JEAN-MARC EUSTACHE PRESIDENT AND CHIEF EXECUTIVE OFFICER Annual - PDF document

JEAN-MARC EUSTACHE PRESIDENT AND CHIEF EXECUTIVE OFFICER Annual Meeting 2010 1

International Arrivals and Transat Revenues International Arrivals (world) Transat Revenues (millions of travellers) (millions of dollars) Forecast Travel for all Annual Meeting 2010 2

France in 2009 France in 2009 (in millions € ) -12.5% 231 202 2008 2009 Annual Meeting 2010 3

France in 2009 France in 2009 (in millions € ) + 6% 297 279 2008 2009 Annual Meeting 2010 4

France in 2009 (in millions € ) 510 499 2008 2009 Supply Chain Strategy  Purchasing power and economies of scale  Buying more than $2 billion in travel services (direct costs)  Mexico, Caribbean, Western Europe countries Annual Meeting 2010 5

All-inclusive sun packages – from Canada in winter 2008 08 - 2009 2009 32.3%  1.2 million packages sold in 2009 5.8%  Growing, Other ers competitive Sunwi wing 5% TMR TMR 18% market WestJe tJet 5.2%  Average selling 27.5% Signatu ature Sunquest est prices and margin 9.5% (TCG CG) ACV under pressure 9.7% 14.5% Transatlantic Market 2006 2009 U.K. Transat 21.6% 23.7% Air Canada 1.4% 8.7% Air India 3.6% British Airways 24.6% MyTravel Zoom Airlines 43.4% 22.2% 49.1% Other 1.1% 0.6% FRANCE Transat 26.8% 30.1% Air Canada 4.4% Air France 8.8% 6.9% Zoom Airlines 25.2% 21.5% Other 36.7% 39.6% Annual Meeting 2010 6

Transatlantic Market Unique offering of 70 city-pairs Commercial presence on both sides of the Atlantic Annual Meeting 2010 7

The largest retail distribution network in Canada The largest retail distribution network in Canada Annual Meeting 2010 8

The largest retail distribution network in Canada The largest retail distribution network in Canada  450+ travel agencies  2,300 travel advisors  Sales of $1.3 billion Annual Meeting 2010 9

The largest retail distribution network in Canada French Market Tour Operators: Distribution: $5.7B 4,750 travel agencies AFAT Selectour FRAM Thomas Cook Kuoni TUI + Havas Thomas Cook/ Club Med + CWT Jet Tours Others Tourcom TUI/NF Others Annual Meeting 2010 10

Partnership with AFAT Voyages Sélectour  26 agencies sold  41 agencies now under Look Voyages  More agencies to adopt Look Voyages banner over time Multi-channel distribution Annual Meeting 2010 11

Air lift capacity management  Guaranteed and flexible access to adequate capacity  Appropriate aircraft type depending on route  Cost-competitive 5-year agreement with CanJet Airlines  Narrow-body Boeing B737-800  189 seats  Adequate for sun destinations  Favourable financial conditions Annual Meeting 2010 12

Air Transat fleet transition plan  18 wide-body Airbus (A330 and A310)  Transition to an A330 fleet  Reduction in operating costs Capacity Management  Air Transat: approximately 50% of Transat’s global needs  Increased flexibility thanks to the CanJet agreement  Subleases of aircraft  Cost reduction and improved performance Annual Meeting 2010 13

Ai Air Transa sat: : An improved customer experience Creation of Transat France Annual Meeting 2010 14

Revenues 1% 1%  Revenues up by 1%  Approx. 3 million customers $3,545M $3,513M  Lower selling prices  Fuel: $319 million in 2009 2008 2009 Margins  Record volumes in first half $127.8M  Excellent load factors in 2009 $93.4M  Challenging commercial environment 2008 2009 Annual Meeting 2010 15

A (H1N1) Flu  Lower demand for Mexico  Volume shift to other destinations  Lower demand in certain market segments Lower demand for Canada as destination  Volume drop of 20%  Challenge in France, U.K.  Cost reduction measures  Improvement expected in 2010 Annual Meeting 2010 16

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Sustainable Tourism Mexico Annual Meeting 2010 19

Sustainable Tourism Turkey Sustainable Tourism Morocco Annual Meeting 2010 20

Sustainable Tourism Peru Mexico Turkey Morocco Peru Annual Meeting 2010 21

A solid management team Pa Patri trice ce Carad adec ec President, Transat France Annual Meeting 2010 22

A solid management team Nelson son Gentile iletti tti Chief Operating Officer A solid management team Denis is Pétrin rin Vice-President, Finance & Administration Chief Financial Officer Annual Meeting 2010 23

A solid management team Michel el Bellef efeu euille ille Vice-President Chief Information Officer A solid management team Michael el DiLoll llo President, Transat Tours Canada Annual Meeting 2010 24

A solid management team Yves s Lalumière mière Vice-President and General Manager Transat Distribution Canada Vision 2014 A vertically-integrated tour operator, leader in the Americas, with a strong competitive position in numerous European countries Annual Meeting 2010 25

Strategic Plan 2009-2011 FIVE STRATE TEGI GIES ES 1. Increase our competitiveness in our core markets 2. Adapt our offering to participate in high-growth market segments 3. Actively pursue vertical integration 4. Enter new outgoing markets with a bilateral approach 5. Develop skills and invest in human capital Objectives 2010  Expand our leadership market position on both sides of the Atlantic  Complete the integration of new management teams  Pursue development and implementation of new information systems  Position Transat as an industry leader in corporate responsibility Annual Meeting 2010 26

Competitive landscape  Disappearance of a tour operator and merger of two others  Consolidation and polarization in France  Increasing importance of having a presence in distribution JEAN-MARC EUSTACHE PRESIDENT AND CHIEF EXECUTIVE OFFICER Annual Meeting 2010 27