Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — Q3 2021 Earnings Presentation
19 slides from Wizz Air's earnings presentation, Jan 28, 2021
Slide 1: Wizz Air Holdings Plc Q3 F21 Results
WIZZ AIR HOLDINGS PLC Q3 F21 RESULTS 28 JANUARY 2021
Slide 2: Q3 F21 Highlights
Q3 F21 | HIGHLIGHTS Q3 severely impacted by travel restrictions for industry and Wizz Air Strong cash balance at EUR 1.2bn end December 2020 Additional EUR 0.5bn liquidity in Jan ’21 at favourable cost of capital Investment grade rated by Moody’s (Baa3) / Fitch (BBB-) Emerging as structural winner s
Slide 3: Q3 F21 Key Business Metrics
Q3 F21 | KEY BUSINESS METRICS Passengers 2.3m (-77%) 260+ new Aircraft* 137 (+17) routes Airports 170 (+16) 900+ routes in total Bases 39 (+14) Countries 48 (+3) 2020 Airline of the Year 1st airline with EASA AoC *end December 2020
Slide 4: Agility Is Key
Q3 F21 | AGILITY IS KEY Wizz Air has the agility to ramp up and down as restrictions come and go European Air Traffic versus Wizz Air Capacity Wizz Air Load Factors % Decline vs. 2019 75% 71% 68% 66% 0% 64% 61% 61% -10% 56% 52% -20% -30% -40% -50% -60% -70% -80% -90% -100% Mar'20 Apr'20 May'20 Jun'2
Slide 5: Focus on Cost and Cash
Q3 F21 | FOCUS ON COST AND CASH Q3 F21 Q3 F20 Change Revenue (€m) 149.9 637.3 (76.5%) Underlying EBITDA (€m)* (40.9) 130.8 n.m. Underlying EBITDA margin (%) (27.3) 20.5 n.m. Statutory net profit (€m)* (116.4) 21.1 n.m. Statutory net profit margin (%) (77.7) 3.3 n.m. Underlying net profit (€m)* (114.
Slide 6: Focus on Cost and Cash: CASK
Q3 F21 | FOCUS ON COST AND CASH CASK €cents Absolute cost €m Change Q3 F21 Q3 F20 Q3 F21 Q3 F20 Fuel 1.01 1.21 56.2 213.8 (73.7%) Staff costs 0.60 0.33 33.3 58.2 (42.9%) Distribution & marketing 0.09 0.06 4.9 10.6 (53.5%) Maintenance, materials & repairs 0.76 0.27 42.1 47.4 (11.1%) Airport, handling
Slide 7: Ancillary Strength
Q3 F21 | ANCILLARY STRENGTH Ancillary/PAX in EUR • Ancillary revenue represents 54.4% of total revenue +5.9 EUR • Ancillary revenue per pax grew to EUR 36/pax 36 • Dynamic pricing, new innovative products/features and digital merchandising drive performance 30 • Strong conversion increase on core WI
Slide 8: Liquidity Key Priority
Q3 F21 | LIQUIDITY KEY PRIORITY 1560 1202 *Cash comprises free and restricted cash and cash equivalents PAGE 8
Slide 9: Investment Grade Balance Sheet
Q3 F21 | INVESTMENT GRADE BALANCE SHEET 1,560 • Q3 operational burn of 64.6m EUR per month of which 174 20.3m EUR per month linked to fuel hedge losses • Hedge program on hold and outflows decreasing month 1,202 on month 165 • Current with refunds to passengers • Maintained investment grade rating f
Slide 10: F21 & F22 Focus Areas
F21 & F22 | FOCUS AREAS Cost and cash burn discipline remains top priority Capacity operated on the basis of cash positive flying Strongly diversified network and integrity of supply chain to allow vertical ramp-up Maintain investment grade rating by Moody’s (Baa3) / Fitch (BBB-) Scale our Abu Dhabi
Slide 11: Building a Stronger, More Diverse Network
BUILDING A STRONGER, MORE DIVERSE NETWORK Now 39 bases, added 260+ new routes • Expanding footprint • Focus on long-term opportunity over and above short-term demand • Entered domestic markets in Italy & Norway to diversify and provide more stability WIZZ Expanding Footprint while Others Withdraw (N
Slide 12: Start of Wizz Air Abu Dhabi Operations
START OF WIZZ AIR ABU DHABI OPERATIONS Oct 12th – Wizz Air Abu Dhabi received its AoC Abu Dhabi targeting vaccinations at 50% by end Mar’21 Jan 15th – Inaugural commercial flight March 1st – Network anticipated to start 4 aircraft ready to service uptake in demand Ambition to grow to 50 aircraft wit
Slide 13: Committed to Our Fleet Expansion / Renewal
COMMITTED TO OUR FLEET EXPANSION / RENEWAL A321neo, the most efficient narrow Enables a further 33% body passenger aircraft CO2/RPK reduction by 2030 252 - 10 % COST - 10 % COST 268 246 20 217 18 198 12 185 6 160 169 152 129 137 112 121 82 112 49 8 22 93 2 79 38 41 41 67 26 41 4 16 6 41 41 6 37 25 1
Slide 14: More Choice, Better Value, Hassle-Free
MORE CHOICE, BETTER VALUE, HASSLE-FREE Lower ticket fares Mobile-first 63 64 66 Mobile app revenue share nearly doubled Stronger brand Worry-free m EUR Brand awareness increased 5 to 18pts vs pre-Covid Refunds returned to pre-Covid levels PAGE 14
Slide 15: 60+ Sustainability Initiatives
60+ SUSTAINABILITY INITIATIVES • Leading the industry on lowest CO2 emissions • Strong alignment with Paris Agreement and UN SDG (57.2g/RPK) • Positive impact on economy and job creation • -1/3 emissions per passenger kilometer by end 2030 • Academies for flight crew and cabin crew (cabin crew to •
Slide 16: Enhanced Governance & Leadership Capacity
ENHANCED GOVERNANCE & LEADERSHIP CAPACITY CEO of Luxaviation Helicopters with more than 30 years of experience in the aviation sector Joined Luxaviation in 2012 and was appointed Chief Operating Officer of the Luxaviation Group in Charlotte Non-Executive Appointed 3rd 2014 prior to becoming Chie
Slide 17: Closing Comments
Q3 F21 | CLOSING COMMENTS Absolute focus on cash and cost – maintaining strong liquidity is key Expanding network to balance low demand Ramp-up ready – driven by young demographic and loyal VFR traffic Investing with discipline in network, fleet and capabilities Widening our competitive advantage to
Slide 18: Wizz | Disclaimer
WIZZ | DISCLAIMER This pre senta tion has been prepared by W izz Air Holdings Plc (the “Company”). By re ce iving this prese ntation and/or attending the mee ting whe re this prese nta tion is made, or by rea ding the pre sentation slides, you agre e to be bound by the following limitations. This pr
Slide 19: Appendix: Hedge Program
APPENDIX: HEDGE PROGRAM EUR/USD Jet Fuel 164% 258% HEDGE COVERAGE 27% 35% FY21 FY22 FY21 FY22 2 months 5 12 months 2 5 months 12 months Capped rate $1.16 $1.16 $600 $554 Floor rate $1.11 $1.12 $549 $503 PAGE 19 Source: Company Information