Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — Q1 FY2016 Earnings Presentation
19 slides from Wizz Air's earnings presentation, Jun 30, 2015
Slide 1: Quarterly Interim Management Statement
Quarterly Interim Management Statement Three Months to June 30, 2015
Slide 2: Business Highlights for Q1
BUSINESS HIGHLIGHTS FOR Q1 • Record Q1 profitability despite negative Easter effect • Lower unit costs further increasing our cost advantage • 20% passenger growth in Q1 to 4.9m passengers • Fresh new brand and allocated seating • 110 Airbus A321 NEO order securing growth for next decade • Full year
Slide 3: Market Leading Position
MARKET LEADING POSITION LCC Market Number 1 Number 2 Number 3 CEE Ryanair Norwegian 39% 32% 6% Poland Ryanair Norwegian Romania Blue Air Ryanair Hungary Ryanair Norwegian Czech Republic Easyjet Ryanair Lithuania Ryanair Wizz Air Norwegian Bulgaria Wizz Air Easyjet Norwegian Latvia Ryanair Wizz Air N
Slide 4: Summer Capacity 2015 vs 2014
SUMMER CAPACITY 2015 VS 2014 Base Country Sep’ Sep’ 16 New Destinations (# of Aircraft) 15 14 Poland 19 15 Romania 14 14 UK +4 Hungary 8 7 Latvia Bulgaria 6 4 Netherlands +2 Lithuania 4 3 Macedonia 3 2 Romania +2 Lithuania Latvia 2 1 Ukraine 1 2 Germany +1 Serbia 1 1 Czech Republic 1 1 Norway +1 Pol
Slide 5: CEE – A Unique Opportunity for Growth
CEE – A UNIQUE OPPORTUNITY FOR GROWTH Large Addressable Market Weak Legacy Deregulation GDP Growth Carriers Growing Growing LCC Market Propensity to Air Share Travel 5
Slide 6: A321 NEO Order
A321 NEO ORDER • 110 A321 NEO’s deliveries from 2019 • Option to buy up to 90 additional A321 NEO’s • Cancellation of 10 A320 CEO’s due in 2018 • Right to substitute certain A321 NEO’s for A320 NEO’s Cost Reduction Drivers • 50 aircraft scheduled to leave fleet between • Higher seat configuration (1
Slide 7: Q1 Financial Highlights
Q1 FINANCIAL HIGHLIGHTS For the three months ended 30 June 2015 2014 Change Revenue (€ m) 332.5 295.2 +12.7% Net profit for the quarter (€ m), (IFRS) 32.9 29.2 +12.5% Underlying net profit after tax* (€ m) 33.9 29.6 +14.7% CASK (€ cents) 3.54 3.66 -3.3% RASK (€ cents) 3.95 4.12 -4.0% Ancillary reven
Slide 8: Record Q1 Profitability
RECORD Q1 PROFITABILITY ASKs (bn) RPKs (bn) Load Factor RASK (€ cent) +17% +20% +1.3 ppt - 4.0% Revenues (€m) CASK (€ cent) EBITDAR (€m) & Margin Net Income (€m) & Margin* +12.7% - 3.3% +2.4% +14.7% 332 3.66 3.54 33.9 295 75.0 76.7 29.6 25.4% 23.1% 10.2% 10.0% Source: Company information. * Underlyi
Slide 9: Further Ancillary Revenue Growth
FURTHER ANCILLARY REVENUE GROWTH Revenue Development Innovative revenue generation: €m • Q1 passenger volumes +20% • Load Factor of 88.8% (+1.3 ppts) • Ticket revenue per pax €42.2 (-11.3%) • Ancillary revenue per pax €26.0 (+3.0%) • Total revenue per pax €68.2 (-6.3%) • Average stage length -0.9% S
Slide 10: Increasing Our Cost Advantage
INCREASING OUR COST ADVANTAGE CASK* and CASK* ex-fuel Development CASK reduction driven by: € cent • Total CASK -3.3% • Fuel CASK -5.6% • CASK ex-fuel -1.8% • Fuel initiatives • Better engine performance • Active airport mix management Source: Company Information. * Excluding exceptional items 10
Slide 11: Further CASK Reductions
FURTHER CASK REDUCTIONS € cent € cent € cent Absolute For the three months ended 30 June 2015 2014 change Fuel costs 1.34 1.42 (0.08) Staff costs 0.27 0.26 0.02 Distribution and marketing 0.07 0.08 (0.01) Airport, handling and en-route charges 1.00 1.01 (0.01) Aircraft rentals 0.43 0.46 (0.03) Maint
Slide 12: Liquidity and Leverage
LIQUIDITY AND LEVERAGE Cash as % of LTM Revenue Leverage* Cash and Cash Equivalents (€m) 45% 36% 18% 12% 18% 14% 11% 17% 16% 13% Source: Company information. *Leverage is defined as net debt adjusted to include capitalised operating lease obligations divided by earnings before interest tax depreciat
Slide 13: Outlook: FY16 Guidance Raised
OUTLOOK: FY16 GUIDANCE RAISED Current Previous Other Guidance Guidance Comments Capacity growth (ASKs) 17 % 17 % H1: 17%, H2: 17% Average stage length Unchanged Unchanged - Load Factor Modest improvement Modest improvement - Fuel CASK -3.0% -1.5% Assumes spot price of $600/MT Ex-fuel CASK +1.0% +1.0
Slide 14: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION
Slide 15: Balance Sheet
BALANCE SHEET € million 30 June 31 March 30 June 2014 2015 2015 Property, plant and equipment 215.1 247.1 249.0 Restricted cash1 47.5 73.6 79.8 Derivative financial instruments1 1.1 60.7 49.6 Trade and other receivables1 144.7 167.9 174.4 Cash and cash equivalents 280.1 448.6 570.8 Other assets1 18.
Slide 16: Underlying Financial Performance
UNDERLYING FINANCIAL PERFORMANCE F15 Change vrs Q1 F15 Q2 F15 Q3 F15 Q4 F15 Total Q1 F16 Q1 F15 Passenger ticket revenue 192,951 294,976 166,494 139,373 793,794 205,897 6.7% Ancillary revenue 102,201 137,171 98,106 96,011 433,490 126,596 23.9% 12.7% Total revenue 295,153 432,148 264,600 235,384 1,22
Slide 17: Selected Quarterly KPI's
SELECTED QUARTERLY KPI’S Full Year Change vrs Q1 F15 Q2 F15 Q3 F15 Q4 F15 F15 Q1 F16 Q1 F15 CAPACITY Number of aircraft at end of period 52 54 55 55 55 62 19.2% Equivalent aircraft 49 53 54 54 53 58 18.6% Utilisation 13.2 13.8 11.6 11.7 12.6 13 (1.2%) Total block hours 58,882 67,228 57,323 57,278 24
Slide 18: Hedge Programme
HEDGE PROGRAMME Jet Fuel US Dollar Hedge Coverage 69% 61% 56% 24% Average capped rate $804 $676 $1.26 $1.15 Average floor rate $785 $672 $1.24 $1.10 Zero cost collar instruments Fuel Caps Sensitivities (before hedges): - A $10 (per metric ton) movement price of jet fuel impacts F16 fuel bill by $4.2
Slide 19: 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