Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — FY2018 Earnings Presentation
30 slides from Wizz Air's earnings presentation, May 24, 2018
Slide 1: FY2018 Results
FY2018 Results 24 May 2018
Slide 2: FY18 | Business Highlights
FY18 | BUSINESS HIGHLIGHTS 1 Net profit €275 mln (+22%), EBITDAR margin of 34% 2 25% passenger growth to 30m passengers 3 Increasing cost advantage, broadly flat ex-fuel CASK 4 #1 LCC in CEE market share increased to 42% 5 A321 cost advantage on 35% of seats 6 Investment grade credit rating (Baa3, B
Slide 3: FY18 | Another Record Performance
FY18 | ANOTHER RECORD PERFORMANCE Passengers 30m (+25%) Aircraft 93 (+14) Airports 141 (+3) Bases 27 (+1) Employees 3,600+ (+22%) Countries 44 (+2) Source: Audited company results as at 31 March 2018 FY18 Results Page 3
Slide 4: FY18 | Key Operating Metrics
FY18 | KEY OPERATING METRICS Flights 168,000 Utilization 12.7 hours Punctuality* 79.3% Load Factor 91.3% Regularity 99.7% Source: Audited company results as at 31 March 2018 *Arrival +15 minutes FY18 Results Page 4
Slide 5: Increased CEE LCC Market Share in FY18
WIZZ | INCREASED CEE LCC MARKET SHARE IN FY18 #1 #2 #3 Poland Ryanair Norwegian Romania Blue Air Ryanair Hungary Ryanair Easyjet Lithuania 42% # 1 Ryanair Norwegian Bulgaria Ryanair Norwegian Latvia Ryanair Norwegian Ukraine Air Pegasus Ernest Air Slovakia Ryanair Air Flydubai Moldova FlyOne Air - R
Slide 6: #1 in CEE… and Growing in Western Europe
WIZZ | #1 IN CEE… AND GROWING IN WESTERN EUROPE FY18 Results Page 6
Slide 7: Financial Review
Financial Review
Slide 8: FY18 | Strong Financials
FY18 | STRONG FINANCIALS Revenue EBITDAR Net Profit* Free Cash € +24% € +22% € +22% € +27% 700 300 1,200 2,000 600 250 1,000 500 1,500 200 800 400 150 600 1,000 300 100 400 200 500 100 50 200 0 0 0 0 2018 EBITDAR Margin Net Profit Margin 2017 34% 14% Source: Audited company results as at 31
Slide 9: FY18 | Record Revenue Generation
FY18 | RECORD REVENUE GENERATION 1,948 Wizz Air grew faster in FY18 Revenue Development (€m) 25% passenger growth 1,571 Higher load factors 816 1,429 Larger aircraft 1,227 656 534 Flying further 1,012 433 Even lower ticket prices 851 766 353 Unchanged ancillary / pax 274 41.7% 41.9% 589 214 37.4% 1,
Slide 10: FY18 | Disciplined Ultra Low Costs
FY18 | DISCIPLINED ULTRA LOW COSTS CASK (€cent) CASK € cent FY17 FY18 Change 3.15 3.19 Fuel 0.90 0.93 0.03 0.90 +3.5% 0.93 Staff 0.27 0.29 0.02 Distribution, Marketing 0.06 0.06 - 2.25 +0.4% 2.26 Maintenance 0.18 0.19 0.01 CASK ex-fuel Fuel CASK Aircraft rentals 0.56 0.54 (0.02) F17 F18 Airport, han
Slide 11: Ancillary Developments
WIZZ | ANCILLARY DEVELOPMENTS Ancillary Revenue Strong value add performance €/pax unchanged yoy Negative effect of change in 27.2 27.2 bag policy in H2 17.1 19.1 +2.0 10.1 8.1 -2.0 FY17 FY18 Baggage Value-Add SEAT SELECTION Source: Audited company results as at 31 March 2018 FY18 Results Note: FY r
Slide 12: FY18 | Higher Cash Generation
FY18 |HIGHER CASH GENERATION € million +23% 1,142 Strong cash generation 930 162 Investment grade balance sheet 156 Leverage 980 Multiple aircraft financing options 774 1.7x Two additional aircraft orders F17 Free Cash F18 requiring aircraft deposits Restricted Cash Cash collateral on LC facilities
Slide 13: FY19 Guidance
WIZZ | FY19 GUIDANCE Guidance Capacity growth (ASKs) +20% (H1: 21%, H2 18%) Average stage length Modest increase Load Factor +1ppt Fuel CASK +15% Ex-fuel CASK - 1% Total CASK +3% Revenue per ASK +3% Effective tax rate 6% Net profit €310 – € 340 million FY18 Results Page 13
Slide 14: Significant Growth Opportunities in FY18
Significant Growth Opportunities in FY18
Slide 15: Compelling Market Opportunity
WIZZ | COMPELLING MARKET OPPORTUNITY FY18 Results Page 15
Slide 16: Building Our Market Leading Position
WIZZ | BUILDING OUR MARKET LEADING POSITION FY18 Results Page 16
Slide 17: Low Risk Growth Strategy
WIZZ | LOW RISK GROWTH STRATEGY 1 Increasing Frequencies 2 Join Existing Airports + 66.8% + 23.9% 3 New Airports 4 New Destination Countries + 5.6% + 3.6% Note: FY18 period FY18 Results Page 17
Slide 18: Aircraft Deployment in FY19 and Beyond
AIRCRAFT DEPLOYMENT IN FY19 AND BEYOND Note: fleet allocation including all announced aircraft in FY19 FY18 Results Page 18
Slide 19: Network Growth Opportunities
WIZZ | NETWORK GROWTH OPPORTUNITIES • 8 aircraft by end FY19 FY18 Results Page 19
Slide 20: Network Growth Opportunities
WIZZ | NETWORK GROWTH OPPORTUNITIES 66 Routes 1.9 mln Seats 22 0.7 0.7 18 18 0.3 8 0.2 Georgia Israel Moldova Ukraine Georgia Israel Moldova Ukraine Source: Company information FY18 Results Page 20
Slide 21: Enviable Aircraft Order to 2026
WIZZ | ENVIABLE AIRCRAFT ORDER TO 2026 Note: figures reflect 24 May 2018 status FY18 Results Page 21
Slide 22: Customer Engagement
WIZZ | CUSTOMER ENGAGEMENT FY18 Results 22 Page 22
Slide 23: Summary
SUMMARY 1 Net profit €275 mln (+22%), EBITDAR margin of 34% 2 25% passenger growth to 30m passengers 3 Increasing cost advantage, broadly flat ex-fuel CASK 4 #1 LCC in CEE market share increased to 42% 5 A321 cost advantage on 35% of seats 6 Investment grade credit rating (Baa3, BBB) 7 FY19 net prof
Slide 24: Slide 24
Slide 25: Appendix
APPENDIX FY18 Results Page 25
Slide 26: Appendix | ULCC Model
APPENDIX | ULCC MODEL YOUNG & POINT TO UNIFORM SECONDARY Airports POINT Fleet Network OUTSOURCED LOW-COST HIGH REVENUE BUSINESS DISTRIBUTION FROM Model via wizzair.com Ancillary Products HIGH SEAT DENSITY HIGH HIGH AND Aircraft Employee Load factor utilization Productivity LOWEST COSTS FY18 Results
Slide 27: Appendix | A Fleet to Sustain Growth
APPENDIX | A FLEET TO SUSTAIN GROWTH FY18 Results Page 27
Slide 28: Appendix | Selected KPI
APPENDIX | SELECTED KPI CAPACITY 2018 2017 Number of aircraft at end of period 93 79 Equivalent Aircraft 85.3 72.13 Utilisation 12.68 12.48 Total block hours 394,624 329,592 Total flight hours 343,006 286,188 Revenue departures 168,208 141,698 Average departures per day per aircraft 5.41 5.37 Seat c
Slide 29: Appendix | Balance Sheet
APPENDIX | BALANCE SHEET € million F2018 F2017 Property, plant and equipment 684.5 505.7 Restricted cash1 162.2 155.9 Derivative financial instruments1 34.2 10.1 Trade and other receivables1 239.1 208.7 Cash and cash equivalents 979.6 774.0 Other assets1 42.5 42.1 Total assets 2,142.1 1,696.3 Equity
Slide 30: 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