Icelandair Group — Capital/Financing Update 2020

Sep 4, 2020

Icelandair Group hf.: Updated Information Memorandum

Icelandair Group hf.: Updated Information Memorandum

Attached is the updated Information Memorandum (“IM”) regarding the upcoming offering of new shares in Icelandair Group. The IM was initially published on 18 August 2020. A summary of main changes and additions is listed below:

• Answers to questions from investors added in Appendix D.
• Page 32: Forecasted RASK for the period 2020 – 2024 included intercompany transactions. This has now been amended in order to better reflect passenger revenues. This does not affect actual numbers for the historical period 2015 – 2019 and has no impact on forecasted EBIT and cash flow for Icelandair.
• Page 51: Projected liquidity position updated to reflect the final impact of the governmental response package and the current position of flight refunds and vouchers. The affected balance sheet and liquidity items have been updated. The operational forecast is unchanged.
• Pages 52, 55 and 70: Updated to reflect changes on page 51.
• Page 56: The minimum subscription amount in order Book B has been set to ISK 100 thousand. Underwriting of ISK 6 billion agreed as previously announced.
• Page 66: 2019 figures for EBT, income tax and net income included figures for Icelandair Hotels. This has been corrected. Figures for income tax in 2020 have also been updated.
• Page 97: Updated table showing flown trips and load factor.

Icelandair Group will publish a Prospectus within the next few days which, among other outlines the timeline, execution and terms of the offering. A shareholders’ meeting will be held on 9 September 2020 at 4 PM at Hilton Reykjavik Nordica where it will be proposed to grant the Company’s Board of Directors authorization to increase the Company’s share capital by up to ISK 23 billion, and issue warrants with subscription rights for up to 5.75 billion shares.

Contact information:

Investors: Iris Hulda Thorisdottir, Director Investor Relations. E-mail: iris@icelandairgroup.is[

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