H1 2020 results presentation

introduction Johan Lundgren – CEO

easyJet - Positioned to win

3

easyJet has been decisive in meeting the challenges of Coronavirus to ensure we can manage a prolonged grounding by:

1. Cutting costs

2. Delivering vastly reduced capex while retaining excellent fleet flexibility

3. Securing c.£2bn additional funding, in addition to the equity raise announced today

Strong liquidity position, testimony to the strength of easyJet + its investment grade balance sheet

easyJet will be leading the recovery:

1. Strong H1 performance prior to COVID impact

2. Trusted easyJet brand outperforms competitors in value for money and drives customer confidence

3. easyJet’s industry leading network of European primary airports

4. Cost-out programme to deliver sustainable cost savings

3

Competitively positioned as a more efficient airline to take advantage of opportunities in the European short haul market

Financial review Andrew Findlay – CFO

response to coronavirus

Maximise liquidity

Cost Reductions & Payment Terms

• c. 70% decrease in operating cost cash burn during grounding

• Payment term extensions negotiated with many of our major suppliers

Fleet Deferrals

• Deferred 24 aircraft deliveries to post 2025

• Increased short term flexibility

• Drove re-timing of pre delivery payments

Additional funding

• Delivered c.£300m from SLB transactions so far, with final transactions to leave us at the top end of the £500m-£650m range

• Accessed a further £1.4bn in funding through; CCFF, RCF & term loans

Current cash position

(as @ 22 June)

£2.4bn

5

Does not include funding from: • equity raise + £400m to £450m • SLB transactions still to complete

+ c.£300m

Scenario planning - Updated

Scenario assumptions:

• Refunds vs voucher/rebook ratios continue at a similar rate as those seen to date

• FX and fuel rates based on spot price as at 25th May ’20

• Assumes no material change to card acquirer arrangements

Total cash burn scenarios*

Highlights:

• Cash burn slightly better than April forecast:

• 3mth by c.£0.2bn, 6mth by c.£0.1bn, 9mth unchanged

• Cash contributing flying programme resumed after 11 weeks, ahead of our 3 month grounding base case scenario

• Additional sources of funds continue to be explored to further boost liquidity

• Additional management actions being undertaken including business wide cost out programme to improve free cashflow generation

6 months grounding

3 months grounding

Revenue/refunds

AP/AR unwind

Capital

Operating costs

9 months grounding

£1.0bn £2.1bn

£3.0bn

Total Capex (Inc fleet, other , IFRS16 & maintenance )

6 * Starting point of 1st April 2020

proposed equity placing

EQUITY PLACING

> Firm placing of up to 9.99% of issued share capital

> Additional placing of up to 5% of issued share capital, conditional on shareholder approval (ordinary resolution)

> Allocations expected to be split proportionally between the two placings

> Expected gross proceeds c.£400m - £450m

TIMING > Transaction launched 24 June after market close, settlement of firm placing 29 June (T+2)

> General meeting to be held 14 July, settlement of conditional placing 15 July (T+14)

JOINT GLOBAL COORDINATORS & JOINT BOOKRUNNERS

> BNP Paribas

> Credit Suisse Securities (Europe) Limited

EASYJET PLC SHARE LOCK-UP > 180 day post-admission share lock-up for the Company, subject to customary exceptions

• Proceeds will further enhance easyJet’s liquidity position and credit metrics, underpinning our balance sheet which is one of the strongest in the industry

• Expected cash balance following the equity placing and final SLB proceeds to be in excess of c.£3bn, providing significant liquidity buffer to navigate further grounding or protracted recovery scenarios

7

Key performance indicators

H1 2020 H1 2019 Change*

Seats flown (m) 42.7 46.2 (7.6)%

Passengers (m) 38.6 41.6 (7.4)%

Load factor (%) 90.3% 90.1% +0.2ppt

Average sector length (km) 1,095 1,068 2.5%

Revenue per seat - reported currency (£) 55.60 50.71 9.6%

Revenue per seat - constant currency (£) 55.87 50.71 10.2%

Headline cost per seat incl fuel - reported currency (£) 59.75 56.66 (5.5)%

Headline cost per seat incl fuel - constant currency (£) 60.75 56.66 (7.2)%

Headline cost per seat excl fuel - reported currency (£) 47.24 43.64 (8.2)%

Headline cost per seat excl fuel - constant currency (£) 47.80 43.64 (9.5)%

*Favourable/(adverse)

Per seat metrics exclude easyJet Holidays

8

Financial performance H1 2020 H1 2019 Change*

£ m £ m £m

Total revenue 2,382 2,343 39

Headline costs:

Headline costs excluding fuel (2,041) (2,016) (25)

Fuel (534) (602) 68

Headline loss before tax (193) (275) 82

Headline loss before tax at constant currency (224) (275) 51

Non-headline items:

Sale and leaseback gain 1 2 (1)

Brexit-related costs - (4) 4

Commercial IT platform - 2 (2)

Balance sheet foreign exchange gain 3 3 -

Fair value adjustment (164) - (164)

Total loss before tax (353) (272) (81)

*Favourable/(adverse)

9

Revenue performance

£0.56

£1.01

£4.20

FX

(£0.61)

H1 2019 Reported Thomas Cook Administration

Underlying Trading

£50.71

H1 2020 @ CC

£55.60

H1 2020 Reported

(£0.27)

Coronavirus

£55.87

Ancillary

RPS @ CC +10.2%

Reported RPS +9.6%

+1.1%

+2.0%

+8.3% -1.2%

-0.6%

c.18k Flights cancelled in

March due to Coronavirus

c.£0.2bn Impact on total

revenue

Excludes easyJet Holidays

10

HEADLINE cost PER SEAT

* Operational price increases including unregulated airports, ground handling, navigation and crew costs

Excludes easyJet Holidays

11

Headline CPS ex fuel @ cc +9.5%, of which: c.5.0% underlying

• In line with guidance • Lower capacity growth

for the half • Ongoing, regulatory and

inflationary pressure • Ownership costs • Crew pay higher

retention levels

c.4.5% Coronavirus:

• Cancellations • Full pilot & crew rosters

through March

£1.22

£0.99

£0.66 £0.11 £0.15 £1.00

Navigation

£56.66

Airports, ground

handling and other operating

costs

P&L FX

£60.81

H1 2020 headline cost per

seat @ CC before fuel

variance

Fuel Maintenance Overheads and Other Income

H1 2020 headline cost per

seat

H1 2020 headline cost per

seat @ CC

£60.75

£59.75

Ownership

£0.06

£1.32

H1 2019 headline cost per

seat

Crew

Headline CPS ex fuel @ CC = 9.5%

Headline CPS @ CC = 7.2%

Impact of fuel & currency H1 2020 fuel impact H1 2020 H1 2019 Change*

Fuel $ per metric tonne

Market rate 563 650 87

Effective price 638 645 7

US dollar rate

Market rate 1.28 1.29 1 cents

Effective price 1.34 1.31 (3 cents)

Difference between market rate and effective rate 0.06 0.02

Actual cost of fuel £ per metric tonne 476 493 17

H1 2020 currency impact on headline PBT* EUR CHF USD Other Total

£m

Revenue (2) (1) - (10) (13)

Fuel 2 - 17 - 19

Headline costs excluding fuel 25 (3) 2 1 25

Total 25 (4) 19 (9) 31

*Favourable /(adverse)

12

Cash FLOW bridge Net debt: £467m

(H1 19: £201m)

Cash generated from operations (excl. dividends): £472m

Investing and financing

13

173

262

365 18

20

174

114

452

111 19 Cash & MMC at 30 September

2019

FX Ordinary Dividend (FY19)

1,388

Other operating Net working capital

Tax paid

1,576

Restricted case, own shares and

net interest

Cash Capex Cash & MMD at 31 March 2020

1,854

Cash & MMDs post div & tax

paid

Depn & amort Operating loss Sale & leaseback proceeds

Repayment of capital element

of leases

2

balance sheet £m

31 March 2020

31 March 2019

30 September 2019

Goodwill and other intangible assets 613 551 561

Property, plant and equipment 4,823 4,286 4,661

Right of use assets 468 572 502

Derivative financial instruments (554) 48 63

Equity Investments 33 54 48

Other assets (excluding cash and money market deposits) 662 484 542

Unearned revenue** (974) (1,726) (1,069)

Trade and other payables (1,660) (817) (1,050)

Other liabilities (excluding debt) (852) (735) (947)

Capital employed 2,559 2,717 3,311

Cash and money market deposits* 1,388 1,280 1,576

Debt (excluding lease liabilities) (1,319) (858) (1,324)

Lease Liabilities (536) (623) (578)

Net debt (467) (201) (326)

Net assets 2,092 2,516 2,985

*Excludes restricted cash

**Unearned revenue relating to departing flights in April and May has been reclassified as trade and other payables

14

Utilising flexibility in Fleet Current contractual Max

New Plan Min

1) 335 aircraft in 2020 new plan is subject to the sale/exit of 6 old aircraft 2) Chart shows contractual arrangements with Airbus and current lessors but excludes any future potential, opportunistic fleet additions

• Deferred 24 aircraft deliveries to beyond 2025

• Leads to re-timing of pre delivery payments

• Utilising flexibility of 24 operating leases due for renewal over the coming period

• Post completing SLB programme, around 50% of fleet still unencumbered, leaving further funding options available

15

326 328

350

305

327

337 3351

302

281 272

260

270

280

290

300

310

320

330

340

350

360

Current fleet 2020 2021 2022 2023

New Plan Max2

(excludes potential, opportunistic fleet additions)

Current plan expects easyJet will be at 302 aircraft by Y/E 2021.

As @ 16/4

0

200

400

600

800

1,000

1,200

1,400

HY'20 FY'21 FY'22 FY'23

New Aircraft Maintenance

Lease payments Other

Gross capital expenditure

16

£400m

£600m

Guidance range

H2’20

£900m

£1,400m

£600m £600m

Fuel and foreign exchange hedging

17

Fuel Hedging and Ineffectiveness

• Pre Covid-19 fuel was 71% hedged @ $654/MT for FY20 and 51% hedged for FY21 @ $638/MT

• At H1 FY20 a charge of £164m was recorded as hedge ineffectiveness largely driven by over hedged amounts on Jet Fuel and foreign exchange related to H2 FY20 period

• This will have a further impact in H2 2020

• Over-hedged amounts likely to cause degree of volatility in income statement until maturity and were included as part of our scenario planning

Current Hedge Position

• Additional Jet hedging temporarily paused for time periods from April 2020 through to October 2021

• Jet Fuel hedging continues for later time periods, to take advantage of the low-price environment.

• FY22 jet fuel requirement is currently 35% hedged @ $513/MT

ceo update Johan Lundgren – CEO

easyJet is back flying!

10

85

155 147

June September July August

Europe with confidence Expected ramp up for Summer 2020

Forecast Peak Operating Aircraft1

Early signatory to EASA’s Aviation Industry Charter for COVID-19:

• To ensure passengers are aware of measures taken

• To avoid people with symptoms arriving at airports

• To reduce the risk of transmission:

• Within airports

• At point of boarding

• Whilst on board

19

1) Equivalent aircraft operating based on average utilisation. Due to constraints in building the schedule, actual utilisation may be lower and require a higher number of aircraft to operate the equivalent schedule

easyJet’s first day back!

20

Safety is always our #1 priority

21

Safety for our crew & customers

Have implemented a number of Bio-security measures:

• Daily disinfection process which provides surface protection from viruses that lasts for at least 24 hours

• All passengers and crew required to wear masks onboard at all times

• Bistro and Boutique service will not be available on initial flights

easyJet aircraft are already fitted with state of art filtration technology, filters 99.97% of airborne

contaminants in the cabin including viruses & bacteria

easyJet - leading the recovery Worth– UK1

1) UK survey data- Worth is the proportion of survey respondents selecting “Worth more than it costs” .Price is the average score achieved on a 7 point scale converted to a percentage of the maximum score of 7 (Costs the most)

2) KPMG Nunwood Relationship survey we run weekly. This is up to 1st June 2020.

22

Price– UK1

63

Jet2

52

84

British Airways

Norweigan

58

easyJet Ryanair

57

Vueling

65

Lufthansa

73

Flybe

48 45

Wizz Air

60

Vueling

78

72

British Airways

73

Norweigan

69

76

Jet2

66

Lufthansa Flybe Wizz Air easyJet Ryanair

74

79 1. Short-haul recovery ahead of long-haul

• Lower government restrictions impact

• Greater consumer confidence to travel

• Leading network offer

2. Consumers will seek value in response to weaker economic conditions

• 2008/9 downturn showed a 9% shift in customers trading down to better value

• easyJet provides customers with the leading value versus the competition

3. Leisure travel to return before business

• 89% of consumers first trip will be for leisure2

• 68% of leisure customers expect to fly the same amount or more (versus 27% for business customers)

Our plan – delivering our strategy

23

#1 or #2 in primary airports

Winning our customers’

loyalty

The right people

Innovating with data

Value by efficiency

Seamlessly connecting Europe with the warmest welcome in the sky

Market leading network

24

#1 or #2 in primary airports

2019 Top 50 European cities by GDP/capita1. Bubbles represent easyJet touching capacity3.

1) Source: Oxford Economics Global Travel Service city forecast CY2019 2) Source: CY 2019 actuals (TM1)

1 2 Other / Non base

Leading positions in major European cities

easyJet’s network provides a competitive advantage that can not

easily be replicated

Our scale in key cities across Europe can not be

matched

We will retain fleet flexibility to respond and

seek advantage

120

20

2.0

100

3.0

40

60

0.0

160

80

1.0 0.5 3.5 1.5 2.5 4.0

140

4.5 5.0 5.5 6.0 6.5 9.5 10.0 0

Hamburg

Milan

Geneva

Amsterdam

London

Zurich

Belfast

Lyon

Edinburgh

Stockholm

Paris

Glasgow

Basel

Vienna

Dublin

Berlin Warsaw

Manchester Nice

Rotterdam

Newcastle

Population (m)

Toulouse

Bristol

Frankfurt

GD

P/c

ap

ita

($

00

0s)

Prague Madrid

Base ranking

Sources: easyJet fleet plan and network base plan, FY21, Contribution based on YTD March 31st 2020

Network strength enables profitable flying #1 or #2 in

primary airports

Profitability by base The strong network enables easyJet to be efficient with its network choices, with an absolute emphasis on maximising returns

Competitors reducing capacity in key markets will present opportunities to improve performance

We retain the flexibility to respond and seek advantage

25

Base profitability rank

11 5 20 1 2 26 3 7 6 4 9 25 15 10 28 12 13 14 16 29 17 18 19 21 22 23 24 27 30 8

Co

ntr

ibu

tio

n p

er

blo

ck

ho

ur

by

ba

se

Scale allows capacity to be adjusted to match demand and opportunistic growth

Candidates for capacity reduction / closure

illustrative

1) PwC Traveller Sentiment Survey, May 2020, Base 1,005, Q. When planning to book your next flight / hotel, please rank the following factors based on importance to you, once the social distancing recommendations are lifted. 2) Trust survey 2020. % of respondents naming each airline as trustworthy

Winning our customers

loyalty easyJet – driving customer confidence easyJet is the leading low cost airline

in terms of trust by market2

26

”

Customers trust easyJet more than other low cost carriers

Factors important to booking the next flight after social distancing restrictions are lifted1.

29%

34%

Price

Brand trust

15%

Loyalty program

Flight schedule

Change policy

12%

11%

1st 2nd 3rd

UK

France

Switzerland

Germany

Italy

Netherlands

Portugal

As demand returns, consumers will move to trusted brands

+21 pts

+17 pts

+32 pts

+8 pts

+5 pts

tie

tie

27

Winning our customers

loyalty

• Positive impact of easyJet actions

o Cost focus at the airline creates value in Holidays

o Provides customers with confidence to travel

• No capacity constraints from cuts at airline

• Variable cost base

o Very low fixed costs

o No commitments

• We have seen a significant shift in hoteliers seeking a relationship with easyJet

• Position of financial strength, particularly relative to other tour operators and OTA’s

W’20, launched March

• Added Egypt for winter sun

S’21, launched March

• Initial indications are positive

c.65% of disrupted pax

rebooking vs refund

Easyjet holidays

28

Value by efficiency

* Assumes – No further spike of COVID-19 across EU, - Airline only

Value by efficiency

A major cost-out program has been launched to respond to COVID19 to:

• Drive cash generation

• ensure easyJet emerges with a cost competitive position

• Tactical and sustainable cost savings across the entire business

• Delivered over 18-24 months

Cost-out Programme Driving operational efficiency

• Swift action in March / April to reduce operational cash burn

• Proposed staff reduction by up to 30%

• Simpler airport handling to drive lower costs

• Bringing some maintenance in-house at lower cost

• Accelerating lease returns with MRO deals done

• Fuel efficiency program driven by sustainability

• Focus to make Gatwick London’s best product

Target of delivering around

FLAT CPS ex fuel @ cc* FY’21 vs FY’19

Leading Sustainability position

29

Tackling carbon emissions easyJet were the world’s 1st major airline to operate net zero carbon flights across our entire network, by offsetting the carbon emissions from the fuel used for all of our flights. We continue to work to minimise the carbon impact of our operations

40%

58%

2%

Thinking about sustainability the SAME as before

Thinking about sustainability MORE than before

Thinking about sustainability LESS than before

> The importance of sustainability has increased following the pandemic, with 98% thinking about the environment /

sustainability the same or more than before

Sustainability front of mind for customers

*Publicis sapient survey, sample size

Forward looking

30

• Q4 2020 capacity – c.30%:

• Encouraging booking numbers for easyJet holidays

• easyJet expects to deliver c. FLAT CPS ex fuel at cc in FY’21 vs FY’19

• At this stage, given the level of continued uncertainty, it is not possible to provide financial guidance for the remainder of the FY20 financial year.

Decisive action undertaken as soon as the crisis began:

• Minimised cash burn

• Maximised liquidity with cost reductions, fleet deferrals and additional funding

• Equity raise under way

Investment-grade balance sheet, one of the strongest in the industry

easyJet leading the recovery:

• Strong H1 performance

• Trusted easyJet Brand drives confidence in European travellers

• easyJet’s industry leading network of primary airports allows a disciplined approach to delivering profitable flying

• Cost-out programme to deliver around Flat CPS ex Fuel @cc in FY’21 vs FY19

easyJet will be leading the post COVID-19 recovery

31

easyJet - Positioned to win

Q&a

appendix

Loss after tax £ m H1 2020 H1 2019 Change*

Headline loss before tax (193) (275) 29.8%

Headline tax (charge)/credit (1) 54 (101.8%)

Headline loss after tax (194) (221) 12.2%

Total loss before tax (353) (272) (29.8%)

Total tax credit 29 54 (46.3%)

Total loss after tax (324) (218) (48.6%)

Total effective tax rate 8.3% 19.7% 11.4ppt

* Favourable/(adverse)

34

Revenue total and per seat

*Favourable/(adverse)

Total Group reported

H1 2020 H1 2019 Change*

Passenger revenue 1,833 1,824 0.5%

Ancillary revenue 549 519 5.7%

Total revenue 2,382 2,343 1.7%

£ Airline per seat Airline

H1 2020 H1 2019 Change*

Passenger revenue 42.93 39.48 8.7%

Ancillary revenue 12.67 11.23 12.8%

Total revenue 55.60 50.71 9.6%

£ Airline per seat @CC Airline

H1 2020 H1 2019 Change*

Passenger revenue 43.15 39.48 9.3%

Ancillary revenue 12.72 11.23 13.3%

Total revenue 55.87 50.71 10.2%

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 16.65 (0.11) (0.6%) (0.3%) • Annualised increases in charges at regulated and non regulated airports • Annualised ground handling contract in the UK

Crew 9.32 (0.66) (7.5%) (1.5%) • Pay increases • Low attrition • Low productivity in March 2020

Ownership 6.58 (0.99) (17.8%) (2.3%) • Increase in depreciation due to new aircraft purchased

Overheads & other income 6.65 (1.32) (24.7%) (3.0%) • Increased disruption costs • Loss on sale of EU ETS allowances

Navigation 3.57 0.15 4.1% 0.4% • Decrease in rates from Eurocontrol

Maintenance 4.47 (1.22) (36.8%) (2.8%) • Engine provision catch up • Increase in base maintenance

Total Headline CPS excluding fuel 47.24 (4.15) (9.5%) (9.5%)

Fuel 12.51 0.07 0.5%

Total Headline CPS 59.75 (4.08) (7.2%)

*Favourable/(adverse)

36

Fleet breakdown H1 2020 FY 2019 Change

A319 (Leased) 64 56 8

A319 (owned) 59 69 (10)

A319 Total 123 125 (2)

A320 (Leased) 43 43 0

A320 (owned) 160 157 3

A320 Total 203 200 3

A321 (owned/Total) 11 6 5

Total fleet 337 331 6

Leased 107 99 8

Number unencumbered 230 232 (2)

Percentage of A320s in fleet 60% 60% 0ppt

Average seats per aircraft 176 175 1%

37

Return on Capital Employed H1 2020 H1 2019

Headline loss before interest and tax (174) (255)

UK corporation tax rate 19% 19%

Normalised headline operating loss after tax (NOPAT) (141) (207)

Average shareholders’ equity 2,539 2,849

Average net debt 397 168

Average adjusted capital employed 2,936 3,017

Headline Return on capital employed (4.8)% (6.8)%

38

Non-headline items H1 2020 H1 2019 Change* Description

£ m £ m £ m

Sale and leaseback gain 1 2 (1) The sale and leaseback of 10 A319 aircraft in both years resulted in a profit on disposal of the assets.

Brexit-related costs - (4) 4 Cost of establishing a multi-AOC post-Brexit structure following the UK’s referendum vote to leave the European Union (‘EU’).

Commercial IT platform - 2 (2) Release of the unused FY’18 provision for the write-down of IT assets under development which will no longer be utilised by the business.

Balance sheet foreign exchange loss 3 3 - Foreign exchange gains or losses arising from the retranslation of foreign currency monetary assets and liabilities held in the statement of financial position.

Fair value adjustment (164) - (164) Due to the full grounding of the fleet and the lower capacity expected for several months thereafter, easyJet is in a significantly over-hedged position from both a jet fuel and FX perspective.

Total non-headline items (160) 3 (163)

*Favourable/(adverse)

39

Currency impact Revenue Costs

H1 2020 H1 2019 H1 2020 H1 2019

Sterling 42% 41% 33% 32%

Euro 48% 48% 32% 37%

US dollar 1% 1% 28% 24%

Other (principally Swiss franc) 9% 10% 7% 7%

Average effective Euro rate for revenue for H1 2020 was €1.14 (H1 2019: €1.13)

Average effective Euro rate for costs for H1 2020 was €1.17 (H1 2019: €1.14)

40