Ryanair Holdings Plc · EURONEXT:RYA
Ryanair — H1 FY21 Earnings Presentation
19 slides from Ryanair's earnings presentation, Nov 2, 2020
Slide 1: FY21: H1 Results
~ RYANAI MORE CHOICE. LOWER FARES. GREAT CARE. FY21: H1 Results
Slide 2: Europe's Lowest Cost Airline Group
Eur ope’s Lowest Cost Air line Gr oup Lowest fare/lowest cost airlines No. 1, Traffic – 149m guests (FY20) No. 1, Cover – 242 apts/2,100 routes Successful return to service 1 Jul Strong (BBB) balance sheet 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 72 bases 40 countries 242 airports New Base (BVA) Over 2,100 routes 38m guests (FY21) 3 3
Slide 4: Europe's Lowest Costs Win!
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: H1 FY21 Results
H1 FY21 Results Sep 19 Sep 20 Guests (m) 85.7 17.1 -80% (i) Load Factor (%) 96 72 -24pts Revenue €5.39bn €1.18bn -78% Op. costs €4.10bn €1.35bn -67% (ii) PAT / (Net Loss) €1.15bn €(197m) n/m OTP 92% 97% +5pts (i) LF since RTS on 1 Jul (ii) Excl. €214m except. hedge ineffectiveness charge 5 5
Slide 6: Strong Balance Sheet (BBB)
Strong Balance Sheet (BBB) €’bn Mar 20 Sep 20 Assets 10.94 10.18 80% B737s debt free (€7bn book val) Cash 3.81 4.50 Strong liq. - €1.25bn equity & bond raise Total 14.75 14.68 Accruals 5.63 4.11 Debt repays next 12 months: Debt 4.21 5.59 • UK Gov. CCFF €670m (Mar. 21) • 2014 €850m Bond (Jun. 21) S/H
Slide 7: FY21 hedge ineffectiveness
FY21 hedge inef fectiveness 90% expected FY21 fuel vol hedged (150m pax) pre Covid-19 crisis Due to C-19 cap. cut to 38m - excess hedges for H2 FY21 €214m ineffectiveness charge in H1 (jet & capex) Ineffective hedges MTM each qtr (70% settled) FY22 ineffective jet hedges unlikely (c.40% he
Slide 8: Current Developments
Cur r ent Developments Get intra-EU back flying (EU traffic light system) Lowering Europe’s lowest cost base (staff, airports, aircraft, & other) Strengthened liquidity (€4.5bn cash at 30 Sep.) MAX-200 delivs. start Q4 FY21 (Subj. to MAX-8 US RTS) “No deal” Brexit risk remains Jan.21 Pos
Slide 9: Get Europe back flying
Get Europe back fl ying RTS 1 Jul: H1 17m guests / 72% LF - H2: cap. 40%, poss. lower - FY: 38m guests, poss. less Extensive health measures (ECDC) EU “Traffic Light” Travel system: - Based on weekly ECDC data - Builds c’mer confidence - Testing replaces quarantines EU must deliver a S.21 to
Slide 10: Lowering Europe's lowest cost base
Lowering Eur ope’s lowest cost base FY20 per pax Cost savings initiatives: (ex fuel) • Pilot, c.crew, engineers pay deals agreed • Pay cuts of 5% to 20% (restored over 4/5 years) – built in flex. Staff/efficiency €7 • Lauda completely restructured – new pay, rosters, productivity • Base closure & jo
Slide 11: Strengthened liquidity – Strong Bal. sheet
Strengthened liquidity– Strong Bal. sheet Strong mix of equity & debt (BBB rated balance sheet) - €400m mgt. led equity raise (multiple times oversub.) - €850m unsec. Eurobond @ 2.875% coupon (5x oversub.) Pre-fund maturing debt (UK Gov. CCFF Mar.21, Bond Jun.21) Facilitate post C-19 growth op
Slide 12: Boeing 737MAX update
Boeing 737MAX update 210 orders (135 firm, 75 options) MAX-8 RTS in USA expected cal. Q4 1ST MAX-200 deliv. in Q4 FY21 Target approx. 30 MAX-200s delivs. for peak S.21 “Gamechanger” technology: + 4% seats, -16% fuel Envir. savings: -16% emissions, -40% noise Lower cost MAX drives EU mk
Slide 13: No-deal Brexit risk intensifies
No-deal Br exit risk intensifies UK left EU Jan.20; transit. to Dec.20 Expect UK/EU to agree deal for air travel As EU Group, RYR AOC less affected than UK AOC Restrict non-EU voting rights if “hard-Brexit” RYR UK AOC protects UK dom. & 3rd country routes BOE Governor: “No-deal Brexit wi
Slide 14: Post C-19 Growth Opp
Post C-19 Growth Opp IATA: warns of airline bankruptcies (Oct.20) Competitors retrench deeply - AF-KLM: 2021 capacity -20% - EZJ: W.20 capacity -75%. A/c delivs. post. to 2025 - IAG: Defer. delivs of 68 acft due 2020-2022 - LUF: 150 acft retired by 2025 - NAS: canx Boeing order. In hibernation
Slide 15: Continuous ESG improvements
C o n t i n u o u s E S G i m p r ove m e n t s Governance devels 2020: - New Chair (Stan McCarthy) - New Ctee. Chairs (Remco, Nomco) - All NEDs independent (UK Corp. Gov. Code) - Gender diversity leader (40% female) Engagement with Invest. Forum/Glass Lewis pre AGM (seeking ISS engage.) Unite
Slide 16: FY21 Outlook
FY21 Outlook C-19 uncertainty continues – wait for vaccine: Q1 or Q2 38m FY21 traffic – potential to cut further if more lockdowns Challenging W.20 (Travel restrictions; Brexit) – op. @ 70% LF Lowering EU’s lowest airline cost base (staff, airport, aircraft, & other) Strong BBB balance she
Slide 17: Appendices
Appendices 17 17
Slide 18: Illegal State aid to legacy carriers
Ille gal State aid to le gacy car rier s • Flood of illegal state aid to flag carriers AFKLM/Alitalia/Luft/SAS/TAP • Illegal State Aid will lead to below-cost selling by flags State Aid (€bn) Lufthansa Group 11.0 Air France-KLM 10.6 Alitalia 3.5 TUI Group 1.8 TAP 1.2 > €31bn LOT 1.0 Finnair 0.9 Cond
Slide 19: Disclaimer
Disclaimer Certain of the information included in this presentation is forward looking and is subject to important 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 nature, for