Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — H1 FY19 Earnings Presentation
25 slides from Wizz Air's earnings presentation, November 2018
Slide 1: Q1 FY19 Results / H1 FY19 Results
Q1 FY19 RESULTS H1 FY19 RESULTS
Slide 2: Another Record H1
H1 FY19 | ANOTHER RECORD H1 Structural Winner: CEE-focused, cost leadership and enhanced aircraft economics Increasing fuel cost partially offset by increasing yield on the back of capacity discipline and improving ancillary revenue production Operations normalised after summer disruptions Strong in
Slide 3: #1 LCC in CEE
H1 FY19 | #1 LCC in CEE Passengers 18.8m (+20%) Aircraft1 104 (+18) Airports 143 (-1) Bases 25 (-3) Employees 4,000+ (+700) Countries 44 (+1) Source: Company Information Note 1: Fleet as at 30 Sep 2018 vs. 30 Sep 2017 H1 FY19 | PAGE 3
Slide 4: Performance Metrics
H1 FY19 | Performance Metrics 102,516 Flights +16.8% 13.1 hours Utilisation -3.0% 93.6% Load factor +0.9ppt 99,9% Regularity +0.0ppt Punctuality 72.1%1 -8.0ppt Source: Company information Note 1: Arrival +15min H1 FY19 | PAGE 4
Slide 5: Improving Operational Environment
WIZZ | Improving Operational Environment On Time Performance 80% 79% 83% H1 Challenges 76% 70% 68% 62% - Industrial actions (ATC) - Knock-on effect crew rosters - Lack of spare capacity - Training ramp-up of Wizz UK APR MAY JUN JUL AUG SEP OCT Cancellations 75 74 Actions - New Disruption Control Cen
Slide 6: Record Profits on 20% Pax Growth
H1 FY19 | Record Profits on 20% Pax Growth Group Results H1 FY19 H1 FY18 Change Seat + 19.0 % Revenue € 1,379.1 m 1,149.4 +20.0% Growth EBITDAR € 505.5 m 492.2 +2.7% Stage + 1.1 % Length EBITDAR margin 36.7 % 42.8% (6.2)ppt ASK Net profit € 292.2 m 288.6 +1.2% + 20.3 % Growth Net profit margin 21.2
Slide 7: Strong Revenue Growth
H1 FY19 | Strong Revenue Growth Ticket per Pax +4% Revenue Growth (€m) +20.0 % Ancillary per Pax - 7 % 1,379 Total Fare per Pax - RASK - 1,149 521 +12.1% Positives 464 - Passenger growth - Higher load factors - Stimulating Traffic - Strong value-add ancillaries 859 +25.3% 685 Negatives - Weak bag an
Slide 8: Cost Discipline
H1 FY19 | Cost Discipline CASK and ex-fuel CASK development 1 3.88 3.72 3.62 3.42 3.33 3.15 3.19 3.13 H1 Negatives 1.58 1.48 1.36 1.15 1.09 - Higher fuel prices 0.90 0.93 0.91 - Double disruption costs - Crew salary inflation H1 Positives 2.29 2.25 2.27 2.27 2.25 2.26 2.22 2.25 - Weaker $ - Larger a
Slide 9: Ultra Low Cost Carrier
H1 FY19 | Ultra Low Cost Carrier H1 FY19 CASK 1 CASK € cent H1 FY19 H1 FY18 Change € cent Fuel 1.09 0.91 0.18 Fuel CASK 1.09 cent Staff costs 0.31 0.27 0.04 Ex-Fuel Distribution & marketing 0.07 0.07 0.00 CASK 2.25 cent Maintenance, materials & 0.18 0.19 (0.01) repairs Aircraft rentals 0.49 0.52 (0.
Slide 10: Multi-Year Unit Cost Reductions
WIZZ | Multi-Year Unit Cost Reductions Game-changing A321 NEO technology – 20% lower unit costs vs A320 CEO Investment Grade aircraft financing – Significantly lower ownership costs Source: Company Information as at October 2018 H1 FY19 | PAGE 10 Note: figures reflect 24 May 2018 status
Slide 11: Strong Yield Outlook in H2
H2 FY19 | Strong Yield Outlook in H2 Gross RpS YoY ASK YoY 9.0% 20% 21% 8.0% 15% 13% 1.9% -0.2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Positives - Strong GDP growth in CEE RASK YoY - Recovery of bag ancillaries - Optimized route network - Slower growth, faster maturity 7.5% - Fuel pass through 6.5% 0.7% Negatives
Slide 12: Strong Ancillary Recovery starts in H2
H2 FY19 | Strong Ancillary Recovery starts in H2 Ancillary Revenue per pax (€) YoY Change Ancillary Revenue per pax (€) Q3, Q4 Tracking - 1.9 29.3 27.4 2.3 1.5 1.5 0.8 19.1 +2.7 -0.7 21.8 -1.5 -2.4 -2.9 10.2 5.6 -4.6 H1 FY18 H1 FY19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Baggage Value-Add F18 F19 Source: Company I
Slide 13: Balance Sheet Strength
H1 FY19 | Balance Sheet Strength Free Cash 1 €m +12.3% 1,336 1,194 179 Investment grade balance sheet 164 Strong cash generation 1,157 1,030 Maintaining or lowering leverage Multiple aircraft financing options H1 FY18 H1 FY19 Free Cash Restricted Cash Source: Unaudited company information to 30 Sept
Slide 14: #1 LCC in CEE
WIZZ | #1 LCC in CEE Position - Country #1 #2 #3 Position - CEE Poland Ryanair Norwegian Romania Blue Air Ryanair Hungary Ryanair Easyjet Lithuania Ryanair Norwegian Ryanair Easyjet Bulgaria Latvia Ryanair Norwegian 39% # 1 Ukraine Air Nordwind Pegasus Slovakia Ryanair Air Flydubai Serbia Ryanair Ea
Slide 15: Balanced and diversified growth
H1 FY19 | Balanced and diversified growth 1 Increasing Frequencies 2 Join Existing Airports + 51% + 42% 3 New Airports 4 New Destination Countries + 1% + 6% Source: Company Information H1 FY19 | PAGE 15
Slide 16: Wizz Air UK | A New British Airline
WIZZ Air UK | A New British Airline WIZZ AIR UK LTD. 3 MAY 2018 – FIRST WIZZ AIR UK FLIGHT FROM LONDON LUTON TO BUCHAREST CURRENT FLEET 7 +2 COMING IN 2018 LOCAL TEAM 320+ UK route license future-proofs Wizz Air’s operations of flights from the UK to non-EU countries following Brexit Source: Company
Slide 17: Business Developments and Innovation
H1 FY19 | Business Developments and Innovation Pilot academy in Hungary, Bulgaria, Poland and Romania New Wizz Air Training Centre Capacity for the next 5 years 5 Simulator capacity 300+ pilots and cabin crew 14 Class rooms Emergency Training Facility Firefighting Training Facility Source: Company I
Slide 18: Ancillary Revenue Development
H1 FY19 | Ancillary Revenue Development Source: Company Information H1 FY19 | PAGE 18
Slide 19: Continuous Customer Focused Innovation
WIZZ | Continuous Customer Focused Innovation Note: Last twelve months Source: Company Information H1 FY19 | PAGE 19
Slide 20: FY 2019 Net Profit Guidance
WIZZ | FY 2019 Net Profit Guidance Guidance Capacity growth (ASKs) +17 % Average stage length Modest increase Load Factor +1 ppt Fuel CASK +22 % Ex-fuel CASK -1 % Total CASK +6 % Revenue per ASK +3.5 % Effective tax rate 3% Net profit €270 – €300 million Source: Company Information H1 FY19 | PAGE 20
Slide 21: Well Positioned For Profitable Growth
WIZZ | Well Positioned For Profitable Growth Structural Winner: CEE-focused, cost leadership and enhanced aircraft economics Increasing fuel cost partially offset by increasing yield on the back of capacity discipline and improving ancillary revenue production Operations normalised after summer disr
Slide 22: Slide 22
Slide 23: Q2 FY19 Results
WIZZ | Q2 FY19 Results For the three months ended 30 September Group Results 2018 2017 Change Revenue (€ m) 825.7 680.1 21.4% EBITDAR (€ m) 354.1 336.4 5.3% EBITDAR margin (%) 42.9% 49.5% (6.6)ppt Net profit (€ m) 242.3 230.6 5.1% Net profit margin (%) 29.3% 33.9% (13.5)ppt Airline KPIs ASK (‘000 km
Slide 24: Hedge Programme
HEDGE PROGRAMME EUR/USD EUR/GBP Jet Fuel HEDGE 71% 76% 63% COVERAGE 30% 35% 27% FY19 FY20 FY19 FY20 FY19 FY20 6 months 12 months 6 months 12 months 6 months 12 months Capped rate $1.23 $1.25 £0.88 £0.88 $659 $721 Floor rate $1.19 $1.20 £0.92 £0.92 $607 $658 Sensitivities (before hedges) for the rema
Slide 25: 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