Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — H1 FY18 Earnings Presentation
21 slides from Wizz Air's earnings presentation, November 2017
Slide 1: H1 FY18 Results
H1 FY18 RESULTS
Slide 2: H1 FY18 Business Highlights
H1 FY18 | Business Highlights 1 Passenger numbers +25%, Revenues +25%, Net profits + 25% 2 Strong EBITDAR margin 43%, Net profit margin 25% 3 Capacity growth underpinned by CEE GDP strength 4 Application to start a new UK airline 5 Free cash of over €1 billion 6 Raising FY18 net profit guidance rang
Slide 3: #1 LCC in CEE
H1 FY18 | #1 LCC in CEE H1 | Growth Metrics Passengers 15.6m +25% Aircraft 871 +14 1442 Airports +14 Countries 43 +4 Bases 28 +2 Staff 3,300+ +500 Source: Company information Note 1: As at 7 November 2017 Note 2: On sale PAGE 3
Slide 4: Performance Metrics
H1 FY18 | Performance Metrics 87,779 Flights +18.1% 13.49 hours Utilisation +0.5% 92.8% Load factor +1.7ppt 99.9% Regularity +0.0ppt Punctuality 80.1%1 -1.6ppt Source: Company information Note 1: Arrival +15min PAGE 4
Slide 5: Fleet Evolution To Drive Costs Lower
WIZZ | Fleet Evolution To Drive Costs Lower A321 seats 33% 44% 55% PAGE 5
Slide 6: Record Profits on 25% Pax Growth
H1 FY18 | Record Profits on 25% Pax Growth Group Results H1 FY18 H1 FY17 Change Seat + 22.6 % Revenue € 1,149.4 m 921.2 +24.8% Growth EBITDAR € 492.2 m 385.9 +27.5% Stage + 1.1 % Length EBITDAR margin 42.8 % 41.9% +0.9ppt ASK Net profit € 288.6 m 231.62 +24.6% + 24.0 % Growth Net profit margin 25.1
Slide 7: Strong Revenue Growth
H1 FY18 | Strong Revenue Growth Revenue Growth (€m) 1,571 H1 FY18 Positive Effects 1,429 1,227 656 Higher load factors 1,149 534 1,012 Larger aircraft 433 921 851 464 Higher utilization 766 353 354 274 41.7% Increasing ancillary 589 214 40.4% 35.3% 37.4% 38.4% portion 165 34.9% 32.2% 916 27.9% 2… 89
Slide 8: Growing Ancillary Revenues
H1 FY18 | Growing Ancillary Revenues Ancillary Revenue1 + €1.5Per pax Growing Value-Add Fees 30+ revenues streams €29.3 €27.8 Increasing conversion rates More leisure routes New cabin bag policy 16.4 19.1 No more fees for hand luggage Size of free hand luggage increased by 50% 11.4 10.2 New Priority
Slide 9: Cost Discipline
H1 FY18 | Cost Discipline Opportunities CASK and ex-fuel CASK development 1 € cents Aircraft type: 3.88 - Larger aircraft 3.74 3.72 3.62 3.51 3.42 - Fuel efficiencies 3.15 3.08 3.13 1.58 Improving ownership costs 1.49 1.48 1.36 1.19 1.15 0.90 0.89 0.91 Economies of scale Challenges 2.32 2.25 2.29 2.
Slide 10: Ultra Low Cost Carrier
H1 FY18 | Ultra Low Cost Carrier H1 FY18 CASK 1 CASK € cent H1 FY18 H1 FY17 Change € cent Fuel 0.91 0.89 0.02 Fuel CASK 0.91 cent Staff costs 0.27 0.27 0.01 Distribution & marketing 0.07 0.06 0.01 Ex-Fuel CASK Maintenance, materials 0.19 0.18 0.02 2.22 cent and repairs Aircraft rentals 0.52 0.51 0.0
Slide 11: Balance Sheet Strength
H1 FY18 | Balance Sheet Strength FREE CASH1 +27.8% €m 1,400 1,193 1,200 Strong cash generation 935 164 1,000 130 800 Restricted Cash A strong balance sheet 600 1,030 delivers cost savings 400 806 Free Cash 200 - Well-positioned for future H1 F17 H1 F18 balance sheet financing Leverage Continue to op
Slide 12: #1 LCC in CEE
WIZZ | #1 LCC in CEE Position - Country #1 #2 #3 Position - CEE Poland Ryanair Easyjet Romania Blue Air Ryanair Hungary Ryanair Easyjet Czech Republic Ryanair Easyjet Ryanair Norwegian Lithuania Bulgaria Ryanair Easyjet 42% # 1 Latvia Ryanair Norwegian Ukraine Air Pegasus Flydubai Slovakia Ryanair A
Slide 13: Network Development
H1 FY18 | Network Development 1 Increasing Frequencies 47% On +241 routes 2 Joining Existing Airports 47% 42 new airport pairs 3 New Airports 4% 10 new destinations 4 New Countries 2% Kosovo, Albania, Morocco, Kazakhstan Balanced & Diversified Growth Strategy New route allocation New bases – in oper
Slide 14: Network Development
H1 FY18 | Network Development Note: New routes commenced and announced during H1 F18. PAGE 14
Slide 15: Continuous Customer Focused Innovation
WIZZ | Continuous Customer Focused Innovation Note: Last twelve months PAGE 15
Slide 16: Wizz Air UK
WIZZ | Wizz Air UK Established a London Luton base Legal entity set up Application for UK AOC Exciting growth plans PAGE 16 PAGE 16
Slide 17: FY 2018 Net Profit Guidance
WIZZ | FY 2018 Net Profit Guidance Guidance Capacity growth (ASKs) +23% Average stage length Modest increase Load Factor +1ppt Fuel CASK +3% Ex-fuel CASK Broadly flat Total CASK +1% Revenue per ASK Slight increase Effective tax rate 6% Net profit €265 – €280 million PAGE 17
Slide 18: Delivering Profitable Growth
WIZZ | Delivering Profitable Growth 1 Passenger numbers +25%, Revenues +25%, Net profits + 25% 2 Strong EBITDAR margin 43%, Net profit margin 25% 3 Capacity growth underpinned by CEE GDP strength 4 Application to start a new UK airline 5 Free cash of over €1 billion 6 Raising FY18 net profit guidanc
Slide 19: wizzair.com
wizzair.com
Slide 20: Q2 FY18 Results
WIZZ | Q2 FY18 Results For the three months ended 30 September Group Results 2017 2016 Change Revenue (€ m) 680.1 556.3 22.3% EBITDAR (€ m) 336.4 277.6 21.2% EBITDAR margin (%) 49.5% 49.9% (0.4)ppt Net profit (€ m) 230.6 202.6 13.8% Net profit margin (%) 33.9% 36.4% (2.5)ppt Airline KPIs ASK (‘000 k
Slide 21: 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