Ryanair Holdings Plc · EURONEXT:RYA

Ryanair — Q1 FY2016 Earnings Presentation

22 slides from Ryanair's earnings presentation, July 2015

  1. Slide 1: Q1 FY'16 Results

    Q1 FY’16 Results © Ryanair 2014

  2. Slide 2: Europe's Favourite Airline

    Eur ope’s Favourite Air line Europe’s Lowest Fares/Lowest Costs Europe’s No 1, Traffic – 103m Europe’s No 1, Coverage – 72 Bases Europe’s No 1, C’mer Service – Low Fares/On-time/Bags/Canx – “Always Getting Better” Program Fwd Bookings, Ld Factors & Traffic Rising 380 new a/c order = growth to 160mpa

  3. Slide 3: Europe's Lowest Fares

    Eur ope’s Lowest Far es Avg. Fare % > Ryanair Ryanair €47 Norwegian €81 +72% easyJet €84 +79% Aer Lingus €94 +100% Air Berlin €120 +155% Lufthansa €230 +389% IAG €231 +391% Air France / KLM €253 +438% Avg Competitor Fare €156 +232% Source: Latest Annual Reports 3 © Ryanair 2014

  4. Slide 4: Europe's Lowest Costs (Ex Fuel)

    Eur ope’s Lowest Costs (Ex Fuel) RYA EZY NOR AB1 LUV Spirit Staff €6 €9 €15 €17 €35 €19 Airport & hand €8 €21 €14 €27 €8 €6 Route charges €6 €6 €8 €8 €0 €0 Own’ship & maint. €7 €8 €21 €29 €16 €19 S & M other €2 €7 €4 €26 €15 €15 Total €29 €52 €62 €107 €74 €59 % > Ryanair + 76% +114% +270% +155% +103

  5. Slide 5: Europe's No 1 Coverage

    E u r o p e ’s N o 1 C ove r a g e 72 bases 31 countries 191 airports 1,600+ routes 103m c’mers p.a. 317 x B737-800’s 380 x B737s on order 5 © Ryanair 2014

  6. Slide 6: Europe's No 1 Market Share

    E u r o p e ’s N o 1 M a r ke t S h a r e Country (Cap m)* No. 1 No. 2 No. 3 Share UK (117) easyjet BA 17% Germany (112) Luft Air Berlin 5% Spain (105) Vueling Iberia 18% Italy (85) Alitalia easyJet 26% France (72) AF- KLM easyJet 7% Portugal (19) TAP easyJet 21% Belgium (15) SN Brussels Jetairfly 2

  7. Slide 7: Europe's No 1 For Traffic Growth

    E u r o p e ’s N o 1 Fo r Tr a f f i c G r ow t h 160 2014/15 90.6 65 63 62 57 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 . Source: Latest traffic stats to Dec-14, company forecasts 7 7 © Ryanair 2014

  8. Slide 8: Q1 2016 – Profits up 25%

    Q1 2016 – Profits up 25% Jun-14 Jun-15 Traffic (m) 24.3 28.0 +16% Load Factor 86% 92% +6% Avg. fare (incl. bag) €46 €45 -4% Revenue (m) €1,496 €1,653 +10% Net Profit (m) €197 €245 +25% Net Margin 13% 15% +2% EPS (€cent) 14.2 17.9 +26% 8 © Ryanair 2014

  9. Slide 9: Q1 2016 Balance Sheet

    Q1 2016 Balance Sheet Mar-15 Jun-15 €m €m Aircraft (incl. dep) 7,389 7,174 Cash 4,796 4,881 Total 12,185 12,055 N Cash N Cash(i) €364m €554m Liabilities 3,718 3,914 Debt 4,432 4,328 S/H funds 4,035 3,813 Total 12,185 12,055 (i) Net cash after €195m share buy-backs in Q1 9 © Ryanair 2014

  10. Slide 10: Current Developments

    Cur r ent Developments “Always Getting Better” – Year 2 Rollout LF & fwd bookings rising despite high p/y comps Traffic revised from 100m to 103m in FY16 H2 Yield – Cautious outlook FY16 Guidance – Cautious outlook FY17 Oil hedges improving (70% @ $657pmt) 10 © Ryanair 2014

  11. Slide 11: "Always Getting Better" – Year 2 Rollout

    “A l w a y s G e t t i n g B e t t e r ” – Ye a r 2 R o l l o u t New US web-site (Jan) New c’mer charter (Feb) Apt & sport fees cut again (Apr) New personalised app (May) Drop bugle & insurance opt out (Sept) New personalised web-site (Oct) Hold fare & price comp. features (Oct) New interiors, unif

  12. Slide 12: LF & Fwd Bookings Rising

    LF & Fwd Bookings Rising FY14 FY15 FY15 FY16 Apr 81% 84% +3% Apr 84% 91% +7% May 82% 85% +3% May 85% 92% +7% Jun 84% 88% +4% Jun 88% 93% +5% Jul 88% 91% +3% July +3% Aug 89% 93% +4% Fwd Aug +4% Sep 85% 90% +5% bks(i) Sept +5% Oct 83% 89% +6% Oct +5% Nov 81% 88% +7% Nov +2% Dec 81% 88% +7% Jan 71% 83

  13. Slide 13: Traffic Revised from 100m to 103m in FY16

    Tr a f f i c Rev i s e d f r o m 1 0 0 m t o 1 0 3 m i n F Y 1 6 H1 traffic from +10% to +13% (LF +4%pts) H2 traffic from +10% to +15% (LF flat) Original Revised Growth (p/y) Q1 27.4m 28.0m +16% Q2 29.2m 29.8m +10% Q3 23.0m 23.6m +13% Q4 20.8m 21.6m +17% 100.4m 103.0m +14% 13 © Ryanair 2014

  14. Slide 14: H2 Yield – Cautious Outlook

    H2 Yield – Cautious Outlook H2 traffic +15% H2 yields down -4% to -8% Ltd visibility – Q3 10% bkd, Q4 only 2% bkd Lower oil may lead to lower W15 fares RYR increase W15 traffic from 10% to 15% Load factor active / yield passive model 14 © Ryanair 2014

  15. Slide 15: FY16 Guidance – Cautious Outlook

    FY16 Guidance – Cautious Outlook Load Factor up 2% to 90% Traffic up 14% to 103m Sector length flat Unit cost down -3% (ex–fuel flat) Avg. fare falls: H1 flat, H2 -4% -8% Lower oil may lead to lower fares; irrational compet Profits grow to €940m - €970m (sub to H2 fares) Forecast subject to “LF acti

  16. Slide 16: FY17 Oil Hedges Improving

    F Y 1 7 O i l H e d g e s I m p r ov i n g ( 7 0 % @ $ 6 5 7 p m t ) $pmt FY15 FY16 FY17 Q1 $945 $934 (act) $667 (90%) Q2 $942 $935 (90%) $662 (90%) Q3 $960 $905 (90%) $630 (70%) Q4 $959 $849 (90%) $626 (15%) FY $950 $910 (90%) $657 (70%) FY16 Fuel 90% hedged @ $910pmt; saving approx. €85m over p/y

  17. Slide 17: Appendices

    Appendices Uj YEARS OF LOW 1985-2015 FARES VYRYANAIR

  18. Slide 18: Comps Can't Match RYR Pricing & AGB

    C o m p s C a n’ t M at ch RY R P r i c i n g & AG B STN-EDI EZY RYR STN-GLA EZY RYR Oct'14 25,500 - Oct'14 24,000 - Mar'15 22,800 25,200 Mar'15 13,700 24,200 Apr'15 21,700 29,600 Apr'15 17,500 27,500 May'15 23,000 31,100 May'15 18,300 29,500 LON-CGN EZY (G) RYR (S) LON- LIS EZY (G + L) RYR (S) Oct'

  19. Slide 19: Capital Returns

    Capital Retur ns Buyback Spec Divs FY08 €300m FY09 €46m FY11 €500m FY12 €125m FY13 €67m €492m FY14 €484m FY15 €520m FY16 €400m Total €1,422m €1,512m Total €2,934m 19 © Ryanair 2014

  20. Slide 20: Fleet / Traffic Growth FY15 to FY24

    F l e e t / Tr a f f i c G r ow t h F Y 1 5 t o F Y 2 4 Fleet C’mers Growth (at YE) P.A. Ann Cum FY15 308 91m + 11% + 11% 340 103m + 13% + 26% 737-800 Order FY16 FY17 368 109m + 6% + 33% FY18 402 115m + 8% + 41% FY19 420 120m +6% + 47% FY20 451 128m + 7% + 57% FY21 468 136m + 6% + 66% MAX Order FY22

  21. Slide 21: SH Deliveries: 2015-19 (limited capacity increase)

    SH Deliveries: 2015-19 (limited cap incr ease) Y/e fleet Additions Year 2014 2015 2016 2017 2018 2019 Total Ryanair 308 40 50 50 29 31 508 easyJet 225 18 18 34 33 19 347 Air France 218 1 4 0 0 0 223 Lufthansa 173 16 30 19 16 10 264 British Airways 139 0 0 0 9 10 158 Norwegian 88 7 17 38 37 33 220 Wi

  22. Slide 22: 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

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