Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — FY2017 Earnings Presentation
33 slides from Wizz Air's earnings presentation, 2017
Slide 1: FY17 Results
FY17 RESULTS
Slide 2: Business Highlights
F17| Business Highlights 1 19% passenger growth to 23.8m passengers 2 Network coverage of 42 countries 3 Increasing cost advantage, lower ex-fuel CASK 4 Increasing ancillary revenue, €27.5 per passenger 5 Faster growth to consolidate market leadership in CEE 6 Reported net profit €246m (+27.5%) 7 Un
Slide 3: #1 LCC in CEE - Growth Metrics
F17| #1 LCC in CEE F17 | Growth Metrics Passengers 23.8m +18.9% Aircraft 79 +12 1381 Airports +23 Countries 421 +4 Bases 26 +4 Staff 3,000+ +600 Source: Company information as at 31 March 2017 Note 1: On sale 3
Slide 4: #1 in CEE - Performance Metrics
F17| #1 in CEE F17 | Performance Metrics Flights 142,000 Utilisation 12.5 hours Load factor 90.1% Regularity 99.8% Punctuality 78.1% 4
Slide 5: F17 Financial Review
F17 FINANCIAL REVIEW WIZZ | #1 Airline in CEE 5
Slide 6: Record Profitability On 19% Pax Growth
F17 | Record Profitability On 19% Pax Growth Group Results FY 2017 FY 2016 Change Seat Growth + 16.4 % Revenue €1,571.2 m 1,429.1 +9.9% EBITDAR €538.2 m 440.5 +22.2% Load Factor + 1.9 ppt EBITDAR margin 34.3 % 30.8% +3.5ppt Net profit (IFRS) €246.0 m 192.9 +27.5% Stage Length + 2.8 % Net profit marg
Slide 7: Capacity and Revenue Growth
F17| Capacity and Revenue Growth 1,571 Wizz Air grew faster in FY 2017 Revenue Development (€m) 1,429 Lower fuel costs Higher load factors 1,227 656 534 Larger aircraft 1,012 433 Flying further 851 766 353 RASK1 decline 8.5% in FY 2017 274 214 41.7% 589 37.4% Capacity Easter Effect 165 34.9% 35.3% 3
Slide 8: Driving Fares Lower and Ancillaries Higher
F17| Driving Fares Lower and Ancillaries Higher Revenue per passenger1 in € 72.7 74.5 71.5 68.1 69.0 65.7 59.8 47.3 48.2 44.8 38.3 49.1 46.8 Fares – €6.5 Per pax 43.0 €26.7 €27.5 Non-Bag + €2.1 16.8 19.0 22.2 25.4 26.3 27.5 Revenue Per pax 26.7 15.2 17.3 Bag – €1.3 F11 F12 F13 F14 F15 F16 F17 Revenu
Slide 9: Strong Cost Performance
F17| Strong Cost Performance CASK and ex-fuel CASK development 1 Challenges € cents 3.88 Inflationary pressures 3.74 3.72 3.62 3.51 3.42 Infrastructure costs 3.15 1.58 1.49 1.48 1.36 US dollar strength 1.19 1.15 0.90 Brexit effect on GBP Opportunities 2.32 2.25 2.29 2.25 2.27 2.27 2.25 Game changers
Slide 10: Ultra Low Cost Carrier
F17| Ultra Low Cost Carrier F17 CASK 1 (7.8)% CASK € cent F17 F16 Change € cent Fuel CASK Fuel 0.90 1.15 (0.25) 0.90 cent Staff costs 0.27 0.29 (0.02) Distribution & marketing 0.06 0.07 (0.01) Ex-Fuel CASK Maintenance, materials 2.25 cent 0.18 0.22 (0.04) and repairs Depreciation & 0.14 0.08 0.06 F1
Slide 11: Best In Class Fleet Driving Costs Lower
WIZZ | Best In Class Fleet Driving Costs Lower 11
Slide 12: Strong Cash Generation
WIZZ | Strong Cash Generation € million 311 -180 -3 Making cash resources work harder in FY 2017: 774 646 Purchased more aircraft parts Purchased engines Self-financed aircraft deposits Cash collateral on Letter of credit Opening Cash Flow Financing Investing Closing facility Free Cash from Activiti
Slide 13: Balance Sheet Strength
WIZZ | Balance Sheet Strength FREE CASH +19.9% Strong cash generation €m 800 700 774 600 646 500 Benefiting from robust lease 400 market F16 F17 Leverage Aircraft ownership – driving cost even lower 1.7x F16: 1.4x Low leverage level Audited financial statements. Note 1: Cash and Cash Equivalents (€m
Slide 14: Operating Review
OPERATING REVIEW Wizz | #1 Airline in CEE 14
Slide 15: Leading LCC in CEE
WIZZ | Leading LCC in CEE 1 Attractive 2 Underpenetrated Growth Market GDP growth forecast for CEE countries in 2017 range 162m seats serving CEE v. 1792m seats serving WE CEE between 2.5% and 6.5% Market 3 Growing Propensity 4 Weak Legacy Drivers to Travel Carriers 0.4 flights per person in CEE v.
Slide 16: Targeted Growth to Capture Market Share
WIZZ | Targeted Growth to Capture Market Share Million seats 25.0 CEE Seat Capacity Growth Wizz Air Seat Capacity Growth Wizz Air portion of CEE Growth 70% 63% 22.7 60% 20.0 49% 45% 50% 15.0 39% 36% 40% 13.4 10.0 30% 10.0 16% 20% 5.0 6.6 5.7 4.4 10% 2.9 2.8 3.6 3.7 2.2 0.0 1.3 0% FY13 FY14 FY15 FY16
Slide 17: Network Development
F17| Network Development 1 Increasing Frequencies 66% On +250 routes 2 Joining Existing Airports 25% 89 new airport pairs 3 New Airports 8% 26 new destinations 4 New Countries 1% Montenegro Balanced & Diversified Growth Strategy New route allocation New bases – in operation New bases – announced CEE
Slide 18: Summer 2017 Network Development
WIZZ | Summer 2017 Network Development Source: Company Information for the period Apr 2016 to May 2017. 18
Slide 19: 2017 Fleet Allocation
WIZZ | 2017 Fleet Allocation New aircraft allocation announced Source: Company Information 19
Slide 20: Increasing Ancillary Revenue per Pax
WIZZ | Increasing Ancillary Revenue per Pax Over 30 different revenues streams and growing Members (in 000’s and % yoy growth)) + 29% + 41% 1,055 + 29% 815 + 65% 580 + 35% 448 272 201 F12 F13 F14 F15 F16 F17 20
Slide 21: Technological Advancements
WIZZ| Technological Advancements 3 CLICK BOOKING IN 30 SECONDS Destination 1 Date 2 Payment 3 21
Slide 22: FY 2018 Outlook & Guidance
WIZZ | FY 2018 Outlook & Guidance Guidance Capacity growth (ASKs) +23% H1: 23%, H2: 23% Average stage length Modest increase - Load Factor +1% - Fuel CASK +10% Jet price of $515/MT Ex-fuel CASK Broadly flat Assumes €/$1.11 Total CASK +3% - Revenue per ASK Low single digit increase Stable fuel and st
Slide 23: Summary
WIZZ | Summary 1 Record net profit in F17 2 Record 23.8m passengers 3 Increasing cost advantage 4 Highest ancillary revenue per passenger 5 Consolidating market leadership in CEE 6 FY 2018 guidance range €250m - €270m 23
Slide 24: wizzair.com
wizzair.com
Slide 25: Appendix
APPENDIX WY wizzair.com
Slide 26: Balanced Hedging Approach
WIZZ | Balanced Hedging Approach Jet Fuel Hedging US Dollar Hedging 80% 80% 60% 60% 40% 40% 66% 50% 20% 20% 25% 28% 0% 0% F18 F19 F18 F19 Average $526 $545 Average $1.13 $1.09 capped rate capped rate Average $482 $496 Average $1.09 $1.07 floor rate floor rate Sensitivities (before hedges) for the re
Slide 27: #1 LCC in CEE
WIZZ | #1 LCC in CEE Position - Country #1 #2 #3 Position - CEE Poland Ryanair Easyjet Romania Blue Air Ryanair Hungary Ryanair Easyjet Czech Republic Easyjet Ryanair Ryanair Norwegian Lithuania Bulgaria Ryanair Easyjet 39% # 1 Latvia Ryanair Norwegian Ukraine Air Pegasus Flydubai Slovakia Ryanair A
Slide 28: Underlying Performance
WIZZ | Underlying Performance € million Profit for the year 2017 2016 Statutory (IFRS) profit measure 246.0 192.9 Exceptional items: Realised Fx gain on conversion of deposits - (8.7) Net gain on fuel caps sold before expiry (4.5) - Loss from change in time value of hedges (14.3) 25.0 Total exceptio
Slide 29: Balance Sheet
WIZZ | Balance Sheet € million F2017 F2016 Property, plant and equipment 505.7 353.6 Restricted cash1 155.9 101.6 Derivative financial instruments1 10.1 1.7 Trade and other receivables1 208.7 197.7 Cash and cash equivalents 774.0 645.6 Other assets1 42.1 31.7 Total assets 1,696.3 1,331.8 Equity 952.
Slide 30: Q4 Financial Highlights
WIZZ | Q4 Financial Highlights € million Q4 2017 Q4 2016 Change Passenger ticket revenue 156.6 163.3 (4.1)% Ancillary revenue 152.3 119.0 +28.0% Total revenue 308.9 282.3 +9.4% Fuel costs 93.5 78.0 +19.8% Other expenses 235.4 202.9 +16.0% Total operating expenses 328.9 281.0 +17.0% Operating Profit
Slide 31: F17 Quarterly KPI
WIZZ | F17 Quarterly KPI CAPACITY Q1 F17 Q2 F17 Q3 F17 Q4 F17 Number of aircraft at end of period 70.00 73.00 74.00 79.00 Equivalent aircraft 67.72 71.24 73.26 76.31 Utilisation 13.08 13.74 12.06 11.30 Total block hours 80,607 90,034 81,308 77,642 Total flight hours 70,008 78,215 70,581 67,383 Reven
Slide 32: Selected KPIs
WIZZ | Selected KPIs CAPACITY 2017 2016 Number of aircraft at end of period 79 67 Equivalent Aircraft 72.13 62.57 Utilisation 12.48 12.44 Total block hours 329,592 284,894 Total flight hours 286,188 246,930 Revenue departures 141,698 125,501 Average departures per day per aircraft 5.37 5.48 Seat cap
Slide 33: 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