Ryanair Holdings Plc · EURONEXT:RYA
Ryanair — Debt Investor Presentation (May 2014)
27 slides from Ryanair's debt investor presentation, May 29, 2014
Slide 1: Debt Road Show Presentation
29 May 2014 Debt Road Show Presentation - Howard Millar CFO & Deputy Chief Executive - Neil Sorahan Finance Director - John O’Flynn Treasury Manager
Slide 2: Europe's Only Ultra Low Cost Carrier
EUROPES ONLY ULTRA LOW COST CARRIER Proven, resilient business model Structural cost advantages deliver Europe’s lowest fares Europe’s No 1, traffic – 84.6m (No.1 or 2 in most markets) Europe’s No 1, coverage – 68 Bases, 186 Airports, 30 countries Europe’s No 1, customer service – On time, fewest lo
Slide 3: Resilient Model – Profitable Growth Through Cycle
RESILIANT MODEL – PROFITABLE GROWTH THROUGH CYCLE 35.2% 37.0% 36.2% 40.4% 35.4% 35.8% 34.5% 32.3% 30.1% 29.0% 1400 23.8% 24.7% 23.5% 22.0% 14.5% 30.0% 1200 10.0% 1000 -10.0% 800 EBITDAR (€m's) -30.0% -50.0% 600 -70.0% EBITDAR Margin 1,083 1,146 1,112 400 786 863 -90.0% 673 733 547 -110.0% 200 473 42
Slide 4: Europe's Lowest Unit Costs (Ex Fuel)
EUROPE’S LOWEST UNIT COSTS (EX FUEL) RYA EZY NOR AB1 LUV Spirit Staff €6 €9 €15 €17 €35 €18 Airports & handling €8 €21 €14 €27 €8 €6 Route charges €6 €6 €8 €8 €0 €0 Ownership & maintenance €7 €9 €21 €29 €16 €18 Sales and marketing & other €2 €7 €4 €26 €15 €15 Cost per customer (ex fuel) €29 €52 €62
Slide 5: Europe's Lowest Fares
EUROPE’S LOWEST FARES Avg. Fare % > Ryanair LOW Ryanair €46 (-4%) MEDIUM Norwegian €83 + 80% easyJet €84 + 83% Aer Lingus (s/h) €93 + 102% Air Berlin €121 + 163% HIGH Alitalia €148 + 222% Lufthansa €235 + 411% IAG €242 + 426% AF-KLM €300 + 552% Source: Latest company annual reports. LOW FARES. MADE
Slide 6: Europe's No.1 – Traffic
EUROPE’S NO.1 – TRAFFIC Customers (m’s) 112.0 110 104.0 100 96.0 90 89.0 84.6 81.7 80 70 61 62 60 54 52 50 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2014 Ryanair Growth Projections Source: Latest traffic stats from company websites (inter European short haul only) for 12 mths to Mar14 . LOW FARES.
Slide 7: Strong Market Positions
STRONG MARKET POSITIONS Capacity (m’s ) No. 1 No. 2 No. 3 RYA Share UK (115) easyJet IAG 13% Germany (112) Luft Air Berlin 4% Spain (103) IAG Vueling 18% Italy (84) Alitalia easyJet 21% France (73) AF- KLM easyJet 6% Portugal (20) TAP easyJet 13% Belgium (17) SN Brussels Jetairfly 21% Ireland (16) A
Slide 8: Europe's No.1 – Coverage
EUROPE’S NO.1 – COVERAGE LOW FARES. MADE SIMPLE. © This presentation is subject to copyright and may not be copied or used without the express prior consent of Ryanair 8
Slide 9: Customer Experience Improving
CUSTOMER EXPERIENCE IMPROVING RECAPTCHA scrapped for individuals – Oct 13 24hr grace period to correct minor booking errors – Nov 13 Quiet flights (early AM, late PM) – Nov 13 2nd free small carry on bag – Dec 13 Boarding card reissue & bag fees cut – Dec 13 New Groups & Corporate Travel Department
Slide 10: Digital Experience Improving
DIGITAL EXPERIENCE IMPROVING Simpler website (17 to 5 clicks) – Nov 13 “My Ryanair”, customer registration – Dec 13 New website including “Fare Finder” feature, great response – Mar 14 GDS partnership (Galileo/Worldspan platform) for business agents – April 14 New mobile app for smart phones & table
Slide 11: Forward Bookings & Load Factor Rising
FORWARD BOOKINGS & LOAD FACTOR RISING Load Factor Rising Forward Bookings (i) Prior Year Current Year Snapshot at 1st April NOV 80% 81% APR +5% DEC 81% 81% MAY +7% JAN 71% 71% JUN +7% FEB 77% 78% JUL +6% MAR 79% 80% AUG +6% APR 81% 84% (ii) SEP +3% (i) Stronger forward bookings should lead to 2% Loa
Slide 12: Low Cost 180 Aircraft Order
LOW COST 180 AIRCRAFT ORDER All Boeing 737-800NG aircraft Maintains cost leadership and fleet commonality USD pricing “not dissimilar” to previous 2005 order. EUR/USD rate better. Provides passenger growth to c. 110m by FY19 Maintains young fleet – average age 5 years EU flags restructuring - create
Slide 13: Fleet and Traffic Growth to FY19
FLEET AND TRAFFIC GROWTH TO FY19 Summer Full Year Traffic Peak Aircraft Traffic (m’s) Growth Summer 13 303 81.7 + 3% Summer 14 304 84.6 + 4% Summer 15 318 89.0 + 5% Summer 16 349 96.0 + 8% Summer 17 388 104.0 + 8% Summer 18 426 112.0 + 8% BBB+ rating from S&P & Fitch assists low cost a/c financing L
Slide 14: Full Year Results
FULL YEAR RESULTS Mar 13 Mar 14 Traffic 79.3m 81.7m +3% Load Factor 82% 83% +1% Average Fare (includes bag) €48 €46 -4% Revenue Per Passenger €62 €62 0% Revenue €4,884m €5,037m +3% Profit after Tax €569m €523m -8% LOW FARES. MADE SIMPLE. © This presentation is subject to copyright and may not be cop
Slide 15: Full Year Balance Sheet
FULL YEAR BALANCE SHEET Mar 13 Mar 14 Aircraft (includes depreciation) €5,384m €5,585m Cash €3,559m €3,242m Net Cash Total Net Cash €8,943m €8,827m €158m €61m Liabilities €2,172m €2,457m After €482m Buybacks* Debt €3,498m €3,084m Shareholder Funds €3,273m €3,286m Total €8,943m €8,827m * Future share
Slide 16: Industry Leading Cash Generation & Liquidity
INDUSTRY LEADING CASH GENERATION & LIQUIDITY Consistently Strong EBITDAR Margins Results in Industry Leading Liquidity 80.0% 79.0% 72.0% 1400 23.8% 24.7% 23.5% 22.0% 3600 64.0% 30.0% 1200 3100 10.0% 50.0% 1000 -10.0% 2600 -30.0% 2100 0.0% 800 -50.0% 3,481 3,534 600 1,146 1600 -70.0% 2,898 3,242 1,08
Slide 17: Conservative Financial Policies
CONSERVATIVE FINANCIAL POLICIES Liquidity Management Capital Management Significant cash balances (> €3bn) Strong positive working capital - No liquidity lines required - Very low cost base - Ample unsecured hedging lines - Customers pay in advance - Cash in short term deposits (≤12 months) - Pre de
Slide 18: World's Highest Rated Airline
WORLDS HIGHEST RATED AIRLINE BBB+ corporate rating from S&P & Fitch – Worlds highest rated airline – Stable outlooks – “a-” anchor (S&P), notched due to possible CAPEX & shareholder returns – Industry leading liquidity, cost base & cash generation – BBB+ note rating expected Ratings provide direct a
Slide 19: Debut Issuance – Terms and Conditions
DEBUT ISSUANCE – TERMS AND CONDITIONS Issuer Ryanair Limited Guarantor Ryanair Holdings PLC Issuer Ratings BBB+/BBB+ Expected Note Rating BBB+/BBB+ Status Senior, unsecured Currency EUR Tenor 7 years Size Benchmark Use of Proceeds GCP Denomination €100K + €1k Governing Law English Listing Dublin Cov
Slide 20: Fleet Valuation & Secured Debt Coverage
FLEET VALUATION & SECURED DEBT COVERAGE €10.1bn €0.7bn Other Assets €8.8bn €0.7bn Other Assets €3.2bn Cash €3.2bn Cash Market Value of Fleet €3.0bn Book Value of Fleet €6.2bn €4.9bn Secured Debt €3.0bn Total Assets (Book Value) Total Assets (Fair Value) Secured Debt Total Assets (Book Value) / Secur
Slide 21: Forecast Debt Maturity Schedule
FORECAST DEBT MATURITY SCHEDULE Amortisation of Existing Secured Debt Balances (€m’s) 3,084 2,703 2,263 1,825 1,389 980 709 311 YE Mar-14 YE Mar-15 YE Mar-16 YE Mar-17 YE Mar-18 YE Mar-19 YE Mar-20 YE Mar-21 YE Mar-22 YE Mar-23 YE Mar-24 Secured Debt Repayment Schedule (€m’s) 440 439 436 409 399 380
Slide 22: FY15 Outlook
FY15 OUTLOOK Load factor up 2% to 85% Traffic up 4% to 84.6m Unit costs flat - Ex fuel up 5% (airports & handling, sales & marketing, winter ownership) - Fuel 90% hedged, €70m saving (less de-icing) Improving customer service & digital experience driving demand Yield increase up to 2%, €47 - H1 traf
Slide 23: Summary
SUMMARY Proven, resilient business model – unique structural cost advantages Lowest costs and fares in Europe Industry leading liquidity and cash generation No 1 or 2 share in major EU markets Fwd bookings & load factors ahead of 2013 Worlds highest rated airline – Provides access to low cost capita
Slide 24: Appendices
RYANAIR LOW FARES. MADE SIMPLE. ‘ Appendices
Slide 25: Network
NETWORK 68 bases 186 destinations 30 countries 1,600+ routes 1,600+ daily dep’s 84.6m c’mers p.a. 297 a/c – all 737-800’s Newest fleet (5 yrs) 180 a/c order LOW FARES. MADE SIMPLE. © This presentation is subject to copyright and may not be copied or used without the express prior consent of Ryanair
Slide 26: Fuel & Currency Hedging Position
FUEL & CURRENCY HEDGING POSITION FY 15 Fuel 90% hedged - $950pmt. USD 1.34 (approx. €70m saving) Cost/Tonne FY14 FY15 Change Q1 $965 (Act) $946 (90%) -2% Q2 $965 (Act) $942 (90%) -2% Q3 $990 (Act) $960 (90%) -3% Q4 $985 (Act) $960 (90%) -3% H1 16 Fuel 22% hedged - $940pmt . USD 1.38 Cost/Tonne FY15
Slide 27: Disclaimer
DISCLAIMER THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY FOR USE AT AN INVESTOR PRESENTATION AND IS PROVIDED AS INFORMATION ONLY. THIS PRESENTATION DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO AN INVESTOR. BY ATTENDING THE PRESEN
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