pursue positive free cash flow 1 for the full year 2023 +$156M Net change in cash Prog
Slide 16: Summary
4 Summary
Slide 17: Progress on Our Strategic Plan to Achieve our Short-Term Objectives
Progress on Our Strategic Plan to Achieve our Short-Term Objectives Optimize revenue management practices, increase fleet utilization and build strategic partnerships to improve yield Enhance business processes in airline FY2023 Target operations, optimize fixed costs base and • Capacity (ASM1): 89%
Slide 18: Appendix
2) Appendix
Slide 19: Debt Breakdown
Debt Breakdown1 Accounting policies Facility amount2 Maturity Sources of capital Type of instruments Carrying Considerations Accounts Available Used Unused date amount2 Revolving Credit Facility Interest rate: Banker’s acceptance plus a premium of 4.5% Long-term debt 49.6 50.0 50.0 - April 2025 (1st
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) or Adjusted EBITDA1: Operating income (loss) before depreciation, amortization an