Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — Q3 F20 Earnings Presentation
18 slides from Wizz Air's earnings presentation, February 2020
Slide 1: Q3 F20 Wizz Air Holdings Plc Results for the Three Months to Dec '19
Q3 F20 WIZZ AIR HOLDINGS PLC RESULTS FOR THE THREE MONTHS TO DEC ‘19
Slide 2: Record Profit on +23% Pax Growth
Q3 F20 | RECORD PROFIT ON +23% PAX GROWTH 23% passenger growth to 10 million and delivered +2% RASK in Q3 Strong ex-fuel CASK performance of -5.6% in Q3 Record Q3 net profit of €21m (versus broadly breakeven last year) Expansion continues with 105 new routes announced in F20 Announcement to establis
Slide 3: Leading LCC in CEE
Q3 F20 | LEADING LCC IN CEE Passengers 10m (+23%) Flights 53,866 (+19%) Aircraft 120 (+14) Load factor 92.5% (+1.1ppt) Airports 154 (+10) Utilisation 11.9 hrs (+5.1%) Bases 25 (unchanged) Regularity 99.8% (unchanged) Employees 4,800+ (+9.1%) OTP* 82.1% (+1.8 ppt) Countries 45 (+1) *Flights within 15
Slide 4: Record Profit on 23% Growth
Q3 F20 | RECORD PROFIT ON 23% GROWTH F20 F19 Change Seat growth +22% Revenue (€m) 637.3 511.3 24.6% EBITDA (€m) 131.6 105.1 25.2% Load factor +1.1ppt EBITDA margin (%) 20.6 20.6 0.1ppt Passenger Net profit (€m) 21.4m (21.0m) 42.4m +23% growth Net profit margin (%) 3.4% (4.1%) 7.5ppt Stage length +0.
Slide 5: Strong Revenue Generation
Q3 F20 | STRONG REVENUE GENERATION Revenue (€m) RASK + 1.9% +25% Ancillary per pax + 11.0% Ticket per pax - 6.2% 637.3 Revenue per pax + 1.2% 511.3 301.1 220.2 Revenue Drivers - Continued strength in value-add ancillaries - Strong GDP growth in CEE 291.1 336.3 - Faster growth - Christmas period - Hi
Slide 6: Ancillaries Trend Higher
Q3 F20 | ANCILLARIES TREND HIGHER Ancillary Revenue* €/pax + €3 30.1 27.1 4.9 4.2 3.0 24.8 1.5 1.5 22.3 0.8 -0.7 -1.5 -2.4 -2.9 4.8 5.3 F18 F19 H1 F20 Q3 F20 Q3 F19 Q3 F20 Baggage Value-Add *Q3 F19 adjusted due to reclassification of bag revenues PAGE 6
Slide 7: Relentless Focus on Costs
Q3 F20 | RELENTLESS FOCUS ON COSTS CASK (€ cent) -2.1% CASK € cent* F20 F19 Change 3.55 3.47 Fuel 1.21 1.15 0.06 1.15 Staff costs 0.33 0.35 (0.02) 1.21 +5.2% Distribution & marketing 0.06 0.06 0.00 Maintenance, materials & repairs 0.26 0.23 0.03 Airport, handling & en-route 0.88 0.90 (0.02) 2.40 2.2
Slide 8: Aircraft Order Drives Low-Cost Growth
WIZZ | AIRCRAFT ORDER DRIVES LOW-COST GROWTH 295 270 20 235 18 205 12 190 6 168 176 137 153 138 120 40 89 121 16 112 8 93 2 41 41 67 79 38 41 41 16 26 9 41 37 25 15 4 13 13 32 46 65 67 72 14 63 63 72 72 59 33 24 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
Slide 9: Full Year F20 Guidance
FULL YEAR F20 | GUIDANCE Guidance Previously Capacity growth (ASKs) + 20% Average stage length Modest increase Load Factor +1% Fuel CASK +7% Ex-fuel CASK -1 % Slightly negative Total CASK +2% Revenue per ASK Slightly positive Effective tax rate 5% 4% Net Profit Range €350 – €355 million Range €335m
Slide 10: Strengthening Market Leading Positions
F20 | STRENGTHENING MARKET LEADING POSITIONS Wizz Air portion of CEE Growth CEE Market Growth (seats) Wizz Air Growth (seats) Wizz Air Portion of CEE Growth 25 80% 70% 68% 22.3 20 21.2 20.2 60% 60% 50% Million seats 15 40% 36% 34% 10 30% 29% 9.6 9.3 18% 20% 20% 5 6.1 6.5 5.5 3.9 4.0 10% 3.7 3.3 2.2
Slide 11: Strengthening Market Positions
F20 | STRENGTHENING MARKET POSITIONS Increasing frequencies + 64% Joining existing airports +22% New airports New based aircraft in F20 and F21 Current number of based aircraft +14% +105 NEW Armenia new destination country ROUTES PAGE 11
Slide 12: Wizz Air Abu Dhabi
2020 | WIZZ AIR ABU DHABI • In principle agreement to set up a JV with Abu Dhabi Developmental Holding Company • Royal decree received to set up a UAE airline • Start of operations planned second half of 2020 POSSIBILITY TO REACH 5 BILLION • Wizz continuing to pioneer in new markets PEOPLE • UAE vas
Slide 13: Structural Winner in Vienna
WIZZ | STRUCTURAL WINNER IN VIENNA Fleet 9 A321 49 ROUTES Highest seat count Lowest to cost producer 27 among competitors COUNTRIES 4.1M 57.3g/RPK Seats on sale Lowest in 2020 CO2 emissions +170% among compared competitors to 2019
Slide 14: Greenest Airline in Europe
WIZZ | GREENEST AIRLINE IN EUROPE WIZZ AIR WITH THE LOWEST CO2 EMISSION AMONG COMPETITORS CO2 Emissions (g/RPK) BOARD OVERSIGHT OF 83.0 91.9 97.8 ESG PROGRAM 78.6 69.0 57.3 WIZZ Ryanair Easyjet AF-KLM IAG LH CONTINOUS DECLINE OF CO2 EMISSIONS CO2 Emissions (g/RPK) 69.1 67.7 66.0 64.0 61.5 59.9 58.5
Slide 15: Closing Comments
CLOSING COMMENTS Delivering industry leading growth and margins Strong unit revenue and unit cost performance Record Q3 net profit of €21m Announcement to establish Wizz Air Abu Dhabi in 2020 Uniquely positioned to deliver significant shareholder value FY net profit guidance raised to between €350m
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 EUR/GBP Jet Fuel 72% 82% HEDGE COVERAGE 43% 51% 63% FY20 FY21 3 months FY20 FY21 3 months 12 months 3 months 12 months Capped rate $1.18 $1.17 £0.91 $680 $650 Floor rate $1.15 $1.13 £0.86 $625 $590 Sensitivities (before hedges) for the remaining F20 period: • A one ce
Slide 18: P&L for the 9 Months Ended 31 December
P&L FOR THE 9 MONTHS ENDED 31 DECEMBER 9 months ended 31 December 2019 9 Months ended 31 December 2018 Change € million € million % Passenger ticket revenue 1,292.9 1,149.7 12.5% Ancillary revenue 1,015.3 734.6 38.2% Total revenue 2,308.2 1,884.3 22.5% Staff costs (176.6) (149.1) 18.4% Fuel costs 65