Latam Airlines Group Sa · BCS:LTM
Latam Airlines Group Sa — Q2 2023 Earnings Presentation
16 slides from Latam Airlines Group Sa's earnings presentation, Aug 3, 2023
Slide 1: Results presentation Second Quarter 2023
Results presentation Second Quarter 2023 August 3, 2023
Slide 2: Disclaimer
S Disclaimer Neither the United States Securities and Exchange Commission (“SEC”) nor the Chilean Comisién para el Mercado Financiero (the “CMF”) nor any securities commission of any other U.S. or non-U.S. jurisdiction has reviewed, approved or disapproved of this Presentation, or determined that th
Slide 3: Second Quarter Highlights
Second Quarter Highlights 1) As of the publication date
Slide 4: International operations grew 48% during the quarter in a healthy demand and strong RASK environment
International operations grew 48% during the quarter in a healthy demand and strong RASK environment ASK RPK Load Factor RASK Billion Billion % US$ cent 32.5 26.2 25.3 +28.4% 20.3 80.2 80.4 7.0 6.8 Consolidated 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 10.7 74.7 77.3 7.1 +3.4% +18.0% 7.0 9.1 BRL 6.7 8
Slide 5: LATAM group affiliates are leaders in their domestic markets
LATAM group affiliates are leaders in their domestic markets Domestic Market shares for the second quarter of 2023, Peru: June data not available Source: ANAC Brazil’s website (RPKs), JAC Chile’s website (RPKs), DGAC Peru’s website (number of passengers carried), Diio.net for Colombia and Ecuador (A
Slide 6: LATAM group international operations continue to increase in the region
LATAM group international operations continue to increase in the region • • • • • • Source: Diio.net. Note: International operations refers to international operations of LATAM Airlines Brazil, LATAM Airlines Chile, LATAM Airlines Colombia, LATAM Airlines Ecuador and LATAM Airlines Peru
Slide 7: LATAM posted a record second quarter with 10.1% adjusted EBIT margin
LATAM posted a record second quarter with 10.1% adjusted EBIT margin
Slide 8: Sustained improvement in capacity, now 93% of pre-pandemic operation, and financial results
LATAM group has also seen a sustained improvement in both its capacity now reaching 93% of pre-pandemic operation, and financial results
Slide 9: LATAM group generated US$110 million cash in the second quarter
LATAM group generated US$110 million cash in the second quarter, totaling US$309 million in the first half of the year Adj. Unlevered FCF US$276M -EBITDAR of US$110M of cash US$539M generation -Changes in working capital of US$102M -Operating leases of US$(109)M -Others US$9M Adj. Levered FCF US$132
Slide 10: Adjusted EBITDAR and Unlevered Free Cash Flow
For the three month period For the six month Unlevered Free Cash Flow ended June 30 period ended June 30 $ millions Adjusted EBITDAR 559 1,132 Income Statement adjustments for special items (19) (28) EBITDAR 539 1,104 Changes in working capital 102 37 Cash taxes (6) (12) Operating lease payments (10
Slide 11: LATAM reported liquidity of US$2.6 billion and adjusted leverage of 2.4x
LATAM reported liquidity of US$ 2.6 billion and adjusted leverage of 2.4x, noting another quarter-over-quarter improvement
Slide 12: LATAM updates its guidance with a better perspective for FY 2023
LATAM updates its guidance with a better perspective for FY 2023 Guidance Updated 2023E Previous 2023E ASK Growth vs 2022 International 35% - 37% 37 - 40% Brazil Domestic 8% - 10% 8 - 11% Spanish Speaking Countries Domestic 6% - 8% 8 - 11% TOTAL 20% - 22% 20 - 24% ATK Growth vs 2022 16% - 18% 20 - 2
Slide 13: Confident in its fleet renovation and growth plan
Despite a capacity constrained market, LATAM group is confident in its fleet renovation and growth plan • • • 2023 2024 2025 Note: This fleet plan considers LATAM group's committed arrivals and takes into account the group's current decisions regarding aircraft retirements. In the Financial Statemen
Slide 14: Committed to its sustainability strategy at all levels of the organization
The group is committed to its sustainability strategy at all levels of the organization Note: As of the second quarter, the program “1+1 offset to conserve” has been implemented by the affiliates in Chile, Peru and Ecuador.
Slide 15: Second Quarter Takeaways
Second Quarter Takeaways > bo \ 3 Capacity growth of 28.4%, levered on international operations with 48% capacity growth. 3 Strong operating income in the second quarter with 10.1% adjusted operating margin. S Record adjusted EBITDAR for the second quarter of the year, posting US$559 million. Last ,
Slide 16: Results presentation Second Quarter 2023
Results presentation Second Quarter 2023 August 3, 2023