Wizz Air Holdings Plc · LSE:WIZZ

Wizz Air — Investor Day (October 2024)

52 slides from Wizz Air's investor day presentation, Oct 2, 2024

Slide 1: Capital Markets Day
CAPITAL MARKETS DAY 2 October 2024 VUGZSES govelaal
Slide 2: Capital markets day agenda
Capital markets day agenda 09:30-10:30. Strategy update 01. József Váradi, Chief Executive Officer 10:35-11:15. Focus on Wizz Air fleet 02. Owain Jones, Chief Corporate Officer; Julia Brix, Head of Fleet Acquisition 11:20-12:00. Network planning and development 03. Mike Delehant, Senior Chief Commer
Slide 4: József Váradi – Chief Executive Officer update
József Váradi – Chief Executive Officer update Wizz 500 remains our strategic objective (by 2032) but with a renewed Focus on profitability focus on ULCC principles that will Allow the true potential of the drive improved returns to investors as A321neo to shine we advance along this growth path Sup
Slide 6: Update on fleet plan
Update on fleet plan 2 delayed deliveries in F25 Advised fleet with CY25 visibility 23 delays to date in F26 W500 now anticipated in F32 ➢ 224 aircraft as of 25 September 2024 4.6 4.1 3.6 3.5 3.7 4.4 − 15 A321 NEOs delivered Avg. fleet age 451 311 − 3 A320 CEOs dry leased (in fleet) 423 − 2 A320 CEO
Slide 7: Fleet development likely to smooth to a 15% CAGR to 2030
Fleet development likely to smooth to a 15% CAGR to 2030 Airbus has issued an update on current delays out to Summer 25 (Revised) but this well likely see further deferrals as the timetable is firmed up (Expected) Fleet plan could see a further 40-50 planes Expected capacity growth outcome reflects
Slide 8: The Airbus A320neo family is the right choice for Wizz Air
The Airbus A320neo family is the right choice for Wizz Air Original Airbus order book ➢ 2015 – 110 A320neo ➢ 2017 – 146 A321neo ➢ 2019 – 20 A321XLR ➢ 2021 – 102 (75 A321neo + 27 A321XLR) A321NEO vs. B737MAX10 ➢ 2023 – 75 A321neo (option • Larger engines with higher by-pass ratio = lower fuel consump
Slide 9: XLR offers a complementary development route
XLR offers a complementary development route ➢ 47 aircraft on order and first delivery expected in spring 2025. ➢ Potentially representing 10% of Wizz Air fleet in 2030 ➢ The range of the XLR (3,660 nm on 97t MTOW) enables Wizz Air to connect furthest destinations in the network and to explore new m
Slide 10: OEM's production rates a long-term issue
OEM's production rates a long-term issue ➢ A 17,000 aircraft backlog: Backlog equivalent to over 10 years of production. A321 NEO production lines are sold until 2030 ➢ Supply chain issues persist: Forgings and engine supply chain disruptions impacting on Aircraft OEMs final assembly rates ➢ Forging
Slide 11: Wizz's age profile enhances competitiveness (avg 4.4 years)
Wizz’s age profile enhances competitiveness (avg 4.4 years) Ageing fleet necessitates significant retirement volumes amongst competitors Historical annual rate of passenger aircraft Average age of narrow body fleets retirements as % of global fleet Airline A320 family B737s ERJ170 Wizz Air 4.4 - - 3
Slide 12: GTF issue – better understood, better managed
GTF issue – better understood, better managed ➢ 39 aircraft grounded as of 25 September due to GTF inspections ➢ Improvements managed vs F25 forecast due to quick turn engines ➢ Average groundings still expected to be ~40-45 over the next 18 months vs the previous assumption of 50 ➢ Middle East oper
Slide 13: Aircraft financing market remains robust, with Wizz Air deliveries oversubscribed
Aircraft financing market remains robust, with Wizz Air deliveries oversubscribed MARKET ENVIRONMENT WIZZ AIR ➢ Market constraints on new aircraft deliveries ➢ Proven ULCC business model delivering unit- increase competitive behavior of financing market cost advantages harvesting on economies of sca
Slide 14: Network planning and development
NETWORK PLANNING AND DEVELOPMENT
Slide 15: Macro demand supports fleet growth matching orderbook
Macro demand supports fleet growth matching orderbook Wizz Air exposed to faster growing markets with increasing propensity to travel GDP GDP Air trips per Air trips per capita AC Summer AC Potential per Capita CAGR capita potential 2024 2033 Focused West 2024 US$ 2024 to 2029 2023 2033 & 10yr Ch 47
Slide 16: Densification and market share gains underpin fleet growth
Densification and market share gains underpin fleet growth Market share wins Network route density Aug ’14 Aug ’24 10yr ch Weekly frequencies <=2x 3-6x 7-13x >14x Albania 0% 51% 51% Aug - 2014 20% 42% 28% 10% Georgia 17% 45% 29% Aug - 2019 21% 41% 28% 10% Moldova 0% 27% 27% Aug - 2023 17% 44% 31% 8%
Slide 17: Market leadership
Market leadership Wizz Air has a leading position in key CEE markets and is growing share in new markets; the return to growth from 2025 allows it to reinforce these trends Source: Innovata 55% 54% Market Share by Country (F25) 50% 37% 26% 25% 23% 20% 16% 12% 11% 9% 6% 4% ALB MKD ROM HUN CEE BUL POL
Slide 18: Growth underpinned by strongest orderbook among peers
Growth underpinned by strongest orderbook among peers Wizz’s fleet expected to grow by 224 aircraft from Wizz Air’s index seat count doubles over the period 2025 to 2030 vs. 70 for Ryanair and 60 for easyJet - equivalent to a 16% CAGR +70 Indexed seat count 630 644 652 667 681 700 240 210 F25 F26 F2
Slide 19: Ultra low-cost by design: committed to the ULCC model
Ultra low-cost by design: committed to the ULCC model High aircraft utilization Robust design schedule Year-round utilization target min. 12.5h Smart spare capacity design tion Spar Reduction of seasonal capacity variation by za ed High crew productivity network design tili e Growing sector producti
Slide 20: XLR expanding geographical footprint
XLR expanding geographical footprint Phase I 2025-2026 Phase II 2026+ Joining the dots Expanding beyond by Leveraging the existing complementing existing brand awareness on markets those market Stimulating new labor Capturing existing VFR + and pilgrimage traffic leisure flows XLR to complement NEO
Slide 21: Focus on operations and cost management
FOCUS ON OPERATIONS AND COST MANAGEMENT
Slide 22: Summer 2024 operational KPIs
Summer 2024 operational KPIs (01 Jun – 31 Aug) Wizz Air completion rate (%) KPI TGT Group WAH WUK WAZ WAM Scheduled 85,515 36,010 6,901 4,403 38,201 100 99.94 Flights 99.75 99.59 99.28 Aircraft 12:30 12:45 12:35 12:58 13:13 12:47 Utilization 99 98.55 Completion 99.50% 99.13% 99.27% 99.29% 99.77% 98.
Slide 23: Learnings deployed to optimize Summer 2025
Learnings deployed to optimize Summer 2025 S25 assumptions S25 improvements F26 targets What we expect What we’re doing Where we win ➢ Continued unstable ATC ➢ Improved network robustness ➢ Utilization: 12.5 environment ➢ Improved lines of flying ➢ Completion: 99.5% ➢ Consolidated growth ➢ Smarter b
Slide 24: Optimizing operations through technology
Optimizing operations through technology Systematic application to reduce cost and simplify processes ➢ Crew planning ➢ Using JEPPESEN optimizer ➢ Flight operations ➢ Integrated EFB solution ➢ Cabin operations ➢ Standardization ➢ Ground operations ➢ Customer care, on-time performance ➢ Safety and co
Slide 25: Operations developments
Operations developments 205 Aircraft Training center and core system upgrades 0-6 Aircraft 15 ~ 240 users ~ 7600 internal users CORE systems: 5 CORE systems: 3 Business apps: > 150 Securing capacity in Europe: Business apps: few AOC: 4 ➢ Budapest: lower cost per training - optimal for initial (long)
Slide 26: Fleet growth will deliver maintenance scale economies
Fleet growth will deliver maintenance scale economies Scope Info Stations Base BASE maintenance full KTW, BUD, GDN, VNO, KUN scope FULL Full line BUD, KTW, GDN, VNO, MXP, AUH, SCOPE maintenance LTN NORMAL Up to A-checks TIA, CLJ, VIE, WAW, LGW, LCA, SCOPE (incl.) FCO, SOF, OTP DEB, CTA, BEG, SKP, VA
Slide 27: Fuel efficiency
Fuel efficiency MAIN CONTRIBUTORS FOR SAVINGS (based on policy changes/new implementations) Departure Group: ➢ Reduced Flaps Take-off: harmonisation in take-off flap configuration between A320 and A321 fleet (introduced October 2020) Flight Path Compliance Group: ➢ Vertical Profile Descent Complianc
Slide 29: Building the brand
Building the brand Strong brand awareness in core CEE (80%+ considered positive) and increasing trend in WE & UAE WIZZ Brand Awareness % - CEE WIZZ Brand Awareness % - WE & UAE 100% 100% 90% 90% 80% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Poland Romania Hungary Albania
Slide 30: Delivering both capacity and RASK growth
Delivering both capacity and RASK growth ASK growth Q1 F25 vs F20 62% Development of ASK & RASK Q1 F25 vs Q1 F20 Total Ticket 19% ASK Airline RASK RASK 11% growth growth growth Ryanair easyJet Wizz Air Wizz Air 62% 16% 18% Ticket RASK growth Q1 F25 vs F20 +27% 18% Ryanair 19% 3% 0% 14% easyJet 11% 4
Slide 31: #1 ancillary revenue performance
#1 ancillary revenue performance RYANAIR Ancillary as % of total revenue Ancillary as % of total revenue Ancillary as % of total revenue +1 -3 +5 56 56 45 31 48 45 35 37 27 45 35 32 22 24 Wizz Air maintains the highest absolute ancillary revenue per FY24 FY20 FY22 FY21 FY23 FY20 FY20 FY24 FY21 FY22
Slide 32: Ancillary + Ticket pricing with machine learning
Ancillary + Ticket pricing with machine learning ➢ Wizz Air implemented Machine Learning in F22 yielding €1.10 per passenger in incremental Ancillary Revenue NEW ➢ Our Machine Learning initiatives initially focused on improving core stream performance of bags, seats, bundles, priority and flex, than
Slide 33: New ancillaries in F25
New ancillaries in F25 Timing Bundles WIZZ Discount Club Premium Tier Customers can now select from an expanded range of Besides the WIZZ Discount Club (WDC) light and standard bundle options, tailored to their unique travel needs, membership, WDC Premium was launched that includes elevating their j
Slide 34: New ancillaries in F25
New ancillaries in F25 Timing All You Can Fly Subscription WIZZ MultiPass Monthly Subscription A 12-months subscription plan allowing the customers to A 12-months subscription plan which allows the access to a dedicated booking flow, where selected flights subscribers to travel each month on the eli
Slide 35: Customer experience main achievements
Customer experience main achievements A customer centric approach Launching Major Further integration of AI technologies to enhance customer care New HelpCenter improvement in customer care Introduction of a Smart voice bot in Q1 F25 Easy access to information and Launch of a New AI-powered Chatbot
Slide 36: Enhanced mobile and payments experience
Enhanced mobile and payments experience Mobile Search Payments Merchandizing © 2004 - 2024 Wizz Air Group PAGE 36 36
Slide 39: Embracing SAF development through policy
Embracing SAF development through policy Securing SAF supplies early on Wizz Air sets 10% SAF goal ➢ Partnership with Mabanaft, OMV, Neste and Cepsa ➢ Aspiration to power 10% of our flights with SAF by 2030 Equity investments to support SAF production and ➢ Ambition is aligned with the UK’s SAF mand
Slide 40: What makes Wizz Air the greenest choice?
What makes Wizz Air the greenest choice? © 2004 - 2024 Wizz Air Group 40
Slide 41: Industry leader in CO2 intensity
Industry leader in CO2 intensity Airline Average fleet age CO2 per RPK (in grams) Wizz Air 4.4 SAS 8.6 86.2 87.4 88.5 Ryanair 9 84.6 80.5 easyJet 8.25 75.0 76.0 68.5 Norwegian 9.9 66.0 67.2 Iberia 10 52.5 Finnair 11.6 ITA 11.6 IAG 12 AF KLM 12 Lufthansa 13.4 British Airways N/A Wizz Air Ryanair easy
Slide 44: Illustrative P&W-adjusted profit bridge
Illustrative P&W -adjusted profit bridge ILLUSTRATIVE Identified additional costs above P&W compensation impacting potential profit margins +4.5pp 0.4% 1.4% 0.6% 2.0% F25F One-off wet Extra engine EC261 Airport volume Total lease costs related costs Disruption costs cost impact © 2004 - 2024 Wizz Ai
Slide 45: Orderbook & capital allocation policy
Orderbook & capital allocation policy Wizz Air method Ryanair method • Financing • Financing − Shorter commitment to lessors for new aircraft financing − Fund mainly from internal cashflow & NG disposals − Preference for EUR-denominated rent leases − 100% B737NG fleet unencumbered − Credit rating an
Slide 46: Medium to long-term financing strategy
Medium to long -term financing strategy ILLUSTRATIVE Short term credit metrics drive long-term equity value Wizz Air • While a leasing-based model is more leverage-friendly on Day-1 and provides higher returns for equity holders, in the long-run, and given Wizz Air’s expansion plans, a gradual shift
Slide 47: Focus on short-term credit metrics to support long-term financing
Focus on short-term credit metrics to support long-term financing ILLUSTRATIVE • Wizz Air currently funds itself at a cost of debt which is 170* bps higher than Ryanair • On a net income basis, assuming the status quo approach of “Sale and Leaseback” currently in use by Wizz, and at a P/E of 8.0x (i
Slide 48: Transitioning to an “alternate” model can be expensive, but
Transitioning to an “alternate” model can be expensive, but can ultimately lead to a higher equity valuation ILLUSTRATIVE • To unlock this equity value, Wizz Air would need to shift completely an owned-asset model and would under current circumstance be expensive given the quantum of debt to be rais
Slide 49: Proactive capital / liability management policy
Proactive capital / liability management policy Liquidity management Capital management Access to capital Cash balance and % of revenue (€ bn) Gross debt / EBITDA (x) Debt markets 57% 47% 196% 73% 36% 29% 34% • Access to new / deeper pools of capital Targeting cash >30% of revenue and different inve
Slide 50: Summary
Summary Focus on profitability Allow the true potential of the A321neo to shine Superior fleet economics & execution Mitigating challenges Remove the barriers, now that we have identified them Planning for growth Wizz Air agility & Demand from existing core Optimize and defend key markets and expert
Slide 52: Disclaimer
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 intend

Wizz Air Holdings — Investor Day (October 2024) on 6ix

Wizz Air — Investor Day (October 2024)

Slide 1: Capital Markets Day

Slide 2: Capital markets day agenda

Slide 3: v © 2004 - 2024 Wizz Air Group

Slide 4: József Váradi – Chief Executive Officer update

Slide 5: Focus on Wizz Air fleet

Slide 6: Update on fleet plan

Slide 7: Fleet development likely to smooth to a 15% CAGR to 2030

Slide 8: The Airbus A320neo family is the right choice for Wizz Air

Slide 9: XLR offers a complementary development route

Slide 10: OEM's production rates a long-term issue

Slide 11: Wizz's age profile enhances competitiveness (avg 4.4 years)

Slide 12: GTF issue – better understood, better managed

Slide 13: Aircraft financing market remains robust, with Wizz Air deliveries oversubscribed

Slide 14: Network planning and development

Slide 15: Macro demand supports fleet growth matching orderbook

Slide 16: Densification and market share gains underpin fleet growth

Slide 17: Market leadership

Slide 18: Growth underpinned by strongest orderbook among peers

Slide 19: Ultra low-cost by design: committed to the ULCC model

Slide 20: XLR expanding geographical footprint

Slide 21: Focus on operations and cost management

Slide 22: Summer 2024 operational KPIs

Slide 23: Learnings deployed to optimize Summer 2025

Slide 24: Optimizing operations through technology

Slide 25: Operations developments

Slide 26: Fleet growth will deliver maintenance scale economies

Slide 27: Fuel efficiency

Slide 28: Managing revenue lines

Slide 29: Building the brand

Slide 30: Delivering both capacity and RASK growth

Slide 31: #1 ancillary revenue performance

Slide 32: Ancillary + Ticket pricing with machine learning

Slide 33: New ancillaries in F25

Slide 34: New ancillaries in F25

Slide 35: Customer experience main achievements

Slide 36: Enhanced mobile and payments experience

Slide 37: © 2004 - 2024 Wizz Air Group PAGE 37

Slide 38: Our path to decarbonization

Slide 39: Embracing SAF development through policy

Slide 40: What makes Wizz Air the greenest choice?

Slide 41: Industry leader in CO2 intensity

Slide 42: First equity investment in SAF

Slide 43: Finance and accounting considerations

Slide 44: Illustrative P&W-adjusted profit bridge

Slide 45: Orderbook & capital allocation policy

Slide 46: Medium to long-term financing strategy

Slide 47: Focus on short-term credit metrics to support long-term financing

Slide 48: Transitioning to an “alternate” model can be expensive, but

Slide 49: Proactive capital / liability management policy

Slide 50: Summary

Slide 51: Thank you

Slide 52: Disclaimer