Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — FY2021 Earnings Presentation
20 slides from Wizz Air's earnings presentation, Jun 2, 2021
Slide 1: Wizz Air Holdings Plc F21 Results
WIZZ AIR HOLDINGS PLC F21 RESULTS 2 JUNE 2021 F21 is the financialyear ended 31 March 2021
Slide 2: Full Year F21 Highlights
FULL YEAR F21 | HIGHLIGHTS A challenging year, but creating unique opportunities for the future Wizz Air’s market position continued to strengthen in F21 Strong cash discipline; liquidity at EUR 1.6bn end March 2021 Investment grade rated by Moody’s (Baa3) / Fitch (BBB-) Broadened network from 25 to
Slide 3: F21 Key Business Metrics
F21 | KEY BUSINESS METRICS Passengers 10.2m (-75%) Aircraft* 137 (+16) 255+ new routes Airports 167 (+14) 800+ routes Bases 43 (+18) in total Countries 48 (+3) 2020 Airline of the Year 1st airline with EASA AoC Most sustainable company in the airline industry 2021 *end March 2021 PAGE 3
Slide 4: Strengthening Our Core Market Position
F21 | STRENGTHENING OUR CORE MARKET POSITION Market Share F19 F20 F21 Total CEE 16% 18% 21% LCC CEE 39% 40% 46% 43% F20 38% 38% F21 35% 32% 32% 28% 25% 23% 24% 21% 15% 10% 11% 6% 6% 5% 4% 3% 0% Poland Romania Hungary Bulgaria Bosnia and Serbia Albania UK Austria Italy Herzegovina CEE Markets Selecte
Slide 5: Financial Performance
F21 | FINANCIAL PERFORMANCE F21 F20 Change Revenue (€m) 739.0 2,761.3 (73.2%) Underlying EBITDA (€m)* (89.2) 783.4 n.m. Underlying EBITDA margin (%) (12.1) 28.4 n.m. Statutory net profit/(loss) (€m) (576.0) 281.1 n.m. Statutory net profit/(loss) margin (%) (77.9) 10.2 n.m. Underlying net profit/(los
Slide 6: Focus on Cost and Cash
F21 | FOCUS ON COST AND CASH CASK (€ cent) Annual Cost (€m) Change F21 F20 F21 F20 Fuel 1.36 1.25 347.4 876.5 (60.4%) Staff costs 0.52 0.33 132.9 231.8 (42.7%) Distribution & marketing 0.08 0.06 19.6 44.1 (55.5%) Maintenance, materials & repairs 0.65 0.25 165.7 176.4 (6.1%) Airport, handling & en-ro
Slide 7: Liquidity Key Priority
F21 | LIQUIDITY KEY PRIORITY € million Q1 Q2 Q3 Cash refers to total cash and comprises cash and cash equivalents, cash deposits > 3 month and restricted cash. PAGE 7
Slide 8: Investment Grade Balance Sheet
F21 | INVESTMENT GRADE BALANCE SHEET € million 1,617 169 Q4 all-in cash burn of €28m per month 1,202 165 Maintained investment grade rating from Fitch / Moody’s £300m CCFF in end Dec ‘20 and end Mar ‘21 position 1,448 €500m from 3-year 1.35% bond in Mar ‘21 position 1,037 No overdue refunds to passe
Slide 9: Ancillary Strength
F21 | ANCILLARY STRENGTH Ticket Revenue/PAX -5.7 EUR • Ancillary 54% of total revenue on a like-for-like basis. Ancillary Revenue/PAX +9.2 EUR • Ancillary revenue/pax grew to EUR 40.5; +9.2 EUR all- in or + 5.7 EUR like for like*. 31.3 • Dynamic pricing, new innovative products/features and 40.5 dig
Slide 10: Looking Ahead: Focus Areas
LOOKING AHEAD: FOCUS AREAS FOCUSED STRONGER ULTRA-LOW MORE DIVERSE COST MODEL NETWORK DRIVING A LEADING SUSTAINABILITY DIGITAL LEADERSHIP PLATFORM PAGE 10
Slide 11: 1. Focused Ultra-Low Cost Model
1. FOCUSED ULTRA-LOW COST MODEL High Seat Count and Low Fleet Age High Percentage on Ancillary Revenue 60% 240 6 50% 230 5 4 40% 220 3 30% 210 2 20% 200 1 10% 190 0 0% F20 F21 F22 F23 F24 F25 F26 F27 F20 F21 F20 F21 2019 2020 Average Seat Count Fleet Age Ryanair EasyJet* High Percentage on Secondary
Slide 12: 2. A Stronger, More Diverse Network
2. A STRONGER, MORE DIVERSE NETWORK 43 operating or announced bases, added 255+ new routes • Bases expanding from 25 to 43, driving faster recovery • Reinforcing our core CEE markets • Reinforcing leading travel markets (UK and Italy) • Start of Wizz Air Abu Dhabi • Growing brand awareness and recog
Slide 13: 3. Driving Sustainability Leadership
3. DRIVING SUSTAINABILITY LEADERSHIP Reducing Emission Intensity Improving Gender Diversity CO2 Emissions (g/RPK) 50% % female colleagues Management Flight Crew 77 40% 63 -25% by F30 Strong Focus 57 51 49 47 LTIP criterium 30% 27% LTIP criterium 45 44 43 43 43 Industry leader Board 17% Fleet driven
Slide 14: 4. A Leading Digital Platform
4. A LEADING DIGITAL PLATFORM Digital Platform Focus Share of Sessions F19 94% revenue through digital channels Highest ancillary revenue ratio F20 Traffic and revenue migration to mobile F21 Frictionless customer journey: interactive travel map, refund automation, price alerts 0% 10% 20% 30% 40% 50
Slide 15: Signs of Recovery Despite Restrictions
SIGNS OF RECOVERY DESPITE RESTRICTIONS Fleet Growth + Network Growth + Agile DNA + Lowest Cost = Ramp up ready 100% 90% F21 ramp up/down agility 80% Weekly Revenue Trend (as % of 2019 sales) 70% 60% 50% 40% 30% 20% 10% Routes unrestricted 0% 10-May 12-May 14-May 16-May 18-May 20-May 22-May 24-May 11
Slide 16: Outlook
OUTLOOK Mobility restrictions driving timing of recovery and financial result in F22 F22 Q1 at 30% capacity; FY capacity pending restrictions / cash positive flying Q2 peak ASK may exceed 2019, Q4 onwards may trend above 2019 ASKs Cost discipline via return to benchmark asset utilization: fleet, net
Slide 17: Conclusion
CONCLUSION Wizz Air uniquely positioned as the lowest cost provider Our strong liquidity and balance sheet allow us to capture opportunities Geared for a faster restart We have the assets in place for a leading position in sustainability Outlook for F22 still uncertain; signs of recovery give confid
Slide 18: 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 19: Appendix: Hedge Program
APPENDIX: HEDGE PROGRAM EUR/USD Jet Fuel 258% 267% 243% 44%* HEDGE COVERAGE 28%* FY22 FY22 11 months 6 months Capped rate $1.16 $554 Floor rate $1.12 $503 * Excluding discontinued hedges, the Company`s foreign currency and fuel hedge coverage for F22 is 22 per cent and 28 per cent respectively. PAGE
Slide 20: Appendix: An Even More Competitive Fleet
APPENDIX: AN EVEN MORE COMPETITIVE FLEET 268 246 20 221 18 198 12 188 6 160 167 129 148 137 112 121 82 112 49 8 22 93 2 79 38 41 41 67 26 41 4 16 6 41 41 37 6 25 15 72 6 7 63 67 72 68 52 22 30 40 63 38 32 21 13 5 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22E FY 22/23E FY 23/24E FY