easyJet plc · LSE:EZJ
easyJet — Investor Presentation (September 2021)
25 slides from easyJet's investor presentation, September 2021
Slide 1: Accelerate the recovery
Accelerate the recovery September 2021
Slide 2: Accelerate the recovery
Accelerate the recovery Transaction Enables easyJet to build on Delivering the Proceeds will… details strengths recovery Build on primary airport 1. Enhance balance positions and network Grow to pre £1.2bn rights issue pandemic capacity strength > Fully underwritten sheet strength and by 20231 impro
Slide 3: Strong track record of growth
Strong track record of growth Delivered 36% Revenue Growth Strong cash return to shareholders Revenue (£m) Dividends Paid (£m) 6,500 250 6,000 200 5,500 150 5,000 100 4,500 50 4,000 0 2016 2017 2018 2019 2016 2017 2018 2019 2020 2016 2017 2018 2019 BBB+/Baa1 £1.0bn Credit rating1 Dividends paid sinc
Slide 4: Successfully navigating through Covid-19
Successfully navigating through Covid-19 Operating cost and business protection actions Funding actions through COVID-19 > Operational cash burn less than £40m per week > £1.4bn aircraft sale and leasebacks > Delivering £500m savings in 2021 – almost half > £1.4bn UK EF sustainable > Fleet size redu
Slide 5: Capacity momentum built on network flexibility
Capacity momentum built on network flexibility Capacity ramp up Network / Schedule flexibility 2021 Capacity (m) 8.0 > easyJet’s schedule flexibility enables us to pivot 7.0 6.0 capacity where demand is strongest 5.0 4.0 > Able to flex schedule depending on market 3.0 conditions 2.0 1.0 > Destinatio
Slide 6: Trading update
Trading update easyJet trading update Europe leading the way > Operated 96% of available capacity and flew all available UK Intra EU UK Capacity as a % of FY’19 touching Domestic fleet in Continental Europe in August July 18% 70% 99% > In Europe we will be flying more Domestics in Q4’21 vs August 38
Slide 7: Rationale for the rights issue
Rationale for the rights issue • Help restore easyJet’s balance sheet position to pre-COVID-19 pandemic levels over time Enhancing balance • Enhance the Group's liquidity, and to strengthen its credit ratios sheet strength and resilience • Provide resilience to withstand potential prolonged market c
Slide 8: Strong balance sheet supported liquidity needs
Strong balance sheet supported liquidity needs Net Debt (£m) > Entered COVID-19 with one of the strongest balance 2,046 sheets in European Aviation, a key enabler of additional liquidity > Since the pandemic hit, net debt has increased as a 1,125 result of the increased funding activity > Liquidity
Slide 9: Rights issue and RCF: key terms
Rights issue and RCF: key terms Rights issue – summary Rights issue – key dates > Fully underwritten > Thursday 9 September: Publication of > 31 for 47 at a 35.8% discount to TERP prospectus and launch of rights issue > Expected gross proceeds of approximately £1.2 billion > Monday 13 September (8am
Slide 10: Our strategy
Our strategy
Slide 11: easyJet's strategic initiatives
Easyjet’s strategic initiatives Network Customer Product Strategy Excellence Portfolio Evolution easyJet Cost Reduction Sustainability Holidays Underpinned by our People & Operational and Digital Safety 11
Slide 12: Network strategy – Significant opportunities
Network strategy – Significant opportunities > Prioritise #1 & #2, primary, slot constrained airport positions 1. > Enhance scale and cost leadership Lead in our > Provide a balanced network portfolio across domestic, city and leisure destinations Core Markets > Maintain our country leadership focus
Slide 13: Growth opportunity
growth opportunity % share of capacity in easyJet’s markets1 Significant opportunity to grow vs legacy carriers easyJet Legacy carriers & Tour operators Other including LCC’s > Legacy carriers facing challenges: 181.6m ▪ Focus on long haul Seats flown by legacies on easyJet market pairs ▪ Restructur
Slide 14: Prioritise strengths & returns: contribution per block hour FY'19
prioritise strengths & returns Pre-COVID19 Profitability by base > Focus on higher yielding Decrease capacity / Base Closure bases: Build / maintain capacity ▪ Process continues and builds on the significant changes made in FY’20 Contribution per block hour FY’19 ▪ Continue to build strength in prim
Slide 15: Customer trust built through the pandemic
Customer trust built through the pandemic > Book with confidence: ▪ New Covid-19 Travel Hub on easyjet.com ▪ Self-Service Disruption Management (SSDM) launched - allows customers to quickly self-serve in disruption > Strong Brand with a leading customer proposition ▪ First choice LCC in UK, France,
Slide 16: Product portfolio evolution – driving ancillaries
Product portfolio Evolution – driving ancillaries Delivered Next steps / opportunities Standard Plus Fare Leisure Fare > New fare class, launched in Jan 21 > Launches this month > Includes premium seat, large cabin bag, speedy > Includes standard seat and 15kg hold bag boarding Cabin Bags – Phase 2
Slide 17: easyJet holidays – uniquely positioned
Easyjet holidays – uniquely positioned > Clear road map for £100m+ PBT > Business model ▪ Unrivalled model vs competitors ▪ 20 million customers already using easyJet flights to holiday each year1 ▪ Access to 300m unique visitors to easyjet.com ▪ 95% variable cost base > Consumer choice - market lea
Slide 18: Laser focus on cost
Laser focus on Cost ✓ Cost saving initiatives delivering now and into the future with almost half of FY’21 savings sustainable ✓ Culture of low cost – £0.05 per pax saving worth £5 million On target to ✓ Significant work done across the business already: deliver • c.£500m Crew agreements on seasonal
Slide 19: Continuing to lead on sustainability
Continuing to lead on Sustainability Carbon neutral Sustainable fleet plan > First major international airline to offset all carbon emissions > Aircraft deliveries between FY22 and FY28 on behalf of customers > 72% of EU citizens believe their own behavior makes a difference > 101 Orders in tackling
Slide 20: Accelerate the recovery
Accelerate the recovery Transaction Enables easyJet to build on Delivering the Proceeds will… details strengths recovery Build on primary airport 1. Enhance balance positions and network Grow to pre £1.2bn rights issue pandemic capacity strength > Fully underwritten sheet strength and by 20231 impro
Slide 21: Appendix
Appendix
Slide 22: Rights issue timeline
Rights issue timeline Commencement of Prospectus nil-paid rights trading Results of rights issue published period 9 Sept 13 Sept 27 Sept 28 Sept Last date for Rights issue Ex-rights date acceptance of rights launched issue No shareholder vote required 22
Slide 23: Important notice and disclaimer
THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, REPRODUCTION, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, TO ANY OTHER PERSON OR IN OR INTO OR FROM THE UNITED STATES OF AMERICA AND, SUBJECT TO CERTAIN LIMITE D EXCEPTIONS, AUSTRALIA, CANADA,
Slide 24: Disclaimer (continued)
exercised, resold, pledged, renounced, transferred or delivered, directly or indirectly, into or within the United States, except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act and in compliance with any applicable
Slide 25: Forward-looking statements
the forward-looking statements may not occur or may cause actual results, performance or achievements to differ materially from those expressed by or implied from such forward-looking statements, whether as a result of new information, future events or otherwise. Past performance of the Company cann