Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — H1 F23 Earnings Presentation
24 slides from Wizz Air's earnings presentation, Nov 2, 2022
Slide 1: Wizz Air Holdings Plc H1 F23 Results
WIZZ AIR HOLDINGS PLC H1 F23 RESULTS 2 November 2022
Slide 2: H1 F23 Highlights
H1 F23 | HIGHLIGHTS Q2 revenue up +40% vs. Q2 F20, overall H1 up +30% vs. H1 F20 Unit revenue grew by +11% in Q2 vs F20 compared to -10% in Q1 vs F20 Q2 EBITDA €374m, despite higher input costs, H1 EBITDA €218m H1F23 fuel unit cost 84% up vs H1 F20 Disruptions drove H1F23 ex-Fuel CASK up 18%, but im
Slide 3: H1 F23 Key Business Metrics
H1 F23 | KEY BUSINESS METRICS Versus H1 F22 Passengers 26.5m (+112%) Aircraft* 168 (+24) Airports 200 (+5) Bases** 38 (-6) Countries 53 (+1) 2022 Most World Sustainable Low- Finance Cost Airline 2021 Airline of the Aviation 100 Year Europe’s youngest CH-Aviation fleet (+100 aircraft) *end Sept 2022
Slide 4: Q2 F23 Leading CEE Market Share
Q2 F23 | LEADING CEE MARKET SHARE Q2 F23 Q2 F20 70% 61% 60% 57% 50% 48% 41% 40% 38% 37% 33% 30% 31% 30% 26% 23% 23% 24% 22% 22% 19% 20% 19% 20% 17% 18% 15% 14% 10% 11% 9% 10% 5% 6%6% 5% 5% 3% 3% 0% CEE Albania Austria BIH Bulgaria Cyprus UK Georgia Hungary Italy Lithuania Moldova N. Poland Romania S
Slide 5: H1 F23 Financial Performance
H1 F23 | FINANCIAL PERFORMANCE H1 F23 H1 F22 Change Revenue (€m) 2,193.8 880.4 149.2% EBITDA (€m) 217.8 164.3 32.5% Operating cost (€m) 2,257.6 932.3 142.2% Operating (loss) (€m) (63.8) (51.9) 22.9% Net foreign exchange (loss)/ gain (€m)* (269.2) (26.8) n.m. Reported (loss) (€m) (384.3) (120.9) 217.
Slide 6: H1 F23 Ex-Fuel CASK
H1 F23 | EX-FUEL CASK HIGH IMPACT DUE TO DISRUPTIONS AND REDUCED UTILIZATION CASK (€ cent) Change H1 F23 H1 F22 H1 F20 vs H1 F20 Fuel 2.11 0.99 1.15 84.1% Staff costs 0.37 0.37 0.31 29.1% Distribution & marketing 0.09 0.08 0.06 50.0% Maintenance, materials & repairs 0.24 0.22 0.23 4.3% Airport, hand
Slide 7: H1 F23 Cash Progression
H1 F23 | CASH PROGRESSION € million 1,583 1,630 135 153 1,379 Q2 further built cash position 162 Strong operations in Q2 1,430 1,495 Larger scale drives working capital inflows 1,217 PDP inflow of ~€25m during H1 Mar-22 Jun-22 Sep-22 Restricted cash Free cash -Cash refers to total cash and comprises
Slide 8: H1 F23 Revenue Performance
H1 F23 | REVENUE PERFORMANCE In € per PAX +35% PRICING POWER AMID RISING VOLUMES 43 45 +3% 33 31 ✓ Ticket revenue per pax +3% vs H1 F20 Ticket (from -12.1% vs F20 in Q1 to +12.3% vs F20 in Q2) ✓ Ancillary revenue per pax +18% vs H1 F20 (from +13.8% vs F20 in Q1 to +21.4% vs F20 in Q2) H1 F20 H1 F21
Slide 9: Focus on Low-Cost Fundamentals
FOCUS ON LOW-COST FUNDAMENTALS 1. Trading out of disruptions 2. Restoring utilization 3. Continued fleet renewal 4. Attractive fleet financing 5. Network developments 6. Sustainability leadership PAGE 9
Slide 10: Trading Out of Disruptions
0.0% 2.0% 4.0% 6.0% 10.0% 12.0% 14.0% 16.0% 8.0% 2022-04-01 2022-04-04 cancellations 2022-04-07 % of operational 2022-04-10 2022-04-13 2022-04-16 2022-04-19 2022-04-22 2022-04-25 2022-04-28 2022-05-01 2022-05-04 2022-05-07 2022-05-10 2022-05-13 2022-05-16 2022-05-19 2022-05-22 2022-05-25 2022-05-28
Slide 11: Returning to Proven Utilization Levels
RETURNING TO PROVEN UTILIZATION LEVELS AND HIGH LEVELS OF CUSTOMER SERVICE vs H1 F22 H1 F23 Record Flights Operated Flights 141,108 (amidst industry-wide disruptions) +75.3% ✓ Adjusted flight volumes and schedules ✓ Redesigned flight duties Load factor 87.0% ✓ Streamlined airport and AOG processes +
Slide 12: Continued Fleet Renewal
CONTINUED FLEET RENEWAL ✓ 168 aircraft; 21 total A321NEO delivered; six A320CEOs retired from fleet ✓ 4.6-year average fleet age, 216 fleet average seat count (vs 209 H1 F20) ✓ Purchase rights for +75 A321NEO exercised (deliveries in 2028-2029) ✓ Airbus late deliveries result in nine fewer aircraft
Slide 13: Attractive Fleet Financing
ATTRACTIVE FLEET FINANCING Summer ‘22 financing tender +15% participants vs last year 2/3 of allocations to Japanese and 1/3 to Chinese investors Increasing our natural hedge: 61% of allocation will have EUR rents 94% of existing fleet are subject to fixed interest rate structures Commitment obtaine
Slide 14: Network Developments
NETWORK DEVELOPMENTS DIVERSIFIED NETWORK WITH YEAR-ROUND PASSENGERS ✓ Developing core Central and Eastern European markets ✓ In Romania, Blue Air capacity backfilled, and new base ✓ Third largest airline in Italy ✓ More counter-seasonal frequencies and routes, including Middle and Near East ✓ Focus
Slide 15: Fleet Growth by Choiceful Expansion
FLEET GROWTH BY CHOICEFUL EXPANSION Matching fleet with market opportunity +4 +39 95 99 50 Core 11 Expansion S19 S22 S19 S22 Georgia Lithuania Latvia Moldova Cyprus Serbia 1% Ukraine Bosnia 4% Romania 1% 3% 5% 2% 4% 5% 25% Austria 8% Macedonia 8% Italy 39% 8% Bulgaria UAE 10% 11% 24% UK ex LGW 15% P
Slide 16: Romania Case Study
ROMANIA CASE STUDY WIZZ AIR START OF WIZZ OPERATIONS CEASED LOCAL TEAM OPERATIONS 2006 1,400+ Sept 2022 CARRIED 193 ROUTES TO PASSENGERS CARRIED PASSENGERS 21 countries 55M 1.6M in 2020, 5m in 2017 FLEET JOBS SUPPORTED 32 aircraft 6,000+ FLEET 8 bases: 14 aircraft in 2020 Bucharest, Bacau, Cluj-Napo
Slide 17: Go East Expansion
GO EAST EXPANSION Growing Saudi tourism market, supported by ‘Vision 2030’ (tripling pax traffic), with low LCC penetration Phase 1: • 20 inbound routes leveraging CEE markets • First flight from Rome to Dammam on 28 September 2022 Phase 2: • MoU with Ministry of Tourism Abu Dhabi network as a templ
Slide 18: Sustainability Update
SUSTAINABILITY UPDATE WIZZ AIR’S ENVIRONMENTAL FOCUS • SAF MoU with Mabanaft/P2X Europe • Joined EC’s Alliance for Zero-Emission Aviation • “Most Sustainable Low-Cost Airline in 2022” by World Finance magazine • Female gender diversity on management team moves to 36% • New board committee: Safety, S
Slide 19: H2 Outlook
H2 OUTLOOK ASK growth expected c.35%+ vs H2 F20* Maintain buffer to flex capacity; fleet utilisation around 11 hours/day RASK improvement for H2 expected in the mid-single digits vs F20 H2 Ex-Fuel CASK single digit increase compared to H2 F20 Regain Fuel CASK competitive position in April 2023 Recov
Slide 20: Summary
SUMMARY ULCC model prevails – even more so in tougher economic environment Post-Covid-19 recovery in F23 to continue in F24 and F25 Pricing platform proven in Q2 F23, pace of network maturity enhanced Cost platform restored by F24: 1) on Fuel CASK through competitive hedge levels and pricing 2) on e
Slide 21: Wizz 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 22: Q2 F23 Financial Performance
Q2 F23 | FINANCIAL PERFORMANCE Q2 F23 Q2 F22 Change Revenue (€m) 1,385.0 681.3 103.3% EBITDA (€m) 373.7 182.2 105.1% Operating cost (€m) 1,164.3 624.6 86.4% Operating income/ (loss) (€m) 220.7 56.7 289.1% Reported income/ (loss) (€m) 68.2 (6.5) n.m. Net foreign exchange (loss)/ gain (€m)* (129.4) (4
Slide 23: Q2 F23 Unit Cost
Q2 F23 | UNIT COST CASK (€ cent) Cost (€m) Q2 F23 Q2 F22 Q2 F20 Q2 F23 Q2 F22 Change Fuel 2.05 1.04 1.16 524.7 193.4 171.3% Staff costs 0.38 0.33 0.28 98.5 61.6 59.9% Distribution & marketing 0.10 0.07 0.06 26.2 13.9 88.5% Maintenance, materials & repairs 0.24 0.09 0.21 61.7 16.9 265.1% Airport, han
Slide 24: Appendix: Hedge Program
APPENDIX: HEDGE PROGRAM EU/UK ETS Jet Fuel * 258% 100% 267% 54% 28% HEDGE COVERAGE F23 F24 F23 6 months 12 months 6 months Capped rate $1,367 $1,063 Floor rate $1,104 $924 *inclusive of free allowances PAGE 24