Air Canada Rouge - First Five Years

Expect Improvement in ROIC and Growth in Free Cash Flow Free Cash Flow - ROIC (1) As reported on October 31, 2018 - Plan on using excess cash to purchase new aircraft to effectively reduce gross debt Will continue to leverage Normal Course Issuer Bid (NCIB) opportunities - Will consider other uses of cash as plan matures - - Expect cumulative free cash flow of $2B to $3B over 2018-2020 period (1) Continue to expect ROIC to continue to exceed weighted average cost of capital by a wide margin Forecast annual ROIC of approximately 12% in 2018 (1) and 13% to 16% in 2019 and 2020 (1) 27

View entire presentation