Slide 1: FY22 Results
FY22 Results 29 November 2022
Slide 2: Transformation delivering
Transformation delivering Step-changed Up-gauging Optimised network easyJet holidays ancillary revenues underway Enhanced product Secured delivery of 56 2.1m seats 1.1m customers offering additional A320neo redeployed in FY22 served family aircraft Fully embedded Won 18 daily slots at £38m PBT deliv
Slide 3: Financial review
Financial review Kenton Jarvis – CFO
Slide 4: Key performance indicators FY22
Key performance indicators fy22 FY22 FY21 Change1 Seats flown (m) 81.5 28.2 189% Passengers (m) 69.7 20.4 242% Load factor (%) 85.5% 72.5% 13ppt Average sector length (km) 1,193 1,184 1% Airline revenue per seat: (£) 66.23 50.54 31% Airline EBITDAR cost ex fuel per seat: (£) 44.09 56.62 22% Airline
Slide 5: FY22 KPIs by quarter
FY22 Kpis by quarter FY 2022 Passengers (m) FY 2021 Seats flown (m) 30 30 30 26.3 26.3 24.9 24.9 25 24.3 25 25 22.0 20 17.3 20 15.5 20 17.3 14.8 15.5 15 14.8 13.4 15 15 11.9 11.5 10 10 10 4.4 4.5 5 2.1 4.4 4.5 5 5 0 2.9 3.0 2.1 1.2 Q1 Q2 Q3 Q4 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Load Factor (%) Airline reve
Slide 6: Financial performance
Financial performance FY22 FY21 Change1 £m £m Passenger revenue 3,816 1,000 282% Ancillary revenue 1,585 424 274% Holidays revenue2 368 34 982% Group revenue 5,769 1,458 296% Headline costs: Airline EBITDAR Costs ex fuel (3,596) (1,595) (125%) Fuel (1,279) (371) (245%) Holidays EBITDAR costs2 (325)
Slide 7: Airline revenue per seat
Airline revenue per seat Reported RPS 31% FY22 FY21 FY19 RPS @ CC3 33% Passenger Yield1 £54.75 £48.94 £52.15 Ancillary Yield2 £22.73 £20.78 £14.32 Total Yield £77.48 £69.72 £66.47 > Primary network delivers passenger yield uplift vs FY19 (+5%), despite multiple headwinds demonstrating: ▪ Strength of
Slide 8: Airline Headline cost per seat
Airline Headline cost per seat Headline CPS @ CC = (25%) FY21 Disruption3 Other2 headline cost per seat excl. balance sheet revals1 1) FY21 headline CPS (£90.41) + balance sheet revals (£0.32) = FY headline cost per seat excl. balance sheet revals (£90.73) 2) Other includes selling and marketing, ot
Slide 9: Headline Impact of fuel & currency
Headline Impact of fuel & currency Fuel impact FY22 FY21 Change1 Fuel $ per metric tonne Market price 1,063 554 (509) Effective price 705 631 (74) US dollar rate Market price 1.24 1.37 (13 cents) Effective price 1.33 1.35 (2 cents) Actual cost of fuel £ per metric tonne 532 469 (63) FY22 currency im
Slide 10: Fuel & FX hedging
Fuel & FX hedging Jet Fuel H1’23 H2’23 H1’24 Hedged position 74% 51% 25% Average hedged rate ($/MT) 814 903 922 Current spot ($/MT) at 28.11.22 c.1,000 USD H1’23 H2’23 H1’24 Hedged position 77% 54% 27% Average hedged rate (USD/GBP) 1.29 1.24 1.19 Current rate (USD/GBP) at 28.11.22 c.1.21 Lease payme
Slide 11: Cashflow
Cashflow Net Cash outflow from financing Cash generation activities £(236)m £36m Movement in working capital1 1) Excluding movements in unearned revenue and derivative financial instruments FYResults FY22 2022 RESULTS 11
Slide 12: Strong investment grade balance sheet
Strong investment grade balance sheet £m 30 September 2022 30 September 2021 Goodwill and other intangible assets 582 582 Property, plant and equipment 4,629 4,735 Derivative financial instruments 442 203 Equity Investments 31 30 Other assets (excluding cash and money market deposits) 1,022 619 Unea
Slide 13: Our fleet flexibility
Our fleet flexibility 346 > Current agreed Airbus NEO order book: 336 336 ▪ 168 firm orders consisting of 135 A320s and 33 A321s (including the conversion of 18 A320s to A321s) 333 320 > Up-gauging underway providing cost and growth opportunities – c.40% of the 318 A319’s will be replaced over the n
Slide 14: Gross capex
Gross capex c.£1.5bn c.£1.6bn > Airbus firm orders provide: c.£0.9bn ▪ 7 deliveries in FY23 ▪ 21 in FY24 ▪ 23 in FY25 FY23 FY24 FY25 Aircraft Payments Maintenance (owned & leased) Leased Aircraft Other > FY23 deliveries expected to all be taken into ownership through free cash flow Future Current fl
Slide 15: CEO update
CEO update Johan Lundgren – CEO
Slide 16: Underlying strength
Underlying strength Advantage over our peers easyJet competitors on easyJet H2’22 CASK (excl. head to head routes in FY221 fuel) vs. competitor airlines2 Legacy carriers & Tour operators Other including LCCs BA Lufthansa AirFrance easyJet As at 30 Sep 22 Net debt Cash3 Brand strength easyJet £0.7bn
Slide 17: 2023 financial year
2023 financial year Winter developments Capacity > Launched 28 new routes for this winter > H1 c.38m seats, c.25% increase YoY > Largest carrier into ski markets1 ▪ c.40% of total capacity > H2 c.56m seats, c.9% increase YoY ▪ Christmas ski flying +30% vs last year > Strong demand for winter sun in
Slide 18: Making low cost travel easy
Making low cost travel easy Building Europe’s best network Transforming our revenue capability > More slots than ever where returns are > Step changed ancillaries deliver strong highest: Gatwick, Porto, Lisbon & Greek returns islands > easyJet holidays returns £38m PBT – > Delivering on destination
Slide 19: Building Europe's best network
Building Europe’s best network Delivered record headline EBITDAR in Q4 Building market positions despite industry challenges Domestic > Largest airline in Europe at primary airports and Europe’s > Fully recovered; second largest airline this summer ▪ S22 back at normal levels and c.50% increase YoY
Slide 20: Building Europe's best network
Building Europe’s best network Growth at slot constrained airports where returns are highest > #1 carrier into the Greek islands – capacity +60% up on FY19 > Retain leading presence at Gatwick Gatwick +20 aircraft1 > Portugal growing from 8 to 19 based aircraft since S19 +33% > Lisbon slot addition
Slide 21: Transforming our revenue capability
Transforming our revenue capability Step-changed revenue generation retained as restriction Inflight retail free travel and load factors return > September – fully embedded Continued delivery as capacity returns > Growth across all KPIs Airline ancillary revenue mix FY19 Sept 22 Growth 30% 29% Conve
Slide 22: Fastest growing, lowest cost, highest margin travel business in the UK
Fastest growing, lowest cost, highest margin travel business in the UK > £38m profit generated from 1.1m passengers > Strong customer satisfaction – 81% > Driving Growth: ▪ Passengers: 0.6m to 1.1m (+83% v FY19) ▪ Profit: £8m to £38m (+400% v FY19) ▪ Low fixed costs: <5% of revenue as business scale
Slide 23: Driving our low cost model
Driving our low cost model Delivered cost actions FY23 areas of focus > Continued focus on seasonality > Fuel savings • Data driven optimisation of flight operations > Pilot seasonal contract agreements in place including descent profile software > 21 aircraft operating for 8 months at seasonal base
Slide 24: Delivering ease and reliability
Delivering ease and reliability > Strong preference for easyJet brand ▪ easyJet took the position as #1 most preferred airline brand in the UK this summer1 ▪ #2 brand in FR, CH & IT > Customer satisfaction > Q4 22 CSAT above Q4 19 > CSAT scores improving across all of our journey touchpoints; bag dr
Slide 25: Pioneering sustainable travel
Pioneering sustainable travel Net Zero roadmap – launched 26 September > Aligned with Science-based targets initiative (SBTi) > 2035 carbon emission intensity reduction target of 35% validated by SBTi > Ambition to deliver 78% carbon emissions intensity reduction by 2050 with residual emissions addr
Slide 26: Summary and outlook
Summary and outlook Value creation Outlook Contribution per block hour +10% on Q4 FY19 > Q1 RPS growth expected to be up >20% YoY +10% > Q1 load factor growth of c.+10ppts YoY > Earlier summer 23 ramp up for resilience > Market wide inflationary pressure > H1 fuel price up >50% YoY Q4 FY16 Q4 FY17 Q
Slide 27: Q&A
easyJet _ fi —_ O&A
Slide 28: Appendix
easyJet al _ APPENDIX
Slide 29: Medium-term targets
Medium-term targets Mid teen EBITDAR margin Holidays contributing Low to mid teen ROCE £100m+ PBT FYResults FY22 2022 RESULTS 29
Slide 30: Operational actions delivered
Operational actions delivered Industry wide challenges easyJet action taken Strong results in Q4 22 > Unprecedented capacity ramp up > Increased crewing resilience > Q4 disruption cost below Q4 19 > Air Traffic Control delays > Additional wet leases (to end Oct > Q4 on the day cancellations 22) belo
Slide 31: Additional financial information
Additional financial information FY23 Depreciation vs FY22 c. £(130)m increase in depreciation YoY primarily due to: - £(71)m maintenance discounting benefit in FY22 driven by increase in USD interest rates - £(40)m maintenance reserve increase due to an increase in the leased fleet, planned increas
Slide 32: Debt maturity profile
Debt maturity profile Bond (Balance Sheet Value) UKEF 1 IFRS 16 Lease Liability 1,200 1,000 800 600 400 200 - FY23 FY24 FY25 FY26 FY27 FY28 FY29+ 1) Based on current lease commitments. FYResults FY22 2022 RESULTS 32
Slide 33: Headline group income statement
Headline group income statement Intra-group £m Airline Holidays Group transactions Passenger revenue 3,816 0 0 3,816 Ancillary revenue 1,585 495 (127) 1,953 Total revenue 5,401 495 (127) 5,769 Fuel (1,279) 0 0 (1,279) Airports, ground handling, holidays accommodation & other operating costs (1,443)
Slide 34: Loss after tax
Loss after tax £m FY 2022 FY 2021 Change1 Headline loss before tax (178) (1,136) 84% Headline tax credit 31 236 (87%) Headline loss after tax (147) (900) 84% Non-Headline items (30) 100 (130%) Non-Headline tax credit/(charge) 8 (58) 114% Total loss after tax (169) (858) 80% Effective tax rate (18.7%
Slide 35: Revenue breakdown
Revenue breakdown Group revenue, £m FY 22 FY 21 Change1 Airline passenger revenue 3,816 1,000 282% Airline ancillary revenue 1,585 424 274% Holidays revenue2 368 34 982% Total revenue 5,769 1,458 296% Airline revenue per seat, £ FY 22 FY 21 Change1 Passenger revenue 46.80 35.48 32% Ancillary revenue
Slide 36: Headline cost per seat
Headline cost per seat Variance to Variance to Weighted Cost per FY21 at FY21 at variance at FY22 Drivers FY23 Direction seat constant constant constant 1 currency currency currency1,2 1 £ £ % % • Around 80% airport cost at regulated airports or RPI/CPI linked contracts, partially offset by: Airport
Slide 37: Fleet profile
Fleet profile FY22 FY21 Change1 A319 (leased) 59 52 7 A319 (owned) 35 45 (10) A319 Total 94 97 (3) % of fleet 29% 31% (2 ppt) A320 (leased) 69 62 7 A320 (owned) 142 135 7 A320 Total 211 197 14 % of fleet 66% 64% 2 ppt A321 (leased) 11 11 - A321 (owned) 4 3 1 A321 Total 15 14 1 % of fleet 5% 5% 0 ppt
Slide 38: Non-headline items
Non-headline items FY22 FY21 Change1 Description £m £m £m • £21 million loss as a result of the sale and leaseback of 10 aircraft in the period (FY21: £65 million gain as a Sale and leaseback (loss)/gain (21) 65 (86) result of the sale and leaseback of 35 aircraft and 2 engines). • No impact in FY22
Slide 39: Headline currency impact
Headline currency impact Revenue Headline Costs1 FY22 FY21 FY22 FY21 Sterling 51% 34% 32% 45% Euro 38% 52% 37% 29% US dollar 1% 0% 25% 21% Other (principally Swiss franc) 10% 14% 6% 5% 1) FY21 figures have been restated to exclude the impact of non-headline costs Average effective Euro rate for reve
Slide 40: Q4 passenger statistics
Q4 passenger statistics July 2022 2021 Change Passengers (‘000) 8,137 3,690 121% Load Factor 93.0% 74.0% 19ppt August 2022 2021 Change Passengers (‘000) 8,310 5,126 62% Load Factor 93.1% 78.8% 14ppt September 2022 2021 Change Passengers (‘000) 7,824 4,538 72% Load Factor 90.7% 78.5% 12ppt FYResults