easyJet plc · LSE:EZJ
easyJet — 11 oct 2010 pres
8 slides from easyJet's investor presentation, October 2010
Slide 1: Variation to the Brand Licence Agreement
Variation to the Brand Licence Agreement Presentation to analysts and investors October 2010
Slide 2: Background
Background 1995 – 2000: 4 easyJet name owned and developed by the company 2000: 4 At IPO of easyJet, the company agreed to transfer ownership of the easyJet name to easyGroup IP (‘eGIP’) in exchange for the current brand licence in perpetuity for £1 royalty p.a. 4 Shareholder agreement set up allowi
Slide 3: Resolution of the brand licence dispute
Resolution of the brand licence dispute 4 Court judgment would have resolved only some issues and could have been the start of new litigation by easyGroup 4 Potential risk to ‘white label’ revenues of around £3m to £4m 4 Current situation unworkable 4 Continued refusal by eGIP to agree third party c
Slide 4: Main features of the varied agreement
Main features of the varied agreement 4 SHI gives up all rights to appoint himself as Chairman and to any Board representation. Normal rights as a shareholder remain 4 All current and contemplated activities are approved, as are a permitted list of others 4 Further ability to innovate beyond the air
Slide 5: Variations give easyJet new benefits
Variations give easyJet new benefits 4 Removal of the 75:25 rule, easyJet able to offer largely unrestricted activities within airports and aircraft; all current activities and a set of contemplated future activities approved 4 No need for consent from eGIP for co-branding and promotions with aviati
Slide 6: Financial implications
Financial implications F’10 F’11 F’12 Ongoing Consensus revenue estimates* £2,954m £3,250m £3,536m Consensus PBT estimates* £146m £242m £304m Royalty payment @ 0.25% of total £7.4m £8.1m £8.8m 0.25% of total revenue revenue easyGroup royalty payment fixed in Y1 &2 n/a £3.9m £4.95m 0.25% of revenues
Slide 7: Risks and mitigation
Risks and mitigation 4 Commercial risk to easyJet Holidays and easyJet if eGIP successfully launch easyHolidays and easyFlights. However eGIP must use another colour (as well as orange and white) in its branding of ATOL activities. AOC licence and chartering not permitted. SHI will procure that eGIP
Slide 8: Summary
Summary 4 Removal of SHI shareholder agreement ends uncertainty over governance issues 4 Settles current dispute and provides greater certainty over use of easyJet name 4 Greater freedom for easyJet to operate and generate revenue as an airline 4 Royalty provides better alignment of interests 4 Stat