Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — Q2 2021 Earnings Presentation
18 slides from Wizz Air's earnings presentation, Nov 5, 2020
Slide 1: Wizz Air Holdings Plc H1 F21 Results
WIZZ AIR HOLDINGS PLC H1 F21 RESULTS 5 NOVEMBER 2020
Slide 2: H1 F21 Highlights
H1 F21 | HIGHLIGHTS Cash balance at EUR 1.6bn achieved via low cash burn Leading traffic recovery, peaking at 80% YoY in August ‘20 Stronger network with 13 new bases and 260+ new routes Investment grade rating confirmed by Moody’s (Baa3) / Fitch (BBB-) H2 strongly impacted by restrictions for indus
Slide 3: Expansion with long-term prospects
H1 F21 | EXPANSION WITH LONG-TERM PROSPECTS 260+ new routes Passengers 6.5m (-71%) 940+ routes in total Aircraft 132 (+13) Airports 164 (+13) Bases 39 (+13) Countries 46 (+2) PAGE 3 Figures for the six months ended 30 September 2020
Slide 4: Leading the recovery
H1 F21 | LEADING THE RECOVERY Wizz has the ability to ramp up swiftly when restrictions lift European Air Traffic vs. Wizz Wizz load factor 75% 71% 0% 66% 65% -10% 61% 61% -20% 52% -30% -40% -50% -60% -70% -80% -90% -100% March April May June July August September October April May June July August
Slide 5: Focus on cost and cash burn
H1 F21 | FOCUS ON COST AND CASH BURN H1 F21 H1 F20 Change Revenue (€m) 471.2 1,670.8 (71.8)% Underlying EBITDA (€m)* 17.3 607.0 (97.1%) Underlying EBITDA margin (%) 3.7 36.3 (32.6)ppt Statutory net profit (€m)* (243.1) 368.8 n.m. Statutory net profit margin (%) (51.6) 22.1 n.m. Underlying net profit
Slide 6: Focus on cost and cash burn
H1 F21 | FOCUS ON COST AND CASH BURN CASK €cents Absolute cost €m Change H1 F21 H1 F20 H1 F21 H1 F20 Fuel 1.61 1.15 265.4 436.2 (39.2)% Staff costs 0.45 0.31 73.4 118.4 (38.0)% Distribution & marketing 0.07 0.06 12.0 24.4 (50.8)% Maintenance, materials & repairs 0.39 0.23 64.3 87.8 (26.8)% Airport,
Slide 7: Resilience of ancillary
H1 F21 | RESILIENCE OF ANCILLARY +3.8 EUR • Ancillary revenue overtook ticket revenue in H1: 57.2% of total revenue 36.1 • Reported ancillary revenue H1 F21: EUR 41.6/pax 32.3 • Strength driven by core (Bags, Bundles) and value added services (Flexibility) • Innovative product launches and dynamic p
Slide 8: Maintaining strong liquidity
H1 F21 | MAINTAINING STRONG LIQUIDITY PAGE 8
Slide 9: Investment grade balance sheet
H1 F21 | INVESTMENT GRADE BALANCE SHEET EUR 1.6bn Cash* 1,588 1,560 182 174 • H1 burn of €44m/month, Q2 burn of €9m/month • Cash-contributing flying • Cost and cash drives on all line items • Continued processing of refunds 1,406 1,386 • Investment grade rated by Fitch and Moody’s • CCFF: £300m in e
Slide 10: H2 F21 Focus areas
H2 F21 | FOCUS AREAS Strong liquidity position remains top priority Operational cash burn ~€70m/month in case of full grounding, winter cash contribution minimal Capacity operated strongly dependent on restrictions Continued investment in fleet renewal over Half 2 Aircraft deliveries are competitive
Slide 11: Agility: balancing demand with opportunity
AGILITY: BALANCING DEMAND WITH OPPORTUNITY 13 new bases: 29 aircraft & 260+ new routes Expanding footprint while other airlines withdraw Focus on long-term opportunity & short-term demand Entered domestic markets in Italy & Norway which provide more stability Wizz Air Abu Dhabi received AOC & ready
Slide 12: Gaining market share across Europe
GAINING MARKET SHARE ACROSS EUROPE Market Share F19 F20 Jul – Sep ‘20 Total CEE 16% 18% 23% LCC CEE 39% 40% 49% 55% 39% 37% 33% 34% 31% 32% 23% 20% 16% 12% 14% 12% 10% 7% 6% 5% 4% 3% 2% Poland Romania Hungary Bulgaria Ukraine Serbia Albania UK Austria Italy PAGE 12 Source: Innovata
Slide 13: Geared for swift recovery
GEARED FOR SWIFT RECOVERY Competitive advantage is clear: Average fleet age: 5.4 years Lowest cost base in Europe >80% VFR traffic since COVID-19 One of the best liquidity positions Youngest fleet & greenest airline in Europe 1.6bn total cash Youngest demographic 4th largest travel website/app in Eu
Slide 14: Customer focus: offering more
CUSTOMER FOCUS: OFFERING MORE Europe’s greenest airlines with the lowest LOWEST CO2 EMISSION AMONG COMPETITORS CO2 Emissions (g/RPK) emissions/passenger km 89.8 92.2 79.9 77.1 69.0 Continuous new deliveries to reduce cost and emissions 57.2 New voluntary carbon offsetting program for customers WIZZ
Slide 15: Closing comments
H1 F21 | CLOSING COMMENTS Absolute focus on cash and cost – liquidity is key Expanding network to balance low demand and be ready for ramp-up Financial discipline, agility and long-term focus as key principles Widening our competitive advantage to win structurally PAGE 15
Slide 16: 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
Slide 17: Appendix: Hedge program
APPENDIX: HEDGE PROGRAM EUR/USD Jet Fuel 142% 175% HEDGE COVERAGE 22% 26% FY21 FY22 5 months 12 months FY21 FY22 5 months 12 months Capped rate $1.16 $1.16 $606 $554 Floor rate $1.12 $1.12 $552 $503 PAGE 17 Source: Company Information
Slide 18: Appendix: Fleet plan
APPENDIX: FLEET PLAN 270 248 20 219 18 200 12 6 190 171 162 159 131 114 137 56 84 112 121 22 2 8 93 41 79 38 41 41 67 26 41 16 6 41 37 4 6 6 25 15 7 22 30 63 63 67 72 68 40 72 56 40 32 17 13 5 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21E FY 21/22E FY 22/23E FY 23/24E FY 24/25E FY 25/26E FY