introduction Johan Lundgren – CEO
Positioned to win
Unparalleled foundation for us to bounce back strongly; Best network, trusted brand, leaner cost base and agility to ramp up rapidly
Unmatched network
Strong liquidity position
Cost control
Loyal customers
Raised £3.1bn in liquidity since April 2020 Year end liquidity position increased by c.£900m compared to end March 2020 Retain ownership of 55% of our fleet with 37% unencumbered
Launched the largest Cost Efficiency Programme in easyJet’s history Step change cost base to more seasonal profile Better than expected cash burn performance
Maintained loyalty - 80% of seats booked by returning customers (+2% vs FY19) +14% improvement in FY20 Q4 CSAT High levels of trust vs other LCCs in the market
Maintained leading network with number 1/2 positions in 55 primary airports A sector leading unit revenue performance in Q4 Grew market share position in our bases and our top 20 leisure destinations
3
Financial review Andrew Findlay – CFO
Key performance indicators FY’2020
* Favourable/(adverse)
FY 2020 FY 2019 Change*
Seats flown (m) 55.1 105.0 (47.5%)
Passengers (m) 48.1 96.1 (50.0%)
Load factor (%) 87.2% 91.5% (4.3)ppt
Average sector length (km) 1,132 1,105 2.4%
Revenue per seat - reported currency (£) 54.35 60.81 (10.6%)
Revenue per seat - constant currency (£) 54.52 60.81 (10.3%)
Headline cost per seat incl fuel - reported currency (£) 69.03 56.74 (21.7%)
Headline cost per seat incl fuel - constant currency (£) 69.72 56.74 (22.9%)
Headline cost per seat excl fuel - reported currency (£) 55.94 43.26 (29.3%)
Headline cost per seat excl fuel - constant currency (£) 56.33 43.26 (30.2%)
Headline (loss)/profit before tax per seat - reported currency (£) (14.68) 4.07 (460.8%)
5
FY’2020 kpi’s
6
42.7
0.1
12.2
0
10
20
30
40
50
H1 Q3 Q4
Seats flown (m)
38.6
0.1
9.4
0
10
20
30
40
50
H1 Q3 Q4
Passengers (m)
90.3% 88.9% 76.3%
0%
20%
40%
60%
80%
100%
H1 Q3 Q4
Load factor (%)
55.6 53.4 50.0
0
10
20
30
40
50
60
H1 Q3 Q4
Revenue per seat (£)
6
Financial performance
* Favourable/(adverse)
FY 2020 FY 2019 Change* £ m £ m
Total revenue 3,009 6,385 (3,376)
Headline costs:
Headline costs excluding fuel (3,123) (4,542) 1,419
Fuel (721) (1,416) 695
Headline (loss)/profit before tax (835) 427 (1,262)
Headline ROCE (19.9)% 11.4% (31.3)ppts.
Headline (loss)/earnings per share (pence) (178.1p) 87.8p (265.9p).
Dividend per share - 43.9p (43.9p).
Non-headline items:
Sale and leaseback gain 38 2 36
Restructuring (123) - (123)
Impairment on leased aircraft (37) - (37)
Fair value adjustment - hedge discontinuation and ineffectiveness (311) 1 (312)
Balance sheet foreign exchange (loss)/gain (5) 2 (7)
Other - (2) 2
Total non-headline items (438) 3 (441)
Total (loss)/profit before tax (1,273) 430 (1,703)
7
Revenue per seat
* H1 Underlying Trading includes underlying trading, German RPS growth, seasonality and smaller external events such as BA strikes & Ryanair domestics cancellations 8 8
> Trading in H1 was strongly positive
> H2 trading
Disciplined approach to deployment of capacity
Flexible schedule planning based on changing demand environment
Focused on flying which generated positive contribution
Optimised pricing
Headline cost per seat
* Favourable/(adverse)
> Higher CPS as a result of:
Decreased capacity
One-off maintenance provision catch-up in H1
> Offset by:
Short-term cost-out action
Furlough schemes
Initial savings from cost reduction programme
9 9
Headline Impact of fuel & currency
* Favourable/(adverse)
FY 2020 headline fuel impact FY 2020 FY 2019 Change*
Fuel $ per metric tonne Market price 575 652 77
Effective price 650 604 (46) US dollar rate Market price 1.29 1.27 0.02 cents Effective price 1.33 1.32 0.01 cents Difference 0.04 0.05 Actual cost of fuel £ per metric tonne 489 458 (31)
FY 2020 currency impact on headline LBT* EUR CHF USD Other Total
£m
Revenue (9) 3 - (3) (9)
Fuel 2 - 14 - 16
Headline costs excluding fuel 23 (5) (4) 8 22
Total 16 (2) 10 5 29
10
Cashflow – h1 & h2
* Includes net proceeds on sale and leasebacks in H1, tax paid, net financing charges
** Includes tax received, net financing charges
H2 total cash burn: (£1,425)m
H2 cash generated from financing: £2,396m
1,576 1,389
2,316
78
1,399
409
588
306
241
(21)
H2 Operating Loss
H2 other movements**
Capex including
lease payments
H2 Working Capital
movements
H2 Impact of FX
Cash & MMDs at 30 September
2020
Cash & MMDs at 31 March 2020
Dividend paid Depreciation and
amortisation
H1 Other including FX*
Cash & MMD at 1 October
2019
Capex including
lease payments
H1 Cash generated
from operations
(excl. dividends)
H2 Debt Financing
(563)
H2 proceeds from issue of
ordinary share capital
Net H2 proceeds
from sale and leaseback of
aircraft
Refunds paid
472
(174)
(863)
(726)
(362)
(44)
11
H1 net change in cash & MMD: (£187)m
11
balance sheet
* Excludes restricted cash
** Unearned revenue relating to cancelled flights which have not been rebooked or refunded, has been reclassified within trade and other payables
£m 30 September 2020 30 September 2019
Goodwill and other intangible assets 597 561
Property, plant and equipment 5,053 5,163
Derivative financial instruments (327) 63
Equity Investments 33 48
Other assets (excluding cash and money market deposits) 364 542
Unearned revenue** (614) (1,069)
Trade and other payables (1,242) (1,050)
Other liabilities (excluding debt) (840) (947)
Capital employed 3,024 3,311
Cash and money market deposits* 2,316 1,576
Debt (excluding lease liabilities) (2,731) (1,324)
Lease Liabilities (710) (578)
Net debt (1,125) (326)
Net assets 1,899 2,985
12
Utilising flexibility in Fleet
1) Chart shows contractual arrangements with Airbus and current lessor; 2) Reduction to 302 is dependent on commercial negotiations currently in progress 3) At FY2021, easyJet will be storing an additional eight operating leases on behalf of their respective lessors. These are held at zero rent unless flown and excluded from the 302.
Current contractual Max
Current contractual Min
> Current plan allows the flexibility to expand or contract depending on the demand picture at the time
> This plan excludes any potential opportunistic fleet additions, which are not included in the 302 base plan for 2021
> c.31% flexibility in Min plan vs Max plan in 2023
13
FY21 Base Plan
0
200
400
600
800
1,000
1,200
1,400
FY'21 FY'22 FY'23
New Aircraft Maintenance
Lease payments Other
Gross capital expenditure
£600m
Guidance range
£800m
£1,000m
£600m £600m
14
Pre delivery payments
Fuel and foreign exchange hedging
15
Fuel Hedging and Ineffectiveness
> Pre COVID-19 fuel was 71% hedged @ $654/MT for FY20 and 51% hedged for FY21 @ $638/MT
> FY20 hedge ineffectiveness charge of £311m, largely driven by overhedged amounts on jet fuel and foreign exchange, due to lower than planned capacity
Current Hedge Position
> Jet hedging for time periods through to October 2021 was paused. USD and jet fuel hedging continues for later periods
> Excluding the ineffective hedges:
• FY21 Jet fuel requirement is currently 77% hedged @ $605/MT
• FY22 Jet fuel requirement is currently 44% hedged @ $490/MT
ceo update Johan Lundgren – CEO
Decisive action delivered
£3.1bn of liquidity raised
Largest Cost Efficiency programme in easyJet’s history
Restructuring programme with Union / work council agreements in the UK, Germany, Netherlands and
Portugal to date
Strong control of cash burn throughout H2 2020
Disciplined flying schedule driving
positive contribution
Reduced fleet plan while maintaining high level of flexibility
17
Agile response to market changes
18
Announcement of Canary Islands quarantine lifted on 22nd October.
876% sales increase over the next 5 days: > Added 180,000 seats within 24 hours
from all UK bases
> Operated additional seats within 48 hours of announcement
> Updated digital assets (homepage, app banner) immediately
> Over 8.5m push notifications sent
> Social media posts (FB and IG)
> Trade creative (easyJet holiday)
structural advantages
Business model > Low cost more
attractive as the economy recovers
> Short haul leisure demand will lead the recovery, with easyJet holidays in a strong position
> Business customers will gravitate towards value
Strong relative cost position > Significant cost
advantage vs main competitors
> Cost flexibility meaning more agile pricing during the COVID19 recovery
Network positions > High yielding
network
> Leading positions at primary airports
> Opportunity to strengthen positions
Our people > Strong employer
attracting the best people
> Differentiation from our people driving high CSAT scores
Trusted brand > Value for money
> First choice LCC brand in UK, France, Germany and Switzerland
> Leading position on sustainability
No better foundation on which to build
19
1) Source: Oxford Economics Global Travel Service city forecast CY20192) Source: OAG LTM Mar2020 2) Source: CY 2019 actuals (TM1)
Network: strong positions in key European CATCHMENTS
20
5.0 0.0 0.5
160
140
1.5 1.0 2.0 2.5 3.0 3.5 4.0 4.5 5.5 6.0 6.5 9.5 10.0 0
20
40
60
80
100
120 Frankfurt
Amsterdam Munich
London
Belfast
Geneva
Edinburgh Stockholm Zurich Hamburg
Brussels
Glasgow
Lyon
Milan Vienna Bristol
Population (m)
Liverpool Manchester
Madrid
Newcastle
Bordeaux Venice Lisbon
Toulouse
Porto
Berlin
GD
P/c
ap
ita
($
00
0s)
Rome
Basel
Paris Dublin
Naples
Unserved Other 2 1
2019 Top 50 European cities by GDP/capita1. Bubble size represent easyJet touching capacity within bases2.
POPULATION AND WEALTH OF MAJOR EUROPEAN CITIES
Network strategy – significant opportunities
21
Lead in our
Core Markets
Build on our strength as
Destination Leaders
Potential future growth in
Focus Cities
> Primary airport #1 and #2 positions > Provide a balanced network portfolio across domestic, city
and leisure destinations > Scale of offering provides market leadership in product offer > Maintain our focus on country leadership in UK, France,
Switzerland and city focus in Netherlands, Italy and Germany
> Existing leading position to Western Europe’s leisure spots
> New bases provide network breadth and flexibility
> Benefits include ability to manage seasonality and support easyJet holidays growth
> Top of mind for customers and are seen as the “local airline
> Network of Core Markets and Destination Leaders unlocks ability to grow into new markets and create leading offer
> Broadens presence across Europe
> Add based assets where makes sense
Leading business model
1) OAG. Intra-Europe defined as short haul, all others as Long haul. Long haul growth partly driven by cargo demand 2) BCG Consumer Sentiment Survey, Europe, 2005-2008
22
Short haul will recover first1 Leading leisure offer1 Business will seek value2
Short haul travel is recovering much faster post-COVID19
20
0
60
10
70
30
40
50
80
90
100
110
Long Haul
Jan Feb Mar Apr May Jun Jul Aug Sep
Short Haul
% of CY 2019 capacity by month
12.5%
13.6%
2019 2020
Capacity share in top 20 leisure airports
Growing share in the leisure airports that matter
New 2020 bases announced >Malaga >Faro
Positioned to capture more business traffic as it returns
45% 42% 47% 56%
33% 32%
33%
31%
22% 26% 20%
13%
Trade Down
2005 2007 2006 2008
Trade Up
Neither
Buyers trading up/down 2005-2008 % of category buyers
- 7%
+9%
YoY 2007-2008
Global Financial Crisis
unique / strong position
23
Demand expected to recover ahead of airlines
> Summer 21 booking position significantly ahead of last year at this point
Competitors under pressure
> Traditional tour operators struggling due to large fixed cost base and high commitments/ prepayments
> OTAs struggling with the required customer service levels and a number of smaller travel companies have failed
Leading value proposition
> Leveraging scale and low cost base of airline and key hotelier relationships
> Our average holiday booking value is 70% higher than under the previous outsourced model
> 75% of all holidays on like for like searches show easyJet holidays giving best value
> Our low cost base is 93% variable which ensures that we are able to deliver a leading value proposition in the market
Unparalleled flexibility
> New and Innovative ‘Protection Promise’ driving customer value, confidence, flexibility and retention
> Scalable technology platform allows us to introduce this flexibility in an efficient and customer-centric way
Our people
Glassdoor ratings out of 5 as at October 2020
4.1
2.9 2.9
easyJet BA Ryanair
Drive productivity
Building passion around Our
Purpose
Deliver People tools to support
a changed workforce
Support Well-being of
our people
Our People Strategy
24
Kenton Jarvis, Chief Financial Officer
Stuart Birrell, Chief Data & Information Officer
Industry experts joining the team
Best place to work overall
Trusted brand – leading customer offer
UK
16%
FR CH IT DE
25% 21%
8%
42%
1%
25% 37%
11% 9%
easyJet
Nearest LCC easyJet first choice brand vs nearest LCC1
Leading position on price vs worth
% of respondents
Sources: 1) Millward Brown brand tracker Oct ’19 – Sept ’20 2) Worth is defined as number of respondents selecting “Worth more than it costs”
65
40 70 65 45 50 60 80 55 85 90 40
45
50
55
75
60
70
75
80
85
90
Jet2 Norweigan
Wo
rth
2
British Airways
easyJet
Ryanair
Flybe
Wizz Air Lufthansa
Vueling
Price
25
80% of seats booked by returning customers (up 2% from FY19) CSAT of 83% in Q4, improvement of 14ppts vs Q4 2019 Positive movement in First Choice Brand score across all major markets (UK, France, Germany, Switzerland, Italy) Positive movement in Brand Trust scores across all markets.
easyJet is perceived as the best value LCC in the UK, France, Switzerland and Italy easyJet - Best low cost airline, Business Traveller Awards 2020
26
Rapid cost out Right-sizing & Seasonality Structural efficiencies
> Furlough schemes across Europe
> Renegotiated fleet deal
> Deferred non-essential maintenance
> Airport ramp up deals
Ove
rhe
ad
s O
pe
rati
on
s
> Up to 30% FTE reduction across 6 countries
> 2 year pay freeze agreements
> 10% uptake of seasonal contracts
> Crew productivity: 20% improvement targeted
> Simpler ground handling contracts delivering greater value and focus on punctuality / productivity to help drive 50% reduction in events leading to EU261 costs
> Airport deals focused on growth and volume
> Maintenance insourcing and low cost contract extensions
> Fleet allocation and fuel saving program
> Recruitment freeze
> Temporary pay cuts
> Discretionary expenditure stopped
> Up to 30% reduction in M&A staff
> Technology in Customer Management Centre
> Property estate costs reduced
Largest ever Cost Efficiency Programme
Cost base reset driving efficiencies and sustainable savings as volume returns
Sustainability – carbon neutral Strategic
Pillars Tackling Carbon Emissions Stimulating Carbon Innovation Going Beyond Carbon
Progress in FY’20
> World’s first major airline to be carbon neutral
> Retired 3.1m VCS-certified carbon credits
> Total carbon footprint analysis with Carbon Trust
> Enhanced YE carbon reporting, incl. Scope 3
> Partnership with Airbus to inform their electric, hybrid & hydrogen aircraft development
> Support to Wright Electric who unveiled plans for 186 seat all electric plane
> Active industry wide advocacy role to drive innovation
> Launched Sustainability Strategy & strengthened governance
> Developed Environment Policy
> Appointed Sustainability Team
> Removed 27m pieces of single use plastic from flight ops
27
Sustainability – important to customers
72%
Only major international airline
flying carbon neutral today by offsetting CO2 from fuel and
operations 35.6%
42.0% 41.8% 43.2%
47.3%
30%
35%
40%
45%
50%
55%
December January February March September YTD
Likelihood to choose easyJet over another airline due to carbon offsetting policy
28
of consumers say that the sustainable behaviour of a company is now a more important factor in a purchase decision post-COVID19
outlook > Based on current travel restrictions in the markets in which we operate, easyJet expects to fly no
more than c.20% of planned capacity for Q1 2021
The European slot waiver mechanism put in place for this winter will enable easyJet to best match our capacity against the lower demand that currently exists
> Remain focused on cash generative flying over the winter season in order to minimise losses during the first half
> Retain flexibility to ramp capacity back up quickly when we see demand return
> At this stage, given the continued level of short-term uncertainty, it would not be appropriate to provide any further financial guidance for the 2021 financial year
29
positioned to bounce back strongly
30
Robust and decisive response to the pandemic
Launched largest Cost Out programme in easyJet’s history
Unmatched network, value and trusted brand will attract customers
easyJet People form the base on which we build
easyJet holidays in a strong position
Flexibility to rapidly ramp up when short haul recovery comes
Robust foundation + brand strength + agility to ramp up to capture demand
Q&a
appendix
(Loss)/profit after tax
* Favourable/(adverse)
£ m FY 2020 FY 2019 Change*
Headline (loss)/profit before tax (835) 427 (1,262)
Headline tax credit/(charge) 110 (78) 188
Non-Headline items (438) 3 (441)
Non-Headline tax credit/(charge) 84 (3) 87
Total (loss)/profit after tax (1,079) 349 (1,428)
Total (loss)/profit before tax (1,273) 430 (1,703)
Total tax credit/(charge) 194 (81) 275
Total (loss)/profit after tax (1,079) 349 (1,428)
Effective tax rate -15.3% -18.9% 3.6ppt
33
EPS, Dividends and ROCE
* Favourable/(adverse)
FY 2020 FY 2019 Change*
Headline basic (loss)/earnings per share (pence) (178.1) 88.7 (301%)
Headline diluted (loss)/earnings per share (pence) (178.1) 87.8 (303%)
Total basic (loss)/earnings per share (pence) (264.9) 88.6 (399%)
Total diluted (loss)/earnings per share (pence) (264.9) 87.8 (402%)
Dividend per share (pence) - 43.9 (100%)
Headline return on capital employed (%) (19.9)% 11.4% (31.3ppt)
Total return on capital employed (%) (23.0)% 11.4% (34.4ppt)
34
Revenue breakdown
* Favourable/(adverse)
Total Group revenue, £m FY 2020 FY 2019 Change*
Passenger revenue 2,303 5,009 (54.0%)
Ancillary revenue 706 1,376 (48.7%)
Total revenue 3,009 6,385 (52.9%)
Airline revenue per seat, £ FY 2020 FY 2019 Change*
Passenger revenue 41.78 47.71 (12.4%)
Ancillary revenue 12.57 13.10 (4.1%)
Total revenue 54.35 60.81 (10.6%)
Airline revenue per seat at constant currency, £ FY 2020 FY 2019 Change*
Passenger revenue 41.90 47.71 (12.2%)
Ancillary revenue 12.62 13.10 (3.7%)
Total revenue 54.52 60.81 (10.3%)
35
Headline cost per seat
Cost per seat excluding fuel
Variance at constant currency*
Variance at constant currency*
Weighted variance at constant currency*
Drivers
£ £ % %
Airports and ground handling 16.88 0.52 3.0% 1.2% • Reduced volumes • Reduced load factors • Ramp up deals post lockdown
Crew 11.42 (3.28) (40.1%) (7.6%) • Reduced volumes resulting in reduced productivity • Remaining payroll costs in line with furlough schemes
Ownership 10.20 (5.04) (97.8%) (11.7%) • Fixed costs spread over lower capacity • Increase in interest costs due to additional borrowings
Overheads & other income 8.66 (3.16) (56.7%) (7.3%) • Fixed costs spread over lower capacity • Loss on sale of EU ETS allowances
Navigation 3.74 0.10 2.6% 0.2% • Decrease in rates from Eurocontrol
Maintenance 5.04 (2.22) (77.3%) (5.1%) • Reduced volumes • Increase in one off maintenance provision catch up
Total Headline CPS excluding fuel 55.94 (13.08) (30.2%) (30.2%)
Fuel 13.09 0.10 0.7%
Total Headline CPS 69.03 (12.98) (22.9%)
* Favourable/(adverse) 36
Fleet profile FY 2020 FY 2019 Change
A319 (leased) 70 56 14
A319 (owned) 52 69 (17)
A319 Total 122 125 (3)
A320 (leased) 50 43 7
A320 (owned) 156 157 (1)
A320 Total 206 200 6
A321 (leased) 7 0 7
A321 (owned) 7 6 1
A321 Total 14 6 8
Total fleet 342 331 11
Leased 127 99 28
Number unencumbered 165 232 (67)
Percentage of A320s in fleet 60% 60% 0ppt
Average seats per aircraft 177 175 1%
37 * As at 30 September 2020
Non-headline items
* Favourable/(adverse)
FY 2020 FY 2019 Change* Description
£ m £ m £ m
Commercial IT platform credit - 2 (2) During 2019, only £2 million of the close down accrual of £4 million for our FCP commercial platform was utilised, mainly due to staff being redeployed and anticipated compromise agreements not being required.
Sale and leaseback gain 38 2 36 During the period, easyJet completed the sale and leaseback of 17 A319 (2019: 10), 9 A320 (2019: nil) and 7 A321 (2019: nil). The net Income Statement impact of the 33 sale and leasebacks was a £38 million gain (2019: £2 million gain).
Brexit-related costs - (4) 4 Following the UK’s referendum vote to leave the EU easyJet has established an Austrian AOC, helping to secure flying rights for the portion of our network that remains wholly within and between EU states, excluding the UK.
Restructuring costs (123) - (123) Due to the change in demand environment as a result of COVID-19 the business has embarked upon a restructuring process. As a result of this, the related costs of £123 million (2019: nil) have been classified as non-headline.
Impairment (37) - (37) Due to lower forecasted customer demand, the group have reassessed the fleet capacity and utilisation requirements leading to 34 leased aircraft being permanently removed from commercial service.
Fair value adjustment (311) 1 (312) This relates to hedge accounting ineffectiveness for items currently held in fair value and cash flow hedge relationships, or amounts that have been discontinued from a previous hedge relationship.
Balance sheet foreign exchange gain/(loss)
(5) 2 (7) This relates to foreign exchange gains or losses arising from the re-translation of monetary assets and liabilities held on the Balance Sheet.
Total non-headline items (438) 3 (441)
38
Currency impact
Average effective Euro rate for revenue for FY 2020 was €1.13 (FY 2019: €1.13)
Average effective Euro rate for costs for FY 2020 was €1.15 (FY 2019: €1.13)
Revenue Costs
FY 2020 FY 2019 FY 2020 FY 2019
Sterling 42% 43% 50% 30%
Euro 47% 46% 31% 38%
US dollar* 1% 1% 13% 26%
Other (principally Swiss franc) 10% 10% 6% 6%
39
* The 13ppt year on year reduction in USD costs reflects the reduction in fuel purchased in 2020
Return on capital employed
Reported £m FY 2020 FY 2019
Headline (loss)/earnings before interest and tax – reported (777) 466
UK corporation tax rate 19% 19%
Normalised headline operating (loss)/profit after tax (NOPAT) (629) 377
Average shareholders’ equity – reported 2,442 3,083
Average net cash – reported 726 231
Average capital employed 3,168 3,314
Headline return on capital employed (19.9%) 11.4%
40
Q4 Passenger Statistics
July 2020 2019 Change
Passengers 2,183,279 9,469,781 -76.9%
Load Factor 83.9% 94.3% -10.4 ppt
August 2020 2019 Change
Passengers 4,312,805 9,578,600 -55.0%
Load Factor 76.1% 94.3% -18.2 ppt
September 2020 2019 Change
Passengers 2,872,785 8,972,901 -68.0%
Load Factor 71.6% 91.4% -19.8 ppt
41