Transat A.T. Inc. · TSX:TRZ
Transat A.T — Investor Presentation (March 2010)
21 slides from Transat A.T's investor presentation, Mar 24, 2010
Slide 1: Transat – March 24, 2010
transat March 24, 2010
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation contains certain forward-looking statements with respect to the Corporation. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the
Slide 3: Stock quote (LTM)
stock quote (LTM) Closing (Daily) Share Issue : $13.00 $11.52 9/30/2009 3/18/10 Volume 3
Slide 4: 1st Quarter 2010 results
1st Quarter 2010 (November 1 to January 31) In millions of dollars, except per-share amounts 2010 2009 REVENUES 792.6 877.3 MARGIN (OPERATING LOSS) (12.4) (8.5) NET LOSS (13.9) (29.4) ADJUSTED AFTER-TAX LOSS (18.2) (11.8) DILUTED LOSS, PER SHARE (0.37) (0.90) 4
Slide 5: 1st Quarter 2010 highlights
1st Quarter 2010 highlights 10% capacity cut in Q1, offset mainly by scheduled carriers Excess capacity and downward pressure on selling prices for sun destinations Reduction of structure, fuel, hotel and other costs insufficient to entirely offset lower selling prices Margin down $3.9 million $17 m
Slide 6: 2nd Quarter 2010 outlook
2nd Quarter 2010 outlook Could record a loss in Q2: demanding market conditions Capacity similar to last year Bookings coming in Load factors slightly inferior Excess capacity and low selling prices Impact of hedging 6
Slide 7: Competitive advantages: Multi-market international tour operator
Transat: competitive advantages 1 Multi-market international tour operator Leader in the Canadian holiday travel market Leading tour operator in the Canada-UK market Fourth largest tour operator in France 7
Slide 8: Competitive advantages: Unique point-to-point approach
Transat: competitive advantages 2 Unique point-to-point approach to transatlantic market 34 European, 8 Canadian destinations, 70 city-pairs Affordable car rentals, hotels, tours, etc. 8
Slide 9: Competitive advantages: All-inclusive package market
Transat: competitive advantages 3 Very competitive in the all-inclusive package market Highly experienced team (product, sales & marketing, revenue management) Multi-channel distribution system (brick-and-mortar, web) Largest travel agency network in Canada (2,300 advisors, 453 outlets, 248 communit
Slide 10: Competitive advantages: Dynamic approach to managing air capacity
Transat: competitive advantages 4 Dynamic approach to managing air capacity 5-year agreement for narrow-body aircraft Clear fleet strategy for Air Transat (A330), leading to lower costs Improved customer experience 10
Slide 11: Short-Term Action Plan for the sun market
Short-Term Action Plan for the sun market Revision of our approach to hedging for the sun market Brand and product differentiation strategy 11
Slide 12: Vision 2014
vision 2014 Our vision is to be a leader in the Americas with a solid competitive position in several European countries. And we are committed to achieve this… 12
Slide 13: Strategies for the 2009-2011 period
Strategies for the 2009-2011 period 1 Focus on product differentiation 2 Optimize input costs (airlift, hotels, …) 3 Increase control over distribution of our sales 4 Open new outgoing markets (Americas and south-Europe) 5 Invest in technologies (inventory & yield, distribution) 6 Capitalize on our
Slide 14: Sun market from Canada
Sun market from Canada Market share based on deployed capacity at end of season (all inclusive packages, Mexico/Caribbean, winter) 2004 - 2005 32% 7% 13% Sunwing 18% 13% 6% Signature 9.5% 18% 11% Transat Sunwing Signature ACV TMR Others Sunquest (TCG) WestJet 14
Slide 15: Transatlantic market
Transatlantic market Leadership position on the UK two largest transatlantic Transat Air Canada holiday markets, and selling British Airways seats and products Other in 12 European countries 2009 FRANCE Transat Air Canada Air France Corsair 15
Slide 16: Long-haul market from France
long-haul market from France No.1 on North America Leader in coach tours 16
Slide 17: Medium- and short-haul market from France
Medium-and short-haul market from France More than 30 Lookéa Clubs 17
Slide 18: Incoming to Canada
Incoming to Canada Largest TO to Canada 206,000 travellers in 2009 18
Slide 19: Outgoing market from France
Outgoing market from France Tour Operators: Distribution: $5.7B 4,750 travel agencies 1170 25% AFAT Selectour 700 930 15% 19% 550 12% 1400 29% Transat Thomas Cook AFAT Selectour Tourcom Kuoni FRAM TUI + Havas + CWT Other Club Med TUI/NF Thomas Cook/Jet Tours Other 19
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