Slide 1: Capital Structure Seminar
easyJet CAPITAL STRUCTURE SEMINAR
Slide 2: Deploying capital to deliver enhanced returns
Deploying capital to deliver enhanced returns Maximising returns on existing fleet Investment in new aircraft to deliver >£3 cost per seat savings Owned aircraft net book value expected to increase by c.£4 billion to c.£8 billion in FY281 Strong investment grade balance sheet to support fleet modern
Slide 3: Medium term targets
Medium term targets Group PBT1 per seat Holidays PBT1 to Disciplined capacity High teen ROCE2 of £7-£10 >£250m growth c.5% CAGR3 Targeting high teen Airline EBITDAR Margins > Reducing winter losses ▪ Profitable restoration of winter capacity driving productivity and utilisation gains > Upgauging ▪ >
Slide 4: Maximising returns from our existing assets / Investing in new assets
Maximising returns from our existing assets > Reallocation of aircraft into the highest returning bases > Revenue growth on existing assets • Holidays attachment rate growth • Revenue management enhancements • Continued ancillary growth > Cost discipline Investing in new assets > Enabling growth wit
Slide 5: Attractive long term shareholder value
Objective Metrics H1’24 Progress > Maintain robust Balance Sheet > Strong investment grade credit > BBB (positive)/Baa2 (stable) profile > 77% NEO aircraft in ownership > Retain ability to invest in > >75% of NEO fleet in ownership Capital Structure profitable growth opportunities > £5.0bn liquidity
Slide 6: Financial strength
Financial strength Retain ability to invest in profitable growth Balance sheet strength to manage through industry opportunities shocks > Building neo aircraft ownership: > Maintain liquidity of unearned revenue +£500m ▪ Currently 77% ▪ Currently £1.9bn above liquidity policy- as we ▪ Expect to grow
Slide 7: Maintaining a robust balance sheet
Maintaining a robust balance sheet Strong investment grade balance sheet Baa1 BBB+ Southwest Ryanair Baa2 BBB Southwest easyJet easyJet Credit rating Baa3 Delta IAG BBB- Lufthansa IAG Lufthansa BBB-/ Baa3 (Investment grade) Ba1 Wizz Air France KLM BB+ Delta Ba2 United BB- United B1 American B+ Ameri
Slide 8: Investing in our fleet
Investing in our fleet > 88 A319s (c.25% of current fleet) materially all retired by FY28 A319 A320neo A319 A321neo Increased seats Reduced fuel burn Greater Increased seats Reduced fuel burn Greater CPS productivity CPS productivity +19% +24% +16% +51% +30% +28% A&GH, NAV Other costs Like for like
Slide 9: Fleet delivery profile
Fleet delivery profile Current base fleet plan to FY34 336 347 356 371 387 395 406 416 427 437 448 458 500 450 > A319s materially 400 exit fleet by FY28 61 184 184 350 19 41 83 105 135 158 175 16 15 300 54 69 75 78 > Expect to own >160 92 Fleet size 250 131 neo aircraft in FY28 155 vs 60 at H1’24 20
Slide 10: Through Cycle Cash Generation
Through Cycle Cash Generation Steady state capex Excess liquidity Strong investment grade balance sheet > FY28 – plan for a fleet of 395 +1.9bn BBB/Baa2 > Neo aircraft useful economic life expected to be 23 years Neo ownership Net cash > c. 17 Aircraft a year to maintain FY28 fleet £146m 77% 17 Deli
Slide 11: Investment to drive earnings, value creation, medium term targets
Investment to drive earnings Value creation Medium term targets > >£3 per seat cost saving from A319s leaving the fleet Group PBT per seat of £7-£10 > Clear strategy > Book value of owned fleet High teen ROCE expected to increase to c.£8 bn > Capital allocation framework in FY28 (£4.0bn as at 31 Mar
Slide 12: Q&A
easyJet Q&A
Slide 13: Appendix
easyJet APPENDIX
Slide 14: Capital discipline, Capital Structure, Shareholder Returns
Objective Metrics H1’24 Progress > High asset efficiency > Aircraft utilisation >10 hours a day > Asset utilisation +7% YoY Capital discipline > Maintain fleet flexibility > Capacity growth c.5% CAGR1 > 12% capacity growth from 5% fleet growth to 343 aircraft > Maintain robust Balance Sheet > Strong
Slide 15: Operationally ready to ramp up deliveries
Operationally ready to ramp up deliveries Current fleet (at 31 March 2024) Strong order book to modernise the fleet Current Fleet A319 A320ceo A320neo A321neo > >300 A320 family aircraft on order between now and Number of seats 156 180/186 186 235 FY34 Aircraft (at H1’24) 88 177 63 15 > All aircraft
Slide 16: Reduced cost of debt
Reduced cost of debt Amount Ratings Tenor Current MS Issue date Issuer Coupon Maturity Bond Spreads (EURm) (Moodys/S&P) (years) Spread1 Jun-19 500 0.875 Jun-25 1.0 36 250 Mar-21 easyJet 1200 Baa2 / BBB 1.875 Mar-28 3.7 122 Mar-24 850 3.750 Mar-31 6.7 155 200 Sep-20 850 2.875 Sep-25 1.2 50 Ryanair NR
Slide 17: Debt £m
Debt “£m” UKEF > Diverse sources of $1,750m (£1,387m) funding through £1,600 aircraft leases, Bond Bond eurobonds, RCF and £1,400 €500m €1,200m UKEF (£443m) (£1,037m) £1,200 RCF $400m > FY24 bond repaid in (£317m) October 2023 £1,000 Bond €850m > Controlled strategy to £800 FY24 (£727m) minimise fun