Ryanair Holdings PLC · EURONEXT:RYA
Ryanair — FY2019 Earnings Presentation
18 slides from Ryanair's earnings presentation, May 2019
Slide 1: FY Mar 2019 Results
FY Mar 2019 Results 1
Slide 2: Europe's Favourite Airline
Eur ope’s Favourite Air line Lowest fare/lowest cost carrier No 1, Traffic – 153m guests (+8%) No 1, Cover – 234 airports & 2,100 routes EU airline failures/sales accelerate Avg fares fall 6% to €37 Strong ancillaries offset by higher fuel Lowest cost wins 2
Slide 3: Europe's Lowest Fares
Eur ope’s Lowest Far es Avg. Fare Change % > Ryanair Ryanair €37 -6% Wizz €46 -5% +24% easyJet €61 +2% +65% Norwegian €91 +14% +146% Lufthansa €176 -10% +376% IAG €191 -1% +416% AF/KLM €210 -1% +468% Avg Competitor Fare €129 +249% (Source: FY results/Annual Reports) 3
Slide 4: Europe's Lowest Costs Wins!
Eur ope’s Lowest Costs W ins! € per pax RYA WIZ EZJ NOR E’Wings LUV Staff/efficiency (py) 7 (6) 6 (5) 10 (9) 19 (17) 19 (18) 48 Airport & Hand. 7 11 21 19 33 8 Route Charges 5 5 5 7 7 0 Own’ship & maint. 6 15 9 32 21 15 S & M other 4 3 8 8 34 18 Total 29 40 53 85 114 89 %> Ryanair +38% +83% +193% +2
Slide 5: Europe's No. 1 Coverage
E u r o p e ’s N o. 1 C ove r a g e 87 bases 234 airports (60% prim) Over 2,100 routes S.19 -Mrs/Bod/Tls (Fr) -Sen (UK)/Txl (Ger) -Ukraine/Turkey 153m guests (+8%) On track to 200m by FY24 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 Country (Cap m)* No. 1 No. 2 No. 3 Share Spain (140) Vueling Iberia 20% UK (140) EZJ BA 19% Germany (135) Luft EZJ 9% CEE (126) Wizz Aegean 14% Italy (104) Alitalia EZJ 27% France (83) AF EZJ 7% Portugal (30) TAP EZJ 20% Poland (25) LOT Wizz 29% Ireland (20
Slide 7: FY Results (excl. Lauda)
FY Results (excl. Lauda) Mar 18 Mar 19 Guests* 130.3m 139.1m +7% Avg. fare €39 €37 -6% Ancills/guest €15 €17 +11% Rev per guest €54 €54 -1% Unit costs (ex fuel) €27 €29 +5% Profit* €1.45bn €1.02bn -29% *(Excl. except. €139.5m Lauda year 1 setup losses & 3m guests) 7
Slide 8: Current Developments
Cur r ent Developments Lower fares & higher fuel drive airline failures/sales Good ancillary progress and Cust Care improvements Group structure develops – Lauda & Buzz grow strongly B737MAX 210 ordered – first delivs delayed to W.2019 Europe’s greenest, cleanest airline €700m buyback an
Slide 9: Lower fares & higher oil drive failures/sales
Lower far es & higher oil drive failur es/sales Failures: – Flybmi, Primera (UK/Spain) – Small Planet, Azur & Germania (Ger) – Sky Works (Switz), Vlm (Bel) – Cobalt (Cyprus), Cello (UK) & Wow (Iceland) For sale/sold: –Alitalia (Italy), Thomas Cook (UK/Ger) & FlyBe (UK) Closures/cuts: – Norweg
Slide 10: Good Ancillaries & Customer Care Improvements
G o o d A n c i l l a r i e s & C u s t C a r e I m p r ove m e n t s Strong Priority Board & Assign Seat sales New bag policy improves OTP & revenue New handling Stn, Spa, Pol – better OTP No. 1 OTP – Over 90% March & April New C’mer Care Charter – 24/7 support Digital improves – mobile
Slide 11: Strong Airline Group
Strong Airline Group Ryanair – 430 B737 Buzz – 25 B737 48 in S.2020 Lauda – 23 A320 35 in S.2020 Focus on efficient capital allocations Facil compet divestments (Boeing or Airbus) MOL – Group CEO for 5 years Stan McCarthy Dep Chair 11
Slide 12: Boeing 737MAX update
Boeing 737MAX update 210 orders (135 firm, 75 options) 5 due S.2019 – expect Nov 2019 42 due W.2019 – expect S.2020 Ongoing talks with Boeing & EASA All PDPs frozen since grounding Expect Boeing to cover lost profits 4% more seats, 16% lower fuel Grow to 200m guests p.a. FY24 12
Slide 13: EU's Cleanest, Greenest Airline
EU’s Cleanest, Gr eenest Air line Cut fuel consumption & noise emissions B737 MAX, 4% more seats 16% less fuel Voluntary customer carbon offsets Plastic free in 5 years Over €1m p.a. support to Direct flights lower CO2 than hub flights Source: Brighter Planet Report 13
Slide 14: Weak S.2019 fares – cautious FY20 guidance
Weak S.2019 far es – cautious FY20 guidance 153m guests (+8%) Fares -2% to +1% Rev per pax +2% to +4% Fuel +€460m – 90% hedged Ex fuel unit costs +2% Flat PAT guidance (€750m to €950m) Subj to W.2019 fares, security & Brexit 14
Slide 15: Appendices
Appendices 15
Slide 16: Fuel hedging
Fuel hedging FY20: 90% hedged at c.$71 bbl +€460m FY21: Q1 35% hedged at c.$65 bbl Jet (met. tonne) FY20 FY21 Q1 $717 (90%) $654 (35%) Q2 $718 (90%) Q3 $723 (90%) Q4 $667 (90%) FY $709 (90%) $654 (9%) €/$ FY20 FY21 Opex hedge $1.23 (90%) $1.19 (46%) Increased pressure on unhedged carriers – spot oil
Slide 17: Shareholder Returns €6.9bn
Shar eholder Retur ns €6.9bn Buyback Spec Divs Total (€m) (€m) (€m) FY08 – 11 346 500 846 FY12 – 14 674 492 1,166 FY15 112 520 632 FY16 1,104 1,104 FY17 1,018 1,018 FY18 829 829 FY19 560 560 FY20 700 700 Total 5,343 1,512 6,855 17
Slide 18: Disclaimer
Disclaimer 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, for