Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — Q4 2022 Earnings Presentation
26 slides from Wizz Air's earnings presentation, Jun 8, 2022
Slide 1: Wizz Air Holdings Plc F22 Results
WIZZ AIR HOLDINGS PLC F22 RESULTS 8 June 2022
Slide 2: F22 | Strong Recovery
F22 | STRONG RECOVERY Passengers +166%; more diverse, resilient network for future growth Fourth quarter operating result ahead of guidance due to better trading Reported FY net loss of -€642m as we exit Covid-19 whilst ramping up Strong liquidity at €1.4bn end of March ‘22 Investment-grade credit r
Slide 3: F22 | Key Business Metrics
F22 | KEY BUSINESS METRICS versus F21 Passengers 27.1m (+166%) Aircraft* 153 (+13) Airports 194 (+27) Bases** 40 (-3) 1,000+ routes Countries 51 (+3) 2022 Most Sustainable Low- Cost Airline*** 2021 Airline of the Year Europe’s youngest CH-Aviation fleet (+100 aircraft) *end Mar 2022 **includes UA ba
Slide 4: F22 | Financial Performance
F22 | FINANCIAL PERFORMANCE F22 F21 Change Revenue (€m) 1,663.4 739.0 125.1% EBITDA (€m) (19.0) (182.8) (89.6%) Operating cost (€m) 2,128.7 1,267.1 68.0% Operating (loss) (€m) (465.3) (528.1) (11.9%) Reported (loss) (€m) (642.5) (576.0) 11.5% Net foreign exchange (loss)/ gain (€m)* (89.5) 28.4 n.m.
Slide 5: F22 | CASK Focus
F22 | CASK FOCUS CASK (€ cent) F22 Cost (€m) F22 F21 F20 F22 F21 Change Fuel 1.17 0.99 1.25 649.0 347.4 86.8% Staff costs 0.39 0.52 0.33 220.5 132.9 65.9% Distribution & marketing 0.08 0.08 0.06 43.4 19.6 121.4% Maintenance, materials & repairs 0.30 0.65 0.25 170.4 165.7 2.8% Airport, handling & en-
Slide 6: F22 | Liquidity Strength
F22 | LIQUIDITY STRENGTH € million 1,617 1,497 169 1,379 186 162 1,379 Strong liquidity Investment grade balance sheet 1,448 1,311 1,217 500m EUR 2026 1.00% bond 300m GBP UK CCFF repaid in Feb ‘22 31 Mar 20 31 Mar 21 31 Mar 22 Free Cash Restricted Cash Cash refers to total cash and comprises cash an
Slide 7: F22 | Liquidity Strength
F22 | LIQUIDITY STRENGTH In m€ Cash refers to total cash and comprises cash and cash equivalents, short-term cash deposits, and current and non-current restricted cash PAGE 7
Slide 8: F22 | Ancillary Performance
F22 | ANCILLARY PERFORMANCE Ticket Ancillary 40.6 34.3 31.3 ✓ Ancillary 56% of total revenue (45% in F20) ✓ Growth at 1.5 EUR/PAX/year since F20 ✓ Strong value-added ancillary demand from passengers ✓ Dynamic pricing across key product streams (bags, seats and priority boarding) 37.7 32.0 27.0 ✓ New
Slide 9: Trading Performance
TRADING PERFORMANCE 1. Record number of daily flights 2. Maximising revenue 3. Operational ramp-up 4. Focus on customers 5. Responding to the war in Ukraine 6. Macro volatility PAGE 9
Slide 10: Record Number of Daily Flights
RECORD NUMBER OF DAILY FLIGHTS Weekly ASK as % of 2019 ASK (same week); Booked Load Factor Record 777 daily flights 160% 140% 120% 100% 80% 60% 40% 20% Omicron Ukraine conflict 0% 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52
Slide 11: Maximising Revenue
MAXIMISING REVENUE Rising Loads + Record Capacity + Optimal Pricing + High Productivity = Top Revenues 180% 160% 140% 120% 100% 80% 60% Weekly Revenue Trend (as % of 2019 sales) 40% 20% Calendar Week 0% 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 4
Slide 12: F22 | Operational Ramp-Up
F22 | OPERATIONAL RAMP-UP vs F21 167,709 25000 Industry supply-chain 100.00% Flights +108% challenges 20000 80.00% Load factor 78.1% 15000 60.00% +14ppt 10000 40.00% Utilization 7.5 hours +87.4% 5000 20.00% 0 0.00% Regularity 99.5% O N D J F M A M +0.0ppt Flights On-time performance Source: Audited
Slide 13: Customers - In the Center of Everything We Do
CUSTOMERS - IN THE CENTER OF EVERYTHING WE DO Satisfied Customers Broader brand awareness 90% Breakthrough Established CEE 100% +8% +4% +3% +27% 80% 60% 40% of customers surveyed in F22 rated their experience on WIZZ as positive, 20% back in-line with pre-pandemic levels 0% Italy UAE UK base cities
Slide 14: Responding to the War in Ukraine
RESPONDING TO THE WAR IN UKRAINE PROTECTING OUR EMPLOYEES AND OUR NETWORK Shifting capacity and people 32 new routes, 70+ routes increased frequency, 200+ crew moved around the network ✓ 7% of capacity flew inbound to war impacted markets – fully redeployed ✓ Four Ukraine based aircraft remain stran
Slide 15: Managing Volatility
MANAGING VOLATILITY ➢ Zero-cost jet fuel hedges with 30% coverage through August 22 ➢ Exploring to extend jet fuel hedge coverage for the FY at the right conditions ➢ Converted latest aircraft order’s USD pre-delivery payments (PDP) to EUR at favorable rate ➢ EU/UK ETS coverage at 92% for CY22 PAGE
Slide 16: Focus for F23 and Beyond
FOCUS FOR F23 AND BEYOND 1. Industry-leading fleet 2. Returning to proven utilization levels 3. Recruitment on track 4. Building blocks supporting future growth 5. Leading sustainable growth 6. Outlook F23 PAGE 16
Slide 17: Operating the Best Fleet
OPERATING THE BEST FLEET ✓ 5.0-year average fleet age, 221 fleet average seat count by end of F23 (vs 201 F20) ✓ Young and fuel-efficient fleet partially offsets rising fuel prices ✓ 53% fleet renewal rate in F23 (87% by F26) ✓ A321XLR, 10% of fleet by F26, adds range and disrupts wide-body cost str
Slide 18: Driving Full Asset Utilisation
DRIVING FULL ASSET UTILISATION 20:24 182 185 18:00 137 153 165 Back to high productivity: 15:36 145 13:12 119 125 ✓ 30 min average network turn-around 105 10:48 8:24 85 65 ✓ +50% secondary, low congestion 6:00 3:36 12:01 7:44 12:29 45 airports 25 ✓ +5 departures/day/aircraft 4:08 1:12 5 F20 F21 F22
Slide 19: Recruitment on Track
RECRUITMENT ON TRACK 160.0 Pre-Covid 19 pay restored: 150.0 ✓ Cabin crew and office - Jan ‘21 ✓ Pilots - Oct ‘21 140.0 May at 130.0 6,000+ employees 120.0 110.0 100.0 90.0 Starting point of 80.0 4,000 employees 70.0 60.0 FTE (Jan-Mar '20 = 100) Planned FTE (Jan-Mar '20 = 100) Aircraft (Jan-Mar '20 =
Slide 20: Growth Building Blocks
GROWTH BUILDING BLOCKS SAUDI ARABIA OPPORTUNITY NEW AIRLINE IN MALTA MoU with Kingdom of Saudi Arabia to Start of operation October 2022 explore airline market development opportunity 6,000+ EMPLOYEES Versus 2019 Well ahead of pre-pandemic number of colleagues LONDON GATWICK SLOTS 15x slots from Nor
Slide 21: Leading Where It Counts: Environmental Focus
LEADING WHERE IT COUNTS WIZZ AIR’S ENVIRONMENTAL FOCUS • Outperformed CO2 per RPK target in F22 • Lowest CO2 per RPK commitment for 2030 • Management’s incentive linked to reduction of CO2 per RPK • Scope 1/2/3 emissions verified by external party • Working with SBTi for 2035 target approval by end
Slide 22: Leading Where It Counts: Social and Governance Focus
LEADING WHERE IT COUNTS WIZZ AIR’S SOCIAL AND GOVERNANCE FOCUS Social - Female gender diversity F22 F21 • 33% in the Board (Hampton-Alexander review) 30% 27% • 40% in the Management team by F26 34% 27% • 7% in the Flight Deck by F30 4% 4% Governance • Effective board oversight • Environmental and ge
Slide 23: Outlook
OUTLOOK Record traffic for summer, but expect operating loss for Q1 F23 Q1 capacity at +30% versus 2019; Q2 capacity at +40% Q1 bookings solid, Q1/Q2 fares ahead of 2019, loads recovering into Q2 (+90%) Crewing on track; however, industry supply-chain challenges Expect to operate aircraft 12+ hours/
Slide 24: In Closing
IN CLOSING We continue investing for growth as COVID-19 pandemic subsides Growth managed well and ready to deliver record flying summer 2022 Wizz Air has a strong basis to win – fleet, network, cost structure Liquidity and investment-grade rating maintained Consumers will vote for best value next to
Slide 25: Wizz | Disclaimer
WIZZ | 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
Slide 26: Appendix: Hedge Program
APPENDIX: HEDGE PROGRAM Jet Fuel 258% 267% 243% 30% HEDGE COVERAGE F23 3 months Capped rate $1,108 Floor rate $971 PAGE 26