Ryanair Holdings PLC · EURONEXT:RYA
Ryanair — FY2014 Earnings Presentation
20 slides from Ryanair's earnings presentation, May 19, 2014
Slide 1: Full Year (Mar 2014) Results
19 May 2014 Full Year (Mar 2014) Results
Slide 2: Europe's Favourite Low Fares Airline
EUROPE’S FAVOURITE LOW FARES AIRLINE Europe’s Lowest Fares/Lowest Unit Costs Europe’s No 1, Traffic – 84.6m (No.1 or 2 in most markets) Europe’s No 1, Coverage – 68 Bases Europe’s No 1, C’mer Service – Low Fares\Ontime\Bags\Canx – Always getting better program – Digital plan rollout Fwd bookings & L
Slide 3: Europe's Lowest Fares
EUROPE’S LOWEST FARES Avg. Fare % > Ryanair LOW Ryanair €46 (-4%) MEDIUM Norwegian €83 + 80% easyJet €84 + 83% Aer Lingus (s/h) €93 + 102% Air Berlin €121 + 163% HIGH Alitalia €148 + 222% Lufthansa €235 + 411% IAG €242 + 426% AF-KLM €300 + 552% Source: Latest company annual reports LOW FARES. MADE S
Slide 4: Europe's Lowest Unit Costs (ex Fuel)
EUROPE’S LOWEST UNIT COSTS (EX FUEL) RYA EZY NOR AB1 LUV Spirit Staff €6 €9 €15 €17 €35 €19 Airport & hand €8 €21 €14 €27 €8 €6 Route charges €6 €6 €8 €8 €0 €0 Own’ship & maint. €7 €9 €21 €29 €16 €19 S & M + other €2 €7 €4 €26 €15 €15 Total €29 €52 €62 €107 €74 €59 % > Ryanair + 79% +114% +269% +155
Slide 5: Europe's No.1 – Traffic
EUROPE’S NO.1 – TRAFFIC C’mers (m’s) 112.0 110 104.0 100 96.0 90 89.0 84.6 81.7 80 70 61 62 60 54 52 50 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2014 Ryanair Growth Source: Latest traffic stats for 12 mths to Mar14 and company forecasts. LOW FARES. MADE SIMPLE. © This presentation is subject to co
Slide 6: Strong Market Positions
STRONG MARKET POSITIONS Country (Cap m’s) No. 1 No. 2 No. 3 RYA Share UK (115) easyjet IAG 13% Germany (112) Luft Air Berlin 4% Spain (103) IAG Vueling 18% Italy (84) Alitalia easyJet 21% France (73) AF- KLM easyJet 6% Portugal (20) TAP easyJet 13% Belgium (17) SN Brussels Jetairfly 21% Ireland (16)
Slide 7: Europe's No.1 – Coverage, 68 Base Growth Platform
EUROPE’S NO.1 – COVERAGE 68 BASE GROWTH PLATFORM LOW FARES. MADE SIMPLE. © This presentation is subject to copyright and may not be copied or used without the express prior consent of Ryanair 7
Slide 8: Full Year Results
FULL YEAR RESULTS Mar 13 Mar 14 Traffic 79.3m 81.7m +3% Load Factor 82% 83% +1% Avg. Fare (incl. bag) €48 €46 -4% Rev. Per Pax. €62 €62 0% Revenue €4,884m €5,037m +3% Profit after Tax €569m €523m -8% LOW FARES. MADE SIMPLE. © This presentation is subject to copyright and may not be copied or used wi
Slide 9: Full Year Balance Sheet
FULL YEAR BALANCE SHEET Mar 13 Mar 14 Aircraft (inc. dep.) €5,384m €5,585m Cash €3,559m €3,242m Net Cash Total €8,943m €8,827m €158m Net Cash €61m (After Liabilities €2,172m €2,457m €482m Buybacks) Debt €3,498m €3,084m S/H Funds €3,273m €3,286m Total €8,943m €8,827m LOW FARES. MADE SIMPLE. © This pr
Slide 10: Customer Experience Improving
CUSTOMER EXPERIENCE IMPROVING RECAPTCHA scrapped for indiv’s – Oct 24hr grace period to correct minor b’king errors – Nov Quiet flights (early AM, late PM) – Nov 2nd free small carry on bag – Dec B’rding card reissue & bag fees cut – Dec New Groups & Corp. Travel Dept. – Jan Allocated seating – Feb
Slide 11: Digital Experience Improving
DIGITAL EXPERIENCE IMPROVING Simpler website (17 to 5 clicks) – Nov “My Ryanair”, c’mer registration – Dec New website incl. “Fare Finder” feature, great response – Mar GDS partnership (Galileo/Worldspan) for business agents – April New mobile app for smart phones & tablets – June New family and bus
Slide 12: Forward Bookings & LF Rising
FORWARD BOOKINGS & LF RISING LF Rising Fwd Bkg’s (i) PY CY Snapshot at 1st Apr NOV 80% 81% APR +5% DEC 81% 81% MAY +7% JAN 71% 71% JUN +7% FEB 77% 78% JUL +6% MAR 79% 80% AUG +6% APR 81% 84% (ii) SEP +3% (i) Stronger fwd bkg’s should lead to 2% LF growth (ii) Apr 14 LF incl. Easter Holidays LOW FARE
Slide 13: Cost Reductions Drive Profitable Growth
COST REDUCTIONS DRIVE PROFITABLE GROWTH Boeing order increased to 180 a/c – first deliveries Sept 2014 10 yr WAW (Mod) growth deal from Sep 10 yr STN growth deal agreed from Apr Irish Govt. scraps €3 travel tax Apr – add 1.2m c’mers in FY15 Flags in Sp, Fr, It, Cen Eur, Scan & Ger cut capacity – gro
Slide 14: Fleet and Traffic Growth to FY19
FLEET AND TRAFFIC GROWTH TO FY19 Summer FY Pax Pax Peak A/C (m’s) Growth S 13 303 81.7 + 3% S 14 304 84.6 + 4% S 15 318 89.0 + 5% S 16 349 96.0 + 8% S 17 388 104.0 + 8% S 18 426 112.0 + 8% BBB+ rating from S&P & Fitch assists low cost a/c financing LOW FARES. MADE SIMPLE. © This presentation is subj
Slide 15: FY15 Outlook
FY15 OUTLOOK Load factor up 2% to 85% Traffic up 4% to 84.6m. Unit costs flat - Unit costs ex fuel up 5% (Apt & Hdlg, S&M, Wint. a/c ownership) - Fuel 90% hedged, €70m saving (less de-icing) Improving c’mer service & digital experience is driving demand Yield inc. up to 2%, €47 - H1 traffic up 2%, f
Slide 16: Summary
SUMMARY Lowest fares, lowest costs in Europe No 1 or 2 share in major EU markets – platform for growth 180 a/c order + improving c’mer experience driving growth GDS & digital strategy opens new business markets Fwd bookings & Load factors ahead of PY Strong H1, expect H2 weakness as growth ramps up
Slide 17: Appendices
RYANAIR LOW FARES. MADE SIMPLE. ‘ Appendices
Slide 18: Fuel & Currency Hedging Position
FUEL & CURRENCY HEDGING POSITION FY 15 Fuel 90% hedged - $950pmt. USD 1.34 (approx. €70m saving) Cost/Tonne FY14 FY15 Change Q1 $965 (Act) $946 (90%) -2% Q2 $965 (Act) $942 (90%) -2% Q3 $990 (Act) $960 (90%) -3% Q4 $985 (Act) $960 (90%) -3% H1 16 Fuel 22% hedged - $940pmt . USD 1.38 Cost/Tonne FY15
Slide 19: Network
NETWORK 68 bases 186 destinations 30 countries 1,600+ routes 1,600+ daily dep’s 84.6m c’mers p.a. 297 a/c – all 737-800’s Newest fleet (5 yrs) 180 a/c order LOW FARES. MADE SIMPLE. © This presentation is subject to copyright and may not be copied or used without the express prior consent of Ryanair
Slide 20: 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