Slide 1: Q3 FY'14 IMS Analyst & Investor presentation
Q3 FY’14 IMS Analyst & Investor presentation 3 months to 30 June 2014 24 July 2014 1 1
Slide 2: Continued solid performance
Continued solid performance 1. Drive demand, conversion and yields across Europe • Passenger numbers up by 9.4%; load factors remain high at 90.4% • Revenue per seat up by 2.7%(1) 2. Maintain cost advantage • Acceleration of cost savings initiatives • Cost guidance for the half upgraded from c.+2% t
Slide 3: easyJet strengthens positions at key primary airports
easyJet strengthens positions at key primary airports easyJet is increasing summer capacity by 6.4% 6% 5% 6% 50% Driven by purchase of the Flybe slots and allocation 6% of new slots which became available Flybe slots 8% c. 40% 9% 10% Gatwick Hamburg Basel Geneva Naples Nice Rome Other easyJet market
Slide 4: Step change in position at Gatwick
Step change in position at Gatwick • c.15% summer capacity growth at Gatwick easyJet market share at Gatwick • 23 May 2013 acquired slot pairs from Flybe • 30 March 2014 started to operate the slots 57% • Secured additional slot pairs from Gatwick 56% 0.4% 55.8% 2.4% Airport runway efficiency progra
Slide 5: Third quarter revenue per seat performance
Third quarter revenue per seat performance (1) c.15% Competitors on easyJet markets H2 2014 easyJet capacity H2 2014 Direction of easyJet Q3 RPS(2) 7.4% 5.6% 2.8% 2.2% -0.1% (3) Gatwick United Kingdom (less LGW) Rest of Europe Yield pressure at Gatwick driven by increased easyJet capacity (1) OAG, J
Slide 6: Revenue growth in the quarter
Revenue growth in the quarter Q3 ‘14 Q3 ‘13 Change Passengers (m) 17.9 16.4 9.4% Load factor (%) 90.4 88.2 2.2ppt Seats flown (m) 19.8 18.6 6.8% Average sector length (km) 1,118 1,109 0.9% Seat revenue (£m) 1,223 1,122 9.0% Non-seat revenue (£m) 17 20 (12.1)% Total revenue (£m) 1,240 1,142 8.6% Tota
Slide 7: Maintain cost advantage
Maintain cost advantage Q3 FY’14 Reported Constant currency 1.3% 1.0% Cost per seat excluding fuel decrease increase Drivers of cost performance in Q3 Ground handling costs down × Increase in airport charges mainly in Disruption costs down Italy • Pre-emptive cancellations × Higher maintenance c
Slide 8: easyJet is well placed to succeed
easyJet is well placed to succeed Customer focused Sustainable cost savings Differentiated pricing model 2015 2016 2017 2018 2019 Significant focus on digital and data Engineering & Friendly service Maintenance End to end customer experience Airport deals Growing brand affinity Engine sele
Slide 9: New base openings to drive growth and returns
New base openings to drive growth and returns EZJ Other LCC 51m seats 46m seats Amsterdam Non-LCC • Opening in spring 2015 with 3 based aircraft transfer (est) 26m seats Non-LCC P2P (est) • easyJet already has a No.2 position at 86m seats Amsterdam with a 9% market share • Important primary airport
Slide 10: Continued improvement in returns
Continued improvement in returns Capacity change total short-haul market 4.3% 2.8% 1.3% 0.0% 2011 2012 2013 2014 Returns Source: OAG ROCE 12% Routes 12m to 30/6/2012 12m to 30/6/2014 12m to 12m to 30/6/2011 30/6/2013 easyJet’s strategy continues to deliver increasing returns Returns analysis defined
Slide 11: Forward bookings ahead of prior year
Forward bookings ahead of prior year % Seats sold * 88% 90% Summer 13 Summer 14 75% 77% Q3 Jul Aug Sep H2 H2 (April 20‘14 to September 2014) * As at 16-07-14 11
Slide 12: Hedging update
Hedging update Fuel US Dollar Euro requirement requirement surplus Three months to 30 September 2014 83% 91% 80% Average rate $968 metric $1.58 €1.21 tonne Full year ending 30 September 2014 80% 89% 79% Average rate $980 metric $1.58 €1.20 tonne Full year ending 30 September 2015 71% 80% 65% Average
Slide 13: Outlook
Outlook Capacity (seats flown) • H2: c.+6.4% (before disruption) Revenue per seat (constant currency) • H2: c.+1% (assuming normal disruption levels) Cost per seat ex fuel (constant currency) • H2: c.+0.5% (assuming normal disruption levels) FX • H2: FX to be up to £15 million favourable (1) Fuel •
Slide 14: Summary
Summary • Solid revenue performance in the quarter despite a less benign capacity environment • Some short-term impact from step change in capacity at London Gatwick • Better than expected cost performance • Disciplined growth of network to deliver sustainable growth and returns 14
Slide 15: easyJet – upcoming events
easyJet – upcoming events • 18 September 2014 – Capital Markets Day, 2pm London • 3 October 2014 – Pre-close statement • 18 November 2014 – Full Year Results 15
Slide 16: Appendix
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Slide 17: easyJet generates industry-leading returns
easyJet generates industry-leading returns easyJet Ryanair Norwegian IAG Air France Lufthansa (1) (1) (1) (1) (1) LCU LCU LCU LCU LCU LCU(1) EBIT 484 659 124 898 217 1,155 Interest on leases (33%) 38 34 478 171 300 21 Adjusted EBIT 522 692 602 1,069 517 1,176 Tax (at marginal rate) -104 -87 -163 -22
Slide 18: Disclaimer
Disclaimer This communication is directed only at (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001; or (ii) high