Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — H1 F22 Earnings Presentation
21 slides from Wizz Air's earnings presentation, Nov 4, 2021
Slide 1: Wizz Air Holdings Plc H1 F22 Results
WIZZ AIR HOLDINGS PLC H1 F22 RESULTS 4 NOVEMBER 2021 F22 is the financialyear ending 31 March 2022
Slide 2: H1 F22 | Highlights
H1 F22 | HIGHLIGHTS Summer CY2021 ramp-up towards CY2019 level of operation Operating profit of €57m in the summer quarter Cash positive performance – with liquidity at €1.7bn end September Investment-grade credit rating with Fitch and Moody’s maintained Continued macro challenges – COVID-19 and com
Slide 3: H1 F22 | Key Business Metrics
H1 F22 | KEY BUSINESS METRICS versus H1 F21 Passengers 12.5m (+93%) Aircraft* 144 (+12) 222+ new Airports 195 (+28) routes Bases 44 (+8) 1155+ routes in total Countries 52 (+8) 2020 Airline of the Year 1st airline with EASA AoC 2021 Most Sustainable Company 2021 Airline of the Year *end Sept 2021 PA
Slide 4: Ramping Up Towards CY2019 Levels
RAMPING UP TOWARDS CY2019 LEVELS Weekly ASK as % of 2019 ASK (same week); Booked Load Factor 120% 100% 80% 60% 40% 20% Calendar Week 0% 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Load Factor ASKs vs 2019 *CY2019 counted 53 weeks whereas CY2021 52 wee
Slide 5: Q2 F22 | Strength Across Markets
Q2 F22| STRENGTH ACROSS MARKETS Q2 F22 market share versus Q2 F20 70% 62% 61% 60% 50% 42% 41% 39% 40% 37% 35% 34% 30% 31% 30% 27% 22% 22% 22% 22% 19% 19% 20% 18% 17% 15% 13% 11% 11% 11% 8% 9% 10% 7% 7% 6% 5% 6% 4% 4% 3% 0% Albania Austria B&H Bulgaria Cyprus UK Hungary Italy Latvia Lithuania Moldova
Slide 6: H1 F22 | Financial Performance
H1 F22 | FINANCIAL PERFORMANCE H1 F22 H1 F21 Change Revenue (€m) 880.4 471.2 86.8% Operating cost (€m) 932.3 716.8 30.1% Operating profit / (loss) (€m) (51.9) (245.6) n.m. Net (loss) (€m) (120.9) (243.1) 50.3% Underlying net (loss) (€m)* (125.2) (144.9) 13.6% Net foreign exchange (loss) (€m)** (26.8
Slide 7: H1 F22 | CASK Focus
H1 F22 | CASK FOCUS CASK (€ cent) Half Year Cost (€m) H1 F22 H1 F21 H1 F20 H1 F22 H1 F21 Change Fuel 0.99 1.61 1.15 256.9 265.4 -3.2% Staff costs 0.37 0.45 0.31 97.2 73.4 32.3% Distribution & marketing 0.08 0.07 0.06 21.2 12.0 77.2% Maintenance, materials & repairs 0.22 0.39 0.23 58.8 64.4 -8.9% Air
Slide 8: H1 F22 | Cash Position Maintained
H1 F22 | CASH POSITION MAINTAINED € million 1,663 1,670 1,617 163 159 169 Cash-positive despite ongoing COVID-19 impacts Investment grade balance sheet maintained (Fitch, 1,448 1,500 1,512 Moody’s). Fitch outlook from negative to stable. Continued short booking window 31 Mar 21 30 Jun 21 30 Sept 21
Slide 9: Q2 F22 | Investment Grade Balance Sheet
Q2 F22 | INVESTMENT GRADE BALANCE SHEET € million Total cash comprises cash and cash equivalents, short-term cash deposits, and current and non-current restricted cash. PAGE 9
Slide 10: H1 F22 | Ancillary Performance
H1 F22 | ANCILLARY PERFORMANCE Ticket Ancillary 41.6 37.4 32.3 ✓ Ancillary 53% of total revenue ✓ Growth ahead of our target of 1 EUR/PAX/year increase ✓ Conversion of core products, dynamic pricing and product portfolio are the key drivers ✓ Increase will normalize to our long- term target for full
Slide 11: Preparing the Ground for F23
PREPARING THE GROUND FOR F23 1. Strengthened H1 F23 fleet plan 2. Complement a proven network with high-potential markets 3. Growing the workforce driving full asset utilization as of Spring 2022 PAGE 11
Slide 12: Vaccination Provides the Foundation
VACCINATION PROVIDES THE FOUNDATION Restraint of the unvaccinated 77% 12% 1. Vaccination becoming a societal imperative, 76% mandated by policy makers and employers 10% 75% 8% 2. Elections and public opinion driving improving stringency indices for the 74% 6% vaccinated 73% 4% 3. Aspiring travellers
Slide 13: COVID-19 Status
COVID-19 STATUS % of markets reaching 70% of full population vaccination (as measured in ASKs based) 120% Winter 2021/2022 Summer 2022 Winter 2022 100% 80% 60% 40% 20% 0% Today Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 PAGE 13
Slide 14: 1. Strengthened Spring/Summer 2022 Fleet
1. STRENGTHENED SPRING/SUMMER 2022 FLEET 240 220 ✓ Stronger Spring/Summer 2022 plan 200 ✓ Advancements and extensions 180 ✓ Cost of ownership continued to improve ✓ EUR vs USD exposure 160 ✓ Power by the Hour (extensions) 140 ✓ Optimized lease length ✓ F24 seat count to 225, fleet age to 4.4 years 1
Slide 15: 2. Stronger Network Versus Pre-COVID-19
2. STRONGER NETWORK VERSUS PRE-COVID-19 S19 Fleet level Additional Fleet Core CEE Italy UK Ukraine Albania Abu Dhabi Macro Events PAGE 15
Slide 16: 3. Growing Our Workforce
3. GROWING OUR WORKFORCE Ramping up our workforce post COVID-19 to enable full fleet utilization by Spring 2022 150.0 C19 COVID-19 ‘save and see’ Gradual ramp-up Full utilization 140.0 130.0 120.0 110.0 100.0 90.0 80.0 70.0 60.0 Jan-20 Jun-20 Jul-20 Jan-21 Jun-21 Jul-21 Jan-22 Jun-22 Jul-22 Mar-20 M
Slide 17: Committed to Sustainability
COMMITTED TO SUSTAINABILITY • Greenairport - Partner of the Year Award • Employee satisfaction survey with 70% from Budapest airport participation at 7.4 (in line with 7.5 • Wizz Air signed SBTi commitment letter industry average) • Wizz Air discloses into CDP (results end • Wizz Air sees 70% accept
Slide 18: Outlook
OUTLOOK H2 strong demand in peak periods, but muted demand in off periods. Q3 capacity will match 2019, Q4 will exceed those levels*. Q3 continued investment in fleet, network, crew – full utilization Spring ‘22 onwards. Stimulating demand with pricing given COVID-19 impacts. Continued volatility in
Slide 19: 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 20: Appendix: Hedge Program
APPENDIX: HEDGE PROGRAM Jet Fuel EUR/USD 258% 267% 243% 267% HEDGE COVERAGE 0% 7% F22 5 months 0 months Capped rate $1.15 Floor rate $1.20 PAGE 20
Slide 21: Appendix: Industry-Leading Fleet
APPENDIX: INDUSTRY-LEADING FLEET 268 246 20 220 18 202 12 188 6 178 160 129 150 114 137 121 88 112 49 8 22 93 2 79 38 41 41 67 26 41 16 6 41 41 4 6 37 25 6 15 67 72 72 7 63 63 68 54 22 30 40 43 34 20 13 5 F 15/16 F 16/17 F 17/18 F 18/19 F 19/20 F 20/21 F 21/22E F 22/23E F 23/24E F 24/25E F 25/26E F