Good afternoon. Welcome to Novaturas' meeting with investors. I'm Emilija, an account manager at Nasdaq Vilnius, and I'm delighted to be the moderator for today's event. The agenda couldn't be simpler. We start with a presentation from the management, which will be followed by the Q&A session. As always, I encourage every one of you to ask questions during or after the presentation in the question box of your screen. With that said, I'm pleased to introduce today's presenter, the CEO of Novaturas, Audronė Keinytė. Mrs. Keinytė, please, the floor is yours. Good afternoon, dear investors, dear members of the financial community. I'm glad to be here today and to present the financial and other performance results of Novaturas Group of the first quarter of 2021. Together with me, there is also our Finance Director, Tomas Staškūnas, who will also assist me, especially with the Q&A session. I will start our presentation and overview of the first quarter results. To start with, I would like to highlight and to mention once again that the year of 2021 has happened with the strictest, I would say, the most strict lockdown restrictions throughout the world. Still, the pandemic situation is continuing and is not getting less. On the other hand, most of the sectors, including also the aviation and tourism sector, have adopted the new reality and made needed adaptations in terms of their business activity. Disregarding the strict measures implemented in all Europe and, I would say, most of the world, the tourism industry also has implemented certain measures that allowed tourism business activities to be restarted and ongoing. Safe travel has become realistic, has become available. There are a lot of certain requirements which are obligatory in order that people could travel. First of all, I would say in most European countries, and I would specifically talk more about the Baltic markets. In all Baltic markets, we have certain obligations which are inevitable. Such as, for example, PCR tests when you are traveling, before you are departing from the source market, also before you are coming back to your home. The tests have become today's reality. There are also other measures implemented, such as self-isolation after coming back from the destination. In each Baltic market, self-isolation requirements are quite different. Basically, it is more or less 10 days of self-isolation with certain exceptions. Of course, the aviation industry has adopted very strict health requirements in order to ensure that the movement, that the flights of the clients will be safe. This is being controlled very strictly. Finally, the destinations have also implemented a lot of needed health security requirements that also ensure that the clients would have safe holidays on the destinations. With all those factors of new reality, tourism business has become possible even during the most strict lockdown in the Baltics, and we are happy to say that we could restart the flight operations in February. Unfortunately, January, we did not have any operation except just some departure flights from the destinations after the Christmas and New Year periods. Then in the beginning of February, we have resumed our flights to Tenerife. To Tenerife, we have resumed our flights from Lithuania and Estonia in the beginning of February. From the beginning of March, we have resumed our flights to Tenerife from Latvia. The flights to Egypt have been opened as well from Lithuania and Estonia during the month of February. At the end of March, the flights to Egypt have also been opened from the Latvian market as well. This is the restart of the destinations. Actually, Tenerife and Egypt are usually and traditionally our main destinations during the winter season. We are happy to have been able to open those main destinations, though, of course, with much smaller capacities than usual. The capacities have been growing gradually. We have started with very few routes, and then we have increased our flight operations to Egypt. That's why the real pickup or recovery of the capacities to Egypt or to the destinations was much more noticed or was much more visible during the month of March. Finally, with this restart of the flight operations, we have reached the following results. In terms of the revenue or turnover, we have achieved EUR 5.6 million of turnover, which is still quite significantly lower compared to the previous year or the year of 2019. I would also like to note that during our presentation of this quarter, as well as during the presentations of the other quarters, we will always be comparing the figures and the achieved results with the year of 2020 and 2019. 2020, it is an exceptional year, whereas the comparison might not always be rational. Considering or talking about our turnover, EUR 5.6 million. Compared to 2020, it is 76% lower, and also it is even by 80% lower if compared with 2019 of the same period. On the other hand, our financial achievement in terms of EBITDA is significantly higher than during the first quarter of 2020 and even of 2019. In the first quarter of 2021, we have reached a positive EBITDA of EUR 615,000, while in 2020, the EBITDA was negative. It was recorded in EUR -190,000. In 2019, we have achieved EUR 83,000 of EBITDA. Finally, this is also reflected in the net profits. The net profit of the first quarter of 2021 is almost EUR 200,000. Last year we had, and also the year of 2019, both years we had net loss as well with a significant difference. The financial results. Analyzing those financial results, we will, of course, have a much more detailed explanation of the factors that have affected those financial results of the first quarter, but I would name the basic ones, the following ones. First of all, it is effective crisis management. We have been living in this mode since the start of the pandemic. From March 2020, we have entered into a very strict and effective crisis control, meaning cost optimization, meaning constant work and initiatives with our partners in order to review our obligations, in order to minimize the net cost of our services. Also, very strict cash flow control. Also searching for all possible tools to ensure the company's liquidity. Of course, seeking dialogue and solutions together with the states in Lithuania, Latvia, and Estonia. Another factor that influenced or affected very positive financial results of the first quarter is, I would say, leadership in the business decisions. We have taken on one hand, risky and brave, on the other hand, very much think of business decisions to open the flights to such destinations like Egypt, to open them during the lockdown period when the market is quite weak. There are very strict requirements for traveling between the countries. We are, of course, grateful to the market because we have realized that there is a market demand. In general, talking about the future, this, of course, brings us a lot of optimism. Most important that we were the first ones to open the flights to those destinations and especially to Egypt, whereas the other market players have followed later on. Finally, of course, this helped us to maintain our leadership position in the markets in terms of our communication, our position in front of our clients, in front of our partners. We build agencies. We have been actively working with all our distribution channels to ensure that our plans materialize with such results as we have them today. One more factor that also was very strong factor and brought or contributed a lot into those results is that, as mentioned already, that we have already realized that the market is becoming more active and there is a strong will, strong thirst to travel. Despite those strict requirements for traveling, there are people who are traveling, though the traveling tendencies are changing. This is what I will explain in more details later on with the next slides. This is more or less about overview. I would also like to mention the main events or significant facts that happened in the first quarter of 2021. First of all, we have managed and we have finished all the refunds processes for the trips that have been canceled during the pandemic. The refund processes have been finalized in the beginning of March of this year. Of course, we are very much grateful to our clients who trusted in us and who have trusted our sustainable decisions in order to ensure continuity of our company operation. We have also agreed on EUR 10 million investment in the company's bonds for a period of six years with the State Investment Management Agency in Lithuania. This is of course a very significant step and significant achievements, especially considering that the pandemic is continuing and we will have to live in those circumstances for a longer period than anybody could forecast. This is a huge, I would say, factor of trust in a company's liquidity and continuity of the business activity for a very long time. Now before we go into the details of our explanations and overview of more detailed performance indicators, I would also like to say a few words about the second quarter and the upcoming year. Unfortunately, due to the pandemic, which is still continuing, we are not able to provide a detailed forward-looking statement for the second quarter as well as for the upcoming year. We are still living with very short-term planning and daily monitoring of the situation and daily modification if needed of our planned capacities and revenues and margins, and any other actions that need to be taken due to constant changes. We have to admit that the situation is still very much dynamic. It is very much dynamic in our markets because we are depending a lot on the governmental decisions. The governmental decisions are being reviewed constantly and accordingly they can affect our business activity and our clients and our operation in general. As well, we are depending also on the governmental decisions of the destinations. Therefore, the planning, the forecast is very short term. It is in maximum quarterly and on the other hand, as mentioned that we are on a daily basis monitoring the situation and adapting our planning capacities and other actions according to the circumstances. Talking about the upcoming year, I would also like to say that there is much more optimism than previously of course. The vaccination processes are ongoing everywhere and though still it is not as fast as maybe we would like it to be, but they are in the process and the more vaccinated citizens we will have, the more market will appear for the tourism sector. As well, together with the vaccination and the general COVID control, there are initiatives which are extremely important for the tourism sector. Initiatives of European Union, I'm talking specifically about the Green Pass, which would allow, and which would bring a common system, one common union form system for all European Union countries. It would bring one system for traveling, and it would make traveling less bureaucratic, less fuss. Of course, if self-isolation requirements would be removed for vaccinated or the ones who already had COVID, or in general, if they would become softer, then again, the market activity or the potential would increase significantly. With all those, let's say factors and all those thoughts and quite positive movements within all our destinations and all our markets, we are entering bit by bit to the summer season in the quarter June. Talking about the summer season in April 2021, we have already opened our flights from all markets to Turkey, from Lithuania, Latvia, and Estonia, to Antalya Region specifically, which is the most important destination for the Baltic travelers in Turkey. In May, we are going to open Greece. Greece has already announced about its opening plans, and they also have announced already all the procedures needed to travel to the country. As well, they also announced about all the health protocols that the destinations had to acquire and to implement in order to be able to serve our travelers safely. Talking about Greece, I would also like to mention that even in 2020, during the start of the pandemic, Greece has managed to open their destinations from July. We have also operated the flights to Greece in 2020. This destination has already proven that they can adapt, and they can implement 100% the health safety measures and, let's say the incoming tourism can operate to all or majority of Greek destinations. In June of 2021, we are opening our flights to Bulgaria from all Baltic States. Bulgaria has already announced about its opening and its preparation to accept the travelers safely. Finally, as well, quite an exclusive product, and I would say very much missed product from all the travelers. It is long-haul destinations. Three destinations that also open their borders to international travelers, such as Bali in Indonesia, Seychelles, and Maldives, they are open already from the summer season, and therefore, we will also include those destinations into our product portfolio. Our travelers will be able to choose also the long-haul exotic destinations, which unfortunately, well except Maldives, but the rest of the long-haul destinations have been closed for the international travelers throughout all year of 2020. Talking about more specific plans or forecasts of the second quarter. As I have already mentioned, that it is still difficult to plan more than one month ahead. On the other hand, we are targeting around, or approximately 10,000 passengers per month during the second quarter. Once again, I would like to say that the restrictions are still on the highest level. Whenever the restrictions are getting less and whenever we see that the market potential can increase due to this, of course, that the capacities are being modified very much dynamically. Those numbers can be increased very easily. Profitability. Still, it is difficult to plan the second quarter sales profitability. Demand is still strongly affected by constantly changing restrictions applied to tourism sector. Therefore, we are not able to provide with forecast in terms of this. On the other hand, we are targeting a positive EBITDA for the second quarter. This is more or less the forward-looking statements that we can name at this moment. As I have mentioned that the situation is very much dynamic and I would say that the market or the demand of the market or the market capacity is still very hardly measurable due to constantly changing requirements, restrictions, and quite strict requirements. We have to continue operating and acting very much dynamically. Moving to the clear performance indicators or detailed performance indicators. I would try to have a quick overview of them. First of all, already mentioned that in terms of the turnover, unfortunately, we are still reporting quite a big drop compared to the previous years. Compared to the first quarter of 2020, we have a 71% decrease in terms of the number of passengers sold. During 2021, the first quarter, we have had almost 9,000 of the passengers. In terms of revenue, we have a decrease of 76% compared to the first quarter of 2020. Once again, I would like to highlight the numbers would be completely different if the restrictions and the requirements for traveling would be different. Now, the current requirements that we have, such as tests, for example, they increase the budgets of the trip, of the package. Second thing, the self-isolation is not acceptable, maybe for all the travelers who want and would be ready to travel. Talking about the product category, we have a significant change. As we see that in flight package tours, it has a 75% share in the total revenue. While previous year it was almost 85. There is a huge increase in the revenue of flight only. We have 25% compared to previous year when we had 14%. Yes, the traveling trends have changed significantly, especially during February and March. During the first quarter, we have recorded a huge number of travelers who are buying flight only. Tenerife was one of the destinations which gained a very high popularity among this. I would also say that the length of the trips has increased a lot. We have two weeks, three weeks, and even one month stay in the destination. Of course, the pandemic circumstances have made all such traveling trends as workation possible because many people were maybe leaving from here, from Lithuania, due to very strict restrictions here in Lithuania, and staying for a longer time in the destinations with warmer climates and less restrictions. Also being able to fulfill their professional, educational, or other duties remotely. That's, I would say, today's trends of the pandemic tourism, which are still partly continuing for the second quarter. I would say that it would maybe continue on a lower extent for the future, but there are, talking about, in general, changes in the traveling trends. We see that the clients are choosing more quality products. They are capable to pay more for their trips, and they are choosing longer trips. The two weeks package holiday became quite a popular product among our sales. Okay. If we look into the chart, which indicates the trends and the figures for each market, Lithuania, Latvia, and Estonia. In this chart, we have the pax sold by country. As we see that in Lithuania, well, traditionally, Lithuania was always the main market among our turnover or pax total numbers. Traditionally, it used to be around 50%. The first quarter is not an exception, and we have had around 5,000 clients from Lithuania, which is around 60% of the total group results. Sorry, 55%. Estonia has generated around 31% of the total result and Latvia, 13%. Well, Latvia usually had a bigger share in the total group's portfolio. This year, especially on the first quarter, Latvia's result was very much affected by quite, restrictions of the highest level for traveling. Latvian government implemented the strongest restrictions, and that also translated into lower figures among our group's revenue and pax sold. Latvia has reported the highest decrease compared to previous year. In Lithuania, for example, the number of passengers sold has decreased by 60% compared to 2020 first quarter. Now talking about the destinations. Well, not a big choice compared to our previous years, although in general, the winter product portfolio is always a little bit more narrow than the summer portfolio. On the other hand, well, as we see, Egypt has 61% of the total capacity revenue. Spain has 36%. Those are, well, as usual, the main destinations, and we have the biggest share during this year. What would have helped us to generate more capacity? It is skiing. Of course, skiing is gaining more and more popularity each year in all markets. Unfortunately, this year, due to pandemic, none of the ski destinations, none of our usual traditional ski destinations such as France, Italy, Andorra, has been opened for the international travelers. Therefore, we could not resume our flights there, unfortunately, but we are ready to do this next year with the double demand, I'm sure. The other destinations, such as long-haul destinations as well, were not available, most of them. The exotic or long-haul destinations were closed for the international travelers, except very few of them. For example, we could open or add Maldives to our product portfolio. As well, we could also add Dubai to our product portfolio. This is where those little figures are also coming from. We are moving to the distribution review, and again, we see changing trends. First of all, as we all know, the travel agencies are our main distribution channel, and we are focusing on this strongly. We have been working and continue working with our leading agencies and searching for cooperational solutions during this pandemic because it affected all of us. That's where our main production goes still. On the other hand, we have an increasing proportion of revenue from e-commerce. During the first quarter, the share of the e-commerce is 22%, compared to 17% in the first quarter of 2020. Well, this also is very much affected by the fact that we have a lot of flight-only bookings, which are coming from the GDS system, from the web. Therefore this new traveling trend is also reflected in the changes on new reality of the distribution channels. Talking about the profitability. Well, the first quarter of 2021 was marked by positive profitability ratios. We have a 36% drop in gross profits. We reached EUR 1.6 million of gross profits. Our EBITDA is positive, EUR 615,000. The net profit is also positive, almost EUR 200,000. Once again, I would like to say that I named them very positive in the context of the pandemics. Very positive profitability ratios are the result of very effective, very dynamic crisis management and crisis decisions, as well as the strong and brave leadership in the business decisions, including also the strict expenses control. Efficiency and productivity ratios. Load factor, profit per pax, and the tour package price. Load factor is more or less similar to the previous year, to the 2020 first quarter. The first quarter of 2020 has been already affected by the pandemic. Well, considering that our usual load factor is 97%, also we get used to a little bit lower load factor during the pandemic periods because of the COVID. Well, for example, we have also created and implemented a new product, which is called COVID Pause, which means that if the traveler has a COVID case before his trip, he can change his trip to the future and that, of course, causes that we might have less or lower load factor on the flights. On the other hand, once again, as I have mentioned, in general, during the pandemic, the traveling trends are changing and load factors as well due to already mentioned reasons. The profit per pax. Profit per pax has increased significantly compared to the previous years. It is affected also by several reasons. We have the clients are booking better products. The clients are booking longer stays. We have managed to decrease our net costs for the services of the destinations, and this has reflected in the very positive, I would say exceptionally positive profit per pax during the first quarter. I would also like to say that since the situation is changing very much dynamically, it cannot be taken as indicator for the next quarters. This is a very exceptional, I would say, positive and high profit per pax. Average package tour price has increased by not that much significantly. On the other hand, the average of the tour package price has been affected by the fact that we have a lot of flight-only bookings. In general, as mentioned before, the clients are booking better and higher category and more expensive hotels. On the other hand, there is a big part of the clients which are booking flight only, which is a lower priced product. Therefore, the average package tour price does not have such a big increase compared to previous year. If you look only to the hotel package average price, we would see a much more significant difference. Finally, we are coming to the OpEx, to the operational expenses. While during my presentation, I have mentioned this not only once, that we have been following very strict operational costs control and optimization. This has been done throughout 2020, and we have continued doing so for the 2021. During January and February, it was still continuing on the same level. Of course, once we are entering the summer period, we have to have more resources. This is being, let's say, modified and brought to another level. In general, our OpEx have decreased in total by 63% compared to the first quarter of 2020 and by 73% compared to the same period of 2019. If we would exclude one-off expenses and commission, it would be 52% compared to previous year and 62% compared to 2019. Once again, I would like to say that, for us, having the asset-light business model, having very strong engagement of the management into daily monitoring of the crisis situation and making needed decisions, the cost optimization, efficiency increase needed reorganizations have brought us this result that we are having now. Of course, once again, for the second quarter, we are already on a different level of our resources because we are having bigger capacities and we will be gradually increasing them. Following very much the market potential, the restrictions, the governmental decisions, and acting proactively in order to be, of course, the first ones on the market and to strengthen our leadership position. To summarize, I just would like to say that the pandemic is still not over. Of course, we are still living in those very challenging circumstances. We, of course, cannot relax. On the other hand, we have much more optimism. Much more optimism because of the fact, as mentioned before, vaccination, insurances, health insurances, including COVID cases, all the health and health safety measures implemented in the destinations, releasing restrictions from the governments, and of course, because of the clients, the market, which is becoming more and more hungry for traveling. This is very much visible, and of course we are counting on this very much. The first quarter results are very much satisfying, and we are very much, of course, grateful to our clients and the investors for the trust, to our employees for the solidarity, for the loyalty, for the professionalism, and to our partners for support. Thank you very much for your today's attention. We will be happy now to answer any questions you might have. Thank you, Mrs. Keinytė, for the comprehensive presentation. As you have said, now we will proceed with the questions. Before that, I would like to remind everyone that you can send in your questions in the question box of your screen. Let's proceed. The first question is as follows. From this year, one of the biggest tour operator, Coral Travel, started its business in Lithuania. As you know, Lithuanians customers don't have loyalty to trademark. Coral Travel offered flights with new comfortable aircrafts, free catering on flights, good prices of tours. Your product don't have this service, so it is possible you will lose market share. What is your plans for offering better services and prices? Thank you. First of all, I would like to say that the strength or the, let's say, the success of the tour operator is defined by a lot of factors, including the ones mentioned in this question or statement. There are a lot of factors that help us to reach the leadership position and to maintain this position in the Baltic markets for many years. Those factors could be the following. This is the product portfolio, including the destinations, the number of the destinations, the diversity of the destinations, including the hotels and other accommodation types, the resorts. Number of those hotels and accommodation types and diversity. As well, that is the quality of the services, quality of the services before the trip, quality of the services during the trip, the native-speaking language services on the destinations. This is the prices and the position in the destinations and in the hotels. That is the long-term practice and experience with the distribution channels. Of course, it takes time to reach a certain strength within different distribution channels. Diversity of the distribution channels is also one of the very important factors of the success for the tour operator. Finally, know-how of the Baltic markets and very strong concentration on the Baltic market and the needs of the Baltic market clients. We are Baltic market tour operators. We produce and we do the product that is the most suitable, the most needed for the travelers of the Baltic markets. We are very easily due to our asset-light business model, due to very effective and very light organizational structure. We are very flexible in terms of the modifications of the products and any other, let's say, actions within all the capacities in the markets. This position reached has taken time and with all the experience gained during all those years, of course, that we will maintain, and we will do our utmost to maintain our leadership position. To maintain the trust with our clients, with our partners, and to continue growing for the future years, especially whenever the pandemic is over. The biggest obstacle of the proper and usual business operation currently is the pandemic. As well, I would like to say that during all those years of our business activity, we have had a lot of different competitors coming to the market. Some of them survived, some of them no. We have also had the examples of the competitors entering that are also parts of the big groups. Till now, we do not have any significant results of those competitors and the ones that entered in the last years. Therefore, a name or being a part of a big group does not necessarily mean very high or, let's say, sudden and significant results. Finally, we are used to the competition. It is normal in the markets to have the competition and the competition just, I would say, is also very useful and brings benefit to the clients. It can improve the services, it can bring more choice and more variety to the clients, and that's why we are ready to compete in the market whatever it is. Thank you very much for your answer. We have received another question related to the Coral Travel, your competitor, which is as following. 80% of your sales go via travel agencies. During the pandemic, travel agencies question you as a reliable partner. By the way, Coral Travel offered for travel agencies higher commission than your company. Obviously, travel agencies will reduce sales of your product. Sales are expected to fall by 20%-30%. What actions do you plan to take? How do you plan to restore your image as a reliable partner? Thank you. Yes, of course, not only during this presentation, but during many other presentations, always our business model is very much based and counted on the travel agencies. We assume and we know that. We always are very proud with our cooperation with the travel agencies. We have a lot of long-term partners, some of them our key partners, where we have a very strong, trustful cooperation throughout the years. The commission policy or any other commercial conditions, that's our Novaturas Group general, let's say B2B or retail agencies commercial policy that I'm not capable now to comment comparing to other competitors. We are following our commercial policy in terms of the retail agencies, of course, ensuring that our sales are not dropping. They are increasing, on the contrary. Finally, the business models or the business model Novaturas Group is operating and already proved to be a sustainable business model. Therefore, we are always maneuvering between, let's say, distribution cost control, between the margins, between the net costs and also the attractive or the most competitive selling prices to the customer. That would be the answer, most probably. Thank you very much. I would like to remind every one of you that you are free to send your questions in the question box of your screen. Let's proceed. The third question is as following: The state has provided EUR 18.5 million in support to your company in the form of loans, subsidies, and guarantees. Granting the support may have violated the Competition Act, so there is a possibility that you will have to return this support. Do you have a plan for how to proceed in this case? Thank you. Hello to everybody. I would start from the point that most of mentioned amount we have received as a group, as a company, are in the loans, which will be returned. All those loans are also having some interest payments. We have received very little amount of support or subsidies from the government and all these support measures were according to the approved programs by the local governments. All these programs were approved with European Commission, we strongly believe that all the necessary law requirements were always taken into account approving those programs. We do not have any doubt that with increasing volumes of operation, we will be able to repay all those loans. Also pay the interest, which is payable according to those loans. I don't see any significant risk. Thank you very much for your answer. We have one more question, which is: What are the forecasts for the company's EBITDA and net income for 2021, 2022? Thank you. The company has already started to giving forecasts in the very beginning of 2020, when the pandemic struck all the world. We have taken back the forecast for 2020 because of the very dynamically changing situation. Currently, we are still in the very dynamically changing situation, and we are not ready yet to provide longer term forecasts. As soon as the situation will calm down and will be more predictable, we will again planning to forecast our future operational results. Thank you very much for your answer. I see that all the questions are answered. On behalf of Nasdaq Vilnius, thank you, everyone. It was my pleasure being with you today. Recording of the presentation will be available in the Nasdaq Baltic YouTube channel. Dear management, thank you for the presentation and a very interesting Q&A session. Have a good day, everyone. Goodbye.