Ryanair Holdings Plc · EURONEXT:RYA
Ryanair — Q1 FY2020 Earnings Presentation
16 slides from Ryanair's earnings presentation, Jul 29, 2019
Slide 1: FY20 Q1 Results – 29 July
RYANAIR MORE CHOICE. LOWER FARES. GREAT CARE. FY20 Qi Results — 29 July
Slide 2: Europe's Favourite Airline
Eur ope’s Favourite Air line Lowest fare/lowest cost carrier No 1, Traffic – 152m+ guests (+7%) No 1, Cover – 235 airports & 2,100 routes EU airline failures/sales accelerate Malta Air joins Group Lowest cost wins 2
Slide 3: Europe's No. 1 Coverage
E u r o p e ’s N o. 1 C ove r a g e 86 bases 235 airports (60% prim) Over 2,100 routes FY20 -Mrs/Bod/Tls (Fr) -Sen (UK)/Txl (Ger) -Ukr/Turk/Leb 152m+ guests (+7%) On track to 200m by FY24 3
Slide 4: Europe's Lowest Fares
Eur ope’s Lowest Far es Avg. Fare Change % > Ryanair Ryanair €37 -6% Wizz €47 +3% +27% easyJet €61 +2% +65% Norwegian €91 +14% +146% Lufthansa €176 -10% +376% IAG €191 -1% +416% AF/KLM €210 -1% +468% Avg Competitor Fare €129 +249% (Source: FY results/Annual Reports) 4
Slide 5: Europe's Lowest Costs Wins!
Eur ope’s Lowest Costs W ins! € per pax RYA WIZ EZJ NOR E’Wings LUV Staff/efficiency (py) 7 (6) 6 (5) 10 (9) 19 (17) 19 (18) 48 Airport & Hand. 7 11 21 19 33 8 Route Charges 5 5 5 7 7 0 Own’ship & maint. 6 15 9 32 21 15 S & M other 4 2* 8 8 34 18 Total 29 39 53 85 114 89 %> Ryanair +34% +83% +193% +
Slide 6: Q1 FY20 Results
Q1 FY20 Results Jun 18 Jun 19 Guests 37.6m 41.9m +11% Rev per Pax €55 €55 - Avg. fare €39 €36 -6% Ancills per Pax €17 €19 +14% Unit Costs (ex fuel) €29 €30 +4% PAT €309m €243m -21% 6
Slide 7: Current Developments
Cur r ent Developments Lower fares & higher fuel drive airline failures/sales Short term price weakness, structural winner! Group structure develops – Buzz, Lauda, Malta & Ryanair MAX-200s – delivs delayed to Q4 – slower S.20 growth Europe’s greenest, cleanest airline > €630m envir taxes F
Slide 8: Malta Air
Malta Air Malta airline & AOC 6 Malta a/c transfer in W.19 50+ Fra, Ita & Ger a/c move to Malta AOC Crews pay local taxes in Fra, Ita, Ger – lower costs than Ire Management team based in Malta Malta AOC facilitates N Africa & M.E. routes 8
Slide 9: Boeing 737MAX update
Boeing 737MAX update 210 orders (135 firm, 75 options) 30 delivs pre S.20 (originally 58) Plan for 1st delivs in Jan/Feb – could slip Slower FY21 growth (162m 157m) PDPs frozen – Expect Boeing to cover losses 4% more seats, 16% lower fuel Grow to 200m guests p.a. FY24 9
Slide 10: EU's Cleanest Greenest Airline
EU’s Cleanest Gr eenest Air line First EU Airline to publish CO2 Emissions (2019) 66g CO2 per pax/km (Luft 120g) Cut by 10% to <60g by 2030 Paid over €540m envir taxes in 2018 Will pay over €630m in 2019 (up 17%) “Plastic free” in 5 years Voluntary CO2 offset = over 2% pax 210 new a/
Slide 11: Environmental Taxes – no "free ride"
E nv i r o n m e n t a l Ta xe s – n o “ f r e e r i d e ” 11
Slide 12: FY20 Guidance
FY20 Guidance 152m+ guests (+7%) FY fares -2% to +1% Ancills performing well Rev Per Pax up 2% to 3% (was 2% to 4%) Ex fuel unit costs +2% (unchanged) Fuel +€450m PAT range €750m to €950m Subject to close in Q2 fares, H2 pricing & Brexit risks 12
Slide 13: Appendices
Appendices 13
Slide 14: Increased FY21 fuel hedging
Increased FY21 fuel hedging Jet (met. tonne) FY20 FY21 Q1 $717 (90%) $649 (61%) 47% H1 Q2 $718 (90%) $628 (34%) Q3 $723 (90%) $608 (27%) 25% H2 Q4 $667 (90%) $610 (23%) FY $709 (90%) $632 (37%) Target c. 50% hedged 12 18 months out FY21 Based on 157m guests €/$ FY20 FY21 Opex hedge $1.23 (90%) $1.
Slide 15: Shareholder Returns €6.9bn
Shar eholder Retur ns €6.9bn Buyback Spec Divs Total (€m) (€m) (€m) FY08 – 11 346 500 846 FY12 – 14 674 492 1,166 FY15 112 520 632 FY16 1,104 1,104 FY17 1,018 1,018 FY18 829 829 FY19 560 560 FY20 700 700 Total 5,343 1,512 6,855 15
Slide 16: 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