Ryanair Holdings PLC · EURONEXT:RYA
Ryanair — Q1 FY2019 Earnings Presentation
17 slides from Ryanair's earnings presentation, July 2018
Slide 1: Q1 Results – July 2018
RYANAIR LOW FARES. MADE SIMPLE. Q1 Results — July 2018
Slide 2: Europe's Favourite Airline
Eur ope’s Favourite Air line Lowest fare/lowest cost carrier No 1, Traffic – 139m guests (+7%) No 1, Coverage – 37 States/86 Bases/223 Apts No 1, Service – 2018 AGB 210 MAX order = grow to 200m p.a. by FY24 FY19 PAT guidance unchanged €1.25bn - €1.35bn 2
Slide 3: Europe's Lowest Fares
Eur ope’s Lowest Far es Avg. Fare Change % > Ryanair Ryanair €39 -3% Wizz €46 -5% +18% easyJet €60 -2% +54% Norwegian €80 +4% +105% IAG €193 -2% +395% Lufthansa €196 -3% +403% AF/KLM €213 -1% +446% Avg Competitor Fare €131 +236% (Source: FY results/Annual Reports) 3
Slide 4: Europe's Lowest Costs
Eur ope’s Lowest Costs € per pax (ex-fuel) RYA WIZ EZJ NOR EUROW’ LUV Staff/efficiency 6 5 9 17 18 50 Airport & Hand. 7 11 21 17 34 9 Route Charges 5 5 6 7 7 0 Own’ship & maint. 6 16 8 34 23 16 S & M other 3 3 7 9 29 18 Total 27 40 51 84 111 93 %> Ryanair +48% +89% +211% +311% +244% (Source: FY resu
Slide 5: Europe's No. 1 Coverage
E u r o p e ’s N o. 1 C ove r a g e 86 bases 223 airports (Mainly primary) 37 states 1,850 routes 139m guests (+7%) 455 x B737 fleet 210 x B737-MAX on order 5
Slide 6: Europe's No. 1 Market Share
E u r o p e ’s N o. 1 M a r ke t S h a r e ( 1 5 % ) Country (Cap m)* No. 1 No. 2 No. 3 Share UK (137) EZJ BA 19% Spain (135) Vueling Iberia 19% Germany (128) Luft EZJ 9% CEE (119) Wizz Aegean 15% Italy (98) Alitalia EZJ 28% Portugal (29) TAP EZJ 20% Poland (23) LOT Wizz 29% Ireland (19) Aer Lingus
Slide 7: Q1 Results
Q1 Results June 17 June 18 Guests (m) 35.0 37.6 +7% Load Factor 96% 96% - Avg. fare (incl. bag) €40 €39 -4% Revenue (bn) €1.91 €2.08 +9% Cost Per Pax €42 €45 +10% PAT (m)* €397 €319 -20% Net Margin 21% 15% -6 pts EPS (cent) 32.7 26.6 -18% *(Excl. except item -€9m share of assoc. loss) 7
Slide 8: Q1 Balance Sheet
Q1 Balance Sheet Mar 18 June 18 (€m) (€m) Assets (incl. a/c) 8,682 9,159 Cash 3,680 3,635 Total 12,362 12,794 Net Debt Net Debt €283m €259m Liabilities 3,930 4,072 After €462m capex €265m b/back Debt 3,963 3,894 S/H funds 4,469 4,828 Total 12,362 12,794 8
Slide 9: Current Developments
Cur r ent Developments Weaker fares – weather, World Cup, & pilot strikes Stronger ancillaries – Priority Board & Reserved Seats ATC staff shortages/strikes - 2,500 flt canx Q1 (450,000 guests) - 40% increase in EU261 costs Oil rises to $80pbl – more failures in W18 Ire Pilot strikes Jul (
Slide 10: Unions – Strikes
U n i o n s – S t r i ke s 90% Pilots agreed 20% pay increases in 2018 45% Pilots covered by union agreement – UK & Italy 66% Cabin Crew covered by union agreement – UK, Italy & Ger Active engagement with other unions – Spa, Port Just 25% Dub pilots – strikes in Jul – achieved nothing – mo
Slide 11: MAX-200 Gamechanger
MAX-200 “Gamechanger” 210 orders (135 firm, 75 options) First 5 MAX’s Spring 19 4% more seats, 16% fuel savings 40% reduced noise emissions Drives unit cost savings – MAX 10% of fleet FY20 11
Slide 12: FY19 Guidance
FY19 Guidance Traffic +7% to 139m Q2 fares +1%, H2 fares flat Strikes damage yields not traffic Review winter a/c & base allocation Fuel +€430m, Ex Fuel Costs +6% PAT guidance €1.25bn - €1.35bn Subject to close in fares, crew strikes, ATC staff shortages/strikes 12
Slide 13: Appendices
Appendices
Slide 14: Fuel costs up in FY19
Fuel costs up in FY19 Jet (met. tonne) FY18 FY19 FY20 Q1 $508 $547 $692 (35%) Q2 $494 $547 (90%) $689 (35%) Q3 $476 $624 (90%) - Q4 $491 $625 (90%) - FY $493 $583 (90%) $690 (19%) €/$ FY18 FY19 FY20 Opex hedge $1.12 $1.15 (90%) $1.24 (65%) Over €430m fuel headwind in FY19* – €150m vol growth & €280m
Slide 15: Growth to 200m guests p.a.
Growth to 200m guests p.a. Guests 200 200 180 189 175 160 162 140 152 139 130 120 130 100 431 455 478 513 540 575 585 105 99 80 80 60 FY18 FY19 FY20 FY21 FY22 FY23 FY24 15
Slide 16: CEE Market Share
C E E M a r ke t S h a r e Ryanair (m) Wizz Air (m) Poland 6.7 4.8 Greece 3.6 0.2 Hungary 1.4 2.3 Romania 1.3 4.0 Bulgaria 1.0 1.4 Lithuania 1.0 0.8 Czech Republic 1.0 0.2 Latvia 0.6 0.3 Slovakia 0.6 0.3 Croatia 0.3 0.1 Serbia 0.1 0.5 Estonia 0.1 - Macedonia - 0.8 Ukraine - 0.7 Bosnia and Herzegovin
Slide 17: 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