Slide 1: easyJet FY 2021 Results Presentation
easyJet FY 2021 RESULTS PRESENTATION
Slide 2: Fast tracking our recovery
Fast tracking our recovery Transformed business Accelerating growth Strong financial platform > Optimising our network > Capturing growth opportunities > £4.4bn of liquidity with renewed ▪ Radically reallocating aircraft to strength to capture opportunities ▪ Operational fleet plan increased by 25 d
Slide 3: Financial review
Financial review Kenton Jarvis – CFO
Slide 4: Key performance indicators FY 2021
Key performance indicators FY 2021 FY 2021 FY 2020 Change1 Seats flown (m) 28.2 55.1 (48.8%) Passengers (m) 20.4 48.1 (57.6%) Load factor (%) 72.5% 87.2% (14.7)ppt Average sector length (km) 1,184 1,132 4.6% Airline revenue per seat - reported currency (£) 50.54 54.35 (7.0%) Airline revenue per seat
Slide 5: FY 2021 KPIs
FY 2021 KPIS FY2021 FY2021 Seats flown (m) FY2020 Passengers (m) FY2020 30 25 22.2 24.3 25 20 16.4 20 18.4 17.3 15 13.4 15 12.3 9.4 10 10 4.4 4.5 5 2.9 3.0 5 2.1 1.2 0.1 0.1 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2021 FY2021 Load factor (%) FY2020 Airline revenue per seat (£) FY2020 100 91.3 89.0 88.9 70 58.
Slide 6: Financial performance
Financial performance FY 2021 FY 2020 Change* £m £m Total revenue 1,458 3,009 (1,551) Headline costs: Headline costs excluding fuel, balance sheet revals and ownership (1,638) (2,561) 923 Fuel (371) (721) 350 Headline EBITDAR (551) (273) (278) Balance sheet foreign exchange gain1 9 - 9 Other ownersh
Slide 7: Revenue per seat
Revenue per seat FY’21 FY’20 Movement Reported RPS (7%) Ticket Yield* £48.94 £47.92 £1.02 RPS @ CC (6%) Ancillary Yield** £20.78 £14.41 £6.37 £2.64 > Deterioration driven by Covid pandemic £54.35 (£0.92) > Underlying passenger RPS driven by load factor (£5.17) > Mitigating actions include: ▪ Maximis
Slide 8: Headline cost per seat
Headline cost per seat Per seat metrics heavily impacted by volume reductions during FY’21 Reduction / (Increase) 53% 49% 21% 20% (7)% 23% 49% in absolute cost vs prior year at cc Headline CPS @ CC = (33%) (3.94) 91.72 (0.10) 91.82 0.32 1.09 90.41 (11.04) (2.85) (6.30) 69.03 1.43 0.01 FY 2020 headli
Slide 9: Headline Impact of fuel & currency
Headline Impact of fuel & currency FY 2021 fuel impact FY 2021 FY 2020 Change* Fuel $ per metric tonne Market price 554 575 21 Effective price 631 650 19 US dollar rate Market price 1.37 1.29 8 cents Effective price 1.35 1.33 2 cents Difference (0.02) 0.04 Actual cost of fuel £ per metric tonne 469
Slide 10: Strong cash management
Strong cash management £m Q1 Q2 Q3 Q4 FY21 Proceeds from Eurobond and UKEF - 1,804 - - 1,804 Proceeds from sale and leasebacks 748 62 - 26 836 Liquidity Repayment of debt - (1,044) - (1,044) Net proceeds from Rights issue 1 - - - 1,144 1,144 £4.4bn Net cash from Financing Activity 748 822 - 1,170 2,
Slide 11: Cashflow
Cashflow H2 cash generated from H1 net change in Cash & MMD: £19m financing: £1,170m H2 cash burn: £(10)m 264 1,571 454 (201) 1,144 26 41 3,536 (254) (328) (165) (34) (245) 2,316 2,335 (1,053) Cash & MMD Net proceeds Refunds paid CAPEX H1 other Cash & Net funding Proceeds Working capital Depreciatio
Slide 12: Debt maturity profile
DEBT MATURITY PROFILE IFRS 16 Lease Liability 1,200 CCFF Bonds 1,000 UKEF CCFF 800 repaid Nov ‘21 600 400 200 - FY'22 FY'23 FY'24 FY'25 FY'26 FY'27 FY'28 No further debt maturities until FY’23 Review of UKEF post Q2 when clearer sight of s22 bookings 13
Slide 13: Strong Investment grade balance sheet
Strong Investment grade balance sheet £m 30 September 2021 30 September 2020 Goodwill and other intangible assets 582 597 Property, plant and equipment 4,735 5,053 Derivative financial instruments 203 (327) Equity Investments 30 33 Other assets (excluding cash and money market deposits) 619 364 Unea
Slide 14: Flexibility in Fleet
flexibility in Fleet 335 > Current agreed Airbus order book; ▪ 118 Orders 330 328 ▪ 6 Purchase options 326 325 322 ▪ 53 Purchase rights 320 > LGW slots – not reflected within our fleet. These will be 319 315 covered with a combination of wet lease and 316 reallocation of owned aircraft 310 313 308 >
Slide 15: Gross capital expenditure
Gross capital expenditure > Growth capex resumes from FY’22 1,400 c.£1,300m Airbus NEO Deliveries: 1,200 > Capex projections assume: c.£1,000m ▪ 8 deliveries in FY’22 1,000 c.£900m (6 in H1 & 2 early H2) 800 ▪ 7 deliveries in FY’23 600 ▪ 18 deliveries in FY’24 400 200 - FY22 FY23 FY24 Aircraft Payme
Slide 16: Advantageous position: Fuel & FX hedging
Advantageous position: Fuel & FX hedging > easyJet has continued to hedge contractual exposures (such as lease & capex) ▪ As at 30 September 2021 easyJet is c.55% hedged for fuel in the financial year ending 30 September 2022 at US$498 per metric tonne with the spot price as at 29 November 2021 bein
Slide 17: CEO update
CEO update Johan Lundgren – CEO
Slide 18: Firm foundation to fast track our recovery
Firm foundation to fast track our recovery Funding actions through COVID-19 Building momentum > Raised £6.8bn Capacity vs FY’19 Load Factor Access to c.£4.4bn > Repaid £1.4bn debt H1 21 14% 64% of unrestricted liquidity > £0.3bn RCF in place Q3 21 17% 66% Largest ramp up Q4 21 58% 77% in Europe Oper
Slide 19: Delivering greater returns
Delivering greater returns Driving greater returns > Ruthless reallocation of 43 aircraft to higher returning bases > Ancillaries ▪ Baggage bundles – exceeding expectations & industry leading revenue management ▪ More to deliver - Inflight Retail > Up gauge Fleet – drive greater returns across exist
Slide 20: Strategic initiatives
strategic initiatives Network Customer Product easyJet Cost Focus Sustainability Strategy Excellence Portfolio Holidays Evolution Underpinned by our People & Operational and Digital Safety 21
Slide 21: Delivering Incremental growth
Delivering Incremental growth Growing in core primary slot constrained airports > Gatwick slots added for summer 22 > Milan Linate slots secured for W21 – additional daily flights added to both Amsterdam and Paris Orly > Portugal – slots secured for additional based aircraft in Porto and additional
Slide 22: Spotlight on Gatwick
Spotlight on Gatwick Targeted Growth London Gatwick operating fleet > Continue to build strength in primary airports which deliver the highest returns: 79 ▪ Reallocated and added fleet to Gatwick – closed Stansted & Southend bases and allocated to Gatwick 61 63 63 60 to take advantage of slots from
Slide 23: Decisive response to market changes
Decisive response to market changes FY21 Capacity recovery H2 FY’22 Destination Capacity Growth > Significant capacity ramp-up achieved: Q3 17% to Q4 58% > Expect capacity to have recovered close to FY19 levels by Q4 FY22 Greece Canaries > Strengthened leading position on UK domestics - since FY19 w
Slide 24: Customer trust built through the pandemic
Customer trust built through the pandemic > Driving customer confidence to book: > Accelerating demand recovery: Industry leading ▪ Industry leading Protection Promise category entry points ▪ Covid-19 Travel Hub: One stop shop, including UK FR CH IT access to testing at negotiated rates – 25m page D
Slide 25: Ancillaries deliver step change
Ancillaries Deliver step change Ancillaries driving incremental revenue Products launched Ancillary revenue mix 30% Standard Plus Fare (Jan 21) > Includes premium seat, large cabin bag, speedy boarding £2.64 23% Cabin Bags – Phase 1 (Feb 21) 22% incremental 21% > Sold with premium seat RPS 20% Cabin
Slide 26: Road map to £100m+ PBT
Road map to £100m+ PBT > Fastest growing major holiday company in Europe > Sold more holidays to date for summer 22 than entire full year 19 Europe’s most loved hotels > Directly contracted hotels – 63% of bookings > Only work with 4 and above rated on trip advisor Unrivalled flexibility > Exclusive
Slide 27: Cost focus drives competitive advantage
Cost focus drives competitive advantage Cost Actions Cost advantage on our network FY21 delivered £512m saving - almost half > Legacy carriers have a significantly higher cost base sustainable > Other LCC’s face increasing pressure: ▪ Crew retention issues Savings delivered in every cost line: ▪ Cre
Slide 28: Pioneering sustainable travel
pioneering Sustainable travel Sustainable travel leadership - taking action now Future travel pioneer > Launched first ever SAF flight from LGW in October 21 using a > Committed to the Race to Zero 30% blend > Champion zero emission flying - partners include Airbus and ▪ Operated SAF blend on all fl
Slide 29: Fast tracking our recovery: Outlook
Fast tracking our recovery Outlook > Q1 Capacity expected to be > Q2 Capacity is expected to be c.65% of FY’19 c.70% of FY’19 > Q1 Load Factor expected to be over 80% > Capacity expected to have recovered close to FY19 levels by Q4 FY22 Position of strength Delivering growth > £4.4bn liquidity > Gat
Slide 30: Q&A
Q&a
Slide 31: Appendix
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Slide 32: Delivering the recovery
Delivering the recovery Grow to pre pandemic Mid teen EBITDAR margins capacity by 2023 in the medium term Low to mid teen ROCE Holidays - Clear road map in the medium term for £100m+ PBT 33
Slide 33: Financial policies
Financial policies Hedging: Flexibility built into policy to react to changes in demand: easyJet has amended its jet fuel and USD hedging policies so that, where previously easyJet was hedged between 65 and 85% in year one and between 45 and 65% in year two, it will now be hedged to approximately 60
Slide 34: Depreciation and Interest
Depreciation and Interest Impact from sale and leaseback transactions Since the start of the pandemic Sale and leaseback transactions on 58 aircraft have been concluded, raising £1.5bn gross proceeds. These transactions will add c.£140 million to pro forma per annum headline costs within the depreci
Slide 35: Loss after tax
Loss after tax £m FY 2021 FY 2020* Change* Headline loss before tax (1,136) (835) (301) Headline tax credit 236 110 126 Non-Headline items 100 (438) 538 Non-Headline tax (charge)/credit (58) 84 (142) Total loss after tax (858) (1,079) 221 Total loss before tax (1,036) (1,273) 237 Total tax credit 17
Slide 36: Revenue breakdown
Revenue breakdown Total Group revenue, £m FY 2021 FY 2020 Change* Passenger revenue 1,000 2,303 (56.6%) Ancillary revenue 458 706 (35.1%) Total revenue 1,458 3,009 (51.6%) Ancillary revenue mix 31.4% 23.5% Airline revenue per seat, £ FY 2021 FY 2020 Change* Passenger revenue 35.48 41.78 (15.1%) Anci
Slide 37: Headline cost per seat
Headline cost per seat Weighted Variance at Variance at variance at Cost per seat constant constant Drivers constant currency* currency* currency* £ £ % % Airports and ground handling 15.01 1.43 8.5% 2.6% • Negotiations on Airport deals and marketing support • Reduced volumes resulting in reduced pr
Slide 38: Fleet profile
Fleet profile FY 2021 FY 2020 Change A319 (leased) 52 70 (18) A319 (owned) 45 52 (7) A319 Total 97 122 (25) % of fleet 31.5% 35.7% A320 (leased) 62 50 12 A320 (owned) 135 156 (21) A320 Total 197 206 (9) % of fleet 64.0% 60.2% A321 (leased) 11 7 4 A321 (owned) 3 7 (4) A321 Total 14 14 0 % of fleet 4.
Slide 39: Non-headline items
Non-headline items FY 2021 FY 2020 Change* Description £m £m £m £65 million net gain as a result of the sale and leaseback of 35 aircraft and 2 engines in the year (2020: £38 Sale and leaseback gain 65 38 27 million net gain as a result of the sale and leaseback of 33 aircrafts). £61 million credit
Slide 40: Currency impact
Currency impact Revenue Costs FY 2021 FY 2020 FY 2021 FY 2020 Sterling 34% 42% 42% 50% Euro 52% 47% 21% 31% US dollar 0% 1% 32% 13% Other (principally Swiss franc) 14% 10% 5% 6% Average effective Euro rate for revenue for FY 2021 was €1.14 (FY 2020: €1.13) Average effective Euro rate for costs for F
Slide 41: Return on capital employed
Return on capital employed Reported £m FY 2021 FY 2020 Headline loss before interest and tax – reported (1,036) (777) UK corporation tax rate 19% 19% Normalised headline operating loss after tax (NOPAT) (839) (629) Average shareholders’ equity – reported 2,269 2,442 Average net cash – reported 1,018
Slide 42: Q4 Passenger Statistics
Q4 Passenger Statistics July 2021 2020 Change Passengers 3,690,491 2,183,279 69.0% Load Factor 74.0% 83.9% (9.9)ppts August 2021 2020 Change Passengers 5,126,083 4,312,805 18.9% Load Factor 78.8% 76.1% +2.7ppts September 2021 2020 Change Passengers 4,537,760 2,872,785 58.0% Load Factor 78.5% 71.6% +