Ryanair Holdings PLC · EURONEXT:RYA
Ryanair — H1 FY2014 Earnings Presentation
20 slides from Ryanair's earnings presentation, November 2013
Slide 1: Half Year Results
Half Year Results EUROPE’S ONLY ULTRA LOW COST AIRLINE 1
Slide 2: Europe's Favourite Low Fares Airline
EUROPE’S FAVOURITE LOW FARES AIRLINE Lowest Fares/Lowest Unit Costs in Europe No Fuel Surcharges….Guaranteed! No 1 For Traffic – 81m No 1 For Coverage – 1,600+ Routes from 58 Bases No 1 For C’mer Service – Most on time flights – Fewest mishandled bags – Fewest cancellations Unblemished 29 Year Safet
Slide 3: No. 1 for Traffic
NO. 1 – FOR TRAFFIC C’mers (m’s) EU Short Haul 80 75 70 65 60 55 50 3
Slide 4: No. 1 for Coverage
NO. 1 – FOR COVERAGE 58 bases 180 airports 29 countries 1,600+ routes 303 Boeing 737-800 NG’s Newest fleet (< 5 Yrs) 81m c’mers p.a. 4
Slide 5: No. 1 for Customer Service
NO. 1 – FOR CUSTOMER SERVICE Lowest fares & no fuel surcharges Free 10kg cabin bag, 80% c’mers don’t check-in bag Biggest route network in Europe (1,600+ routes) Most on-time flights, 94% Aug – new record Fewest cancellations, < 1 per 10,000 flights Aug Least mishandled bags – 0.38 (per 1,000 bags)
Slide 6: H1 Financial Highlights
H1 FINANCIAL HIGHLIGHTS Sept 12 Sept 13 Change Traffic 48m 49m + 2% Load Factor 84% 85% + 1% Avg. Fare (incl. bag) €53 €52 - 2% Rev. Per C’mer €65 €66 + 2% Revenues €3,106m €3,255m + 5% Profit after Tax €596m €602m + 1% 6
Slide 7: Strong Balance Sheet
STRONG BALANCE SHEET Mar 13 Sept 13 Aircraft (inc. dep.) €5,384m €5,453m Cash €3,559m €3,461m Net Cash Total €8,943m €8,914m €175m Net Cash €61m (after Liabilities €2,172m €1,985m €177m buybacks) Debt €3,498m €3,286m S/H Funds €3,273m €3,643m Total €8,943m €8,914m 7
Slide 8: Lowest Fares in Europe
LOWEST FARES IN EUROPE Avg. Fare % > Ryanair LOW Ryanair €42 HIGH easyJet €80 + 89% Norwegian €83 + 96% Aer Lingus (s/h) €94 + 121% Air Berlin €118 + 178% SAS €133 + 213% Lufthansa €231 + 444% AF-KLM €240 + 466% IAG €241 + 468% Source: Published Cal Q2 results. 8
Slide 9: Lowest Ex Fuel Unit Costs
LOWEST EX FUEL UNIT COSTS RYA EZY NOR AB1 LUV Spirit Staff €6 €9 €15 €15 €36 €14 Airport & handling €8 €21 €17 €30 €8 €5 Route charges €7 €6 €8 €8 €0 €0 Ownership & maint. €6 €9 €16 €27 €16 €15 S & M + other €2 €9 €6 €25 €16 €12 Total €29 €54 €62 €105 €76 €46 % > Ryanair + 86% +114% +262% +162% +59%
Slide 10: H1 Highlights
H1 HIGHLIGHTS Traffic up 2% to 49m Yield down – no Easter, weaker STG & lower pricing Rev per c’mer up 2% to €66 – strong ancil’s (+22%) Ex fuel cost per c’mer €27 (+3%), fuel up €76m (+7%) €602m profit (+1%) New cost reductions drive profitable growth New c’mer service initiatives announced New web
Slide 11: New Cost Reductions Drive Profitable Growth
NEW COST REDUCTIONS DRIVE PROFITABLE GROWTH 175 new Boeing a/c deal – first del. Sept 2014 10 yr Stn growth deal agreed from Apr 2014 - Lower costs & more efficient facilities - Stn traffic to grow 50% from 13m to > 20m p.a. - Delivers 25% of forecast traffic growth to 2019 10 yr WAW (Mod) growth de
Slide 12: New Customer Service Initiatives Announced
NEW CUSTOMER SERVICE INITIATIVES ANNOUNCED Twitter account @Ryanair opened Sept (17k foll’s in 1 month) RECAPTCHA scrapped for indiv’s – 30 Oct 24hr grace period to correct minor b’king errors – 1 Nov Quiet flights (pre 8am & after 9pm) – 1 Nov Allow 2nd small carry on bag – 1 Dec B’rding card reiss
Slide 13: New Digital Development Plan Unveiled
NEW DIGITAL DEVELOPMENT PLAN UNVEILED New look, simpler website (17 to 5 clicks) – end Nov “My Ryanair”, c’mer registration (user/p’mnt details) – end Dec Mobile boarding passes – end Feb “Share the fare” facility – end Mar “Fare finder” feature – end Apr New mobile app for smart phones & tablets –
Slide 14: FY'14 Outlook
FY’14 OUTLOOK FY Traffic up 2% to 81m. Q3 +3%, Q4 (no Easter) -1% FY fuel up €130m, ( from €170m due savings & cap. cuts) FY unit costs ex fuel up 1%. Sect. length adj. 4% ( 7% H2) FY guide cut (€500m-€520m) due lower fares, Q3 -9%, Q4 -10% Fuel & $ costs fall into FY 15 Apt deals (Stn & Mod) &
Slide 15: Appendices
EUROPE’S ONLY ULTRA LOW COST AIRLINE Appendices 15
Slide 16: Girls of Ryanair – 2014 Charity Calendar
GIRLS OF RYANAIR – 2014 CHARITY CALENDAR Over 400 volunteers 13 cabin crew selected Shot in Chania, Crete 10,000 copies Onboard & online sales €100,000 sales target €700,000 raised since 2008 Charity Partner - Teenage Cancer Trust (UK) 16
Slide 17: FY2014 Network – 58 Bases
Y FY2014 NETWORK - 58 BASES EDINBURGH Fciascou; EDINBURGH LEEDS | EASTMIDLANDS =p wNGHAM 3° emo fsnannon P~ UBL MI uvenpoot [ Feomn @ STOCKHOLM @ 5 : | B*MouTH | bg LONDON (5) FEINDHOVEN | WEEZE _ wRrocLaw “MAASTRICHT FRANKFURT "KRAKOW BRUSSELS = ___ BADEN-BADEN MILAN __— | BOLOGNA | ae (MARSEILLE |
Slide 18: Margin & Shareholder Returns
MARGIN & SHAREHOLDER RETURNS RYA EZY NOR AB1 LUV Net Margin 12% 7% 4% 0% 2% Cash Earnings * 18% 9% 7% 2% 7% Free Cash Flow ** €828m €64m (€125m) (€235m) €557m Net Cash/(Debt)*** €61m €72m (€497m) (€756m) (€142m) S’holder Returns **** €1,530m €380m - - €1,375m * (Net profit + depreciation) / total re
Slide 19: Fleet and Pax Growth to 2018
FLEET AND PAX GROWTH TO 2018 New Lease Returns Year End Pax No’s Pax Aircraft / Disposals Fleet (m’s) Growth FY 14 0 -5 300 81 + 2% FY 15 11 -3 308 83 + 3% FY 16 35 -5 338 89 + 6% FY 17 50 -24 364 96 + 7% FY 18 50 -18 396 103 + 7% FY 19 29 -5 420 110 + 7% Total 175 -60 420 Ability to flex growth (vi
Slide 20: 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 to differ materially. By their nature, forward looking statements involve risk and uncertainty because they relate to events and