Slide 1: Company background
Company background August 2013 1
Slide 2: Europe's leading short haul air travel network
Europe's leading short haul air travel network • 58.4m passengers, 65.9 m seats flown; load factors 88.7% • fleet of 214 aircraft with an average fleet age of 4.4 years • leading presence on Europe’s top 100 routes • operates on over 605 routes across more than 30 countries • strong position in key
Slide 3: Strong track record of delivery
Strong track record of delivery Industry leading on-time performance(1) Excellent customer satisfaction (2) 89% 87% 87% 87% 82% 82% 84% 85% 79% 80% 82% 83% 80% 80% 76% 77% 77% 76% FY'11 FY'12 FY'11 FY'12 FY'11 FY'12 FY'11 FY'12 KLM Lufthansa Air France British Airways Ryanair easyJet Overall Satisfa
Slide 4: Environment creating opportunity for easyJet
Environment creating opportunity for easyJet Industry Headwinds + Competitive environment + Competitive advantages = Growing returns • Economic • Legacy carriers 1. Efficient, low Clear opportunity uncertainty & incurring cost model to deliver sluggish growth significant short 2. Strong network sust
Slide 5: Profitable opportunities within existing markets
Profitable opportunities within existing markets Share of traffic within easyJet’s Growth in existing markets top 20 airports • easyJet has approximately 22% share of capacity at its top 20 airports – equating to around 46 m seats EZJ Other LCC 46m seats • Other low cost carriers (LCCs) have 51m sea
Slide 6: Continued competitor capacity retrenchment
Continued competitor capacity retrenchment Capacity growth H2‘ F’13 (OAG) Capacity H2’12 H1 ‘13 H2’13 change (YOY) capacity capacity capacity easyJet change 13% Competitors on easyJet markets Competitors on -3.0% -2.8% -1.0% Total change on easyJet markets EZJ routes 7% easyJet +7.5% +3.3% +3.5% 4%
Slide 7: Strategy to drive growth and returns
Strategy to drive growth and returns Leverage easyJet’s cost advantage, leading market positions and brand to deliver point-to-point low fares with operational efficiency and friendly service for our customers 1. Build strong number 1 • Sustainable growth and 2 network positions • (slightly in exces
Slide 8: 1. Network: Build strong number 1 & 2 positions
1. Network 1. Network: Build strong number 1 & 2 positions positions Building strong number 1 or 2 positions at major airports(1) Airport Share Position London Gatwick 46% No.1 Geneva 38% No.1 Milan Malpensa 37% No.1 Paris Orly 13% No.2 Lisbon 13% No.2 Paris CDG 11% No.2 Amsterdam 10% No.2 • Highest
Slide 9: 1. Network: Strong slot position at key airports
1. Network 1. Network: Strong slot position at key airports positions Percentage of capacity in Level 3 Summer ‘12 Gatwick departures co-ordinated airports 0600-0855 80% 70% Others, 6% 70% easyJet, 45% Aer Lingus, 4% 60% 50% Flybe, 6% 41% 40% Thomas Cook, 30% 6% 20% Monarch, 7% 10% 0% Thomson, 11% B
Slide 10: 2. Drive demand: Digital developments
2. 1. 2. Drive demand: Digital developments Drive Demand demand Developments • easyJet is the 3rd most searched for airline globally • easyJet App now has 4.5m downloads • Flight tracker introduced used over 4 million times since launch • Over 4,000 updates posted • Inspire me launched in October •
Slide 11: 2. Drive demand: Brand recognition scores improving
2. Drive Drive 2. Drive demand: Brand recognition scores improving Demand Demand 98% 100% 98% 90% 92% 88% 19% 21% 12% 13% 6% 7% H1'12 H1'13 H1'12 H1'13 H1'12 H1'13 UK France Italy Total brand awareness Brand choice/preference Brand strength is building: • Sustained strong brand awareness in all mark
Slide 12: 2. Drive demand: Allocated seating on track
2. Drive 2. Drive demand: Allocated seating on track Demand Delivered against objectives 1. No impact on asset utilisation • Strong operational performance, best in class OTP 2. No negative impact on cost per seat 3. Drive increased customer satisfaction • Satisfaction with boarding experience has i
Slide 13: 3. Cost: easyJet lean
3. 3. Cost: easyJet lean Cost Advantage F’13 target areas Targeting an additional £35m in FY’13 c.£5m c.£135m • Optimise turn-time further c.£11m • Further optimise Ground Operations contracts and costs c.£6m • Opportunities from mini-base c.£13m openings • Merchant acquisition fees • Head office ef
Slide 14: 3. Cost: Innovating to reduce cost
3. 3. Cost: Innovating to reduce cost Cost advantage Bendibelt • New technology to load bags onto aircraft • Reduces headcount required to load bags from 3 to 2 people Forced air de-icing • Trialling forced Air technology • Potential to reduce de-icing fluid usage by c. 40-50% Reducing weight & fuel
Slide 15: Fleet order will enhance cost position
3. Fleet order will enhance cost position Cost advantage Move to 180 seat A320 enhances Move to new generation will allow easyJet’s cost per seat advantage easyJet to maintain its cost advantage 7-8% 4-5% Current Fuel Maintenance Crew Ground Ownership Other Current Fuel Ownership New generation ops
Slide 16: Clear set of financial objectives
4. Capital Clear set of financial objectives Discipline Objectives Measures FY’12 Progress Return • Earn returns in excess of cost of • Improve PBT per seat to GBP5 PBT improved by 84p to £4.81 Targets capital through the cycle • Post tax ROCE of 12% through the ROCE of 14.5%(1) • Invest in grow
Slide 17: Investing in returns and growth
4. Investing in returns and growth Capital Discipline Relative attractiveness vs. returns of major network points Liv’pool Attractiveness rating Madrid FY Returns (Network touching)* Framework for evaluating network • Reallocated capacity to higher returns and growth opportunities e.g. France and It
Slide 18: 4. Continued growth in network returns
4. 4. Continued growth in network returns Capital Discipline Rolling 12 months returns: April – March ‘13 vs. Improving returns April to March ‘12 • In 2012 - 56 routes were Returns delivering less than 40% of average ROCE; now only 20 routes • 18 Improved • 18 Dropped. E.g. o Liverpool: Brussels Ro
Slide 19: Flexible fleet arrangements
4. Flexible fleet arrangements Capital Discipline FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Fleet Plan 300 276 276 275 269 FY22 264 261 256 FY21 250 241 231 226 FY20 225 FY19 200 FY18 FY17 175 FY16 FY15 FY14 150 125 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Ability to downsize fleet to 165 air
Slide 20: Outlook and recent trends
Outlook and recent trends 20
Slide 21: Forward bookings
Forward bookings H2 bookings in-line with prior year % Seats 89% 88% FY'12 FY'13 sold * 74% 73% Q3 Jul Aug Sep H2 * As at 18 July 2013 H2 (Apr‘13 to Sept’13) 21
Slide 22: Hedging update
Hedging update Fuel US Dollar Euro requirement requirement surplus Three months to 30 September 2013 85% 82% 83% Average rate 1.17 $974/ tonne 1.59 Full year ending 30 September 2013 85% 83% 85% Average rate 1.18 $983/ tonne 1.60 Full year ending 30 September 2014 67% 65% 73% Average rate $984/ tonn
Slide 23: Outlook
Outlook Capacity (seats flown) • Q4 c.+3.1% (assuming no further significant disruption) • H2 c.+3.3% (assuming no further significant disruption) Revenue per seat (constant currency) • H2 up to 6% (assuming no further significant disruption) Cost per seat ex fuel (constant currency) • H2 c.+4% (ass
Slide 24: Recent financial information
Recent financial information 24
Slide 25: FY'12: P&L
FY’12: P&L £m F ’12 F ’11 Change Total revenue 3,854 3,452 11.6% Fuel (1,149) (917) (25.3)% Operating costs excluding fuel (2,174) (2,067) (5.1)% EBITDAR 531 468 13.5% Ownership costs (214) (220) 2.7% Profit before tax 317 248 27.9% PBT margin 8.2% 7.2% 1.0 ppt 25
Slide 26: FY'12: Financial results
FY’12: Financial results £m F ’12 F ’11 Change Profit before tax 317 248 27.9% Tax charge (62) (23) (169.6)% Profit after tax 255 225 13.3% Effective tax rate 19.6% 9.3% (10.4) ppt Earnings per share 62.5p 52.5p 19.0% Ordinary dividend per share 21.5p 10.5p 104.8% Special dividend per share - 34.9p
Slide 27: H1'13: Financial Results
H1’13: Financial Results £m H1’13 H1’12 Change B/(W) Total revenue 1,601 1,465 136 Fuel (496) (483) (13) Operating costs excluding fuel (1,042) (982) (60) EBITDAR 63 - 63 Ownership costs (124) (112) (12) Loss before tax (61) (112) 51 EBITDAR margin 3.9% 0.0% 3.9ppt Loss before tax margin (3.8%) (7.6
Slide 28: H1'13: Strong balance sheet
H1’13: Strong balance sheet £m Mar ‘13 Mar ‘12 Property, plant and equipment 2,192 2,193 Goodwill and other intangible assets 456 452 Other assets 554 591 Liabilities (excluding debt) (1,968) (1,772) 1,234 1,464 Debt 761 1,169 Cash and money market deposits (1,194) (1,211) Net debt / (cash) (433) (4
Slide 29: Investor relations contacts
Investor relations contacts Rachel Kentleton Director of Investor Relations, Strategy and Regulatory Affairs rachel.kentleton@easyjet.com +44 (0) 7961 754 458 Tom Oliver Group Investor Relations Manager tom.oliver@easyjet.com +44 (0) 7950 996 262 Will MacLaren Group Investor Relations Manager willia
Slide 30: Disclaimer
Disclaimer This communication is directed only at (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001; or (ii) high