Ryanair Holdings Plc · EURONEXT:RYA
Ryanair — H1 FY22 Earnings Presentation
22 slides from Ryanair's earnings presentation, November 2021
Slide 1: FY22 H1 Results
RYANAIR MORE CHOICE. LOWER FARES. GREAT CARE. FY22 H1 Results Nov. 2021
Slide 2: Europe's Lowest Cost Airline Group
Europe’s Lowest Cost Air line Group Lowest fare/lowest cost airlines No. 1, Traffic: 90m-100m (149m pre C-19) No. 1, Cust. service / OTP 90% Ind. leading “B-” CDP climate rating Strong (BBB) bal. sheet (S&P & Fitch) Fin. strength + lowest cost = L.T. winner 2 2
Slide 3: Europe's No. 1 Coverage
E u r o p e ’s N o. 1 C ove r a g e 89 bases / 230 airports 37 countries 14 new bases - S.21: ZAG/ZAD/CFU/CHQ/RHO/TSF - W.21: RIX/BLL/ARN/TRN/AGA - S.22: NCL/ORK/VCE Over 2,400 routes (560 new) Faster 5 year growth plan 225m guests p.a. by FY26 3 3
Slide 4: Europe's Lowest Costs Wins!
Eur ope’s Lowest Costs W ins! € per pax RYA WIZ EZJ NOR E’Wings LUV Staff/efficiency 7 6 10 19 20 55 Airport & Hand. 8 11 22 19 18 9 Route Charges 5 5 5 7 7 0 Own’ship & maint. 7 14 9 28 21 17 S & M other 4 3 7 14 28 20 Total 31 39 53 87 94 101 %> Ryanair +26% +71% +181% +203% +226% (Source: Pre Cov
Slide 5: H1 FY22 Results
H1 FY22 Results H1 FY21 H1 FY22 Guests (m) 17.1 39.1 +128% Load Factor 72% 79% +7pts Revenue €1.18bn €2.15bn +83% Op. cost €1.35bn €2.20bn +63% Net loss €(411m) €(48m) n/m 5 5
Slide 6: H1 FY22 Balance Sheet (BBB)
H1 FY22 Balance Sheet (BBB) €’bn Mar 21 Sep 21 Assets 9.18 9.83 c.90% B737 fleet unencum. (€7.6bn book val.) Cash 3.15 4.24 Strong liquidity - CCFF £600m repaid (Oct.) Total 12.33 14.07 Accruals 2.25 3.39 - New €1.2bn 5 yr bond @ low 0.875% coupon (May) Debt 5.43 5.74 - Repaid €850m (2014) bond @ 1.
Slide 7: Current Developments
Cur r ent Developments Strong traffic recovery into W.21 (Oct. mid-term & Christmas) Industry leading ESG perf. – 50% lower CO2 than flags Traffic outlook: moving ahead of 90m – 100m range in FY22 EU cost leadership widens – lower cost fin., apts, a/c & staff Fuel hedged to 80% for Q4 FY22
Slide 8: Strong traffic recovery into W.21
S t r o n g t r a f f i c r e c o v e r y i n t o W. 2 1 LF act. / yield pass. – recover strongly into W.21 Loads (80%+) & yields recovering Maj. of UK / EU pop. vaccinated A/c & crews kept current for rapid recov. Oct mid-term & Christ. booking strongly – Easter & S.22 next FY22 traffic
Slide 9: Leading EU post-COVID recovery
L e a d i n g E U p o s t - C OV I D r e c ove r y Top EU Airlines ATC Fees Sept. 2019 Sept. 2021 % Diff €m €m Ryanair 63.8 58.3 -9% easyJet 43.3 24.5 -43% Lufthansa 34.3 19.7 -43% Air France 24.3 14.8 -39% Wizz Air 14.7 13.7 -7% British Airways 24.6 13.1 -47% KLM 15.7 12.5 -20% Vueling 13.9 8.4 -40
Slide 10: EU cost leadership widens
EU cost leadership widens FY20 per pax Cost savings: (ex fuel) • Pay deals agreed & extended Staff/efficiency €7 • Pay cuts of 5% to 20% (restored over 3/5 years) – built in flexibility • Growth deals as B-8200s drive vol. discs. (WIP) • STN, BGY, CRL, MAN, EMA low-cost base deals extended to 2028-3
Slide 11: 65+ "Gamechanger" for peak S.22
65+ “Gamechanger” for peak S.22 65+ delivs. for peak S.22 (210 orderbook) Gamechangers +4% seats, -16% fuel Envir. savings: less fuel / CO2 / noise Lower cost B-8200 widens cost adv. for next decade Fleet grows to 620+ a/c, traffic grows to 225m p.a. by FY26 MAX-10 discussions terminated
Slide 12: Growth accelerates to 225m guests p.a.
Growth accelerates to 225m guests p.a. Competitors fail / shrink – sig. EU cap. cuts (LUF, Alitalia, TAP, NAS) Airports need recov. – growth incentives (STN, BGY, CRL, MAN, EMA) EU Govts. stimulate recovery – IRE / SP / IT / MOR 14 new bases announced in 2021 (incl. 3 for S.22) 560 new rou
Slide 13: Aircraft Growth for 2021/2022
Aircraft Growth for 2021/2022 Existing bases a/c New bases a/c Vienna 11 Stockholm 2 Stansted 6 Venice MP 3 Manchester 3 Venice Trev 2 Rome 3 Zagreb 3 Milan 5 Zadar 3 Naples 3 Turin 2 Bologna 3 Newcastle 2 Lisbon 3 Agadir 2 Warsaw 2 Billund 2 Gdansk 2 Riga 2 Katowice 2 Cork 2 Poznan 2 Greek Islands
Slide 14: Gamechangers drive faster growth to 225m p.a.
Gamechanger s drive faster g rowth to 225m p.a. M Subject to COVID Guests 225 210 x B737 Total “Gamechanger” 220 order 205 185 More seats Less fuel 180 Lower costs 165 149 Addit. capac. for airports to 140 restore traffic 90 -100 Lower apt. & 100 hand. costs Lower fares 60 Traffic + profit growth 27
Slide 15: ESG update
ESG update Ambitious envir. targets: - CO2 10% by 2030 (to 60 g’s) / Net neutral 2050 - Goal of 12.5% flights on SAF by 2030 - Improve CDP score to “A” in 2 years Invest in people & training (€50m DUB centre) 5,000 new jobs over next 5 years Enhanced people engagement (NED for WF engagemen
Slide 16: Customer Program for 2022
Customer Program for 2022 ➢ New 6 person Customer Advisory panel Customer panel ➢ Met DUB (Sept 21) & MAD (May 22) ➢ Inputs & approves c’mer program for 2022 ➢ Real-time updates on airport & gate info App Assistant (Day of Travel) ➢ Live flight status & boarding updates ➢ Live Ops Centre videos
Slide 17: Summary
Summar y Traffic & LF recovery continues into W.21 FY22 Traffic: ahead of 90m – 100m range (i) Expect FY22 loss between €100m & €200m – subject to W.21 yields Low fares drive strong recovery in FY22 (load active / yield passive) Faster post-COVID growth: 225m guests p.a. by FY26 Strong B
Slide 18: Appendices
Y/ Appendices >» @RYANAIR MORE CHOICE. LOW FARES. GREAT CARE.
Slide 19: Appendix: Fuel hedging update
Appendix: Fuel hedging update (i) (ii) Jet (met. tonne) Fuel Swap Fuel Option H2 FY22 (70%) $580 (50%) $750 (20%) H1 FY23 (80%) $620 (60%) $715 (20%) H2 FY23 (60%) $625 (60%) - (i) Swap rate (ii) Cap rate FY22 FY23 Carbon (EUA) €24 (100%) €40 (70%) 19 19
Slide 20: Appendix: Ryanair & The Environment
A ppendix: Ryanair & T he Envir onment Thomas Fowler – Director of Sustainability 20 20
Slide 21: Appendix - EU Ownership & Control
Appendix - EU Ownership & Control EU/UK Trade and Cooperation Agreement in force since 1 Jan 2021 EU ownership & control conditions satisfied – Voting rights of non-EU (incl. UK) shareholders restricted – Non-EU (incl. UK) nationals not allowed to buy Ryanair Ord. Shares (but can buy ADRs) – For
Slide 22: Disclaimer
Disclaimer Certain of the information included in this presentation is forward looking and is subject to known and unknown risks and uncertainties that could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. By their nat