Ryanair Holdings Plc · EURONEXT:RYA
Ryanair — FY2022 Earnings Presentation
21 slides from Ryanair's earnings presentation, May 17, 2022
Slide 1: FY22 Results - May 2022
FY22 Results - May 2022
Slide 2: Europe's Lowest Cost Airline Group
Eur ope’s Lowest Cost Air line Gr oup Lowest fare/lowest cost EU airline No. 1, Traffic: 165m (pre C-19: 149m) No. 1, Cust. service / OTP 90%+ Upgraded CDP “B” rating (“B-” PY) No. 1 EU ESG airline – Sustainalytics Strong (BBB) bal. sheet (S&P & Fitch) Fin. strength + lowest cost = L.T
Slide 3: Europe's No. 1 Coverage & Choice
Eur op e’s No. 1 Cover a ge & Choice 89 bases / 225 airports 36 countries 15 new bases + 770 new rts Over 2,500 routes Accelerate growth post C-19 225m pax by FY26 3 3
Slide 4: Europe's Lowest Costs Wins!
Eur ope’s Lowest Costs W ins! € per pax RYA WIZ EZJ NOR E’Wings LUV Staff/efficiency 7 6 10 19 20 55 Airport & Hand. 8 11 22 19 18 9 Route Charges 5 5 5 7 7 0 Own’ship & maint. 7 14 9 28 21 17 S & M other 4 3 7 14 28 20 Total 31 39 53 87 94 101 %> Ryanair +26% +71% +181% +203% +226% (Source: Pre Cov
Slide 5: FY22 Results
FY22 Results FY21 FY22 Guests (m) 27.5 97.1 +253% Load Factor 71% 82% +11pts Revenue €1.64bn €4.80bn +193% (i) Op. cost €2.48bn €5.27bn +113% (i) Net loss €(1,015m) €(355m) n/m (i) Excl. €114m unrealised mark-to-market net gain on jet fuel caps 5 5
Slide 6: FY22 Balance Sheet (BBB stable)
FY22 Balance Sheet (BBB stable) €’bn Mar. 21 Mar. 22 Assets 9.2 11.6 B737 fleet > 90% unencum. Cash 3.2 3.6 Strong liquidity Total 12.3 15.2 Accruals 2.3 4.6 Debt 5.4 5.1 Net Debt €1.5bn (€2.3bn @ Mar. 21) S/H Funds 4.7 5.5 Total 12.3 15.2 6 6
Slide 7: Current Developments
Cur r ent Developments Pent up demand into S.22 – well positioned with 70+ “G’changers” Traffic recovering but lower fwd. bookings / lower yields than 2019 Recovery fragile as Ukraine & C-19 risks overhang sector Robust cost control – Europe’s lowest cost carrier Fuel & carbon well hedged
Slide 8: S.22 – Well positioned to grow
S.22 – Well positioned to g r ow Fwd. bookings damaged by Omicron & Ukraine invasion L.F. recovering but at lower fares than 2019 (L.F. act., yield pass.) Operate 115% of S.19 cap. in S.22 – aim for 90%+ LF Fuel costs higher post Ukraine invasion – strong hedging Airport / ATC staff shorta
Slide 9: Strong Hedging Position vs Competitors
Str ong Hedging Position vs Competitor s (i) (i) (ii) Hedge Jet Swap / (bbl) Cap. / (bbl) Carbon H1 FY23 80% 60% ($62) 20% ($71) H2 FY23 80% 70% ($64) 10% ($92) FY FY23 80% 65% ($63) 15% ($77) 85% (€53) H1 FY24 10% 10% ($76) - (i) Brent crude spot > $105bbl. Conv. rate of 10 used to convert jet met.
Slide 10: Strong Market Share Gains
St r ong Mar ket Shar e gai ns No. 1 No. 2 No. 3 Share gain* Italy (40%) easyJet ITA +14pts Hungary (30%) Wizz Lufthansa +13pts Austria AUA (18%) Wizz +11pts Poland (35%) LOT Wizz +10pts Ireland (56%) Aer Lingus BA +7pts Belgium (30%) Brussels A. Tui Fly +4pts UK easyJet (22%) BA +2pts Source: Ryana
Slide 11: Better positioned to thrive in recession
Better positioned to thrive in r ecession Consumer spending curtailed in downturn Consumers turn to lowest cost provider – Primark / Lidl / IKEA / RYR RYR grows faster in recession Competitors cut cap. – BA / EZJ / Wizz Huge fuel hedge adv. to Mar. 23 Airports compete for scarce cap. gro
Slide 12: Accelerated growth to 225m pax p.a. by FY26
Accelerated growth to 225m pax p.a. by FY26 M Subject to COVID Guests 225 210 x B737 Total “Gamechanger” 220 order 205 185 More seats Less fuel 180 Lower costs 165 149 Addit. capac. for airports to 140 restore traffic Lower apt. & 97 hand. costs 100 Lower fares 60 Traffic + profit growth 27.5 20 FY2
Slide 13: Environment ratings upgraded - CDP
Envir o. r atings upg r aded - CDP 2019 2020 2021 Ryanair N/R B- B easyJet N/R C B Lufth. B B B Wizz N/R N/R C AFKLM C B- C S/west C B D Source: CDP as at 26 Apr. 13 13
Slide 14: Sustainalytics ESG rating upgraded
Sustainalytics ESG rating upgraded EU airlines Risk Rating Rank Ryanair #1 23.8 (Med.) 1 Wizz 25.1 (Med.) 2 IAG 26.9 (Med.) 3 Lufth. 27.5 (Med.) 4 AFKLM 27.6 (Med.) 5 No. 1 rated EU airline easyJet 34.6 (High) 6 No. 1 rated large cap. airline Large cap. Risk Rating Rank Ryanair #1 23.8 (Med.) 1
Slide 15: Environment targets
Envir o. tar gets Launched “Aviation with Purpose” report Ambitious envir. targets: ― CO2 10% by 2030 (to 60 g’s) ― SAF on 12.5% flights by 2030 ― Improve CDP score to “A” in 2 yrs ― Net zero emissions by 2050 Sustainable Aviation Research Centre funded with TCD Neste partnership to uplift
Slide 16: Summary
Summar y Ukraine & Covid risks overhang industry Lower fares drive traffic recovery (LF. act. / yield pass.) S.22 bookings building (but close in & still behind S.19) Return to modest profitability in FY23 – but fragile Faster post-COVID growth: 225m pax p.a by FY26 Strong BBB balance sh
Slide 17: Appendices
GW Appendices AIFR MORE CHOICE. LOW FARES. GREAT CARE.
Slide 18: Appendix: Robust cost control
A ppendix: Robust cost control FY20 per pax Cost savings: (ex fuel) • Pay deals agreed – cuts of 5% to 20% during Covid Staff/efficiency €7 • Restoration starts Apr. – Jul. 2022 • Restoration will accelerate if profits recover to pre Covid levels • Growth deals as B-8200s drive vol. discs. (WIP) Air
Slide 19: Appendix: Envir. initiatives / update
A p p e n d i x : E n v i r. i n i t i a t i v e s / u p d a t e Thomas Fowler – Director of Sustainability 19 19
Slide 20: Appendix: FY23 Customer Prog. launched
Appendix: FY23 Customer Prog. launched ─ Met DUB (Sep. 21) & MAD (Apr. 22) Customer panel ─ Great feedback & new suggestions ─ Delivering for customers ─ Launched in Oct. 21 DOT. App ─ Real-time updates on security & gate info. (Day of Travel) ─ Live flight status & boarding updates ─ No need to
Slide 21: Disclaimer
Disclaimer Certain of the information included in this presentation is forward looking and is subject to known and unknown risks and uncertainties that could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. By their nat