Q1 FY 14 IMS Analyst & Investor presentation. 3 months to 31 December 2013

Transcription

1 Q1 FY 14 IMS Analyst & Investor presentation 3 months to 31 December January

2 Strategy continues to deliver 1. Drive demand, conversion and yields across Europe Passenger numbers up by 4.2%; load factors remain high at 88.7% Revenue per seat up by 1.4% (1) 2. Maintain cost advantage Cost per seat (excluding fuel) increase of 1.2% (1) Operational excellence delivered in challenging environment 3. Build strong number 1 and 2 network positions New bases in Hamburg and Naples opening in spring Increasing capacity at Rome Fiumicino 4. Disciplined use of capital Focus on network returns (1) At constant currency 2

3 Revenue performance Q1 14 Q1 13 Change Passengers (m) % Load factor (%) 88.7% 88.6% 0.1ppt Seats (m) % Average sector length (km) 1,089 1, % Total revenue ( m) % Total revenue per seat ( ) constant currency ( ) % 3

4 Revenue performance on track Q1 13/14 Q1 12/13 cc Seat revenue ( m) % 5.5% per seat ( ) % 1.3% Non-seat revenue ( m) % 12.7% per seat ( ) % 8.2% Seat revenue Careful management of capacity Strong allocated seating performance Simplification of fees and charges generation easyjet campaign Strong year on year comparators especially in UK Challenging competitive environment incl. UK - beach Disruption Egypt restrictions on flying 4

5 Maintain cost advantage Q1 FY 13 Reported Constant currency Cost per seat excluding fuel Cost performance: 3.0% increase 1.2% increase / Increased A320 mix easyjet lean Strong operational performance: improved OTP YOY despite events Airports charges: slowing in rate of increase in charges at regulated airports Maintenance: ageing fleet & increased proportion of leased aircraft Disruption events: Gatwick incidents; ATC strikes in Italy; ATC issues in UK 5

6 Hedging update Fuel requirement US Dollar requirement Euro surplus Six months to 31 March % 85% 77% Average rate $991 m/t $ Full year ending 30 September % 84% 73% Average rate $982 m/t $ Full year ending 30 September % 65% 55% Average rate $951 m/t $ Sensitivities FY14 $10 per tonne movement in the price of jet fuel will impact the full year pre-tax result by +/-$4.0 million 1 cent movement in the :$ will impact the full year pre-tax result by +/- 0.6 million 1 euro cent movement will impact the full year pre-tax result by +/- 1.3 million As at

7 Forward bookings % Seats sold * 89% 89% Winter 12/13 Winter 13/14 74% 74% Q1 Jan Feb Mar H1 Easter 2013: 31 March Easter 2014: 20 April H1 (Oct 13 to Mar 14) * As at

8 Outlook Capacity (seats flown) H1: c.+3.5% (before disruption) FY: c.+5.0% (before disruption) Revenue per seat (constant currency) H1: very slightly up (assuming normal disruption levels) Cost per seat ex fuel (constant currency) H1: c.+1.5% (assuming normal disruption levels) FY: c.+1.5% to +2% (assuming normal disruption levels) FX H1: broadly neutral movement in foreign exchange rates (1) FY: broadly neutral movement in foreign exchange rates (1) Fuel H1: unit fuel cost to be up to 15 million adverse (2,3) FY: unit fuel cost to be up to 40 million adverse (2,3) First half result First half loss is expected to be between 70 million and 90 million (assuming normal levels of disruption) Last year Easter fell on 31 March resulting in 25 million additional revenue in the first half of In this financial year Easter will fall in April easyjet s strong customer focus and tight cost control ensures that it is well positioned to deliver sustainable growth and returns for our shareholders (1) Based on spot rates:, US $ to sterling , euro to sterling Jet cif $980 per metric tonne as at noon on (2) Assuming fuel remains between $950MT to $1,050/MT trading range (3) Unit fuel calculated as the difference between latest estimate of FY 14 fuel costs less FY 13 fuel cost per seat multiplied by FY 14 seat capacity 8

9 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. 9