Easyjet Plc · LSE:EZJ
Easyjet — UBS Transport Conference 2011
19 slides from Easyjet's conference presentation, Sep 12, 2011
Slide 1: UBS Transport Conference
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx UBS Transport Conference Chris Kennedy - Chief Financial Officer 12 September 2011 1
Slide 2: Agenda
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx Agenda 1. easyJet model 2. Opportunities for „self help‟ 3. Recent performance and outlook 2
Slide 3: Robust business model
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx Robust business model Strong consumer appeal Strong consumer appeal Across leisure and business Leading short-haul network in Europe Leading presence on Top 100 routes Strong positions in
Slide 4: Proven delivery in tough environment
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx Proven delivery in tough environment % Change in Revenue per ASK - 2009 17% 15% 7% (1)% (5)% (6)% (8)% (10)% (11)% (15)% CY2009 easyJet British Airways Aer Lingus Finnair AF-KLM SAS Lufthansa Ryanai
Slide 5: Financial strategy
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx Financial strategy Objectives Measures Earn returns in excess of cost of capital Improve pbt per seat to GBP 5 Return Targets through the cycle Post tax ROCE of 12% through the cycle Invest
Slide 6: Financially strong
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx Financially strong £400m Continued strong net cash flow from operations 363 £350m 296 £300m 271 247 £250m 225 230 £200m 167 135 £150m 95 73 £100m £50m £0m 2002 2003 2004 2005 2006 2007 2008 2009 201
Slide 7: Agenda
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx Agenda 1. easyJet model 2. Opportunities for „self help‟ 3. Recent performance and outlook 7
Slide 8: Clear opportunities for improvement
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx Clear opportunities for improvement 1. Cautious approach to F‟12 capacity 2. Business travel proposition 3. Ancillary revenues 4. Smart cost management 8
Slide 9: Cautious approach to F'12 capacity
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx Cautious approach to F’12 capacity Capacity Winter - flat over next 2 seasons - (Mon – Fri) Daily freq A/B routes June week Full Year „12 – 3-4% 60 Fleet 50 Maximum of 204 aircraft for 40 next 2 win
Slide 10: Passengers travelling on business
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx Passengers travelling on business Building blocks for business proposition FY 11 FY12 FY13 Improve Improve punctuality punctuality Build Build product product - Increased Increased frequency frequen
Slide 11: Passengers travelling on business
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx Passengers travelling on business Progress on sales and distribution initiatives First phase of sales teams in place in UK, France & Switzerland First corporate deals signed with growing pipelin
Slide 12: Ancillary revenues – good momentum
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx Ancillary revenues – good momentum Goal: To grow ancillary revenues through yield management of fees and charges and better execution of partner and in-flight 2010 2011 Strong progress this year F
Slide 13: Maintaining easyJet's cost advantage
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx Maintaining easyJet’s cost advantage Goal: To maintain cost advantage by ensuring below inflation unit cost movement through procurement, crew flexibility and operational excellence Opportunities: C
Slide 14: Case study: maintenance costs
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx Case study: maintenance costs £3.06 Leverage existing contracts by renegotiation Move Base maintenance to a lower cost location Increased utilisation of Luton Facility 2009 2011 F In source
Slide 15: Agenda
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx Agenda 1. easyJet model 2. Opportunities for „self help‟ 3. Recent performance and outlook 15
Slide 16: Continued improvement in operational performance
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx Continued improvement in operational performance On Time Performance 90% 80% 70% 60% 50% 40% 30% Feb 2010 Mar 2010 Apr 2010 Oct 2010 Feb 2011 Mar 2011 Apr 2011 May 2010 May 2011 Jul 2010 Jul 2011 Ja
Slide 17: Robust commercial performance
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx Robust commercial performance Q3 ‘11 Q3 ‘10 Change Passengers (m) 14.4 12.3 17.3% Load factor (%) 86.3 86.1 0.2ppt Seats (m) 16.7 14.3 17.1% Sector length (km) 1,118 1,135 (1.6)% Total revenue (£m)
Slide 18: Outlook as at 22nd July 2011
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx Outlook as at 22nd July 2011 Capacity (seats flown) FY +11% reported, +9% ex volcano H2 +12% reported, +8% ex volcano Revenue per seat (constant currency) FY +2% to +3% H2 +4% to +5% Underlying cost
Slide 19: Summary
EZYRIDER\Presentations\20110901 - Mgmt Strategy Presentation\Optimise returns MAIN - 190811 v 42.pptx Summary Strategy is delivering Challenging environment but easyJet strongly positioned Advantaged network Strong consumer appeal Well financed; low cost and efficient Committed to delive