Q1 2020 Analyst & investor presentation 21 January 2020 Q1 - - PowerPoint PPT Presentation

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Dec 14, 2022 176 likes •323 views

Q1 2020 Analyst & investor presentation 21 January 2020 Q1 performance momentum continues 1. Strong revenue trend Revenue initiatives delivering Robust demand across Europe, low competitor capacity growth in the market

SLIDE 1

Q1 2020

Analyst & investor presentation

21 January 2020

SLIDE 2

Q1 performance – momentum continues

1. Strong revenue trend

Revenue initiatives delivering
Robust demand across Europe, low competitor capacity growth in the market
Upgrade to RPS guidance

2. Underlying cost performance as expected

Delivering on cost programme
No change to full year guidance

3. easyJet holidays

Successful launch

4. Strong operational performance

Improved OTP and CSAT score

SLIDE 3

Q1 key stats

Q1 ‘20 Q1 ’19 Change

Favourable/(adverse)

Passengers (m)

22.2 21.6 2.8%

Load factor (%)

91.3% 89.7% 1.6ppts

Seats (m)

24.3 24.1 1.0%

Average sector length (km)

1,106 1,079 2.6%

Passenger revenue (£m)

1,124 1,025 9.7%

Ancillary revenue (£m)

301 272 10.8%

Total revenue (£m)

1,425 1,296 9.9%

Total airline revenue per seat (£)

58.56 53.89 8.7%

Total airline revenue per seat @ constant currency (£)

58.63 53.89 8.8%

Total airline headline CPS (£)

(58.40) (56.71) (3.0%)

Total airline headline CPS @ constant currency (£)

(59.41) (56.71) (2.6%)

Total airline headline CPS, ex-fuel @ constant currency (£)

(45.29) (43.42) (4.3%)

SLIDE 4

Q1 Revenue performance

£0.79 £1.08 £2.87 £58.63

Q1 2020 @ CC Q1 2019 Reported Thomas Cook Administration Ancillary Underlying Trading Q1 2020 Reported

£53.89 £58.56

(£0.07) RPS PS @ CC +8.8 .8% Reported ported RPS S +8.7% .7% +1.5% +2.0% +5.3%

SLIDE 5

Cost performance

Headline

Q1 2020 Reported Q1 2020 Constant currency

Cost per seat including ing fuel 3.0% Increase 2.6% Increase Cost per seat excluding fuel 2.6% Increase 4.3% Increase Increases s driven by:

Lower capacity growth
Ongoing (regulatory) inflationary pressure
Ownership costs
Crew pay agreements and retention levels
French strikes

Offset b by:

Continued focus on cost, including Operational Resilience

programme

Up-gauging of fleet, as easyJet continues to move from

A319s to A320s and A321s

SLIDE 6 Operating hedges as at 31 December 2019

Fuel requirement US dollar requirement Euro Surplus Six months to 31 March 2020 76% @ $631/MT 74% @ 1.35 75% @ 1.11 Full year ending 30 September 2020 71% @ $654/MT 70% @ 1.35 74% @ 1.11 Full year ending 30 September 2021 51% @ $638/MT 53% @ 1.31 61% @ 1.11

Fuel and foreign exchange hedging

SLIDE 7

forward bookings

H1 2020 (Oct 2019 to Mar 2020) as at 18 Jan 2020

90% 82% 55% 38% 57% 74% 91% 85% 56% 38% 58% 75% Q1 Jan Feb Mar Q2 H1

H1 2019 H1 2020

SLIDE 8

H1 capacity outlook

H1 2020 (Oct 2019 to Mar 2020) as at 10 Jan 2020

Capacity change total short haul market Competitors on easyJet markets Capacity change easyJet markets easyJet capacity change 5.4% 3.6% 6.9% 14.5% 0.2% (0.2%) 0.5% 1.5%

H1 FY19 H1 FY20

SLIDE 9

Sustainability

Background

Strategy launched in November to take immediate

action on carbon emissions

Continued focus on driving efficiency
Reinventing aviation – Airbus, Wright Electric

partnerships

Carbon offsetting programme as an interim

measure Progress - Offsetting

Since 19 November we have offset the carbon

emissions from fuel used for all of our flights

We have offset 800,000 tonnes of carbon so far
9 million easyJet customers taken net zero carbon

flights Positive customer reaction

Those who have flown since the announcement,

and are aware of the policy, are 7ppts more satisfied with their experience than those who are unaware

11%

More customers say they will choose easyJet in the future*

*based on those who have flown and are aware that their flight was offset.

SLIDE 10

easyJet holidays - sUCCESSFULLY LAUNCHED

Successful launch on 28 November 2019
with c700 directly contracted hotels
to over 100 destinations
85% of customers cite great value, hotel choice and

website ease of use as the primary driver of booking

50% of bookings to directly contracted hotels
Strong demand on flexible dates
c50% of booking outside the traditional 7 or 14 night

stay

Performance is in line with expectations - to at least

break even in year

SLIDE 11

Outlook

Capacity (seats flown) > H1 c. 1.5% increase > FY c. 3% increase Revenue per seat at constant currency > H1 revenue per seat performance (excl. easyJet holidays):

mid to high single digit increase

Cost per seat at constant currency > H1 headline CPS excl. fuel (excl.easyJet holidays)

mid single digit increase

> FY headline CPS excl. fuel (excl. easyJet holidays):

low single digit increase (at normal levels of

disruption) FX / Fuel* > FY: c.£70 million positive movement from foreign exchange rates on headline PBT

> Circa £25m of this positive movement is part of the

total fuel bill

> FY: unit fuel costs £110 million to £170 million adverse > Expected total fuel cost c.£1.64 billion

> Includes c.£25m investment in carbon offsetting

H1 2020 0 loss befo fore tax – better than H1 2019 easyJ syJet et holidays ays – at t least st breake eakeven en in 2020

* Based on fuel spot price range of $600 - $700. Includes impact of ETS carbon scheme. Based on FX rates USD to GBP 1.33, EUR to GBP 1.18

Items in orange denote updated guidance

SLIDE 12

Appendix

SLIDE 13

Q1 Passenger statistics

Octobe

2020 2019 Change

Passengers(m) 8.8 8.6 2.4% Load Factor 91.6% 90.5% 1.1ppts

November ember 2020 2019 Change

Passengers(m) 6.2 6.2 (0.3%) Load Factor 90.8% 89.2% 1.6ppts

December cember 2020 2019 Change

Passengers(m) 7.2 6.8 6.0% Load Factor 91.3% 89.2% 2.1ppts