Introduction Johan Lundgren - CEO 2018 building on strong - - PowerPoint PPT Presentation

Introduction

Johan Lundgren - CEO

2018 – building on strong foundations

Structural advantages deliver strong performance > Headline PBT growth of 41% > Strong revenue, up 17%

• RPS Up 4.7% (@cc)
• Ancillary revenue per seat (@cc) up 9.9%

> Cost programme delivers £107m in savings > #1 airline for value in Europe* > Tegel successfully executed > Customer satisfaction up despite unprecedented disruption levels in the industry > Best performing airline in Europe in 2018 > 43% increase in ordinary dividend

3

Well positioned for the future > Strong balance sheet > Well prepared for Brexit > Flexible fleet position > Advantaged fuel hedge Investing in people > New leadership team in place > Strong pipeline of Pilot and Crew recruitment > Strong employee engagement scores (eNPS) New initiatives to drive margins and returns > Holidays, Business, Loyalty, Data > Operational Resilience Programme

easyJet – A structural winner

* Skyscanner award

3

Financial review

Andrew Findlay - CFO

performance highlights

FY 2018 FY 2017 Change* Seats flown (m) 95.2 86.7 9.8% Passengers (m) 88.5 80.2 10.2% Load factor (%) 92.9% 92.6% +0.3ppt Average sector length (km) 1,101 1,105 (0.4%) Revenue per seat - reported currency (£) 61.94 58.23 6.4% Revenue per seat - constant currency (£) 60.96 58.23 4.7% Headline cost per seat incl fuel - reported currency (£) 55.87 53.52 (4.4%) Headline cost per seat incl fuel - constant currency (£) 54.97 53.52 (2.7%) Headline cost per seat excl fuel - reported currency (£) 43.43 41.27 (5.3%) Headline cost per seat excl fuel - constant currency (£) 43.25 41.27 (4.8%) Headline profit before tax per seat 6.07 4.71 28.7%

* Favourable/(adverse)

5

Financial performance

FY 2018 £ m FY 2017 £ m Change* Total revenue 5,898 5,047 851 Headline costs: Headline costs excluding fuel (4,136) (3,577) (559) Fuel (1,184) (1,062) (122) Headline profit before tax 578 408 170 Headline ROCE – including 7x lease 14.4% 11.9% 2.5ppt Headline diluted EPS (pence) 117.4 81.9 35.5

Non-headline items: Commercial IT platform charge (65)

• (65)

Tegel integration (40)

• (40)

Sale and leaseback charge (19) (16) (3) Other (9) (7) (2)

Total profit before tax 445 385 60

* Favourable/(adverse)

6

Revenue performance – ex-Tegel

7

RPS bridge

FY 2018

£63.09

FX

£0.95

FY 2018 @ CC

£62.14

Passenger revenue

£0.59

Ancillary revenue

£1.34

Monarch exit Ryanair cancellations FR industrial action

£1.98

FY 2017

£58.23 +3.4% +2.3% +1.0%

12% growth in ancillary RPS versus 2017

+1.6%

+6.7% +8.3%

Controlled costs in a disrupted year

8

Headline CPS bridge (ex-T egel)

> Ex-Tegel headline cost per seat at constant currency: 2.0% increase > Ex-Tegel headline cost per seat ex fuel at constant currency: 3.8% increase

Ownership costs FY 2017 headline cost per seat Other and inflation

£0.29 £0.18

Fleet mix

£1.05

easyJet cost programme savings

£0.22 £0.53 £0.75

Crew pay and productivity

£53.52 £0.52 £0.88 £55.45

P&L FX FY 2018 headline cost per seat Disruption and de-icing

£0.67

Fuel Regulated airports inflation

£0.56

Employee incentive costs

£55.09

FY 2018 headline cost per seat at CC before fuel variance

CPS ex fuel increased by 1.1% (in-line with original guidance)

Tegel operation

9

FY 2018 Seats flown (m) 4.9 Passengers (m) 3.9 Load factor (%) 80.6% Average sector length (km) 836 FY 2018

£m (reported)

Revenue 198 Headline cost including fuel (310) Headline cost excluding fuel (250) Headline loss before tax (112) Non-headline integration costs (40) Total loss before tax (152)

> Recruitment and training executed to plan > Now 23 easyJet aircraft based at Tegel:

• Replacing wet-leases with own fleet

> As at 30 September 2018, 665 pilots and cabin crew were working from the base > FY OTP = 82% > Total loss less than original expectation at £152m > Progress continues:

• Schedule optimisation
• More leisure, SXF-TXL swaps

Impact of fuel & currency

10

FY 2018 fuel impact FY 2018 FY 2017 Change* Fuel $ per metric tonne Market price 664 501 (163) Effective price 590 596 6 US dollar rate Market price 1.34 1.27 7 cents Effective price 1.36 1.45 (9 cents) Difference 0.02 0.18 Actual cost of fuel £ per metric tonne 434 412 (22) FY 2018 currency impact on headline PBT* EUR CHF USD Other Total £m Revenue 96 (1) (3) 1 93 Fuel

• (68)
• (68)

Headline costs excluding fuel (24) 14 (6) (1) (17) Total 72 13 (77)

• 8

* Favourable/(adverse)

Advantaged hedge

Strong cash generation

11

*Leases capitalised at 7x ** Includes money market deposits but excludes restricted cash

Cash flow bridge

> Net cash: £396m (FY’17: £357m) > Adjusted net debt: £738m (FY’17: £413m)* 460 214 64 326 151 74 162 106 35 977 4 41 17

Sale & leaseback proceeds Tegel consideration CAPEX Other Cash & MMDs at 30 September 2018**

2,307

Cash & MMDs at 1 October 2017** Operating profit

1,373

Depreciation & amortisation Loss on disposal

• f Intangibles

and PP&E Increase in restricted cash Net working capital Tax paid Other

• perating

1,328

FX Ordinary dividend (FY’17) Cash & MMDs post div & tax paid

Growth Replacement /

• ther

Cash generated from operations (excluding dividends): £1,215m Investing and financing

Strong balance sheet Baa1 / BBB+

12

£m 30 September 2018 30 September 2017 Goodwill and other intangible assets 546 544 Property, plant and equipment 4,140 3,525 Derivative financial instruments 364 92 Other assets (excluding cash and money market deposits) 541 356 Unearned revenue (877) (727) Other liabilities (excluding debt) (1,851) (1,345) Capital employed 2,863 2,445 Cash and money market deposits* 1,373 1,328 Debt (977) (971) Net cash 396 357 Net assets 3,259 2,802 Liquidity is supported by two revolving credit facilities (one $500 million facility and one £250 million facility) and a business interruption insurance policy

* Excludes restricted cash

Fuel and foreign exchange hedging

13

Fuel requirement US dollar requirement Euro surplus Six months ending March 2019 69% @ $567/MT 70% @ 1.31 69% @ 1.14 Full year ending 30 September 2019 65% @ $571/MT 66% @ 1.33 68% @ 1.13 Full year ending 30 September 2020 45% @ $654/MT 46% @ 1.38 47% @ 1.10

As at 30 September 2018

• Exercise of purchase rights to firm orders

for 17 A320neo

• Deferral of delivery dates of 18 A320neo

aircraft by up to 24 months; and

• Conversion of 25 purchase rights for

A320neo into purchase options

• Securing delivery slots in 2024.

Utilising flexibility in fleet planning

14

• Downside cases assume sale at 16 years of age

Max fleet plan Min fleet plan

Fleet announcement

In Increa eased sed flex exibility ibility

315 329 359 367 385 352 338 316 295 315 335 355 375 395

FY FY2018 2018 FY FY2019 2019 FY FY2020 2020 FY FY2021 2021 FY FY2022 2022

Gross capital expenditure

15

• c. £800m

FY’22 FY’19 FY’20

• c. £1,000m

FY’21

• c. £1,000m
• c. £1,000m

Fleet capex Owned maintenance & Other

• Not including impact from IFRS 16 accounting standard

93% 86% 60% 22% 51% 11% 7% 91% 82% 55% 21% 50% 11% 8%

Oct Nov Dec Q2 H1 Q3 H2

FY18 FY19

2019 forward bookings

16

H1 2019 (October 2018 to March 2019) as at 16 November 2018 (Including Tegel bookings)

Would be in-line with H1’17 when excluding Tegel & 2018 one-offs

6.1% 0.6% 3.2% 7.8% 6.0% 4.3% 7.5% 15.0%

Capacity change total SH Market Competitors on easyJet markets Capacity Change easyJet markets easyJet capacity change

H1 FY18 H1 FY19

H1’19 market capacity outlook

17

H1 2019 (October 2018 to March 2019) as at 7 November 2018 – Source OAG

4.9

H1’19 easyJet growth

18

H1 2019 (October 2018 to March 2019)

1.0% 7.0%

Manchester growth Tegel Winter’18 capacity growth

4.9%

Up-gauging Annualisation & underlying growth

1.9% 1.1%

Winter’17 Cancellations

Strategic growth 8.0% Non-flying growth 3.0% Organic growth

15.0% 4.0%

Capacity (seats flown) > FY c.+10% increase; H1 c.15% increase Revenue per seat at constant currency > H1 revenue per seat performance: Down low to mid single digits > Updated for IFRS 15 :

• H1 revenue per seat performance:

Down mid single digits Cost per seat at constant currency > FY headline cost per seat excluding fuel:

• c. Flat (assuming normal levels of disruption)

> Updated for IFRS 15 :

• FY headline cost per seat excluding fuel: Slight

decrease (assuming normal levels of disruption) FX / Fuel* > FY: c.£10 million adverse movement from foreign exchange rates on headline PBT > FY: unit fuel costs £50 million to £100 million adverse > Expected total fuel cost c.£1.5 billion T

• tal Capex

> Total capex spend c.£1.0 billion

2019 Outlook

19

H1 2019 (1 Oct 2018 to 31 Mar 2019) * Based on fuel spot price range of $675 - $760 includes impact of ETS carbon scheme prices GBP; EUR: 1.12 GBP: USD 1.28

strategic review

Johan Lundgren - CEO

Seamlessly connecting Europe with the warmest welcome in the sky

Our purpose Our priorities Our promise #1 or #2 in primary airports

Giving customers the leading offer in the airports they want to fly to.

Winning our customers’ loyalty

Making it easy, enjoyable and affordable to travel again and again for business and holidays.

The right people

Creating an inclusive and energising environment that attracts the right people and inspires everyone to learn and grow.

Innovating with data

Using the millions of data- points we collect to make smart decisions and shape the future of travel, as the world’s leading data driven airline.

Value by efficiency

We are low cost, driving efficiency and investing

• nly where it matters to
• ur customers and our

people.

We are:

Safe and responsible On our customers’ side In it together Always efficient Forward thinking

Our plan

21

Our priorities – evolution not revolution

22

These metrics will collectively drive our performance

Profit per seat OTP CSAT Score ROCE CO2 emissions per pax EPS #1 or #2 in primary airports

Giving customers the leading offer in the airports they want to fly to.

Winning our customers’ loyalty

Making it easy, enjoyable and affordable to travel again and again for business and holidays.

The right people

Creating an inclusive and energising environment that attracts the right people and inspires everyone to learn and grow.

Innovating with data

Using the millions of data- points we collect to make smart decisions and shape the future of travel, as the world’s leading data driven airline.

Value by efficiency

We are low cost, driving efficiency and investing only where it matters to our customers and our people.

#1 or #2 in primary airports

#1 or #2 in primary airports

23

Leading network of No 1 & 2 positions

Number 1 position Number 2 position FY’2018 CPBH FY’2014 CPBH

Delivering increasing returns

33% increase in capacity

2014 2018 Airports with #1/2 positions 44 51 Capacity at bases with #1/2 positions 49m 62m Capacity at #1/2 positions 56m 71m

CPBH = Contribution per block hour

Ave CPBH increased by c.20% over the cycle

New number 1 positions 1 1 1 Split 1 1 1 1 1 1 1

Much more to go for

Much more to go for

24

No 1 & 2 Airports

60m

Seats flown by legacy carriers on easyJet routes

No 1 & 2 positions – Market share on easyJet routes Legacy carriers remain easyJet’s main competitors

> London Gatwick > Geneva > Basel > Edinburgh > Nice > Berlin > Venice > Belfast > Manchester > Paris CDG > Toulouse > Amsterdam

Legacy / other, 36% LCC's, 20% easyJet , 44%

Number 1 positions include Number 2 positions include

Great Offer Leading Brand Loyal Customers

> Leading network > Affordable fares > Continual innovation > Customer focused > The right people

Holidays

Winning our customers’ loyalty

25 - Rankings based off an average across the following markets – UK, France, Italy, Switzerland, Germany

Source: Brand Tracker

 Leading airline for value

for money

 Leading LCC for Serious

Consideration More trips per year Higher ancillary spend per customer

Much more to go for Rank: 1st Rank: 1st

Higher yield per year

Business Loyalty

> 2x

More valuable

easyJet holidays

26

The Opportunity What we have today Leading network for beach and city breaks Market leading Brand Loyalty and customer satisfaction

20m

People who flew with easyJet for leisure and booked accommodation elsewhere

> 500k bookings > Despite 20m easyJet passengers booking accommodation elsewhere Under-invested > Lack of functionality > Not in sync with easyJet.com Sub-optimal technology > No personalisation > No pricing control > Commission based Lack control of final product

Best Value Airline award

CSAT

Despite disruption experienced in 2018

27

> Flight focused > No hotel relationships > Commoditised hotels

Offer Booking experience

> Two paths > Non-differentiated

• ffers

> Poor user experience

Flight Destination

> Great customer

• ffer

> Focus of easyJet experience > Limited offer of add-ons > No effort to understand customer needs > Leading flight offer > Better value > Targeted hotel

• ffers

> Seamless booking > Better user experience > Customised offers > Great customer

• ffer

> Part of broader easyJet experience > End-to-end customer offer > Destination specific add-ons

T argets / Key dates

> Launch easyJet Holidays in late 2019

• New proposition
• New content
• New website / platform

2019

> Direct relationships with Europe’s most loved hotels > Deliver meaningful profit improvement

2020

Holidays - delivering the benefits

From To

£40.2bn

Total business travel market just in the UK*

28

* Data set taken from GBTA/PWC studies

The Opportunity What we have today Market leading primary airport network in Europe Comparable offer to legacy carriers, at a lower price

With an improved

• ffer to come

> 15m passengers in 2018 > 17% growth vs 2017 17% of total passengers > easyJet Plus > Flight Club Basic Loyalty programme > Use of schedule to drive business travel > Not optimum use of peak time slots Opportunistic scheduling

easyJet business

Best low cost airline award

29

> Relationship with leading companies > Limited tools

Procurement Booking experience

> Limited channels > Same as leisure customer booking

Flight Support

> #1 and #2 airports > “one-size fits all” > No post-travel tools > No loyalty offer > Relationship with leading companies > Corporate Flight Club > Expanded tools > Tailored experience > #1 and #2 airports > More product customisation > Targeted schedule improvements > Duty of care tool > VAT invoicing > Building loyalty offer

T argets / Key dates

> Schedule optimisation > Launch of Corporate Flight Club > Continued growth in business passengers > New business bundles

2019

> Continued schedule

• ptimisation

> Increased penetration in business routes > Enhance easyJet Plus > New tools (SME portal)

2020

Business - delivering the benefits

From To

30

The Opportunity What we have today > 66% of seats in FY18 were booked by customers who had also booked with easyJet in the previous 2 years > Return customers buy twice as many flights per year than first timers > easyJet Plus and Flight Club consistently drive incremental YOY revenue

Incremental Ticket Revenue Incremental Ancillary Revenue Incremental Partner Revenue

easyJet loyalty

31

> Flight Club > Ad-hoc on board

Recognise loyalty Reward easyJet flying

> easyJet Plus

Redemption Engagement

 

> Flight Club > Surprise & Delight > New segments > easyJet Plus > Earn points for all easyJet purchases > Partnerships that earn rewards > Range of products > Integrate with product > Benefit bundles > Points + Cash > Travel rewards > Boosted bundles > Enhanced offers

T argets / Key dates 2019

Loyalty - delivering the benefits

From To

2020

> Enhance easyJet Plus and Flight Club > Loyalty technology > Programme partnerships > Define member experience > Launch programme in UK > Segment strategies > Build partnership ecosystem > Link to easyJet Holidays > European expansion > Business Rewards programme > Continue partnership growth

Value by efficiency

Delivering £££ savings Up-gauging – c. 1% CPS saving per year New generation aircraft delivering CPS savings

A319 CEO – 156 seats A320 CEO – 180 / 186 seats A320 NEO – 186 seats A321 NEO – 235 seats

Current generation A319 5% -6% New generation A320neo New generation A321neo Current generation A320 6% -7% 8% -9%

Value by efficiency

32

> £107m savings in FY 2018 > Drives operational excellence > Supports reliable decision making > Reduces complexity > Direct links to effective use of data Over £500m in cost reductions delivered since 2011

Disruption – an industry wide issue

11.3 10.5 9.7 9.3 11.7

Departure delay (mins/flight)

5.8% CAGR GR

2018E 2017 2016 2015 2014

> Airspace operating environment is increasingly

constrained

> Under resourced ATC across Europe > Limited change to ATC and airport infrastructure

(Lack of investment)

> Increasing knock on effects from strikes and weather > 27,708 cancelled flights across Europe

(1st July – 12th Aug 2018)

Network delay growth – All airlines1

Disruption – an industry wide issue

33 1 - Includes all airlines into an aggregated network view Source: Annual reports, EuroControl European Network Ops Plan (2014-2022)

**easyJet and other airlines continue to lobby the regulatory bodies across Europe as well as working with the A4E to fast track improvements to the current issues faced by the industry**

easyJet Operational Resilience Programme

Build: Execute: Recover:

Invest intelligently in schedule, aircraft and crew to enable a resilient operation that is set up to deliver. Deliver a robust operation through a combination

• f predictive tools including automation and
• ptimisation.

Improve the customer experience during disruption, minimising impact and preserving customer satisfaction.

Current actions being implemented:

• Standby Aircraft Task Force:
• New standby aircraft demand forecasting to inform

aircraft requirement for 2019

• First Wave Focus
• Process changes, metrics, and communication

measures to improve start of the day

• Better use of data and analytics
• Operational On Time Performance tool
• Optym schedule development
• Tactical schedule and crew resilience
• Tactical changes to schedule and crew designs for

Summer 19

Disruption – an opportunity for CSAT & Cost

34

The Operational Resilience Programme is an opportunity to deliver a better customer experience while also cutting cost

> Industry leading crew > New leadership team to deliver Our Plan > Industry leading experts

The right people

35

Overall engagement score

8/10

8.9 high

gh engagem agement t score for Tegel

6.6 Growth score –

most st posit itiv ive com

• mmu

munit nity y – Pilot

• ts

s

Cabin Crew eNPS

41

A good place to work. > Higher retention

• 6.5%

5% - total turnover

• 4.9%

.9% - pilot turnover

4.2 cc

Glassdoor rating

Web based Marketing & Campaigns Operation Optimisation Service Optimisation Networks and Flights Scheduling AI Personal, Assistant Disruption Management Automation Pricing and Market Forecast

Enhancing all aspects of the business

Innovating with data

36

Improve customer experience Drive revenue Reduce cost Improve operational efficiency

DATA

> 50 projects already under way > Senior data personnel and structure in place

> 28 data scientists in place (50 targeted) Becoming the most data driven airline in the world

Better prepared for Brexit (1)

37

1. Structure and flying rights:

• Robust post Brexit structure
• Three airlines in place: United Kingdom, Austria, Switzerland
• Had confirmation that as long as the UK reciprocates the EU will allow UK carriers to fly to and from the EU
• The majority of our network would be unaffected anyway
• 2. Operations – Robust solutions:
• Safety and regulatory – grace period on safety certificates and spare parts
• Incremental spare parts now split between the UK and Europe
• People:
• Pilot Licenses
• Recruiting crew in the right places
• Some residence rights to accrue to UK and EU citizens
• Aircraft in the right place – UK (170), Europe (117), Switzerland (28)

Confiden dent t that flying ing will contin inue ue even en in the even ent t of a no deal al Brexit exit

Flows % of c current capacity ity UK – EU27 35% All other 65%

Better prepared for Brexit (2)

38

• 3. Ownership:
• 47% EEA ownership at present
• Articles of Association allow the Board to take action to satisfy ownership and control requirements
• Including the right to suspend voting rights and/or forcing shareholders to sell their shares
• easyJet has no current intention to do this but will keep its options open whilst Brexit negotiations are ongoing
• 4. Consumer demand:
• UK demand remains strong – H2 bookings ahead of last year
• Flexible and disciplined fleet allocation to drive highest returns
• 5. Financially strong
• BBB+, Baa1
• High levels of liquidity

Confiden dent t that flying ing will contin inue ue even en in the even ent t of a no deal al Brexit exit

Our priorities – delivering shareholder value

39

Maximise ROCE Generate sustainable positive cash flows Maximise PBT/ seat

#1 or #2 in primary airports

Giving customers the leading offer in the airports they want to fly to.

Winning our customers’ loyalty

Making it easy, enjoyable and affordable to travel again and again for business and holidays.

The right people

Creating an inclusive and energising environment that attracts the right people and inspires everyone to learn and grow.

Innovating with data

Using the millions of data- points we collect to make smart decisions and shape the future of travel, as the world’s leading data driven airline.

Value by efficiency

We are low cost, driving efficiency and investing only where it matters to our customers and our people.

Appendix

Adoption of IFRS 15

41

Chan ange ge in acco counting: ting:

• Revenue recognition from certain revenue streams, principally administration and change fees, will be recognised on the date of flight

rather than the date of booking.

• Some of the compensation payments made to customers (in respect of flight delays), previously recorded wholly within expenses, will be
• ffset against revenues recognised, with the excess compensation continuing to be recorded within expenses.

Impac act t on adopt

• ption

ion on 1 Octo tober ber 2018: 8:

• A one-off £80 million increase to unearned revenues will be recognised with a corresponding charge to retained earnings (in respect of

bookings made in the year ended 30 September 2018 and recognsied in revenue in FY’18, for flights in the following financial year). These revenues will be recognised again in FY’19 at the date of flight. FY’19 impact:

• The anticipated full year profit impact of this change is expected to be immaterial.
• A higher proportion of annual revenues will be recognised in the second half of the year (approximately £40 million of revenue will be

deferred until H2).

• Revenue and cost are both expected to decrease by approximately £20 million as a result of the reclassification of compensation

payments.

Adoption of IFRS 16

42

Change in a accounting: g:

• All aircraft operating leases will be capitalised on the balance sheet as a right-of use asset with a corresponding lease

liability representing easyJet’s obligation to make lease payments. Lease costs previously recognised within the Income Statement will be replaced by depreciation and interest expense.

• Contractual maintenance obligations which are dependent on the use of the aircraft will continue to be provided for
• ver the term of the lease based on the estimate future costs, discounted to present value. However they will be

capitalised to the right-of-use asset and depreciated immediately rather than recognised within maintenance costs in the Income Statement. Impact on a adoptio ion on 1 Oc October 2018: :

• Approximately £545 million of lease liabilities and £510 million of Right of Use Assets will be recognised, with a

corresponding decrease to retained earnings. FY’19 impact:

• The anticipated full year profit impact of this change is expected to be immaterial.
• IFRS 16 is not expected to have a material impact on the Income statement as the annual operating lease expenses

and maintenance charges will be replaced by anticipated similar levels of depreciation and interest expense.

• Headline ROCE is expected to improve by circa 1.5 percentage points.

Profit after tax

£ m FY 2018 FY 2017 Change* ge* Headline profit before tax 578 408 41.4% Headline tax charge (112) (83) (33.3%) Headline profit after tax 466 325 43.5% Total profit before tax 445 385 15.5% T

• tal tax charge

(87) (80) (9.0%) Total profit after tax 358 305 17.3% Effective tax rate 19.7% 20.8% 1.1ppt

* Favourable/(adverse)

43

EPS, Dividends and ROCE

FY 2018 FY 2017 Change* ge* Headline basic earnings per share (pence) 118.3 82.5 43.4% Headline diluted earnings per share (pence) 117.4 81.9 43.3% Total basic earnings per share (pence) 90.9 77.4 17.4% Total diluted earnings per share (pence) 90.2 76.8 17.4% Dividend per share (pence) 58.6 40.9 43.3% Headline return on capital employed (%) 14.4% 11.9% 2.5ppt Total return on capital employed (%) 11.5% 11.3% 0.2ppt

* Favourable/(adverse)

44

Headline cost per seat – ex-Tegel

45 Cost per seat excluding fuel £ Variance at constant currency* £ Weighted variance (ex fuel) at constant currency* %

Key driver ers

Airports and ground handling 17.07 (0.14) (0.3%) > Annualised increases in charges at regulated airports and increased de-icing costs > Investment in ground handling at Gatwick through partnership with DHL > Offset by savings from volume deals and renegotiated airport and ground handling contracts Crew 8.08 (0.63) (1.5%) > Agreed inflationary increases in crew and pilot pay > Higher crew incentive payments, due to our strong financial performance > Adverse productivity driven by investment in resilience (retention over winter periods) and increased disruption Overheads 6.28 (0.58) (1.4%) > Higher disruption costs > Higher staff incentive payments, due to our strong performance > Increase in project costs as a result of investment in significant initiatives Navigation 4.27 0.16 0.3% > > Price benefits in France and Germany > Change in fleet mix Ownership 3.99 (0.18) (0.4%) > Increase in depreciation due to new aircraft purchased > > Increase in lease costs due to sale and leaseback programme > Partially offset by increase in interest receivable driven by higher cash balances and more favourable interest rates Maintenance 3.31 (0.20) (0.5%) > Higher level of returns and additional aircraft recovery resilience > More than offset by up-gauging of fleet and the impact of discounting Total headl dline ne CPS excludi uding ng fuel 43.00 .00 (1.57) 7) (3.8 .8%) %) Fuel 12.45 0.52 > > Increases in the market price of fuel > Offset by the operation of easyJet’s fuel hedging policy and aircraft gauge Total headl dline ne CPS 55.45 (1.05) (2.0%) 0%)

* Favourable/(adverse)

Revenue

£ per er seat at FY 2018 FY 2017 Change* ge* Passenger revenue 49.23 46.85 5.1% Ancillary revenue 12.71 11.38 11.7% T

• tal revenue

61.94 58.23 6.4%

46

* Favourable/(adverse) – Passenger revenue includes net ticket and admin fee, all other revenue is included in ancillary revenue

Total reported ported FY 2018 FY 2017 Change* ge* Passenger revenue 4,688 4,061 15.4% Ancillary revenue 1,210 986 22.7% Total revenue 5,898 5,047 16.8%

Increasing proportion of A320 aircraft

FY 2 2018 FY 2 2017 Change A319 (operating lease) 53 54 (1) A319 (owned / finance lease) 79 89 (10) A319 Total 132 143 (11) A320 (operating lease) 37 18 19 A320 (owned / finance lease) 144 118 26 A320 20 Total 181 136 45 45 A321 21 Total l (owned) 2

• 2

Total l fleet 315 279 36 36 Operating lease 29% 26% 3ppt Number unencumbered 220 202 18 Percentage of A320s in fleet 57% 49% 8ppt Average seats per aircraft 172 169 2%

47

Currency impact

Revenue Costs FY 2 2018 FY 2017 FY 2 2018 FY 2017 Sterling 45% 46% 29% 30% Euro 44% 44% 41% 39% 37% US dollar 1% 1% 1% 26% 26% Other (principally Swiss franc) 10% 12% 6% 6% 7%

Average effective Euro rate for revenue for FY 2018 was €1.14 (FY 2017: €1.18) Average effective Euro rate for costs for FY 2018 was €1.13 (FY 2017: €1.15)

48

ROCE calculation – including 7x lease adjustment

Repo porte rted d £m FY 2018 FY 2017 Earnings before interest and tax – reported 460 404 Interest element of operating lease payments 54 37 Earnings before interest and tax - adjusted 514 441 Tax 19% 19% Normalised operating profit after tax (NOPAT) 416 357 Average shareholders’ equity – reported 3,031 2,748 Average net cash – reported (377) (285) Opening capitalised leases 770 637 Closing capitalised leases 1,134 770 Average capitalised leases 952 704 Average capital employed 3,606 3,167 Return on capital employed – 7x basis 11.5% 11.3%

49

Headline ROCE calculation – including 7x lease adjustment

Repo porte rted d £m FY 2018 FY 2017 Headline earnings before interest and tax – reported 592 428 Interest element of operating lease payments 51 37 Headline earnings before interest and tax - adjusted 643 465 Tax 19% 19% Normalised headline operating profit after tax (NOPAT) 521 376 Average shareholders’ equity – reported 3,031 2,748 Average net cash – reported (377) (285) Opening capitalised leases 770 637 Closing capitalised leases 1,134 770 Average capitalised leases 952 704 Average capital employed 3,606 3,167 Return on capital employed – 7x basis 14.4% 11.9%

50