Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — Q3 F22 Earnings Presentation
21 slides from Wizz Air's earnings presentation, Jan 26, 2022
Slide 1: Wizz Air Holdings Plc Q3 F22 Results
WIZZ AIR HOLDINGS PLC Q3 F22 RESULTS 26 JANUARY 2022 F22 is the financialyear ending 31 March 2022
Slide 2: Q3 F22 Highlights
Q3 F22 | HIGHLIGHTS Recovery continued into Q3 F22, with peak weeks exceeding ‘19 capacity Operating loss of -€214m as expected, together with COVID-19 challenges Continued strong liquidity at €1.4bn end of December. 500m 2026 1.00% EUR bond issued in January 2022 Investment-grade credit rating with
Slide 3: Q3 F22 Key Business Metrics
Q3 F22 | KEY BUSINESS METRICS versus Q3 F21 Passengers 7.8m (+132%) Aircraft* 150 (+13) Airports 196 (+26) Bases 42 (+3) Countries 51 (+3) 2021 Most Sustainable Company 2021 Best ESG Risk Sustainalytics Score for airlines in Europe 2021 Airline of the Year *end Dec 2021 PAGE 3
Slide 4: Ramping Up, With Agility
RAMPING UP, WITH AGILITY Weekly ASK as % of 2019 ASK (same week); Booked Load Factor 120% 100% 80% 60% 40% 20% Omicron 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 44 45 46 47 48 49 50 51 52 1 2 3 Calendar Week Load factor Series1 Capacity vs ‘19 Se
Slide 5: Q3 F22 Strength Across Markets
Q3 F22 | STRENGTH ACROSS MARKETS Q3 F22 market share versus Q3 F20 70% 67% 64% 60% 50% 45% 40% 37%38% 36% 33% 32% 30% 30% 30% 30% 27% 25% 22% 22% 21% 20% 20% 20% 16% 16% 15% 12% 13% 10% 8% 9% 8% 7% 6% 6% 6% 4% 5% 5% 3% 0% Albania Austria B&H Bulgaria Cyprus UK Hungary Italy Latvia Lithuania Moldova
Slide 6: Q3 F22 Improving Customer Experience
Q3 F22 | IMPROVING CUSTOMER EXPERIENCE #1 and increasing in “Lowest price” and “Good value for money” EU digital COVID Certificate validation relative brand perception in core CEE countries Q3 vs H1 FY22 50% 31% 40% 30% 20% 10% of customers checking-in on Wizz Air app validated their vaccination cer
Slide 7: Q3 F22 Financial Performance
Q3 F22 | FINANCIAL PERFORMANCE Q3 F22 Q3 F21 Change Revenue (€m) 408.4 149.9 172.4% Operating cost (€m) 621.9 291.7 113.2% Operating (loss) (€m) (213.6) (141.9) 50.5%. Net (loss) (€m) (267.5) (116.4) 129.8% Net foreign exchange (loss) (€m)* (31.1) 44.6 n.m. Total Cash (€m)** 1,400.3 1,202.0 16.5% *
Slide 8: Q3 F22 CASK Focus
Q3 F22 | CASK FOCUS CASK (€ cent) Q3 Cost (€m) Q3 F22 Q3 F21 Q3 F20 Q3 F22 Q3 F21 Change Fuel 1.24 1.01 1.21 204.3 56.2 263.3% Staff costs 0.38 0.60 0.33 61.8 33.3 85.7% Distribution & marketing 0.07 0.09 0.06 11.7 4.9 137.2% Maintenance, materials & repairs 0.36 0.76 0.27 59.6 42.1 41.6% Airport, h
Slide 9: Q3 F22 Liquidity Focus
Q3 F22 | LIQUIDITY FOCUS € million 1,663 1,670 163 159 1,400 165 Marginal cash contribution from operation Investment grade balance sheet maintained (Fitch and 1,500 1,512 1,236 Moody’s). Fitch outlook from negative to stable. Excludes 500m EUR 2026 1.00% bond 30 Jun 21 30 Sept 21 31 Dec 21 Free Cas
Slide 10: Q3 F22 Liquidity Focus
Q3 F22 | LIQUIDITY FOCUS In K€ Cash refers to total cash and comprises cash and cash equivalents, short-term cash deposits, and current and non-current restricted cash Operation includes cash outflows related to lease payments, but excludes working capital (unflown revenue, accounts payable/receivab
Slide 11: Q3 F22 Ancillary Performance
Q3 F22 | ANCILLARY PERFORMANCE Ticket Ancillary 36.0 31.5 30.1 ✓ Ancillary 60% of total revenue ✓ Growth at 0.7 EUR/PAX/year, shy of 1 EUR target as we attracted new price-sensitive pax into the franchise ✓ Confident this will normalize to our long- term target post-Covid behind product conversion a
Slide 12: Executing Against F23 Ramp-Up
EXECUTING AGAINST F23 RAMP-UP 1. Operating the best fleet 2. Ramping up a stronger, cost-efficient network 3. Crewing surpassed 5,550 colleagues, on track for full utilisation for Spring/Summer ‘22 4. We continue to widen our sustainability leadership position PAGE 12
Slide 13: Operating the Best Fleet
OPERATING THE BEST FLEET ✓ 5.0-year average fleet age, highest seat count, 47% fleet renewal rate in F23 (87% by F26) ✓ Includes new Airbus A321neo family aircraft order ✓ A321XLR, 10% of fleet by F26, adds range and disrupts wide-body cost structure ✓ Cost of ownership continued to improve behind c
Slide 14: Stronger, Cost-Efficient Network
STRONGER, COST-EFFICIENT NETWORK S19 Fleet level Additional Fleet Core CEE Italy UK Ukraine Albania Abu Dhabi Macro Events PAGE 14
Slide 15: Expansion in UK
EXPANSION IN UK ✓ Cases, hospitalisations falling. Deaths in line w/ 2015-2019 averages ✓ Restrictions reduced and mostly lifted as of 11 Feb 2022 ✓ 100% of acquired Gatwick slots used for base and inbound aircraft ✓ April forward booking +5 to +10pts vs network PAGE 15
Slide 16: Expansion in Abu Dhabi
EXPANSION IN ABU DHABI ✓ Strength in load factors, despite up to 2 PCR tests ✓ Expanding from 4 to 8 aircraft as of October 2022 PAGE 16
Slide 17: Ramping Up Employee Base - On Track for Full Fleet Utilisation
80 90 100 140 150 110 120 130 1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 8/1/2020 9/1/2020 10/1/2020 11/1/2020 Actual FTE (Jan-Mar '20 = 100) 12/1/2020 1/1/2021 2/1/2021 3/1/2021 4/1/2021 5/1/2021 PAGE 17 6/1/2021 7/1/2021 8/1/2021 Planned FTE (Jan-Mar '20 = 100) 9/1/2021 10/1/20
Slide 18: Reduce 34% Industry Emissions Today
REDUCE 34% INDUSTRY EMISSIONS TODAY Score (lower = better) Sustainalytics ESG Risk Score Airline Wizz Air IAG AF-KLM Lufthansa Ryanair easyJet Dec 2021 25.0 26.6 27.5 27.5 29.6 34.6 Jun 2021 25.5 26.7 26.9 24.3 29.8 34.6 Transition Pathway Initiative Carbon Emission Intensity CO2 g / RTK (1) Interna
Slide 19: Outlook
OUTLOOK Q4 capacity will continue to be impacted by Omicron, especially in January and February. Q4 operating loss will be slightly deeper vs Q3 operating loss Q1 F23 and Q2 F23 are expected to build to full utilisation by peak summer Crewing is growing in line with our fleet requirements As we retu
Slide 20: In Closing
IN CLOSING Omicron has dented recovery – yet optimistic spring and summer ahead Wizz Air maintains strong liquidity and investment grade balance sheet Wizz Air has a strong basis to win – fleet, network, cost structure Our ramp-up is on track – crossed 5,550 FTE in January Consumers will vote for be
Slide 21: 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