Transat A.T. Inc. · TSX:TRZ
Transat A.T — Q3 2022 Earnings Presentation
20 slides from Transat A.T's earnings presentation, Sep 8, 2022
Slide 1: Investor Presentation: Results for the quarter ended July 31, 2022
Investor Presentation Results for the quarter ended July 31, 2022 Confirmed return of bookings to pre-pandemic levels SEPTEMBER 8, 2022 Ticker: TRZ/CN
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, cap
Slide 4: Agenda
AGENDA 1 FY22 Q3 Highlights & Bookings Update 2 Strategic Priorities Update 3 FY22 Q3/9M Results 4 Summary 5 Appendix
Slide 5: The recovery emerging at the end of last quarter has been confirmed in recent months
The recovery emerging at the end of last quarter has been confirmed in recent months FY22 Q3 delivering further operational and financial progress • Capacity of 82% vs. 2019 across all programs and 68% for Europe With prudent planning and high quality execution from our teams, we operated 96% of our
Slide 6: Overall Bookings Trend – Continuous improvement of the load factors during the quarter
Overall Bookings Trend – Continuous improvement of the load factors during the quarter Summer 2022 Net Weekly Bookings1 as % of 2019 Versus 2019 Q3 Summer Bookings -24% - 150% Weekly avg. 109% of 2019 S2 2022 Q3 2022 Q4 2022 since mid-May +8% on main ASP - program 125% 64% 82% across all our 92% acr
Slide 7: Ramp-up continued in Q3, achieving high load factors in all programs
Ramp-up continued in Q3, achieving high load factors in all programs Travel & Airline (Capacity, passengers and load factor %) Global Transatlantic 64% Capacity Allocation Development of domestic Continuous increase in load and transborder market put factors during the quarter. In A more prudent and
Slide 8: Agenda
AGENDA 1 FY22 Q3 Highlights & Bookings Update 2 Strategic Priorities Update 3 FY22 Q3/9M Results 4 Summary 5 Appendix
Slide 9: Our priority is to transform Transat into an efficient and competitive air carrier
Our priority is to transform Transat into an efficient and competitive air carrier to produce sustainable financial performance and create shareholder value Advancement Advancement 1 status 2 status Flattened organzational structures Redefine the network through: 1.Automation and digitization of Fix
Slide 10: Continued rebuilding of our fleet with new A321LR and order of A321XLR
Continued rebuilding of our fleet with the receipt of 2 new A321LR and the order of 4 A321XLR; Grow network breadth and scope with more routes and frequency • Simplified fleet with 100% Airbus aircraft • Cockpit Commonality drives lower costs, operational efficiencies & flexibility • Network connect
Slide 11: Reinforced corporate responsibility strategy
Reinforced corporate responsibility strategy Corporate Responsibility Governance • Creation of a corporate responsibility vice-presidency and associated committees 1. Climate action 2. Sustainable tourism 3. Employee and community engagement • Alignment with United Nations sustainable development go
Slide 12: Agenda
AGENDA 1 FY22 Q3 Highlights & Bookings Update 2 Strategic Priorities Update 3 FY22 Q3/9M Results 4 Summary 5 Appendix
Slide 13: July was our first profitable month in more than two years
July was our first profitable month in more than two years and this is setting the stage for improved results if the fuel prices can normalize (in millions of C$, except per share amounts) Quarter ended July 31 9-month period ended July 31 Highlights of the Third Quarter Results 2022 2021 Change 202
Slide 14: Further progress with agreement with a federal Crown Corporation for additional funding of $100 million
Further progress with an agreement with a federal Crown Corporation for an additional funding of $100 million Initiatives to Improve Liquidity Position Since Secure Additional Financing During the Beginning of the Pandemic the Quarter to De-Risk the Recovery 1 5 3 $963M in available financing1 and R
Slide 15: Agenda
AGENDA 1 FY22 Q3 Highlights & Bookings Update 2 Strategic Priorities Update 3 FY22 Q3/9M Results 4 Summary 5 Appendix
Slide 16: Transat: A renewed leisure airline in a recovering industry
Transat: A renewed leisure airline in a recovering industry Recovering Leisure Leading Leisure Airline Renewed Transat Travel Industry Tourism growth above GDP supported Robust global network to 25+ Fixed cost reduction & by favorable socioeconomic countries & strong key markets’ Enhanced revenue ma
Slide 17: Agenda
AGENDA 1 FY22 Q3 Highlights & Bookings Update 2 Strategic Priorities Update 3 FY22 Q3/9M Results 4 Summary 5 Appendix
Slide 18: Financing Overview
Financing Overview Facility amount Accounting policies (in millions of C$) Sources of Maturity Type of instruments Carrying As at July 31, 2022 Considerations capital date Accounts amount (in millions of C$) Available Used Unused Revolving Credit Facility Interest rate: Bankers' acceptance plus a pr
Slide 19: Breakdown of non-recurring items
Breakdown of non-recurring items Quarter ended July 31 9-month period ended July 31 (in millions of C$) 2022 2021 Change 2022 2021 Change Non-recurring items Insurance premium payment prepaid for one year coverage - - - 9.4 - 9.4 Unfavourable cash settlement to terminate fuel derivatives contract -
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)1: Operating income (loss) before depreciation, amortization and asset impairment