Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — Q1 2021 Earnings Presentation
19 slides from Wizz Air's earnings presentation, Jul 29, 2020
Slide 1: Wizz Air Holdings Plc Q1 F21 Results
WIZZ AIR HOLDINGS PLC Q1 F21 RESULTS 29 JULY 2020
Slide 2: Q1 F21 Highlights
Q1 F21 | HIGHLIGHTS Focused on liquidity and operational recovery Strong cash position at EUR 1.6bn Robust cost and cash saving programs delivered Network adjustment: trimming old network and creating a new network Capitalizing on new opportunities: 8 bases and 200+ new routes launched Capacity ramp
Slide 3: Ramp-up & Expansion
Q1 F21 | RAMP-UP & EXPANSION Passengers 707k (-93.2%) Aircraft 123 (+9) Airports 164 (+17) Bases 33 (+8) Countries 46 (+2) ASK GROWTH +16% PAGE 3 Figures for the three months ended 30 June 2020
Slide 4: COVID-19 Operating Context
Q1 F21 | COVID-19 OPERATING CONTEXT Widespread travel bans and restrictions across Europe in Q1 March April May June July Poland Significant restrictions Romania Restrictions Hungary No Bulgaria restrictions UK Austria Large-scale state intervention & subsidies for legacy carriers PAGE 4
Slide 5: Revenue & Cash Protection
Q1 F21 | REVENUE & CASH PROTECTION Q1 F21 Q1 F20 Change RASK Revenue (€m) 90.8 691.2 (86.9)% +13.6% Underlying EBITDA (€m)* 8.9 187.2 (95.2)% Underlying EBITDA margin (%) 9.8% 27.1% (17.3)ppts Cost Statutory net profit (€m)* (108.0) 72.4 n.m. -74.0% Statutory net profit margin (%) n.m. 10.5% n.m. Un
Slide 6: Maximising Return on Capacity
Q1 F21 | MAXIMISING RETURN ON CAPACITY Q1 F21 1.3 Capacity (m seats) Key achievements -88.5% • Maximizing return on flights Q1 F20 11.1 • Load factor drop offset by smart Q1 F21 55.5% Load Factor pricing & higher ancillary revenues -38.2ppts Q1 F20 93.7% • Strong revenue per seat: +14.1% 0.0% 20.0%
Slide 7: Strong Ancillary Generation
Q1 F21 | STRONG ANCILLARY GENERATION +17.2 EUR Exceptional effects: 47.3* • Low passenger numbers distort unit revenue on certain revenue streams 30.1 Underlying strength: • Baggage and bundle sales up • Solid uptake in flexibility products • Continued focus on merchandising Q1 F21* Q1 F20 PAGE 7 *
Slide 8: Active Cost Management
Q1 F21 | ACTIVE COST MANAGEMENT Closing the gap between cost and capacity drop • Crew cost reduction & lower headcount -74.0% • Airport deals (re-)negotiated -88.5% • Supplier negotiations Cost decrease Capacity decrease PAGE 8
Slide 9: Minimising Cost
Q1 F21 | MINIMISING COST CASK €cents Absolute cost €m Change Q1 F21 Q1 F20 Q1 F21 Q1 F20 Fuel 3.30 1.12 68.7 202.2 (66.0)% Staff costs 1.41 0.32 29.3 58.2 (49.7)% Distribution & marketing 0.21 0.07 4.4 11.7 (62.4)% Maintenance, materials & repairs 0.98 0.24 20.5 43.5 (52.9)% Airport, handling & en-r
Slide 10: Investment-Grade Balance Sheet
Q1 F21 | INVESTMENT-GRADE BALANCE SHEET EUR 1.6bn Cash* Key Results 1,588 1,496 • June 30th position includes BoE CCFF: £300m 182 186 • Average Q1 cash burn rate of around €80m per month Key Drivers • Significant cost reductions on all line items 1,406 1,311 • Cash-contributing flying • Continued pr
Slide 11: Best Positioned: Our Ramp-up Principles
BEST POSITIONED: OUR RAMP-UP PRINCIPLES Reduced operating cost and cash burn Cash-contributing flying Maintain balance sheet strength Strong network expansion, 200+ new routes Broadening competitive advantage PAGE 11
Slide 12: Taking Advantage of Market Opportunities
TAKING ADVANTAGE OF MARKET OPPORTUNITIES New bases & additional aircraft Frequency reduction on existing routes steers demand ST. PETERSBURG 2 Redeployment of excess capacity DORTMUND 3 200+ new routes & 22 aircraft (re-)deployed LONDON LUTON +1 LVIV 1 BACAU 2 VARNA +1 Positioning for further growth
Slide 13: Wizz Air Abu Dhabi: Launch on Track
WIZZ AIR ABU DHABI: LAUNCH ON TRACK Start operations on October 1st 2020 11 ROUTES TO 10 COUNTRIES 6 based aircraft in the first 6 months Contributing to and stimulating tourism Developing Abu Dhabi’s connectivity Established geographies & pioneering new markets Special aircraft livery & Arabic webs
Slide 14: Unique Cabin Crew-to-Captain Programme
UNIQUE CABIN CREW-TO-CAPTAIN PROGRAMME Pilot training programme for cabin crew: unique in the industry Nurture talent within the organisation Supports commitment to increase female pilot representation Tailored work and study schedule; 40 months of training Comprehensive financial, travel and accomm
Slide 15: Outlook
OUTLOOK Uncertainty around COVID-19 makes F21 guidance impractical at this stage Operational ramp-up on track: Currently flying 70% of capacity Focus on balance sheet & cash-contributing flying Increase underlying ancillary/passenger by EUR 0.50-EUR 1.0 Improved delivery schedule to support Summer ‘
Slide 16: Closing Comments
CLOSING COMMENTS 1. Short-term objective: Managing uncertainty Maintain liquidity and keep momentum Minimize cost and maximise return by adapting capacity 2. Long-term objective: Widening the competitive gap Focus on profitable, scalable market opportunities Safeguard investment-grade balance sheet
Slide 17: Disclaimer
WIZZ | DISCLAIMER This presentation has been prepared by Wizz Air Holdings Plc (the “Company”). By receiving this presentation and/or attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations. This presentation is
Slide 18: Appendix: Hedge Program
APPENDIX: HEDGE PROGRAM EUR/USD Jet Fuel 100% 78% HEDGE COVERAGE 23% 31% FY21 FY22 FY21 FY22 8 months 10 months 8 months 10 months Capped rate $1.17 $1.15 $623 $554 Floor rate $1.13 $1.10 $568 $503 Source: As of 9 November 2016 PAGE 18 Source: Company Information
Slide 19: Appendix: Fleet Plan
APPENDIX: FLEET PLAN 275 254 20 18 225 201 12 6 195 179 168 160 137 92 115 137 57 112 121 22 2 8 93 41 79 38 41 41 67 26 41 16 6 41 37 4 6 6 25 15 7 22 30 63 63 67 72 68 40 72 56 40 32 17 13 5 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21E FY 21/22E FY 22/23E FY 23/24E FY 24/25E FY 25/26E FY