#1easyJet HY23 RESULTS 18 May 2023 easyJet ロ 生 - Re#2MAKING LOW COST TRAVEL EASY Building Europe's best network > Largest airline in Europe at primary airports > Berlin optimisation - c.190% performance improvement¹ > Low risk growth - 9 aircraft added into Greek Islands with no margin dilution Delivering ease and reliability Ease - customer experience focus > Reliability OTP delivery > Operational ramp up complete - Easter strong and reliable (E Transforming revenue > Step changed ancillaries with continuing growth > easyJet holidays > Expect to make >£80m in FY23 > Launching first international source market (Swiss), departures from early 24 Driving our low cost model > Lowest cost carrier on our primary network > Cost efficiencies unlocked through initiatives such as BER hanger & Descent profile optimisation H2 CPS ex fuel flat year on year Strategic priorities that will create value for our shareholders Expect to accelerate delivery of medium term targets Mid teen EBITDAR Margin Low to mid teen ROCE Holidays £100m+ PBT contribution Grow capacity back to 105m 1) Based on contribution per block hour HY 2023 RESULTS 2#3easyJet FINANCIAL REVIEW Kenton Jarvis - CFO easyJet#4KEY PERFORMANCE INDICATORS HY23 Seats flown (m) Passengers (m) Load factor (%) Average sector length (km) Airline revenue per seat: (£) Fuel cost per seat: (£) Airline headline cost per seat ex fuel: (£) Airline headline cost per seat: (£) Airline EBITDAR per seat: (£) Airline EBIT per seat: (£) Airline headline loss before tax per seat: (£) Holidays passengers (m) Holidays profit/(loss) before tax² (£m). Headline EBITDAR Margin Headline ROCE 1) Favourable/(adverse) 2) Holidays numbers include elimination of intercompany airline transactions HY 2023 RESULTS 4 HY23 HY22 Change 37.9 30.3 25% 33.1 23.4 41% 87.5 77.3 10.2ppt 1,192 1,131 5% 66.46 47.61 40% 20.43 11.94 (71)% 57.15 53.48 (7)% 77.58 65.42 (19)% (2.12) (6.78) 69% (10.60) (15.88) 33% (11.12) (17.80) 38% 0.6 0.2 200% 10 (5) 300% (2.6)% (13.9)% 11.3ppt (12.0)% (12.0)% Oppt#5FINANCIAL PERFORMANCE HY23 HY22 Change £m £m Passenger revenue Ancillary revenue Holidays revenue² Group revenue 1,749 985 78% 767 459 67% 173 54 220% 2,689 1,498 80% Headline costs: Airline EBITDAR costs ex fuel (1,824) (1,287) (42)% Fuel (773) (362) (114)% Holidays EBITDAR costs² (161) (57) (183)% Group headline EBITDAR (69) (208) 67% Airline depreciation, amortisation & dry leasing costs (321) (276) (16)% Holidays depreciation & amortisation² (2) (2) Group headline EBIT (392) (486) 19% Group interest & other finance charges & income (46) (61) 25% Group balance sheet revaluations Group headline loss before tax Non-headline items. Group loss before tax 1) Favourable/(adverse) 2) Holidays numbers include elimination of intercompany airline transactions 27 2 1,250% (411) (545) 25% (4) (12) 67% (415) (557) 25% HY 2023 RESULTS 5#6AIRLINE REVENUE PER SEAT Reported RPS 40% HY'23 HY'22 HY'19 RPS @CC3 37% Ticket Yield¹ £52.86 £42.03 26% £43.79 21% Ancillary Yield2 £23.12 £19.56 18% £12.47 85% Total Yield £75.98 £61.59 23% £56.26 35% £13.06 £1.02 £66.46 £4.77 £65.44 Primary network delivers ticket yield uplift +26% YoY, demonstrating: Strength of network ■ Aircraft reallocation delivering > Ancillary yield continues to outperform, +18% YoY > Total yield up 23% YoY, which when coupled with LF gives RPS +40% > RPS +37% at constant currency, RASK +30% at constant currency £47.61 HY 2022 Reported Passenger RPS movement Ancillary RPS movement HY 2023 @CC FX 1) Ticket Yield: Airline passenger revenue per seat sold 2) Ancillary Yield: Airline ancillary revenue per seat sold 3) CC: Constant currency - excludes the impact of foreign exchange from results HY 2023 RESULTS 6 HY 2023 Reported#7AIRLINE HEADLINE COST PER SEAT HY23 vs HY22 vs HY19 Available seat kilometres (m) 45,108 32% (9)% Average sector length (km) 1,192 5% 12% £1.67 due to 10ppts Load Factor improvement Headline CPS ex. fuel @ CC = 5% Headline CASK ex. fuel @ CC = 0% £0.58 £0.41 £0.25 £3.04 £0.66 £68.21 (£0.72) £65.51 (£1.52) £2.77 £77.58 £6.60 £74.81 HY 2022 headline cost per seat excl. balance Airports Navigation Crew & Ground Selling & Marketing Maintenance Ownership costs Other Handling sheet revals¹ HY 2023 headline cost per seat at CC before fuel and balance sheet Fuel 1) HY 2022 headline CPS (£65.42) + balance sheet revals (£0.09) = HY headline cost per seat excl. balance sheet revals (£65.51). 2) Other includes disruption, other costs and other income. HY 2023 RESULTS 7 revals variances HY 2023 headline cost per seat at CC before balance sheet revals variances FX HY 2023 headline cost per seat#8FUEL & FX HEDGING Jet Fuel H2'23 H124 H2'24 Hedged position 75% 52% 22% Average hedged rate ($/MT) 885 868 806 Current spot ($/MT) at 17.05.23 c.720 USD H2'23 H124 H2'24 Hedged position 77% 55% 23% Average hedged rate (USD/GBP) 1.24 1.21 1.23 Current rate (USD/GBP) at 17.05.23 c.1.25 Lease payments and Capex > US dollar lease payments remain hedged for the next three years @ 1.30 > Capex hedged for the next 12 months in underlying currency (EUR or USD) Carbon Update > Obligations covered including free allowances ☐ CY23: 96% covered at €41/MT HY 2023 RESULTS 8 easyJet#9CASHFLOW Net cash outflow from financing activities £(372)m 61 3,640 (433) 1,338 (343) Cash & MMDS @1 Oct 2022 Net proceeds from sale and leasebacks Repayment of debt financing Unearned revenue Movement in working capital¹ 1) Excluding movements in unearned revenue and derivative financial instruments. HY 2023 RESULTS 9 Cash generation £375m 39 (585) (74) 3,486 (157) Capex including lease payments Operating loss excl. D&A Other movements FX Cash & MMDs @31 Mar 2023#10STRONG INVESTMENT GRADE BALANCE SHEET £m Goodwill and other intangible assets Property, plant and equipment (including RoU) Derivative financial instruments Equity investments 31 Mar-23 611 4,744 31 Mar-22 581 4,683 (126) 471 31 30 Other assets (excluding cash and money market deposits) 1,582 1,018 Unearned revenue (2,381) (1,780) BBB/Baa3 Trade and other payables (1,624) (1,362) Credit rating Other liabilities (excluding debt) (760) (605) Capital employed Cash and money market deposits Debt (excluding lease liabilities) Lease Liabilities Net debt Net assets 2,077 3,036 3,486 3,505 (2,682) (3,046) (960) (1,055) (156) (596) 1,921 2,440 HY 2023 RESULTS 10#11OUR FLEET Fleet flexibility 380 373 349 336 319 328 312 331 299 H1 FY23 FY23 FY24 FY25 FY26 Current Contractual Min Current Contractual Max Gross Capex c£1.7bn c£1.5bn c£1.Obn c₤1.8bn FY23 FY24 FY25 FY26 Aircraft deliveries 8 18 27 28 Aircraft Payments Maintenance (owned & leased) Leased Aircraft ■ Other HY 2023 RESULTS > Current agreed Airbus order book: 163 firm orders (130 A320s and 33 A321s) due between FY23 & FY28 > All FY23 deliveries purchased through free cash flow > Of the total fleet, 55% is owned, 40% is currently unencumbered Aircraft Type A320neo & A321neo A320ceo A319 Ownership 72% 63% 30% > Capex assumptions; ■ CEO aircraft extensions & externally sourced aircraft mitigating delivery delays. 11#12easyJet CEO UPDATE Johan Lundgren - CEO easyJet#13OUR STRATEGIC FOCUS Making low-cost travel easy Building Europe's best network Transforming revenue Delivering ease and reliability Driving our low-cost model Europe's most loved airline - winning for our customers, shareholders and our people Platform to create value for our shareholders 13#14BUILDING EUROPE'S BEST NETWORK Leveraging slot growth on existing network > Growth where returns are above network average contribution #1 carrier into the Greek Islands, +65% growth with no dilution to historical returns Porto - 67% growth, taking #2 position from TAP > Launching Birmingham base for FY24 Capacity Growth & Reallocation¹ Berlin rightsized > c.190% improvement in profitability through: A focus on key city pairs & leisure flows Removal of German domestics Increased utilisation from longer sector length > Remain #1 carrier in Berlin Berlin delivering higher returns Expected contribution per block hour for FY23 UK +11 AIRCRAFT PORTUGAL +11 AIRCRAFT DESTINATION BASES +11 AIRCRAFT GERMANY -24 AIRCRAFT c.190% FY19 FY20 FY21 FY22 FY23 1) vs 2019, seat capacity converted into Aircraft equivalent HY 2023 RESULTS GREEK ISLANDS +9 AIRCRAFT Reallocating aircraft to deliver higher returns 14#15TRANSFORMING REVENUE Step-changed revenue generation grows in line with ticket yields Continued delivery as capacity returns > Industry leading dynamic pricing > Ancillary yield +£10.65 vs H1'19 Airline ancillary revenue mix 30% 30% 29% Future developments > Working towards total basket optimisation - Focus on improved merchandising – benefits realised from FY24 Algorithm enhancements > Closed loop Wi-Fi - AirFi In place on entire fleet 23% 22% 21% 20% 2017 2018 2019 2020 2021 2022 H123 HY 2023 RESULTS ☐ Order to seat unlocked ahead of peak summer > Pre order capability enabled for FY24 Focus on duty free & high value items Revenue transformation - more to come 15#16easyJet holidays Fastest growing, lowest cost, highest margin travel business in the UK Will make >£80m PBT in FY23 >60% Planned FY23 passenger growth 5% UK market share 黑 80% Program sold 88% 菌 Direct booking through unpaid channels 87% Customer satisfaction 96% Variable cost base 00 70% Likely to rebook +115% Winter 23 bookings Switzerland source market > Departures in early 2024 > c.6m easyJet seats on Swiss summer leisure flows Largest carrier to Spain, Portugal, Croatia, Morocco & France > Multi-currency technology platform enables low risk expansion into other source markets. HY 2023 RESULTS Further source markets to follow 16#17DELIVERING EASE AND RELIABILITY Industry leading customer perception - #1LCC¹ Driving customer preference through Ease-customer experience focus UK FR CH Brand awareness #1 #1LCC #1LCC Delivering on value #1 #1 Delivering on network #1LCC #1LCC #1LCC #1 #1LCC #1LCC #1LCC #1LCC #1LCC #1LCC 1) Source: Kantar Brand Tracker (Sep 22) x Delivering on reliability Making travel easy Investment into resilience delivering No.1/2 OTP in core markets¹ 79% Customer satisfaction 78% Seats booked by returning customers Communications Mitigating anxiety through timely information flows Airport journey Reduce queuing through technology enhancements Inflight offering Personalised through connected technology Disruption management Streamlined policies & automated solutions Reliability on time performance delivery Processes oversight: - Base driven focus & reporting Prior to Departure Crew rostering & standby allocation On the day First wave execution, key to delivery Improving the customer journey 1) Core markets of UK, France, Germany, Italy, Netherlands and Switzerland where a carrier has >10% market share. HY 2023 RESULTS 17#18PIONEERING SUSTAINABLE TRAVEL Net zero roadmap - development ✓ SAF supply secured to 2027 ✓ Descent profile optimisation - 135 aircraft upgraded ✓ World's first run of an aeroplane engine fuelled by green hydrogen ✓ Improved or maintained all ESG Carbon emissions intensity gCO₂e per RTK¹ 2022 Operational Efficiencies Airspace Modernisation Fleet Renewal with NEO Sustainable Aviation Fuels (SAF) Zero Carbon Emissions Aircraft 78% reduction by 2050 2035 SBTI Target - 35% reduction² 2035 SBTI Validated 2050 SBTI target - 57% reduction² 35% reduction by 2035 As an interim target easyJet plc commits to reduce well-to-wake GHG emissions related to jet fuel by 35% per revenue tonne kilometre (RTK) by FY2035 from a FY2019 base year³ Residual emissions addressed through carbon removals easyJet roadmap 2050 SBTI Aligned 1) RTK = Revenue Tonne Kilometres. 2) Based on SBTI aviation sectoral decarbonisation pathway for well below 2°C scenario. Targets versus FY 2019 baseline as the last normal operating year. 3) The target boundary includes biogenic emissions and removals from bioenergy feedstocks (SAF). ratings HY 2023 RESULTS 18 easyJet#19DRIVING OUR LOW COST MODEL H2 Cost Development > Expect headline CPS ex fuel to be broadly flat YoY - > Deleveraging underway – reducing financing costs Cost actions delivered > Descent profile optimisation software retrofit ■ Lower thrust & fuel burn during descent saving 50kg fuel per flight > Berlin hangar opened ■ 41% average cost saving per aircraft visit > Self service management enhancements ■ Over 70% of disrupted customers using self-service platform Future cost actions > Productivity & utilisation focus Capacity restoration through summer 23 Further winter capacity restoration in FY24 > Up-gauging the fleet Increased average seat count NEO mix benefit on fuel + airport incentives HY 2023 RESULTS Cost advantage on our primary network 19#20SUMMER 23 Leading presence > Strengthened leisure network Q4 capacity at 108% vs 2019 excluding Berlin rightsizing UK beach capacity at 128% vs 2019 #1 carrier into the Greek Islands 57 new routes launched for Summer 23 Capacity in line with expectations > H2 c. 56m seats, c.9% increase YoY > Q4 Capacity around pre pandemic levels HY 2023 RESULTS Capacity +8% Beach +21% Non EUR Growth through slot additions in the Greek Islands & Portugal Growth primarily serving North African beach markets European consumer continues to be strong 20 20 +6% Domestic Largest UK domestic carrier - added capacity post Flybe failure +13% Continued City H2 19 H2 22 H2 23 recovery as city & business travel returns#21SUMMARY AND OUTLOOK Outlook Value creation Expect to accelerate delivery of medium term targets > Q3 RPS expected to be +20% YoY > Momentum continues with booking window returning towards normalised levels Q3 73% booked: +1ppts vs FY22 Q4 36% booked: +3ppts vs FY22 > Expect H2 headline CPS ex fuel to be broadly flat YoY Radically changed network delivering > Transformed Ancillary revenue generation > Balance sheet strength Investment grade balance sheet Aircraft deliveries taken into ownership De leveraging underway Positioned to deliver strong shareholder returns Mid teen EBITDAR Margin Low to mid teen ROCE Holidays £100m+ PBT contribution Grow capacity back to 105m 21#22easyJet Q&A easyJet#23easyJet APPENDIX easyJet#24MEDIUM-TERM TARGETS Mid teen EBITDAR margin Low to mid teen ROCE Holidays contributing £100m+ PBT Grow capacity back to 105m HY 2023 RESULTS easyJet 24 224#25DEBT MATURITY PROFILE 1,400 1,200 1,000 €500m Eurobond repaid in Feb 23 800 600 400 200 FY23 1) Based on current lease commitments. HY 2023 RESULTS ■UKEF ■Medium Term Notes ■IFRS16 Lease Liability 1 FY24 FY25 FY26 FY27 FY28 FY29 25#26HEADLINE GROUP INCOME STATEMENT £m Passenger revenue Ancillary revenue Total revenue Fuel Airline 1,749 Holidays Intra-group Group transactions 1,749 767 239 (66) 940 2,516 239 (66) 2,689 (773) (773) Airports and ground handling (735) (735) Crew (424) (424) Navigation (165) (165) Maintenance (174) (174) Holidays direct operating costs (195) 63 (132) Selling and marketing (89) (14) - (103) Other costs (238) (18) Other income 1 MI 3 (253) 1 EBITDAR (81) 12 (69) Aircraft dry leasing (1) (1) Depreciation (309) (309) Amortisation of intangible assets EBIT (11) (402) (2) 22 (13) 10 Net finance charge (Loss)/profit before tax Tax (19) (421) 10 107 - (316) 10 (392) (19) (411) 107 (304) (Loss)/profit after tax HY 2023 RESULTS 26#27LOSS AFTER TAX £m Headline loss before tax Headline tax credit Headline loss after tax Non-Headline items Non-Headline tax credit Total loss after tax Effective tax rate 1) Favourable/(adverse) HY 2023 RESULTS 27 HY23 HY22 Change (411) (545) 25% 107 123 (13)% (304) (422) 28% (4) (12) 67% 1 3 (67)% (307) (431) 29% (26)% (23)% 3ppt#28REVENUE BREAKDOWN Group revenue, £m Airline passenger revenue Airline ancillary revenue Holidays revenue² Total revenue Airline revenue per seat, £ Passenger revenue Ancillary revenue Total revenue Ancillary revenue mix Airline revenue per seat at constant currency, £ Passenger revenue Ancillary revenue Total revenue Ancillary revenue mix 1) Favourable/(adverse) 2) Holidays numbers include elimination of intercompany airline transactions HY 2023 RESULTS 28 HY23 HY22 Change 1,749 985 78% 767 459 67% 173 54 220% 2,689 1,498 80% HY23 HY22 Change 46.24 32.49 42% 20.22 15.12 34% 66.46 47.61 40% 30% 32% HY23 HY22 Change 45.55 32.49 40% 19.89 15.12 32% 65.44 47.61 37% 30% 32%#29ADDITIONAL FINANCIAL INFORMATION FY23 Depreciation vs FY22 c. £(130)m increase in depreciation YoY primarily due to: £(71)m maintenance discounting benefit in FY22 driven by increase in USD interest rates £(40)m maintenance reserve increase due to an increase in the leased fleet, planned increase in flight volumes and adverse FX & inflationary cost pressure £(20)m net impact driven by growing the fleet from 320 aircraft in FY22 FY 2022 RESULTS 29 29#30HEADLINE COST PER SEAT Cost per Variance to Variance to Weighted variance at constant HY22 at HY22 at H1'23 Drivers H2'23 Direction seat constant constant currency currency' currency 1,2 £ £ % % Increased load factors Airports and ground handling 19.41 (3.04) (19)% (6)% Inflation at regulated airports with RPI/CPI linked contracts Inflation from crew pay deals . Crew 11.19 (0.41) (4)% (1)% Early summer 23 recruitment & resilience, partially offset by: Fixed costs being spread over higher flying volumes . Inflation at regulated airports with RPI/CPI linked contracts Resilience & Inflation from crew pay deals, partially offset by; Fixed costs being spread over higher flying volumes Navigation 4.36 (0.58) (16)% (1%) EuroControl rate increase implemented in January 22 & 23 • EuroControl rate increase implemented in January 23 Maintenance 4.59 0.72 14% 1% Fixed costs being spread over higher flying volumes • Inflationary pressure on materials Removal of 15 wet lease aircraft compared to the prior year, now being flown on own production, & incurring maintenance, partially offset by; . Fixed costs being spread over higher flying volumes 15 wet leased aircraft utilised in summer 22 only left the fleet at the end of October • Zero wet leased aircraft in the fleet for H2 23 • Reduced disruption cost, partially offset by; Overheads & other income 8.60 (0.91) (12)% (2)% Increased disruption event count due to benign prior year due to low flying volumes & current H1 23 seeing adverse weather and industrial action, partially offset by a provision true up Fixed costs being spread over higher flying volumes • • Increased royalty payments as revenue increases General inflation & investment in cyber security and merchandising technology 0.52 Depreciation & amortisation 8.48 0.63 7% 1% Financing • See slide 29 . Financing costs being spread over higher flying volumes 0.89 44% 2% Financing costs being spread over higher flying volumes Increased interest rates where easyJet is a net benefiter • Increased interest rates where easyJet is a net benefiter, partially offset by; Impact of 6 SLB transactions completed in H1'23 Headline CPS ex fuel 57.15 (2.70) (5)% (5)% Average sector length +5% Average sector length expected to be flat in H2 YoY Fuel 20.43 (6.60) (55)% Increased fuel prices, alongside the weaking of GBP against USD Increased fuel prices, alongside the weaking of GBP against USD Headline CPS 77.58 (9.30) (14)% 1) Favourable/(adverse) 2) Variances weighted against Headline CPS ex fuel variance HY 2023 RESULTS 30#31LOWEST COST CARRIER ON OUR PRIMARY NETWORK easyJet competitors on head to head routes in FY231 ■ Legacy & Tour Operators ■ Others incl LCC 1) OAG data YE Sep 2023, Short Haul = under 5,000km. Excluding departures to/from Russia and Turkey. 2) Converted from reported currency and sector length adjusted HY 2023 RESULTS 31 31 easyJet H1'23 CASK (excl. fuel) vs. competitor airlines² (pence) BA AF KLM LH easyJet Passenger airlines#32FLEET PROFILE A319 (leased) A319 (owned) A319 Total % of fleet A320 (leased) A320 (owned) A320 Total % of fleet A320neo (leased) A320 neo (owned) A320 neo Total % of fleet A321 (leased) A321 (owned) A321 Total % of fleet Total fleet Leased Number unencumbered Percentage of neos in fleet Average seats per aircraft 1) Favourable/(adverse) HY 2023 RESULTS 32 32 H1 2023 H1 2022 Change 67 64 3 29 35 (6) 96 99 (3) 29% 31% (2%)pts 63 62 1 105 105 168 167 51% 52% 1 +1%pts 7 7 42 34 8 49 41 8 15% 12% +3%pts 11 11 4 4 I 15 15 5% 5% 328 322 6 148 144 4 130 128 2 20% 17% +3%pts 179 179#33NON-HEADLINE ITEMS Sale and leaseback (loss)/gain Restructuring costs credit/(charge) Fair value adjustment credit/(charge) Total non-headline items (4) (12) 8 1) Favourable/(adverse) HY 2023 RESULTS HY23 HY22 £ m £ m Change¹ £ m (21) 21 Description Nil impact as a result of the sale and leaseback of 6 aircraft in the period. (HY22: £21 million loss as a result of the sale and leaseback of 10 aircraft in the period). £4 million charge, due to a £3 million non cash loss on the final return of slots at Berlin Brandenburg airport following the rightsizing of the operation and £1 million charge due to restructuring headcount provision true- ups (HY22: £8 million credit as a result of restructuring headcount provision true-ups). (4) 8 (12) 1 (1) Nil impact in HY23. (HY22: £1m gain due to discontinuation of over-hedged positions). 33 33#34HEADLINE FUEL & CURRENCY IMPACT Fuel impact Fuel $ per metric tonne Market price Effective price US dollar rate HY23 HY22 Change¹ 1,012 762 (250) 860 599 (261) Market price 1.25 1.34 (9) cents Effective price 1.24 1.38 (14) cents Actual cost of fuel £ per metric tonne 691 434 (257) HY23 currency impact on headline LBT2 EUR CHF USD Other Total £m Revenue 17 19 2 1 39 Fuel (1) (70) (71) Headline costs excluding fuel Total (36) (16) (11) (1) (64) (20) 3 (79) (96) 1) Favourable/(adverse) 2) Excludes the impact of balance sheet revaluations HY 2023 RESULTS 34 34#35HEADLINE CURRENCY IMPACT Revenue Headline Costs¹ HY23 HY22 HY23 HY22 Sterling Euro US dollar 51% 45% 39% 37% 38% 45% 33% 24% 1% 0% 22% 33% Other (principally Swiss franc) 10% 10% 6% 6% HY 2023 RESULTS 1) HY22 figures have been restated to exclude the impact of non-headline costs, in addition US dollar and Euro values in HY22 reporting were transposed and have been corrected. Average effective Euro rate for revenue for HY23 was €1.15 (HY22: €1.17). Average effective Euro rate for headline costs for HY23 was €1.14 (HY22: €1.19). Average effective US dollar rate for headline income statement for HY23 was $1.26 (HY22: $1.37). 35 55#36Empty