Slide 1: HY23 Results
HY23 Results 18 May 2023
Slide 2: Making low cost travel easy
Making low cost travel easy Building Europe’s best network Transforming revenue > Largest airline in Europe at primary > Step changed ancillaries with continuing Expect to accelerate delivery of airports growth medium term targets > Berlin optimisation – c.190% performance > easyJet holidays improve
Slide 3: Financial review
Financial review > Kenton Jarvis – CFO FY22 Results
Slide 4: Key performance indicators HY23
Key performance indicators HY23 HY23 HY22 Change1 Seats flown (m) 37.9 30.3 25% Passengers (m) 33.1 23.4 41% Load factor (%) 87.5 77.3 10.2ppt Average sector length (km) 1,192 1,131 5% Airline revenue per seat: (£) 66.46 47.61 40% Fuel cost per seat: (£) 20.43 11.94 (71)% Airline headline cost per s
Slide 5: Financial performance
Financial performance HY23 HY22 Change1 £m £m Passenger revenue 1,749 985 78% Ancillary revenue 767 459 67% Holidays revenue2 173 54 220% Group revenue 2,689 1,498 80% Headline costs: Airline EBITDAR costs ex fuel (1,824) (1,287) (42)% Fuel (773) (362) (114)% Holidays EBITDAR costs2 (161) (57) (183)
Slide 6: Airline revenue per seat
Airline revenue per seat Reported RPS 40% HY’23 HY’22 HY’19 RPS @ CC3 37% Ticket Yield1 £52.86 £42.03 26% £43.79 21% Ancillary Yield2 £23.12 £19.56 18% £12.47 85% Total Yield £75.98 £61.59 23% £56.26 35% > Primary network delivers ticket yield uplift +26% YoY, demonstrating: Strength of network
Slide 7: Airline Headline cost per seat
Airline Headline cost per seat HY23 vs HY22 vs HY19 Available seat kilometres (m) 45,108 32% (9)% Average sector length (km) 1,192 5% 12% Headline CPS ex. fuel @ CC = 5% Headline CASK ex. fuel @ CC = 0% £1.67 due to 10ppts Load Factor improvement HY 2022 headline cost per seat excl. balance sheet re
Slide 8: Fuel & FX hedging
Fuel & FX hedging Jet Fuel H2’23 H1’24 H2’24 Hedged position 75% 52% 22% Average hedged rate ($/MT) 885 868 806 Current spot ($/MT) at 17.05.23 c.720 USD H2’23 H1’24 H2’24 Hedged position 77% 55% 23% Average hedged rate (USD/GBP) 1.24 1.21 1.23 Current rate (USD/GBP) at 17.05.23 c.1.25 Lease payment
Slide 9: Cashflow
Cashflow Net cash outflow from financing Cash generation activities £(372)m £375m Movement in working capital1 1) Excluding movements in unearned revenue and derivative financial instruments. HYResults FY22 2023 RESULTS 9
Slide 10: Strong investment grade balance sheet
Strong investment grade balance sheet £m 31 Mar-23 31 Mar-22 Goodwill and other intangible assets 611 581 Property, plant and equipment (including RoU) 4,744 4,683 Derivative financial instruments (126) 471 Equity investments 31 30 Other assets (excluding cash and money market deposits) 1,582 1,018
Slide 11: Our fleet
Our fleet Fleet flexibility 380 > Current agreed Airbus order book: 373 163 firm orders (130 A320s and 33 A321s) due between FY23 349 336 & FY28 319 328 331 312 299 > All FY23 deliveries purchased through free cash flow > Of the total fleet, 55% is owned, 40% is currently H1 FY23 FY23 FY24 FY25 FY
Slide 12: CEO update
CEO update > Johan Lundgren – CEO FY22 Results
Slide 13: Our strategic focus
Our strategic focus Building Europe’s best network Transforming Europe’s most revenue loved airline – Making winning for low-cost Delivering our customers, travel easy ease and reliability shareholders and our people Driving our low-cost model Platform to create value for our shareholders FY22 Resul
Slide 14: Building Europe's best network
Building Europe’s best network Leveraging slot growth on existing network Berlin rightsized > Growth where returns are above network average contribution > c.190% improvement in profitability through: #1 carrier into the Greek Islands, +65% growth with no dilution to A focus on key city pairs &
Slide 15: Transforming revenue
Transforming revenue Step-changed revenue generation grows in line with ticket yields Continued delivery as capacity returns Future developments > Industry leading dynamic pricing > Working towards total basket optimisation Focus on improved merchandising – benefits realised > Ancillary yield +£10
Slide 16: Fastest growing, lowest cost, highest margin travel business in the UK
Fastest growing, lowest cost, highest margin travel Switzerland source market business in the UK > Departures in early 2024 Will make >£80m PBT in FY23 > c.6m easyJet seats on Swiss summer leisure flows Largest carrier to Spain, Portugal, Croatia, Morocco & France > Multi-currency technology platf
Slide 17: Delivering ease and reliability
Delivering ease and reliability Industry leading customer perception - #1LCC1 Driving customer preference through UK FR CH Ease – customer experience focus Brand awareness #1 #1LCC #1LCC Communications - Mitigating anxiety through timely information flows Delivering on value #1 #1 #1LCC Airport jour
Slide 18: Pioneering sustainable travel
Pioneering sustainable travel Net zero roadmap - development SAF supply secured to 2027 Descent profile optimisation - 135 aircraft upgraded World’s first run of an aeroplane engine fuelled by green hydrogen Improved or maintained all ESG ratings HY 2023 RESULTS 18
Slide 19: Driving our low cost model
Driving our low cost model H2 Cost Development > Expect headline CPS ex fuel to be broadly flat YoY Future cost actions > Productivity & utilisation focus > Deleveraging underway – reducing financing costs Capacity restoration through summer 23 Further winter capacity restoration in FY24 Cost ac
Slide 20: Summer 23
Summer 23 Leading presence Capacity +8% +6% > Strengthened leisure network Growth Largest UK Q4 capacity at 108% vs 2019 excluding Berlin through slot domestic additions in carrier – rightsizing the Greek added Islands & capacity post Portugal Flybe failure UK beach capacity at 128% vs 2019 Beac
Slide 21: Summary and outlook
Summary and outlook Outlook Value creation Expect to accelerate delivery of medium term targets > Q3 RPS expected to be +20% YoY > Radically changed network delivering Mid teen EBITDAR Margin > Momentum continues with booking window returning towards > Transformed Ancillary revenue normalised levels
Slide 22: Q&A
Q&a FY22 Results
Slide 23: Appendix
easyJet — oa APPENDIX |
Slide 24: Medium-term targets
Medium-term targets Mid teen EBITDAR margin Low to mid teen ROCE Holidays contributing Grow capacity back to 105m £100m+ PBT HYResults FY22 2023 RESULTS 24
Slide 25: Debt maturity profile
Debt maturity profile UKEF 1,400 Medium Term Notes IFRS16 Lease Liability 1 1,200 1,000 €500m Eurobond repaid in Feb 23 800 600 400 200 FY23 FY24 FY25 FY26 FY27 FY28 FY29 1) Based on current lease commitments. HYResults FY22 2023 RESULTS 25
Slide 26: Headline group income statement
Headline group income statement Intra-group £m Airline Holidays Group transactions Passenger revenue 1,749 - - 1,749 Ancillary revenue 767 239 (66) 940 Total revenue 2,516 239 (66) 2,689 Fuel (773) - - (773) Airports and ground handling (735) - - (735) Crew (424) - - (424) Navigation (165) - - (165)
Slide 27: Loss after tax
Loss after tax £m HY23 HY22 Change1 Headline loss before tax (411) (545) 25% Headline tax credit 107 123 (13)% Headline loss after tax (304) (422) 28% Non-Headline items (4) (12) 67% Non-Headline tax credit 1 3 (67)% Total loss after tax (307) (431) 29% Effective tax rate (26)% (23)% 3ppt 1) Favoura
Slide 28: Revenue breakdown
Revenue breakdown Group revenue, £m HY23 HY22 Change1 Airline passenger revenue 1,749 985 78% Airline ancillary revenue 767 459 67% Holidays revenue2 173 54 220% Total revenue 2,689 1,498 80% Airline revenue per seat, £ HY23 HY22 Change1 Passenger revenue 46.24 32.49 42% Ancillary revenue 20.22 15.1
Slide 29: Additional financial information
Additional financial information FY23 Depreciation vs FY22 c. £(130)m increase in depreciation YoY primarily due to: - £(71)m maintenance discounting benefit in FY22 driven by increase in USD interest rates - £(40)m maintenance reserve increase due to an increase in the leased fleet, planned increas
Slide 30: Headline cost per seat
Headline cost per seat Variance to Variance to Weighted Cost per HY22 at HY22 at variance at H1’23 Drivers H2’23 Direction seat constant constant constant currency1 currency1 currency1,2 £ £ % % • Increased load factors Airports and ground handling 19.41 (3.04) (19)% (6)% • Inflation at regulated ai
Slide 31: Lowest cost carrier on our primary network
Lowest cost carrier on our primary network easyJet competitors on head to head routes in easyJet H1’23 CASK (excl. fuel) vs. competitor FY231 airlines2 (pence) Legacy & Tour Operators Others incl LCC BA AF KLM LH easyJet Passenger airlines 1) OAG data YE Sep 2023, Short Haul = under 5,000km. Excludi
Slide 32: Fleet profile
Fleet profile H1 2023 H1 2022 Change1 A319 (leased) 67 64 3 A319 (owned) 29 35 (6) A319 Total 96 99 (3) % of fleet 29% 31% (2%)pts A320 (leased) 63 62 1 A320 (owned) 105 105 - A320 Total 168 167 1 % of fleet 51% 52% +1%pts A320neo (leased) 7 7 - A320 neo (owned) 42 34 8 A320 neo Total 49 41 8 % of f
Slide 33: Non-headline items
Non-headline items HY23 HY22 Change1 Description £m £m £m Nil impact as a result of the sale and leaseback of 6 aircraft in the period. (HY22: £21 million loss as a result of Sale and leaseback (loss)/gain - (21) 21 the sale and leaseback of 10 aircraft in the period). £4 million charge, due to a £3
Slide 34: Headline fuel & currency impact
Headline fuel & currency impact Fuel impact HY23 HY22 Change1 Fuel $ per metric tonne Market price 1,012 762 (250) Effective price 860 599 (261) US dollar rate Market price 1.25 1.34 (9) cents Effective price 1.24 1.38 (14) cents Actual cost of fuel £ per metric tonne 691 434 (257) HY23 currency imp
Slide 35: Headline currency impact
Headline currency impact Revenue Headline Costs1 HY23 HY22 HY23 HY22 Sterling 51% 45% 39% 37% Euro 38% 45% 33% 24% US dollar 1% 0% 22% 33% Other (principally Swiss franc) 10% 10% 6% 6% 1) HY22 figures have been restated to exclude the impact of non-headline costs, in addition US dollar and Euro valu
Slide 36: Q2 passenger statistics
Q2 passenger statistics January 2023 2022 Change Passengers (‘000) 4,185 2,301 81.9% Load Factor 85% 68% 17ppt February 2023 2022 Change Passengers (‘000) 5,221 3,904 33.7% Load Factor 89% 81% 8ppt March 2023 2022 Change Passengers (‘000) 6,225 5,340 16.6% Load Factor 90% 81% 9ppt HYResults FY22 202