Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — Q1 2023 Earnings Presentation
20 slides from Wizz Air's earnings presentation, Jul 27, 2022
Slide 1: Wizz Air Holdings Plc Q1 F23 Results
WIZZ AIR HOLDINGS PLC Q1 F23 RESULTS 27 July 2022
Slide 2: Q1 F23 Highlights
Q1 F23 | HIGHLIGHTS +30% ASKs vs F20 against challenging macro backdrop Unit revenue building month on month, Q1 impacted by April/May Q1 ticket revenue -12%, strong ancillary revenue per pax +14% vs F20 Fuel unit cost 94% up vs Q1 F20; ‘insurance’ hedges for F23, systematic fuel hedging as of F24 E
Slide 3: Q1 F23 Key Business Metrics
Q1 F23 | KEY BUSINESS METRICS Versus Q1 F22 Passengers 12.2m (+312%) Aircraft* 157 (+16) Airports 193 (+26) Bases** 40 (-4) Countries 50 (+2) 2022 Most World Sustainable Low- Finance Cost Airline 2021 Airline of the Aviation 100 Year Europe’s youngest CH-Aviation fleet (+100 aircraft) *end June 2022
Slide 4: Q1 F23 Market Share
Q1 F23 | MARKET SHARE 70% Q1 F23 Q1 F20 65% 64% 60% 54% 50% 47% 40% 40% 36% 32% 32% 33% 31% 30% 23% 23% 20% 22% 22% 21% 21% 20% 18% 20% 14% 14% 12% 12% 9% 9% 10% 6% 5% 6% 5% 5% 3% 3% 0% Albania Austria BIH Bulgaria Cyprus UK Georgia Hungary Italy Lithuania Moldova N. Poland Romania Serbia CEE Macedo
Slide 5: Q1 F23 Financial Performance
Q1 F23 | FINANCIAL PERFORMANCE Q1 F23 Q1 F22 Change Revenue (€m) 808.8 199.0 306.4% EBITDA (€m) (154.4) (17.8) (766.6%) Operating cost (€m) 1,093.3 307.7 255.4% Operating (loss) (€m) (284.5) (108.6) 162.0% Reported (loss) (€m) (452.5) (114.4) 295.5% Net foreign exchange (loss)/ gain (€m)* (139.9) 14
Slide 6: Q1 F23 CASK Focus
Q1 F23 | CASK FOCUS CASK (€ cent) Cost (€m) Q1 F23 Q1 F22 Q1 F20 Q1 F23 Q1 F22 Change Fuel 2.18 0.86 1.12 508.0 63.5 700.6% Staff costs 0.37 0.47 0.32 86.3 34.5 150.0% Distribution & marketing 0.09 0.10 0.07 20.0 7.3 174.2% Maintenance, materials & repairs 0.23 0.56 0.24 53.8 41.6 29.2% Airport, han
Slide 7: Q1 F23 Cash Increase
Q1 F23 | CASH INCREASE € million 1,583 1,379 153 162 Improved liquidity driven by strong working capital Investment grade balance sheet 1,430 1,217 Continued discipline on costs, operations and network geared towards profit and cash contribution 31 Mar 22 30 June 22 Free Cash Restricted Cash Cash re
Slide 8: Q1 F23 Cash Increase
Q1 F23 | CASH INCREASE In € million Cash refers to total cash and comprises cash and cash equivalents, short-term cash deposits, and current and non-current restricted cash PAGE 8
Slide 9: Q1 F23 Revenue Performance
Q1 F23 | REVENUE PERFORMANCE Ticket Ancillary 37.6 34.2 ✓ Tickets per pax +9% vs Q1 F22 (-12% vs Q1 F20) 30.1 ✓ Ancillary per pax -9% vs Q1 F22 (+14% vs Q1 F20) ✓ Sequential improvement month on month ✓ Ancillary 52% of total revenue (45% in Q1 F20) ✓ Increased demand for flexibility products ✓ Dyna
Slide 10: Trading Performance
TRADING PERFORMANCE 1. Operational Performance 2. Flight disruptions normalizing 3. Focus on maximising revenue 4. Fleet and network growth 5. Sustainability leadership PAGE 10
Slide 11: Operational Performance
OPERATIONAL PERFORMANCE vs Q1 F22 67,243 Q1 F23 Record Flights Operated Flights +191% (whilst dealing with industry-wide disruptions) ✓ Adjusted flight volumes People 6,350 ✓ Redesigned flight duties End July ‘22 ✓ Additional spare aircraft ✓ Added resources to planning and logistics Utilization 11.
Slide 12: Flight Disruptions Normalizing
FLIGHT DISRUPTIONS NORMALIZING % of operational cancellations Europewide Wizz Air Group Daily Operational Cancellations ATC delays 12.0% AOG IT ATC strike Europewide ATC delays LTN heat impact 10.0% MXP ATC strike 8.0% MRS ATC strike 6.0% 4.0% 2.0% 0.0% PAGE 12
Slide 13: Maximising Revenue
MAXIMISING REVENUE Revenue booked Load Factor 200% 97% Weekly Booked Revenue (as % of 2019 sales) 180% 92% 160% 87% Q1 F23 140% 82% 120% 77% 100% 72% 80% 67% 60% 40% ✓ Maximise pricing to recover high input cost 62% ✓ Booking curve rebuilding 57% 20% ✓ Load factor at 85% (-9 ppts vs Q1 F20), but bui
Slide 14: Fleet Renewal Driving Growth + Efficiencies
FLEET RENEWAL DRIVING GROWTH + EFFICIENCIES ✓ 157 aircraft; eight x A321NEO delivered; four x older A320CEOs exit fleet ✓ 4.9-year average fleet age, 214 fleet average seat count at Q1 F23 (vs 199 Q1 F20) ✓ Young and fuel-efficient fleet partially offsets rising fuel prices ✓ Strong financing offers
Slide 15: Leveraging Strength of Network
LEVERAGING STRENGTH OF NETWORK STRENGTHENING MARKET LEADERSHIP IN CEE REGION 1 2 Increasing Frequencies Join Existing Airports 73% 24% 3 4 New Airports New Destination (same country) Countries 1% Versus F22 2% ✓ Focus on existing bases/airports #1 in CEE ✓ Lowest cost base operates the route ✓ Resto
Slide 16: Leading Where It Counts
LEADING WHERE IT COUNTS WIZZ AIR’S ENVIRONMENTAL FOCUS • “Most Sustainable Low-Cost Airline in 2022” by World Finance magazine • SAF powered flight: Bucharest to Lyon (part of “Connecting Europe Days 2022” – sustainable mobility conference) • Sustainable Procurement Policy implemented • Female gende
Slide 17: Outlook Q2 F23
OUTLOOK Q2 F23 ASK growth to +30% vs F20 for Q2, +40%* vs F20 for H2 Maintain crew productivity, high fleet utilisation around 12 hours/day RASK improvement +10% for Q2 vs F20 Load factors +90% from July; consumer demand strong over summer Driving ex-fuel CASK back towards historical market-leading
Slide 18: In Closing
IN CLOSING Wizz Air – strengthening leadership in CEE, exposure to strong growth Operational disruptions normalizing Unit revenue building month on month Ex-fuel unit cost at target once full utilization in place Fuel CASK a level playing field as of F24 Strong liquidity at €1.6bn Fleet unlocks lowe
Slide 19: 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
Slide 20: Appendix: Hedge Program
APPENDIX: HEDGE PROGRAM EU/UK ETS Jet Fuel * 258% 100% 267% 46% HEDGE 20% COVERAGE F23 F24 F23 9 months 12 months 9 months Capped rate $1,319 $1,081 Floor rate $1,105 $940 *inclusive of free allowances PAGE 20