International Consolidated Airlines Group S.A.

Good morning, and welcome to IHS 2020 Results Call. It's been a difficult year, so first of all, I hope that all of you and your families are well. I'm joined here today by Steve Gannick, Financial Officer, and we also have the office here with us. We have Sean Doyle and Ken Belton in the office in London. Javier Sánchez, Marcos and Sabini are on the line. Donald Moriarty in Dublin, Adam Daniels in London. Lynn is here today in her current role as CEO of IAG Cargo, but announced yesterday that taking over from Donald as CEO of Aer Lingus from six office roles. So first of all, I want to thank Donald for the excellent job he has done in the most difficult situation that we have. And I want to say congratulations to Lynn. They will be available if you have any specific questions later. COVID-19 has consumed all of us in the last 12 months. And almost everything we have done since February last year has been in response to the pandemic. Our top priority has been and continues to be the health and safety of our customers and our employees. I would like to thank all our people across the group for their commitment, resilience, and the flexibility to this crisis. The year started off well, with passenger demand rising by 5% up to the end of February, even while the pandemic was surging in China, causing VA and Iberia to cancel their China flights from the end of January.

Between March and December, passenger demand fell by an unprecedented 87% due to the travel restrictions and quarantine requirements imposed by governments around the world.

Non-passenger businesses performed much better than passenger business. It was a record year for cargo in terms of revenue, and we conducted over 4,000 cargo-only flights. All the revenue streams, such as maintenance and loyalty, declined last year, but they were more resilient than the passenger business. We responded quickly and decisively to the pandemic as shown on this slide. I won't go into all the actions that you can see, but many of them will be covered by Steve in his presentation, but I want to select a few highlights. Since April, we have more than halved cash operating expenses, and we have reduced capacity. We have undertaken labor restructuring, and we have seen more than 10,000 people leaving the business, and we now have more flexible contracts. Iberian Welling has benefited from government furlough schemes. Finally, we raised significant amounts of funding in the public capital market since the pandemic started, including a successful 2.7 billion euros rights issue. And as you know, we announced on Monday that we had finalized 2.2 billion euros of loans guaranteed by UK export finance. Our liquidity is currently around 10.3 billion euros, including the UK loan, which is more than before the pandemic started. But we have not just focused on COVID-19 over the last 12 months. We have taken significant actions to enhance our long-term strategic position, many of which are listed here in this slide. In terms of the customer proposition, our overall NPS improved by 10.9 points to 36.7. I know that it has not been a normal year with much reduced passenger volume, but we have been acknowledged for our COVID health and safety. BA and Iberia achieved a SkyTrack four-star rating for COVID safety. BA has rolled out its Cloud World Suite to 28 long-haul aircraft, demonstrating that we remain committed to investing in our customer proposition. Staying on the customer subject, I'm pleased to announce that IAG today has reached a long-term agreement with Amadeus to distribute all our fare content via the latest new distribution capability, NDC technology. This is unique because all of our airlines are covered by the agreement. and it is the first agreement of its kind with a GDS based on NDC standards. It demonstrates that the next phase of our digital distribution strategy that we launched in 2007 is working. The benefits to IAG will be significant distribution cost savings, increased revenue, increased market share, and an improved customer experience. IAG loyalty remained relevant in 2020 despite the lack of flying. Members continue to earn and redeem obvious points on non-travel partners. IAG loyalty renewed its multi-year agreement with American Express with a £750 million cash advance. New partnerships have been established with the Banco de Santander in Spain, Sainsbury and Nectar in the UK, and Barclays Premier Banking. And we expect more partnerships to be announced in 2021. IAG Tech has maintained its investment in cybersecurity and improving the stability and performance of core systems. We have continued to work on investments to achieve our net zero emissions goal by 2050. VeloCis received a planning approval to construct a waste to jet fuel plan in the UK that is expected to produce sustainable aviation fuel from 2025. We also made an investment in LanzaJet, another sustainable aviation fuel supplier. And finally, we started a partnership with VeroAvia who is developing hydrogen propulsion. Iberia has renegotiated its planned acquisition of Air Europa, reducing the purchase price from 1 billion euros to 500 million euros, and has also agreed to defer payment until six years after completion of the transaction, which is expected to be later this year. On Brexit, we implemented plans at the end of December to ensure that our EU airlines continue to comply with EU ownership and control rules, and we have secure flying rights. And then I hand over to Steve for your part.