Baggio Michela 876690Beretta Marco 878482Cacciani M. Francesca 874906Cirillo Giuseppe 878042Cheli Filippo 876241

INDEX

Company’s business model

Ryanair’s financial analysis

Balance scorecard

Overview

569.3522.8

866.7

0

100

200

300

400

500

600

700

800

900

1000

2013 2014 2015

Net profit [Mln€]

OVERVIEW

>1800 FLIGHTS PER DAY

HOW IS THIS

POSSIBLE ?

AVERAGE PRICE: 47€

BUSINESS MODEL

NOFRILLS

LOW FARES

SECONDARY AIRPORTS

PROFITABILITY

LOW COSTS

11% 10%12%

18%21.20%

25%

11%

15% 14%

2013 2014 2015

Rayanair EasyJet British Airways

ROI

Positive increase, but less thanour competitors becauseRyanair is investing a lot toenlarge both its fleet and itsroutes.

An example is the order of 180new B737-800 NG Boeings.

FINANCIAL ANALYSIS

LOW COSTS

PROFITABILITY

LOW FARES

SECONDARY AIRPORTS

LOW FARES

13%

24%

16.30%

0%

5%

10%

15%

20%

25%

30%

cost

Rayanair EasyJet British Airways

PROFITABILITY

SECONDARY AIRPORTS

0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

18.0%

21.0%

2013 2014 2015

Rayanair EasyJet British Airways

FINANCIAL ANALYSIS

ROS"Airport and handling charges"

costs over revenues

LOW COSTS

PROFITABILITY

LOW FARES

SECONDARY AIRPORTS

LOW FARES

PROFITABILITY

FINANCIAL ANALYSIS

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

0 1 2 3 4 5 6 7D/E

Co

st o

f d

ebt

201520142013

LOW COSTS

PROFITABILITY

LOW FARES

SECONDARY AIRPORTS

LOW FARES

PROFITABILITY

FINANCIAL ANALYSIS

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

0 1 2 3 4 5 6 7D/E

Co

st o

f d

ebt

201520142013

LOW COSTS

PROFITABILITY

LOW FARES

SECONDARY AIRPORTS

LOW FARES

PROFITABILITY

FINANCIAL ANALYSIS

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

0 1 2 3 4 5 6 7D/E

Co

st o

f d

ebt

201520142013

LOW COSTS

PROFITABILITY

LOW FARES

SECONDARY AIRPORTS

LOW FARES

PROFITABILITY

FINANCIAL ANALYSIS

1.97

1.51

1.72

1.05

0.89

0.72

0.63

0.65

0.6

2013

2014

2015

British Airways EasyJet Ryanair

Liquidity analysis (Current ratio)

SALES GROWTH RATE

Significant index of company’s expansion, that shows the increase inrevenues.

Sales growth rate = ∆ 𝑺𝒂𝒍𝒆𝒔 [𝒕− 𝒕−𝟏 ]

𝑺𝒂𝒍𝒆𝒔 (𝒕−𝟏)

ADJUSTED PRICEThis indicator highlights the difference between Ryanair’s medium price and the market’s one.

Adjusted price =𝒓𝒚𝒂𝒏𝒂𝒊𝒓′𝒔 𝒂𝒗𝒆𝒓𝒂𝒈𝒆 𝒑𝒓𝒊𝒄𝒆

𝒍𝒐𝒘 𝒄𝒐𝒔𝒕 𝒎𝒂𝒓𝒌𝒆𝒕′𝒔 𝒂𝒗𝒆𝒓𝒂𝒈𝒆 𝒑𝒓𝒊𝒄𝒆

% SATISFIED CUSTOMERSA digital survey via phone application provides customers’ opinions on Ryanair’s service.

% Satisfied customers = # 𝒄𝒖𝒔𝒕𝒐𝒎𝒆𝒓 𝒓𝒂𝒕𝒊𝒏𝒈 ≥𝟒

# 𝒊𝒏𝒕𝒆𝒓𝒗𝒊𝒆𝒘𝒆𝒅 𝒄𝒖𝒔𝒕𝒐𝒎𝒆𝒓𝒔

BALANCE SCORECARD

LOAD FACTORImportant leverage in cost reduction strategy. Saturating airplanes helpssplitting fixed costs. New purchased airplanes provide more seats, but if wellmanaged they will bring more revenues.

Load factor = 𝑻𝒐𝒕𝒂𝒍 𝒆𝒇𝒇𝒆𝒄𝒕𝒊𝒗𝒆 𝒑𝒂𝒔𝒔𝒆𝒏𝒈𝒆𝒓𝒔

𝑻𝒐𝒕𝒂𝒍 𝒑𝒐𝒕𝒆𝒏𝒕𝒊𝒂𝒍 𝒑𝒂𝒔𝒔𝒆𝒏𝒈𝒆𝒓𝒔

AIRPORT IMPACT

This index shows the increase in ancillary revenues from secondary airportwhich properly highlights how Ryanair exploits secondary airports toincrease its prosperity.

Airport impact = 𝑨𝒏𝒄.𝒓𝒆𝒗 𝒇𝒓𝒐𝒎 𝒔𝒆𝒄𝒐𝒏𝒅𝒂𝒓𝒚 𝒂𝒊𝒓.

𝑨𝒏𝒄𝒊𝒍𝒍𝒂𝒓𝒚 𝒓𝒆𝒗𝒆𝒏𝒖𝒆𝒔

FUEL REDUCTIONNew airplanes bring a reduction in fuel cost due to improvements in theirstructure.

Fuel reduction= 𝑻𝒐𝒕𝒂𝒍 𝒇𝒖𝒆𝒍 𝒄𝒐𝒏𝒔𝒖𝒎𝒑𝒕𝒊𝒐𝒏 [€]

𝑻𝒐𝒕𝒂𝒍 𝒌𝒎 [𝒌𝒎]

BALANCE SCORECARDBALANCE SCORECARD

CONCLUSIONS

NO FRILLS is the

answer to Ryanair’s

success…

…and the reason why

you never fit in the

seats.

THANKS FOR YOUR

ATTENTION