q Analyst & investor presentation Thursday 20 th July 2017

Transcription

1 q Analyst & investor presentation Thursday 20 th July 2017

2 easyjet Europe Following a rigorous and comprehensive year-long process Austria was chosen as the country for easyjet Europe Austro Control is a good fit for easyjet, setting high standards of safety and compliance and embracing EASA's move towards performance-based regulation easyjet Europe will operate easyjet s European network after the UK leaves the EU The people and aircraft that will fly for easyjet Europe are already based in EU27 countries and our people will retain their current local contracts easyjet Europe will be fully compliant with all Austrian and European rules and regulations 2 2

3 Building momentum Network 9.5% growth in Q3 capacity; strengthening our market positions Improving underlying revenue trend Cost Underlying cost performance is strong and continues to be in line with guidance Customer Investment in resilience is delivering better OTP figures in Q3 Gatwick North terminal consolidation delivering improved CSAT figures Digital and data Balance Sheet Continuous development of differentiated proposition New website driving increased conversion and attachment rates Investment grade balance sheet provides flexibility and secures lower funding costs S&P reiterate BBB+ rating 3 3

4 Third quarter - Key Financial Information Q3 17 Q3 16 (restated) Change Passengers (m) % Load factor (%) ppts Seats (m) % Seat revenue ( m) 1,363 1, % Non-seat revenue ( m) % Total revenue ( m) 1,387 1, % Total revenue per seat ( ) % Total revenue per constant currency ( ) % Total headline cost ( m) (1,257) (1,137) (10.6%) Total headline CPS ( ) (52.36) (51.83) (1.0%) Total headline constant currency ( ) (48.98) (51.83) 5.5% Total headline CPS, constant currency ( ) (38.23) (37.63) (1.6%) 4 4

5 9.5% seat growth in Q3 Strong revenue performance Growth on easyjet city pairs Location easyjet growth Competitor growth UK 9.8% 5.4% Switzerland 12.7% 13.6% France 9.1% 1.3% Schiphol 8.4% 9.8% Venice 10.9% (7.2%) Berlin 6.0% 13.7% Barcelona 5.1% 3.2% Lisbon 5.1% 12.9% Source: OAG 5 5

6 Headline costs in line with expectations Headline Cost per seat including fuel Cost per seat excluding fuel Q Reported 1.0% Increase 7.6% Increase Q Constant currency 5.5% Decrease 1.6% Increase Increases driven by: Investment in resilience Wet leases Schedule resilience Crew schedule Inflation FX impact Offset by: Robust management action on costs: Airport deals Engineering and maintenance efficiency Up-gauging of fleet easyjet Lean is on track to deliver Lean savings of c. 80m * Up-gauging to 186-seat A320 NEO aircraft compared to 156-seat A319 CEO, based on fuel price quoted in the original plan 6 6

7 Building momentum in data & digital 21.5m app downloads +2ppt +13% Bag penetration attachment rate ecommerce bookings through mobile, app & tablet +6.5ppt +17% Seat purchase attachment rate Non-seat revenue booked through mobile app 7 7

8 Investing in resilience - Driving operational improvements Resilience investment in summer 2017 Aircraft spare parts inventory Invested in additional inventory of critical spare parts that typically cause operational interruption Improved operational / customer statistics Q vs Q Total Sectors +8% Two rapid response aircraft and teams Rapid response aircraft and engineering available in Luton and now Malpensa Schedule / crew resilience Schedule firebreaks / standby aircraft availability / investment in wet lease aircraft Cabin maintenance Additional capability and resources to perform preventative maintenance on our cabins Network OTP LGW OTP +16ppts LGW June 17 OTP vs June 16 OTP +4ppts +7ppts Q3 delays greater than 3hrs (vs Q3 2016) -25% 8 8

9 Forward bookings % Seats sold * 92% 93% 92% 93% Last Year This Year 78% 80% 65% 66% 65% 67% 37% 42% Q3 Jul Aug Sep Q4 H2 * H2 (1 April 2017 to 30 September 2017) As at

10 Fuel and foreign exchange hedging Fuel requirement US dollar requirement Euro surplus CHF surplus Three months ending 30 September % at $583/ metric tonne 82% at $1.45/ 90% at 1.37/ 86% at CHF1.35/ Full year ending 30 September % at $611/ metric tonne 86% at $1.49/ 84% at 1.35/ 95% at CHF1.39/ Full year ending 30 September % at $514/ metric tonne 74% at $1.36/ 68% at 1.24/ 68% at CHF1.31/ As at 30 June

11 Outlook in 2017 Capacity (seats flown) H2 c.+8.5% (before disruption) FY c.+8.5% (before disruption) Revenue per seat at constant currency H2 revenue per seat: down c.2% Each 1ppt of Q4 RPS worth c. 20m PBT Headline cost per seat at constant currency FY headline cost per seat excluding fuel: up c.1% (assuming normal levels of disruption) FX H2: c. 20 million adverse movement from foreign exchange rates FY: c. 100 million adverse movement from foreign exchange rates Fuel FY: unit fuel costs 230 million to 245 million favourable Expected total fuel cost 1,050 million 2017 PBT: 2017 headline PBT guidance range of 380 million to 420 million Rates at 1 July 2017 /USD: /EUR: Unit fuel guidance based on Jet fuel trading range of $450/ metric tonne to $520/ metric tonne 11 11

12 Summary building momentum Purposeful and disciplined growth continues to strengthen our market positions Strong underlying cost control, while investment in resilience delivering results Continuing product innovation generating revenues easyjet Europe European AOC set up with first aircraft flown easyjet s strengths supporting a building momentum: Network, customer focus, cost control, strong balance sheet, financial and fleet flexibility 12 12

13 Q & A

14 Disclaimer This communication is directed only at (i) persons having professional experience in matters relating to investments who fall within the definition of investment professionals in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001; or (ii) high net worth bodies corporate, unincorporated associations and partnerships and trustees of high value trusts as described in Article 49(2) of the Financial Services and Markets Act 2000 (Financial Promotion) Order Persons within the United Kingdom who receive this communication (other than those falling within (i) and (ii) above) should not rely on or act upon the contents of this communication. Nothing in this presentation is intended to constitute an invitation or inducement to engage in investment activity for the purposes of the prohibition on financial promotion contained in the Financial Services and Markets Act This presentation has been furnished to you solely for information and may not be reproduced, redistributed or passed on to any other person, nor may it be published in whole or in part, for any other purpose. This presentation does not constitute or form part of, and should not be construed as, an offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities of easyjet plc ( easyjet ) in any jurisdiction nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. This presentation does not constitute a recommendation regarding the securities of easyjet. Without limitation to the foregoing, these materials do not constitute an offer of securities for sale in the United States. Securities may not be offered or sold into the United States absent registration under the US Securities Act of 1933 or an exemption there from. easyjet has not verified any of the information set out in this presentation. Without prejudice to the foregoing, neither easyjet nor its associates nor any officer, director, employee or representative of any of them accepts any liability whatsoever for any loss however arising, directly or indirectly, from any reliance on this presentation or its contents. This presentation is not being issued, and is not for distribution in, the United States (with certain limited exceptions in accordance with the US Securities Act of 1933) or in any jurisdiction where such distribution is unlawful and is not for distribution to publications with a general circulation in the United States. By attending or reading this presentation you agree to be bound by the foregoing limitations