easyJet plc · LSE:EZJ
easyJet — Proxy Contest (April 2020)
13 slides from easyJet's proxy contest presentation, Apr 27, 2020
Slide 1: Board Recommendation to Vote Against All the Proposed Resolutions
Board Recommendation to VOTE AGAINST All the Proposed Resolutions 27 APRIL 2020
Slide 2: Why Are We Here?
WHY ARE WE HERE? Resolutions Requisitioned1 by Sir Stelios (‘SHI’) Forcing Board to terminate the Airbus contract To remove four Directors: In SHI’s own words: “…calling the vote to remove 4 directors is a proxy for voting to 1 •John Barton, Chairman cancel the Airbus contract." SHI’S RESPONSE TO JO
Slide 3: Vote Against All Resolutions
VOTE AGAINST all RESOLUTIONS Vote against and allow the Company to remain focused on ensuring easyJet emerges from Covid-19 as a sustainable and successful business 3
Slide 4: Value Creation
value creation Over 640% in Total Shareholder Returns • Since SHI first opposed fleet expansion in 2008, until onset of Covid-19, easyJet has delivered >640% TSR: • The Board’s strategy and Airbus contract have built sustainable value creation for shareholders • This includes c.£1.8bn in dividends 4
Slide 5: Fleet Flexibility with Airbus Contract
fleet flexibility with airbus contract Why we work with Airbus Updated fleet plan 390 383 Prior Max • As a customer of scale, easyJet is able to achieve significant purchase benefits reducing cost of 370 365 ownership and providing competitive advantage 354 353 352 New Plan Max • The strong partners
Slide 6: Cost Efficiency
Cost efficiency Cost Advantage by Aircraft Type1 Driving Down Operating Costs • Most low-cost airlines have a single fleet type – to keep costs low, especially maintenance and operations • All future easyJet deliveries will have next generation neo engines, further reducing unit costs by c.20% vs. c
Slide 7: Cancelling Airbus Contract – Costly Mistake
Cancelling airbus contract – costly mistake 1 NO NEED TO TERMINATE AIRBUS CONTRACT > Already able to flex the fleet down > Reduced capex by c£1bn over 3 years (incl.cuts to other projects) > To modernise the fleet 2 WE REQUIRE REPLACEMENT AIRCRAFT > To reduce carbon footprint > To lower costs 3 RISK
Slide 8: Effective Response to Covid-19
effective response to covid-19 Cost saving measures Operating cost cash burn (per week) Significant reduction in our other operating costs has been Direct operating costs achieved through management actions including: Other operating costs c.£120m - £130m • Crew and head office furlough leave, volun
Slide 9: Board Has Secured Additional Cash Funding
Board has secured Additional cash funding Cash position as at 31 March £1.4bn £400m RCF – Drawn - Secured Additional Cash Funding £600m CCFF – Issued – Unsecured £400m Term Loan – Agreed – Secured £1.9bn £400m-£550m Sale & Leasebacks Notional cash position today Options to raise further liquidity an
Slide 10: Governance
GOVERNANCE • The Board is committed to the highest standards of corporate governance and continues to focus on providing effective leadership and oversight of the Group • Covid-19 has had an unprecedented impact on the airline sector. The Board has been focused on protecting the interests of its sha
Slide 11: Key Members of the Board
key members of the board •John Barton, Chairman •Johan Lundgren, CEO • >23 years chairing major UK quoted companies • >30 years’ experience in the travel industry • Deep financial expertise • Experienced leader whose expertise is critical at this time • Highly detailed knowledge and understanding of
Slide 12: Vote Against All Resolutions
VOTe AGAINST all RESOLUTIONS Show your support for your Board by VOTING AGAINST ALL these resolutions Their leadership is vital to easyJet’s survival 12
Slide 13: Timetable and Next Steps
TIMETABLE AND NEXT STEPS How to Vote Timetable ONLINE by 10am on Action Time and/or date Wednesday, 20 May 2020 at Date of receipt of 8 April 2020 and 17 April 2020 valid requisitions www.sharevote.co.uk Date of notice of 27 April 2020 OR requisitioned General Meeting Complete a Form of Proxy and La