Latam Airlines Group Sa · BCS:LTM
Latam Airlines Group Sa — Q1 2024 Earnings Presentation
15 slides from Latam Airlines Group Sa's earnings presentation, May 3, 2024
Slide 1: Results Presentation First Quarter 2024
Results Presentation First Quarter 2024 May 3, 2024
Slide 2: Disclaimer
Disclaimer Neither the United States Securities and Exchange Commission (“SEC”) nor the Chilean Comisión 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 this
Slide 3: First Quarter 2024 Highlights
LATAM group's business model: Unique network and First value proposition delivering strong results Quarter 2024 Solid market Growth in Capital structure New guidance Highlights shares, network and demand revenues with costs contained improvement and rating upgrades and other announcements Unique val
Slide 4: LATAM reports record top-to bottom line figures
LATAM reports record top-to bottom line figures, on the back of strong demand, cost containment and competitive network Total revenues (US$) Adj. EBIT margin (%) Net income (US$) 3.3Bn +18.4% 13.9% +3.4p.p 258Mn +112% vs.Q1-23 vs.Q1-23 vs.Q1-23 P&L (US$ million) Q1-24 Q1-23 Change Revenues 3,321 2,8
Slide 5: Investments improve customer satisfaction
LATAM group's unique value proposition in the region: Investments improve customer satisfaction Investments for clients: Customer satisfaction (NPS): Renovation of VIP lounges 1 Passenger operations New cabins for narrow and start of construction in 48 50 body fleet 46 Lima 33 2019 2022 2023 Q1-24 P
Slide 6: Record number of passengers with higher load factor
LATAM group transported a record number of passengers with higher load factor, reflecting increased passenger preference Passengers transported Load-Factor (millions) (%) 20.2 +19% 84.2% +3.4p.p 84.4% 18.2 17.0 81.0% 80.5% 14.4 Q1-19 Q1-22 Q1-23 Q1-24 Q1-19 Q1-22 Q1-23 Q1-24 6
Slide 7: Passenger network activity has contributed to the strong financial results
Passenger network activity has contributed to the strong financial results ASK (billion) Load Factor (%) Passengers (million) RASK (US$ cent) 38.5 32.7 81.0% 84.4% 17.0 20.2 7.3 7.5 Consolidated +17.5% +3.4p.p. +19.4% +3.0% Q1-23 Q1-24 Q1-23 Q1-24 Q1-23 Q1-24 Q1-23 Q1-24 78.4% 80.9% 7.8 8.5 8.6 11.3
Slide 8: Cost containment and competitive fleet cash cost
Cost containment and competitive fleet cash cost: Key drivers of LATAM group's profitability Unit cost in line with the full year results of 2023 and within the lower range of the 2024 guidance: • CASK ex fuel: 4.8-5.0 (US$ cents). • Passenger Cask ex fuel: 4.3-4.5 (US$ cents). Fleet cash cost of US
Slide 9: Consistent adj. EBITDAR growth, reaching US$ 2.8 billion
As a result, LATAM group reported consistent adj. EBITDAR growth, reaching US$ 2.8 billion LTM adj. EBITDAR LATAM Group has increased from US$1.7 Bn of LTM adjusted EBITDAR to US$ 2.8 Bn in one year representing an increase of 66%, stemming from the growth of the group's operations during the quarte
Slide 10: Consistent cash generation and strong liquidity
Healthy operational figures driving cash generation, resulting Consistent in 5 consecutive cash quarters of cash generation without issuing non-fleet debt generation and strong liquidity • During 2023, LATAM group generated approximately US$ 500 million in cash. • In Q1 2024, it generated US$137 mil
Slide 11: Strong capital structure supporting rating agencies upgrades
Strong capital structure supporting rating agencies upgrades • Liquidity stands at 24% of last twelve months revenues, above internal target of 20% minimum. • Record 1.9x adjusted net leverage, a demonstration of LATAM group's solid balance sheet. • The rating agencies have recognized the value of t
Slide 12: Enhanced credit ratings could enable strategic liability management in Q4 2024
Enhanced credit ratings and a healthy debt profile could enable strategic liability management in Q4 2024 • During the fourth quarter of 2024, the LATAM group has the opportunity to refinance US$1.4 billion of non-fleet debt at par, which includes refinancing Term loan-b of approx. US$1.1 billion do
Slide 13: Upgraded guidance: Adj. EBITDAR US$2.75 - US$3.05 bn
Upgraded guidance: Adj. EBITDAR improvement to US$2.75 - US$3.05 bn 1) Passenger CASK ex fuel excludes cargo costs associated with belly and freighter operations, variable Aircraft Rental expenses (non-cash P&L effect) and employee compensations associated with the Corporate Incentive Plan.2) Adjust
Slide 14: First quarter 2024 takeaways
First quarter 2024 takeaways Strong growth and LATAM group grew 17.5% in capacity (ASK) compared with the same quarter of 2023 and 1 reported a record figure in passengers transported of over 20 million, with a solid load solid market shares factor of 84.4%. Costs 2 Unit costs remained in line with
Slide 15: Results Presentation
Results Presentation First Quarter 2024 May 3, 2024