Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — FY2023 Earnings Presentation
22 slides from Wizz Air's earnings presentation, Jun 8, 2023
Slide 1: Wizz Air Holdings Plc F23 Annual Results
8 June 2023 WIZZ AIR HOLDINGS PLC F23 ANNUAL RESULTS
Slide 2: Full Year F23 Highlights
FULL YEAR F23 | HIGHLIGHTS ASK capacity +76% vs F22 (+40% vs F20) Record yearly traffic at 51.1m passengers with load factors up 10 pts YoY Revenue +134% YoY (+41% vs F20); world leading ancillary per pax at EUR 37 Continued progress in unit cost reduction; ex-fuel CASK down 8% vs F22 Positive EBITD
Slide 3: F23 Key Business Metrics
F23 | KEY BUSINESS METRICS versus pre- versus pandemic (F22) (F20) Seats 58.2m (+68%) (+36%) Passengers 51.1m (+89%) (+24%) Aircraft* 179 (+27) (+57) Airports 194 (=) (+39) 1050+ routes Bases** 35 (-5) (+10) Countries 54 (+3) (+9) World 2022 Most Sustainable Finance Low-Cost Airline CAPA Global Envi
Slide 4: Financial Performance
F23 | FINANCIAL PERFORMANCE F23 F22 Change Revenue (€m) 3,895.7 1,663.4 134.2% Fuel costs (€m) (1,954.4) (649.0) 201.1% Non-fuel costs (€m) (2,408.1) (1,479.7) 62.7% EBITDA (€m) 134.3 (23.3) n.m. Operating (loss) (€m) (466.8) (465.3) (1.0)% Net financing gain / (loss) (€m)* (97.9) (176.2) (44.5)% Re
Slide 5: Revenue Performance
F23 | REVENUE PERFORMANCE STRONG FARE ENVIRONMENT AND CONTINUED ANCILLARIES' GROWTH F23 vs F22 vs F20 RASK (€ cents) RASK 3.98c +33.1% +1.0% 4.50 +33.1% +14.5% +6.8% RASK Ancillary 1.91c Ancillary 3.95 3.98 Ticket RASK Ticket 2.07c +57.4% -3.9% 3.75 2.99 ✓ Driving pricing & growth in mature and new
Slide 6: Improving Cost Performance
F23 | IMPROVING COST PERFORMANCE CASK € cent F23 F22 F20 Change Change Industry Challenges: vs F22 vs F20 ▪ Ukraine war Fuel (1.99) (1.17) (1.25) 70% 59% ▪ Energy cost and inflation Staff costs (0.38) (0.39) (0.33) (3%) 15% ▪ Supply-chain backlogs Distribution & marketing (0.09) (0.08) (0.06) 13% 50
Slide 7: Cash Management
F23 | CASH MANAGEMENT In € million 1,529 1,379 245 61 308 208 206 154 Cash - 1 Operations Unflown AP / AR Inventory Pre delivery PDP facility Cash - 31 Apr 2022 (including revenue (EU / UK ETS) payments draw Mar 2023 leases) refunds (PDP) Cash refers to total cash and comprises cash and cash equival
Slide 8: Financial Strength
F23 | FINANCIAL STRENGTH INCREASING CASH BALANCE IN LINE WITH BUSINESS VOLUME € million Strong Spring-Summer ’23 revenue inflows 1,800 1,617 Total cash deposits earning high interest (higher 1,497 1,529 1,500 169 1,379 120 vs borrowing rate) 186 162 1,200 Consistent efficient management of trade 900
Slide 9: Improving Operational Metrics
F23 | IMPROVING OPERATIONAL METRICS vs F22 99.90% 99.80% 99.60% 99.50% Flights 267,707 99.50% 99.40% +60% 99.10% 98.70% 98.60% Load factor 87.8% 97.91% +9.7ppt 96.80% Stage length 1,680 km +4.7% 96.00% 11:08 hours May-22 Jul-22 Feb-23 Mar-23 Apr-22 Oct-22 Jun-22 Aug-22 Sep-22 Nov-22 Dec-22 Jan-23 Ut
Slide 10: Focus on F24
FOCUS ON F24 1. Delivering unit cost reduction 2. Improving operational performance 3. Building the brand 4. Expanding market presence 5. Enhancing network fundamentals 6. Fleet development 7. Sustainability leadership 8. Outlook F24 PAGE 10
Slide 11: F24 Delivering Unit Cost Reduction
F24 | DELIVERING UNIT COST REDUCTION ✓ ASKs: +30% YoY More ✓ Load factor: 90%+ production ✓ Utilization: better than F20 ✓ Gauge: 226 average seats (vs 219 in F23) ✓ Crew productivity: +25% YoY ✓ Fleet age: -11% YoY (4.1 years in F24) Returning to Better cost pre-pandemic ✓ Scale: +23 aircraft (of +
Slide 12: F24 Improving Operational Performance
F24 | IMPROVING OPERATIONAL PERFORMANCE Preparing for a busy summer!! Delivering improvements in calendar year 2023 to date ✓ Security of aircraft supply from Airbus ✓ Stabilizing summer flying program Regularity #1 LCC thru end May ✓ Increasing network and schedule density +1pp vs Euro avg ✓ Decent
Slide 13: F24 Building the Brand
F24 | BUILDING THE BRAND Broader brand awareness Customer focused initiatives CEE Breakthrough ✓ Four new contact centers 95% 93% 92% May-22 88% 89% 88% 87% 82% ✓ Increased customer service capacity 80% Apr-23 70% ✓ Automation solutions 49% 55% 50% ✓ Amelia virtual assistant on Wizz App 47% 45% 39%
Slide 14: F24 Expanding Market Presence
F24 | EXPANDING MARKET PRESENCE Widening CEE market leadership Base region Sept ’22 Sept ‘23 75 (# of aircraft) Joining New airport New Increasing frequencies existing (same destination CEE Core 83 92 62% airports country) countries 84% 14% 1% CEE Rest 35 36 1% 56% 54% UAE/ UK/ IT/ AUT 49 60 50 49%
Slide 15: F24 Enhancing Network Fundamentals
F24 | ENHANCING NETWORK FUNDAMENTALS Increasing maturity drives profitability Higher yield from a better network mix 100% 100% > 12 years 22% 22% 24% 22% 71% 65% 65% VFR 5 - 12 years 31% 27% 23% 26% 81% 12% 9% 15% 3 - 5 years 15% 10% 11% City 25% 38% 6% 1 - 3 years 24% 33% 14% 18% Leisure 10% 21% <
Slide 16: F24 Network Expansion Potential
F24 | NETWORK EXPANSION POTENTIAL CIS & Caucasus 20% Europe GCC & 50% Middle East 30% CREATING NEW ULCC MARKETS: 5 BILLION PEOPLE within an 8-hour radius from Arabian Peninsula UAE ➢39 destinations and growing* ➢Fleet growing to 15x aircraft ➢Brand awareness reaching 50% Saudi ➢24 routes ➢Brand awar
Slide 17: F24 Continued Fleet Growth
F24 | CONTINUED FLEET GROWTH F23 F24 • Youngest fleet w/ highest seat density Deliveries 35 41 • Attractive financing into CY 2024 NEO share 49% 63% Fleet age 4.6 years 4.1 years 219 226 205 212 201 205 192 179 153 137 123 121 82 112 22 47 2 8 38 41 41 41 6 41 6 42 6 72 72 68 6 59 50 34 F19 F20 F21
Slide 18: Leading in Sustainability
F23 | LEADING IN SUSTAINABILITY • Winner of CAPA Aviation EMEA and Global Environmental Sustainability Airline Group of the Year • Record low CO2 per RPK emitted in CY 2022 (55.2 g), then F23 (53.8 g) • Artificial intelligence powered fuel efficiency programmes LOWEST CO2/RPK • Youngest fleet among
Slide 19: Leading in Sustainability
F23 | LEADING IN SUSTAINABILITY NUMBER OF SOCIAL AND GOVERNANCE HIGHLIGHTS 7,300+ EMPLOYEES • “She Can Fly Programme” - flight deck diversity NEW EMPLOYEES • Captain seniority bonus 2,500+ HIRED • New senior cabin crew bonus EMPLOYEE • Employee assistance payments to offset inflation 93 NATIONALITIE
Slide 20: Outlook – F24
OUTLOOK – F24 Capacity growth (ASKs) H1: +30%, FY +30% Average stage length FY: Modest increase YoY Load factor FY: 90%+ Ex-fuel CASK FY: lower YoY Effective tax rate FY: 10% Net profit (F24) €350 – €450 million F23 Net loss of €535m F24 Net profit of €350-€450m Revenue improvement Ex-fuel CASK Macr
Slide 21: Wizz 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
Slide 22: Appendix: Hedge Program
APPENDIX: HEDGE PROGRAM* 100% HEDGE COVERAGE 60% 258% 267% 40% 13% F24 F25 F24 F24 12 months 6 months 12 months 12 months Fuel EU / UK ETS** FX EURUSD Weighted average ceiling $970 / mt $853 / mt $1.11 Weighted average floor $844 / mt $740 / mt $1.07 * As of 8 June, 2023 **inclusive of free allowanc