Pegasus Hava Tasimaciligi Anonim Sirketi : 2021 Q4 Investor Presentation

2021 Q4 RESULTS PRESENTATION

March 2022

KEY HIGHLIGHTS

4Q21 ASK at 89%, pax at 77% and revenue at 75% of 4Q19 despite tighter travel restrictions with the Omicron variant.

Traffic

• 4Q21 total ASK at 89%, pax at 77% of 4Q19 despite Omicron woes and macro challenges. Total capacity recovery in 2021 reached 75%.
• Q4 domestic ASK at 88% and pax at 74% of 4Q19 on a LF of 80%.
• Int'l operation further gained ground in Q4 with ASK and pax reaching 89% and 80% of 4Q19, despite decisions by authorities to tighten border restrictions after Omicron.

Liquidity

• Total cash reserve stands at EUR662mn as of 4Q21-end.
• Positive cash reserve after deducting total short and long term bank loans and debt instruments is at EUR66mn as of the end of 4Q21.
• EUR35mn cash burn realized in Q4 (EUR12m/month).

Financial Performance

• Q4 revenues of EUR298mn grew 113% YoY and reached 75% of 4Q19. 12M revenues amounted to EUR1,025mn, up 63% YoY and at 59% of 12M19.
• Q4 topline was supported by strong ancillary performance. EUR17.6 ancillary revenue/pax in 4Q21 marks a record high.
• Q4 EBITDA at EUR74mn vs. EUR10mn in 4Q20 and EUR93mn in 4Q19. 25.0% margin in 4Q21 beat the 23.5% margin in 4Q19. 12M21 EBITDA at EUR254mn, up 175% YoY.

Outlook

• Pre-COVIDstrategy of favoring «growth in international operations» reinstalled.
• Capacity plans are for 2022 ASK production to be «at least» equal to 2019 production.
• Fleet size is at 90 aircraft as of 2021 year-end. 2022 year-end fleet size is estimated at 101 A/C.

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OPERATING ENVIRONMENT

Int'l passenger demand continued its recovery in 4Q21 despite Omicron woes.

(mn)PAX.			Domestic																											International						36%			32%			66%			78%
	'21 as %						47%		54%		93%		79%		50.0	34.4
		of '19				70.0							69%
					60.0																										100.0
						50.0
TÜRKİYE				40.0
			30.0	12.3	9.7	5.8	12.4	1.3	6.7	13.4	7.8	12.5	11.8	6.1	9.4				24.9								16.7	14.1	6.0	28.5	0.4	9.2	39.7	9.7	26.1	23.5	7.6	18.4
				2019
				2020																								2019
				20.0																								2020
				2021
				10.0																								2021
				0.0																										0.0
										Q1				Q2				Q3				Q4				12M								Q1					Q2					Q3					Q4
(mn)PAX.PEGASUS			Domestic																											International
		1.0		4.0	3.6	2.4		3.8	0.3	2.4		4.2	3.1	4.1		4.1	2.6	3.0			16.1	9.6 12.0		2.0	2.9 2.7 1.0	3.6 0.0 1.2	4.6 1.2 3.1	3.6 1.3 2.8
								60%		64%		98%		74%		75%
		'21 as %			20.0															34%			34%			68%			80%
		of '19			19.0																												20.0
					18.0																												19.0
					17.0																												18.0
					16.0																												17.0
					15.0																												16.0
					14.0																												15.0
				13.0																												14.0
				12.0																												13.0
				11.0																												12.0
				10.0																												11.0
				9.0																										10.0
				8.0																										9.0
				2019																										20198.0
				7.0
				2020																										7.0
				6.0																										2020
				5.0																										6.0
				2021																										5.0
				4.0																										2021
				3.0																										4.0
																													3.0
				2.0
				0.0																										1.0
																													0.0
										Q1				Q2				Q3				Q4				12M								Q1			Q2			Q3			Q4

55%

108.4

31.9 59.7

12M

56%

14.7

5.1 8.2

12M

Türkiye passenger data is taken from General Directorate of State Airports Authority, domestic passengers are divided by 2 in order to avoid double counting.
Pegasus figures reflect booked passengers, international pax includes charter pax	3

OPERATING ENVIRONMENT

Pre-COVID strategy of prioritizing «international growth» reinstalled.

2019

Pegasus,ASK	63% 56%	77% 46%	85% 48%	80% 48%	58% 41%	113% 54%	118% 86%	111% 86%	112% 76%	105% 83%	90% 91%	70% 94%	61% 104%
	(rebased to 100%)
	Dom ASK (% of '19)
	Int ASK (% of '19)

		Jan'21 Feb'21 Mar'21	Apr'21 May'21	Jun'21	Jul'21 Aug'21 Sep'21 Oct'21 Nov'21 Dec'21 Jan'22
Factor		2019
	2020&21	Domestic
95%		92%	95%
Load	91%	91%	91%	88%	86%
	81%	82%		86%

96%				84%	113%	88%	89%
	80%	75%	83%
37%	48%		50%	48%

Q3'20

Q4'20

Q1'21

Q2'21

Q3'21

Q4'21

International

82%	83%	86%	84%

Pegasus,	78%	77%	80%
72%
		66%

67%

74%

64%

78%

3Q20

4Q20

1Q21

2Q21

3Q21

4Q21

3Q20

4Q20

1Q21

2Q21

3Q21

4Q21

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OPERATING ENVIRONMENT

International pax yield further accelerated towards pre-COVID levels in 4Q21.

			Yield/pax - Sch. Domestic (TL)
					236
					196
		174			183
	135				154
		122		129
			110
			105
95

X 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21

	Sch. Domestic Yield/pax - % chg. vs 2019
	% chg in TL terms	% chg in EUR terms
			60%
35%	35%	36%

-12%	-14%							-7%	-12%	-15%
							-19%
						-34%	-41%
3Q20	4Q20	1Q21	2Q21	3Q21	4Q21	3Q20	4Q20	1Q21	2Q21	3Q21	4Q21

Yield/pax - Sch. Int'l (EUR)

84

76

Sch. Int'l Yield/pax - % chg. vs 2019

						% chg in TL terms
	60	57
	54	51
45	47
43	46						-7%
		40					-9%
					-12%
					-20%		-23%
		X	-32%
			3Q20	4Q20	1Q21	2Q21	3Q21	4Q21

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21

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