LATAM Airlines Group SA · BCS:LTM
LATAM Airlines Group SA — FY2023 Earnings Presentation
18 slides from LATAM Airlines Group SA's earnings presentation, Feb 23, 2024
Slide 1: Results Presentation Fourth Quarter and Full Year 2023
Results Presentation Fourth Quarter and Full Year 2023 February 23, 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 thi
Slide 3: LATAM group delivered remarkable operational and financial results in 2023
LATAM group delivered remarkable operational and financial results in 2023 Record figures and outperforming financial results Growth and operational flexibility Adj. annual double-digit operating margin: Consolidated ASK growth: 20.6% YoY. • 11.3% 74 million passengers transported: pre-pandemic leve
Slide 4: In 2023, LATAM outperformed both its guidance and its updated business plan
In 2023, LATAM outperformed both its guidance and its updated business plan, and strengthened its financial position Annual Revenues Annual Adj. EBITDAR (US$ million) Outperformed (US$ million) Outperformed 2023 guidance 2023 guidance (US$ 11.3 - 11.6 (US$ 2.35 - 2.5 +23.9% billion) and billion) and
Slide 5: Financial consistency throughout 2023, reaching US$3,251 million in revenues in the quarter
Financial consistency throughout 2023, reaching US$3,251 million in revenues in the quarter and a double-digit adjusted margin Quarterly Revenues Quarterly Adj. EBITDAR +18.5% vs (US$ million) 4Q-2022 (US$ million) +29.9% vs 4Q-2022 3,056 3,251 2,805 2,676 726 675 573 559 Q1-23 Q2-23 Q3-23 Q4-23 Q1-
Slide 6: LATAM group affiliates are leaders in their domestic markets
LATAM group affiliates are leaders in their domestic markets and have strengthened their competitive position throughout 2023 • Only airline group in the region with presence in five domestic markets. During 2023 LATAM group launched 21 routes: 4 domestic and 17 international. Domestic Affiliates Ma
Slide 7: Leading passenger airline group connecting South America to the world
Leading passenger airline group connecting South America to the world with an unique and expansive network International Market Shares Joint Venture with Delta Q4 2022 vs Q4 2023 Q4 2022 vs Q4 2023 42% # 1 36% # 1 39% 33% Within South South America - America North America2 20% # 1 19% 6 routes launc
Slide 8: Strong results demonstrate the enduring trust and confidence that passengers have in LATAM group
Strong results demonstrate the enduring trust and confidence that passengers have in LATAM group Unparalleled, Commercial Leading Frequent Expansive Network Agreements Flyer Program • 148 passenger destinations in • Joint Venture with Delta • 45+ million members. 26 countries. Air Lines. • Largest F
Slide 9: LATAM group accomplished notable operational results in 2023
LATAM group accomplished notable operational results in 2023 ASK (billion) Load Factor (%) Passengers (million) RASK (US$ cent) 137.3 73.9 113.9 81.3% 83.1% 62.5 6.7 7.4 Consolidated +20.6% +1.7pp. +18.3% +10.4% 2022 2023 2022 2023 2022 2023 2022 2023 79.5% 80.8% 33.0 8.2 40.9 44.8 28.6 6.7 Domestic
Slide 10: LATAM reported US$11.8 billion in revenues and net income of US$582 million
LATAM reported US$11.8 billion in revenues and net income of US$582 million Change (%) vs Change (%) vs Twelve months (US$ million) 4Q2023 twelve months 4Q2022 of 2023 of 2022 Revenues 3,251 18.5% 11,789 23.9% Passengers 2,848 24.3 % 10,215 33.8 % Cargo 364 -13.4 % 1,425 -17.4 % Total Adjusted Expen
Slide 11: During 2023, 46% of passenger revenues came from international operations
During 2023, 46% of LATAM group's passenger revenues came from international operations • Which experienced a significant boost throughout the year, further supported by the recovery of the international demand and the increase in our corporate passengers revenues, which have surpassed 2019 levels.
Slide 12: Consistent cash generation
Strong focus on profitability delivered US$ 498 million in Consistent cash cash generation in 2023 generation • This notable cash generation stands out as a reflection of the customer preference for LATAM and the efficient cost and cash cost structure of LATAM group. Differentiating factor • US$ 1,0
Slide 13: Consistent quarter-over-quarter balance sheet improvement with historic adj. leverage ratio of 2.1x
Consistent quarter-over-quarter balance sheet improvement with a historic annual adj. leverage ratio of 2.1x Liquidity (US$ million) • Liquidity has increased by approximately US$500 2,815 million during 2023, driven by LATAM group's strong 2,515 2,625 2,729 2,317 and healthy cash generation. • Liqu
Slide 14: LATAM group closed 2023 with a fleet of 333 aircraft and updated its fleet plan
LATAM group closed 2023 with a fleet of 333 aircraft and updated its fleet plan through 2026 2023 2024 2025 2026 Fleet as of end of each year 333 339 353 354 Narrow body fleet 256 264 274 275 Wide body fleet 57 56 60 60 Cargo fleet 20 19 19 19 During 2023, LATAM group: Neo family aircraft fleet to n
Slide 15: 2024 Published Guidance
2024 Published Guidance: LATAM group projects US$2.6 - 2.9 billion adjusted EBITDAR2 Operating Growth Cost Structure Total ASK Growth vs 2023: 12% - 14% CASK ex fuel (US$ cents): 4.8 - 5.0 Domestic Brazil ASK: 7% - 9% Domestic SSC: 12% - 14% Adjusted Passenger CASK ex 4.3 - 4.5 International: 16% -
Slide 16: LATAM group leads the region in sustainability performance according to S&P CSA
LATAM group leads the region in sustainability performance according to the latest Corporate Sustainability Assessment (CSA) by S&P • Since 2020, 1.79 million tons of emissions have been offset. • Between 2021 and 2023, over 250,000 tons of CO2 were avoided through efficiency programs. • Support was
Slide 17: 2023 Takeaways
2023 Takeaways During the year, LATAM group transported nearly 74 million passengers and increased market shares in 1 Scale every market the affiliates operate. This growth demonstrates the enduring trust and loyalty that passengers have in LATAM group's services. Growth Full year revenues reached U
Slide 18: Results Presentation
Results Presentation Fourth Quarter and Full Year 2023 February 23, 2024