Transat A.t. Inc. · TSX:TRZ
Transat A.t — Q4 2023 Earnings Presentation
20 slides from Transat A.t's earnings presentation, December 2023
Slide 1: Q4 2023 Presentation
Results for the quarter ended October 31, 2023 Q4 2023 Presentation
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements with respect to the Corporation, The forward-looking statements in this news release are based on a number of assumptions including those regarding its results, its financial position and its outlook for the fut
Slide 3: Non-IFRS Financial Measures
Non-IFRS Financial Measures We report our financial results in accordance with IFRS. This presentation was By excluding from our results items that arise mainly from long-term strategic prepared using results and financial information determined under IFRS. In addition decisions and/or do not, in ou
Slide 4: General Overview FY 2023 and Q4 2023
General Overview FY 2023 and Q4 2023 4
Slide 5: FY 2023 Highlights
FY 2023 Highlights $3.0B $263.3M Revenues Adjusted EBITDA1 $25.3M $162.4M Net Loss 2023 Free Cash Flow1 Adjusted EBITDA1 margin of 8.6% exceeded annual guidance 1. Refer to Non-IFRS Financial Measures in the Appendix. 5
Slide 6: Operating Metrics
Operating Metrics ▪ Demand remained healthy Key Indicators for Fourth Quarter 2023 throughout the fourth quarter, resulting in a solid load factor of Versus 2019 Global Network Transatlantic (Main Network) 88.3%, comparable to 2019 levels Load Similar + 1pp ▪ Yield1 up 25% during the quarter Factor
Slide 7: Significant Progress in the Execution of our Strategic Plan
Significant Progress in the Execution of our Strategic Plan 1 Establish strategic partnerships st in technology ✓ Announced Joint Venture with Porter Inve ✓ Expansion of virtual interline service Strengthen & Increase revenue per available seat mile Diversify Master 2 ✓ Implementation of PROs the Ne
Slide 8: Transat-Porter Joint Venture
Transat-Porter Joint Venture ▪ Key pillar of strategic plan consists of growing customer traffic through alliances • Agreement with Porter expected to gradually increase passenger traffic ▪ Combining both airlines’ networks will offer enhanced travel possibilities for travellers ▪ Feeder strategy de
Slide 9: Capacity Increase and Fleet Overview
Capacity Increase and Fleet Overview ▪ Anticipate 19% increase in available seat miles Winter Fleet1 (ASM) for 2024 2024 2019 2023 • Continuing to improve fleet utilization Forecast • Increasing frequency of best-performing routes to A330 262 12 14 Southern and European destinations from Montreal an
Slide 10: Potential Headwinds in 2024
Potential Headwinds in 2024 ▪ Pratt & Whitney engine issue • Anticipated inspections and removals of certain engines that power Transat’s A321LR aircraft • Out of a fleet of 15 LRs, three aircraft currently impacted by this situation and the number should reach five or six aircraft by the end of fis
Slide 11: Summary
Summary ▪ Delivered solid financial results in 2023 • Based on the dedication and hard work of 5,000-plus employees ▪ Well positioned for accelerated growth in 2024 • Joint venture with Porter • Capacity expansion initiatives • Increased operational efficiency 11
Slide 12: Financial Review Q4 2023
Financial Review Q4 2023 12
Slide 13: Financial Highlights
Financial Highlights ▪ Fourth-quarter results exceeded expectations • Load factor of 88.3%, comparable to 2019 • Favourable pricing produced yields that exceeded 2019 levels by 25% ▪ Concluded fiscal year with positive cash flow • Free cash flow1 generation to play increasing role in deleveraging ba
Slide 14: Q4 2023 Results
Improvement Across Key Q4 2023 Results Financial Metrics ▪ Revenues increased 33.4% YoY to $764.5M Q4 2022 Q4 2023 • Reflects improved market conditions driven by sustained customer demand and higher selling prices YoY $764.5M ▪ Adjusted EBITDA1 reached $89.0M compared to a $573.1M loss of $11.5M in
Slide 15: Stronger Cash Position and Improved Financial Profile
Stronger Cash Position and Improved Financial Profile Lower Long-Term Debt ▪ Cash flows from operations totaled $321.8M in $833.2M $815.8M FY2023 compared to negative $177.9M in 2022 • Mainly driven by improved profitability and better working capital • Free cash flow1 of $162.4M including proceeds
Slide 16: Outlook
Outlook ▪ Adjusted EBITDA1 margin target of 7.5%-9% for FY2024 ▪ Anticipating 19% increase in available capacity for fiscal year • Driven by planned aircraft additions as well as fleet utilization improvements ▪ Main assumptions for forecast • Weak growth in Canada’s GDP • Exchange rate of C$1.33 to
Slide 17: Appendix
Appendix 17
Slide 18: Debt Breakdown
Debt Breakdown Accounting policies Facility amount2 Maturity Sources of capital Type of instruments Carrying Considerations Accounts Available Used Unused date amount2 Revolving Credit Facility Long-term debt 49.6 50.0 50.0 - April 2025 Interest rate: Bankers' acceptance plus a premium of 4.5% (1st
Slide 19: Clear Decarbonization and Corporate Responsibility Focus
Clear Decarbonization and Corporate Responsibility Focus People Planet Sustainable Practices Fostering a safe, caring and Reducing the environmental impact of Being a catalyst for positive change in accessible customer experience and our activities at home and abroad our value chain work environment
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) or Adjusted EBITDA1: Operating income (loss) before depreciation, amortization an