Aer Lingus Group plc 2014 Preliminary Results 24 February 2015 1 - PowerPoint PPT Presentation

Aer Lingus Group plc 2014 Preliminary Results 24 February 2015 1

Disclaimer | Forward looking information NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY (IN WHOLE OR IN PART) IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. The Directors of Aer Lingus Group plc accept responsibility for the information contained in this announcement relating to Aer Lingus, the Aer Lingus Group, the Directors of Aer Lingus and members of their immediate families, related trusts and persons connected with them. To the best of the knowledge and belief of the Directors of Aer Lingus (who have taken all reasonable care to ensure that such is the case) the information contained in this announcement is in accordance with the facts and does not omit anything likely to affect the import of such information. The release, publication or distribution of this announcement in or into certain jurisdictions may be restricted by the laws of those jurisdictions. Accordingly, copies of this announcement and all other announcements relating to the combination are not being, and must not be, released, published, mailed or otherwise forwarded, distributed or sent in, into or from any restricted jurisdiction. Persons receiving such announcements (including, without limitation, nominees, trustees and custodians) should observe these restrictions. Failure to do so may constitute a violation of the securities laws of any such jurisdiction. To the fullest extent permitted by applicable law, the companies involved in the combination disclaim any responsibility or liability for the violations of any such restrictions by any person. Under the provisions of Rule 8.3 of the Irish Takeover Rules, if any person is, or becomes, "interested" (directly or indirectly) in 1% or more of any class of "relevant securities" of Aer Lingus, all "dealings" in any "relevant securities" of Aer Lingus (including by means of an option in respect of, or a derivative referenced to, any such "relevant securities") must be publicly disclosed by not later than 3:30 p.m. (Irish time) on the "business day" following the date of the relevant transaction. This requirement will continue until the date on which the Scheme becomes effective or on which the "offer period" otherwise ends. If two or more persons co-operate on the basis of any agreement either express or tacit, either oral or written, to acquire an "interest" in "relevant securities" of Aer Lingus, they will be deemed to be a single person for the purpose of Rule 8.3 of the Irish Takeover Rules. Under the provisions of Rule 8.1 of the Irish Takeover Rules, all "dealings" in "relevant securities" of Aer Lingus by IAG or "relevant securities" of IAG by Aer Lingus, or by any person "acting in concert" with either of them must also be disclosed by no later than 12 noon (Irish time) on the "business day" following the date of the relevant transaction. A disclosure table, giving details of the companies in whose "relevant securities" "dealings" should be disclosed can be found on the Irish Takeover Panel's website at www.irishtakeoverpanel.ie. "Interests in securities" arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an "interest" by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities. Terms in quotation marks are defined in the Irish Takeover Rules, which can be found on the Irish Takeover Panel's website. If you are in any doubt as to whether or not you are required to disclose a "dealing" under Rule 8, please consult the Irish Takeover Panel's website at www.irishtakeoverpanel.ie or contact the Irish Takeover Panel on telephone number +353 1 678 9020; fax number +353 1 678 9289 Forward looking statements This Announcement contains forward-looking statements, which are subject to risks and uncertainties because they relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Forward-looking statements include, but are not limited to, information concerning the Group's possible or assumed future results of operations, business strategies, financing plans, competitive position, potential growth opportunities, potential operating performance improvements, the effects of competition and the effects of future legislation or regulations. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," "plan," "intend," "project," "anticipate," "estimate," "predict," "potential," "continue," "may," "should" or the negative of these terms or similar expressions. Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in these forward-looking statements. You should not place undue reliance on any forward-looking statements. The risk factors included in the Group’s Annual Report could cause the Group's results to differ materially from those expressed in forward- looking statements. There may be other risks and uncertainties that the Company is unable to predict at this time or that the Company currently does not expect to have a material adverse effect on its business. The forward-looking statements referred to in this paragraph apply only as at the date of this Announcement. The Group will not undertake any obligation to release publicly any revision or updates to these forward-looking statements to reflect future events, circumstances, unanticipated events, new information or otherwise except as required by law or by any appropriate regulatory authority. The forward-looking statements in this Announcement do not constitute reports or statements published in compliance with any of Regulations 4 to 9 and 26 of the Transparency (Directive 2004/109/EC) Regulations 2007. The trading results set out are presented in euro rounded to the nearest thousand; therefore discrepancies in the tables between totals and the sum of the amounts listed may occur due to such rounding. 2

2014 preliminary results agenda Introduction Christoph Mueller, Chief Executive Officer (CEO) 2014 trading & financial review Bernard Bot, Chief Financial Officer (CFO) 2014 business highlights Stephen Kavanagh, Chief Planning & Strategy Officer (CSPO) and CEO designate 3

Introduction Christoph Mueller, CEO 4

2014 trading highlights Operating profit up 17.8% to € 72.0 million Operating profit up 17.8% to € 72.0 million Increased profitability Increased profitability Operating margin of 4.6% Operating margin of 4.6% Successful TA expansion with an additional 23.8% capacity deployed Successful TA expansion with an additional 23.8% capacity deployed Capacity growth Capacity growth Tactical off-peak short haul capacity actions to protect margins Tactical off-peak short haul capacity actions to protect margins Total passengers (including Regional) surpassed 11 million in 2014 Total passengers (including Regional) surpassed 11 million in 2014 Passenger growth Passenger growth Total connecting passengers up 2.2% year on year Total connecting passengers up 2.2% year on year Total revenue up 9.2% with all revenue streams driving growth Total revenue up 9.2% with all revenue streams driving growth Revenue growth Revenue growth Long haul revenues up 28.4% Long haul revenues up 28.4% Total revenue per ASK up 1.3%; total fare revenue per seat up 9.4%; long haul Total revenue per ASK up 1.3%; total fare revenue per seat up 9.4%; long haul Unit revenue Unit revenue fare revenue per seat up 7.2% ; short haul fare revenue per seat up 2.5% fare revenue per seat up 7.2% ; short haul fare revenue per seat up 2.5% Retail revenue Retail revenue Retail revenue up 3.0% to € 186.9 million with retail revenue per pax up 1.5% Retail revenue up 3.0% to € 186.9 million with retail revenue per pax up 1.5% Unit costs per ASK increased 1.0% driven by full year ACMI costs in 2014 Unit costs per ASK increased 1.0% driven by full year ACMI costs in 2014 Unit cost performance Unit cost performance without related ASK production without related ASK production Free cash flow € 146.6 million ; 29.9% increase in net cash to € 545.3 million; Free cash flow € 146.6 million ; 29.9% increase in net cash to € 545.3 million; Cash generation Cash generation gross cash of € 935.5 million gross cash of € 935.5 million Increased dividend Increased dividend Dividend to increase from four to five cent per share Dividend to increase from four to five cent per share 5