Full year results Analyst & Investor Analyst & Investor - - PowerPoint PPT Presentation

Full year results Analyst & Investor Analyst & Investor presentation presentation

Tuesday 15 November 2011 Tuesday 15 November 2011

1

1

Introduction

Carolyn McCall Chi f E ti Chief Executive

2

Agenda

• 1. Review of F’11
• 2. Financial review
• 3. Looking forward
• 3

Operational performance fixed

• First wave focus

On Time Perfor On Time Performance mance LGW and Networ LGW and Network

70% 80% 90%

• Firebreaks in schedule
• Proactive disruption

30% 40% 50% 60% 70%

• Proactive disruption

management I d t db

LGW Network

• Improved standby

levels

Flightstats. Flightstats.com com 12 months to September 12 months to September

• Better communication

and engagement

4 Note: No independent data for OTP available for Ryanair since May-11

Customer satisfaction improved

Summer 2010 vs. 2011

• Overall satisfaction quarter on quarter has increased from 66% to 80%
• Satisfaction with on time performance has increased from 60% to 80%
• Increase in likelihood to recommend up from 74% to 83%

Overall satisfaction

• n this occasion

Likelihood to recommend Satisfaction with punctuality

5 Source: GfK customer satisfaction tracking. Base sizes : Qtr. 3 2010: 20,624 Qtr. 3 2011: 28,511

Robust

• peration

Customer satisfaction Returns to share holders Our Our people – people – driving performance driving performance d d d d li i h an and deli live vering t ng the e str strategy tegy Cost reduction Marketing & CRM Revenue Revenue growth

6

Finance review

Chris Kennedy Chief Financial Officer icer

7

Summary

• Revenue improvement driven by:
• Improvements in revenue

£ per £ per seat seat

management

• Increase in customer satisfaction

St H2 ill f

0.41 0.88 0.00 3.97

• Strong H2 ancillary performance
• Capacity investments maturing
• Fuel unit costs up £100m

3.36 0.07 1.80 1.59

2011 PBT per seat Ot Other co costs Di Disruption Cr Crew ew Fuel (inc curre rrency i t) R e R ev enue Currency imp imp act ( f l) 2010 PBT per seat *

• Fuel unit costs up £100m
• Planned crew investment has

delivered operational robustness

impact) (exc fuel)

and lower disruption costs

• Cost savings in ground handling

and maintenance but increases at and maintenance but increases at regulated airports

• ROCE up 3.9ppt to 12.7%

8 * 2010 profit before tax per seat excludes the impact of £27m cost of volcanic disruption and a £7m loss on the disposal of 4 A321 aircraft

Financial results

£m £m F ’11 F ’11 F ’10 ’10 Change hange

T

• tal revenue

3,452 2,973 16.1% Fuel (917) (733) (25.0)% Operating costs excluding fuel * (2,067) (1,851) (11.7)% EBITDAR 468 389 20.4% Ownership costs * (220) (201) (6.1)% Profit before tax (underlying) * 248 188 31.5% Underlying cost adjustments * (34) Underlying cost adjustments

• (34)
• Profit before tax (reported)

248 154 60.8% T ax charge (23) (33) 29.4% Profit after tax 225 121 86.0% PBT margin 7.2% 6.3% 0.9 ppt Earnings per share 52.5p 28.4p 84.9% Dividend per share 45.4p

• Return on capital employed

12 7% 8 8% 3 9 ppt

9

Return on capital employed 12.7% 8.8% 3.9 ppt

* Underlying cost adjustments: F’10 operating costs exclude £27m cost of volcanic disruption F’10 ownership costs exclude £7m loss on the disposal of 4 A321 aircraft

Strong expansion in second half margins

£m £m F ’11 F ’11 F ’10 ’10 Change hange Total revenue 2,186 1,802 21.3% Fuel (534) (428) (24.8)% Operating costs* (1,139) (1,008) (12.9)% EBITDAR* 513 366 40 2% EBITDAR* 513 366 40.2% Finance and ownership* (112) (99) (13.2)% Pre-tax profit* 401 267 50.2% Seats - m 34.4 30.8 11.8% Fuel cost per seat - £ 15.53 13.91 (1.62) Pre-tax profit per seat* - £ 11.66 8.68 2.98

10 10

* * Und Underl rlying number number -

• operatin

rating costs ex costs ex fuel fuel exclud exclude the e the £27m £27m of

• f ad

additional cost ditional cost incurr incurred d due e to to volcanic d volcanic disru sruption tion. . Financ Finance e and and

• wnersh
• wnership excludes

p excludes a a £7m £7m loss-on loss-on-disposal of l of 4 4 aircra aircraft ft in in 2010. 2010.

Currency impact

Curr Currency split ency split – t – total c costs Curr Currency split ency split – total r

• tal revenue

nue

35% 35% Euro US Dollar 47% Sterling Euro 44% 35% 1% 35% 7% Swiss Franc 2% Other 5% Sterling 1% 24% Other Swiss Franc Swiss Franc Sterling

F F ‘11 ‘11 curr currency impact favour ency impact favourable / / (adv (adver erse) se)

CHF CHF EUR UR USD USD Revenue 24

• Fuel
• (17)

Costs excluding fuel (21)

• (8)

11 11

Improved revenue performance

£m £m F ’11 F ’11 F ’10 ’10 Change hange

Passengers (m) 54.5 48.8 11.8% Load factor (%) 87.3% 87.0% 0.3ppt Seats (m) 62.5 56.0 11.5% Average sector length (km) 1,110 1,123 (1.2)% g g ( ) , , ( ) T

• tal revenue (£m)

3,452 2,973 16.1% T

• tal revenue per seat (£)

55.27 53.07 4.1% @ constant currency (£) 54 87 53 07 3 4% @ constant currency (£) 54.87 53.07 3.4%

Revenue per seat at constant currency Capacity growth 9 4% 11.5% 17.1% 14.6% 7 7% 86.3% 91.2% 87.3% 84.1% 86.7% y g Load factor 3.4% 9.4% 4.6%

• 4.5%

0.3% 7.3% 7.7% 12 12

Q3’11 Q4’11 F’11 Q2’11 Q1’11

Passenger and ancillary revenues

£m £m F ’11 F ’11 F ’10 ’10 Change hange

Passenger revenue (net of passenger taxes) (£m) 2,732 2,402 13.8% Gross passenger revenue per seat (£) 50.01 48.09 4.0% Net passenger revenue per seat (£) 43.75 42.87 2.1% Ancillary revenue incl. checked bag (£m) 719 571 25.9% y g ( ) Ancillary revenue per seat (£) 11.52 10.20 12.9%

£ change in ancill £ change in ancillar ary y revenue per nue per seat seat vs.

• vs. F

F ‘10 ‘10

Bag charging 0.18 Fees and charges 1.27 Partner and in–flight revenues (0.13) T

• tal

1.32

Str Strong performance in

• ng performance in the

the UK UK and and impr improving performance in

• ving performance in Europe

pe

13 13

Seat and non-seat revenue

£ per £ per seat seat F ’11 F ’11 F ’10 ’10 Change hange

Gross seat revenue 60.51 57.14 5.9% Passenger taxes (6.26) (5.22) (19.8)% Net seat revenue 54.25 51.92 4.5% Non-seat revenue 1.02 1.15 (11.3)% ( ) T

• tal revenue

55.27 53.07 4.1%

Seat r Seat revenue nue Ticket price Non-seat r Non-seat revenue nue Partner deals, e.g. Europcar Booking fees Checked bags In-flight Sales Insurance Speedy boarding

14 14

Impact of fuel

F’11 F’10 Change B/(W) F l $ i Fuel $ per metric tonne Market rate 959 688 (271) Effective price 818 732 (86) US dollar rate Market rate 1 61 1 55 6 cents Market rate 1.61 1.55 6 cents Effective price 1.61 1.64 (3 cents) Actual cost of fuel £ per metric tonne 508 445 (63)

£63 £63 t i t i l t £100 £100 t £1 £1 59 59 t £63 £63 per per me metric c tonne

• nne incr

ncrease equa ase equal to

• £100

£100m cos m cost or

• r £1

£1.59 59 per per sea seat, , volume impact is volume impact is additional £84m additional £84m

15 15

Fuel and foreign exchange hedging

Fuel r el requir quiremen ement US S dollar dollar requir quiremen ement Eu Euro ro s surplus

Half year ending 31 March 2012 80% at $950/tonne 80% at $1.60/£ 76% at €1.13/£ Full year ending 30 September 2012 73% at $956/tonne 69% at $1.59/£ 71% at €1.13/£ Full year ending 30 September 2013 48% at $979/tonne 46% at $1.61/£ 50% at €1.14/£

Sensitivities:

• $10 movement per metric tonne impacts F’12 PBT by $4.7m

$ b

• One cent movement in £/$ impacts F’12 PBT by £2.6m

16 16

ETS Exposure

• Granted a level of free permits annually
• Free permits calculation based on 2010 Revenue Tonne Kilometres

Free permits calculation based on 2010 Revenue Tonne Kilometres (RTKs) and the EU benchmark

RTK (‘000s) * Benchmark (CO2 / RTK) = Free CO2 (metric tonnes)

• Exposure driven by excess requirement and the carbon price

RTK ( 000s) Benchmark (CO2 / RTK) Free CO2 (metric tonnes) 5.8 * 0.6797 = 4.0

• Exposure driven by excess requirement and the carbon price
• Estimate need to buy €16m (£14m) ETS credits in calendar 2012*

ET ETS exposur S exposure Carbo Carbon (Metric (Metric tonnes)

• nnes)

Va Value* (E (Eur uro m)

Free permits 4.0 43 Requirement 5.4 59 Exposure 1.4 16

17 17

*Ass

Assuming €10. €10.90 per per tonne of tonne of carbo carbon; and £/€ and £/€ 1.15 .15 excha exchange rate rate

Cost per seat excluding fuel - key drivers

cost cost in increase se shown shown as as “+”; cos “+”; cost decr decrease as ase as a a “-” “-”

Mov Movemen ement F‘10 F‘10 Cost per Cost per seat seat (£) £) Report eported* ed** Constan Constant curr curren ency cy Driv Drivers ers ve versus F‘10 F‘10 seat seat (£) (£) curr curren ency cy

Ground Operations 14.79 +3.0% +1.5% Significant regulated price increases at LGW and AENA airports in Spain Offset by ground handling and savings in non-regulated airports Crew 6.51 +8.6% +6.9% Planned increase in standby levels Pay increase averaging 2.75% Navigation 4 56 0 2% 0 7% Regulated price increases offset by Navigation 4.56

• 0.2%
• 0.7%

Regulated price increases offset by changes in route mix Maintenance 2.86

• 9.3%
• 9.8%

Cost reduction initiatives more than

• ffset supplier price increases

Overhead * 4.31

• 13.1%
• 12.8%

46% reduction in disrupted sectors (excluding volcanic eruption in 2010) Brand licence 0.06 nm nm Ownership * 3.53

• 1.4%
• 4.9%

Further exits of expensive leased Ownership 3.53 1.4% 4.9% Further exits of expensive leased Boeing/GB aircraft Continuing benefit from variable rate leases priced off USD LIBOR

T

• tal CPS excluding fuel*

36 62 0 0%

• 1 3%

Cost reduction

18 18 * Underlyi * Underlying cost adjus cost adjustme ments: s: F’10 overhead costs F’10 overhead costs exclude exclude £27 £27m cost cost of volca

• f volcanic

ic disru disruptio tion F’10 owners F’10 ownership p costs costs exclude £7m exclude £7m loss loss on the dispo

• n the disposal

l of

• f 4

4 A321 A321 aircraft aircraft

T

• tal CPS excluding fuel

36.62 0.0% 1.3% Cost reduction

Fleet profile

Sep ‘11 Sep ‘11 Sep ‘10 ep ‘10 Change hange

A319 (operating lease) 56 46 10 A319 (operating lease) 56 46 10 A319 (finance lease) 6 6

• A319 (owned)

105 107 (2) A320 (operating lease) 6 6

• A320 (finance lease)

5 2 3 A320 (owned) 24 15 9 Main fleet 202 182 20 Sub-fleet (Boeing 737 and GB Airways) 2 14 (12) T

• tal fleet

204 196 8 O d fi l 69% 68% 1% Owned or finance lease 69% 68% 1% Operating lease 31% 32% (1)%

19 19

Flexibility in fleet planning

• easyJet has a high degree of

flexibility in its fleet planning

270

flexibility in its fleet planning

• Fleet capped at 204 aircraft
• Young fleet intrinsic to business

d l

241 251 259 240 250 260

Max fleet

model

• Maximise utilisation
• Minimise maintenance costs

and fuel burn

214 217 221 227 220 230 240 Fleet Count

214

and fuel burn

• Evaluating options for next

generation of aircraft

Will d i i

206 200 200 197 197 190 200 210

Min fleet 204

• Will update progress at interim

results

180

FY11 H2 FY12 H1 FY12 H2 FY13 H1 FY13 H2 FY14 H1 FY14 H2 FY15 H1 FY15 H2

20 20

Capital cash flow including overhauls

New capacity deliveries Replacement deliveries PDP Payments Maintenance/ESV Capex¹ Disposal of ex-GB aircraft

193 193 64 64 150 150 $742m $773m $586m 248 248 193 193 72 72 150 150 200 200 Total Total $586m 303 303 421 421 248 248 171 171 101 101 Aircraft Capex: 796m Total Aircraft Capex: 623m Total Aircraft Capex: 182 182 303 303 114 114 (118) (118) 386m

FY2011 FY2012 FY2013

21 21

Source: Source: easy easyJet manage Jet management p plan an

• Capex i

x is shown p pre-financ nancing g – curre rent nt plan is is to to maintain maintain 70%/30% owned 70%/30% owned/leas leased mix mix

• $118

$118 sales procee sales proceeds ds for for dispos disposals of

• f A321’s

A321’s

Continuing cash flow generation

£m

2011 proforma Proposed special dividend Proposed

• rdinary

dividend 2011* Capex Financing Other Working capital Dep’n and amort’n Operating profit 2010*

22 22 * * Inc Includes es money market depos money market deposits ts but but excludes excludes restricted cash restricted cash

Strong balance sheet

£m Sep ‘11 Sep ‘10

Property, plant and equipment 2,149 1,928 Goodwill and other intangible assets 451 452 Other assets 465 451 Liabilities (excluding debt) (1,463) (1,290) Net Assets 1,602 1,541 Debt 1 300 1 212 Debt 1,300 1,212 Cash and money market deposits (1,400) (1,172) Net debt / (cash) (100) 40 Shareholders’ equity 1,702 1,501 Capital employed 1,602 1,541 Gearing* 28% 33%**

23 23

*Ge *Gearing defi defined as (de as (debt + + 7 7 x x annua annual le lease pay payments ts – cash) ash) divi divided by (sh by (shareholders’ equi equity + + debt debt +7 +7 x x annu annual lease p ase paymen ents – – cash) **Se **Sep ‘10 ‘10 gea gearing rest restated for for current yea current year meth methodology (i.e (i.e. . exclu excluding restr restricte cted cash) cash)

Business review Business review – Looking Looking forward forward Looking Looking forward forward

Carolyn McCall Carolyn McCall Chief Executive

24

24

Focus on return on capital employed

• F’11 achieved 12.7% ROCE despite £100m

increase in unit fuel cost 12% ROCE increase in unit fuel cost

• F’12 headwinds from higher fuel

12% ROCE through the 5 year planning cycle L t L t i

• Driving revenue

Lev evers ers to

• impr

mprove margins margins

• Smart cost management
• Returns to shareholders
• New framework for capital allocation
• Flexibility in fleet planning

Capital discip Capital discipline line

25 25

LEVERS LEVERS TO TO IMPROVE IMPROVE LEVERS LEVERS TO TO IMPROVE IMPROVE MARGINS MARGINS MARGINS MARGINS

26

Passengers travelling on business

Where are we?

• Sales teams in place
• FlexiFare launched
• Deals with GDS contracts and TMC’s
• Pipeline of B2Bdeals
• Promotional and advertising campaign

rolling out rolling out

27 27

Passengers travelling on business

Our philosophy

Be flexibl Be flexible Acces Access the the best best fares fares On time On time

make it make it eas easy

From From any any channel nnel At the At the right right time time

y keep it keep it simpl simple

Sp Speed ed through through the he Fly to Fly to the the h l h l through through the the airpo airport rig right p t place ace 28 28

Passengers travelling on business

B i i

How we’ll track our progress

• Business passenger penetration
• Revenue uplift from passengers

travelling on business travelling on business

• Incremental margin

KPI KPI FY11 Y11 FY15 Y15 Business passenger between penetration as % of easyJet seats sold 18% between 20% & 24% RPS uplift from Business passengers 20% between 25% & 30% Business passengers 25% & 30% Incremental margin £0m £100m

29 29

Passengers travelling on leisure

Building on our strength in leisure

• New leisure route development

Impro ed in flight range

• Improved in-flight range
• Family Friendly
• easyJet Holidays (UK)

30 30

Driving revenue through easyJet.com and CRM

Rollout November 2011 to April 2012

• Targeted lead banners on
• Targeted lead banners on

easyJet.com

• Mobile apps to be rolled out H1
• Ancillary up-sell post-booking
• Improved targeting

p g g

• By customer type
• By route searched
• By campaign
• By GEO IP

31 31

Driving revenue through targeted campaign

Much more likely A little more likely

Europe by easyJet campaign is delivering

10 35 Old 23 36 20 40 60 80 100 New

Impact of advertising on likelihood to book with easyJet

Custom

• mers describing

cribing themselv elves as ‘muc much mor more likel likely Cust Customer ers describing cribing themselv themselves es as as muc much mor more lik likely to buy fr to buy from easyJet’ has

• m easyJet’ has in

increase sed by by near nearly 250%. 250%.

32 32 Sourc Source: : GfK Brand Trackin GfK Brand Tracking

Other revenue drivers

• Bags revenue grew +4.1% per seat
• Price increases

Ancillary revenue per seat

Price increases

• Peak season pricing
• Price bands by sector length

30.1%

• Continuing benefit F’12
• Increase in booking and credit

d f

17.0%

card fee

• Yield management of Speedy

Boarding

2.7%

Boarding

• Allocated seating trial
• 3.7%

Q1 Q2 Q3 Q4 F’11 vs. F’10 % change

33 33

Smart cost management

Off setting significant inflation and investment in F12 through £90m savings from easyJet lean

• Procurement deals at airport

g g y

+0.8ppt

p

• Ground handling efficiency
• Continued focus on driving down

‐3.9ppt 5% to 6%

Continued focus on driving down maintenance costs

• Crew scheduling efficiencies

5% to 6% 2% to 3%

Underlying inflation increase Investing in business traveller + allocation easyJet lean initiatives F12 cost per seat seating

34 34

CAPITAL DISCIPLINE CAPITAL DISCIPLINE

35

Returns to shareholders

Objectiv Objectives es Meas Measur ures es Achiev Achievemen ement F11 t F11

Return targets

• Earn returns in excess of cost of
• Improve PBT per seat to GBP5
• PBT per seat £3.97

g capital through the cycle

• Invest in growth opportunities

where returns are attractive p p

• Post tax ROCE of 12% through

the cycle p

• ROCE of 12.7%

Capital structure and liquidity

• Ensure robust capital structure
• Return excess capital to

shareholders

• Maintain sufficient level of liquidity

to manage through the cycle and

• Maximum gearing of 50%*
• Cap of GBP 10m adjusted net

debt per aircraft

• Minimum GBP 4m cash per

aircraft

• Gearing of 28%
• Adjusted net debt of

£3.3m per aircraft

• Cash per aircraft of

£6.9m to manage through the cycle and industry shocks aircraft £6.9m Dividend policy

• T

argeting consistent and continuous dividend payout

• 5 x cover subject to meeting

gearing and liquidity targets

• Ordinary dividend of

10.5 pence per share continuous dividend payout gearing and liquidity targets

• Consider one off returns in

addition to 5x dividend cover to reduce excess liquidity 10.5 pence per share

• Special dividend of

34.9 pence per share

36 36

Portfolio approach to managing network performance

• easyJet’s network is a competitive advantage
• Network managed as a portfolio
• Network managed as a portfolio
• Routes assessed against 12% ROCE target
• In a dynamic market place important to constantly monitor route performance
• Aim to raise network returns through initiatives such as passengers travelling
• Aim to raise network returns through initiatives such as passengers travelling

business

• New routes are not less profitable than old ones

37 37

Network development

Average daily frequency on A/B routes H1

2012 2011

• Building network for business

1 2 3

6

2011

• Building network for business

traveller

• Strengthen French position with

i l b

9 2 11 11 2

4 5

ency per day

new regional bases

• Launching base at Lisbon

Clinical approach to reviewing

27 27 20 20 27 27 19 19

2 3

verage freque

• Clinical approach to reviewing

route performance

29 29 26 26

5 10 10 15 15 20 20 25 25 30 30 1

Av

A/B routes = high frequency, time-sensitive, low-seasonality routes typical of the business market

• No. A/B
• No. A/B rout

routes

38 38

Focused approach to H1 capacity growth

U it d Ki d Germany Netherlands

6.9%

Overall flat capacity for winter (before disruption)

United Kingdom

1.5%

F Germany

0.1%

France

2.6%

Italy

1.3%

Switzerland

2.7%

Spain

0.6%

39 39

Measuring our progress

Our business passengersare contributing to our revenues

40 40

Measuring our progress

• Consistent metrics across all

bases and departments

• Bonus targets aligned: OTP,

customer satisfaction, cost per seat and Profit before Tax

• Longer term incentives aligned to

Our business passengers are contributing to our revenues

• Longer term incentives aligned to

ROCE

• United team pulling in the same

p g direction

41 41

OUTLOOK OUTLOOK

42

Forward bookings in line

• First half bookings in-line with prior year
• c 45% of available winter* seats now sold**

89% 88%

F'12 F'11 % seats sold *

• c. 45% of available winter seats now sold

80% 79% 54% 53% 29% 28% 17% 12% 29% 17% 12%

October November December January February March

+0 6% +13 8% 3 4% +2 7% +2 1% % monthly capacity h +7 1%

43 43

+0.6% +13.8%

• 3.4%

+2.7% +2.1% p y change +7.1%

* Win * Winter er = H1 (Oct = H1 (Oct ‘11 ‘11 to Mar to Mar ‘11) ‘11) ** A ** As at at 13.11.11 11.11

Outlook

Capacity (seats flown)

• FY c.+4% reported
• H1 flat (assuming normal disruption levels)

Revenue per seat (constant currency) H1 id i l di it

• H1 up mid single digits

Cost per seat ex fuel (constant currency)

• FY up 2% to 3% (assuming normal disruption levels)

p ( g p )

• H1 up 4% (assuming normal disruption levels)

Fuel bill anticipated to increased by around £220 million compared to prior year at current fuel and exchange rates prior year at current fuel and exchange rates

“Despite the headwind

Despite the headwinds of s of higher higher fuel costs and fuel costs and a a weak weak and uncertain and uncertain economic outlook our economic outlook our focus focus t b t ti l f th t th th f th J t’ t’ t k bi bi d ith th

• n cus
• n customers,
• mers, r

robus ust oper

• perati

tiona

• nal per

performance,

• rmance, th

the s e stre rength th o

• f th

the easy e easyJet’ t’s n s netwo work com combi bine ned w with ith cost con cost control and capital disciplin l and capital discipline means e means that that easyJet is well placed easyJet is well placed to succeed. to succeed.”

44 44

Summary

• Strategy is delivering strong operational and financial results
• Significant headwinds: fuel and weak consumer environment
• Key focus areas F’12:

1. easyJet lean 2 Driving revenue 2. Driving revenue 3. Capital discipline

• easyJet well positioned to deliver a 12% ROCE through the five year

planning cycle

45 45

Q & A Q & A

46

APPENDIX APPENDIX

47

Return on capital employed

Reported ported £m £m Sep ‘11 Sep ‘11 Sep ‘10 ep ‘10

Earnings before interest and tax 269 174 Normalised operating profit after tax (NOPAT) * 199 127 Average shareholders’ equity 1,603 1,402 Average net debt / (cash) (30) 43 Average capital employed 1,573 1,445 Return on capital employed 12.7% 8.8%

Pr Proforma

• forma (oper

(operatin ting leases leases capita capitalis lised) ed) £m Sep Sep ‘11 11 Sep Sep ‘10 10 Pr Proforma

• forma (oper

(operatin ting leases leases capitalised) capitalised) £m £m Sep Sep 11 11 Sep Sep 10 10

Earnings before interest and tax – reported 269 174 Interest element of operating lease payments ** 36 34 Earnings before interest and tax 305 208 Earnings before interest and tax 305 208 Normalised operating profit after tax (NOPAT) 226 152 Average shareholders’ equity – reported 1,603 1,402 Average net debt / (cash) – reported (30) 43 g ( ) p ( ) Average capitalised leases *** 360 331 Average capital employed 1,933 1,776 Return on capital employed 11.7% 8.6%

48 48

* * NOPAT calcul NOPAT calculated usin using defe deferred UK UK tax tax rate rate of

• f 26%

26% (201 (2010: 0: 27%) 27%) ** Assum ** Assuming ng one-third

• ne-third of oper
• f operating l

ating leas ase e paym yment ents r repres esents the ts the interest interest eleme element *** *** Esti Estimate ted net net pres present t valu value, not not seve seven time times ope

• perating le

lease pay payment

Contracted fleet position

Sep’11 Sep’11 Sep’1 Sep’12 Sep’13 Sep’13 A319 167 158 151 A320 35 55 66 Boeing 2 Boeing 2 Total 204 213 218 Change in fleet size +9 +5

49 49

RASK and CASK

F‘11 F‘11 F’10 F’10 Change B/(W) Change B/(W) Total revenue per seat 55.27 53.07 4.1% at constant currency 54.87 53.07 3.4% RASK at constant currency (pence) 4.94 4.72 4.7% Total cost per seat ex fuel* 36.62 36.62 flat at constant currency* 36.15 36.62 1.3% CASK ex fuel at constant currency 3 26 3 31 1 7% CASK ex fuel at constant currency (pence)* 3.26 3.31 1.7%

50 50

* * Under Underlying numb number – – 201 010 cost cost per sea per seat and C and CASK SK exclud exclude the the imp impact of ct of £27m £27m of

• f add

additional cost cost incurr incurred due due to to volca volcanic disr disruption ion and d a £ £7m loss ss on th the d dispo sposal of 4 4 A321 aircraf raft .

Disclaimer

This communication is directed only at (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001; or (ii) high net worth bodies corporate, unincorporated associations and partnerships and trustees of high value trusts as described in Article 49(2) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001. Persons within the United Kingdom who receive this communication (other than those falling Promotion) Order 2001. Persons within the United Kingdom who receive this communication (other than those falling within (i) and (ii) above) should not rely on or act upon the contents of this communication. Nothing in this presentation is intended to constitute an invitation or inducement to engage in investment activity for the purposes of the prohibition

• n financial promotion contained in the Financial Services and Markets Act 2000.

This presentation has been furnished to you solely for information and may not be reproduced, redistributed or d t th it b bli h d i h l i t f th passed on to any other person, nor may it be published in whole or in part, for any other purpose. This presentation does not constitute or form part of, and should not be construed as, an offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities of easyJet plc (“easyJet”) in any jurisdiction nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever This presentation does not constitute a recommendation regarding the securities of easyJet commitment whatsoever. This presentation does not constitute a recommendation regarding the securities of easyJet. Without limitation to the foregoing, these materials do not constitute an offer of securities for sale in the United States. Securities may not be offered or sold into the United States absent registration under the US Securities Act of 1933 or an exemption there from. easyJet has not verified any of the information set out in this presentation. Without prejudice to the foregoing, y y p p j g g, neither easyJet nor its associates nor any officer, director, employee or representative of any of them accepts any liability whatsoever for any loss however arising, directly or indirectly, from any reliance on this presentation or its contents. This presentation is not being issued, and is not for distribution in, the United States (with certain limited exceptions i d ith th US S iti A t f 1933) i j i di ti h h di t ib ti i l f l d i t f in accordance with the US Securities Act of 1933) or in any jurisdiction where such distribution is unlawful and is not for distribution to publications with a general circulation in the United States. By attending or reading this presentation you agree to be bound by the foregoing limitations.

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