Ryanair Holdings Plc · EURONEXT:RYA
Ryanair — H1 FY23 Earnings Presentation
21 slides from Ryanair's earnings presentation, Nov 7, 2022
Slide 1: H1 Results – Nov. 2022
H1 Results – Nov. 2022
Slide 2: Europe’s Lowest Cost Airline Group
Eur ope’s Lowest Cost Air line Gr oup Lowest fare/lowest cost EU airline gp No. 1, Traffic: 168m (+13% pre Cov.) No. 1, Cust. service & reliability CDP “B” enviro. rating No. 1 EU ESG airline – Sustainalytics Strong (BBB) bal. sheet (S&P & Fitch) Fin. strength + lowest cost = L.T. winn
Slide 3: Europe’s No. 1 Coverage & Choice
E u r o p e ’s N o. 1 C ove r a g e & C h o i c e 88 bases 234 airports 37 countries 517 aircraft Over 2,400 routes 3,000 daily flights 225m pax p.a. by FY26 3
Slide 4: Europe’s Lowest Costs – Gap Widens
Eur ope’s Lowest Costs – Gap W idens € per pax RYA WIZ EZJ E’Wings LUV Staff/efficiency 7 6 10 20 55 Airport & Hand. 8 11 22 18 9 Route Charges 5 5 5 7 0 Own’ship & maint. 7 14 9 21 17 S & M other 4 3 7 28 20 Total (i) 31 39 (+26%) 53 (+71%) 94 (+203%) 101(+226%) The gap widens: (ii) H1 FY23 < 30 46
Slide 5: H1 FY23 Results
H1 FY23 Results H1 FY20 H1 FY22 H1 FY23 vs. FY22 (Pre C-19) Guests (m) 85.7 39.1 95.1 +143% Load Factor 96% 79% 94% +15pts Revenue €5.39bn €2.15bn €6.62bn +207% Op. costs €4.10bn €2.21bn €4.98bn +126% (i) PAT / (Net loss) €1.15bn €(48m) €1.37bn n/m EPS (€) 1.02 (0.04) 1.11 n/m (i) Excl. €107m except
Slide 6: Balance Sheet Strengthens
Balance Sheet Strengthens €’bn Mar. 22 Sep. 22 Assets 11.6 12.0 B737 fleet 92% unencum. Cash 3.6 4.6 Strong liquidity Total 15.2 16.6 Accruals 4.6 4.8 Debt 5.1 5.1 Net Debt €0.5bn (€1.5bn @ Mar. 22) S/H Funds 5.5 6.7 Total 15.2 16.6 6
Slide 7: Balance Sheet Strengthens
Balance Sheet Strengthens B737 fleet owned & 90%+ unencumbered V. strong liquidity - €4.6bn at 30 Sep. Net debt €0.5bn (incls. €0.9bn capex in H1) Strong cashflow to repay bonds & fund capex: − Mar. 23 - €850m bond (@ 1.125%) − Aug. 23 - €750m bond (@1.125%) − Gross capex FY24 - €2.2bn (subj
Slide 8: Current Developments
Cur r ent Developments Covid, Ukraine & recession overhang w. schedule S.22 reliability drives robust Q3 traffic & fare growth Pay restoration accel. to 1 Dec. (>90% pilots & c.c.) Airport & pay deals extended Fuel, €/$ & carbon well hedged – industry leading 51 B737 deliveries pre-peak
Slide 9: EU’s Most Reliable Airline S.22
EU’s most r eliable air line S.22 Over 3,000 daily flights S.22 cap. at 115% vs. pre Covid Record monthly traffic (95%+ LF) Luft, BA, EZJ, Wizz canx. flights RYA – EU’s fewest canx. ATC delays continue – hits OTP *Flight data FlightRadar24 and OAG 7 May-6 June 9
Slide 10: Strong Market Share Gains
S t r o n g M a r ke t S h a r e g a i n s * No. 1 No. 2 No. 3 Share gain Italy (40%) easyJet ITA +14pts Hungary (30%) Wizz Lufthansa +13pts Austria AUA (19%) Wizz +12pts Poland (36%) LOT Wizz +11pts Ireland (56%) Aer Lingus BA +7pts Belgium (31%) Brussels A. Tui Fly +5pts UK (22%) easyJet BA +2pts
Slide 11: Competitors Cut Capacity as RYA Grows
C o m p . C u t C a p a c i t y a s R YA G r o w s FY Mar. 23: Q1 Jun. 22 Q2 Sep. 22 Q3 Dec. 22 Q4 Mar. 23 RYA (168m) 113% 115% 110% 110% LUFT (113m) 74% 78% 80% 80% (i) IAG (103m) 78% 81% 87% 95% (i) AF (89m) 82% 85% 85% 90% EZJ (84m) 87% 88% 90% 90% (i) WIZ (53m) 130% 131% 135% 135% (i) Latest tra
Slide 12: Robust Q3 Demand
Robust Q3 Demand Strong Oct. mid-term & Xmas bookings Ltd Q4 visib (no Easter) Fragility remains (Cov / Ukraine / recess.) RYA’s lower costs thrive in a recession Discip. W.22 cap. (+110% vs 115% in S.22) Pay restoration accel. to Dec. – union agrees to 2026/2027 73 “Gamechangers” @ S.
Slide 13: Best Positioned to Thrive in Recession
Best positioned to thrive in r ecession RYA thrived in past recessions (Gulf W., 9/11 & GFC) RYA Pax (M) 67 60 59 Consumers switch to lowest cost provider 51 Competitors cut cap. / fail – RYA mkt. share grows 45 43 Fuel & €/$ well hedged – v. low debt 30 Airports & labour - medium term agr
Slide 14: Growth to 225m pax p.a. by FY26
Growth to 225m pax p.a. by FY26 M 225 Subject to COVID 220 Guests 205 210 x B737 Total “Gamechanger” order 185 180 More seats 168 Less fuel Lower costs 149 140 Addit. capac. for airports to restore traffic 97 Lower apt. & 100 hand. costs Lower fares 60 Traffic + profit growth 27.5 20 FY20 FY21 FY22
Slide 15: Summary
Summar y 168m pax (+13% on pre-Covid) Strong Q3 (Oct. mid-term & Xmas) Fragility remains (Covid, Ukraine, recession) FY23 guide – €1.0bn to €1.2bn net profit (pre-except.) Faster post-COVID growth: 225m pax p.a. by FY26 Strong BBB balance sheet = fleet & market share gains Fin. strengt
Slide 16: ESG Update
ESG update Cust. panel expanded & met in Oct. No.1 rated EU ESG airline – Sustainalytics SBTi commit. letter submitted in Jun. Net carbon zero by 2050 Retrofit 409 B737NG fleet with Scim. Winglets (-1.5% fuel) OMV to supply SAF in AUS, GER & CEE / Neste in AMS 16
Slide 17: Appendices
Y/ ea | ° - Giauda 2MALTA AIR 7 IRsie
Slide 18: Appendix: Industry Leading Hedge Position
Appendix: Industr y leading hedge position (i) (ii) (iii) Jet (bbl) Opex €/$ Carbon H2 FY23 87% ($70) 73% (1.15) 100% (€57) FY24 44 50% ($93) c.20% (1.08) 33% (€76) Capex €/$ 1.24 to end of Boeing order book (W.25) (i) Brent crude spot > $95 bbl. Conv. rate of 10 simplistically used to convert jet m
Slide 19: Appendix: Sustainalytics ESG Rating Upgraded
A ppendix: Sustainal ytics ESG rating upgraded EU airlines Risk Rating Rank Ryanair #1 23.8 (Med.) 1 IAG 27.2 (Med.) 2 Wizz 27.4 (Med.) 3 Lufth. 27.6 (Med.) 4 AFKLM 27.8 (Med.) 5 No. 1 rated EU airline easyJet 29.2 (Med.) 6 Large cap. Risk Rating Rank No. 1 rated large cap. airline Ryanair #1 23
Slide 20: Appendix: Environmental Initiatives / Update
A ppendix: Envir o. initiatives / update 20
Slide 21: Disclaimer
Disclaimer Certain of the information included in this presentation is forward looking and is subject to known and unknown 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 nat