Transat A.T. Inc. · TSX:TRZ
Transat A.T — Q4 2022 Earnings Presentation
20 slides from Transat A.T's earnings presentation, Dec 15, 2022
Slide 1: Investor Presentation: Results for the quarter ended October 31, 2022
Investor Presentation Results for the quarter ended October 31, 2022 Transat closes fiscal 2022 with an encouraging outlook Current bookings comparable to pre-pandemic levels DECEMBER 15, 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 Q4 Highlights & Outlook 2 Strategic Priorities Update 3 FY22 Q4/12M Results 4 Summary 5 Appendix
Slide 5: Travel recovery, which started in the third quarter, accelerated in the fourth quarter
Travel recovery, which started in the third quarter, accelerated in the fourth quarter FY22 Q4 delivering further operational and financial progress • Capacity of 91% (82% previous quarter) vs. 2019 across all programs and 79% (68% previous quarter) for Europe Deployed a program that capitalized on
Slide 6: Improvement in prices and load factors help reduce our adjusted operating loss
Improvement in prices and load factors help reduce our adjusted operating loss1 and sets the stage for an encouraging Winter outlook Travel & Airline (Capacity, passengers and load factor %) Global Transatlantic Capacity Allocation 64% (Main program) Continuous increase in Build on our predominant C
Slide 7: The combination of demand and high prices will allow us to manage higher costs
The combination of demand and high prices will allow us to manage higher costs Winter 2022-2023 Cumulative Bookings1 as % of 2019 Indicators across the network Versus 2019 Q1 Winter 100% 2.0 99% Load Factor -1% (74% LF) Similar (55% LF) 99% Strong increase in 1.8 momentum in the last 98% month with
Slide 8: Agenda
AGENDA 1 FY22 Q4 Highlights & Outlook 2 Strategic Priorities Update 3 FY22 Q4/12M Results 4 Summary 5 Appendix
Slide 9: Our priority is to transform Transat into an efficient and competitive airline
Our priority is to transform Transat into an efficient and competitive airline to deliver sustainable financial performance and create shareholder value Advancement Advancement 1 status 2 status Flattened organzational structure Redefine the network through: 1.Automation and digitalization of Fixed
Slide 10: Continued rebuilding of our fleet with the order of additional A321LR
Continued rebuilding of our fleet with the order of 2 additional A321LR following 4 XLR in the previous quarter which demonstrates our confidence in the future • Simplified fleet with 100% Airbus aircraft (no more seasonal aircraft) • Cockpit Commonality drives lower costs, operational efficiencies
Slide 11: Attentive to the world around us, Transat is committed to operate sustainably
Attentive to the world around us, Transat is committed to operate in a sustainable manner for our customers, our employees and our communities, both here and abroad 1. PLANET 2. PEOPLE Integrate sustainability into our practises 3. PRACTICES Protect the environment Empower our people Integrate susta
Slide 12: Agenda
AGENDA 1 FY22 Q4 Highlights & Outlook 2 Strategic Priorities Update 3 FY22 Q4/12M Results 4 Summary 5 Appendix
Slide 13: Reduced adjusted operating loss by 80% and setting the stage to return to profitability
Reduced adjusted operating loss1 by 80% and setting the stage to return to profitability and improved operational performance Quarter ended October 31 12-month period ended October 31 Fourth Quarter Highlights (in millions of C$, except per share amounts) 2022 2021 Change 2022 2021 Change • Revenues
Slide 14: Further progress through agreements with credit card processors
Further progress through agreements with credit card processors to normalize our working capital dynamics Initiatives to Improve Liquidity Position Since Negotiate the partial release of the Beginning of the Pandemic funds held by credit card processors 1 5 3 Negotiations with credit card Reduction
Slide 15: Agenda
AGENDA 1 FY22 Q4 Highlights & Outlook 2 Strategic Priorities Update 3 FY22 Q4/12M Results 4 Summary 5 Appendix
Slide 16: Focus on our historical strengths and progress on our strategic plan initiatives
Focus on our historical strengths and progress on our strategic plan initiatives to enable the delivery of our short-term objectives SET THE BASIS FOR SUSTAINABLE PERFORMANCE AND FUTURE GROWTH Optimize the airline Optimize revenue Improve our capital Focus on customer operations, increase the manage
Slide 17: Agenda
AGENDA 1 FY22 Q4 Highlights & Outlook 2 Strategic Priorities Update 3 FY22 Q4/12M Results 4 Summary 5 Appendix
Slide 18: Financing Overview (As at October 31, 2022)
Financing Overview (As at October 31, 2022) Accounting policies Facility amount 1 Sources of Maturity Type of instruments Carrying Considerations capital Accounts Available Used Unused date amount 1 Revolving Credit Facility Interest rate: Banker’s acceptance plus a premium of 4.5% Long-term debt 49
Slide 19: Breakdown of non-recurring items
Breakdown of non-recurring items Quarter ended October 31 12-month period ended October 31 (in millions of C$) 2022 2021 Change 2022 2021 Change Non-recurring items Insurance premium payment prepaid for one year coverage 5.8 - 5.8 15.2 - 15.2 Unfavourable cash settlement to terminate fuel derivative
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