Easyjet Plc · LSE:EZJ
Easyjet — Raymond James Growth Airline Conference 2005
15 slides from Easyjet's conference presentation, Jan 27, 2005
Slide 1: Raymond James – Growth Airline Conference
Chris Walton Finance Director Raymond James – Growth Airline Conference New York – 27th January 2005
Slide 2: Disclaimer
This communication is directed only at (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001; or (ii) high net worth b
Slide 3: Agenda
Agenda 4 Introduction to easyJet 4 Business model 4 Reducing costs
Slide 4: Introduction to easyJet
Introduction to easyJet 4 European low-cost airline – 26m passengers 4 14 key markets, with 4 non-UK 4 190 routes to 58 airports 4 163m people live within 1 hour of an easyJet airport 4 High load factors 4 Consistently profitable – 2004 revenue of £1,091m – Underlying PBT of £85m in 2004
Slide 5: Rapid growth since launch in 1995
Rapid growth since launch in 1995 30 Passengers pa (m) 25 20 15 10 5 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Slide 6: Agenda
Agenda 4 Introduction to easyJet 4 Business model 4 Reducing costs
Slide 7: Business model
Business model Long term winner 4 Convenient & attractive product – Point to point – Large catchments with high frequency 4 Scale – Leverage with suppliers – High brand awareness – Financial resources 4 Low cost – Efficient use of new technology – Exceptional Airbus deal 4 Sustainable & scaleable
Slide 8: Constant innovation
Constant innovation 4 Improved product – No weight restriction for cabin baggage – Flexible tickets and earlier flight stand-by 4 Outsourcing to the consumer – 100% self-check-in on trial – a world first – Self handling of disruption coming soon
Slide 9: Increasing ancillary contribution
Increasing ancillary contribution 4 £62m in 2004, up 20% 4 Contribution per passenger growing 4 Opportunities from existing sources 4 New sources under consideration – Dynamic packaging including insurance – Allocated seating – In-flight entertainment
Slide 10: Strong brand
Strong brand 4 Everything is orange 4 Connects to consumer benefits 4 Significant TV presence – ‘Docusoap’ in UK (£40m of airtime) 4 Aggressive use of PR 4 Link with easyGroup companies – Brand on perpetual licence for £1
Slide 11: Agenda
Agenda 4 Introduction to easyJet 4 Business model 4 Reducing costs
Slide 12: Reducing costs
Reducing costs Planning to improve utilisation and productivity in 2005 4 Continue to negotiate low costs with new & existing airports 4 Increase the productivity of all our people 4 Increase aircraft utilisation 4 Strategic procurement to minimise third party costs 4 Continue implementation of more
Slide 13: New efficient fleet
New efficient fleet 4 A319 unit cost 10% lower than 737 fleet average 4 Accelerating retirement of older 737-300s – Average age just 2.7 years by 2006 Number of aircraft at period end 149 126 108 92 21 A319 117 55 86 33 737-700 32 38 737-300 32 32 21 8 Actual Expected Expected Expected 2004 2005 200
Slide 14: Significant value in Airbus contract
Significant value in Airbus contract 4 Airbus 319 introduction went smoothly 4 Exceptional pricing for up to 240 aircraft 4 Considerable flexibility within contract – at no cost 4 Drives strong cash generation – Total cash increases by deposit paid and by any excess on sale & leaseback – Ongoing ben
Slide 15: Summary
Summary 4 Business model underpins continued profitable growth 4 Ancillary contribution growing 4 Reducing costs 4 Significant value in Airbus contract 4 Better placed than almost every other airline in Europe
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