Three-Year Recovery Plan slide image

Three-Year Recovery Plan

Net Debt and liquidity position. - Net Debt increased by ($1.2) b for the 12 months to June 2021 primarily driven by: Underlying operating cash flow of $2.4b One-off outflows including redundancies of ($2.8]b Capex of ($0.7)b Significant borrowing activity for the period included: FY21 new borrowings of $0.9b made up of $0.7b unsecured and $0.2b secured borrowings Repayment of ($0.4) b secured amortising debt Repayment of ($0.4)b bond which matured in June 2021 Increased committed undrawn facilities of $1.6b The Group also maintains an unencumbered asset base of >$2.5b including aircraft5, land, spare engines and other assets As at 30 SM June 21 As at 30 June 20 VLY $M4 Current interest-bearing liabilities on 969 868 (101) - balance sheet Non-current interest-bearing liabilities on balance sheet 5,861 5,825 (36) - Cash at end of period (2,221) (3,520) (1,299) Net on Balance Sheet debt¹ 4,609 3,173 (1,436) Capitalised aircraft lease liabilities² 1,281 1,561 280 Net Debt³ 5,890 4,734 (1,156) As at 30 SM June 21 As at 30 June 20 VLY $M4 • Cash and cash equivalents at end of period 2,221 3,520 (1,299) Undrawn facilities 1,575 1,000 575 Total liquidity 3,796 4,520 (724) 100 1. Net on Balance Sheet debt includes interest-bearing liabilities and the fair value of hedges related to debt reduced by cash and cash equivalents. 2. Capitalised aircraft lease liabilities are measured at fair value at the lease commencement date and remeasured over lease term on a principal and interest basis akin to a finance lease. Residual value of capitalised aircraft lease liability denominated in foreign currency is translated at the long-term exchange rate. 3. Net Debt under the Group's Financial Framework includes net on Balance Sheet debt and capitalised aircraft lease liabilities. 4. Unfavourable variance shown as negative amounts. 5. Aircraft valuations based on the average of Aircraft Value Analysis Company Limited (AVAC) and AVITAS market values as at 30 June 2021. | 14
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