Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — Q1 F17 Earnings Presentation
19 slides from Wizz Air's earnings presentation, Jul 20, 2016
Slide 1: F17 Q1 Results
Half Year F1 Results November 4, 2015 F17 Q1 Results 20 JULY 2016
Slide 2: Q1 Business Highlights
Q1 BUSINESS HIGHLIGHTS • Passenger growth of 18% to 5.8m pax on 17% seat growth • Record underlying profit of €38.6m (+14%) despite Easter effect • Strong cost performance (Q1 F16 distorted by FX gain) • Continued rollout of A321 increasing our cost advantage • Capacity re-allocation ongoing due to
Slide 3: Delivering Operational Performance in Q1
DELIVERING OPERATIONAL PERFORMANCE IN Q1 Aircraft 70 Airports Schedule 124 Integrity Countries 38 Utilisation 13.1 hours Bases 25 Punctuality 80.2% Staff 2,600+ Regularity 99.9% Passengers 5.8 million Dispatch 99.8% Flights 35,000+ Source: Company Information. As at June 30 2016. 3
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS For the three months ended 30 June 2016 2015 Change ASK (‘000 km) 10,071,260 8,413,329 +19.7% CASK (€ cents) 3.19 3.54 (10.0)% CASK ex-fuel (€ cents) 2.26 2.20 +2.3% RASK (€ cents) 3.62 3.95 (8.3)% Ancillary revenue per pax (€) 26.6 25.9 +2.4% Revenue (€ m) 364.9 332.5 +9.8% Net
Slide 5: Strong Revenue Growth
STRONG REVENUE GROWTH Revenue increased 9.8% to €364.9m Revenue Development (€m) 1,429 • Ticket revenues increased 3.0% • Ancillary revenues increased 20.8% 1,227 Ancillary revenues 41.9% of revenues 534 1,012 433 400 851 365 (€m) 766 353 350 333 274 300 214 127 153 589 37.4% 250 34.9% 35.3% 165 32.
Slide 6: Increasing Our Cost Advantage
INCREASING OUR COST ADVANTAGE CASK and ex-fuel CASK Challenges development € cents • US dollar strength 3.88 3.74 3.72* 3.51 3.61* 3.43 3.54 Fuel • Inflationary pressures CASK 3.19 • Infrastructure costs 1.19 1.49 1.58 1.48 1.36 1.16 1.34 0.93 - 30% Opportunities + 2% • A321 fleet development 2.32 2
Slide 7: Continuous Cost Control
CONTINUOUS COST CONTROL € cents € cents € cents CASK for the three months ended 30 June 2016 2015 Change Staff costs 0.27 0.27 - Fuel costs 0.93 1.34 (0.41) Distribution and marketing 0.07 0.07 - Maintenance, materials and repairs 0.21 0.25 (0.04) Aircraft rentals 0.53 0.43 0.10 Depreciation and amo
Slide 8: Cost Advantage from A321
COST ADVANTAGE FROM A321 Fleet at Q1 Fleet Development 175 226 229 240 • 70 aircraft 213 219 205 154 200 194 • 7x A321 150 183 190 138 142 190 (3x delivered in Q1) 125 121 • Unit cost advantage 104 101 140 100 93 98 134 Airbus Order 79 40 74 118 26 52 75 67 16 90 • 110 A321neo 4 deliveries from 2019
Slide 9: Liquidity and Leverage
LIQUIDITY AND LEVERAGE Free Cash1 (€m) as % of LTM Revenue Leverage2 48% 5.2 45% 707 646 45% 4.1 571 3.7 36% 449 2.6 1.6 18% 1.4 1.4 1.3 186 12% 14% 11% 103 83 85 F11 F12 F13 F14 F15 F16 Q1 F16 Q1 F17 F11 F12 F13 F14 F15 F16 Q1 F16 Q1 F17 Company information. Note 1: Cash and Cash Equivalents (€m) N
Slide 10: Brexit
BREXIT Last 12 months GBP/EUR Wizz Air H2 Capacity Exchange Rate on UK Markets 1.5 Planned growth on UK market Pre-BREXIT 1.45 -8% +30% +15% 1.4 100% To be 1.35 50% redeployed on non-UK routes 1.3 1.25 41.9% 38.1% 50% 50% 1.2 Post-BREXIT - 11% 0% 1.15 Pre Brexit Post Brexit Source: Company Informati
Slide 11: Reconfirm F17 Guidance
RECONFIRM F17 GUIDANCE 2017 Financial Year Comments Previous Capacity growth (ASKs) Between 16% - 17% H1: 17%, H2: Between 14% -16% H1: 18%, H2: 16% Average stage length Modest increase - No change Load Factor Modest improvement - No change Fuel CASK - 15% Assumes spot price of $450/MT No change Ex-
Slide 12: The World of Opportunity
THE WORLD 3 OF OPPORTUNITY ~ S > BEGINS WITH A SMILE ¥: ye a wizzair.com
Slide 13: Hedge Programme
HEDGE PROGRAMME 80% 80% Jet Fuel US Dollar 60% 60% 40% 40% 59% 56% 20% 20% 19% 15% 0% 0% F17 F18 F17 F18 Hedge Coverage 59% 19% 56% 15% Average capped rate $671 $515 $1.12 $1.13 Average floor rate n/a $466 $1.08 $1.11 Zero cost collar instruments Fuel Caps Zero cost collars & Natural Hedges Sensitiv
Slide 14: Underlying Performance
UNDERLYING PERFORMANCE Underlying Profit € million, for the three months ended 30 June 2016 2015 Statutory (IFRS) profit measure 50.7 32.9 Exceptional items: Unrealised foreign exchange losses/(gains) - 14.9 Realised FX gain from replacing US dollar collateral - (8.8) with Euro collateral Time value
Slide 15: Summary Income Statement
SUMMARY INCOME STATEMENT € million, for the three months ended 30 June 2016 2015 Passenger ticket revenue 212,0 205.9 Ancillary revenue 152,9 126.6 Total revenue 364,9 332.5 Staff costs 27,6 22.9 Fuel costs 93,8 112.4 Distribution and marketing 7,1 6.2 Maintenance materials and repairs 20,7 21.3 Air
Slide 16: Selected KPI's
SELECTED KPI’S For the three months ended 30 June CAPACITY 2016 2015 Change YoY Number of aircraft at end of period 70 62 12.9% Equivalent 67.72 58.10 16.6% Utilisation 13.08 13.01 0.2% Total block hours 80,607 68,998 16.8% Total flight hours 70,008 59,794 17.1% Revenue departures 35,022 30,528 14.6
Slide 17: Selected Financial KPI's
SELECTED FINANCIAL KPI’S For the three months ended 30 June Change 2016 2015 YoY Yield (€ cents) 4.04 4.45 (9.1)% Average revenue per seat (€) 56.77 60.51 (6.2)% Average revenue per passenger 63.42 68.13 (6.9)% RASK (€ cents) 3.62 3.95 (8.3)% CASK (€ cents) 3.19 3.54 (10.0)% Ex-fuel CASK (€ cents) 2
Slide 18: Planned Fleet Development
PLANNED FLEET DEVELOPMENT Seat Count F16 F17 F18 F19 F20 F21 F22 F23 F24 A320 180 35 35 35 24 15 10 5 - - A320S 180 28 28 32 37 37 37 35 24 20 A321S 230 4 16 26 31 31 31 31 31 31 A321neo 230 - - - 9 17 17 17 17 17 A321neo 239 - - - - 4 26 50 70 86 Total Fleet size 67 79 93 101 104 121 138 142 154 Sh
Slide 19: Disclaimer
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 intended