Easyjet Plc · LSE:EZJ
Easyjet — Q1 FY2013 Earnings Presentation
13 slides from Easyjet's earnings presentation, Jan 24, 2013
Slide 1: Q1 FY'13 IMS Analyst & Investor presentation
Q1 FY’13 IMS Analyst & Investor presentation 3 months to 31 December 2012 24th January 2013 1 1
Slide 2: Progress against strategic objectives
Progress against strategic objectives 1. Drive demand, conversion and yields across Europe • Passenger numbers up by 6.2% • Load factors increased by 1 percentage point • Revenue per seat up by 8% (1) • Operational roll-out of allocated seating successfully completed 2. Maintain cost advantage • Cos
Slide 3: Robust revenue performance
1. Drive Robust revenue performance demand Q1 ‘13 Q1 ‘12 Change Passengers (m) 13.7 12.9 6.2% Load factor (%) 88.6% 87.6% 1.0ppt Seats (m) 15.5 14.7 5.0% Sector length (km) 1,057 1,083 (2.4%) Total revenue (£m) 833 763 9.2% Total revenue per seat (£) 53.87 51.83 3.9% @ constant currency (£) 55.96 51
Slide 4: Strong growth in seat revenue
1. Drive Strong growth in seat revenue demand Q1 ’12/13 Q1 ’11/12 Change @ cc Seat revenue (£m) 821 749 9.6% 13.8% per seat (£) 53.07 50.87 4.3% 8.4% Non-seat revenue (£m) 12 14 (13.0%) (9.7)% per seat (£) 0.80 0.96 (17.2%) (14.0)% Seat revenue • Further competitor capacity • Improvements to easyJet
Slide 5: Capacity discipline in market
1. Drive Capacity discipline in market demand OAG capacity change FY13 H1 easyJet change YOY Chg 11% Competitors on easyJet markets H1 capacity Chg since 9% Total on easyJet markets Winter Nov’12 6% 5% 5% Competitors on 3% 4% 4% -2.5% -0.7% easyJet routes easyJet +3.6% No chg 0% -1% -2% -1% Market o
Slide 6: Maintain cost advantage
2. Cost Maintain cost advantage Advantage Q1 FY’13 Reported Constant currency 0.5% 2.9% Cost per seat excluding fuel increase increase Q1 performance • Cost increase driven by £16m increase in airport charges – especially at regulated airports in Spain and Italy • Lower than anticipated disruption c
Slide 7: Build strong number 1&2 network positions
3. Network Build strong number 1&2 network positions positions Pan-European network Network from Nice • New network points include Luxembourg, Moscow and Turin. • New bases in Nice & Toulouse have attained number 2 market positions with > 20% market share. • Additional aircraft in Manchester, Edinbu
Slide 8: Disciplined use of capital
4. Capital Disciplined use of capital Discipline Key principles • Strong balance sheet is a source of competitive advantage • Access to funding at lower cost • Withstand potential exogenous shocks • easyJet committed to covering cost of capital • easyJet will self fund fleet replacement, growth and
Slide 9: Next Generation evaluation progressing well
4. Capital Next Generation evaluation progressing well Discipline Technical evaluation completed • Clear cost advantage from moving to next generation and continuing to replace 156 seat aircraft with 180 seater aircraft Commercial evaluation progressing well • Engaging with Boeing, EADS and Bombardi
Slide 10: Hedging update
Hedging update Fuel US dollar Euro requirement requirement surplus Half year ending 31 March 2013 86% at $986/tonne 86% at $1.61/£ 80% at €1.18/£ Full year ending 30 September 2013 78% at $985/tonne 82% at $1.60/£ 75% at €1.18/£ Full year ending 30 September 2014 55% at $993/tonne 62% at $1.58/£ 56%
Slide 11: Forward bookings
Forward bookings H1 bookings ahead of prior year % Seats sold * 89% 88% Wi nte r 11 /12 Wi nte r 12/1 3 70% 72% Q1 Jan Feb Mar H1 H1 (Oct ‘12 to Mar ‘13) 11 * As at 21-01-13
Slide 12: Outlook
Outlook Capacity (seats flown) • FY c.+3.5% (before disruption) • H1 c.+3.5% (before disruption) Revenue per seat (constant currency) • H1 up 6-8% (assuming normal disruption levels) Cost per seat ex fuel (constant currency) • FY c.+3 to 4% (assuming normal disruption levels) • H1 c.+3.5 to 4.5% (as
Slide 13: Disclaimer
Disclaimer This communication is directed only at (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001; or (ii) high