Q1 2020 Analyst & investor presentation 21 January 2020 Q1 - PowerPoint PPT Presentation

Q1 2020 Analyst & investor presentation 21 January 2020

Q1 performance – momentum continues 1. Strong revenue trend • Revenue initiatives delivering • Robust demand across Europe, low competitor capacity growth in the market • Upgrade to RPS guidance 2. Underlying cost performance as expected • Delivering on cost programme • No change to full year guidance 3. easyJet holidays • Successful launch 4. Strong operational performance • Improved OTP and CSAT score 2 2

Q1 key stats Change Q1 ‘20 Q1 ’19 Favourable/(adverse) 22.2 21.6 2.8% Passengers (m) Load factor (%) 91.3% 89.7% 1.6ppts 24.3 24.1 1.0% Seats (m) 1,106 1,079 2.6% Average sector length (km) 1,124 1,025 9.7% Passenger revenue (£m) Ancillary revenue (£m) 301 272 10.8% 1,425 1,296 9.9% Total revenue (£m) 58.56 53.89 8.7% Total airline revenue per seat (£) Total airline revenue per seat @ constant currency (£) 58.63 53.89 8.8% (58.40) (56.71) (3.0%) Total airline headline CPS (£) (59.41) (56.71) (2.6%) Total airline headline CPS @ constant currency (£) (45.29) (43.42) (4.3%) Total airline headline CPS, ex-fuel @ constant currency (£) 3 3

Q1 Revenue performance Reported ported RPS S +8.7% .7% RPS PS @ CC +8.8 .8% (£0.07) +5.3% £58.63 £58.56 £2.87 +2.0% £1.08 +1.5% £0.79 £53.89 Q1 2019 Reported Thomas Cook Ancillary Underlying Trading Q1 2020 @ CC FX Q1 2020 Reported Administration 4

Cost performance Q1 2020 Q1 2020 Headline Reported Constant currency 3.0% 2.6% Cost per seat including ing fuel Increase Increase 2.6% 4.3% Cost per seat excluding fuel Increase Increase Offset b by: Increases s driven by: • Lower capacity growth • Continued focus on cost, including Operational Resilience programme • Ongoing (regulatory) inflationary pressure • Up-gauging of fleet, as easyJet continues to move from • Ownership costs A319s to A320s and A321s • Crew pay agreements and retention levels • French strikes 5

Fuel and foreign exchange hedging Fuel requirement US dollar requirement Euro Surplus Six months to 31 March 2020 76% @ $631/MT 74% @ 1.35 75% @ 1.11 Full year ending 30 September 2020 71% @ $654/MT 70% @ 1.35 74% @ 1.11 Full year ending 30 September 2021 51% @ $638/MT 53% @ 1.31 61% @ 1.11 Operating hedges as at 31 December 2019 6

forward bookings H1 2019 H1 2020 91% 90% 85% 82% 75% 74% 58% 57% 56% 55% 38% 38% Q1 Jan Feb Mar Q2 H1 H1 2020 (Oct 2019 to Mar 2020) as at 18 Jan 2020 7

H1 capacity outlook 14.5% H1 FY19 H1 FY20 6.9% 5.4% 3.6% 1.5% 0.5% 0.2% (0.2%) Capacity change total short Competitors on Capacity change easyJet capacity change haul market easyJet markets easyJet markets 8 H1 2020 (Oct 2019 to Mar 2020) as at 10 Jan 2020

Sustainability Background Positive customer reaction • Strategy launched in November to take immediate • Those who have flown since the announcement, action on carbon emissions and are aware of the policy, are 7ppts more • Continued focus on driving efficiency satisfied with their experience than those who are unaware • Reinventing aviation – Airbus, Wright Electric partnerships • Carbon offsetting programme as an interim 11% measure More customers say Progress - Offsetting • Since 19 November we have offset the carbon they will choose emissions from fuel used for all of our flights easyJet in the • We have offset 800,000 tonnes of carbon so far • 9 million easyJet customers taken net zero carbon future* flights 9 *based on those who have flown and are aware that their flight was offset. 9

easyJet holidays - sUCCESSFULLY LAUNCHED • Successful launch on 28 November 2019 • with c700 directly contracted hotels • to over 100 destinations • 85% of customers cite great value, hotel choice and website ease of use as the primary driver of booking • 50% of bookings to directly contracted hotels • Strong demand on flexible dates • c50% of booking outside the traditional 7 or 14 night stay • Performance is in line with expectations - to at least break even in year 10 10

Outlook Items in orange denote updated guidance Capacity (seats flown) FX / Fuel* > H1 c. 1.5% increase > FY: c.£70 million positive movement from > FY c. 3% increase foreign exchange rates on headline PBT > Circa £25m of this positive movement is part of the total fuel bill Revenue per seat at constant currency > H1 revenue per seat performance (excl. easyJet > FY: unit fuel costs £110 million to £170 million holidays): adverse  mid to high single digit increase > Expected total fuel cost c.£1.64 billion > Includes c.£25m investment in carbon offsetting Cost per seat at constant currency > H1 headline CPS excl. fuel (excl.easyJet holidays) H1 2020 0 loss befo fore tax – better than H1 2019  mid single digit increase > FY headline CPS excl. fuel (excl. easyJet holidays): easyJ syJet et holidays ays – at t least st breake eakeven en in 2020  low single digit increase (at normal levels of disruption) 11 * Based on fuel spot price range of $600 - $700. Includes impact of ETS carbon scheme. Based on FX rates USD to GBP 1.33, EUR to GBP 1.18 11

Appendix

Q1 Passenger statistics Octobe ober 2020 2019 Change Passengers (m) 8.8 8.6 2.4% Load Factor 91.6% 90.5% 1.1ppts November ember 2020 2019 Change Passengers (m) 6.2 6.2 (0.3%) Load Factor 90.8% 89.2% 1.6ppts December cember 2020 2019 Change Passengers (m) 7.2 6.8 6.0% Load Factor 91.3% 89.2% 2.1ppts 13 13