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 Chief Executive ti 2

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

Operational performance fixed On Time Perfor On Time Performance mance LGW and Networ LGW and Network 90% • First wave focus 80% 70% 70% 60% • Firebreaks in schedule 50% 40% • • Proactive disruption Proactive disruption 30% management LGW Network • Improved standby I d t db Flightstats. Flightstats.com com 12 months to September 12 months to September levels • Better communication and engagement Note: No independent data for OTP available for Ryanair since May-11 4

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 Satisfaction with Likelihood to on this occasion punctuality recommend Source: GfK customer satisfaction tracking. Base sizes : Qtr. 3 2010: 20,624 Qtr. 3 2011: 28,511 5

Robust operation Returns to Customer share holders satisfaction Our Our people – people – driving performance driving performance and deli an d d li d d live vering t i ng the h e strategy str tegy Marketing & Cost reduction CRM Revenue Revenue growth 6

Finance review Chris Kennedy Chief Financial Officer icer 7

Summary £ per £ per seat seat • Revenue improvement driven by: • Improvements in revenue management 0.88 3.97 0.00 • Increase in customer satisfaction 0.41 • St Strong H2 ancillary performance H2 ill f 3.36 1.59 0.07 1.80 • Capacity investments maturing 2010 PBT Currency R ev enue R e Fuel (inc Crew Cr ew Disruption Di Ot Other 2011 PBT per seat * imp act imp curre rrency co costs per seat • • Fuel unit costs up £100m Fuel unit costs up £100m ( (exc fuel) f l) impact) i t) • Planned crew investment has delivered operational robustness 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% * 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 8

Financial results £m £m F ’11 F ’11 F ’10 ’10 Change hange T otal 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 * Underlying cost adjustments - (34) (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 Return on capital employed 12 7% 12.7% 8.8% 8 8% 3 9 ppt 3.9 ppt * Underlying cost adjustments: 9 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* EBITDAR* 513 513 366 366 40 2% 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 * * Und Underl rlying number number - - operatin rating costs ex costs ex fuel fuel exclud exclude the e the £27m £27m of of ad additional cost ditional cost incurr incurred d due e to to volcanic d volcanic disru sruption tion. . Financ Finance e and and 10 10 ownersh ownership 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 Currency split Curr ency split – t – total c costs – total r otal revenue nue US Dollar Euro 35% 35% 35% 35% Euro 44% 47% Sterling 1% 1% 5% Other 2% 24% 7% Swiss Franc Other Swiss Franc Swiss Franc Sterling 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 54.5 48.8 11.8% Passengers (m) Load factor (%) 87.3% 87.0% 0.3ppt Seats (m) 62.5 56.0 11.5% Average sector length (km) g g ( ) 1,110 , 1,123 , (1.2)% ( ) T otal revenue (£m) 3,452 2,973 16.1% T otal revenue per seat (£) 55.27 53.07 4.1% @ constant currency (£) @ constant currency (£) 54 87 54.87 53 07 53.07 3 4% 3.4% Revenue per seat at constant currency Capacity growth y g Load factor 91.2% 87.3% 86.7% 86.3% 84.1% 17.1% 14.6% 11.5% 9 4% 9.4% 7.7% 7 7% 7.3% 4.6% 3.4% 0.3% -4.5% Q1’11 Q2’11 Q3’11 Q4’11 F’11 12 12

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) y g ( ) 719 571 25.9% 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 otal 1.32 Str Strong performance in ong performance in the the UK UK and and impr improving performance in oving 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 otal revenue 55.27 53.07 4.1% Seat r Seat revenue nue Non-seat r Non-seat revenue nue � Ticket price � Partner deals, e.g. Europcar � Booking fees � In-flight Sales � Checked bags � Insurance � Speedy boarding 14 14

Impact of fuel Change F’11 F’10 B/(W) F Fuel $ per metric tonne l $ i Market rate 959 688 (271) Effective price 818 732 (86) US dollar rate Market rate Market rate 1 61 1.61 1 55 1.55 6 cents 6 cents Effective price 1.61 1.64 (3 cents) Actual cost of fuel £ per metric tonne 508 445 (63) £63 £63 per £63 £63 per me metric t i t c tonne onne incr i ncrease equa ase equal to l t o £100 £100 £100 £100m cos m cost or t or £1 £1 59 £1 £1.59 59 59 per per sea seat, t , 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 Eu Euro ro s surplus requir quiremen ement 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 $4.7m • One cent movement in £/$ impacts F’12 PBT by £2.6m $ b 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) RTK (‘000s) * Benchmark (CO 2 / RTK) Benchmark (CO 2 / RTK) = Free CO 2 (metric tonnes) Free CO 2 (metric tonnes) 5.8 * 0.6797 = 4.0 • • Exposure driven by excess requirement and the carbon price Exposure driven by excess requirement and the carbon price • Estimate need to buy €16m (£14m) ETS credits in calendar 2012* Carbo Carbon Va Value* ETS exposur ET S exposure (Metric (Metric tonnes) onnes) (E (Eur uro m) Free permits 4.0 43 Requirement 5.4 59 Exposure 1.4 16 * Ass Assuming €10. €10.90 per per tonne of tonne of carbo carbon; and £/€ and £/€ 1.15 .15 excha exchange rate rate 17 17