march 24, 2010 - transat€¦ · this presentation contains certain forward-looking statements with...
TRANSCRIPT
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March 24, 2010
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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 these
forward-looking statements. We consider the assumptions on which
these forward-looking statements are based to be reasonable, but
caution the reader that these assumptions regarding future events,
many of which are beyond our control, may ultimately prove to be
incorrect since they are subject to risks and uncertainties that
affect us.
The Corporation disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise, other than as required by law.
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stock quote (LTM)
Volume
Closing
(Daily)
3
Share
Issue : $13.00 9/30/2009
$11.523/18/10
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1st Quarter 2010 (November 1 to January 31)
2010 2009REVENUES 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)
In millions of dollars, except per-share amounts
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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 million hit due to hedging positions (fuel, FX)
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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
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Transat: competitive advantages
Multi-market international tour operator1
Leader in the Canadianholiday travel market
Leading tour operator in the Canada-UK market
Fourth largest tour operator in France
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Transat: competitive advantages
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2 Unique point-to-point approach to transatlantic market
34 European, 8 Canadian destinations, 70 city-pairs
Affordable car rentals, hotels, tours, etc.
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3
Transat: competitive advantages
Very competitive in the all-inclusive package market
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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 communities)
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Transat: competitive advantages
Dynamic approach to managing air capacity
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5-year agreement for narrow-body aircraft
Clear fleet strategy for Air Transat (A330), leading to lower costs
Improved customerexperience
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Short-Term Action Plan for the sun market
Revision of our approach to hedging for the sun market
Brand and product differentiation strategy
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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…
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1
Strategies for the 2009-2011 period
Focus on product differentiation
Optimize input costs (airlift, hotels, …)
Increase control over distribution of our sales
Open new outgoing markets (Americas and south-Europe)
Invest in technologies (inventory & yield, distribution)
Capitalize on our people
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2
3
4
5
6
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Sun market from Canada
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Market share based on deployed capacity at end of season(all inclusive packages, Mexico/Caribbean, winter)
32%
7%
13%
11%18%
6%
13%
2004 - 2005
Sunwing18%
Signature 9.5%
Transat Sunwing ACVSunquest (TCG)Signature
TMR Others WestJet
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Transatlantic market
Leadership position on the two largest transatlantic
holiday markets, and selling seats and products
in 12 European countries
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2009
Transat
Air Canada
Air France
Corsair
Transat
Air Canada
British Airways
Other
UK
FRANCE
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long-haul market from France
No.1 on North America
Leader in coach tours
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Medium-and short-haul market from France
More than 30 Lookéa Clubs
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Incoming to Canada
Largest TO to Canada
206,000 travellers in 2009
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Outgoing market from France
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117025%
70015%
140029%
55012%
93019%
Tour Operators:$5.7B
Distribution:4,750 travel agencies
Transat Thomas Cook
Club Med TUI/NFOther
Kuoni FRAMAFAT Selectour Tourcom
OtherTUI + Havas + CWTThomas Cook/Jet Tours
AFAT Selectour
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