LATAM Airlines S A : 2Q 2020 LATAM Airlines Results Presentation

Second Quarter 2020 Results Presentation

August, 2020

Second Quarter 2020 Highlights of LATAM group

Operations & Network

• Operated only 6% of ASKs
• Operations increased to 9% of ASKs in July
• Border closures extended more than forecast

Chapter 11 updates

• Affiliates in Chile, Perú, Colombia, Ecuador and USA filed for Ch11
• LATAM Airlines Brazil subsequently also filed in the Ch 11 process
• DIP financing commitment for US$2.2 bn upsizable in US$250mm1,2

Cargo Business

• Revenues increased 18%, though total capacity fell 40%
• Freighter capacity increased 28%, including 72 charter flights

Others & Financial

• Liquidity of US$1.4 bn
• Financial Debt reduced by US$965mm YoY to US$6.8bn
• 32 aircraft leases contracts rejected or in process of rejection2

1 Waiting for court approval

2

2 As of August, 2020

Second Quarter 2020 Financial Summary

(US$ Millions)2Q202Q19Change

Total Operating Revenues	572	2,370	-75.9%
Passenger	123	2,020	-93.9%
Cargo	319	269	+18.4%
Others	130	81
+60.7%
Total Operating Costs	-1,267	-2,330	-45.6%
Fuel	-77	-721	-89.3%
Ex-fuel	-1,190	-1,608	-26.0%
Operating Income	-695	40	nm
Operating Margin	-121.5%	1.7%	-123 p.p.
Net Income	-890	-63	nm
EBITDA	-388	392	nm
EBITDA Margin	-67.8%	16.5%	-84 p.p.

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Second Quarter 2020 Operating Statistics

% YoY	System Capacity	Capacity	Traffic	Load Factor	RASK/RATK (USc)	1
(ASK)	(RPK)
			(% YoY)

International42%

(Long Haul & Regional)

Domestic Brazil

41%

17%

SSC Domestic

-95.3%	-97.7%	41.6%	7.5
		(-44.5 p.p.)	(+40.2%)
			BRL
			2Q20: +2.2%
-90.2%	-92.6%	60.8%	5.0
		(-19.1 p.p.)	(-26.8%)
-93.8%	-95.8%	54.6%	6.9
		(-24.9 p.p.)	(+6.2%)

Passenger	-93.7%	-96.1%	51.6%	5.6
(-31.7 p.p.)	(-3.2%)

Cargo	-39.6%	-15.7%	78.0%	34.7
(+22.1 p.p.)	(+96.0%)
1 RASK by business unit includes ticket revenue, breakage, frequent flyer program contribution and ancillary revenues		4