Ryanair Holdings PLC · EURONEXT:RYA
Ryanair — FY2017 Earnings Presentation
21 slides from Ryanair's earnings presentation, May 2017
Slide 1: FY Mar 17 Results
“RYANAIR LOW FARES. MADE SIMPLE. FY Mar 17 Results
Slide 2: Europe's Favourite Airline
Eur op e’s Favouri t e Air line Lowest fare/lowest cost carrier – gap widens No. 1, Traffic – FY18 130m (+8%) No. 1, Cover – 86 Bases/207 apts/427 a/c No. 1, Service – No. 1 on-time – “Always Getting Better” Prog 230 a/c order = grow to 200m p.a. by FY24 Share buybacks accelerating EPS (
Slide 3: Europe's Lowest Fares – Gap widens
Eur op e’s Lowe st Far es – Ga p widens Avg. Fare Change % > Ryanair Ryanair €41 -13% Wizz €51 -11% +24% easyJet €77 -15% +88% Norwegian €78 -3% +90% Air Berlin €115 -7% +180% IAG €198 -14% +383% Air France/KLM €215 -7% +424% Lufthansa €218 -4% +432% Avg Competitor Fare €136 +232% (Source: Latest FY
Slide 4: Europe's Lowest Costs – Gap widens
Eur op e’s Lowe st Costs – Ga p widens (€ p pax ex-fuel) RYA WIZ EZJ NOR AB1 LUV Staff 5 5 9 15 22 49 Airport & Hand. 7 11 21 17 28 9 Route Charges 6 6 6 7 8 0 Own’ship & maint. 6 15 8 26 40 18 S & M other 3 3 7 8 33 18 Total (PY) 27 (28) 40 (40) 51 (55) 73 (73) 131 (116) 94 (92) % change (reptd.) -
Slide 5: Europe's No.1 Coverage
E u r o p e ’s N o. 1 C ove r a g e 86 bases 207 airports (110 Prim) 34 countries 1,800 routes 130m c’mers (FY18) 427 x B737 fleet 230 x B737s on order 5
Slide 6: Europe's No.1 Market Share (%)
E u r o p e ’s N o. 1 M a r ke t S h a r e ( 1 5 % ) Country (Cap m)* No. 1 No. 2 No. 3 Share UK (138) easyJet BA 18% Germany (128) Luft Air Berlin 7% Spain (126) Vueling Iberia 19% CEE (101) Wizz Aegean 16% Italy (93) Alitalia easyJet 28% Greece (28) Aegean easyJet 14% Portugal (27) TAP easyJet 20%
Slide 7: FY Results
FY Results Mar 16 Mar 17 Customers (m) 106 120 +13% Load Factor 93% 94% +1% Avg. fare (incl. bag) €46 €41 -13% Revenue (m) €6,536 €6,648 +2% Cost Per Pax (incl. fuel) €48 €43 -11% Profit after tax (m) €1,242 €1,316 +6% Net Margin 19% 20% +1ppt EPS €0.93 €1.05 +14% 7
Slide 8: FY Balance Sheet
FY Balance Sheet Mar 16 Mar 17 (€m) (€m) Assets (incl. a/c) 6,883 7,850 Cash 4,335 4,140 Total 11,218 11,990 N Debt Net Cash €244m €312m After €1.45bn capex €1.02bn b/back Liabilities 3,598 3,183 Debt 4,023 4,384 S/H funds 3,597 4,423 Total 11,218 11,990 8
Slide 9: Current Developments
Cur r ent Develop m e n ts Lower fares & AGB drives growth (130m) Connect flights launched @ Rome FCO LH flights sold on RYR.com (A Europa) Erasmus student p’ship launched €750m 7yr Eurobond @ 1.125% p.a. Alitalia, AB & others restructure Brexit – poss. disrupt UK/EU flights Mar 19?
Slide 10: Lower fares & AGB drives growth to 200m p.a.
Lower far es & AGB drives g r owt h to 200m p.a . +20 200 +19 200 189 180 +15 Traffic (m) 2016/17 +12 175 160 +12 162 +7 152 140 142 +5 130 120 120 109 100 101 93 80 73 60 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 10
Slide 11: Connecting Flights at Rome Fiumicino
Connectin g Flights at Rome Fiumicino Launched May 2017 Connect via Ryanair.com to Alicante, Barcelona, Bari, Brussels Catania, Comiso, Malta & Palermo Transfer ‘airside’ Check bags to final dest. 3rd party connections late 2017 11
Slide 12: Long Haul Routes from Madrid
L o n g H a u l Ro u t e s f r o m M a d r i d 12
Slide 13: Brexit
Br exit Final outcome remains uncertain Weaker GBP – lower fares & GBP costs Best result: UK remains in Open Skies Worst: no WTO or bilateral by Mar 19 Distinct poss: No UK - EU flights for period post Mar 19? Pivot growth away from UK for next 2 years Ryr intra UK cap (1%) affected; E
Slide 14: Buybacks enhance shareholder returns
Buybacks enhance shareholder retur ns €18 Share Price 336m shares bought @ €8.50 (current > €17) €16 Share Price 22% of share cap bought & canx May ’17 > €17 €14 FY17 PAT up 6%, EPS grows 14% €600m buyback May – Oct 17 €13.92 €12 €13.17 €10 €6.93 €10.28 €8 €6 €3.41 €2.54 €4 €2 €- May 08 May 09 May 1
Slide 15: FY18 Guidance
FY18 Guidance 130m c’mers (+8%), LF flat @ 94% Fares: down -5% to -7% (FY) H1 -5% H2 -8% €70m fuel saving – passed on Ex-fuel unit costs fall 1% PAT range: €1.40bn to €1.45bn (+8%) Subject to Brexit, security events & ATC strikes 15
Slide 16: Appendices
a ANAIR ~ (Low FARES. MADE SIMPLE.
Slide 17: Fuel Hedge Update
Fuel Hedge Update FY16 FY17 FY18 FY19 Opex hedge $1.32 $1.18 $1.12 (90%) $1.11 (26%)* *H1 FY19 (85%) Jet (met. tonne) FY16 FY17 FY18 FY19 Q1 $934 $659 $508 (90%) $494 (38%) Q2 $935 $652 $494 (91%) - Q3 $876 $603 $476 (90%) - Q4 $828 $563 $491 (90%) - FY $898 $623 $493 (90%) $494 (10%) FY18 €70m savi
Slide 18: Shareholder Returns €5.4bn
Shareholder Retur ns €5.4bn Spec Divs Buyback Total (€m) (€m) (Av price) (€m) FY08 300 (5.05) 300 FY09 46 (2.54) 46 FY11 500 500 FY12 125 (3.41) 125 FY13 492 67 (4.50) 559 FY14 482 (6.93) 482 FY15 520 112 (10.28) 632 FY16 1,104 (13.17) 1,104 FY17 1,018 (13.92) 1,018 FY18 600 600 Total 1,512 3,854 5,
Slide 19: 737-800 Order: Increased growth to FY24
Incr e a s e d g r owt h to FY24 Net Fleet C’mers Growth Y.E. Fleet additions p.a. Ann Cum FY15 +11 308 91m +11% +11% 737-800 Order FY16 +33 341 106m +18% +30% FY17 +42 383 120m +13% +47% FY18 +44 427 130m +8% +59% FY19 +21 448 142m +9% +73% FY20 +33 481 152m +7% +86% MAX Order FY21 +35 516 162m +7%
Slide 20: Ryanair – CEE's Largest Airline
Ryanair –CEE’s Lar ges t Air line Country Mkt size (m) Ryr (m) Wizz (m) Greece 28 4 14% - - Poland 20 6 30% 4 20% Romania 12 1 12% 4 31% Czech Rep. 8 1 7% - 3% Hungary 7 1 17% 2 29% Ukraine 6 - - - 5% Bulgaria 5 1 18% 1 24% Serbia 4 - 2% - 11% Latvia 3 1 16% - 9% Lithuania 3 1 29% 1 24% Georgia 1 -
Slide 21: Disclaimer
Disclaime r Certain of the information included in this presentation is forward looking and is subject to important risks and uncertainties that could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. By their nature, fo