LOWEST COST IS THE WAY FORWARD 18/01/2017 WIZZ AIR TODAY FLE - - PowerPoint PPT Presentation

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LOWEST COST IS THE WAY FORWARD 18/01/2017 WIZZ AIR TODAY FLE - - PowerPoint PPT Presentation

Jan 13, 2024 342 likes •524 views

LOWEST COST IS THE WAY FORWARD 18/01/2017 WIZZ AIR TODAY FLE FLEET CARRIE IED PA PASS SSEN ENGER ERS 74 Airbus A320 and A321 aircraft 23 million in 2016 ROUTE TES S ON SA SALE LE ST STAFF FF > 500 routes, 136 destinations, 40

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SLIDE 1

18/01/2017

LOWEST COST IS THE WAY FORWARD

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SLIDE 2 CARRIE IED PA PASS SSEN ENGER ERS 23 million in 2016 Source: Company information (1) from 1 April 2015 until 31 March 2016 (2) As at 6 April 2016 (3) Headcount as at 31 Mar 2016. OPE PERATI TING BASE SES 27 WIZZ bases in 14 CEE countries (2 to open in 2017) FLE FLEET 74 Airbus A320 and A321 aircraft ROUTE TES S ON SA SALE LE > 500 routes, 136 destinations, 40 countries ST STAFF FF Approximately 3,000 » Bosnia and Herzegovina: Tuzla » Bulgaria: Sofia, Varna (from 21 July) » Czech Republic: Prague » Georgia: Kutaisi » Hungary: Budapest, Debrecen » Latvia: Riga » Lithuania: Vilnius » Macedonia: Skopje » Moldova: Chisinau (from 26 March) » Poland: Katowice, Warsaw, Gdansk, Poznan, Wroclaw and Lublin » Romania: Bucharest, Cluj-Napoca, Craiova, Iasi, Sibiu, Timisoara,Tirgu-Mures » Slovakia: Kosice » Serbia: Belgrade » Ukraine: Kiev

WIZZ AIR TODAY

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SLIDE 3

WIZZ AIR’S LOW-FARE NETWORK

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SLIDE 4

STRONG AND CONSISTENT GROWTH

WIZZ has achieved st strong and co consi nsisten ent growth h
  • ver the past

12,5 years

5 10 15 20 25 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 0.7 1.9 2.8 4.2 5.9 7.8 9.6 10.7 12 13.5 15.8 19.2 22.7 Passengers carried (million) in CY
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SLIDE 5

YEAR 2016: RECOGNITION AND FURTHER DEVELOPMENT

UNIQUE BUDAPEST LIVERY BRAND NEW WEBSITE EXCELLENCE IN OPERATIONS EXCELLENCE IN SAFETY

IOSA registration from International Air Transport Association (IATA) 2016 Value Airline of the Year by Air Transport World 2016 Low Cost Airline of the Year by Center for Aviation (CAPA)
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SLIDE 6

UNIQUE

2017: THE YEAR OF MASSIVE EXPANSION

2017

FOCUS ON

O P P O R T U N I T I E S

IN EUROPE

LOWEST

C O S T

14 NEW

A I R C R A F T Rapidly growing

WIZZ TE AM

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SLIDE 7

INTERNATIONAL MANAGEMENT TEAM

Chief Executive Officer József Váradi Chief Operations Officer Diederik Pen Chief Corporate Officer Owain Jones Chief Commercial Officer George Michalopoulos Chief Flight Operations Officer József Ujhelyi Chief Marketing Officer Johan Eidhagen Chief Financial Officer Sonia Jerez
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SLIDE 8

AIRBUS A321: THE GAMECHANGER

11
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SLIDE 9

HOW WE GOT HERE

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SLIDE 10

COST ADVANTAGE FROM A321

10 Fleet Development Airbus Order
  • 110 A321neo deliveries from 2019
(90 additional option)
  • Right to substitute certain A321neo
for A320neo
  • Next generation engine selected
Fleet 74 63 63 67 4 16 26 183 190 194 120 130 140 150 160 170 180 190 200 20 40 60 80 100 F16 F17 F18 A320 A321 Average number of seats per aircraft 67 79 93 *As at 30 September 2016 63x A320 11x* A321
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SLIDE 11

CEE – A UNIQUE OPPORTUNITY FOR GROWTH

11 Large Addressable Market Weak Legacy Carriers GDP Growth Deregulation Growing Propensity to Air Travel Growing LCC Market Share
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SLIDE 12 CEE Ryanair Easyjet Poland Ryanair EasyJet Romania Blue Air Ryanair Hungary Ryanair EasyJet Czech Republic EasyJet Ryanair Lithuania Ryanair Norwegian Bulgaria Ryanair EasyJet Latvia Ryanair Norwegian Ukraine FlyDubai Pegasus Slovakia Ryanair FlyDubai Serbia Ryanair Pegasus Macedonia Pegasus FlyDubai Bosnia & Herzegovina Pegasus FlyDubai

MARKET LEADING POSITION*

12 Source: Company Information. Innovata, Nov 2016 to Feb 2017. * Market and Market Share is defined as the Low Cost Carrier market, excluding domestic capacity

44%

36% 6% Number 1 Number 2 Number 3
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SLIDE 13 13

DE-RISKED GROWTH PROFILE

New Airports Increasing Frequencies New Destination Countries Joining Existing Airports

56.5 %

H1 FY17 Capacity

26.8 % 15.5 % 1.1 %

Source: Company Information
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SLIDE 14

12.3 11.4 15.1 16.4

Bag Fees Non-Bag

IMPORTANCE OF ANCILLARY MODEL

14 Ancillary Income per passenger increased by €0.4 to €27.8 in H1F17 vs H1F16 Focus on value added services e.g.:
  • Wizz Discount Club
  • Allocated Seating
  • Plus Fare
€27.4 €27.8 F16 F17 Revenue per passenger in € 19.0 22.2 25.4 26.3 26.7 27.4 27.8 49.1 46.8 47.3 48.2 44.8 51.1 45.0 68.1 69.0 72.7 74.5 71.5 78.5 73.2 F12 F13 F14 F15 F16 H1 F16 H1 F17 Ancillary Ticket
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SLIDE 15

CONSUMER-TAILORED BUNDLES

  • BASIC
  • WIZZ GO
  • WIZZ PLUS

FOCUS ON ANCILLARY PRODUCT OFFER

15 201 272 448 580 815 1024 F12 F13 F14 F15 F16 H1 F17 + 65% Members (in 000’s and % yoy growth) + 35% + 29% + 41%

ASSIGNED SEATING WIZZ DISCOUNT CLUB

GROWING POPULARITY
  • Network-wide rollout May 19, 2015
  • Product and pricing refinements, 2016
+ 26%
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SLIDE 16

LOWEST COST IS THE WAY FORWARD

HOW TO GET THE LOWEST COST IN THE INDUSTRY: AIRPORT MIX LABOUR PRODUCTIVITY ONLINE DISTRIBUTION SYSTEM OUTSOURCE SERVICES NOT CORE TO THE BUSINESS POINT-TO-POINT FLIGHTS ONLY FOCUSED BUSINESS (NO DEVIATION FROM ULCC MODEL) YOUNG AND UNIFORM FLEET

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SLIDE 17

THANK YOU FOR YOUR ATTENTION