Ryanair Holdings PLC · EURONEXT:RYA
Ryanair — Q3 FY18 Earnings Presentation
19 slides from Ryanair's earnings presentation, Feb 1, 2018
Slide 1: Q3 FY18 Results
YY RYANAIR LOW FARES. MADE SIMPLE. - Q3 FY18 Results
Slide 2: Europe's Favourite Airline
Eur ope’s Favourite Air line Lowest fare/lowest cost carrier No 1, Traffic – FY18 130m (+8%) No 1, Cover – 87 Bases/210 apts/430 a/c No 1, Service – 2018 “Always Getting Better” 240 a/c order = grow to 200m p.a. by FY24 Cost gap widens – Lowest cost wins Q3 profits +12%; FY guidance un
Slide 3: Europe's Lowest Fares
Eur ope’s Lowest Far es 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: FY results/Annual Reports
Slide 4: Europe's Lowest Costs
Eur ope’s Lowest Costs (€ 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.) -5% +1% +3%(stg)
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 210 airports (111 Prim) 34 countries 1,800 routes 130m c’mers (+1m) 430 x B737 fleet 240 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% Spain (132) Vueling Iberia 19% Germany (127) Luft/AB EZJ 9% CEE (110) Wizz Aegean 14% Italy (96) Alitalia easyJet 28% Greece (28) Aegean easyJet 12% Portugal (28) TAP easyJet 20% Pol
Slide 7: Q3 Results
Q3 Results Dec 16 Dec 17 Customers (m) 28.8 30.4 +6% Load Factor 95% 96% +1% Avg. fare (incl. bag) €33 €32 -4% Revenue (m) €1,345 €1,405 +4% Cost Per Pax €43 €42 -1% Profit after tax (m) €95 €106 +12% Net Margin 7% 8% +1ppt EPS (€ cent) 7.60 8.93 +17% 7
Slide 8: Q3 Balance Sheet
Q3 Balance Sheet Mar 17 Dec 17 (€m) (€m) Assets (incl. a/c) 7,850 8,417 Cash 4,140 3,213 Total 11,990 11,630 Net Debt Net Debt €244m €857m Liabilities 3,183 2,760 After €1.03bn capex €639m b/back Debt 4,384 4,070 S/H funds 4,423 4,800 Total 11,990 11,630 8
Slide 9: Current Developments
Cur r ent Developments AGB 2018 rolled out Cost discipline continues – FY18 unit costs -2% Union recognition negotiations ongoing – expect some disruptions Unionisation won’t affect growth to 200m in FY24 – New growth opportunities in France & Scandin. Share buyback – €750m Feb to Oct FY
Slide 10: AGB 2018 rolled out
AGB 2018 rolled out 2018 AGB: – Price Promise – we won’t be beaten! – Ryanair Rooms Travel Credit – Connecting flights – Rome, Milan (BGY), Porto – Dedicated EU261 team & Digital self-service – Environmental program – Inflight plastics, greenest fleet MyRyanair 40m members by March 2018 New ba
Slide 11: Cost discipline continues
Cost discipline continues Boeing MAX order hedged @ €/$1.24 • First delivery April ‘19 • 4% increase in seats • 16% fuel savings CFM Engine maint deal • 10 yr low cost deal • Covers all B737-800 NG’s 7 CAE Sims ordered – large discounts Airport growth incentives improve 11
Slide 12: Recognising unions for pilots & C.C.
Recognising unions for pilots & C .C . 30 years non-union. Policy to recog when majority want it Maj of pilots wanted union recog in Dec 17 Start with pilots in UK/Sp/Ger/Ita/Port/Ire/Bel Roll out to c. crews over next year Guide €100m pay inflation – 20% above 737 comps (still cost leader
Slide 13: Staff costs 10% of Revs
Staf f costs 10% of Revs FY Mar 16 FY Mar 17 Traffic 106m 120m (+13%) €m €m Revenues 6,536 6,648 (+2%) Fuel 2,071 1,913 Apt & Hand 831 865 Route Chgs 623 656 Staff 585 (9%) 633 (10%) Aircraft & Maint 672 725 Fin, Sales/M & Oth 348 386 Total Costs 5,130 5,178 Profit Before Tax 1,406 1,470 Tax 163 154
Slide 14: Unionisation won't affect growth to 200m p.a.
Unionisation won’t af fect growth to 200m p.a. 200 200 Growth plan unchanged but 189 180 aircraft allocation may alter 175 as France & Scandin open up 160 162 152 140 138 130 120 120 109 100 101 93 80 73 60 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 14
Slide 15: Shareholder Returns €6.2bn
Shar eholder Retur ns €6.2bn Buyback Spec Divs Total (€m) (€m) (€m) FY08 & 09 346 346 FY11 & 12 125 500 625 FY13 & 14 549 492 1,041 FY15 112 520 632 FY16 1,104 1,104 FY17 1,018 1,018 FY18 639 639 FY19 750 750 Total 4,643 1,512 6,155 15
Slide 16: FY18 Guidance
FY18 Guidance Traffic up 8% to 130m despite 25 a/c grounded Cutting FY fares at least 3% FY Anx rev +2% per c’mer FY unit costs -2% PAT range: €1.40bn to €1.45bn (+8%) Subject to union disruption, security events & Easter Q4 fares FY19 Fuel & staff costs rise; cautious fare outlook 16
Slide 17: Appendices
Appendices
Slide 18: Fuel Hedge Update
Fuel Hedge Update FY17 FY18 FY19 Opex hedge $1.18 $1.12 (90%) $1.15 (90%) Jet (met. tonne) FY17 FY18 FY19 Q1 $659 $508 $547 (90%) Q2 $652 $494 $544 (90%) Q3 $603 $476 $583 (50%) Q4 $563 $491 (90%) $586 (50%) FY $623 $493 (90%) $558 (70%) FY18 fuel savings passed on in lower fares; fuel headwinds in
Slide 19: 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