Wizz Air Holdings Plc · LSE:WIZZ
Wizz Air — Q3 FY19 Earnings Presentation
18 slides from Wizz Air's earnings presentation
Slide 1: Q3 FY19 Results
Q3 FY19 RESULTS
Slide 2: Delivered +15% passenger growth and +6% unit revenue increase to help offset higher fuel prices
Q3 FY19 | Delivered +15% passenger growth and +6% unit revenue increase to help offset higher fuel prices Passenger growth +15%, Revenue growth +21%, Load factor +2ppt Q3 unit revenues per ASK +6% (RpS +8%) Successful introduction of new cabin bag policy Network and base expansion continued (53 new
Slide 3: #1 LCC in CEE
Q3 FY19 | #1 LCC in CEE Passengers 8.1m Aircraft1 106 Airports 144 Bases 25 Employees 4,400+ Countries 44 53 Source: Company Information Note 1: Fleet as at 31 Dec 2018 vs. 31 Dec 2017 Q3 FY19 | PAGE 3
Slide 4: Improving Operational Metrics
Q3 FY19 | Improving Operational Metrics Cancellations On Time Performance 225 79.7% 80.4% 77.5% 156 74.5% 147 70.0% 104 79 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY18 FY19 FY18 FY19 Source: Company Information Q3 FY19 | PAGE 4
Slide 5: Summer 2019 Growth
WIZZ| Summer 2019 Growth Increasing Frequencies Join Existing Airports New Airports + 36% + 52% + 12% + 104 NEW ROUTES Non-UK 85 UK 19 Source: Company Information Q3 FY19 | PAGE 5
Slide 6: Important Achievements & Developments
Q3 FY19 | Important Achievements & Developments Inauguration of Wizz Air’s state of the art Wizz UK route pilot and cabin crew training centre licence received Awarded highest 7-star safety ranking AirlineRatings.com Q3 FY19 | PAGE 6
Slide 7: Record Revenues & Unit Revenue Uplift on 15% Pax Growth
Q3 FY19 | Record Revenues & Unit Revenue Uplift on 15% Pax Growth Seat Group Results Q3 FY19 Q3 FY18 Change Growth + 12.3 % Revenue € 512.7 m 422.9 +21.2% Stage EBITDAR € 106.3 m 104.2 +2.0% + 2.4 % Length EBITDAR margin 20.7 % 24.4% (4.0)ppt ASK + 15.0 % Growth Net profit € 1.7 m 14.0 (87.6%) Load
Slide 8: Strong Revenue Growth
Q3 FY19 | Strong Revenue Growth Revenue Growth (€m) +21.2 % Ticket per Pax1 + 4.8 % 512.7 Ancillary per Pax1 + 6.8 % Total Fare per Pax1 + 5.7 % 422.9 RASK1 + 5.6 % 221.5 +22.3% 181.1 Revenue Drivers - High passenger growth - Higher load factor 291.1 +20.4% - Stimulating traffic 241.7 - Strong value
Slide 9: Disciplined Cost Management To Contain Pressure Points
Q3 FY19 | Disciplined Cost Management To Contain Pressure Points Q3 FY19 CASK 1 CASK € cent Q3 FY19 Q3 FY18 Change € cent Fuel 1.15 0.94 0.21 Fuel CASK 1.15 cent Staff costs 0.35 0.29 0.06 Ex-Fuel CASK Distribution & marketing 0.06 0.07 (0.01) 2.39 cent Maintenance, materials & 0.20 0.19 0.01 repair
Slide 10: Cost Discipline
Q3 FY19 | Cost Discipline CASK and ex-fuel CASK development 1 3.88 3.72 3.62 3.53 3.42 3.15 3.19 3.23 Q3 Headwinds 1.58 1.48 1.36 1.15 1.15 - Higher fuel prices 0.90 0.93 0.94 - Crew salary inflation - Temporary drop in utilisation 2.29 2.25 2.27 2.27 2.25 2.26 2.29 2.39 Q3 Tailwinds - Larger aircra
Slide 11: A321 NEO – Real Game Changer
Q3 FY19 | A321 NEO – Real Game Changer A321 the most efficient narrow body passenger aircraft A321 offers the lowest fuel burn, emissions and noise footprint in its class, making Wizz Air one of the GREENEST AIRLINES PW1100G-JM engines deliver at least 16% fuel burn advantage Lower operating costs 2
Slide 12: Strong Ancillary Recovery in H2
Q3 FY19 | Strong Ancillary Recovery in H2 Ancillary Revenue per pax (€)1 YoY Change Ancillary Revenue per pax (€)1 Q4 Tracking + 1.7 25.4 27.1 4.0 19.9 1.5 1.7 19.0 +0.9 0.8 -0.7 -1.5 -2.4 -2.9 6.4 7.2 +0.8 Q3 FY18 Q3 FY19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Baggage Value-Add F18 F19 Source: Company Information
Slide 13: Balance Sheet Strength
Q3 FY19 | Balance Sheet Strength +12.2% 1,279 1,144 186 Investment grade balance sheet 169 Strong cash generation 1,094 975 Maintaining or lowering leverage Multiple aircraft financing options Q3 FY18 Q3 FY19 Free Cash €m Restricted Cash €m Source: Unaudited company information to 31 December 2018 Q
Slide 14: FY 2019 Net Profit Guidance
WIZZ | FY 2019 Net Profit Guidance Guidance Capacity growth (ASKs) +17 % Average stage length Modest increase Load Factor +1 ppt Fuel CASK +19 % Ex-fuel CASK -1 % Total CASK +5 % Revenue per ASK +2.5 % Effective tax rate 3% Net profit €270 – €300 million Source: Company Information Q3 FY19 | PAGE 14
Slide 15: Q3 FY19 | PAGE 15
Q3 FY19 | PAGE 15
Slide 16: Disclaimer
WIZZ | 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
Slide 17: Fleet Plan
WIZZ | Fleet Plan Source: Company Information as at October 2018 Q3 FY19 | PAGE 17 Note: figures reflect 24 May 2018 status
Slide 18: Hedge Programme
HEDGE PROGRAMME EUR/USD EUR/GBP Jet Fuel 82% HEDGE 62% 65% 55% 53% COVERAGE 35% FY19 FY20 FY19 FY20 FY19 FY20 3 months 12 months 3 months 3 months 3 months 12 months Capped rate $1.24 $1.24 £0.92 £0.92 $672 $700 Floor rate $1.19 $1.19 £0.88 £0.88 $618 $639 Sensitivities (before hedges) for the remai