2022 Q3 RESULTS PRESENTATION

November 2022

KEY HIGHLIGHTS

Record-setting Q3 performance at key financial metrics, momentum remains strong at the start of the winter schedule.

Traffic

  • Summer peak saw a strong leisure traffic across our operating geography. Number of foreign visitors travelling to Turkey recovered back to pre-pandemiclevels (27.3mn visitors in the May-September period).
  • 3Q22 int'l ASK reached 129% of 3Q19, with 3Q22 int'l pax number standing at 115% of 3Q19.
  • Total ASK in stood %17 higher in 3Q22 and 7% higher in 9M22, compared to the same periods of 2019.

Financial Performance

  • 3Q22 revenues grew 122% YoY to EUR1.0bn with 55% increase over 3Q19. Topline was supported by strong travel demand and passenger yields (total Euro pax yield x2 YoY). Ancillary revenues/pax posted a new record high of EUR25.2 in Q3.
  • 3Q22 EBITDA reached EUR469mn on a 46.9% margin, beating the EUR314mn EBITDA in 3Q19 by 49%.
  • Q3 net profit is at EUR278mn (EUR177mn for 9M22), better than the EUR183mn recorded in 3Q19.

Liquidity

  • Total cash reserves increased to EUR952mn as of 3Q22- end, mainly thanks to the cash generated from operations.
  • Positive cash reserve after deducting total short and long term bank loans and issued debt instruments increased to EUR408mn as of the end of 3Q22, up from EUR237mn at the end of 2Q22.
  • In total, EUR171mn cash was created in 3Q22.

Outlook

  • Demand remains robust into the winter season: total ASK is planned to be 12%-15%higher in 4Q22 vs 4Q19, and 7-10%higher in overall 12M22 vs. 12M19.
  • Momentum in EBITDA seen in 3Q22 is expected to extend into 4Q22. EBITDA in 4Q22 (and in overall 12M22) is expected to be significantly better than the 2019 level.
  • 12M22 EBITDA margin is foreseen to stage a 'full recovery' towards the 12M19 reading of 33.3%.

2

RECOVERY RATES

EBITDA/seat metric represented 49% increase in 3Q22 over 3Q19 and marked the highest quarterly reading ever.

3Q22 realization

Recovery Rates

3Q21 as % of 3Q19

4Q21 as % of 4Q19

1Q22 as % of 1Q19

2Q22 as % of 2Q19

3Q22 as % of 3Q19

14.8bn

12.4bn

8.5mn

5.3mn

€1.0bn

€214mn

€129

€c6.74

€48.6

155%

149%

153%

149%

129%

133%

117%

115%

96%

Total ASK

Int'l ASK

Number of

Number of

Revenue

Ancillary

Int'l pax

RASK

EBITDA/seat

Total pax

Int'l pax

revenue

yield

3

ROUTE NETWORK

Route network covers 89 international destinations.

Current Network

47 Countries

125 Destinations

36 Domestic, 89 Int'l

Announced additions to the int'l route network for 2022:Istanbul Sabiha Gokcen

→ Yerevan → Ganja

  • Nur-Sultan→ Helsinki *
  • Baku

Ankara

  • Bagdat → Bucharest

→ Almati → Tbilisi

Izmir

  • Frankfurt → Tbilisi

→ Skopje

→ Tel Aviv

Antalya

→ Sofia

→ Yerevan

  • Bucharest
    Dalaman
  • London Stansted → Manchester
    Trabzon
  • Doha

Zafer

  • Cologne → Duesseldorf
  • Brussels

4

* Helsinki was planned to be initiated in 2020

but was postponed due to the pandemic

OPERATING ENVIRONMENT

Pegasus 3Q22 international pax reached 15% above its 3Q19 level, outperforming the recovery rate in the broader market.

TÜRKİYE PAX. (mn)

PEGASUS PAX. (mn)

16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0

5.0

4.0

3.0

2.0

1.0

0.0

12.3

12.4

10.0

13.4

11.7

11.8

Domestic

2019

2021

2022

8.0

4.0

2.7

3.9

3.6

4.5

3.7

4.6

4.0

4.5

4.1

4.3

3.6

4.3

3.4

Q1

Q2

Q3

Q4

Apr

May

Jun

Jul

Aug

Sep

Oct

Domestic

4.0

4.2

4.1

2019

2021

2022

3.8

2.8

3.2

2.2

1.2

0.7

1.2

1.0

1.3

1.1

1.4

1.1

1.4

1.1

1.4

1.0

1.4

1.0

Q1

Q2

Q3

Q4

Apr

May

Jun

Jul

Aug

Sep

Oct

50.0

International

7.39 2.39

2019

2021

2022

40.0

5.

235.

30.0

28 5 25.

7.

136.

87. 26. 93. 86. 114. 107. 133. 133. 142. 138. 122. 121. 108. 110.

20.0

16

10.0

0.0

Q1

Q2

Q3

Q4

Apr

May

Jun

Jul

Aug

Sep

Oct

6.0

5.3

International

2019

2021

2022

4.6

5.0

4.0

3.6

3.8

3.6

3.0

2.9

2.7

2.0

1.2

1.0

1.1

1.3

1.3

1.4

1.5

1.8

1.6

1.8

1.4

1.7

1.4

1.7

1.0

0.0

Q1

Q2

Q3

Q4

Apr

May

Jun

Jul

Aug

Sep

Oct

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

5

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Pegasus Hava Tasimaciligi AS published this content on 09 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 November 2022 21:44:51 UTC.