Ryanair Holdings Plc · EURONEXT:RYA
Ryanair — Q1 2015 Earnings Presentation
21 slides from Ryanair's earnings presentation, April 2015
Slide 1: Q1 Results
// RYANAIR LOW FARES. MADE SIMPLE. Q1 Results
Slide 2: Europe's Favourite Airline
Eur ope’s Favourite Air line Europe’s Lowest Fares/Lowest Unit Costs Europe’s No 1, Traffic – 86m (No.1 or 2 in most markets) Europe’s No 1, Coverage – 69 Bases Europe’s No 1, C’mer Service – Low Fares/On-time/Bags/Canx – Always Getting Better/Digital rollout Fwd bookings & Ld factors risi
Slide 3: Europe's Lowest Fares
Eur ope’s Lowest Far es Avg. Fare % > Ryanair LOW Ryanair €46 (-4%) MEDIUM Norwegian €83 + 80% easyJet €84 + 83% Aer Lingus (s/h) €93 + 102% Air Berlin €121 + 163% HIGH Alitalia €148 + 222% Lufthansa €235 + 411% IAG €242 + 426% AF-KLM €300 + 552% Ave .Fare €163 Source: Latest Annual Reports
Slide 4: Europe's Lowest Unit Cost (Ex Fuel)
Eur ope’s Lowest Unit Cost (Ex Fuel) RYA EZY NOR AB1 LUV Spirit Staff €6 €9 €15 €17 €35 €19 Airport & hand €8 €21 €14 €27 €8 €6 Route charges €6 €6 €8 €8 €0 €0 Own’ship & maint. €7 €9 €21 €29 €16 €19 S & M + other €2 €7 €4 €26 €15 €15 Total €29 €52 €62 €107 €74 €59 % > Ryanair + 79% +114% +269% +155
Slide 5: No 1 For Coverage
N o 1 Fo r C ove r a g e 69 bases 186 airports 30 countries 1,600+ routes 86m c’mers p.a. 297 a/c – all 737-800’s Newest fleet (< 5 Yrs) 180 a/c order
Slide 6: Q1 Results
1 st Q u a r t e r Re s u l t s Jun 13 Jun 14 Traffic 23.2m 24.3m +4% Load Factor 82% 86% +4% Avg. Fare (incl. bag) €42 €46 +9% Rev. Per Pax €58 €62 +7% Revenue €1,342m €1,496m +11% Profit after Tax €78m €197m +152%
Slide 7: Strong Balance Sheet
Strong Balance Sheet Mar 14 Jun 14 Aircraft (inc. dep.) €5,570m €5,622m Cash €3,242m €4,483m Total €8,812m €10,105m Net Cash Net Cash €158m €643m Liabilities €2,442m €2,742m Debt €3,084m €3,840m S/H Funds €3,286m €3,523m Total €8,812m €10,105m
Slide 8: No 1 For Traffic
N o 1 Fo r Tr a f f i c C’mers (m’s) 112.0 110 104.0 100 96.0 90.0 90 86 81.7 80 70 61 62 60 54 52 50 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2014 Ryanair Growth Source: Latest traffic stats for 12 mths to Mar14 and company forecasts. 8
Slide 9: CCO Update
CCO Update Country (Cap m’s) No. 1 No. 2 No. 3 RYA Share UK (115) easyjet IAG 13% Germany (112) Luft Air Berlin 4% Spain (103) IAG Vueling 18% Italy (84) Alitalia easyJet 21% France (73) AF- KLM easyJet 6% Portugal (20) TAP easyJet 13% Belgium (17) SN Brussels Jetairfly 21% Ireland (16) Aer Lingus A
Slide 10: CMO Update
CMO Update Campaign Airport Campaign Better Brand #1 Rebrand #2 Distribution Google New Groups GDS 1 Corporate GDS 2 Flight Extended Business Product Winter 14 Summer 15 & new bases Product & new routes Quiet 2nd Free Service Fees Allocated PED Better Flights Bag Cut seats use Digital Better Website
Slide 11: COO Update
COO Update No. 1 efficiency, on-time/bags/canx On-time perf - Q1, RYA vs EZY 2013 2014 RYA EZY RYA EZY APR 93% 91% 91% 88% MAY 94% 90% 89% 84% JUN 92% 86% 87% 79% SITA (world tracer stats) confirm RYA No.1 for fewest lost bags Allocated seating – no punctuality impact French ATC strike (4t
Slide 12: HR Update
HR Update Challenges Opportunities Recruitment “Always Getting Better” – pilots, crew & engineers – Improved perception as employer Source tech skills Growth = opportunity – RYA Labs – Promotion/relocation, key motivator Protect employment model – 4 yr crew pay/roster deals (all bases) – F
Slide 13: Legal & Regulatory Update
Le gal & Re gulator y Update State aid – Pressure on EU – less aid to flag carriers (Malev, Spanair, Cyprus, Alitalia) – CRL – EC ‘aid’ decision 2004 (overturned in 2008) – BTS, TMP, MRS, SXF, AAR, NRN – EC ‘no aid’ decisions (MEIP) – FNI, PUF, ANG – appealing EC ‘aid’ decisions – 14 pending inves
Slide 14: World's Highest Rated Airline
Wor ld’s Highest Rated Air line BBB+ corporate rating from S&P & Fitch – Stable outlooks – “a-” anchor (S&P), notched due to pos. CAPEX & s’holder returns – Industry leading liquidity, cost base & cash generation Low cost capital market access – €850m debut issuance, 7yr, 1.875% fixed coupon – 7
Slide 15: Outlook
Outlook Q1 Load factor up 4% FY’15 unit costs flat - ex fuel up 4% (apt’s & hdlg, S&M, leases & wint o’ship) - Fuel 90% hedged, €50m saving (less de-icing) Improving c’mer service & digital experience driving demand Yield inc. 2% to €47 - Q1 traffic up 4%, fares up 9% (Easter effect) - Q2 tr
Slide 16: Summary
Summar y Lowest fare, lowest cost in Europe 180 a/c order drives growth Distribution, product & business schd’s open new markets Strong fwd bookings & higher load factors Strong H1 but uncertain H2 yields as growth ramps up Full year guidance raised, €620m - €650m €520m spec. div Q4 –
Slide 17: Appendices
// RYANAIR LOW FARES. MADE SIMPLE. Appendices
Slide 18: Hedging Position
Hedging Position FY’15 Fuel 90% hedged - $950pmt. USD 1.34 (approx. €50m saving) Cost/Tonne FY14 FY15 Change Q1 $965 (Act) $947 (Act) -2% Q2 $965 (Act) $944 (90%) -2% Q3 $990 (Act) $960 (90%) -3% Q4 $985 (Act) $959 (90%) -3% H1’16 Fuel 55% hedged - $950 pmt. USD 1.37 (approx. 2%/c’mer) Cost/Tonn
Slide 19: 69 Base Network – Platform For Growth
6 9 B a s e N e t wo r k – P l at fo r m Fo r G r ow t h
Slide 20: Fleet and Traffic Growth to FY19
F l e e t a n d Tr a f f i c G r ow t h t o F Y 1 9 Summer FY C’mers C’mer Peak A/C (m’s) Growth S 13 303 81.7 + 3% S 14 304 86.0 + 5% S 15 318 90.0 + 5% S 16 349 96.0 + 7% S 17 388 104.0 + 8% S 18 426 112.0 + 8% BBB+ (Stable) rating from S&P & Fitch assists low cost a/c financing
Slide 21: 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