Ryanair Holdings Plc · EURONEXT:RYA
Ryanair — H1 FY2016 Earnings Presentation
18 slides from Ryanair's earnings presentation, November 2015
Slide 1: H1 Results, Nov 2015
H1 Results, Nov 2015 7 YEARS 3 y OF LOW i65-2015 FARES /RYANAIR
Slide 2: Europe's Favourite Airline
Eur ope’s Favourite Air line Europe’s Lowest Fares/Lowest Cost Carrier No 1, Traffic – 105m No 1, Coverage – 76 Bases No 1, C’mer Service – Low Fares/On-time/Fewest/Canx – “Always Getting Better” Program Fwd Bookings, Ld Factors & Traffic Rising 380 new a/c order = growth to 180m by FY24
Slide 3: Europe's Lowest Fares
Eur ope’s Lowest Far es Avg. Fare % > Ryanair Ryanair* €47 Wizz* €60 +28% Norwegian €81 +72% easyJet €84 +79% Air Berlin €120 +155% Lufthansa €230 +389% IAG €231 +391% Air France / KLM €253 +438% Avg Competitor Fare €151 +221% Source: Latest Annual Reports, *RYR & WIZ ave fare includes 1st checked b
Slide 4: Europe's Lowest Costs (Ex Fuel)
Eur ope’s Lowest Costs (Ex Fuel) RYA WIZ EZY NOR AB1 LUV Staff €6 €5 €9 €15 €17 €35 Airport & hand €8 €12 €21 €14 €27 €8 Route charges €6 €6 €6 €8 €8 €0 Own’ship & maint. €7 €10 €8 €21 €29 €16 S & M other €2 €6 €7 €4 €26 €15 Total €29 €39 €51 €62 €107 €74 % > Ryanair +34% +76% +114% +269% +155% AF L
Slide 5: Europe's No 1 Coverage
E u r o p e ’s N o 1 C ove r a g e 76 bases 197 airports 31 countries 1,600+ routes 105m c’mers p.a. 316 x B737-800’s 380 x B737s on order 5
Slide 6: Europe's No 1 Market Share
E u r o p e ’s N o 1 M a r ke t S h a r e Country (Cap m)* No. 1 No. 2 No. 3 Share UK (117) easyjet BA 17% Germany (112) Luft Air Berlin 5% Spain (105) Vueling Iberia 18% Italy (85) Alitalia easyJet 26% France (72) AF- KLM easyJet 7% Portugal (19) TAP easyJet 21% Belgium (15) SN Brussels Jetairfly 2
Slide 7: Europe's No 1 For Traffic Growth
E u r o p e ’s N o 1 Fo r Tr a f f i c G r ow t h . Source: Latest traffic stats to Dec-14, company forecasts 7
Slide 8: H1 2016 – Profits up 37%
H1 2016 – Profits up 37% Sep-14 Sep-15 Traffic (m) 51.3 58.1 +13% Load Factor 89% 93% +4% Avg. fare (incl. bag) €54 €56 +2% Revenue (€m) 3,537 4,040 +14% Net Profit (€m) (i) 795 1,088 +37% Net Margin (i) 23% 27% +4% EPS (€) (i) 0.57 0.80 +39% (i) Excludes Aer Lingus accounting gain of €317.5m 8
Slide 9: H1 2016 Balance Sheet
H1 2016 Balance Sheet Mar-15 Sep-15 €m €m Assets (incl. a/c) 7,389 6,661 Cash 4,796 5,197(i) Total 12,185 11,858 (i) N Cash N Cash €364m €976m Liabilities 3,718 3,107 Debt 4,432 4,221 S/H funds 4,035 4,530 Total 12,185 11,858 (i) Net cash after (i) Includes €520mAer spec Lingus div &proceeds €112m b
Slide 10: Current Developments
Cur r ent Developments AGB Year 2: Fwd bookings & LF rising FY16 traffic raised 104m to 105m – H2 yields to fall W16 new bases, routes & capacity = lower fares Competitors cut capacity on RYR routes FY17 oil hedge save €430m – pass on in lower fares €400m buyback finalised in Aug €400m
Slide 11: LF & Fwd Bookings Rising
LF & Fwd Bookings Rising FY14 FY15 FY15 FY16 Apr 81% 84% +3% Apr 84% 91% +7% May 82% 85% +3% May 85% 92% +7% Jun 84% 88% +4% Jun 88% 93% +5% Jul 88% 91% +3% July 91% 95% +4% Aug 89% 93% +4% Aug 93% 95% +2% Sep 85% 90% +5% Sept 90% 94% +4% Oct 83% 89% +6% Oct 89% 93% +4% Nov 81% 88% +7% Nov +3% Dec 8
Slide 12: W16 New Bases, Routes & Capacity
W16 New Bases, Routes & Capacity 4 New Bases Berlin, Corfu, Milan (MXP), Gothenburg 119 New Routes CGN-SXF(6), DUB-AMS(4), SXF-BRU(3), STN-MXP(2) Strong winter’16 capacity growth Denmark +250% Hungary +21% Romania +130% Spain +17% Israel +100% Poland +17% Germany +50% Ireland +13% Greece +31%
Slide 13: Competitors Cut Capacity on RYR routes
C o m p e t i t o r s C u t C a p a c i t y o n RY R r o u t e s easyJet ─ Close: FCO base, CGN-LGW, MAD-SXF, RAK-STN ─ Cut freq: DTM-LTN, MXP-RAK, LGW-SCQ, LGW-TLL Alitalia ─ Close: FCO-KRK, LIN-WAW ─ Cut freq: FCO-OTP, FCO-BUD, LIN-CAG, LIN-AHO Aer Lingus ─ Close: DUB-CPH ─ Cut freq: DUB-AMS
Slide 14: FY17 Oil Hedge save €430m - lower fares
FY17 Oil Hedge save €430m - lower far es $pmt FY15 FY16 FY17 Q1 $945 $934 $659 (95%) Q2 $942 $935 $652 (95%) Q3 $960 $876 (95%) $590 (95%) Q4 $959 $828 (95%) $567 (95%) FY $950 $898 (95%) $622 (95%) FY16 fuel 95% hedged @ saving of €100m over p/y FY17 fuel 95% hedged @ saving of €430m over p/y
Slide 15: FY16 Outlook
FY16 Outlook Load Factor up 4% to 92% Traffic up 16% to 105m (H2 +19%) Unit cost down 5% (ex fuel -1%) Ave. fare: Q3 flat, Q4 down 4% Lower oil will fund lower fares in H2 & FY17 Guidance raised to upper end of €1,225m range Final PAT subject to Q4 “LF active / price pass” policy 15
Slide 16: Appendices
rN 3 7 YEARS € , OF LOW & FARES 7RYANAI Ls
Slide 17: 737-800 Order
Tr a f f i c R a i s e d f r o m 1 6 0 m t o 1 8 0 m i n F Y 2 4 Fleet C’mers Growth (at YE) P.A. Ann Cum FY15 308 91m + 11% + 11% 340 105m + 16% + 29% 737-800 Order FY16 FY17 380 113m + 8% + 38% FY18 401 125m + 11% + 53% FY19 419 135m + 8% + 65% FY20 450 140m + 4% + 71% FY21 472 150m + 7% + 84% MAX
Slide 18: 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