introduction - easyjet

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


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


> 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


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

appendix

(Loss)/profit after tax


£ 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


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


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


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

introduction - easyjet

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