analyst and investor presentation Tuesday 26 January 2016 Q1 - PowerPoint PPT Presentation

Q1 2016 analyst and investor presentation Tuesday 26 January 2016

Q1 performance – Overview 1. Resilient commercial performance • Robust demand environment drives strong start to the quarter • Impact of Sharm El-Sheikh and Paris on load factor and yield • Bookings recovering to normal levels 2. Improving cost trajectory Q1 cost per seat excluding fuel better than expected: +1.3% 1 • • easyJet lean continues to deliver - £16million in the quarter • Making good progress on cost focus initiatives 3. Continuing to deliver successful strategy • Invest and develop network – capacity growth of 7% • Commercial initiatives – Loyalty, Digital, Business • Solid Operational performance Footer box on intersect of lines line h=8.03 9 and v=8.75 with font 10pt Arial not bold Gatwick operations continuing to improve – OTP +15ppts Q1 ‘16 vs Q4 ‘15 o Delivering higher customer satisfaction – across every category o 2 2 1 At constant currency 2

Trading in Q1 Q1 ‘16 Q1 ’15 Change 16.1 14.9 1.2 Passengers (m) 90.3 89.7 0.6ppt Load factor (%) 17.8 16.6 1.2 Seats (m) 1,072 1,089 (17) Average sector length (km) 913.2 915.8 (2.6) Seat revenue (£m) 16.3 14.7 1.6 Non-seat revenue (£m) 929.5 930.5 (1.0) Total revenue (£m) 52.28 56.16 (3.88) Total revenue per seat (£) 54.07 56.16 (2.09) @ constant currency (£) Footer box on intersect of lines line h=8.03 9 and v=8.75 with font 10pt Arial not bold RPS @ constant currency (%) (3.7) 3 3 3

Trading / demand recovering, delayed yield improvement • Strong start to the quarter December load factor • Underlying trading in line with expectations, reflecting higher capacity and low fuel environment Load factor (% booked) • Impact of Sharm El-Sheikh and Paris attacks in Oct/Nov • Bookings recovering • Yield typically lags load factors – expected impact on second quarter Footer box on intersect of lines line h=8.03 9 and v=8.75 with font 10pt Arial not bold Week 1 Week 2 Week 3 Week 4 Week 5 4 4 4

Renewed focus cost delivering early results Q1 2016 Q1 2016 Reported Constant currency 6.2% 3.7% Cost per seat incl clud uding ng fuel Decrease Decrease 2.3% 1.3% Cost per seat excluding fuel Decrease Increase Offse fset t by: Increa eases driv iven n by: • Robust management action on costs: • Regulated airport charges • Airport savings, driven by discounts on • Disruption costs additional passenger volumes • Engineering and maintenance savings, • Navigation charges such as the components supply contract • Savings in overhead costs • Up-gauging of fleet as easyJet continues Impr prov ovemen ment vs. guida danc nce: to move from A319s to A320s (c.10% cost • Lower levels of de-icing than expected per seat benefit) Footer box on intersect of lines line h=8.03 9 and v=8.75 with font 10pt Arial not bold • Additional savings from accelerated Lean • easyJet Lean delivered £16 million of sustainable programme – early impact of management savings in the quarter action • Improvement in effective post hedged fuel price 5 5 5

Improving operational performance easyJet network OTP 100% 90% 82% 80% 80% 70% 60% 50% 40% 2010 2011 2012 2013 2014 2015 Q1 2016 CSAT improving Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Completely/Very satisfied Footer box on intersect of lines line h=8.03 9 and v=8.75 with font 10pt Arial not bold BOOKING CHECK-IN BAG DROP QUEUEING BOARDING IN FLIGHT ARRIVALS PUNCTUALITY ONLINE TRHOUGH EXPERIENCE SECURITY 6 6 6

Disciplined capacity investment in Q1 7% capacity growth during Q1 United Kingdom c. +8% Netherlands c. +24% France c. +6% Germany c. +11% Spain c. +4% Switzerland c. +9% Portugal c. +19% Italy c. +5% Footer box on intersect of lines line h=8.03 9 and v=8.75 with font 10pt Arial not bold Furt urthe her investm tmen ent t plann anned d for or FY 2016 • New bases being opened in Venice and Barcelona in February. Additional aircraft to Naples and Milan Malpensa. 7 7 Source : OAG, 7

Hedging update Euro Swiss Franc Fuel US Dollar requirement requirement Surplus surplus Half year ending 31 March 2016 87% 89% 79% 72% $846 metric / Average rate $1.62 € 1.20 CHF1.46 tonne Full year ending 30 September 2016 86% 84% 84% 70% $823 metric / Average rate $1.62 € 1.23 CHF1.46 tonne Full year ending 30 September 2017 71% 66% 64% 57% $643 metric / Average rate $1.54 € 1.33 CHF1.43 tonne Sensitivities FY’16 Sensitivities FY’17 • $10 per tonne movement in the price of jet fuel will • $10 per tonne movement in the price of jet fuel will impact the full year pre-tax result by +/-$2.9 million impact the full year pre-tax result by +/- $6.3million • 1 dollar cent movement will impact the full year pre- • 1 dollar cent movement will impact the full year pre- tax result by +/- £1.4 million tax result by +/- £2.8 million Footer box on intersect of lines line h=8.03 9 and v=8.75 with font 10pt Arial not bold • 1 euro cent movement will impact the full year pre-tax • 1 euro cent movement will impact the full year pre-tax result by +/- £0.6 million result by +/- £1.6 million • 1 CHF cent movement will impact the full year pre-tax • 1 CHF cent movement will impact the full year pre-tax result by +/- £0.4 million result by +/- £0.4 million As at 25-01-16 8 8 8

Forward bookings % Seats sold * 90% 90% Winter '15 Winter '16 84% 83% 75% 75% 60% 59% 38% 38% Footer box on intersect of lines line h=8.03 9 and v=8.75 with font 10pt Arial not bold Q1 Jan Feb Mar H1 H1 (1 Oct 2015 to 31 March 2016) 9 9 As at 25-01-16 9

Outlook Full year profit it before tax consensus • In line with current market expectations Capaci city y (seats s flown) • H1 c.+8% (before disruption) • FY c.+7% (before disruption) Revenue a and Cost per seat at constant currency • Revenue per seat: mid-single digit decline in Q2 • H1 cost per seat excluding fuel: +1.0% (assuming normal levels of disruption) • FY cost per seat excluding fuel: flat to up 1.0% (assuming normal levels of disruption) FX FX • H1: c.£25 million adverse movement from foreign exchange rates • FY: c.£50 million adverse movement from foreign exchange rates Fuel Footer box on intersect of lines line h=8.03 9 and v=8.75 with font 10pt Arial not bold • H1: unit fuel costs £75 million to £85 million favourable • FY: unit fuel costs £165 million to £180 million favourable Rates at 25 January 2016 £/USD: 1.4250; £/EUR: 1.3169 10 10 Unit fuel guidance based on Jet fuel trading range of $350 / metric tonne to $450 / metric tonne 10

Summary • Resilient commercial performance • Strong cost performance as renewed focus delivers early benefits • Continuing to invest in growth opportunities across our core markets • Pipeline of revenue and cost initiatives to continue to drive returns • Outlook for FY 2016 in line with market expectations Footer box on intersect of lines line h=8.03 9 and v=8.75 with font 10pt Arial not bold easyJet remains well placed to grow revenue, profits and dividends this year 11 11 11

Q & A