Ryanair Holdings Plc · EURONEXT:RYA
Ryanair — FY20 Earnings Presentation
16 slides from Ryanair's earnings presentation, May 18, 2020
Slide 1: FY20 Results
FY20 Results 1
Slide 2: Europe's Lowest Cost Airline Group
Eur ope’s Lowest Cost Air line Gr oup Lowest fare/lowest cost airline group No. 1, Traffic – FY20 149m guests (+4%) No. 1, Cover – 242 airports/2,100 routes C-19 grounds fleet Mar to Jul Strong balance sheet Financial strength + Lowest cost = Long term winner 2 2
Slide 3: Europe's Lowest Fares
Eur ope’s Lowest Far es Avg. Fare Change % > Ryanair Ryanair €37 +2% Wizz €47 +3% +27% easyJet €59 -3% +59% Norwegian €99 +9% +168% Lufthansa €178 +1% +381% IAG €190 - +414% AF/KLM €213 +1% +476% Avg Competitor Fare €131 +254% (Source: FY results/Annual Reports) 3 3
Slide 4: Europe's Lowest Costs Wins!
Eur ope’s Lowest Costs W ins! € per pax RYA WIZ EZJ NOR E’Wings LUV Staff/efficiency 7 6 10 19 20 55 Airport & Hand. 8 11 22 19 18 9 Route Charges 5 5 5 7 7 0 Own’ship & maint. 7 15 9 28 21 17 S & M other 4 2* 7 14 28 20 Total 31 39 53 87 94 101 %> Ryanair +26% +71% +181% +203% +226% * Wizz Air incl
Slide 5: FY20 Results – Pre exceptionals
FY20 Results – Pr e exceptionals Mar 19 Mar 20 (i) Guests (m) 143 149 +4% Rev per Pax €54 €57 +6% Avg fare €37 €37 +2% Ancills per Pax €17 €20 +16% Unit Costs (ex fuel) €30 €31 +4% (ii) PAT(m) €885 €1,002 +13% (i) On target for 154m pre-Covid-19 in March 2020 (ii) Excl. exceptional €353 hedge ineffe
Slide 6: Strong Balance Sheet
Strong Balance Sheet €’bn 31 Mar 19 31 Mar 20 Assets 10.06 10.94 Incl. 330 debt free B737 (€7bn val) Cash 3.19 3.81 Total 13.25 14.75 Cash burn: €200m per wk pre Covid Accruals 4.39 5.57 €60m per wk post Covid Debt 3.64 4.21 S/H Funds 5.22 4.97 Total 13.25 14.75 (i) Net Debt 0.45 0.40 (i) Incl. Leas
Slide 7: Current Developments
Cur r ent Developments C-19 grounds 99% of fleet mid-March to Jul UK CCFF £600m drawn down (BBB credit) Bal Sheet strength – €4.1bn cash, 330 B737s debt free (€7bn) Cost Savings / Cash burn cut to €60m per week Get Europe flying - 40% of normal schedule Jul - Public health – masks / temp c
Slide 8: Sudden Impact of Covid-19
S u d d e n I m p a c t o f C ov i d - 1 9 Pax (m) Budget Actual Chge % Jan 10.7 10.8 0.1 +1% Feb 10.4 10.5 0.1 +1% Mar 11.6 5.7 (5.9) -51% Apr 13.6 0.04 (13.6) -99% May 14.3 0.05 (14.3) -99% Jun 14.6 0.06 (14.5) -99% 8 8
Slide 9: Return to Service - July
Retur n to Ser vice - Jul y 40% scheduled flights from Jul, 60% from Aug Subject to Govt restrictions Health measures incl. masks, temp checks & HEPA air filters Thousands of EU airline job losses Seat sales to stimulate demand = weaker yields for FY21 EU Govs must comply with State Aid
Slide 10: Cost Savings & Cash Burn
Cost Savings & Cash Bur n Cancelled share buyback Grounded fleet, pay cuts (50% Apr/May), wage support schemes Reduced op. spend & non-essential capex Payment deferrals WIP: Base closures Pay cuts & up to 3,000 job losses New apt & handling deals MAX deliveries (-16% fuel/4 extra seats) Fl
Slide 11: Fuel hedging & ineffectiveness
Fuel hedging & inef fectiveness 90% expected FY21 fuel vol hedged pre C-19 crisis Fleet grounded – excess fuel hedges for FY21 €353m ineffective P&L charge now (FY20) on excess FY21 fuel vol Some P&L volatility in FY21: ineffective hedges MTM each qtr Possibly more ineffectiveness if slowe
Slide 12: State Aid – Job Losses
State Aid – Job Losses State Aid Job Losses Lufthansa €12.4bn BA 12,000 AirFrance/KLM €10.1bn Lufthansa 10,000 Alitalia €3.5bn TUI Group 8,000 TUI Group €1.8bn SAS 5,000 SAS €0.8bn Norwegian 5,000 Finnair €0.7bn Virgin 3,150 Condor €0.6bn Ryanair 3,000 Norwegian €0.3bn Wizz 1,000 20% pay cuts, up to
Slide 13: Boeing 737MAX update
Boeing 737MAX update 210 orders (135 firm, 75 options) USA RTS Sept 2020 Target deliv MAX-200 Oct – Subj to RTS in Sept Gamechanger: 4% more seats, 16% less fuel Envir savings: -16% emissions, -40% noise Lower cost MAX drive EU mkt share gains post C-19 Boeing talks can’t conclude unti
Slide 14: Board Update
Boar d Update Stan McCarthy new Chair from June Louise Phelan new SID from June D Bonderman & K McLaughlin leave Board end May Gender diversity: 40% female Committee Chairs refreshed Audit: Dick Milliken RemCo: Julie O’Neill NomCo: Stan McCarthy 14 14
Slide 15: FY21 Outlook
FY21 Outlook No FY21 guidance due C-19 uncertainty (Q1 loss > €200m) Base closures & 3,000 job losses plus 250 office jobs Strong liquidity & cash preservation measures Pay cuts, job losses & lower airport costs Expect low fares to drive strong volumes in RTS State aid will drive down ai
Slide 16: 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