Gol Linhas Aéreas Inteligentes (GOLL54) Investor presentation summary

Events leading to restructuring

• Severe liquidity pressures from COVID-19, Boeing delivery delays, and lack of engine maintenance financing led to a Chapter 11 filing in January 2024.

• The pandemic caused a 90% reduction in daily flights, erasing ~R$20B in expected revenues, with no state aid from the Brazilian government.

• Macroeconomic headwinds included a 20% devaluation of the Brazilian Real, rising fuel costs, and increased borrowing rates.

• Deferred engine maintenance and liquidity preservation led to operational disruptions and a backlog of unserviceable engines.

• Out-of-court restructuring attempts included financing from Abra Group and lessor concessions, but a comprehensive restructuring was needed.

Restructuring achievements and strategy

• Secured $1B in DIP financing, $1.1B in lessor concessions, and support from Brazilian banks for working capital.

• Implemented a $181M annual profit improvement program and reached a plan support agreement to reduce up to $1.7B in funded debt.

• Finalized a tax agreement reducing liabilities by $750M and generating $184M in liquidity through 2029.

• Negotiated significant concessions and liquidity support from Boeing.

• Restructuring supports transition to a next-generation, fuel-efficient fleet and strengthens network strategy in Brazil’s largest cities.

Financial forecast and capital structure

• Recurring EBITDA projected to grow from R$4.3B in FY23 to R$11.6B in FY29, with margins rising from 24.5% to 33.6%.

• Net leverage expected to fall from 6.1x at exit to 2.7x by YE27 and 1.9x by YE29.

• Exit capital structure includes $1.87B in new debt and equity financing, with a first lien on key assets and a second lien for take-back debt.

• Liquidity is forecasted to improve substantially, with levels ranging from ~16% to 26% of LTM revenues.

• Plan support agreement provides for conversion of debt to equity, new take-back notes, and equity allocations based on achievement of Boeing and tax agreements.