Transat A.t. Inc. · TSX:TRZ
Transat A.t — Q1 2021 Earnings Presentation
24 slides from Transat A.t's earnings presentation, March 2021
Slide 1: Results for first quarter 2021
Results for first quarter 2021 Operations suspended and results continuing to reflect the magnitude of the pandemic Key priorities: European Commission approval, long-term financing and recovery plan INVESTOR’S PRESENTATION MARCH 2021
Slide 2: Caution regarding forward-looking statements
Caution regarding forward-looking statements The global air transportation and tourism industry has faced a collapse in traffic and demand. Travel restrictions, uncertainty about when borders will reopen, both in Canada and at certain destinations the Corporation flies to, the imposition of quaranti
Slide 3: Caution regarding forward-looking statements
Caution regarding forward-looking statements In addition, failure to complete the transaction proposed under the Arrangement for any reason could materially negatively impact the market price of the Corporation’s securities. If the transaction proposed under the Arrangement is not completed for any
Slide 4: Non-IFRS financial measures
Non-IFRS financial measures This presentation was prepared using results and financial information determined under IFRS. In addition to IFRS financial measures, management uses non-IFRS measures to assess the Corporation’s operational performance. It is likely that the non- IFRS financial measures
Slide 5: Table of contents
Table of contents 1 Update on transaction and COVID-19 impact 6 2 Initiatives taken for the sustainability 9 3 Financial results and position 14 4 Risks and uncertainties 17 Appendix 19 5
Slide 6: Update on transaction and COVID-19 impact
Update on transaction and COVID-19 impact
Slide 7: Transaction with Air Canada update
Transaction with Air Canada update ➢ On December 15, 2020, Transat’s shareholders overwhelmingly approved the revised Arrangement Agreement under which Air Canada will acquire all the issued and outstanding shares of Transat at the price of $5.00 per share, payable at the holder’s option in cash or
Slide 8: Impact of COVID-19 is unprecedented
Impact of COVID-19 is unprecedented (Government support is key for the survival of the airline industry) Transat revenues impact (YoY%) during crises • First half of 2021 (Jan-Jun): IATA (1) expects a 9/11 2008 financial crisis COVID-19 reduction of 30% to 45% of seats offered by (Q4 2001-Q3 2002) (
Slide 9: Initiatives taken for the sustainability
Initiatives taken for the sustainability
Slide 10: Cost reduction measures taken to preserve liquidity
Cost reduction measures taken to preserve liquidity INITIATIVES RELATED TO OPERATIONS, FLEET AND • The Corporation accelerated the expected retirement of its Boeing 737 fleet and WORKFORCE some of its Airbus A330s to expedite the transformation of its fleet and make it more uniform and more adapted
Slide 11: 4 pillars: Measures taken for the sustainability of the Corporation (1/2)
4 pillars: Measures taken for the sustainability of the Corporation (1/2) • The outside date for the consummation of the Arrangement Agreement has passed on February 15, 2021 • Each party is currently entitled, at any time, to terminate the Arrangement upon notice to the other party 1 TRANSACTION •
Slide 12: 4 pillars: Measures taken for the sustainability of the Corporation (2/2)
4 pillars: Measures taken for the sustainability of the Corporation (2/2) • On February 17, 2021, the Corporation announced that it has extended the termination date of its $250 million short-term loan facility by three months and • The facility had been arranged with Export Development Canada and N
Slide 13: Resizing of the fleet
Resizing of the fleet PRE-COVID CURRENT OBJECTIVES DUE TO COVID-19 Capacity Summer Winter Winter Summer Type of aircraft 2019 2020 2021 2021 (seats) 2 aircraft matured at the end of the year and 3 early terminations A330-200/300 332-375 seats 20 20 15 15 signed at the end of summer; On-going efforts
Slide 14: Financial Results and Position
Financial Results and Position
Slide 15: Most recent financial results
Most recent financial results Twelve-month Highlights of the First Quarter Quarter ended • International flights restrictions, quarantine measures and border closure period ended Change January 31 limited our recovery January 31 (LTM) • Shutdown of the operations for the second time in the last twel
Slide 16: Current financial position
Current financial position Q1 2021 Cash burn: $40 million per month Cash Burn Evolution (lower than previous quarter) • Monetary profitability of ($80M) – mainly fixed costs $734 ($157) • Unfavorable settlement of fuel-related derivative contracts of ($3M) • Financing costs of ($4M) • Net change in
Slide 17: Risks and Uncertainties
Risks and Uncertainties
Slide 18: Key risks and uncertainties
Key risks and uncertainties * Risk relating to the ability to continue as a going concern: • The consolidated financial statements have been prepared on a going concern basis which assumes that the Corporation will continue its operations for the foreseeable future and will be able to realize its as
Slide 19: Appendix
Appendix
Slide 20: Pre-COVID financial overview
Pre-COVID financial overview 2019 Comparable 2020 Pre-COVID (November to February) (November to February) Difference Observations (all amounts in C$ millions) ▪ Strategic initiatives taken by Transat Revenues $948 $1,016 +$68 over the last few years started to contribution to the financial Adjusted
Slide 21: Adjusted net income (loss) reconciliation
Adjusted net income (loss) reconciliation (Last twelve-month period) Loss / (gain) on asset Special items of $102M disposals of ($6M) Provision for Net income Special items Impairment of return (loss) related to the Impairment of the investment conditions of Change in fair Foreign attributable to tr
Slide 22: Non-IFRS financial measures
Non-IFRS financial measures Non-IFRS financial measures included in this presentation are not defined under IFRS. Therefore, It is likely that the non-IFRS financial measures used by the Corporation will not be comparable to similar measures reported by other issuers or those used by financial analy
Slide 23: Experienced and results-driven executive team
Experienced and results-driven executive team Jordi Solé was appointed President of Transat’s hotel division in 2018. Since 2001, Jean-Marc Eustache was the principal architect of the 1987 creation of Transat he has overseen the operations of resorts belonging to several major A.T. Inc. His forward-
Slide 24: Results for first quarter 2020
Results for first quarter 2020 THANK YOU TO OUR EMPLOYEES, CUSTOMERS, Cut our income loss by half on a like-for-like INVESTORS AND FINANCIAL PARTNERS basis Continue to expect the deal to close in Q2/20 (calendar), subject to regulatory approvals INVESTOR’S PRESENTATION MARCH 2020