Good afternoon, and welcome to this presentation where we present the results of the Q2 of 2023. My name is Birgir Jónsson, and I'm the CEO of Play. I will begin by going over the highlights of the quarter. Then Ólafur Þór Jóhannesson, our CFO, will talk us through the financial numbers and the financial performance, and then I will come back and talk about the outlook for the year. We encourage you to send questions to the email address, IR@flyplay.com, ir@flyplay.com. We will post the answers within the next few hours on our website, and we really hope to get some good questions. If we look at the quarter at a glance, this was a monumental quarter in our brief history. We managed to reach the achievement and the milestone of getting 10 aircraft into service and thereby getting into the scale that we have been ramping up to for the last two years. We flew just under 400,000 passengers in the quarter between 34 destinations. We had 84.3% punctuality or on-time performance, and our load factor was 84.6%. The passenger mix, we had about 43% of our passengers were flow passengers, or the via traffic from Europe to U.S. 30% of our passenger mix was from passengers, so Icelanders, Icelandic people going abroad, basically, and 27% were two passengers or tourists coming to Iceland. One of the key KPIs or the key metrics that we are focused on here at Play is the on-time performance. Here we lay out the slide where we show the on-time performance in comparison to our competitor here in Iceland. We can see that we are by far the most punctual airline here in our market, and this is important for a number of reasons. Number one, this is highly important for our passengers. They want to get to their destinations on time because they have onward journeys or some commitments that they want to do, or fun things they want to do at their destination and don't want to be late for that. It also means that we can keep the integrity of our network. We are not running into costs because we are into delays, technical issues, having to pay fines or extra costs because we have to pay extra handling and stuff like that. The network is running like clockwork, and this is a big point of ambition for us. We can see that, while the network is functioning well, we can also see that we are now reaching a very acceptable level of load factor or utilization in our network, within our network. That's a good sign of the quality of the distribution, the sales and marketing efforts, that we are reaching the right market segment, the right passengers, and getting quite a good utilization. As our company matures and the capacity grows, we are also seeing the number of passengers per month grow quite significantly, as you can see here from the beginning. We had just over 160,000 passengers in June this year. If we look at the market share, we made a slight shift in our strategy for this summer, where we've put more emphasis on the to and from markets and shifted a little bit away from the flow market or the VIA market. We can see that our share of the from traffic, from Iceland to basically Icelandic people traveling abroad, there was a 41% of all Iceland people traveled abroad in the quarter chose Play. This is for the quarter. If we look at the month of June, I think it was 54%, which is astonishing. We are really happy about that, and there's a great vote of confidence from our local market, and we are absolutely thrilled with that. We have about 19% of this, of the total seats at Keflavik Airport, which is also has been growing and will grow in the future also. We have 15% of the total to and from market, and 7% of the basically, tourists coming to Iceland in the quarter chose Play. We can say that our strategy of focusing more into point-to-point travel or to and from has been successful and is working, and that is also maybe the market segment that is historically gives us the margin and the ancillary revenue that we are searching for, and we need. Of course, we are doubling our available seat kilometers or the capacity between quarters. Q2 last year, and Q2 this year, we doubled our capacity. It's very good to see that while doing that, we are also being able to increase our revenue per available seat kilometer or the RASK, which shows us that we are not stunning the market with too much capacity, and we are not flooding it with unwanted seats. We're basically adding capacity into the right markets at the right frequency and able to yield the right kind of revenue from it. That's something that we aim to continue doing in the future. We are always investing in our network and adding new destinations. In the quarter, and let's say run up to the summer, we launched 13 new destinations, and I think we relaunched 7 of them also. We had, let's say, 20 new destinations in the network for the summer and in the quarter, and that is notable because that brings with it some kind of challenges. There's directional, directionality issues in the load factor. More people are going one way than the other, and it takes a few weeks to get the balance right. It also means that of course, when you want to win a new market share in a new market, you have to kind of do it on a price level. We are seeing a quarter, even though we are quite satisfied with the results, we also know that we will do better in the future, because we have such a high proportion of new markets which have relatively low prices because they're beginning and the directionality issues in the load factors. If we look at how the RASK is developing, we can see that the existing markets or what we launched mostly last year, we've seen that we are able to increase the RASK on those markets by 11%. Even though the competition has been adding 16% of capacity in the same markets. It's not the fact that we are alone in the market, and we can charge what we want. The customers are choosing us over the competition because of something. That is quite a, quite an interesting fact. Of course, we are a young company, and we celebrated our second operational birthday this quarter, or actually in June. We had our inaugural flight June 24th, 2021. Of course, we did a lot of events on board in our hub airport here in Iceland. Also did a very successful social media stunt where we sent a crew of people to Washington, D.C., asked some random people about Iceland and strange things about Iceland. Met some people that knew the answers, and they were whisked to Iceland within a few hours and got to experience Iceland, basically a few hours after they met some strange people on the street and were asked some great questions. Why are we doing this? This is simply to raise the awareness of the company, communicate the spirit of the brand. We are called Play. We want to be playful, and we want to make sure that our passengers and everyone that touches the brand and touches the product, feels that we can enjoy life and have fun. In June, or just closing the quarter, we got the very enjoyable news that we were voted the best low-cost airline in Northern Europe in the Skytrax World Airline Awards. This is, of course, extremely important to us because this is voted by the passengers. This is a massive survey of passengers, global airline customers, and we came number one in Northern Europe. We came number 10 for the best low-cost airline in Europe, and we made the top 100 list of the best airline in the world, not only low-cost airline, but the best airline in the world. For a company that was just celebrating its second birthday, that was a massive vote of confidence. It was, it's a great kind of statement from the market to keep on going and keep on doing the great job that our great crew and all our team of people here have been doing for the last 2 years. Talking about the great crew and the great team, we had about 8,000 applications for jobs in this year, for the ramp, this ramp up. Our human resource team and operations team did 1,000 job interviews, and we hired and trained and welcomed 300 new employees, taking the total number of employees to about 530 at the end of the quarter. Quite important is to note that 21% of our employees developed in their job and got new positions. By that, I mean cabin crew members being promoted to senior cabin crew members, first officers being promoted to captains, and of course, all kinds of promotions within the office and the specialist field. That's an important for a company and for an airline that is in a very competitive market for people. Is that we can offer people a great working environment and a way to progress in their career. I have often mentioned in these presentations that we take the culture of the company extremely seriously, and we do not want to lose the opportunity of when you build the company from the ground up, that if you focus on culture and how we want people to feel and function and perform within a new company, you really have to. You basically do it from day one and make sure that you don't lose the opportunity. You cannot really do anything unless you can measure it, because one of our values is being data-driven and focused on the data. We are always trying to measure all kinds of stuff. We are, we're doing all kinds of employee surveys, and we're using external consultants and external tools, so we can always compare ourselves to other companies, both here in Iceland and in the international market. We can see that our employee engagement, or basically how people are functioning in their jobs, and are they, do they show up for the jobs every day with the dedication and the conviction to do their best? It's 4.26 out of 5. That has been improving by 7 points since we did the last survey a couple of months ago. Job satisfaction is 4.21. The pride people feel like working at Play is also quite high, especially in relations to here, the companies in Iceland, 4.37. This is something that we take really seriously, and is the key to making sure that our passengers feel welcomed, secure, and happy. Having said that, I want to welcome Ólafur Þór Jóhannesson, our CFO, and he will talk us through the financial performance of the quarter. Thank you. Thank you, Birgir. I'm very pleased to go through the financial results for the Q2 of 2023, where we had a total revenue, the highest revenue quarter, from beginning of $73 million during the quarter. We had a positive EBIT of $0.4 million during the Q2, which is around $50 million improvement from previous year. We had positive cash flow during the quarter, by $17 million, resulting in a cash position at $54 million at end of quarter. Yeah, I can say impressive 3.5 cents in ex-fuel CASK during the quarter, which is a decrease, significant decrease from previous quarter, and year-on-year comparison. We had $0.053 in TRASK despite the double amount of available seat kilometers from previous year. As before, we have 0 external interest-bearing debt. Of course, we have to comply with the IFRS 16 regarding the accounting for right-of-use assets and the related liabilities. As I mentioned in the first slide, we had total revenue of $73 million during the quarter. It was up by 125% between years. We have available seat kilometers up by 99%, and the TRASK up by 13%, that produced this increase from the previous years. Regarding the operation, we had 9 aircraft in April and May, and we got our 10th aircraft in operation from the beginning of June. Positive EBIT in the Q2, that was ahead of our expectations, and a great improvement from previous year, around $50 million improvement. Cash position $54.5. We had both positive cash from operation, and we have also increased inflow of cash due to strong forward bookings, and improved operating results during the quarter. As I mentioned before, we have no interest-bearing debts. During the quarter, the revenues increased by $39 million from the same quarter of 2022. At the same time, the operating expenses increased by $19 million, and the depreciation increased by $6 million from the same quarter 2022, and that was mainly driven by the extra aircraft we added both in the first quarter of 2023 and the Q2. All these resulted in a positive EBIT of $0.5 million, compared to -$14.4 million in last year. We are, of course, very proud of that results and the positive EBIT for the Q2 of the year. To the operating income, we had very similar total yield between years. We have to bear in mind, we had very different mix of passengers between years. We started our via operation in the Q2 of 2022, and we therefore had our main focus on leisure markets at that time. Taking that into account, we are very satisfied with the trend in the total yields during the quarter. We want to point out, especially the ancillary part of the total yield, that accounts for 28% of the total yield during the quarter. For the first time, we had ancillary per passenger, over $15 per passenger, and that is 24% quarter-on-quarter increase, and 18% year-on-year. As we have mentioned in our previous reports and presentations, we have been in an introduction phase of bundles. We are progressing our optimization of current products. We are driving improved ancillary yield, therefore. We are expecting the year-on-year improvement in ancillary yield to continue in the following quarters, due to the further optimization of these services, as well as introduction of new products and services. As you can see, the CASK, it's increasing from 4.7 to 5.3 cents from the Q2 of 2022. That is around 13% increase. Operating expenses, we had actual CASK, 3.5 US cents in the Q2 of 2023, and it is in line with our expectations. The total CASK decreased by 22% between years, and the actual CASK decreased by 12.5%, and that was mainly driven by the hub-and-spoke model in form. We had improved utilization of the company's fleet, and as well, we had the increasing number of seats and lower fuel price during the periods. The jet fuel represents 33% of the total operating cost. To summarize this, we are expecting similar actual CASK trends as last year in the next quarters, we are forecasting the actual CASK to be for the full year between 3.6 and 3.7 for the full year 2023. The size of the balance sheet has increased significantly from both from the year beginning and from the end of first quarter. The total increase is around $200 million, and it is mainly driven by the 4 new aircraft, two in the first quarter and two in the Q2, and of course, the seasonality of the business, and the that fact, we have a deferred income at $82.4 million at the end of Q2 of the year. We are expecting, and we know that the deferred income and the CASK position will decrease in next quarter. Therefore, we had the total assets of $528 million at the end of Q2, compared to $435 million, the end of first quarter. We had no external interesting debt, and the equity amounts to $14.5 million at the end of the quarter. The cash flow was strong during the quarter. The positive, it was positive from operation total $21 billion during the quarter. The starting point of the cash was $37.6 million, and the ending position of cash is $54.5 million. That consists of restricted cash of $8.5 million, and the cash of $46 million. As I've mentioned before, we are forecasting the cash position to decrease in next quarter because the working capital movements will be negative in the third quarter, but had been very positive in both in the first and Q2 of the year. The fuel price development, the fuel hedging, that's the status of our hedging. Just to remind you of the hedge strategy of the company, we have a hedge strategy to hedge up to 60% of estimated consumption for the next 3 months, up to 40% for the months 4 to 6, and up to 30% for the months 7 to 9. The prices were, yeah, I think if I can say, more stabilized or much more stable within the Q2 than in the first quarter. In recent days, the oil prices or fuel prices have been trending up. We are seeing that in, on the right side of this slide. To summarize the fuel hedge and for the next quarter, we have hedged 44% of our estimated consumption during the third quarter, on a price $911. For the fourth quarter, we have hedged 39% at the price $805. For the first quarter of 2024, we have hedged 23% of estimated consumption at a price $789. For the Q2 we have hedged only 4% at the price $850. The current spot yesterday was $864. That's all from me, and over to you again, Birgir. Okay. Thank you, Olafur. We go into the outlook for the coming months. We can see this year, we've had record-breaking months in sales, nearly every month. This is a graph that shows basically the number of or the quarter's total revenue. This translates into the strong cash position that Ólafur was talking about, and also is a good indicator of how the future booking status of the company and future kind of demand is shaping up. We only see very strong demand from our markets in the coming months. We can also see that, again, as I mentioned before, as we are increasing our, our capacity or, or the available seat kilometers in the market, we see a, a significantly stronger booking position from, in the coming months and quarters. In quarter 3, we are about 7 percentage points better than at the same time last year, and about 11 percentage points better, in the quarter 4 last year. Again, this is a good, good, good thing to keep in mind, that, that we are also seeing higher yields and higher revenue, better booking position, and a lot more capacity. We're taking this very steep growth, but we're doing it in a very sustainable and, and careful manner, although the numbers are quite... The growth numbers are quite high. We wanted also to show the difference in the prices and the yields in the VIA. There's a very strong demand from North America in the last months. This is a graph that shows the weekly sales of VIA tickets. Basically, the difference in the yields between last year, the gray dotted line, and this year, the red line. We are seeing significantly higher prices, and this is why we are also quite happy to see the growth and the ratio of both passengers being higher than we have seen before. It's basically about using the flexibility of the network and the business model to put capacity where the demand is at any given time. We have a few levers that we can pull to adjust ourselves to the market dynamics. We're always adding new destinations. Today, we announced flights to Frankfurt in Germany, a very important city in, of course, Europe, and very important via city or connecting point to the U.S. We will start those flights in December and the tickets are now already on sale. We also announced a couple of weeks ago, daily flights to Amsterdam Schiphol, another very important continental European hub. A new ski destination in Italy, in Verona, joining Salzburg and Geneva as our ski product. We are strengthening our position in Southern Europe: Lisbon, Barcelona. Athens has been going really well, and we are also adding a new destination, Fuerteventura in the winter. Going a bit technical also, we have to do that for the aviation geeks watching. We just got ETOPS approval, which, for those that haven't heard about this, means that we can now, after having invested in quite an extensive training program and some upgrades to our aircraft, we can fly for a longer period of time over open water. Basically, as you can see on the graph, we can take a shorter route to the US, meaning that we are saving fuel, we're cutting trip duration, and of course, the CO2 footprint will get smaller. This will save up to about or just over a half a million dollars per year, based on these assumptions. Something that is a great achievement for our technical and operations team to achieve this approval. Our outlook for the year is unchanged. We are forecasting positive operational profit or EBIT for the year. Our revenue will be around $280 million-$310 million. We will transport about 1.5-1.7 million passengers. We are assuming stable fuel prices, as Ólafur went over, and have been taking measures to protect ourselves against those fluctuations. Ex-fuel CASK, and our cost base, unit cost, 3.6-3.7 per kilometer. If we try to summarize in some takeaways, we see a massive turnaround between the Q2 last year and this year, about $50 million in turnaround. Positive cash flow, very healthy cash position, and a very strong booking status going forward. Our first half of the year, the results are in line with our forecast, basically. We are sticking to our outlook for the year. Our key KPIs are trending in a positive manner, despite a steep growth in the company. We're not losing control of the cost or anything like that, even though we are growing the company quite a lot. I also want to go back to the culture and the survey, the staff survey. You know, people are running, and they are happy. Last but not least, we are managing to keep our laser focus on the cost, because that is really the reason that we would be successful. If we keep our unit cost low, we can offer the most competitive prices in the market. Again, questions, ir@flyplay.com. We are really looking forward to meeting you again, when we present the Q3 results.
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