Ryanair Holdings PLC · EURONEXT:RYA
Ryanair — Q3 2014 Earnings Presentation
19 slides from Ryanair's earnings presentation, Feb 3, 2014
Slide 1: Q3 Results
3 February 2014 Q3 Results
Slide 2: Europe's Only Ultra Low Cost Carrier (ULCC)
EUROPE’S ONLY ULTRA LOW COST CARRIER (ULCC) Lowest Fares/Lowest Unit Costs in Europe No fuel surcharges No 1 Traffic – 81.5m No 1 Coverage – 1,600+ Routes from 65 Bases No 1 C’mer Service – Most on time flights – Fewest mishandled bags – Fewest cancellations – New c’mer service initiatives and digit
Slide 3: Lowest Fares
LOWEST FARES Avg. Fare % > Ryanair LOW Ryanair €48 HIGH easyJet €84 + 75% Norwegian €86 + 79% Aer Lingus (s/h) €94 + 96% Air Berlin €120 + 150% Alitalia €148 + 208% Lufthansa €211 + 340% AF-KLM €261 + 444% IAG €282 + 488% Source: Latest company annual reports Europe’s favourite low fares airline © T
Slide 4: Lowest Unit Costs
LOWEST UNIT COSTS RYA EZY NOR AB1 LUV Spirit Staff €5 €9 €16 €15 €34 €16 Airport & handling €8 €21 €16 €37 €9 €5 Route charges €6 €6 €8 €8 €0 €0 Ownership & maint. €8 €9 €17 €26 €17 €16 S & M + other €2 €7 €10 €20 €15 €1 Total €29 €52 €67 €107 €75 €50 % > Ryanair + 79% +131% +269% +159% +72% Source:
Slide 5: Worlds Favourite Airline
WORLDS FAVOURITE AIRLINE Europe’s favourite low fares airline © This presentation is subject to copyright and may not be copied or used without the express prior consent of Ryanair 5
Slide 6: No.1 for Coverage
NO.1 FOR COVERAGE 65 Bases 186 Destinations 29 Countries 1,600+ Routes 1,600+ Daily Dep’s 81.5m Customers p.a. 298 Aircraft – All 737-800’s Newest Fleet (< 5 yrs) 175 Aircraft Order Europe’s favourite low fares airline © This presentation is subject to copyright and may not be copied or used without
Slide 7: No.1 for Customer Service
NO.1 FOR CUSTOMER SERVICE SERVICE PERFORMANCE Lowest Fares Average Fare – €48 No.1 On Time Flights 93% Flights on time Fewest Lost Bags 0.32 per 1,000 c’mers Fewest Cancelations <1 per 10,000 flights Fewest Complaints 0.73 per 1,000 c’mers Europe’s favourite low fares airline © This presentation is
Slide 8: Customer Service & Digital Rollout
CUSTOMER SERVICE & DIGITAL ROLLOUT DELIVERED UPCOMING Free Ryanair mobile app Oct 13 Mobile boarding pass Mar 14 New website (17 to 5 clicks) Nov 13 New website/fare finder Apr 14 24hr “grace period” Nov 13 Global dist. sys. (GDS) May 14 “Quiet flights” Nov 13 Business and family fares Jun 14 “My Ry
Slide 9: Growth Deals at Existing Bases
GROWTH DEALS AT EXISTING BASES LONDON, STANSTED DUBLIN 10 yr lower cost & more efficient facility deal Govt. scrap €3 travel tax – Apr’14 13m to 20m c’mers in 7 yrs 700k new c’mers @ DUB 13 new routes & 25 increased freq’s. 1m new c’mers @ 3 Irish apts 25% of traffic growth to FY’19 21 new routes &
Slide 10: Growth at New Bases
GROWTH AT NEW BASES Italy Other Primary Airports Alitalia cuts capacity Brussels, Zav FCO base (Dec 13) – 4 a/c, 10 routes – 1 a/c, 5 routes – 1.3m c’mers in FY’15 – 1.5m c’mers – No. 1 in Belgium (over 6m p.a.) CTA, SUF, PMO bases Lisbon – 5 a/c, 28 routes (10 new) – 1 a/c, 9 routes – 3.9m c’mers –
Slide 11: Q3 Financial Highlights
Q3 FINANCIAL HIGHLIGHTS Dec 12 Dec 13 Change Traffic 17m 18m + 6% Load Factor 81% 82% + 1% Avg. Fare (incl. bag) €43 €39 - 9% Rev. Per C’mer €56 €53 - 6% Revenues €969m €964m 0% Profit/(Loss) after Tax €18m (€35m) - Europe’s favourite low fares airline © This presentation is subject to copyright and
Slide 12: Strong Balance Sheet
STRONG BALANCE SHEET Mar 13 Dec 13 Aircraft (inc. dep.) €5,384m €5,468m Cash €3,559m €2,825m Net Debt €365m Total €8,943m €8,293m (after Net Cash €414m €61m buybacks) Liabilities €2,172m €1,738m Debt €3,498m €3,190m Net Cash @ Mar14 S/H Funds €3,273m €3,365m Total €8,943m €8,293m Europe’s favourite
Slide 13: Outlook
OUTLOOK Pricing soft but no longer in decline FY’14 traffic stronger - up to 81.5m Q4 yield down 8% est. Q4 sect. length adj. unit costs (ex fuel) down 9% est. FY’14 guidance unchanged €500m to €520m FY’15 fuel 90% hedged, €80m cost saving FY’15 fwd bookings sig. ahead of py Europe’s favourite low f
Slide 14: Summary
SUMMARY Structural cost & price leadership – gap widening Airports compete for RYR growth as comp. restructure New deals STN, DUB, MOD, FCO, CTA, SUF, PMO, ZAV, LIS, ATH & SKG 175 new a/c facilitates growth to 110m p.a. C’mer service & digital strategy drive fwd bookings €484m buybacks by Mar’14 - f
Slide 15: Appendices
3 February 2014 Appendices
Slide 16: 65 Base Network
65 BASE NETWORK Europe’s favourite low fares airline © This presentation is subject to copyright and may not be copied or used without the express prior consent of Ryanair 16
Slide 17: Strong Market Positions
STRONG MARKET POSITIONS No. 1 No. 2 No. 3 Cap. 2013 RYA Share Spain IAG Vueling 103m 18% Italy Alitalia easyJet 84m 21% Belgium Brussels Air Jetairfly 17m 21% Ireland Aer Lingus AF-KLM 16m 40% Poland LOT Wizz 14m 27% UK IAG easyJet 115m 13% Portugal TAP easyJet 20m 13% Morocco RAM easyJet 11m 13% Ge
Slide 18: Low Fare Penetration – Growth Potential
LOW FARE PENETRATION – GROWTH POTENTIAL Avg. 53% penetration (and rising) in developed low fare markets: – UK (57%) – Spain (53%) – Italy (49%) Sig. low fare growth pot. FIN LAT 86% NOR 24% – Germany (24%) 39% SWE 36% EST LTH 65% – Sweden (36%) BEL NED DEN 35% CZ REP 31% 35% 32% – France (26%) 31% A
Slide 19: Disclaimer
DISCLAIMER Certain of the information included in this presentation is forward looking and is subject to important risks and uncertainties that could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. By their nature, for