Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — Q3 F17 Earnings Presentation
15 slides from Wizz Air's earnings presentation, Feb 1, 2017
Slide 1: Q3 F17 Financial Results
Q3 F17 FINANCIAL RESULTS 1 FEBRUARY 2017
Slide 2: Business Highlights
BUSINESS HIGHLIGHTS • Current market conditions favour ULCCs • Wizz Air aims to increase market share with F17 capacity growth of 20% • Q3 passenger growth of 20%, Load Factor of 88% (+2.3ppt) • Strengthened #1 market leadership position in CEE in Q3 • CASK ex-fuel well under control • Stronger bala
Slide 3: Highly Diversified and Scalable Business
HIGHLY DIVERSIFIED AND SCALABLE BUSINESS Aircraft 74 (65) Q3 Performance Airports Flights 133 (116) 34,000+ Countries 40 (38) Utilisation 12.06 hours Bases 27 (22) Punctuality 77.7% Staff 3,000+ (2,600+) Regularity 99.8% Passengers 5.7 million (4.7mln) Source: Company Information, as of 31 December
Slide 4: Q3 Network Investments for Summer 2017
Q3 NETWORK INVESTMENTS FOR SUMMER 2017 Origins: Destinations: Romania 3 Germany 5 Poland 2 Italy 5 Hungary 2 Spain 3 Bulgaria 1 France 3 Moldova 1 Sweden 2 Ukraine 1 UK 1 Lithuania 1 Norway 1 Croatia 1 Denmark 1 Slovakia 1 Cyprus 1 Netherlands 1 Romania 1 Israel 1 Malta 1 Lithuania 1 Ukraine 1 Kosov
Slide 5: Connecting the West Balkans
CONNECTING THE WEST BALKANS Now 60 routes from Budapest Re-establishing the connection between Hungary and …. Albania Kosovo Montenegro Bosnia Macedonia 4
Slide 6: Solid Q3 Financial Results
SOLID Q3 FINANCIAL RESULTS For the three months ended 31 December Group Results 2016 2015 Change Revenue (€ m) 341.1 310.5 +9.9% EBITDAR (€ m) 89.2 74.5 +19.8% EBITDAR margin (%) 26.1 24.0 +2.2ppt Net profit (€ m), (IFRS) 32.5 15.6 +107.8% Net profit margin (%), (IFRS) 9.5 5.0 +4.5ppt Underlying net
Slide 7: Strong Revenue Growth
STRONG REVENUE GROWTH Revenue Development Revenues increased 9.9% to €341m (€m) • Ticket revenues +2.5% 1,429 • Non-Ticket revenues +21.0% 1,227 534 Load factor increased 2.3ppt to 88.1% 1,012 433 851 766 353 Airline RASK declined 9.4% 274 589 214 3 4 .9% 3 5 .3% 3 7 .4% • ASK growth +20.8% 165 3 2
Slide 8: Increasing Our Cost Advantage
INCREASING OUR COST ADVANTAGE CASK Development (in € cents) 3.88 Total CASK -7.0% 3.74 3.72 3.61 3.51 3.43 3.39 Fuel 3.16 CASK Fuel CASK Reduction 1.58 1.49 1.48 • Lower fuel costs -23.1% 1.36 1.19 1.16 1.10 0.87 - 21.5% Maintaining Ex-Fuel CASK • Stage length +3.3% Ex-Fuel • Stronger US dollar CASK
Slide 9: Continuous Cost Control
CONTINUOUS COST CONTROL Airline CASK for the three months ended 31 December € cent € cent € cent 2016 2015 Change Fuel costs 0.87 1.11 (0.24) Staff costs 0.27 0.31 (0.03) Distribution and marketing 0.06 0.07 (0.00) Maintenance, materials and repairs 0.20 0.21 (0.01) Depreciation and amortisation 0.1
Slide 10: Liquidity and Leverage
LIQUIDITY AND LEVERAGE Free Cash1 as % of LTM Revenue Leverage2 48% 45% 5.2 747 45% 646 4.1 36% 580 3.7 449 2.6 1.6 1.5 18% 1.4 1.4 186 12% 14% 11% 103 83 85 F11 F12 F13 F14 F15 F16 Q3 F16 Q3 F17 F11 F12 F13 F14 F15 F16 Q3 F16 Q3 F17 Unaudited Company information. Note 1: Cash and Cash Equivalents (
Slide 11: Hedge Programme
HEDGE PROGRAMME Jet Fuel 80% US Dollar 80% 60% 60% 40% 40% 75% 56% 20% 42% 46% 20% 0% 0% F17 F18 F17 F18 Hedge Coverage 75% 42% Hedge Coverage 56% 46% Average capped rate $479 $519 Average capped rate $1.12 $1.12 Average floor rate $391 $472 Average floor rate $1.08 $1.10 Zero cost collar instrument
Slide 12: Outlook: 2017 Financial Year
OUTLOOK: 2017 FINANCIAL YEAR 2017 Financial Year Comments Previous Capacity growth (ASKs) + 20% - Between 18% - 20% Average stage length Modest improvement - No change Load Factor + 2% - No change Fuel CASK - 20% Assumes Q4 spot price of $515/MT No change Ex-fuel CASK - 1% Assumes Q4 $/€ rate of 1.0
Slide 13: Closing Comments
CLOSING COMMENTS • Current market conditions favour ULCCs • Wizz Air aims to increase market share with F17 capacity growth of 20% • Strengthened #1 market leadership position in CEE in Q3 • CASK ex-fuel well under control • Continued network expansion to deliver future profitability • Full year und
Slide 14: The World of Opportunity
THE WORLD 3 OF OPPORTUNITY ~ S > BEGINS WITH A SMILE ¥: ye a wizzair.com
Slide 15: Disclaimer
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 intended