© Ryanair 2014

Warsaw – 17 Sep 2014

Peter Bellew

© Ryanair 2014

T h e F u t u r e o f LC C i n Po l a n d

1929 – Polish Aviation Innovation

2014 – A Great year for Poland

Ryanair – Changing Business in Poland

Ryanair’s Business Model

The Future of LCC in Poland

© Ryanair 2014

20 1 4 - G r e a t Ye a r f o r Po l a n d

10 years of EU accession

15 years of NATO membership

25 years since Third Polish Republic

Fastest growing economy in Europe - +3.3% recent quarter

Polish GDP doubled in 10 years €390 billion from €201 bn.

Polish economy grown faster than rest of EU, by 49% since 2003.

Avg. rest of the Union is only 11%.

© Ryanair 2014

E u r o p e ’s F a v o u r i t e A i r l i n e

Europe’s Lowest Fares/Lowest Unit Costs

Europe’s No 1, Traffic – 86m (No 1 or 2 in most markets)

Europe’s No 1, Coverage – 69 Bases

Europe’s No 1, C’mer Service – Low Fares/On-time/Bags/Canx

– Always Getting Better/Digital rollout

Fwd bookings & Ld factors rising since Sept 13

Aircraft orders (180 NG’s & up to 200 MAX’s) deliver 150mpa by FY24

Unblemished 30 year Safety Record

World’s highest rated airline, BBB+, S&P and Fitch

© Ryanair 2014

N o 1 F o r C o v e r a g e

69 bases

186 airports

30 countries

1,600+ routes

86m c’mers p.a.

304 a/c – all 737-800’s

Newest fleet (< 5 Yrs)

180 Boeing NG order

New 200 Boeing MAX order

© Ryanair 2014 6

S t r o n g M a r ke t Po s i t i o n

UK (115)

Germany (112)

Spain (103)

Italy (84)

France (73)

Portugal (20)

Belgium (17)

Ireland (16)

Poland (14)

Morocco (11)

13%

4%

18%

21%

6%

13%

21%

40%

27%

13%

RYA Share

Source: 2013 Dep. Seats per Capstats & Diio Mii. Mkt positions adj. for 2014 schedules.

Country (Cap m’s) No. 1 No. 2

Vueling

easyJet

easyJet

Jetairfly

AF-KLM

Wizz

easyJet

No. 3

IAG

Air Berlin

IAG

Alitalia

easyJet

TAP

SN Brussels

Aer Lingus

LOT

easyjet

Luft

AF- KLM

RAM

© Ryanair 2014

E u r o p e ’s L o w e s t F a r e s

LOW Ryanair

MEDIUM Norwegian

easyJet

Aer Lingus (s/h)

Air Berlin

HIGH Alitalia

Lufthansa

IAG

AF-KLM

Ave .Fare

+ 80%

+ 83%

+ 102%

+ 163%

+ 222%

+ 411%

+ 426%

+ 552%

% > Ryanair Avg. Fare

€46

€83

€84

€93

€121

€148

€235

€242

€300

€163

(-4%)

Source: Latest Annual Reports

© Ryanair 2014

E u r o p e ’s L o w e s t U n i t C o s t ( E x F u e l )

RYA EZY NOR

Staff

Airport & hand

Route charges

Own’ship & maint.

S & M + other

Total

% > Ryanair

€6

€8

€6

€7

€2

€29

€9

€21

€6

€9

€7

€52

+ 79%

€15

€14

€8

€21

€4

€62

+114%

€35

€8

€0

€16

€15

€74

+155%

LUV Spirit

€19

€6

€0

€19

€15

€59

+103%

€17

€27

€8

€29

€26

€107

+269%

AB1

Source: Latest Annual Reports

© Ryanair 2014

9

52 54

61 62

81.7

86

90

96

104

112

50

60

70

80

90

100

110

C’mers (m’s)

FY 2014

FY 2016 FY 2015 FY 2018 FY 2017 FY 2019

Ryanair Growth

Source: Latest traffic stats for 12 mths to Mar14 and company forecasts.

N o 1 F o r Tr a f f i c

© Ryanair 2014

Average saving: €117 per flight

x 86m customers p.a

= €10bn saving every year

S a v i n g E u r o p e > € 1 0 b n E v e r y Ye a r

Average Ryanair fare vs competitors

€46 €163*

* Aer Lingus, Easyjet, IAG, KLM-AF, Air Berlin

x 15

© Ryanair 2014

C u s t o m e r E x p e r i e n c e I m p r o v i n g

11

RECAPTCHA scrapped

24hr grace period

Quiet flights (early AM, late PM)

2nd free small carry on bag

B’rding card reissue & bag fees cut

New Groups & Corp. Travel Dept.

Allocated seating

New PayPal partnership

© Ryanair 2014

Simpler website (17 to 5 clicks)

“My Ryanair”, c’mer registration

“Fare Finder”, great response

GDS (Galileo/Worldspan) for business agents

New mobile app for smart phones

New Business Plus

Continuous IT & digital improvement underway

D i g i t a l E x p e r i e n c e I m p r o v i n g

© Ryanair 2014

F a m i l y e X t r a

50% allocated seating discounts, checked-in bags & travel insurance*

Reduced infant fees (now just €20/£20)

A free 5kg infant bag allowance

Discounted priority boarding*

Bottle warming & baby changing facilities

Two free pieces of infant equipment

Bring an approved car seat on board

Fly & Save bonus - 20% off your 3rd family flight p.a

*(when booked by an adult)

© Ryanair 2014

11 airports

4 bases

7 aircraft

122 routes

7m c’mers p.a.

7,000 jobs (ACI)

€820m savings p.a.

Poland’s No 1 airline

R y a n a i r – Po l a n d

© Ryanair 2014

27% of RYR c’mers travel on business

Business Plus from 295PLN

Flexibility on Ticket Changes

20kg checked-in bag allowance

Fast track airport security (incl WMI)

Priority boarding

Premium seats

B u s i n e s s P l u s

*(at selected airports)

© Ryanair 2014

2 based a/c

Base opens 23 Oct

23 routes W’14

7 new routes W14

276 weekly flights

2m c’mers p.a.

2,000 on-site jobs (ACI)

R y a n a i r E f f e c t – W a r s a w

© Ryanair 2014

W a r s a w D o m e s t i c Ro u t e s

Starts Freq Ryanair LOT

Warsaw – Gdansk Tue 28 Oct 2 x daily 78 PLN 376 PLN

Warsaw – Wroclaw Tue 28 Oct 2 x daily 78 PLN 388 PLN

* Prices for return flights on 28th Oct 14, booked 10th Sep

© Ryanair 2014

200 Boeing MAX Aircraft – “The Gamechanger”

– 100 Firm & 100 Options

– Deliveries start 2019 to 2023

197 seats (+4%), CFM LEAP Engines & competitive pricing =

– Lower unit costs & lower fares for c’mers

– Slimline seats = more leg room

– Boeing Sky Interior improves c’mer experience

– Up to 18% lower fuel costs & 40% noise emission redn.

Fleet grows to 520 a/c by FY24

– Drives growth to 150m c’mers by FY24

– Flexibility via options, sales & lease handbacks

– Maintains youngest fleet age <5 yrs

B o e i n g 7 3 7 M A X 20 0 – T h e G a m e c h a n g e r

© Ryanair 2014

B o e i n g S k y I n t e r i o r

© Ryanair 2014

I m p r o v i n g C u s t o m e r E x p e r i e n c e

© Ryanair 2014

Nov 13 Dec 14

Business Plus

Exte

nd

ed

Pro

du

ct

Winter 14 & new bases

Summer 15 & new routes

Sep 14

Campaign #1

Airport Rebrand

Campaign #2

Bet

ter

Bra

nd

Quiet Flights

2nd Free Bag

Fees Cut

Allocated seats B

ette

r Se

rvic

e

PED use

Groups GDS 1 GDS 2 Corporate

New

D

istr

ibu

tio

n

Google Flight

Website V1

My Ryanair

Website V2

App V1 B

ette

r D

igit

al

App V2

A l w a y s G e t t i n g B e t t e r

© Ryanair 2014

Low cost, more efficient, bigger aircraft

High people productivity through incentives

Lower maintenance costs on new aircraft

Higher utilisation / lower costs at secondary airports

More flights per day per aircraft

Internet sales of 99% = lowest S&M costs

Profitable ancillary sales reduces costs

Lower costs = lower fares = higher growth & profits

The “Ryanair Formula” – Lower fares, lower costs

© Ryanair 2014

The “Ryanair formula” Dublin - London

Dublin – London Passenger Growth 1980 - 2008

0

1

2

3

4

5

1980 1986 1999 2000 2005 2007 2008

Million

PAX

Ryanair start

© Ryanair 2014

The “Ryanair formula” London - Barcelona

London – Barcelona Passenger Growth 2001 - 2008

0

1

2

3

4

5

2001 2002 2003 2004 2005 2006 2007 2008

Million

PAX

Ryanair start

© Ryanair 2014

86m

90m

96m

104m

112m

120m

127m

134m

143m

150m

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24

+ 5%

+ 5%

+ 7%

+ 8%

+ 8%

+ 7%

+ 6%

+ 6%

+ 6%

+ 5%

C’mers P.A.

C’mer Growth

F l e e t / Tr a f f i c G r o w t h F Y 1 5 t o F Y 2 4

308

340

368

402

420

450

470

490

510

520

Fleet (at YE)

73

7-8

00

Ord

er

MA

X O

rde

r

Cum’ Growth

+ 5%

+ 10%

+ 18%

+ 27%

+ 37%

+ 47%

+ 55%

+ 64%

+ 74%

+ 84%

© Ryanair 2014

Boeing aircraft orders drive growth from 304 to 520 a/c by FY24

10 yr Stn growth deal agreed from Apr 2014

- Lower costs & more efficient facilities

- Stn traffic to grow 50% from 13m to > 20m p.a.

- Delivers 25% of forecast traffic growth to 2019

10 yr WAW (Mod) growth deal - Sept 2013

- Lower costs & more efficient facilities

- First 2 domestic routes (Gdn & Wro) from April 2014

Flags in Sp, Fr, It, Cen Eur, Scan & Ger cut capacity – growth opportunity

N e w L o w C o s t D r i v e r s

© Ryanair 2014

CLOSURES

FLAGS

LCC’s

Spanair

Malev

BMI Baby

Wind Jet

AF-KLM

Iberia

SAS

LOT

Air Berlin

easyJet

Wizzair

Spain

Hungary

UK

Italy

France/Ned

Spain

Scandinavia

Poland

Germany

UK

E. Europe

2,000 job losses

2,600 job losses

1,200 job losses

2,800 job losses

SH losses of €750m

4,500 job cuts, 35% pay cuts

6,000 job cuts, 15% pay cuts

950 jobs cut

Closed MAD & cut LPL base

Cut Cork & WAW routes

Competition in Retreat (2012/14)

© Ryanair 2014

Proj. Annual Seat Capacity – Europe 2013-2018

Total Market Growth 114M Ryanair Growth 43M

Ryanair accounts for 38% of total growth over next 5 years

Airline 2013 2018 projection Comment

Ryanair 98,830,371 142,263,996 175 a/c order - grow at 5% per annum up to 2019

Norwegian 26,235,950 52,471,899 Aircraft order to support growth to over 50m

Wizz Air 14,665,752 19,626,084 Likely to grow at c6% per annum.

Vueling 21,135,919 30,343,345 Likely to grow at c7.5% per annum.

British Airways 33,700,756 35,385,794 Short haul likely to grow by c1% per annum

easyJet 65,333,932 77,596,216 Guided to grow at c3% per annum up to 2016

Pegasus 15,752,123 22,614,210 Continued growth expected

Turkish Airlines 38,769,669 47,169,230 Continued growth expected

KLM 22,107,604 23,212,985 c1% growth per annum in short haul traffic

Lufthansa 77,683,955 81,568,153 c1% growth per annum in short haul traffic

SWISS 18,014,325 19,889,270 c2% growth per annum in short haul traffic

Flybe 13,624,982 13,624,982 Short haul likely to remain stable

Aer Lingus 13,356,271 13,356,271 Short haul likely to remain stable

Austrian 12,134,547 12,134,547 Short haul likely to remain stable

SAS 32,695,653 31,060,870 Restructuring - short haul likely to reduce

airberlin 29,374,870 29,374,870 Restructuring - short haul unlikely to grow

Iberia 22,076,350 19,868,715 Restructuring - short haul likely to reduce

Alitalia 21,137,546 19,023,791 Restructuring - short haul likely to reduce

Air France 50,797,768 50,797,768 Restructuring - short haul unlikely to grow

TAP Portugal 11,093,875 11,093,875 For sale - may be restructured when sold

OTHERS 211,000,000 211,000,000 No net growth expected as consolidation continues

Total Capacity 849,522,216 963,476,872 Total Market Growth Projection 113,954,655

© Ryanair 2014

Ireland Spain UK

Netherlands Sweden Belgium Germany France Italy Poland

5.9 3.2 3.2

2.8 2.7 2.0 1.9 1.8 1.7 0.4

24m 150m 202m

48m 27m 22m

156m 115m 104m

15m

SH Flights (Per Capita)

Country Population

SH Flights (Per Annum)

4m 47m 63m

17m 10m 11m 82m 64m 61m 38m

Potential Increase (At 3.2 Flights P.C.)

14% 19% 59% 69% 78% 88%

707%

Mature Low Cost Markets

Low costs generate additional pax.

© Ryanair 2014

Business Definition

Product is a commodity

Others can enter business cheaply

Therefore we must do it better

– Continuous improvement

– Continuous cost reduction

© Ryanair 2014

Cost Reduction

The only competitive advantage is to be the lowest cost operator

Champion cost control

Celebrate cost reduction

Every cost item is examined – Highlighters

– Ice

– Stationery

– Distribution / Internet

– Travel

© Ryanair 2014

Simplify

The process

The way we manage

The way we communicate

© Ryanair 2014

Communications strategy

Clarity

Same message for all groups

Reinforce the indicators of success

– Cost control

– Load factor

– Punctuality

– Share price

– Growth story

– ABSOLUTE IMPORTANCE OF INDIVIDUAL CONTRIBUTION

© Ryanair 2014

Future of Airline Industry

Massive Consolidation

5 Big Players

– Ryanair

– Lufthansa / Swiss / SAS / Austria

– easyjet

– Etihad/ Alitalia

– BA / Iberia

– Air France / KLM

No Room for Small Independent High Cost

Airlines

© Ryanair 2014

Future of LCC in Poland

Polish economy growing rapidly.

Low current levels of penetration of air travel.

Polish People Love to Fly – Love the Sun.

LCC share of seats within C/E Europe is only 15%, compared

with 38% within Western Europe.

Strong record of unbundling products

Lot and Eurolot retrenchment

High costs at Chopin vs. Great regional airports

© Ryanair 2014

Future of Ryanair in Poland

Hire 500 Polish pilots over next 5 years

Hire 1,000’s of cabin crew – opportunity

Possible maintenance facilities

Rebirth of Polish State as an Aviation innovator

Potential new bases and routes

Vast potential for Tourism and Business

© Ryanair 2014

Boeing aircraft orders drive growth from 304 to 520 a/c by FY24

Traffic grows from 82m p.a. to 150m c’mers p.a. (+84%) by FY24

69 bases, 186 apts, 30 EU countries – huge platform for growth

New a/c improves Ryanair’s lowest cost/lowest fare model

197 seats (+4%) & up to 18% fuel saving drives profit growth

Boeing Sky interiors improves onboard c’mer experience

“The Gamechanger” delivers for RYR c’mers, people & shareholders

S u m m a r y

© Ryanair 2014

Appendices

28 July 2014

Questions?