Three-Year Recovery Plan slide image

Three-Year Recovery Plan

FY21 overview Protecting the Balance Sheet and commencing the recovery . FY21 Underlying EBITDA¹ of $410m, Underlying Loss Before Tax (ULBT)² of ($1.8)b, Statutory Loss Before Tax of ($2.4]b, despite losing $12b of Total Revenue³ • Domestic airlines generated $233m of Underlying EBITDA in 2H21 despite >$500m of lockdown impacts4 Positive Statutory Net Free Cash Flow5 for 2H21 driven by domestic recovery, significant Qantas Loyalty cash flow contribution and record Freight performance¹ Financial resilience • Maintained strong liquidity settings; total liquidity $3.8b6 Debt reduction commenced in 2H21, with Net Debt7 declining from $6.4b in 3Q21 to $5.9b at June 2021 • Outflows of deferred payables, refunds and redundancies totalling $2.8b completed in FY21 • Disciplined capital expenditure of $693m for FY21 Recovery Plan ahead of target • • Delivered $650m in structural cost benefits in FY21, ahead of $600m target; on track for $850m by FY22, and at least $1b by FY23 Enhanced competitive position with ~70% domestic capacity share, leading premium service and low cost carriers, leading Loyalty program and significant structural changes to the cost base; record customer Net Promoter Score (NPS) in FY2110 100 Balance Sheet repair commenced despite challenging operating environment 1. Underlying earnings before interest, tax, depreciation, amortisation and impairments (Underlying EBITDA). 2. Underlying LBT is a non-statutory measure and is the primary reporting measure used by the Chief Operating Decision-Making bodies, being the Chief Executive Officer, Group Management Committee and the Board of Directors, for the purpose of assessing the performance of the Qantas Group. All items in the FY21 Results Presentation are reported on an Underlying basis, unless otherwise stated. For a reconciliation from Statutory LBT to Underlying LBT, please see 2 slide 5 of the Supplementary Presentation. 3. Compared to FY19 as a proxy for Pre-COVID performance. 4. Represents Underlying EBITDA impact. 5. Cash from operating activities less net cash used in investing activities. 6. Includes committed undrawn facilities of $1.6b. 7. Net Debt under the Group's Financial Framework includes net on Balance Sheet debt and capitalised aircraft lease liabilities. For a detailed calculation of the Net Debt target range, please see slide 11 in the Supplementary Presentation. 8. Management identified deferred payables at 30 June 2020 through the Group's cash management program. 9. Equal to net investing cash flows included in the Consolidated Cash Flow Statement and the impact to Invested Capital from the disposals/acquisitions of leased aircraft. 10. Record NPS achieved in Jetstar, Qantas Loyalty and QantasLink in FY21.
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