Cash is King

...”Fasten seat belt”

Libano Barroso

2

The economy downturn is a fact, however,

understanding the bounce back is key

Rapid market recovery

in 2010

Market recovery in

2011

Adjustment of operations in flown

hours and micromanagement of

non operating activities

Maintaining fleet might jeopardize

cash

ILLUSTRATIVE

?

Longer term recovery Mandatory fleet alteration

3

On our side, we are acting to prepare TAM for any

turbulence

Act in the balance sheet

Increase /

Preserve

liquidity

Postpone / reduce investments

Focus in the P&L defending liquidity

Initiatives

impacting cash

Initiatives

impacting cost

4

Meaning

1) Cross management

“Spending Matrix”

2) Focus on spending

development

Spending managed by more than one

person (Entities and packages)

3) Systematic monitoring Effort directed based on spending

detailed management:

• deviation cause analysis

• action plan to eliminate deviations

Spending detailed until realization

level

Sharing accountability is the main principle of the

initiatives…

Principle

5

... which have been identified and detailed at each

directory

Finance & IT

Commercial &

Planning

Operations

Technical

Knowledge &

People

MRO

Reviewing need/scope of IT projects

Treasury total focus on liquidity

Distribution costs

Control non-operating international costs

Efficiency gains

Crew overnight scheme evaluation

Strategic sourcing

Renegotiation with third parties

Conscious hiring

Reexamining benefits

Reduction of downtime per aircraft

Financing any required investment

Main priority

to executives

during

uncertainty:

regular

meetings

2x/week

NON EXHAUSTIVE