Slide 1: FY23 Trading and business update
FY23 Trading and business update 12 October 2023
Slide 2: Key messages
Key messages Executing our plan Today’s business update: Current medium term targets delivered > FY23 Trading update Low to mid teen ROCE > Ambitious new targets Mid teen EBITDAR Margin > Proposed aircraft order easyJet holidays delivers >£100m > Capital allocation framework PBT 2
Slide 3: FY23 Financial summary
FY23 Financial summary 2023 Financial year1 > PBT to be between £440 - £460 million > Holidays delivers around £120 million PBT > Q4 Record PBT delivered: £650 - £670 million Q4 RPS +9% YoY – guidance c.10% Q4 CPS ex fuel flat YoY > H2 Record PBT delivered: £850 - £870 million H2 RPS +15% YoY
Slide 4: Business Update
Business UPDATE
Slide 5: Medium term targets
Medium term targets Group PBT1 per seat Holidays PBT1 to Disciplined capacity High teen ROCE2 of £7-£10 >£250m growth c.5% CAGR3 Targeting high teen Airline EBITDAR Margins > Reducing winter losses Profitable restoration of winter capacity driving productivity and utilisation gains > Upgauging >
Slide 6: Making low-cost travel easy
Making low-cost travel easy Building Europe’s best network Transforming revenue > Increased positions at constrained > Continual revenue management Medium term targets airports where returns are best enhancements > Profitable capacity growth in winter to > Ancillary offering delivering strong Group
Slide 7: Building Europe's best network
Building Europe's best network Reducing winter losses H1’24 capacity growth > H1’23 contribution higher than historical levels +14% > Post covid lack of volume drove winter losses +14% > c.13% capacity growth this winter Focussed on Continued profitable Q1 recovery as Focused growth on strongest c
Slide 8: Building Europe's best network
Building Europe's best network = Destination base Increased concentration at highest returns airports Capacity %1 2019 2023 Delta Fully constrained (IATA L3) 37% 42% +5 ppts Constrained at peak times (IATA L2) 30% 39% +9ppts Other 33% 19% -14ppts Capacity growth c.5% CAGR1 > Upgauging To deliver >
Slide 9: Transforming revenue
Transforming revenue c.£1bn of additional revenue already generated In-flight retail Airline ancillary revenue per seat sold > Delivered profit improvement – more growth to come Self help initiatives delivering FY23 Previous model FY23 £26.27 Conversion 20% 20% - Spend per seat £2.12 £1.85 +17% Prof
Slide 10: Executing the next phase of our plan
Fastest growing, lowest cost, highest margin Executing the next phase of our plan travel business in the UK > Further grow market share in the UK to >10% > Around £120 million PBT delivered for FY23 Continue Leisure and City Break growth New products > 77% YoY customer growth > New source market
Slide 11: Delivering ease and reliability
Delivering ease and reliability Industry leading customer perception - #1LCC1 UK FR CH Delivering on value #1 #1 #1 Brand awareness #1LCC #1LCC #1LCC Delivering on network #1LCC #1LCC #1LCC Delivering on reliability #1LCC #1LCC #1LCC Making travel easy #1LCC #1LCC #1LCC Source: Delineate Brand Track
Slide 12: Driving our low-cost model
Driving our low-cost model Upgauging the fleet A319 A320ceo A320neo A321neo > Current average gauge of 179 to grow to: Number of seats 156 180/186 186 235 Low 190s by FY’28 Current fleet 95 172 54 15 Low 200s by FY’34 Average age (years) 15 10 4 4 > >£3 cost per seat saving from upgauging to FY2
Slide 13: Pioneering sustainable travel
Pioneering sustainable travel Net zero roadmap - development Tracking ahead of FY23 performance plan Aircraft order to provide significant emission intensity improvements SAF supply agreement in place DACCS Agreement 13
Slide 14: Aircraft order
easyJet AIRCRAFT ORDER
Slide 15: Aircraft order Key messages
Aircraft order Key messages Proposed aircraft order: > FY29 to FY34 delivery window > Secures scarce order book positions > Consistent renewal necessary to replace aging aircraft and meet net zero pathway > Drives profitability due to substantial fuel and carbon efficiencies & upgauging > Excellent
Slide 16: Aircraft order book overview
Aircraft order book overview Existing arrangements with Airbus > 69 A320neo family aircraft already delivered > Replace A319 and some A320ceo Aircraft currently in the fleet > 158 firm orders due by 2028 > Move the average gauge from 179 seats to low 190s 90 A320neo aircraft > Provide capacity gro
Slide 17: Highly competitive process
Highly competitive process Process timeline Fleet modernisation > December 2022: RFP issued to OEMs > Replacement of A319 Aircraft and c.50% A320ceo > February 2023: First submissions received from OEMs aircraft > February – June 2023: Negotiations > Delivering lower fuel burn, CO2 emissions and ope
Slide 18: Fleet growth & modernisation
Fleet growth & modernisation Current base fleet plan to FY33 336 346 358 370 383 395 408 421 435 449 464 500 > Upgauging 450 400 Low 190s by FY28 183 350 30 47 63 83 98 128 153 171 Low 200s by FY33 15 16 300 69 > Fleet modernisation 54 72 83 96 250 127 153 A319s retired by FY30 163 200 172 171
Slide 19: Driving shareholder value
Driving shareholder value
Slide 20: Capital allocation framework
Capital allocation framework Objective Metrics FY23 Progress > High asset efficiency > Aircraft utilisation >10 hours a day > 9.1 hours asset utilisation, +15% YoY Capital discipline > Maintain fleet flexibility > Capacity growth c.5% CAGR1 > 14% capacity growth from 5% fleet growth to 336 aircraft
Slide 21: Our priorities – delivering shareholder value
Our priorities – delivering shareholder value Building Europe’s Best Transforming Delivering ease and Driving our low-cost Network revenue reliability model Capital allocation and capacity growth discipline Supported by Strong balance sheet Dividends restarted & attractive long term shareholder valu
Slide 22: easyJet Q&A
easyJet O&A