H1 2019 Results presentation introduction Johan Lundgren - CEO - PowerPoint PPT Presentation

easyJet H1 2019 Results presentation

introduction Johan Lundgren - CEO

Focusing on delivery  H1 performance in line with expectations  Significant focus on H2 delivery • Customer, revenue, operations & cost  Continuing to invest in our strategy • Investing in the network • Winning our customers loyalty • easyJet Holidays, Loyalty, Business making good progress • Investing in value by efficiency • Investing in our people • Underpinned by the efficient use of data FY 2019 PBT expectations unchanged 3 3

Financial review Andrew Findlay - CFO

Key performance indicators H1 2019 H1 2018 Chang ange* e* Seats flown (m) 46.2 40.4 14.5% Passengers (m) 41.6 36.8 13.3% Load factor (%) 90.1% 91.1% (1.0ppt) Average sector length (km) 1,068 1,071 (0.2%) Revenue per seat - reported currency (£) 50.71 54.10 (6.3%) Revenue per seat - constant currency (£) 50.12 54.10 (7.4%) Headline cost per seat incl fuel - reported currency (£) 56.66 54.53 (3.9%) Headline cost per seat incl fuel - constant currency (£) 55.88 54.53 (2.5%) Headline cost per seat excl fuel - reported currency (£) 43.64 43.11 (1.2%) Headline cost per seat excl fuel - constant currency (£) 43.65 43.11 (1.3%) 5 *Favourable/(adverse)

Financial performance H1 2019 9 IFRS pre IFRS H1 2019 H1 2018 Change Impact ct Changes es £ m m £ m m £ m m £ m m £ m Total revenue 2,400 (57) 2,343 2,183 160 Headline costs: Headline costs excluding fuel (2,024) 8 (2,016) (1,740) (276) Fuel (602) 0 (602) (461) (141) Headlin dline profit fit/(lo /(loss ss) ) befo fore tax (226) 6) (49) 9) (275 75) (18) (257 57) Headline loss before tax at constant currency (212) (54) (266) (18) (248) Non-headline items: Sale and leaseback 4 (2) 2 (19) 21 Brexit-related costs (4) 0 (4) (4) - Commercial IT platform 2 (0) 2 - 2 Tegel integration - - - (24) 24 Other 3 - 3 (3) 6 Total loss s before e tax (221) 1) (51) (272 72) (68) (204) 6 *Favourable/(adverse)

Revenue performance Revenue per seat bridge Repo ported ed RPS = (6.3%) 3%) RPS @ cc = (7.4%) %) -1.8% £54.10 10 £0.96 -2.8% £1.54 -2.3% -2.3% +1.3% £51.34 34 £1.22 £0.70 +1.1% £50.71 71 +0.5% £1.22 £0.26 £0.59 £50.12 12 H1 2018 reported Seasonality Monarch exit/ Tegel Ancillary Underlying H1 2019 at CC Impact from H1 2019 at FX H1 2019 reported (including Easter) Ryanair Revenue growth IFRS adoption CC Post IFRS cancellations 7 Note: Underlying market conditions include underlying trading and market capacity growth

costs Headline cost per seat bridge Headl dline e CPS @ cc = (2.5%) %) £56.6 .66 £0.78 Headl dline e CPS ex fuel @ cc = (1.3%) %) £1.15 £0.67 £0.81 £55.88 £0.30 £0.21 £0.43 £55.07 £0.14 £54.53 53 H1 2018 Airports and Crew Ownership Overheads and Navigation Maintenance H1 2019 Fuel H1 2019 P&L FX H1 2019 headline ne ground handling Other Income headline ne headline ne cost headline ne cost per seat cost per seat per seat @ CC cost per @CC before seat fuel varianc nce 8

Impact of IFRS 15&16 on income statement H1 H1 201 2019 Descript iptio ion £m £m IFRS 15: Deferral of revenue to H2 and compensation payments offset against revenue (57) IFRS 15: Reclassification of compensation costs to offset revenue 6 Total tal IFRS 15 pre tax profit impact on H1’19 (51) IFRS 16: Reclassification of maintenance expense (36) IFRS 16: Reduction of leasing expense (88) IFRS 16: Increase in depreciation expense 112 IFRS 16: Increase in interest expense 12 Total tal IFRS 16 pre tax profit impact on H1’19 - Total tal H1’19 pre tax profit impact of new accounting standards* (51) 9 * The P&L impact of IFRS 9 is not material

Impact of fuel & currency H1 2019 9 fuel l impact pact H1 2019 H1 2018 Chang ange* e* Fuel el $ per metric ic tonn nne Market rate 650 620 (30) Effective price 645 547 (98) US dolla lar rate te Market rate 1.29 1.36 7 cents Effective price 1.31 1.39 8 cents Difference between market rate and effective rate 0.02 0.03 Actual cost of fuel £ per metric tonne 493 393 (100) H1 2019 9 curr urren ency impac act t on headline dline PBT* EUR UR CHF USD Othe her Total tal £m £m Revenue 20 7 1 (1) 27 Fuel - - (37) - (37) Headline costs excluding fuel 7 (3) (4) 1 1 Total 27 4 (40) - (9) *Favourable /(adverse) 10

Strong cash generation Cash flow bridge Cash generated from operations (excluding dividends): £581m Investing and financing 11 617 28 121 1,721 721 233 1,37 373 236 1,280 80 465 85 4 8 255 Cash h & Operating loss Depn & amort Net working Other Tax paid Ordinary Cash Ca h & MMDs Sale & Cash Capex Payment of Restricted FX Cash h & MMD’s @ capital operating dividend post t div & tax x leaseback lease liabilities cash, own MMD’s @ 1 Oct 201 018 (FY’18) paid proceeds shares and 31 Mar r 201 019 net interest Liquid uidit ity of £3.7m .7m per 100 seats ts is suppor ported ted by two revolvin olving g credit dit facil cilit itie ies (one ne $500 million lion facilit ility and d one £250 0 millio lion n faci acilit lity) y) and d a busin iness inte terrupt uption ion insur uranc nce polic icy * Includes money market deposits but excludes restricted cash 11

Strong balance sheet 31 March h 31 March h 30 Sept ptember mber £m £m 2019 201 201 2018 2018 201 (Resta tated) ted) (Resta tated) ted) Goodwill and other intangible assets 551 589 546 Property, plant and equipment (excluding RoU assets) 4,286 3,648 4,140 RoU assets under IFRS 16 572 - - Derivative financial instruments 48 106 364 Equity investments 54 - - Other assets (excluding cash and money market deposits) 484 469 539 Unearned revenue (1,726) (1,468) (877) Other liabilities (excluding debt) (1,552) (1,381) (1,875) Capital employed 2,717 1,963 2,837 Cash and money market deposits* 1,280 1,624 1,373 Debt (excluding lease liabilities) (858) (959) (977) Lease liabilities under IFRS 16 (623) - - Net (debt)/ )/cash ash (201) 665 665 396 Net assets 2,516 2,628 3,233 12 * Excludes restricted cash

Fuel and foreign exchange hedging Fuel r requirement US dollar ar requireme ment Euro Surplus lus Six months to 30 September 2019 73% @ $584/MT 77% @ 1.34/£ 74% @ 1.12/£ Full year ending 30 September 2019 72% @ $579/MT 83% @ 1.33/£ 68% @ 1.13/£ Full year ending 30 September 2020 58% @ $660/MT 61% @ 1.36/£ 61% @ 1.11/£ 13 As at 31 March 2019

Utilising flexibility in fleet planning 410 403 Max fleet plan 385 390 367 370 353 craft No of aircra 350 346 332 332 338 338 330 332 332 310 316 316 290 Min fleet plan 283 270 FY2019 FY2020 FY2021 FY2022 FY2023 - Upside cases assume extension of leases and ownership beyond year 16 14 - Downside cases assume sale at 16 years of age

Gross capital expenditure New IFRS Std's c. £1,250m Base c. £1,100m c. £900m c.£900m FY19 FY20 FY21 FY22 15

H2 forward bookings 93% 92% 91% 90% FY18 FY19 78% 75% 72% 72% 56% 54% 52% 52% 34% 34% H1 Apr May Jun Q3 Q4 H2 16 H2 2019 (Apr 2019 to Sep 2019) as at 10 May 2019

H2 capacity outlook 12.8% H2 FY18 H2 FY19 7.0% 5.2% 4.6% 3.6% 2.5% 2.4% -2.0% Capacity change total short Competitors on easyJet capacity change Capacity change Capacity change total short Competitors on easyJet Capacity Change easyJet easyJet capacity change haul market easyJet markets easyJet markets haul Market markets markets 17 H2 2019 (Apr 2019 to Sep 2019) as at 1 May 2019

H2 ea easy syJet et growth 1.4% 7.0% 1.1% 0.9% 1.3% 2.3% Nantes new Tegel Annualisation & Up-gauging Manchester H2’19 capacity base annualisation underlying growth growth 18 H2 2019 (Apr 2019 to Sep 2019)

Outlook FY 2019 headline profit before tax Cost per seat at constant currency > Unchanged PBT expectations, in line with current market > FY headline cost per seat excluding fuel (updated for IFRS consensus # 15): > Down (assuming normal levels of disruption) Capacity (seats flown) FX / Fuel* > H2 c.7% increase > FY: c.£10 million positive movement from > FY c.+10% increase foreign exchange rates on headline PBT > FY: unit fuel costs £25 million to £60 million adverse Revenue per seat at constant currency > H2 revenue per seat performance (updated for IFRS 15): > Expected total fuel cost c.£1.4 billion > Slightly down * Based on fuel spot price range of $600 - $700 includes impact of ETS carbon scheme prices GBP; EUR: 1.15 GBP: USD 1.29 # Internally compiled market consensus as at 15 May 2019 is £435m - Based on the 21 estimates from post 1 st April trading update 19 19

Ceo update Johan Lundgren