annual meeting of shareholders...aga 2020 2. jean-marc eustache founding member chairman of the...

Annual

Meeting of

Shareholders

Caution

Forward-looking statements

This document contains certain forward-looking statements with respect to the Corporation. All such statements are made pursuant to applicable Canadian securities legislation. Such statements may involve but are not limited to comments with respect to strategies, expectations, planned operations or future actions.

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. The forward-looking statements in this document are based on a number of assumptions relating to economic and market conditions as well as the Corporation’s operations, financial position and transactions. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons, detailed in the Risks and Uncertainties section of the MD&A included in our 2019 Annual Report.

Non-IFRS financial measures

Transat prepares its financial statements in accordance with International Financial Reporting Standards (IFRS). We will occasionally refer to non-IFRS financial measures in this document. These non-IFRS financial measures do not have any meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. They are intended to provide additional information and should not be considered as a substitute for measures of performance prepared in accordance with IFRS. All amounts are in Canadian dollars unless otherwise indicated.

Management believes that such non-IFRS financial measures are important, as they allow a better understanding of the results of our recurring operations and their related trends, while increasing transparency and clarity into our operating results. These expressions are presented in a consistent manner from one period to another.

By excluding from our results items that arise mainly from long-term strategic decisions and/or do not, in our opinion, reflect our operating performance for the period, such as the change in fair value of fuel-related derivatives and other derivatives, gain (loss) on business disposals, restructuring charges, asset impairment, depreciation and amortization, foreign exchange gains (losses) and other significant unusual items, and by including premiums for fuel-related derivatives and other derivatives matured during the period, we believe that non-IFRS financial measures help users to better analyze the Corporation’s results and ability to generate cash flows from operations. Furthermore, the use of non-IFRS measures helps users by enabling better comparability of results from one period to another and better comparability with other businesses in our industry. Refer to the Non-IFRS financial measures section of the MD&A of our 2019 Annual Report for definitions of these metrics and reconciliations to the most comparable IFRS measures.

AGA 2020 2

Jean-Marc Eustache

Founding member

Chairman of the Board, President and Chief Executive Officer and Chair of the Executive Committee

Transat A.T. Inc.

AGA 2020 3

Conduct of

the meeting

AGA 2020Conduct of the Meeting | 4

Denis Pétrin

Vice-President, Finance and Administration, and Chief Financial Officer

AGA 2020 5Conduct of the Meeting |

Bernard Bussières

Vice-President, General Counsel and Corporate Secretary

AGA 2020 6Conduct of the Meeting |

Agenda

1. Appointment of scrutineers

2. Scrutineers’ report and quorum

3. Receipt of financial statements

4. Election of directors

5. Appointment of external auditors

6. Resolution: executive

compensation

7

7. Shareholder proposal No 1

8. President’s message

9. Financial report

10. Vote result

11. Question period

AGA 2020Agenda |

1

AGA 2020

Appointment

of scrutineers 1 Appointment of scrutineers | 8

2

AGA 2020

Scrutineers’ report

and quorum

2 Scrutineers’ report and quorum | 9

Annual

Meeting of

Shareholders

3

AGA 2020

Financial statements

as at October 31, 2019Financial statements as at October 31, 2019 | 11

4

AGA 2020

Election of directors

4 Election of directors | 12

Raymond Bachand

Strategic Advisor

Norton Rose Fulbright

AGA 20204 Election of directors | 13

Louis-Marie Beaulieu

President and Chief Executive Officer

Groupe Desgagnés inc.

AGA 2020 144 Election of directors |

Lucie Chabot

Corporate Director


Lina De Cesare

Founding member

Corporate Director


W. Brian Edwards

Corporate Director


Susan Kudzman

Corporate Director


Jean-Yves Leblanc

Corporate Director


Ian Rae

Founder and Chief Executive Officer

CloudOps


Jacques Simoneau

Corporate Director


Louise St-Pierre

Corporate Director


Philippe Sureau

Founding member

Corporate Director


Jean-Marc Eustache

Founding member

Chairman of the Board, President and Chief Executive Officer and Chair of the Executive Committee


4

AGA 2020

Election of directors

254 Election of directors |

5

AGA 2020

Appointment

of external auditors

5 Appointment of external auditors | 26

6

AGA 2020

Resolution:

Executive

compensation

6 Resolution: Executive compensation | 27

7

AGA 2020

Shareholder

proposal No

1

7 Shareholder proposal No 1 | 28

8

AGA 2020

President’s

message

298 President’s message |

History

AGA 2020

1982


1987 1992

1997 2017 2019

Plan of Arrangement

with Air Canada

30

2002

2007

2012

Key dates

JANUARY FEBRUARY MARCH APRIL MAY JUNE

MAY 2, 2020

Transport Canada report

MARCH 23, 2020

Competition Bureau report

Transaction finalized

Approval:European Commission

AGA 2020

Approval: Minister of Transportand Cabinet


AGA 2020 328 President’s message |

Competitive

environment


World tourism

1,3

1,4

1,5

1,2

1,3

1,4

1,5

1,6

2017 2018 2019

In b

illio

ns

Tourists


World tourism

AGA 2020

4,1

4,3

4,5

4,0

4,1

4,2

4,3

4,4

4,5

4,6

2017 2018 2019

In b

illio

ns

Passengers-kilometres


geopolitical health-relatedeconomic

AGA 2020 36

Challenges

weather-related


Approval of the Plan of arrangement

with Air Canada

Shareholders vote

August 23, 2019

Approval

94.77%


Fleet transformation

AGA 2020

A330

A321

A310

B737

2017 2018 2019 2020 2021 2022 2023


Fifteen new

A321neoLRs

• Long range (autonomy)

• Medium- and long-haul routes (South and Europe)

• Increased frequencies

• Low fuel consumption


64 7079

94111

150

0

20

40

60

80

100

120

140

160

180

2014 2015 2016 2017 2018 2019 2020

Grow ancillary revenues

TOTAL ANCILLARY REVENUES

(in millions of $)

$165 M


Increase customer loyalty

43

2022 target

+ 20 points

10

17

2018 2019

NET PROMOTER SCORE (NPS)

AGA 2020

2018 2019

SATISFACTION

77% 80%


Annual results

2018

$2.8 billion

Revenues

2019

$2.9 billion

In millions of dollars

ADJUSTED NET LOSS1

-24

-92019

2018

ADJUSTED OPERATING INCOME1

38

17

2019

2018

1 See the caution regarding non-IFRS financial measures

NET INCOME (LOSS)

ATTRIBUTABLE TO

SHAREHOLDERS

-33

6

2019

2018


AGA 2020 46

Transat,

a resilient company

2020COVID-19

2016ZIKA

2001SEPTEMBER 11

2003SRAS

2009H1N1


Forbes magazine's annual list

among Canada’s

Best Employers

AGA 2020

among Quebec’s

Best Employers

Positions gained compared to the 2019 ranking

8th 3rd 43


Annual

Meeting of

Shareholders

9

AGA 2020

Financial report509 Financial report |

Adjusted results

IN MILLIONS OF DOLLARS

17

38

-24

-9

20182019

Adjusted operating income

Adjusted net income (loss)

2019 2018

Revenues 2,937.1 2,849.0

Adjusted operating income1 38.0 17.2

Adjusted net income (loss)1 (9.4) (24.0)


per share1 ($)(0.25) (0.64)

AGA 2020 519 Financial report | 1 See the caution regarding non-IFRS financial measures

Results as per financial statements

-50 -51

-33

6

2019 2018

Operating income (loss)

Net income (loss) attributable to shareholders

2019 2018

Revenues 2,937.1 2,849.0

Operating income (loss) (49.8) (50.6)

Net income (loss) attributable

to shareholders (33.2) 6.5

Basic earnings (loss) per share (0.88) 0.17

AGA 2020


529 Financial report |

1st quarter results

-8

27

-39

-20

20192020

Adjusted operating income (loss)


20202019

Restated

Revenues 693 648

Operating income (loss) (25) (49)

Adjusted operating income (loss)1 27 (8)

Net income (loss) attributable

to shareholders(34) (53)

Adjusted net income (loss)1 (20) (39)

AGA 2020


531 See the caution regarding non-IFRS financial measures 9 Financial report |

COVID-19

1

On the operational side

2

On the commercial side

54AGA 20209 Financial report |

COVID-19

As at February 24

55

Since then Outlook

AGA 2020

BOOKINGS


COVID-19

MITIGATION MEASURES

56

Costs

AGA 2020

Air program


Consolidated balance sheets

as at January 31

10251093

753809

20192020

Total cash

Customer deposits and deferred revenues

2020

2019

Restated

Free cash 682 620

Total cash 1,093 1 025

Total assets 2,634 2,392

Customer deposits

and deferred revenues809 753

Lease obligations 690 556

Working capital ratio 1.04 1.14

Liquidity ratio1 37% 36%

AGA 2020


571 See the caution regarding non-IFRS financial measures 9 Financial report |

Annual

Meeting of

Shareholders

10

AGA 2020

Vote result

5910 Vote result |

11

AGA 2020

Question period

6011 Question period |

Adjournment

of the meeting

AGA 2020Adjournment of the meeting | 61

Thank you

annual meeting of shareholders...aga 2020 2. jean-marc eustache founding member chairman of the...

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