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Slide 1
FY2003 Results FY2003 Results
18 November 2003 18 November 2003
Slide 2
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 2001. ...
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. ...
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. ... Financial overview
3. ...
Slide 5
Financial Results for 12 months to 30th Sept. ... Financial overview
3. ... 8
55,306
6,835
829
– Rate of capacity growth slowed in H2
– High load factors sustained all year
– Yields largely held in H2
Slide 9
Underlying sector growth and movements in average fare*
-20%
-10%
0%
10%
20%
30%
40%
50%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
% change
Average fare movement % Sector change %
Key Drivers: Capacity Growth and Average Fare
* easyJet statutory data used for 2002 Q1, Q2 & Q3. Rest is proforma, easyJet plus Go. ... Financial overview
3. ... Summary
Slide 21
Current easyJet network
Q 125 routes
Q 39 airports
Q 36 cities
Q 11 countries
Q Over 500
flights a day
Slide 22
Consistent business model delivers sustainable growth
Q Dense point-to-point network
Q Strong visible brand
Q Dynamic fares…if you book late, you pay
more
Q Direct sales, over 90% initial sales on-line
Q Highly utilised fleet
Q Scaleable
Strong and sustainable growth prospects
Q Track record of delivery
– Internet distribution
– Go integration
– Airbus introduction
Slide 23
“The only airline that saves you time and money”
Q The attractive customer proposition that drives our business
Saves you time:
– Convenient airports
– Close to large catchment areas
– High frequency, point-to-point services
– Attractive destinations to business and leisure
travellers
Saves you money:
– Low cost model
– Yield management keeps average fares low
– No frills
Slide 24
Network density more attractive to customers
Source: easyJet, ATI, August 2003
Airline Aircraft Routes Airports
Average departures
/ city
easyJet 74 111 38 12
Southwest 383 396 58 46
Ryanair 69 133 80 6
Virgin Express 13 14 15 4
BMI Baby 13 50 27 2
Germanwings 10 30 25 2
– High frequencies more attractive to business and leisure customers
– Scale benefits and operational efficiency underpins low cost
Slide 25
Scale improves competitive advantage
Q Economies of scale underpin low prices
– Purchasing benefits eg maintenance, insurance, marketing
– Exceptional Airbus deal
– Operational efficiencies at airports
Q Pan-European brand strength, quality and scale
– Maintains consumer demand
– Enables further cost reduction
– Focus on major catchment areas with two-way markets
Q Management focus on continued reduction of unit costs
– High cost airlines and unsustainable new entrants will not be able to
match easyJet
easyJet is a clear European market leader
Slide 26
Yield management optimises revenues
Q Proprietary yield management system optimises revenue per flight
– Drives high load factors - average load factors of 80% - 85% targeted
Q Simple and attractive customer proposition
– Early bookers pay low fares
– Higher prices protect seat availability for late bookers
Booking profile
0%
20%
40%
60%
80%
100%
Time to Departure
% of seats sold
late bookers pay higher
fares
early bookers pay
low fares
Day of flight Booking opens
Slide 27
1996 1997 1998 1999 2000 2001 2002 2003
Passengers Carried
Growth: easyJet’s priorities
Q Network development priorities:
1.
Approximate Word count = 2041
Approximate Pages = 8.2
(250 words per page double spaced)
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