Slide 1: easyJet Results
easyJet mA & RESULTS
Slide 2: Actions delivering now – with more to come
actions delivering Now – with more to come Optimising our network Revenue transformation Leveraging our low cost model > Radical network optimisation: > Step-changed ancillary > H2 operating CASK1 ex fuel >1.5m seats reallocated to products delivering expected to be close to H2 strongest markets inc
Slide 3: Financial review
Financial review Kenton Jarvis – CFO
Slide 4: Key performance indicators HY 2022
Key performance indicators HY 2022 HY 2022 HY 2021 Change1 Seats flown (m) 30.3 6.4 373.4% Passengers (m) 23.4 4.1 470.7% Load factor (%) 77.3 63.7 13.6 ppts Average sector length (km) 1,131 1,261 (10.3%) Airline revenue per seat: reported currency (£) 47.61 36.93 28.9% Airline revenue per seat: con
Slide 5: H1 2022 KPIs
H1 2022 KPIS H1 2022 H1 2022 Seats flown (m) Passengers (m) H1 2021 H1 2021 35 30.3 23.4 25 30 25 20 20 15.5 15 14.8 11.9 11.5 15 10 10 6.4 4.3 5 2.9 4.1 5 2.1 1.2 0 0 Q1 Q2 H1 Q1 Q2 H1 Omicron impact Airline revenue per seat (£) H1 2022 H1 2022 H1 2021 Load factor H1 2021 60 83% 50.21 85% 81% 81% 8
Slide 6: Financial performance
Financial performance H1 2022 H1 2021 Change1 £m £m Passenger revenue 985 170 479.4% Ancillary revenue 458 67 583.6% Holidays revenue2 55 3 1733.3% Group revenue 1,498 240 524.2% Headline costs: Airline EBITDAR Costs ex fuel (1,287) (604) (113.1%) Fuel (362) (97) (273.2%) Holidays EBITDAR costs2 (58
Slide 7: Airline Revenue per seat
Airline Revenue per seat Reported RPS 29% H1’22 H1’21 H1’19 Passenger Yield1 42.03 41.53 43.79 RPS @ CC 33% Ancillary Yield2 19.56 16.42 12.47 (£1.45) Total Yield 61.59 57.96 56.26 > Ancillary RPS continues to deliver and underlying passenger RPS driven by load factor momentum > H1’22 Passenger yiel
Slide 8: Headline cost per seat
Headline cost per seat Per seat metrics heavily impacted by volume increases during H1’22 vs H1’21 Reduction / (Increase) (482%) (367%) (46%) (45%) (34%) (43%) (279)% in absolute cost vs prior year at cc Headline CPS @ CC = (55%) (3.03) 0.04 24.11 148.59 11.80 28.29 17.62 69.79 2.99 66.81 1.39 65.42
Slide 9: Headline impact of fuel & currency
Headline Impact of fuel & currency H1 2022 fuel impact H1 2022 H1 2021 Change1 Fuel $ per metric tonne Market price 762 382 (380) Effective price 599 688 89 US dollar rate Market price 1.34 1.33 1 cent Effective price 1.382 1.37 1 cent Difference 0.04 0.04 Actual cost of fuel £ per metric tonne 434
Slide 10: Fuel & FX hedging
Fuel & FX hedging Jet Fuel H2’22 H1’23 H2’23 Hedged position 71% 49% 20% Average hedged rate ($/MT) 619 701 807 Current spot ($/MT) at 17.05.22 c.1,225 USD H2’22 H1’23 H2’23 Hedged position 80% 52% 22% Average hedged rate (USD/GBP) 1.33 1.32 1.31 Current rate (USD/GBP) at 17.05.22 c.1.25 Carbon Upda
Slide 11: Cashflow
Cashflow H1 net Cash outflow from financing activities £(159)m H1 Cash generation £109m Net receipts Working capital from Rights Issue movements excl. unearned revenue 1 1) Includes £52 million of maintenance spend on leased aircraft 12
Slide 12: Strong Investment grade balance sheet
Strong Investment grade balance sheet £m 31 March 2022 31 March 2021 Goodwill and other intangible assets 581 589 Property, plant and equipment 4,683 4,811 Derivative financial instruments 471 (58) Equity Investments 30 33 Other assets (excluding cash and money market deposits) 1,018 403 Unearned re
Slide 13: Our fleet
Our fleet Airbus NEO Deliveries: Fleet Flexibility 332 337 > Capex projections assume: 327 322 324 ▪ 9 deliveries in FY22, 6 in FY23, 18 in FY24 & 323 26 in FY25 308 306 > Further growth can be achieved through the acquisition or lease of externally sourced aircraft 276 FY21 H122 FY22 FY23 FY24 FY25
Slide 14: CEO update
CEO update Johan Lundgren – CEO
Slide 15: Transformation delivering
Transformation delivering Funding actions have led to Building momentum Capacity vs FY’19 Load Factor > Strong cash position £0.6bn Jan-22 50% 68% Feb-22 68% 81% > Repaid CCFF in full net debt Mar-22 81% 81% > Investment grade balance sheet April-22 86% 86% Q3 c. 90% > 86% Q4 c. 97%1 > 90% Operating
Slide 16: Summer 22
Summer 22 Easter Building Resilience > Leisure capacity for Easter 115% vs FY19 > Proactively cancelled flights > Easter load factors > 90% > Reducing cancellations through seat reductions Current Bookings > Boosted recruitment campaign > Improving ID processing > Q4 sold ticket yield currently +15%
Slide 17: Network optimisation – driving growth & returns
Network optimisation – driving Growth & returns Growing in core primary slot constrained airports Fleet allocation focused on maximising returns > Gatwick slots added for summer 22 > Milan Linate slots secured – additional daily flights Over 1.5m seats 48 new routes launched added to both Amsterdam
Slide 18: Step-changing revenue generation
Step-changing revenue generation Ancillary products launched Inflight retail > New business model Standard Plus Fare (Jan 21) ▪ In house control ▪ Tailored product range Cabin Bags – Phase 1 (Feb 21) £3.14 ▪ Direct supplier partnerships ▪ Enhanced technology incremental Cabin Bags – Phase 2 (Nov 21)
Slide 19: Roadmap to £100m+ PBT in the medium term
Roadmap to £100m+ PBT in the medium term > Summer 22 bookings +530% versus previous model (2019) > Summer 22 margin per passenger +300% versus previous model (2019) > Competitive pricing underpins growth – Customer bookings to date are cheaper c.75% of the time1 > Strong growth in Gatwick building o
Slide 20: Cost advantage on our primary network
Cost advantage on our primary network Summer 2022 Cost Actions > Operating CASK3 ex fuel expected to be close to > Self Service disruption management – reduced H2 2019 levels manual processing by 69% > Crew agreements on seasonal/part time work with > H2 2022 ASKs expected to be c. +2% of H2 2019 im
Slide 21: Sustainable travel leader
Sustainable travel Leader 35% by 35 – interim science-based target announced easyJet is a leader on zero carbon emission flying > Fleet renewal: All new aircraft deliveries between FY’22 > Championing zero emission flying through our partnerships and FY’28 will be NEOs, providing 15%+ more fuel with
Slide 22: Outlook and summary
Outlook and summary Outlook Transformation Delivering > Strong yields across both ticket and ancillaries Radically optimised network > Forward bookings consistently ahead of FY19 levels > Expected capacity for Q3 c.90% of FY19 level Step change in ancillary revenue > On sale capacity for Q4 c.97% of
Slide 23: Q&A
easyJet O&A
Slide 24: Appendix
easyJet APPENDIX
Slide 25: Medium-term targets
Medium-term targets Grow to pre pandemic Mid teen EBITDAR margins capacity by 2023 in the medium term Low to mid teen ROCE Holidays - Clear road map in the medium term for £100m+ PBT 26
Slide 26: Depreciation and Interest
Depreciation and Interest Impact of higher utilisation of leased aircraft In H1 our maintenance related-depreciation benefitted from a £19 million credit due to the impact of the recent increase in US$ interest rates on the discounting of the maintenance provision. During H2, as a result of the high
Slide 27: Debt maturity profile
DEBT MATURITY PROFILE Bond (Balance Sheet value) UKEF CCFF 1200 IFRS 16 Lease Liability 1000 800 600 400 200 0 FY22 FY23 FY24 FY25 FY26 FY27 FY28 UKEF - $100m repaid voluntarily April 2022, ahead of FY26 maturity CCFF - £300m repaid November 2021 No further debt maturities until FY’23 28 1) Based on
Slide 28: Loss after tax
Loss after tax £m H1 2022 H1 2021 Change1 Headline loss before tax (545) (701) 22.3% Headline tax credit 123 126 (2.4%) Headline loss after tax (422) (575) 26.6% Non-Headline items (12) 56 (121.4%) Non-Headline tax (charge)/credit 3 (30) (110.0%) Total loss after tax (431) (549) 21.5% Effective tax
Slide 29: Revenue breakdown
Revenue breakdown Group revenue, £m H1 2022 H1 2021 Change1 Airline passenger revenue 985 170 479.4% Airline ancillary revenue 458 67 583.6% Holidays revenue2 55 3 1,733.3% Total revenue 1,498 240 524.2% Airline revenue per seat, £ H1 2022 H1 2021 Change1 Passenger revenue 32.49 26.47 22.7% Ancillar
Slide 30: Headline cost per seat
Headline cost per seat Weighted Variance at Variance at variance at Cost per seat constant constant Drivers constant currency1 currency1 currency1,2 £ £ % % • Increased load factors Airports and ground handling 15.65 (3.03) (23.1)% (2.3)% • Increase in de-icing events • Volume and productivity impro
Slide 31: Fleet profile
Fleet profile H1 2022 H1 2021 Change1 A319 (leased) 64 67 (3) A319 (owned) 35 45 (10) A319 Total 99 112 (13) % of fleet 30.7% 33.9% (3.2%) A320 (leased) 69 69 - A320 (owned) 139 135 4 A320 Total 208 204 4 % of fleet 64.6% 61.8% 2.8% A321 (leased) 11 11 0 A321 (owned) 4 3 1 A321 Total 15 14 1 % of fl
Slide 32: Non-headline items
Non-headline items H1 2022 H1 2021 Change1 Description £m £m £m • £21 million loss as a result of the sale and leaseback of 10 aircraft in the period (H1 2021: £60 million gain as Sale and leaseback (loss)/gain (21) 60 (81) a result of the sale and leaseback of 35 aircraft) Restructuring costs • £8
Slide 33: Currency impact
Currency impact Revenue Costs H1 2022 H1 2021 H1 2022 H1 2021 Sterling 45% 30% 37% 67% Euro 45% 54% 24% 5% US dollar 0% 0% 33% 22% Other (principally Swiss franc) 10% 16% 6% 6% Average effective Euro rate for revenue for H1 2022 was €1.19(H1 2021: €1.10) Average effective Euro rate for costs for H1
Slide 34: Q2 Passenger Statistics
Q2 Passenger Statistics January 2022 2021 Change Passengers (‘000) 2,301 456 405% Load Factor 68% 58% 10ppts February 2022 2021 Change Passengers (‘000) 3,904 367 965% Load Factor 81% 60% 21ppts March 2022 2021 Change Passengers (‘000) 5,340 405 1,217% Load Factor 81% 61% 20ppts 35