Ryanair Holdings Plc · EURONEXT:RYA
Ryanair — Q1 FY22 Earnings Presentation
21 slides from Ryanair's earnings presentation, Jul 26, 2021
Slide 1: Q1 FY22 Results
Q1 FY22 Results MORE CHOICE. LOWER FARES. GREAT CARE.
Slide 2: Europe's Lowest Cost Airline Group
Europe’s Lowest Cost Air line Group Lowest fare/lowest cost airlines No. 1, Traffic: 90m-100m (149m pre C-19) No. 1, Cust. service / OTP 95% Ind. leading “B-” CDP climate rating Strong (BBB) bal. sheet (S&P & Fitch) Fin. strength + lowest cost = L.T. winner 2 2
Slide 3: Europe's No. 1 Coverage
E u r o p e ’s N o. 1 C ove r a g e 86 bases / 225 airports 37 countries 10 new bases: - S.21: ZAG/ZAD/CFU/CHQ/RHO - W.21: RIX/BLL/ARN/TRN/AGA Over 2,100 routes 200m guests p.a. by FY26 3 3
Slide 4: Europe's Lowest Costs Wins!
Eur ope’s Lowest Costs W ins! € per pax RYA WIZ EZJ NOR E’Wings LUV Staff/efficiency 7 6 10 19 20 55 Airport & Hand. 8 11 22 19 18 9 Route Charges 5 5 5 7 7 0 Own’ship & maint. 7 14 9 28 21 17 S & M other 4 3 7 14 28 20 Total 31 39 53 87 94 101 %> Ryanair +26% +71% +181% +203% +226% (Source: Pre Cov
Slide 5: Q1 FY22 Results
Q1 FY22 Results Jun 20 Jun 21 Guests (m) 0.5 8.1 +7.6m Load Factor 61% 73% +12pts Revenue (m) €125 €371 +196% Op. costs (m) €313 €675 +116% Net Loss (m) €(185) €(273) -47% 5 5
Slide 6: Q1 FY22 Balance Sheet (BBB)
Q1 FY22 Balance Sheet (BBB) €’bn Mar 21 Jun 21 Assets 9.18 9.34 87% B737 fleet debt free (€7.4bn book val.) Cash 3.15 4.06 Strong liquidity Total 12.33 13.40 Accruals 2.25 3.21 Debt: Debt 5.43 5.72 - New €1.2bn 5 yr bond @ low 0.875% coupon (May) - Repaid €850m (2014) bond @ 1.875% coupon (Jun.) - N
Slide 7: Current Developments
Cur r ent Developments Bookings & traffic to recover strongly in Jul/Aug (still v. close-in) Robust recovery of US dom. traffic due to pent up demand EU cost leadership enhanced 3 B737-8200 “Gamechangers” delivered in Jun. Sig. growth ops: Clear path to 200m guests by FY26 ESG update (Cu
Slide 8: Recovery Building
Re c ove r y b u i l d i n g Strong booking recovery since April (close-in) - > 2m+ bookings p/wk in Jun. (500k p/wk in Mar.) Travel restricts. easing - EU Digital Covid Certificate (DCC) - No quarantine for vac. UK arrivals (mid-July) - Vac. rollout over 50% of EU citizens (c. 80% by Sept.) S
Slide 9: Some LCCs Recover Faster Than Others
S o m e LC C s r e c ove r fa s t e r t h a n o t h e r s PAX LF RYR EZJ Wizz RYR EZJ Wizz Apr 1.0m 0.5m 0.6m 67% 52% 59% May 1.8m 0.9m 0.8m 79% 68% 66% June 5.3m 1.6m 1.6m 72% 72% 64% 8.1m 3.0m 3.0m 73% 66% 64% RYR a/c delivs. over next 4 years – 210 x B737s – Tot. Fleet 600 EZJ fleet “target cut”
Slide 10: EU Cost Leadership Enhanced
EU cost leadership enhanced FY20 per pax Cost savings initiatives: (ex fuel) • Pay deals agreed Staff/efficiency €7 • Pay cuts of 5% to 20% (restored over 3/5 years) – built in flexibility • Growth deals as B-8200s delivs. drive vol. discs. (WIP) Airport & Hand. €8 • STN, BGY, CRL low-cost growth de
Slide 11: 1st "Gamechanger" Delivers in Jun.
1 st “ G a m e ch a n g e r ” d e l i ve r s i n Ju n . 3 B-8200 delivered in Jun. 21 60+ delivs. for peak S.22 Gamechangers +4% seats, -16% fuel Envir. savings: -16% fuel / CO2 , -40% noise Initial fuel burn & guest feedback is v. v. positive Lower cost B-8200 drives mkt share gains & c
Slide 12: Path to 200m Guests by FY26
Path to 200m guests by FY26 Airline failures & retrench – signif. EU capacity cuts Airports seek to recover traffic – growth incentives 10 new base deals post Covid in 2021 Lower cost B737-8200 facilitates growth (c.600 fleet by FY26) Pent up demand + lower costs = Mkt share gains Strong
Slide 13: 210 Order Allows Growth to 200m Guests p.a.
210 or der allows growth to 200m guests p.a. M Subject to Covid restricts & vaccine rollouts 200 + 200 195 Guests Total 180 175 160 149 150 140 139 130 120 106 90 – 100 100 80 60 27.5 40 20 FY17 FY18 FY19 FY20 FY21 FY22E FY23E FY24E FY25E FY26E 13 13
Slide 14: Environment Update
Envir onment update Ambitious enviro. targets: - CO2 per pax/km 10% by 2030 (to 60 g’s) - Goal of 12.5% flights on SAF by 2030 - Improve CDP score to “A” in 2 years - Net carbon neutral by 2050 Sustainable Aviation Research Centre launched with TCD 1st B737 “Gamechanger”(-16% CO2 , - 40% noi
Slide 15: "Fit for 55" Proposals (Green Deal)
“Fit for 55” Proposals (Green Deal) RYR supports 2050 net carbon neutral Welcome SAF blend targets (5% by 2030) Badly designed tax proposals: - Double tax for CO2 (ETS plus kero. tax) - Polluter does not pay – L/H excluded (c.55% of EU emissions) - No reinvestment of taxes in sustainable alter
Slide 16: Social & Gov. Update
S o c i a l & G o v. U p d a t e Enhanced engagement with people - Work with nat. unions to save jobs - 2,000 new Pilot jobs in next 5 years - NED for workforce engagement - Suite of comms tools – Fleet tweet, Fleet cast Continuous investment in Training & Development New Sim Training Centre o
Slide 17: FY22 Outlook
FY22 Outlook Sig. uncertainty but bookings recover strongly FY22 Traffic: 90m – 100m range (was lower end of 80m – 120m) (i) Cautiously expect FY22: small loss / close to b-even Low fares to drive strong recovery (load active / yield passive) Strong BBB balance sheet = fleet & market gains
Slide 18: Appendices
Y/ Appendices >» @RYANAIR MORE CHOICE. LOW FARES. GREAT CARE.
Slide 19: App 1: Fuel hedging update
App 1: Fuel hedging update Jet (met. tonne) FY22 FY23 H1 $546 (70%) $595 (35%) H2 $580 (50%) $605 (35%) FY - Hedged $565 (60%) $600 (35%) FY22 FY23 Carbon (EUA) €24 (100%) €24 (35%) 19 19
Slide 20: App 2: Environmental Initiatives
A pp 2: Envir o. Initiative's Thomas Fowler – Director of Sustainability 20 20
Slide 21: Disclaimer
Disclaimer Certain of the information included in this presentation is forward looking and is subject to known and unknown risks and uncertainties that could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. By their nat