Easyjet Plc · LSE:EZJ
Easyjet — FY2024 Earnings Presentation
34 slides from Easyjet's earnings presentation, Nov 27, 2024
Slide 1: 27 November 2024
27 November 2024 1
Slide 2: Significant progress towards medium term targets – Key messages
Significant progress towards medium term targets Key messages Group PBT per seat of £7-10 Holidays PBT to >£250m Record H2 profit of £960m £6.08 +24% £190m +56% YoY YoY Proposed dividend increase to 20% of PAT Improved CSAT by 3ppts to 76% High teen ROCE Capacity growth c.5% CAGR +3ppt +8% #1 place
Slide 3: Kenton Jarvis – CFO
easyJet Kenton Jarvis —- CFO
Slide 4: Targeted growth: +8% YoY; significant improvement in headline PBT per seat
FY24 FY23 Change1 Capacity (m) 100.4 92.6 8% Passengers (m) 89.7 82.8 8% Load factor (%) 89% 89% 0ppts Available seat kilometres (m) 122,885 113,334 8% > Targeted growth: +8% YoY Average sector length (km) 1,223 1,224 0% Airline revenue per seat: (£) 81.35 79.84 2% > Significant improvement in Airli
Slide 5: Enhanced revenue generation across easyJet's network
Enhanced revenue generation across easyJet’s network FY24 FY23 % Var Reported RPS 2% Ticket Yield £63.73 £63.09 1% RPS @ CC 2% Ancillary Yield £27.38 £26.27 4% Total Yield £91.11 £89.36 2% > Primary network delivers total yield +2% YoY: ▪ Capacity growth of +8% ▪ Strength of network ▪ Ancillary yiel
Slide 6: Further strengthening easyJet's relative cost position throughout the network
Further strengthening easyJet’s relative cost position throughout the network FY24 vs FY23 Available seat kilometres (m) 122,885 8% Headline CPS ex. fuel @ CC = (1)% Headline CASK ex. Fuel @ CC = (1)% Average sector length (km) 1,223 0% 1) FY 2023 headline CPS (£76.25) + FX (£0.28) = FY headline cos
Slide 7: Strong cash generation alongside purchase of aircraft and dividend reinstatement
Strong cash generation alongside purchase of 16 aircraft and dividend reinstatement Net cash inflow from financing activities Cash generated from operations (excl. FX) £398m £308m 1,359 53 91 (1,195) (34) 3,461 718 (136) 114 2,925 (434) Cash1 Proceeds from Repayment of Eurobond Movement in Operating
Slide 8: Further strengthened our investment grade balance sheet
Further strengthened our investment grade balance sheet £m 30 Sep-24 30 Sep-23 Goodwill and other intangible assets 793 641 BBB/Baa2 With a positive and stable Property, plant and equipment outlook respectively 5,475 4,864 (including RoU) Derivative financial instruments (290) 153 Baa1 BBB+ BBB+ Sou
Slide 9: Investment to drive >£3 cost per seat efficiency from upgauging
Investment to drive >£3 cost per seat efficiency from upgauging Fleet flexibility Current agreed Airbus order book 395 > 299 firm orders (131 A320s and 168 A321s) due by FY34 368 381 > 100 Purchase rights 356 367 353 347 > All FY25 & FY26 deliveries planned to be purchased through 344 free cash flow
Slide 10: Kenton Jarvis
Kenton Jarvis 14 1
Slide 11: Platform to create value for our shareholders
Building Europe’s best network Transforming revenue Making Ambition low-cost Delivering to deliver travel easy ease and reliability >£1bn PBT Driving our low-cost model Platform to create value for our shareholders FY22 Results 1111
Slide 12: Best place to work & Focus on Crew Engagement
& Focus on Crew Engagement Best place to work1 Glassdoor 4.2 Health and Wellbeing All employees now shareholders2 £8 million invested in the year Driving our inclusive culture Low attrition3 Sharing in our success 6.4% Driving a positive customer experience 1) easyJet airline named by Glassdoor as a
Slide 13: Medium term targets: Group PBT per seat, Holidays PBT, ROCE
Group PBT per seat of Holidays PBT to Disciplined capacity High teen ROCE £7-£10 >£250m growth c.5% CAGR Progress: • Reducing winter losses £7-£10 target • £40m YoY improvement in airline result • Despite c.£40m direct impact from ME conflict £6.08 FY24 • Upgauging Group PBT • 16 A320neo family airc
Slide 14: Focus on capital allocation driving stronger returns
Focus on capital allocation driving stronger returns FY23 Maximising returns from our existing aircraft FY24 > Reallocation of aircraft into the highest returning bases/routes > Revenue growth on existing assets • Holidays attachment rate growth • Revenue management enhancements Returns • Continued
Slide 15: Focus on returns; reducing winter losses
Focus on returns Size of easyJet bases by # based aircraft > Targeted growth • Birmingham & Alicante – new bases delivered strong summer returns • Southend to open for S’25, sold load factors ahead of network average • Proposed short-haul remedy taker at Linate & Rome Fiumicino, +8 aircraft for S’25
Slide 16: easyJet holidays and improved merchandising
: Unique business model Improved merchandising > Modernised eCommerce technology including complete App re- > £190 million PBT in FY’24, Progressing towards medium- platforming enables: term target > Brilliant customer experience • New bundles to be launched in FY25 • Customer satisfaction: 84% • De
Slide 17: Strong customer satisfaction levels and OTP
Strong Customer satisfaction levels and OTP > CSAT score + 3ppts YoY, improvements at all touch points Optimising data, AI and personalisation > OTP improved +3ppts, despite worsening ATC environment Increased use of live chat driving improved CSAT +5ppts > 75% of disrupted customers self-managed Se
Slide 18: FY24 CASK ex fuel controlled; leading ESG ratings
FY24 CASK ex fuel controlled; broadly flat YoY easyJet FY24 CASK (ex fuel) (pence) > Improved productivity and utilisation – further progress expected in H1’25 > Benefits of upgauging coming through – c. £25m in FY24 Leading ESG ratings - driving efficiencies > Reduction in CO2 emissions intensity i
Slide 19: Outlook, value creation and medium term targets
Outlook Value creation Medium term targets > Continue to execute on our > FY25 Seat capacity: +3% YoY strategy Group PBT per seat of £7-£10 ▪ Average sector length expected to grow c. 5%, total ASKs +8% > Disciplined capital allocation framework High teen ROCE > Expect to reduce winter losses > Targ
Slide 20: Q&A
Slide 21: 21
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Slide 22: Balanced network; focused position in constrained airports
Focused position in constrained airports Balanced network > 8% growth in FY24 across all route types Capacity % FY24 FY23 FY19 Fully Slot Constrained (L3 41% 42% 37% Constrained)1 FY24 FY23 FY19 Slot Constrained at peak 44% 39% 30% times (L2 Constrained) 21% 22% 22% Not Slot Constrained (L1 15% 19%
Slide 23: Holidays attachment rate – significant growth opportunity
Attachment rate – significant growth opportunity Booking.com Attachment > Material growth Holidays Total commission headroom across 6%1 both beach and Customers (m) 2.3 0.3 2.6 city flows Revenue (£m) 1,515 6 1,521 Est. 2019 Costs (£’m) (1,330) - (1,330) > Jet2 constrained by PBT (£’m) 184 6 190 c.7
Slide 24: Investing in our fleet
Investing in our fleet > Material cost benefits to be realised from FY26 onwards in line with aircraft delivery profile A319 A320neo A319 A321neo Increased seats Reduced fuel burn Greater Increased seats Reduced fuel burn Greater CPS productivity CPS productivity +19% +24% +16% +51% +30% +28% A&GH,
Slide 25: Airline cost per seat vs FY23 at constant currency
Airline cost vs FY23 at constant FY24 Drivers H1’25 CASK Direction per seat currency1 £ £ % • Inflation at regulated airports with RPI/CPI linked contracts & an • Inflation at regulated airports with RPI/CPI linked contracts Airports and ground handling (19.80) (0.54) (3%) increase in labour costs p
Slide 26: Capital discipline, capital structure and shareholder returns
Objective Metrics FY24 Progress > High asset efficiency > Aircraft utilisation >10 hours a day > Asset utilisation +4% YoY Capital discipline > Maintain fleet flexibility > Capacity growth c.5% CAGR > 8% capacity growth from 3% fleet growth to 347 aircraft > Maintain robust Balance Sheet > Strong in
Slide 27: Improved or maintained all ESG ratings; tracking ahead of plan on net zero
Improved or maintained all ESG Ratings Best in #1 airline #1 airline class in Europe in Europe Included in A- AA 21.5 As of Jan 24 As of Sep 23 As of Oct 24 Tracking ahead of plan on net zero pathway SBTi aligned net zero roadmap based on 2ºC pathway SAF supply secured to 2027 > SBTi-validated inter
Slide 28: Group income statement
FY24 FY23 Change1 £m £m Passenger revenue 5,715 5,221 9% Ancillary revenue 2,457 2,174 13% Holidays revenue2 1,137 776 47% Group revenue 9,309 8,171 14% > Enhanced revenue Headline costs: generation across the Airline EBITDA costs ex fuel (4,754) (4,347) (9%) business Fuel (2,223) (2,033) (9%) Holid
Slide 29: Income statement by Airline, Holidays and Group
Intra-group £m Airline Holidays Group transactions Passenger revenue 5,715 - - 5,715 Ancillary revenue 2,457 1,521 (384) 3,594 Total revenue 8,172 1,521 (384) 9,309 Fuel (2,223) - - (2,223) Airports and ground handling (1,989) - - (1,989) Crew (1,074) - - (1,074) Navigation (463) - - (463) Maintenan
Slide 30: Debt
Debt “£m” > Diverse sources of funding through aircraft leases, UKEF eurobonds, RCF and UKEF $1,750m (£1,387m) > FY24 bond repaid in £1,600 October 2023 Bond Bond £1,400 €500m €1,200m > FY25 bond maturity (£443m) (£1,037m) RCF $400m prefunded through €850m £1,200 (£317m) bond issued in March 24, £1,
Slide 31: Fleet
FY24 FY23 Change A319 (leased) 64 66 (2) A319 (owned) 18 29 (11) A319 Total 82 95 (13) % of fleet 23% 28% (5)ppts A320 (leased) 77 69 8 A320 (owned) 103 103 - A320 Total 180 172 8 % of fleet 52% 51% 1ppts A320neo (leased) 7 7 - A320 neo (owned) 62 47 15 A320 neo Total 69 54 15 % of fleet 20% 16% 4pp
Slide 32: Fuel and currency impact
Fuel impact FY24 FY23 Change1 Fuel market price ($ per metric tonne) 864 897 33 Effective price 842 867 25 US dollar rate Market price 1.27 1.23 0.04 Effective price 1.24 1.24 - Actual cost of fuel £ per metric tonne 677 697 20 FY24 currency impact on headline PBT EUR CHF USD Other Total (£m)2 Reven
Slide 33: Fuel, USD and carbon hedging
Jet Fuel H1’25 H2’25 H1’26 Hedged position 80% 59% 24% Average hedged rate ($/MT) 808 771 761 Current spot ($/MT) at 25.11.24 c.740 USD H1’25 H2’25 H1’26 Hedged position 75% 53% 26% Average hedged rate (USD/GBP) 1.26 1.28 1.29 Current rate (USD/GBP) at 25.11.24 1.26 Lease payments and Capex > US dol
Slide 34: Definitions of alternative performance measures
> Headline return on capital employed (ROCE) - Headline profit/loss before interest, exchange gain/(loss) and tax, applying tax at the prevailing UK corporation tax rate at the end of the financial year, and dividing by the average > Airline cost per ASK (CASK) – Total Airline costs divided by avail