easyjet Annual Report 2015

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FY2015 Annual Report · easyjet

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Annual report and accounts 2015

SEE ALL OF THE INVESTOR
INFORMATION ONLINE AT
http://corporate.easyJet.com/
investors

Contents

STRATEGIC REPORT
easyJet at a glance

Our business model

Chairman’s letter

Chief Executive’s review

Overview

External environment

Our strategy

Outlook

Key performance indicators

Financial review

Going concern

Viability statement

Key statistics

Risk

Corporate responsibility

GOVERNANCE
Chairman’s statement on corporate governance

Board of Directors

Executive Management Team

Corporate governance report

Directors’ remuneration report

Directors’ report

Statement of Directors’ responsibilities

Independent auditors’ report to the members of easyJet plc

ACCOUNTS
Consolidated income statement

Consolidated statement of comprehensive income

Consolidated statement of financial position

Consolidated statement of changes in equity

Consolidated statement of cash flows

Notes to the accounts

Company statement of financial position

Company statement of changes in equity

Company statement of cash flows

Notes to the Company accounts

OTHER INFORMATION
Five-year summary

Glossary

118

119

120

121

123

124

Our journey so far

1st

NEW AIRBUS
ENTERS SERVICE

‘95

‘96

‘00

‘01

‘02

‘03

‘05

£29

FARES STARTING
PRICE ONE WAY
easyJet launches
its inaugural flights
from London
Luton to Glasgow
and Edinburgh.

310p

easyJet floats on
the London Stock
Exchange at an offer
price of 310p valuing
the Company at
£777 million.

120

NEW AIRCRAFT
ORDERED
easyJet’s shareholders
approve the purchase
of 120 aircraft from
Airbus with the option
to purchase an
additional 120 aircraft.
Acquisition of Go Fly.

YEARS OLD
100th aircraft
delivered;
100 millionth
customer flown
(Stansted to
Malaga).

easyJet takes delivery
of its first wholly owned
aircraft and starts
international flights with
routes from London
Luton to Amsterdam,
Barcelona and Nice.

5TH

BASE IS OPENED

easyJet makes London Gatwick
its fifth base and becomes the
second-largest scheduled airline
at the airport.

THIS IS JUST THE START>400

ROUTES IN TOTAL

INTRODUCTION OF
SPEEDY BOARDING

>100

ROUTES FROM
LONDON GATWICK
The landmark of flying more
than 100 routes from London
Gatwick is reached.

Allocated seating introduced
for all flights.

7 year

DEAL WITH
LONDON GATWICK
easyJet signs a
new seven-year deal
at its largest base,
London Gatwick,
and announces new
bases in Amsterdam
and Porto.

‘06

‘08

‘11

‘12

‘13

‘14

‘15

135

NEW AIRCRAFT ORDERED
easyJet’s shareholders approve
the purchase of 35 current
generation Airbus A320 aircraft
and 100 new generation A320neo
aircraft for delivery between 2015
and 2022. easyJet announces
new bases in Hamburg and
Naples and the expansion of its
base in Berlin.

YEARS OLD
250th Airbus delivered.
After 20 years we can
still offer a one way
flight for less than £30.

ACQUISITION

five

BASES IN FRANCE
easyJet announces two new bases in France
at Nice and Toulouse, bringing the number of
bases in France to five. easyJet announces its
maiden dividend to shareholders. easyJet
passes the 50 million passenger milestone.

2015
£29.99

FARES STARTING
PRICE ONE WAY
After 20 years
we can still offer
a one way flight
for less than £30.

Over the past 20 years easyJet has
built Europe’s leading short-haul airline,
delivering market-leading returns to
our shareholders.

Our network of primary airports, routes
and slots, combined with a clear focus
on making travel easy and affordable,
enables us to provide a friendly, efficient
service with low fares for our customers.

We have a strong platform to continue
to deliver profitable growth for the next
20 years and be the short-haul airline
of choice for passengers across Europe.

CAROLYN MCCALL OBE,
Chief Executive

Strategic reportGovernanceAccountswww.easyJet.comHow 20 years have flown

YESTERDAY

In 1995 we started with two leased Boeing 737s at Luton airport,
flying to Edinburgh and Glasgow. The price of a ticket was
£29 one way, the same as a pair of jeans.

Net revenue (£ million)

Number of passengers (million)

£264

5.6

£140

£77

3.1

£46

1.0

1.7

1997

1998

1999

2000

£17

0.4

1996

+93%

COMPOUND ANNUAL GROWTH RATE
OF NUMBER OF PASSENGERS
BETWEEN 1996 AND 2000

ROUTES OPERATED
BY 2000

1,386

EASYJET EMPLOYEES
BY 30 SEPTEMBER 2000

AIRCRAFT IN FLEET
BY 2000

£66m

NET ASSETS
IN 2000

easyJet plc Annual report and accounts 2015TODAY

Turn to pages: 10-15
to see our strategy

Today easyJet is the second-largest short-haul airline in Europe,
carrying almost 70 million passengers per year with its innovative
approach and friendly customer service. We still offer tickets
for under £30.

735

ROUTES OPERATED
BY 2015

10,104

EASYJET EMPLOYEES
BY 30 SEPTEMBER 2015

241

AIRCRAFT IN FLEET
BY 2015

£2,249m

NET ASSETS
IN 2015

£4,686

Net revenue (£ million)

Number of passengers (million)

£2,973

68.6

48.8

£1,341

£264

29.6

5.6

2000

2005

2010

2015

+18%

COMPOUND ANNUAL GROWTH RATE
OF NUMBER OF PASSENGERS
BETWEEN 2000 AND 2015

www.easyJet.com

3
3

Strategic reportGovernanceAccountswww.easyJet.comeasyJet at a glance

OUR TRULY
EUROPEAN
NETWORK

Since day one we have continued to grow
our capacity, increase the number of routes
and attract more customers across Europe.

Our network extends across Europe and beyond,
taking our customers to places that they
really want to go.

We fly to 136 airports in 31 different countries,
operating 735 routes.

In 2015 we added 95 new routes, offering flights
to places like Stuttgart, Pula and Preveza.

We are continuing to expand in 2016, adding over
90 further routes to serve our customers’ demands.

www.easyJet.com/EN/routemap
To see our entire network

PONTA DELGADA

BASES

OTHER AIRPORTS

ICELAND

SWEDEN

ESTONIA

M A R K

D E N

RUSSIA

D S

N E T H E R L A N

BELGIUM

GERMANY

RUSSIA

POLAND

CZECH REPUBLIC

FRANCE

SWITZERLAND

AUSTRIA

HUNGARY

SLOVENIA

CROATIA

ITALY

POR

TUGAL

SPAIN

MOROCCO

BULGARIA

SERBIA

K O S O V O

GREECE

TURKEY

EGYPT

easyJet plc Annual report and accounts 2015ICELAND

SWEDEN

ESTONIA

M A R K

D E N

RUSSIA

D S

N E T H E R L A N

BELGIUM

GERMANY

RUSSIA

135
735 routes
new aircraft
at 30 September 2015
ordered

POLAND

CZECH REPUBLIC

FRANCE

SWITZERLAND

AUSTRIA

HUNGARY

SLOVENIA

CROATIA

ITALY

Over 90
135
new routes planned
new aircraft
for 2016
ordered

BULGARIA

SERBIA

K O S O V O

GREECE

TURKEY

136
135
airports
new aircraft
in 31 different
ordered
countries

EGYPT

www.easyJet.com

POR

TUGAL

SPAIN

PONTA DELGADA

MOROCCO

BASES

OTHER AIRPORTS

Our business model
How we drive growth and returns

Our sustainable business model makes travel easy and affordable
and drives growth and returns for shareholders.

OUR VALUES

WHAT WE DO

WE ARE A LOW-COST
EUROPEAN POINT-TO-POINT
SHORT-HAUL AIRLINE
We use our cost advantage and number one and
number two network positions in strong markets
to deliver point-to-point low fares and operational
efficiency, with our people making the difference
by offering friendly service for our customers.

OUR AMBITION
To be Europe’s preferred short-haul airline,
delivering market-leading returns.

OUR CAUSE
To make travel easy and affordable.

SAFETY
We will never compromise our commitment
to safety, which is always the first priority
for our people.

SIMPLICITY
We cut out the things that don’t matter
to keep us lean and make it easy.

ONE TEAM
Together we’ll always find a way.

INTEGRITY
We stand by our word and do what we say.

PASSION
We have a passion for our customers,
our people and the work we do.

PIONEERING
We challenge to find new ways to
make travel easy and affordable.

See the About Us section of http://corporate.
easyJet.com to see more about our values

SAFETY UNDERPINS EVERYTHING WE DO

easyJet plc Annual report and accounts 2015241AIRCRAFT68.6mPASSENGERS735ROUTES26BASESOUR VALUES

WHERE WE DO IT

HOW WE DO IT

INTRA-EUROPEAN
SHORT-HAUL NETWORK
Network focused on primary airports
serving significant catchment areas.

How we do it is about how our people implement
our strategy through our unique network, digital
leadership, cost advantage and financial strength.
This is what sets us apart from our competitors.

BUILD STRONG NUMBER ONE
AND TWO NETWORK POSITIONS
We fly from the primary airports in attractive
catchment areas and have the biggest presence
on Europe’s top 100 routes.

DRIVE DEMAND, CONVERSION
AND YIELDS
We make it easy to buy our low fares through
our website, which has over one million visits every
day, and also through mobile devices. People are
attracted to the well-known easyJet brand and
service offering.

MAINTAIN COST ADVANTAGE
We are able to provide low fares to our customers
by maintaining a low-cost base and by delivering
operational excellence. We have low overhead
costs and use our aircraft efficiently.

DISCIPLINED USE OF CAPITAL
We maintain a strong balance sheet so that we can
withstand external shocks, such as airspace closure.
We maximise the use of our aircraft and have a
policy of returning excess cash to shareholders.

CULTURE, PEOPLE AND PLATFORM
Our people are passionate and friendly.
We strive for simple systems and processes.

Airports to which easyJet flies

Turn to pages 10-15
to see more detail on our strategy

SAFETY UNDERPINS EVERYTHING WE DO

Strategic reportGovernanceAccountswww.easyJet.comChairman’s letter
Continuing to deliver

JOHN BARTON, CHAIRMAN

DEAR SHAREHOLDER

Reflecting another year of growth, I am pleased
to report that your Company has delivered
record profit for the fifth year in a row, with
profit before tax up 18% to £686 million.

Celebrating 20 years as a business
easyJet celebrated its 20th birthday in November 2015. It is
remarkable how far we have come in this short period of time.
We have grown to become the second biggest short-haul airline
in Europe, carrying almost 70 million passengers a year and we
are now an established FTSE 100 company with £4.7 billion of
revenue. Over the 20 years we have retained our entrepreneurial
spirit and maintained our focus on providing customers with
excellent service at a reasonable cost, the main reason for
our success.

Strategy
Our strategy remains focused on delivering market-leading
innovation in customer service, whilst establishing a network
of routes and frequencies that benefit from strong demand.
We continue to see a number of opportunities to grow in a
profitable and disciplined way and our announcement of an
agreement with Airbus to take delivery of an additional 36
A320 aircraft will help us to capitalise on these.

There have been several regulatory developments in the year.
We are engaging with the European Union to address efficiency
in a new EU Aviation strategy, including overall regulatory
structure, air traffic control, regulated airports, levies and
taxation. We were pleased with the Airports Commission’s
final report in July recommending that the Government expand
its aviation capacity in London. We are also encouraged to see
the Government engaging on Air Passenger Duty, against a
backdrop of evidence that clearly indicates that an increase
in air passenger traffic is a contributor to economic growth.

Returns to shareholders
Last year the Board announced its policy to increase the
dividend payout ratio to 40% of profit after tax, in line with the
broader market. After another successful year we are pleased
to recommend a dividend for the year of 55.2 pence per share,
an increase of 22%.

People
As always, our people have again made a significant contribution
to the success of the business. I would particularly like to thank
those on the front line, who sustained high standards of
customer service throughout the year. We continue to dedicate
resource to attracting the right people for the business and
in the development and retention of our existing employees.
It is the strength of our people that will enable us to meet
our ambitious objectives for the future.

On the Board, we have recently welcomed Andrew Findlay as
our incoming Chief Financial Officer, joining the Company on
2 October 2015. I would like to thank Chris Kennedy for his
significant contribution to the successful growth of the Company
in the last five years and wish him success in the future.

Conclusion
We believe that our business model and strategy will deliver
long-term value to shareholders. Our clear focus is to fulfil our
customers’ needs via a network of airports, routes, frequencies
and slots that is unrivalled in European short-haul aviation. This,
combined with our fleet expansion plans, gives us a significant
opportunity for future profitable growth and increasing shareholder
returns. We look forward to another 20 years of success.

JOHN BARTON
Non-Executive Chairman

easyJet plc Annual report and accounts 2015Chief Executive’s review
A year of strong performance

£686m

PROFIT BEFORE TAX (2014: £581M)

22.2%

ROCE (2014: 20.5%)

CAROLYN MCCALL OBE, CHIEF EXECUTIVE

This has been another year of record profits
and delivering our strategy for easyJet. We
carried an additional four million passengers
to reach 68.6 million passengers; we grew
revenue to £4,686 million; and we increased
profit before tax for the fifth successive year
to a record £686 million. Return on capital
employed increased to 22.2%(1), another
record for the Company.

• Load factor for the full year grew by 0.9 percentage
points to 91.5%, demonstrating strong demand in a
competitive environment.

• We increased yield and revenue throughout the year with our
market leading digital platform driving and fulfilling demand,
supported by our best-in-class Revenue Management System.

• Our confidence, both in the demand environment and our

structural growth opportunities within our markets has led us
to secure an additional 36 aircraft between 2018 and 2021,
comprising 30 Next Generation A320s and 6 Current Generation
A320s, all in the 186 seat configuration. This will bring flexibility
and secure further cost savings of £27 million.

OVERVIEW
Our markets are strong, with favourable economic and consumer
trends. Our core leisure customer is part of a market that is
growing strongly every year as people take more holidays and
city breaks, complemented by a business travel market that
prizes both flexibility and value.

• Cost per seat decreased by 3.4%, with benefits from both fuel
and currency. Cost per seat at constant currency excluding fuel
increased by 3.6%. We have experienced cost pressures that
include regulated airport price increases, increased de-icing costs
and significant disruption costs. We have mitigated this through
£46 million of sustainable savings and we have a pipeline of
structural cost improvement to deliver future savings.

easyJet has positioned its network and product to capitalise on
these trends and has delivered again during the year. Our business
model and strategy are continuing to deliver profitable growth
and increasing annual returns to shareholders.

In particular:

• Revenue increased by 3.5% to £4,686 million, with passenger

volumes increasing by 6.0% and revenue per seat by 1.5% on a
constant currency basis to £64.28, offset by currency headwinds.

• Our passengers continue to be attracted by our model of having

convenient airports and flights, available at good value. We
finished the year strongly with record load factors in both July
and August driving revenue per seat up by 3.2% in constant
currency in the fourth quarter.

• Profit before tax grew by £105 million to £686 million and we
increased the profit before tax margin to 14.6% from 12.8%.

• Return on capital employed(1) increased by 1.7 percentage

points to a record 22.2% (2014: 20.5%), with some benefits
from our hedge positions, maintaining our strong market
returns. We continue to drive capital efficiency with rigour and
discipline, reallocating aircraft around the network to maximise
return on capital employed.

• We generated £895 million of operating cash flow, reducing

our gearing to 14%, thus further strengthening our balance sheet.

• Reflecting the strong financial performance during 2015, the

Board has recommended a dividend of 55.2 pence per share,
an increase of 21.6% from the prior year, in line with its policy
of paying 40% of annual profit after tax to shareholders.

(1)

Return on Capital Employed shown adjusted for leases capitalised at 7 times.

Strategic reportGovernanceAccountswww.easyJet.comChief Executive’s review continued

EXTERNAL ENVIRONMENT
easyJet operates in the short-haul European aviation market,
which has seen strong underlying demand throughout the year.
easyJet’s focus is primarily in Western and Northern Europe,
where there is a high propensity to travel and deep, rich markets.
Economic trends are currently favourable, with GDP growth in
our main markets. The UK is the strongest country in terms
of absolute GDP performance in 2015 and we continue to see
an improving outlook across all of our other major regions. In
addition, consumer confidence is growing in those markets,
which we expect to support growth in economic activity.
These positive trends, combined with our market positioning,
are reflected in strong demand for our services.

The total European short-haul market(2) grew by 5% year-on-year
in the 12 months to 30 September 2015, sustained in part by a
continued low fuel price. Low cost carrier share of the short-haul
market increased by around one percentage point to 42%. In the
same period, easyJet’s competitors increased capacity by 7%
in its markets, with particularly strong growth in the UK market.
Over its financial year, easyJet increased capacity by 5%, with
growth of 4% in the first half increasing to 6% in the second half.

Whilst the overall short-haul market has grown over the last 10
years, the low-cost carriers have taken significant market share,
as the legacy carriers have cut mainline capacity across their
networks in order to address their lack of competitiveness.
At the same time the legacy carriers are transferring capacity
from their flag airlines to lower-cost subsidiaries such as Vueling,
Eurowings and Transavia. In its 20 years of existence, easyJet has
grown its own market share as part of that low cost growth and
now has an estimated 8% of the European short-haul market.
We see a number of opportunities to increase our market share.

easyJet has delivered a strong performance against this
competitive backdrop, demonstrating the strength of its model
and implementation of its strategy. With a track record of high
growth across economic cycles, strong underlying demand,
as well as our relatively low current market share, we continue to
see opportunities to deliver further growth over the medium term.

Our strategy
easyJet is confident that through its strategy it will deliver
sustainable growth and returns for shareholders.

SA F E T Y

1.
BUILD STRONG
NUMBER ONE AND
TWO NETWORK
POSITIONS

4.
DISCIPLINED
USE OF
CAPITAL

5.
CULTURE,
PEOPLE AND
PLATFORM

2.
DRIVE DEMAND,
CONVERSION
AND YIELDS

3.
MAINTAIN
COST
ADVANTAGE

S A F ETY

(2) Capacity and market share figures from OAG. Size of European market based on internal easyJet definition. Historical data based on 12 month period

from October 2014 to September 2015.

easyJet plc Annual report and accounts 20151 BUILD STRONG NUMBER ONE
AND TWO NETWORK POSITIONS
easyJet flies to a network of primary airports and routes that tap
into deep, wealthy markets with populations that have a high
propensity to fly. We have chosen to establish ourselves at the right
airports, serving valuable catchment areas that represent Europe’s
top markets by GDP, driving both leisure and business travel. This is
also where strong markets already exist, built up over a period of
time by legacy carriers. We have the opportunity both to capture
further market share and to grow the overall market.

Driven by strong underlying demand and an attractive customer
proposition, we will continue to invest in growing our network.
We operate more of the top 100 routes in Europe than any other
airline and our route frequencies deliver choice and flexibility for
our customers while increasing returns. Our competitive advantage
is reinforced by the overall portfolio of peak time slots at airports
where either total slot availability or availability at customer-friendly
times is constrained.

We regularly review the route network in order to maximise returns
and exploit demand opportunities in the market. During the year we
added a net 60 routes to the network, slightly more than last year.
These were allocated to new bases, such as Amsterdam, Hamburg,
Naples and Oporto, and to markets where we want to consolidate
our position and grow our share, such as Switzerland and Italy.
We have recently announced new base openings in Venice and
Barcelona. Our plans for fleet expansion will help us to capitalise
on expected demand in markets that we understand.

Over time, increased route maturity and greater numbers of
frequencies have contributed to increasing profitability and returns.
We continue to establish stronger leadership positions in all of our
markets, to achieve the aim of holding the position of number
one or number two in each market. We currently have 52% of
our capacity in airports where we have the number one position
by share and 83% as one of the top two.

Progress in our main markets is as follows:

United Kingdom
easyJet is the UK’s largest short-haul airline, where we have a
20% market share(2). At year end the UK had 134 based aircraft.

We are continuing to reinforce our already strong position in the
UK market, both London-based and regional. easyJet remains the
number one carrier by market share at almost all of its UK bases,
including its major bases of London Gatwick, London Luton, Bristol,
Belfast and Edinburgh. Our positioning, market share and airport
bases are driving both leisure and business passengers. We
increased capacity by 3% in the twelve months to 30 September
2015, launching new routes such as London Gatwick to Stuttgart
and London Luton to Essaouira, while continuing to increase
frequencies on selected routes. Our competitors increased their
capacity on our markets by 9%.

France
easyJet is France’s second largest short-haul airline with a 14%
market share. At year end France had 26 based aircraft.

We see opportunities to grow our market share in France, leveraging
our competitive market position, adding capacity at Charles de
Gaulle through up-gauging and strengthening our domestic network
(we are the number one or two carrier after Air France in most of the
airports where we operate). We increased capacity in France by 6%
in the year, against competitor growth on our markets of 5%,
launching eight new routes in the year such as Toulouse to Seville
and Paris Orly to Split.

Italy
easyJet has a 12% market share in Italy. At year end Italy had
29 based aircraft.

We continue to target increasing market share in Italy, by
reinforcing our existing strong positions and investing more in the
higher value catchment areas. We are the biggest operator at Milan
Malpensa with 22 touching aircraft, have recently opened a new
base at Naples and will open a base in Venice early in 2016 (and we
are already the number one airline at both). We are supporting this
by redeploying aircraft and crew from Rome Fiumicino, which still
remains an important part of our network with an expected two
million passengers a year. During 2015 we increased capacity in
Italy by 7% launching 23 new routes in the year, including Milan
Malpensa to Munich, Milan Linate to Paris Charles de Gaulle and
Milan Linate to Amsterdam.

Switzerland
easyJet is Switzerland’s second largest airline with a 23% total
market share. At year end Switzerland had 23 based aircraft.

easyJet is the number one operator at both Geneva and Basel
airports, with the latter also part of the Zurich catchment area.
We increased capacity by 9% in the twelve months to 30
September 2015, building and reinforcing our leading positions
at both airports. As the leading airline brand in Geneva and Basel
easyJet’s strategy is to continue to build customer preference in
the market. Competitor capacity growth on our markets was
also 9%. easyJet launched eleven new routes in the year such
as Geneva to Menorca and Basel to London Luton.

Germany
easyJet has 4% market share in Germany. At the year end Germany
had 12 based aircraft.

Germany is a large and attractive market, although with a more
regional, federal structure than other European countries. easyJet
is focused on its two bases at Berlin Schoenefeld, where it is the
number one airline, and Hamburg, which opened in 2014. We target
continued growth in Germany, taking share from the incumbent
operators. We have increased capacity by 15% during the year.
Competitor growth on our markets was 6%. We launched sixteen
new routes in the year such as Hamburg to Lanzarote and
Hamburg to Paris Orly.

Portugal/Spain
easyJet has 13% market share in Portugal and 8% market share in
Spain. At year end Portugal had six based aircraft.

Portugal and Spain are principally an in-bound market for easyJet,
with strong demand on key flows to the region from the rest of
Europe. We increased capacity by 8% and 2% in Portugal and Spain
respectively, reflecting in particular the investment in a new base in
Oporto from where we launched six new routes to Luxembourg,
Nantes, Stuttgart, Manchester, Bristol and London Luton airports.
We also announced that a new base at Barcelona would be
opening in February 2016. Competitor market growth on our
markets was 10% in Portugal and 7% in Spain.

Netherlands
easyJet is the Netherlands’ second largest short-haul airline
with a 9% market share. At year end the Netherlands had three
based aircraft.

The Netherlands is a significant opportunity for easyJet, where
we currently carry four million passengers a year. In March 2015
we opened a new base at Schipol Airport, Amsterdam (where
we are now the second biggest operator) and we are continuing
to invest in growth of our market share. As a result we have
increased capacity by 17% during the year against competitor
growth on our markets of 9%. easyJet launched nine new routes
in the year, such as Amsterdam to Nice.

Strategic reportGovernanceAccountswww.easyJet.comChief Executive’s review continued

2 DRIVE DEMAND, CONVERSION

AND YIELDS

Alongside the quality of its network, easyJet is able to drive
profitable growth through its leading customer-focused
proposition. In particular we are driving increasing levels
of loyalty and attracting passengers through the quality
and innovation of our digital platform.

Leading customer offering
easyJet’s strong relationship with its customers continues
to develop, with passengers increasingly likely to travel
with easyJet again after previously taking an easyJet flight.
Increasing customer loyalty helps to create more sustainable
long-term revenue.

In the last year, 74% of our seats were booked by returning
customers, which is a six percentage point increase from 2010.
All easyJet markets have seen an increase in customer loyalty,
with France showing the biggest increase of 28% since 2011.
The strength of the relationship was best illustrated during the
very busy summer trading period, with approximately 80% of
passengers who flew with easyJet being returning customers.

As part of the 20th Anniversary celebrations easyJet announced
the launch of its new customer loyalty program. This aims to
recognise and retain our high value and loyal customers with
a scheme that makes travel with easyJet even easier. Very
different to legacy frequent flyer programs, which are highly
expensive and complex, we want to make the simple things easy
for our customers. The programme offers a range of benefits
such as free name changes, free booking changes and a low
price promise, all reinforced by a dedicated customer support
team. This is expected to be rolled out in early 2016.

Our combination of using primary airports in large economic
markets, alongside high frequencies and attractive flight timings,
also makes easyJet a logical choice for business passengers.
We are focused on providing a bespoke business offering
through distribution platforms, Travel Management Companies
and direct to small and medium sized enterprises. We signed
up 100 corporate customers during the year. Despite a strong
comparable benefit in 2014 due to the Air France strike, we
nevertheless continued to increase the business yield premium
during the year. Sales of business products performed well,
with a 58% increase in the sale of flexible business fares when
compared to 2014. Sales through Global Distribution Systems
grew by 32% in the year as easyJet continued to leverage its
relationships with the Travel Management Companies. Bookings
from corporate customers direct also went up by 30%.
easyJet continues to see opportunities to sell its business
product across Europe and we have recently strengthened
our corporate sales capability through a new market,
customer and industry structure.

Innovation and digital leadership
Our digital platform is a key point of differentiation with our
competitors. We believe that we have significant advantages in
the capability of our web platform, our Customer Relationship
Management (“CRM”) data and our mobile offering. During the
year we had over 500 million visits across all platforms, an 18%
increase in the last two years, and we grew web conversion by
13% over the same period.

Our CRM enables our customers to benefit from increasing levels
of personalisation across multiple channels, with examples such
as saved passport details, targeted marketing campaigns via
email and text message and bespoke offers from our affiliate
partners. The user experience has been further developed over
the year, with greater ease of interaction on the website and
mobile and optimised layouts and design.

We have put significant focus on the mobile offering over the
past two years, with an award-winning app that enables mobile
hosting through the airport, disruption notification live with the
ability to change flights, and saved personal data such as
payment details. We have seen very positive take-up of mobile
as the platform for seat sales, almost doubling as a percentage
over the last 12 months to over 8%.

The strength of this platform was recently demonstrated when
our summer 2016 season tickets went on sale. On the day we
were commanding 33% of all UK airline web traffic share. Across
all channels we had 2.6 million visits, up 30% on the prior year, of
which over 15% were on mobile. In the early moments we were
selling 800 seats per minute, rising to a peak when we were
selling out the equivalent of an A320 every seven seconds.

We will be investing substantially in our digital capability over
the next three years, as we continue to innovate and maintain
our leadership position in the sector. Our initial focus will be
on enhancing the digital customer interface, to be delivered
by summer 2016, followed by the development of support
systems that will lead to easyJet having the first fully-integrated
e-commerce platform in the airline industry. In the longer term
we are committing to the acceleration of our use of data science
to improve efficiency, increase revenue and drive greater
customer satisfaction.

The digital programme will offer increasing amounts of
personalisation, introducing a more relevant booking journey
based on previous behaviour to drive higher footfall, higher
conversion rates and higher attachment rates. It will also enable
greater self-management capability through the entire journey
chain, from booking to check-in, through the airport and in the
event of disruption.

We are subsequently building an e-commerce platform that will
give us a competitive advantage for the long term. Its primary
objective is to give us significantly better flexibility and capability
than we currently have, specifically around our ability to offer
customers bespoke, attractive options.

Lastly, we have started to explore ways to innovate in other
areas across the business. In June we showcased new
technology such as engineering drones and prognostics
software. Looking to the future, we are investing in research
around Artificial Intelligence to exploit the large amounts of
data generated by our operations.

easyJet plc Annual report and accounts 20153 MAINTAIN COST ADVANTAGE

4 DISCIPLINED USE OF CAPITAL

easyJet has a clear capital structure framework and a strategy
which is intended to maximise shareholder returns. The Company
maintains a strong balance sheet with low gearing, which gives
us a strong competitive advantage through access to a lower
cost of funding as well as operational flexibility.

Our objective is always to optimise our return on capital
employed through the allocation of aircraft and capacity across
the network, regularly moving them to airports and routes with
better opportunities. In line with this strategy, we took the
decision in June to close our base at Rome Fiumicino and will
redistribute those eight based aircraft to other bases in Italy,
including the opening of a new base in Venice. These actions
reiterate our focus on returns and will increase the return on
capital employed of the Company as a whole, as we have done
regularly in the past and will do so in the future.

As we continue to add frequencies and commit to basing
aircraft around the network in scale, we are able to maintain
the very high fleet utilisation that sets us apart. In 2015 we
maintained our asset utilisation across the network, at an
average of 11 block hours per day (2014: 11 hours).

Fleet
We manage our fleet to provide flexibility in our planning
arrangements, so that on the one hand we can maximise
opportunities in a strong demand environment, whilst being able
to manage our capacity as necessary. easyJet’s total fleet as at
30 September 2015 comprised 241 aircraft and increased by a
net 15 from 30 September 2014.

Over the next five years we will reduce cost by changing the
fleet mix and ownership structure. We took delivery of 20 A320
aircraft in the 12 months to 30 September 2015, which provide
a per seat cost saving of 7% to 8% over the A319, through
up-gauging. Five A319 aircraft were retired and the average
age of the fleet increased to 6.2 years (2014: 5.8 years).

easyJet has a strong cost-focused culture, with a number of
structural advantages in key areas that enable it to combine
the offering of a primary airport network with good value fares.
Every year easyJet delivers substantial cost savings against
underlying cost inflation, whilst in the longer term we have
a pipeline of opportunities that will further improve our
structural competitiveness.

In 2015 cost per seat decreased by 3.4%, primarily reflecting
benefits from fuel and foreign currency. On a constant currency,
ex-fuel basis cost per seat rose 3.6%. Part of this is the cost of
doing business within our successful business model; part was
due to one-off factors during the year. We have generated
sustainable savings during the year of £46 million.

easyJet’s structural advantages are an integral part of our
business model, with established benefits in fleet, airports
and handling, engineering, pensions and overheads:

• We operate an exclusively Airbus A320-family fleet. This
delivers operational flexibility as well as efficiencies in
engineering and maintenance, crew, ownership and fuel. As
the second-largest operator of Airbus aircraft in the world we
also benefit from significant economies of scale on acquisition.
Between 2016 and 2021 we will derive a major benefit from
up-gauging of our fleet, from a majority 156-seat A319
composition to a fleet that is over 70% 186-seat A320s.
This is expected to have a 13-14% cost per seat benefit,
which translates into over £110 million of comparable savings.

• With significant positions in our airports, we are able to drive
economies of scale from long term deals with the airport
owners and operators, as well as with ground handling agents
at those airports. We are now in our second year of a seven
year contract with Gatwick airport, as the largest operator at
the airport, and likewise at London Luton airport, where we
have signed a 10 year contract. In Ground Handling we signed
an arrangement with GH Italia covering all of the nine airports
where we operate in Italy. We expect to agree a number of
new contracts in both areas in 2016 and 2017.

• During 2015 we completed our new component support
arrangement with AJW Group, consolidating previous
arrangements and again leveraging our increasing scale.
This has been successfully implemented in October 2016
and we expect to drive significant maintenance savings
over the term of the contract.

• easyJet is not encumbered with significant historic costs

that legacy carriers have. Our crew are more productive. We
maintain a lean and efficient head office and we do not have
expensive pension arrangements for current and previous
employees. We believe we can leverage this position to drive
incrementally profitable growth in the medium term.

We will relentlessly focus on delivering these initiatives in the next
few years. Our experiences in 2015 have given us the impetus to
increase our cost saving efforts. We plan to re-invigorate what
has already been a hugely successful cost saving programme,
leveraging our increasing scale and reviewing our cost
management down to the lowest level.

Strategic reportGovernanceAccountswww.easyJet.comChief Executive’s review continued

Fleet as at 30 September 2015:

A319
A320
A320neo

Owned
93
70
–
163

Operating
leases
49
18
–
67

Finance
leases
6
5
–
11

% of fleet
61%
39%

Total
148
93
–
241

Future
committed
deliveries at 16
November
2015
–
56
130
186

Changes
in year
(5)
20
–
15

Unexercised
purchase
rights
–
–
100
100

Agreement for 36 additional aircraft
Due to our continued robust trading, high demand for easyJet
flights and the number of profitable opportunities we see in
our markets, we are pleased to have secured an agreement with
Airbus to take delivery of an additional 36 A320 aircraft between
2018 and 2021, all in the 186 seat configuration. These aircraft will
offer increased flexibility in fleet planning, including the faster
replacement of some of our A319 aircraft, lower overall unit costs
and ensure easyJet can continue to grow past 2019 to support
increasing total shareholder return.

easyJet is exercising rights to 30 next generation A320 NEOs
under the existing framework agreement signed in 2013(3). The
additional six aircraft are current generation A320 added to that
agreement. We have secured an additional 30 A320 NEO
purchase rights to replace those we are exercising. Funding is
available. easyJet’s balance sheet and cash generation is strong
with gearing at 30 September at 14%, marginally below the
Board’s target of 15% – 30%.

5 CULTURE, PEOPLE AND PLATFORM

easyJet is passionate about its people and we believe that it is
what sets us apart. In particular we believe that our customer-
facing employees are the best in the industry and contribute
significantly to the positive experience that our passengers enjoy,
which in turn drives their loyalty and repeat business.

It is our people who continue to deliver the strategy for the
business and will drive future success. Internally we continue to
focus on recruiting the right people, helping them to understand
the Company’s values and their role in the business and then
giving them the tools to develop a high-performance culture.

Our people are truly exceptional. They are passionate and
driven to achieving a winning strategy. They have responded
to recent tragic events with energy, care for our customers and
unbelievable stamina. We couldn’t achieve these results without
this orange spirit.

In line with the rest of the business we recruited during the year
to help support our growth, adding over 290 pilots and 1,300
cabin crew, as well as 390 people within the management,
administration, engineering and maintenance departments.
Retention rates remain good with employee turnover of
6.6% (2014: 6.7%).

DELIVERING SHAREHOLDER RETURNS
Our high revenue growth and good cost control have driven
strong profit growth and this year we have recorded record
profit for the fifth consecutive year. Our cash generation is also
strong. We generated £895 million in operating cash, before
investing £532 million, principally in the acquisition of 20 aircraft.
easyJet ended the year with net cash of £435 million and
gearing of 14%, marginally below the bottom end of the
Board’s target range.

Return on capital employed increased to 22.2% from 20.5% last
year, as the increase in profit more than made up for the increase
in fleet. As we embark on a new phase of fleet acquisition we
expect this to reduce slightly in the next few years, whilst
remaining among the higher performers in the market.

As we look forward, we expect that our ability to grow revenue
and the renewed focus on cost will deliver strong earnings
momentum and significant returns to shareholders.

easyJet plc Annual report and accounts 2015HEDGING POSITIONS
easyJet operates under a clear set of treasury policies agreed by the Board. The aim of easyJet’s hedging policy is to reduce short
term earnings volatility. Therefore, easyJet hedges forward, on a rolling basis, between 65% and 85% of the next 12 months
anticipated fuel and currency requirements and between 45% and 65% of the following 12 months anticipated requirements.

Details of current hedging arrangements are set out below:

Percentage of anticipated requirement hedged
Six months to 31 March 2016
Average rate
Full year ending 30 September 2016
Average rate
Full year ending 30 September 2017

Average rate

Sensitivities
• A $10 movement per metric tonne impacts the 2016 financial

year fuel bill by $3.5 million.

• A one cent movement in £/$ impacts the 2016 financial year

profit before tax by £1.5 million.

• A one cent movement in £/€ impacts the 2016 financial year

profit before tax by £0.7 million.

• A one cent movement in £/CHF impacts the 2016 financial

year profit before tax by £0.4 million.

OUTLOOK
We remain confident in our ability to deliver growth and returns
for shareholders as we continue to execute our strategy. For the
year to 30 September 2016 we plan to increase capacity by c.7%
and by c.8% in the first half of the year as we invest in profitable
growth. We will continue to expand in our new bases of
Hamburg, Amsterdam and Oporto as well as consolidating our
strong market positions in the UK, Switzerland, France and Italy.
Demand remains resilient and with forward bookings in line with
last year, we view the future with confidence.

Based on current market fuel prices we expect the unit fuel(4) bill
to decline by between £140 million and £160 million during the
year to 30 September 2016. As you would expect, passengers
will continue to benefit from the lower fuel cost and therefore
we expect a slight decline in revenue per seat at constant
currency during the first half of the year.

Fuel
requirement
85%
$852 /metric tonne
83%
$830 /metric tonne
60%

US Dollar
requirement
89%
$1.62
81%
$1.63
61%

Euro
surplus
75%
€1.20
80%
€1.22
54%

CHF
surplus
69%
CHF 1.46
67%
CHF 1.46
51%

$664 /metric tonne

$1.55

€1.33

CHF 1.43

We expect a slight decline in total cost per seat at constant
currency including fuel for the full year of approximately 1%, based
on jet fuel prices within a range of $450 per metric tonne to $556
per metric tonne. Cost per seat excluding fuel and currency is
expected to increase by approximately 2% for the full year. This
will be weighted towards the first six months to 31 March 2016,
primarily reflecting further increases in regulated airports costs and
navigation charges, disruption costs and an expected cold winter.

Exchange rate movements(5) are likely to have an adverse impact
of approximately £15 million in the first half year compared to the
six months to 31 March 2015 and £40 million for the 12 months
to 30 September 2016 compared to the 12 months to
30 September 2015. Consequently market expectations are
in line within the Board’s expectations for the full year.

We continue to see significant longer term opportunities to
grow revenue, profit and shareholder returns. We expect market
demand to remain strong and easyJet’s unique model and
strategy are well-positioned to capture significant value from
favourable trends in both leisure and business markets.

CAROLYN MCCALL OBE
Chief Executive

(3) The aircraft list prices based on the relevant price catalogue in January 2012, is US$76,260,569 for the current generation A320 aircraft and US$92,346,946

for the new generation A320 NEO aircraft (being the sum of the airframe list price, engine option list price and the price of certain assumed specification
change notices). Therefore the total list price for the 36 aircraft is approximately US$3,227,971,794.

(4) Unit fuel calculated as the difference between latest estimate of the 2016 financial year fuel costs less the 2015 financial year fuel cost per seat multiplied

by 2016 financial year seat capacity.

(5) US $ to £ sterling 1.522, euro to £ sterling 1.4106. Currency and fuel increases are shown net of hedging impact.

Strategic reportGovernanceAccountswww.easyJet.comKey performance indicators
Measuring our performance

SAFETY FIRST

COMPOSITE RISK VALUE
(CRV)

1.0

0.8

0.6

0.4

0.2

Sep
2012

Nov
2012

Jan
2013

Mar
2013

May
2013

Jul
2013

Sep
2013

Nov
2013

Jan
2014

Mar
2014

May
2014

Jul
2014

Sep
2014

Nov
2014

Jan
2015

Mar
2015

May
2015

Jul
2015

Sep
2015

Definition:
All reported safety-related incidents are assessed and
categorised with risk values assigned and aggregated
to form a composite risk value index.

Performance:
Safety remains our number one priority, supported by a strong
safety reporting culture. The small increases year-on-year reflect
the Company’s promotion and ongoing commitment to an open
safety reporting culture.

See Risk on pages 24-29 for more information

BUILD STRONG NO. 1 & 2
NETWORK POSITIONS

MAINTAIN COST ADVANTAGE

TOP 100 AIRPORTS WHERE WE ARE
THE NO.1 OR NO.2 AIRLINE

COST PER SEAT EXCLUDING FUEL
(£)

ON-TIME PERFORMANCE
(%)

36.62

36.25

38.17

37.70

37.35

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

Performance:
Excluding Rome Fiumicino, where
easyJet has taken a strategic decision
to reallocate aircraft to more profitable
and stronger markets within Italy, we
have maintained the number of key
airports where we have a number
one or number two position.

Definition:
Revenue less profit before tax, plus fuel
costs, divided by seats flown.

Definition:
Percentage of flights which arrive within
15 minutes of the scheduled arrival time.

Performance:
Cost per seat excluding fuel decreased
by 0.9% to £37.35, however increased
by 3.6% at constant currency due to
anticipated increases in charges at
regulated airports, increased disruption
costs and costs associated with building
a resilient operation ahead of new
crew base openings.

Performance:
Increased disruption due to the French
ATC strikes in April and the fires at Rome
Fiumicino airport have contributed to the
decrease in on-time performance to 80%
(2014: 85%).

See Chief Executives’ review
on pages 9-15 for more information

See Financial review
on pages 18-22 for more information

See Corporate Responsibility
on pages 30 to 45 for more information

easyJet plc Annual report and accounts 2015DRIVE DEMAND, CONVERSION
AND YIELDS ACROSS EUROPE

CULTURE, PEOPLE
AND PLATFORM

REVENUE PER SEAT
(£)

OVERALL CUSTOMER SATISFACTION
(%)

EMPLOYEE ENGAGEMENT (USAY)(1)
(%)

55.27

58.51

62.58

63.31

62.48

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

2014

2015

Definition:
Revenue divided by seats flown.

Performance:
Revenue per seat decreased by 1.3%
to £62.48 (2014: £63.31), impacted by
the weak Euro, with an increase of 1.5%
at constant currency.

Definition:
Customer satisfaction index, based on
results of a customer satisfaction survey
which measures how satisfied the customer
was with their most recent flight.

Performance:
Overall customer satisfaction was
lower than prior year primarily due
to increased disruption.

Definition:
Employee engagement index, based
on results of an employee survey.

Performance:
The survey result was consistent with
last year, and continues to outperform
the Ipsos Mori airline norm.(2)

See Financial review
on pages 18-22 for more information

See Corporate Responsibility
on pages 30 to 45 for more information

DISCIPLINED USE OF CAPITAL

GEARING
(%)

ROCE
(%)

ORDINARY DIVIDEND
(PENCE PER SHARE)

11.3

9.8

22.2

20.5

17.4

55.2

45.4

33.5

21.5

10.5

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

Definition:
Adjusted net debt divided by the sum
of shareholders’ equity and adjusted
net debt.

Definition:
Normalised operating profit after
tax divided by average adjusted
capital employed.

Performance:
Gearing decreased by three percentage
points to 14%.

Performance:
ROCE increased to 22.2% (2014: 20.5%).

Performance:
The Board has recommended a final
dividend of 55.2 pence per share (2014:
45.4 pence), an increase of 21.6%, which
is in line with the stated dividend policy
of a payout ratio of 40% profit after tax.

See Financial review
on pages 18-22 for more information

(1)

Surveys carried out prior to 2014 were conducted using a different methodology and the results are therefore not comparable.

(2) Ipsos Mori is a market leading research company.

Strategic reportGovernanceAccountswww.easyJet.comFinancial review
OUR FINANCIAL RESULTS

FINANCIAL OVERVIEW

Total revenue
Costs excluding fuel
Fuel
Profit before tax
Tax charge
Profit after tax

Operating profit*

* Operating profit represents profit before interest and tax.

£ million
4,686
(2,801)
(1,199)
686
(138)
548

£ per seat
62.48
(37.35)
(15.98)
9.15
(1.84)
7.31

2015

pence per
ASK
5.59
(3.34)
(1.43)
0.82
(0.17)
0.65

£ million
4,527
(2,695)
(1,251)
581
(131)
450

£ per seat
63.31
(37.70)
(17.49)
8.12
(1.83)
6.29

2014

pence per
ASK
5.69
(3.39)
(1.57)
0.73
(0.16)
0.57

688

9.18

0.82

581

8.12

0.73

In the 2015 financial year, easyJet flew
68.6 million passengers (2014: 64.8 million)
and grew profit before tax by 18.1% to
£686 million. Profit after tax was £548
million, an increase of 21.8% over last year.

Basic earnings per share increased 21.5%
to 139.1 pence.

Fuel costs decreased by £52 million, and from £17.49 to £15.98 per
seat, primarily driven by the significant reduction in market price.

Profit before tax per seat increased 12.6% to £9.15 per seat
(2014: £8.12).

The tax charge for the year was £138 million. The effective tax
rate for the year was 20.1% (2014: 22.5%), slightly lower than the
standard UK rate of 20.5%, reflecting the impact of net prior year
adjustments of £6 million.

ANDREW FINDLAY, CHIEF FINANCIAL OFFICER

Year-on-year seats flown grew by 4.9%. Total revenue per seat
fell by 1.3% to £62.48. At constant currency, revenue per seat
grew by 1.5% to £64.28.

Excluding fuel, cost per seat decreased by 0.9% to £37.35, and
increased by 3.6% at constant currency. This increase includes
higher disruption costs following French ATC strikes in April and
the impact of two fires at Rome Fiumicino airport. There were
also additional costs due to increased airport charges, the early
recruitment of crew in the winter to provide a resilient operation
ahead of three crew base openings, and a one-off settlement of
£8 million with Eurocontrol in the second half of the year.

easyJet plc Annual report and accounts 2015

Earnings per share and dividends per share

Basic earnings per share
Proposed ordinary dividend

2015
pence per
share
139.1
55.2

2014
pence per
share
114.5
45.4

Change
21.5%
21.6%

Reflecting the increased profit after tax, basic earnings per share were 139.1 pence.

In line with the stated dividend policy of a payout ratio of 40% of profit after tax, the Board is recommending an ordinary dividend
of £219 million or 55.2 pence per share, which is subject to shareholder approval at the Company’s Annual General Meeting on
11 February 2016. This will be paid on 18 March 2016 to shareholders on the register at close of business on 26 February 2016.

Return on capital employed (ROCE) and capital structure

ROCE
Gearing

2015
22.2%
14%

2014
20.5%
17%

Change
1.7ppt
(3ppt)

ROCE for the year was 22.2%, an improvement of 1.7 percentage points on the prior year. The impact of hedging reserve movements
on capital employed represents 0.8 percentage points of this increase. The acquisition of 20 aircraft during the year contributed
to an overall 9.1% increase in capital employed which was more than compensated for by the increase in profit for the year.

The combined effect of the profit for the year and the lower lease adjustment following the return of five leased aircraft, offset
the impact of capital expenditure and the ordinary dividend payment, resulting in gearing of 14% (2014: 17%), which is marginally
outside the target range of 15% to 30%.

EXCHANGE RATES
The strong performance of UK beach routes and the strengthening of sterling against Euro year-on-year resulted in an increase
in the proportion of sales denominated in sterling. The relative weakness in the Euro was observable to a greater extent in cost
than revenues due to the timing of the revenue and cost cash flows.

Sterling
Euro
US dollar
Other (principally Swiss franc)

Average exchange rates

Euro – revenue
Euro – costs
US dollar
Swiss franc

2015
49%
40%
1%
10%

Revenue

2014
47%
42%
1%
10%

2015
27%
32%
35%
6%

Costs

2014
26%
33%
35%
6%

2015
€1.29
€1.35
$1.58
CHF 1.48

2014
€1.21
€1.22
$1.59
CHF 1.49

The net adverse impact on profit due to the year-on-year changes in exchange rates was mainly driven by the weaker average
Euro rate:

Favourable/(adverse)

Revenue
Fuel
Costs excluding fuel
Total

Euro
£ million
(131)
–
127

(4)

Swiss franc
£ million
(1)
–
(3)

(4)

US dollar
£ million
4
(6)
5

Other
£ million
(7)
–
–

(7)

Total
£ million
(135)
(6)
129

(12)

Strategic reportGovernanceAccountswww.easyJet.com
Financial review continued

FINANCIAL PERFORMANCE
Revenue

Seat revenue
Non-seat revenue
Total revenue

£ million
4,616
70

4,686

£ per seat
61.54
0.94

62.48

2015

pence per
ASK
5.51
0.08

5.59

£ million
4,462
65

4,527

£ per seat
62.40
0.91

63.31

2014

pence
per ASK
5.61
0.08

5.69

Revenue per seat decreased by 1.3% to £62.48 (2014: £63.31), again impacted by the weak euro, with an increase of 1.5% at constant currency.

Load factor increased by 0.9 percentage points to 91.5%.

Average sector length increased 0.5% year-on-year contributing to a reduction in revenue per ASK of 1.8% (increased by 1.0% at
constant currency).

Costs excluding fuel

Operating costs
Airports and ground handling
Crew
Navigation
Maintenance
Selling and marketing
Other costs

Ownership costs
Aircraft dry leasing
Depreciation
Amortisation
Net interest payable
Net exchange (gains)/losses

£ million

£ per seat

2015

pence per
ASK

£ million

£ per seat

2014

pence per
ASK

1,122
505
313
229
102
276
2,547

114
125
13
8
(6)
254

14.96
6.73
4.17
3.06
1.36
3.70
33.98

1.51
1.66
0.17
0.12
(0.09)
3.37

1.34
0.60
0.38
0.27
0.12
0.33
3.04

0.14
0.15
0.02
–
(0.01)
0.30

1,107
479
307
212
103
245
2,453

124
106
12
7
(7)
242

15.48
6.70
4.30
2.97
1.45
3.41
34.31

1.73
1.49
0.17
0.10
(0.10)
3.39

1.39
0.60
0.39
0.27
0.13
0.30
3.08

0.16
0.13
0.02
0.01
(0.01)
0.31

Total costs excluding fuel

2,801

37.35

3.34

2,695

37.70

3.39

Cost per seat excluding fuel decreased by 0.9% to £37.35 but increased by 3.6% per seat at constant currency.

Airports and ground handling cost per seat decreased by 3.4% but increased by 2.4% at constant currency. This increase reflects
higher charges at regulated airports, primarily in Italy, partially offset by savings from renegotiated airport contracts. Higher levels
of de-icing costs in the first half of the year also contributed to the uplift.

Crew cost per seat rose by 0.6% to £6.73, and by 3.8% at constant currency. This was driven by early recruitment of crew in
the winter to provide a resilient operation ahead of three crew base openings together with the cost of regular pay increases.

Navigation costs decreased by 2.8% to £4.17 per seat but were up by 5.1% at constant currency due to annual price increases and
a one-off £8 million settlement with Eurocontrol.

Maintenance cost per seat increased by 3.1% to £3.06, and by 3.8% at constant currency. The 2014 financial year benefited from a
reduction in the cost of heavy maintenance following a revised engine contract, a significant proportion of this reduction was one-off
in nature and did not recur this year. This impact was partially offset by reduced maintenance from the return of five leased aircraft
during the year and some benefits of a reduced maintenance contract in the year.

easyJet plc Annual report and accounts 2015

Other costs per seat increased by 8.2% to £3.70 per seat, and by 9.6% at constant currency. There were increased disruption costs
during the year due to the French ATC strikes in April and the two fires at Rome Fiumicino airport. Investment in the development
of our digital customer proposition also contributed to the increased cost per seat.

Aircraft dry leasing cost per seat fell by 12.6% to £1.51 and by 9.7% at constant currency due to the return of five leased aircraft
during the year and the extension of 12 aircraft leases at lower monthly rentals.

Depreciation costs have increased by 11.8% on a per seat basis. The increase is principally driven by the acquisition of 20 new
A320 aircraft, which increased the average number of owned fleet by 9.7% from 150 in 2014 to 164 in 2015.

Fuel

£ million
1,199

£ per seat
15.98

2015

pence per
ASK
1.43

£ million
1,251

£ per seat
17.49

2014

pence per
ASK
1.57

Fuel cost per seat decreased by 8.6% and by 9.1% at constant currency.

During the period the average market Jet fuel price fell by 36.4% to $619 per tonne from $973 per tonne in the previous year.
The operation of easyJet’s fuel hedging policy meant that the average effective fuel price movement only saw a decrease of
10.7% to $872 per tonne from $977 per tonne in the previous year.

Cost per seat including fuel decreased by 3.4% to £53.33 and decreased by 0.4% per seat at constant currency.

NET CASH AND FINANCIAL POSITION
Summary net cash reconciliation

Operating profit
Depreciation and amortisation
Net working capital movement
Net tax paid
Net capital expenditure
Purchase of own shares for employee share schemes
Net decrease/(increase) in restricted cash
Other (including the effect of exchange rates)
Ordinary dividend paid
Special dividend paid
Net increase/(decrease) in net cash
Net cash at beginning of year
Net cash at end of year

2015
£ million
688
138
50
(98)
(536)
(92)
21
22
(180)
–
13
422
435

2014
£ million
581
118
69
(96)
(449)
(57)
(20)
26
(133)
(175)
(136)
558
422

Change
£ million
107
20
(19)
(2)
(87)
(35)
41
(4)
(47)
175
149
(136)
13

Net cash at 30 September 2015 was £435 million (2014: £422 million) and comprised cash and money market deposits of £939 million
(2014: £985 million) and borrowings of £504 million (2014: £563 million). After allowing for the impact of aircraft operating leases,
adjusted net debt has decreased by £83 million to £363 million. As a result, gearing has decreased by three percentage points to 14%
at 30 September 2015.

Net capital expenditure includes the acquisition of 20 aircraft (2014: nine aircraft), the purchase of life-limited parts used in engine
restoration and pre-delivery payments relating to aircraft purchases.

easyJet made net corporation tax payments totalling £98 million during the 2015 financial year (2014: £96 million).

Cash and money market deposits as at 30 September 2015 were £939 million, a reduction of £46 million from the end of the prior
financial year. At 30 September 2015, £619 million (2014: £572 million) of cash and money market deposits represented unearned
revenue in relation to flight seats sold but not yet flown.

On 10 February 2015 easyJet signed a $500 million revolving credit facility with a minimum five-year term, and continues to have
available funds in excess of its liquidity objective of £4 million per aircraft.

Strategic reportGovernanceAccountswww.easyJet.com

Financial review continued

Summary consolidated statement of financial position

Goodwill
Property, plant and equipment
Derivative financial instruments
Unearned revenue
Net working capital
Restricted cash
Net cash
Current and deferred taxation
Other non-current assets and liabilities

Opening shareholders’ equity
Profit for the year
Ordinary dividend paid
Special dividend paid
Movement in hedging reserve
Other movements

Change
£ million
–
335
(276)
(47)
67
(20)
13
20
(15)
77

2015
£ million
365
2,877
(297)
(619)
(350)
12
435
(219)
45
2,249

2,172
548
(180)
–
(222)
(69)
2,249

2014
£ million
365
2,542
(21)
(572)
(417)
32
422
(239)
60
2,172

2,017
450
(133)
(175)
38
(25)
2,172

Net assets increased by £77 million, with the adverse movement on the hedging reserve and the payment of the ordinary dividend more
than off set by the profit and cash generated in the period. The movement on the hedging reserve was due to the adverse mark-to-
market movement on Jet fuel forward contracts offset to an extent by favourable movements on foreign currency forward contracts.

The net book value of property, plant and equipment increased by £335 million, driven principally by the acquisition of 20 A320
family aircraft, and pre-delivery payments relating to other aircraft purchases.

ANDREW FINDLAY
Chief Financial Officer

GOING CONCERN
easyJet’s business activities, together with factors likely to affect its future
development and performance, are described in the strategic report on
pages 1 to 45. Principal risks and uncertainties are described on pages 24
to 29. Note 22 to the accounts sets out the Group’s objectives, policies and
procedures for managing its capital and gives details of the risks related to
financial instruments held by the Group.

The Group holds cash and cash equivalents of £650 million and money
market deposits of £289 million as at 30 September 2015. Total debt of
£504 million is free from financial covenants, with £182 million due for
repayment in the year to 30 September 2016.

Net current liabilities at 30 September 2015 were £489 million but included
unearned revenue (payments made by customers for flights scheduled
post year end) of £619 million.

The business is exposed to fluctuations in jet fuel prices and US dollar and
euro exchange rates. The Group’s policy is to hedge between 65% and 85%
of estimated exposures 12 months in advance, and 45% and 65% of
estimated exposures from 13 up to 24 months in advance. The Group was
compliant with this policy at the date of this Annual report and accounts.

After making enquiries, the Directors have a reasonable expectation that the
Company and the Group will be able to operate within the level of available
facilities and cash and deposits for the foreseeable future. Accordingly,
they continue to adopt the going concern basis in preparing the accounts.

VIABILITY STATEMENT
The Directors have assessed easyJet’s viability over a three-year period to
September 2018. This is based on three years of the strategic plan, which
gives greater certainty over the forecasting assumptions used.

In making their assessment, the Directors took account of easyJet’s current
financial and operational positions and contracted capital expenditure. They
also assessed the potential financial and operational impacts, in severe but
plausible scenarios, of the principal risks and uncertainties set out on pages
24 to 29 and the likely degree of effectiveness of current and available
mitigating actions.

Based on this assessment, the Directors have a reasonable expectation that
the Company and the Group will be able to continue in operation and meet
all their liabilities as they fall due up to September 2018.

In making this statement, the Directors have also made the following key
assumptions:

• funding for capital expenditure in the form of capital markets debt, bank
debt or aircraft leases will be available in all plausible market conditions;

• there will not be a prolonged grounding of a substantial portion of

the fleet; and

• in the event that the UK votes to leave the European Union, the terms
of exit are such that easyJet would be able to continue to operate
over broadly the same network as at present.

easyJet plc Annual report and accounts 2015

KEY STATISTICS

Operating measures

Seats flown (millions)
Passengers (millions)
Load factor
Available seat kilometres (ASK) (millions)
Revenue passenger kilometres (RPK) (millions)
Average sector length (kilometres)
Sectors
Block hours
Number of aircraft owned/leased at end of year
Average number of aircraft owned/leased during year
Number of aircraft operated at end of year
Average number of aircraft operated during year
Operated aircraft utilisation (hours per day)
Owned aircraft utilisation (hours per day)
Number of routes operated at end of year
Number of airports served at end of year

Financial measures
Return on capital employed
Gearing
Profit before tax per seat (£)
Profit before tax per ASK (pence)
Revenue
Revenue per seat (£)
Revenue per seat at constant currency (£)
Revenue per passenger (£)
Revenue per passenger at constant currency (£)
Revenue per ASK (pence)
Revenue per ASK at constant currency (pence)
Costs
Per seat measures
Total cost per seat (£)
Total cost per seat excluding fuel (£)
Total cost per seat excluding fuel at constant currency (£)
Operating cost per seat (£)
Operating cost per seat excluding fuel (£)
Operating cost per seat excluding fuel at constant currency (£)
Ownership cost per seat (£)
Per ASK measures
Total cost per ASK (pence)
Total cost per ASK excluding fuel (pence)
Total cost per ASK excluding fuel at constant currency (pence)
Operating cost per ASK (pence)
Operating cost per ASK excluding fuel (pence)
Operating cost per ASK excluding fuel at constant currency (pence)
Ownership cost per ASK (pence)

2015
75.0
68.6
91.5%
83,846
77,619
1,118
457,479
892,052
241
232.6
233
221.1
11.1
10.5
735
136

2014
71.5
64.8
90.6%
79,525
72,933
1,112
439,943
849,790
226
220.8
217
210.8
11.0
10.6
675
135

22.2%
14%
9.15
0.82

62.48
64.28
68.28
70.25
5.59
5.75

53.33
37.35
39.07
49.96
33.98
35.57
3.37

4.77
3.34
3.49
4.47
3.04
3.18
0.30

20.5%
17%
8.12
0.73

63.31
63.31
69.90
69.90
5.69
5.69

55.19
37.70
37.70
51.80
34.31
34.31
3.39

4.96
3.39
3.39
4.65
3.08
3.08
0.31

Increase/
(decrease)
4.9%
6.0%
+0.9ppt
5.4%
6.4%
0.5%
4.0%
5.0%
6.6%
5.3%
7.4%
4.9%
0.5%
(0.9%)
8.9%
0.7%

+1.7ppt
-3ppt
12.6%
12.0%

(1.3%)
1.5%
(2.3%)
0.5%
(1.8%)
1.0%

(3.4%)
(0.9%)
3.6%
(3.6%)
(1.0%)
3.7%
(0.4%)

(3.9%)
(1.5%)
3.1%
(4.1%)
(1.5%)
3.1%
(1.0%)

Strategic reportGovernanceAccountswww.easyJet.com

Risk
Risk management framework

The Group faces a number of risks which, if they arise, could affect its ability to achieve
its strategic objectives. The Board is responsible for determining the nature of these risks
and ensuring appropriate mitigating actions are in place to manage them effectively.

Risk appetite
The level of risk it is considered appropriate to accept in
achieving easyJet's strategic objectives is reviewed and validated
by the Board on an annual basis. The appropriateness of the
mitigating actions is determined in accordance with the Board
approved risk appetite for the relevant area.

Risk management process
The diagram below sets out easyJet's risk management process.
This is co-ordinated by the risk team, which reports to the
Chief Financial Officer. The key elements of the process are:

• The risk management process begins with the identification of
significant risks by each function. Risk identification workshops
are run to identify matters which could materially impact on
the functions or the wider business. These are attended by
Executive Management Team members and senior managers.

• Risks are assessed taking into account the potential impact
and likelihood of the risks occurring and the key mitigations
identified. The current level of risk is compared to the Board's
risk appetite to determine whether further mitigations are

required. Risks specific to the function's activities are managed
within the function on an ongoing basis with regular follow-up
by the risk team.

• The most significant risks from each function (based on

materiality, cross-functional impact and/or those which have
common themes across the business) are reviewed by the
Risk Evaluation Group, which consists of members of senior
management from each function. This Group's role is to
debate, agree and prioritise the principal business risks.

• These risks, which form the basis for the principal risks and
uncertainties detailed in this section, are challenged and
validated by the Executive Management Team and the Board.

• The principal business risks are monitored and managed

throughout the year by the Executive Management Team
and the Board with the risk team. Risk reports are provided
to the Board on a quarterly basis as a minimum.

• In addition to supporting the Board, the risk team supports the
business in its management of risks relating to key projects,
third parties, countries and bases.

Turn to page: 56
for further details on Risk Management and Internal control

Risk identification & assessment

RISK MANAGEMENT
PROCESS

OPERATIONAL
RISKS

FINANCIAL
RISKS

REPUTATIONAL
RISKS

FEEDBACK FROM THE BOARD

Challenge & ownership

SPONSORSHIP
AND RISK
APPETITE
ASSESSMENT

SAFETY
RISKS*

RISK
EVALUATION
GROUP
PRIORITISES AND
FILTERS PRINCIPAL
BUSINESS RISKS

EXECUTIVE
MANAGEMENT
TEAM

PLC
BOARD

PROJECT/
PROGRAMME
RISKS

FEEDBACK FROM THE BOARD

COUNTRY/
BASE RISKS

THIRD PARTY
RISKS

Risk identification & assessment

A separate management system monitors
flight safety risks (easyJet's safety process is
described in more detail on pages 31 to 32).

easyJet plc Annual report and accounts 2015Principal risks and uncertainties

The risks and uncertainties described below are considered, at this
point in time, to have the greatest effect on easyJet's strategic
objectives. This list is not intended to be exhaustive. Whilst easyJet
can monitor risks and prepare for adverse scenarios, the ability
to affect the core drivers of many risks is not within the Group's
control, for example adverse weather, pandemics, acts of terrorism,
changes in government regulation and macroeconomic issues.

Link to strategy:

1
2
3

Build strong number 1 and 2 network positions

Drive demand, conversion and yields

Maintain cost advantage

4
5

Disciplined use of capital

Culture, People & Platform

SAFETY FIRST

Risk description

Mitigation

Major safety incident
A major safety incident (such as a hull loss)
could adversely affect easyJet's reputation and
its operational and financial performance. The
impact of such an incident would be heightened
if easyJet failed to react promptly and deal with
it effectively.

Link to strategy:
1 2 3 4 5

Security threat or attack
Failure to identify or prevent a major security-
related threat or attack, or react immediately
and effectively, could adversely affect easyJet's
reputation and its operational and financial
performance.

Link to strategy:
1 2 3 4 5

easyJet's number one priority is the safety and security of its customers
and people.

A Safety Committee (a committee of the Board) provides oversight of
the management of easyJet's safety processes and systems

Turn to pages: 52-53
for further details

A Safety Review Board (at Executive Management Team level) is responsible
for directing overall safety policy and governance.

Safety Action Groups from across the airline are responsible for the identification,
evaluation and control of safety-related risks.

easyJet operates a Safety Management System using a leading software system
(SafetyNet). This is used to:

• collect and analyse safety data (enabling potential areas of risk to be

projected); and

• enable learning from easyJet and industry events/incidents to be captured

and embedded into future risk mitigations.

A robust incident reporting process and 'Just Culture' are in place.

Turn to page: 31
for further details

easyJet has an emergency response process and performs regular crisis
management exercises.

Hull (all risks) and liabilities insurance (including spares) is held.

easyJet has an industry-leading fatigue risk management system and is currently
implementing the EASA Flight Time Limitations regulations.

A Security Decision Making Group, comprising the Chairman, Chief Executive,
appropriate members of the Executive Management Team and other senior
management, determines whether easyJet should continue to operate in
countries or areas affected by security-related incidents.

The Director of Safety and Security and the Head of Security work with
authorities and governments around easyJet's network to assess whether
security measures are effective and in compliance with regulatory requirements.
A significant amount of work is carried out with the aim of enhancing:

• early identification of developing and emerging security risks;

• the active management of security risks;

• the methods for reducing the impact of any security-related incident; and

• the Group's security culture and awareness.

Strategic reportGovernanceAccountswww.easyJet.comRisk continued

OPERATIONAL EXCELLENCE

Risk description

Mitigation

Significant network disruption
A number of factors could lead to widespread
disruption to easyJet's network, including forces
of nature (extreme weather, volcanic ash, etc.),
terrorism, epidemics/pandemics or the closure
of a key airport.

Significant disruption to the network could
significantly adversely affect easyJet's reputation
and its operational and financial performance.

Link to strategy:
1 2 3 4

There are processes in place, and clear roles and responsibilities within teams
across the business, to manage significant disruption.

A business disruption team, which includes senior management from relevant
business areas, determines and initiates required action.

A business continuity programme is in place.

Board policy is to maintain target liquidity at £4 million per aircraft, which is
supported by a $500 million (five-year) revolving credit facility provided by a
group of 12 relationship banks. This allows the Group to better manage the
impact of downturns in business or temporary curtailment of activities.

In addition, easyJet holds business disruption insurance.

Critical IT system failure and continuity
of services
easyJet is dependent on a number of key
IT systems and processes.

A loss of critical systems or access to facilities,
including the website, could lead to significant
disruption and could have an adverse
operational, reputational and financial impact.

Link to strategy:
2 3 5

Delivery of projects supporting the
business strategy
The business is undertaking a number of
key projects and programmes to deliver
key elements of the strategy.

If these projects and programmes fail to deliver
the business benefits and cost savings planned,
easyJet could fall short of its planned
financial results.

Link to strategy:
1 2 3 4 5

Third-party service providers
easyJet has entered into agreements with
third-party service providers for services
covering a significant proportion of its
operational and cost base.

Failure to adequately manage third party
performance could adversely affect easyJet's
reputation and its operational and
financial performance.

Link to strategy:
3 5

Key systems are hosted across two data centres in two distinct locations, with
failover arrangements between them, or within third-party provider locations,
for which failover arrangements are contractually agreed with them.

IT disaster recovery plans are in place and tested regularly to identify areas
for improvement in resilience.

An IT incident management team is in place to respond rapidly to any
unforeseen incidents that may arise.

If there is a need to relocate critical staff due to the loss of facilities, alternative
sites are available at short notice.

A Steering Group, consisting of the Executive Management Team and key
senior management, provides challenge to project teams, monitors progress
and ensures that decisions are made at the appropriate level.

Key IT projects or programmes have additional oversight through the IT
Governance and Oversight Committee (a committee of the Board).

Turn to page: 59
for further details

A portfolio management office is in place to oversee delivery of projects and
programmes, and track budgets and realisation of benefits.

A project management framework, which sets out the governance requirements,
key processes and controls, is followed by all projects and programmes.

easyJet has a centralised procurement team which aims to provide the Group
with competitive supply options.

Following the supplier selection process the contract is managed according
to easyJet's supplier management framework, whose key principles cover
defined ownership and accountability, a governance framework and
effective communication.

Alternative service providers are identified and assessed within the major markets
in which easyJet operates.

Robust transition plans are agreed in the event of switching suppliers to enable
an acceptable level of service to be maintained.

easyJet plc Annual report and accounts 2015Link to strategy:

1
2
3

Build strong number 1 and 2 network positions

Drive demand, conversion and yields

Maintain cost advantage

4
5

Disciplined use of capital

Culture, People & Platform

OPERATIONAL EXCELLENCE CONTINUED

Risk description

Mitigation

Industrial action
easyJet, and the aviation industry in general,
has a significant number of employees who are
members of trade unions. Industrial action taken
by easyJet employees, or by the employees of
key third-party service providers, could impact on
easyJet's ability to maintain its flight schedules.

This could adversely affect easyJet's reputation
and its operational and financial performance.

As easyJet operates across Europe there are 18 unions and nine representative
bodies across eight countries of which crew are members. easyJet seeks to
maintain positive working relationships with all trade unions and other
representative bodies.

Each of the countries in which easyJet operates has localised employment terms
and conditions. This mitigates the risk of large-scale internal industrial action
occurring at the same time.

Processes are in place to adapt to disruptions as a result of industrial action.

Link to strategy:
2 3 5

Senior management succession
easyJet's current and future success is reliant on
having the right people with the right capabilities
in key leadership positions.

Failure to develop and grow the capabilities
and behaviours required of senior management
so that there are clear successors for all key
business roles, could adversely affect easyJet's
ability to deliver its strategic objectives.

Link to strategy:
5

Single fleet risk
easyJet is dependent on Airbus as its sole
supplier for aircraft.

There are significant cost and efficiency
advantages of a single fleet, however,
there are two main associated risks:

• technical or mechanical issues that could
ground the full fleet, or part of the fleet,
which could cause negative perception; and

• valuation risks which crystallise when aircraft
exit the fleet. The main exposure at this time
is with the ageing A319 fleet, where easyJet
is reliant on the future demand for second-
hand aircraft.

Link to strategy:
3 4

easyJet's aim is to develop talent from within. There are several talent
development programmes in place for individuals who have been identified
for fast-tracking into more senior roles as vacancies arise.

In addition, a management development programme is in place to develop
people management and senior leadership capabilities. These programmes
operate at various levels within the organisation.

There is an annual succession planning process.

The Board considers that the efficiencies achieved by operating a single fleet
type outweigh the risks associated with easyJet's single fleet strategy.

The Airbus A320 family (which includes the A319) is one of the two primary fleets
used for short-haul travel. There are approximately 6,000 A320 family aircraft
operating with a proven track record for reliability.

easyJet operates a rigorous established aircraft maintenance programme.

To mitigate the potential valuation risks, easyJet regularly reviews the second-
hand market and has a number of different options when looking at fleet
exit strategies. Leasing facilitates the exit of A319 aircraft from the fleet by
transferring residual value risk, and also provides flexibility in managing
the fleet size.

Strategic reportGovernanceAccountswww.easyJet.comRisk continued

STRONG BALANCE SHEET

Risk description

Mitigation

Financial risk
easyJet is exposed to a variety of financial risks
which could give rise to adverse pressure on
the financial performance of the Company,
e.g. costs, revenue.

• Market risks – significant/sudden increases in

jet fuel prices, currency fluctuations or interest
rates which have not been adequately
protected through hedging

• Counterparty risk – non-performance of

counterparties used for depositing surplus
funds (e.g. money market funds,
bank deposits)

• Liquidity risk – misjudgement in the level
of liquidity resulting in inability to meet
contractual/contingent financial obligations
or the inability to fund the business
when needed.

Link to strategy:
3 4

The Finance Committee (a committee of the Board) oversees the Group's
treasury and funding policies and activities.

Turn to page: 59
for further details

This includes:

• a treasury policy setting out Board approved strategies for foreign exchange

and fuel hedging, along with liquidity, interest rate management, counterparties
and cash deposit limits; and

• reviewing and reporting on compliance with Board treasury policies.

The policy is to hedge within a percentage band for a rolling 24-month period.

Board policy is to maintain target liquidity at £4 million per aircraft, which is
supported by a $500 million (five-year) revolving credit facility provided by
a group of 12 relationship banks. This allows the Group to better manage
the impact of downturns in business or temporary curtailment of activities.

A strong balance sheet supports the business through fluctuations in
economic conditions.

REPUTATIONAL RISKS

Risk description

Mitigation

Major shareholder and brand
owner relationship
easyJet has two major shareholders (easyGroup
Holdings Limited and Polys Holding Limited)
which, as a concert party, control 33.73% of
its ordinary shares. Shareholder activism could
adversely impact the reputation of easyJet
and cause a distraction to management.

easyJet does not own its Company name or
branding, which is licensed from easyGroup Ltd.
The licence includes certain minimum service
levels that easyJet must meet in order to retain
the right to use the name and brand. The easyJet
brand could also be impacted through the actions
of easyGroup or other easyGroup licensees.

Link to strategy:
4

easyJet has an active shareholder engagement programme led by its investor
relations team. As part of that programme easyJet engages with easyGroup
Holdings Limited on a regular basis alongside its other major shareholders.

In addition to engaging with easyGroup as part of the shareholder engagement
programme, the Company has a relationship agreement with easyGroup and
Polys Holdings in line with the controlling shareholder regime as set out in the
Financial Conduct Authority's Listing Rules.

Turn to page: 83
for further details

Representatives from the Board and senior management take collective
responsibility for addressing issues arising from any activist approach adopted
by the major shareholder. The objective is to proactively address issues before
they arise and anticipate and plan for potential future activism.

The brand licence agreement with easyGroup Ltd provides for the regular
meeting of senior representatives from both sides to actively manage brand-
related issues as they arise. Such meetings occur on a quarterly basis and have
proven effective. easyJet also monitors compliance with brand licence service
levels and has a right to take steps to remedy any instance of non-compliance.

easyJet plc Annual report and accounts 2015Link to strategy:

1
2
3

Build strong number 1 and 2 network positions

Drive demand, conversion and yields

Maintain cost advantage

4
5

Disciplined use of capital

Culture, People & Platform

REPUTATIONAL RISKS CONTINUED

Risk description

Mitigation

An Information Security Steering Group, chaired by the General Counsel,
oversees any developments in data threats and controls and determines
whether appropriate responses are being taken to them.

There is a dedicated information security team to monitor and manage
information security risk. The following controls are in place:

• monitoring of secure systems against unauthorised access;

• reviewing the security of internal systems and easyJet.com through quarterly

vulnerability scanning;

• periodic mandatory employee security training to maintain staff awareness;

• considering information security risks within procurement processes and

the introduction of new systems and IT services;

• monitoring and control of scanning software for fraudulent customer activity

by the revenue protection team; and

• providing robust physical security at head office buildings.

Given the nature of this risk the appropriateness of the controls is under
continuous review.

easyJet seeks to have a rapid response to any such activity that may impact
easyJet's ability to grow the business.

Competitor and consolidation activity is monitored, enabling key routes/positions
to be readily defended.

The Network Development Forum, a cross-functional panel of senior executives,
approves new bases and the allocation of assets around the network.

Fleet framework arrangements, together with the Group's leasing policy, provide
easyJet with significant flexibility in respect of scaling the fleet according to
business requirements.

Strong cost control is a key behaviour across the Company, with initiatives to
drive cost reduction and improve efficiency in targeted areas.

The Regulatory Affairs Group co-ordinates easyJet's role in influencing future
and existing policy and regulations which affect the airline industry.

Country oversight Boards are established for easyJet's main markets, raising
awareness of potential changes and impacts in the different countries. Industry
bodies and legal advisers in-country are also used to understand and develop
appropriate responses to new legislation.

easyJet has an in-house legal team to monitor compliance with formal
regulatory requirements.

Cyber threat and information security
easyJet receives most of its revenue through
credit card transactions and operates as an
e-commerce business. It faces both external
cyber threats and internal risks to its data
and systems.

A security breach could negatively impact
easyJet's reputation and have an adverse
operational and financial impact.

Link to strategy:
2 3 5

Competition and industry consolidation
easyJet operates in competition with both
flag carriers and other low-cost airlines.

easyJet's key competitive advantages include
its network, cost base, digital innovation and
efficient and robust capital structure. Failure
to retain these advantages or react quickly to
competitor changes could have an adverse
financial impact.

Industry consolidation could also affect the
competitive environment in a number of
markets. This could cause a loss of market
position and erosion of revenue.

Link to strategy:

1 2 3

Legislative and regulatory risks
easyJet is exposed to legislative and regulatory
oversight across its network and all countries where
it sells its product via a native language website. This
will increase as easyJet grows geographically and
the number of local language websites increases.

Failure to comply with legislative and regulatory
requirements (or interpretations thereof), such as
local consumer laws, passenger compensation for
certain long flight delays and cancellations, and
environmental and airport regulations, in the
jurisdictions in which easyJet operates could have
an adverse reputational and financial impact.

In the event the UK votes to leave the European
Union, the terms of exit could have implications
for easyJet to continue to operate the network it
does currently.

Link to strategy:
2 3 4 5

Strategic reportGovernanceAccountswww.easyJet.comCorporate responsibility
How we run our business responsibly

The nature of our business means that our carbon emissions will
be our largest environmental impact for the foreseeable future.
We continue to be an efficient airline, due to a modern fleet
and high load factor. It is the right thing to continue to work to
reduce our environmental impact, but it is also absolutely central
to maintaining our cost advantage and wider business efficiency.
In 2013 we set targets to reduce our carbon emissions per
passenger kilometre by 5% by 2022 and we have already
achieved a 3% reduction, so we have increased the target
further to 8% by 2020.

We also want to have strong, positive and effective relationships with
our partners. We already have very good relationships with most of
them. We have established a supplier relationship management
framework, based on the easyJet values. This guides relationships
and clearly sets out our partners' rights and responsibilities.

We are working to reduce and manage waste from our
operations. A new project is being led by one of our Luton-based
pilots who has also recently completed an MBA in business
sustainability. The project will focus on reducing the amount
of waste from on-board our aircraft, by engaging with our
customers, our crew and our supply chain.

For the first time, this year we are including an independent
report from Rt Hon the Lord Blunkett, Chair of the easyJet
Special Assistance Advisory Group, in the annual report. This
group has continued to provide valuable advice and challenge
to easyJet on how we support people who need assistance
when travelling. A visible sign of the progress this year is that
every easyJet aircraft now has an on-board wheelchair.

I am very pleased that this year we have passed the milestone
of £5 million in fundraising for Unicef. This is down to our crews'
on-board appeals and the generosity of our customers. In light
of this success, and our excellent relationship with Unicef, we
decided this year to continue the partnership for a further three
years. The renewed partnership aims to raise at least a further
£5 million and increase the work between easyJet and Unicef
in all key European markets.

Our customers and employees have told us that they value the
Unicef partnership but they also want us to increase the
contribution we make locally. We have recently expanded this
work, initially in the Luton area around our head office, in
partnership with a new organisation called Connecting
Enterprising Women. They have partnered easyJet female
managers with young women in education, to provide mentoring
and careers advice. This complements easyJet's emphasis on
mentoring within the business to support career and personal
development. Over the next year we hope to develop this
programme and look for other ways we can have a positive
impact in the areas around some of our key bases.

easyJet has made good progress, as seen by the varied
initiatives. Our people are energised and motivated by these
priorities and we all recognise we can continue to do a lot more.

CAROLYN MCCALL OBE
Chief Executive

CAROLYN MCCALL OBE, CHIEF EXECUTIVE

At easyJet we seek to be a responsible company
and make a positive contribution to society. We
want to do the right thing for our customers, our
people, our partners, the communities in which
we operate and the environment. This is very
important to the continued success of the
business. Everyone who has a relationship with
easyJet expects the airline to act responsibly
and continue to improve.

Safety is always easyJet's highest priority and comes before any of
our other responsibilities. We continue to maintain comprehensive
processes and structures to monitor and manage safety-related risk
throughout the Company.

We remain passionate about making travel easy and affordable for
our customers. Our Customer Charter has continued to be a guide
for all our people. This year we have particularly focused on how we
support customers when there is disruption to their journey. We have
made improvements to our support at airports and in our
communication to customers, including innovative use of digital
technology such as the easyJet mobile app.

Our culture is an essential part of our success. Bringing the values of
safety, pioneering, one team, passion, integrity and simplicity alive
every day is important to all our people. So it is essential that easyJet
continues to attract, develop and retain the right people. It is our
people who will help to meet our ambition of being Europe's
preferred short-haul airline.

We value diversity and believe it contributes to our continued
success. One aspect of this is female talent in our business. easyJet
already focuses on ensuring there is a pipeline of women coming up
through the organisation. The easyJet women's network started four
years ago and has now got great momentum, which comes from
the women across our airline. It strengthens this pipeline of talent.

As part of increasing the representation of women across the airline,
we are now increasing our efforts to recruit female pilots. We
recognise that the proportion of our pilots who are female is too low,
though this is common in the airline industry. We want to encourage
more women to join and stay in this interesting, highly-skilled and
well-rewarded profession. We have set an initial target to double the
proportion of female new entrant pilots over two years, as the first
phase of a long-term strategy to increase the proportion of female
pilots in the airline and bring more women into more senior ranks
and management roles.

easyJet plc Annual report and accounts 2015SAFETY FIRST
easyJet's highest priority is the safety of its
passengers and people. Safety is a guiding
principle and informs the decisions made by the
Company. The airline continues to develop an
open safety culture that promotes continuous
improvements in safety performance.

Comprehensive processes and structures are
maintained to monitor and manage safety-related
risk throughout the airline. The safety management
structure is led from the top of the organisation.

The Chief Executive of easyJet Airline Company Limited (EACL)
and the Accountable Manager of easyJet Switzerland S.A. (EZS)
are responsible for all aspects of safety delivery, including
compliance obligations under the EACL Air Operator Certificate
and the EZS Air Operator Certificate, respectively. The Company
also has Nominated Persons responsible for safety in certain
aspects of the airline's operations.

The Chief Executive chairs the Company's Safety Review Board
which meets monthly to assess reports from the Safety Action
Groups across the airline. This review and assessment process
delivers monthly reports to both the UK Civil Aviation Authority
and the easyJet Board.

To further strengthen the safety structure and allow more
in-depth review of safety matters, the easyJet Board established
the Safety Committee in 2013.

Turn to page: 52
For further information on the Safety Committee

No compromise on safety
easyJet does not compromise on safety. The Company has
established a leading-edge Safety Management System and
Fatigue Risk Management System which are well established and
incorporate rigorous reporting processes. Through these systems
easyJet works to drive safety performance improvements and
reduce risks to its people, passengers and suppliers.

easyJet has long pioneered innovative solutions to improve
safety and continues to seek better ways to support our people
to improve safety performance. In particular the airline continues
to focus on developing its understanding of human factors to
support this.

The airline's Fatigue Risk Management System provides analytical
data to determine reliable methods of predicting fatigue and
alertness in pilots. It was established over 10 years ago and is
one of only two such systems approved for use by the UK Civil
Aviation Authority (CAA). easyJet has collaborated with the
US National Aeronautics and Space Administration on fatigue
research and analysis and is now working with the CAA to
develop fatigue management principles which will be a
benchmark for the rest of the aviation industry.

easyJet is now also able to use data from flights, following
agreement from many pilot representative groups across
Europe, to monitor flight behaviours and better understand
any operational issues which should be considered in relation
to this important area.

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for more detail on our CR performance

OUR NEW DIRECTOR OF SAFETY AND SECURITY,
GEOFF WANT

This year easyJet appointed a new Director of Safety and
Security. Geoff Want joined easyJet in October 2014, having
previously been a non-executive aviation safety adviser to
the Board since December 2012.

Geoff reports directly to the Chief Executive and Chairman
and has a remit to act independently outside of other
operational or commercial considerations.

Geoff is an aviation safety expert and previously held the role
of Director of Safety, Security and Risk Management at British
Airways during his over 30 year career at the airline. At British
Airways he became a member of the airline's Executive
Board, where he had responsibility for operational planning
and delivery, whilst also developing the company's risk
management system. He later became aviation safety adviser
to Rio Tinto, the global mining company. Throughout his
career Geoff has worked closely with aviation safety and
regulatory bodies.

The Company's strong focus on safety has helped it meet
the new regulatory compliance requirements prescribed by
the European Aviation Safety Agency (EASA).

easyJet continues to work closely with EASA on the
development of future safety regulations. This has included
easyJet's Director of Safety and Security being a member of
EASA's EU taskforce following the Germanwings incident.

In advance of the recommendation of EASA and the CAA,
easyJet implemented measures to ensure at least two crew
are in the cockpit at all times during a flight. All easyJet pilots
are licensed by their national regulator and as part of this are
subject to extensive regular medical assessments. In addition,
all easyJet's pilots are continually scrutinised and monitored
from recruitment to training and operating to ensure they are
fully fit to operate.

easyJet takes all incidents of disruptive behaviour on-board very
seriously. The Company does not tolerate abusive or threatening
behaviour on-board and seeks prosecutions where appropriate.
It has established an internal working group on this issue and is
also an active participant in the British Air Transport Association
group, which brings together airlines, airports, airport retailers
and the police.

This year easyJet has also joined the Flight Safety Foundation,
an international non-profit organisation whose purpose is to
provide impartial, independent, expert safety guidance and
resources for the aviation and aerospace industries.

www.easyJet.com
Corporate responsibility continued

Safety reporting
Under easyJet's Air Operator Certificates it is required to
regularly report operating safety performance to the National
Aviation Authorities (NAAs) and to EASA.

Injuries that occur on-board easyJet aircraft are reported under
NAA regulations. easyJet has updated its Operational Safety
reporting system, SafetyNet, to ensure that RIDDOR (Reporting
of Injuries, Diseases and Dangerous Occurrences Regulations)
categories are accurately reflected and reviewed as part of the
investigation process. easyJet continues to review and develop
this process so that these categories are thoroughly investigated,
reviewed and reported.

Protecting customers and employees
easyJet's security team works to reduce vulnerability to security-
related risks. The team co-operates closely with government and
regulatory agencies throughout the network, to ensure strict
compliance with security regulations. Security risk assessments are
conducted for each airport and country to which easyJet flies.
The highest standards of vigilance are maintained regarding the
current geopolitical situation within those countries to inform these
assessments. easyJet implements measures to protect the
Company from corporate and aviation security risks, ensuring
internal governance of business-sensitive and personal data, vetting
our people and asset protection.

A RESPONSIBLE AND SUPPORTIVE EMPLOYER
easyJet wants to be an employer that attracts
and retains the best people, values and promotes
diversity, and seeks to support and develop its
employees. It is on the strength of its people that
it will be able to meet the Company's ambition
to be Europe's preferred short-haul airline.

The airline has a three-part people strategy to help deliver this:

AT THE GATE

Making sure that the Company has the right people, in the right
job, at the right time, equipped to succeed and supported by
processes that work.

ON BOARD

Is about living the values, wanting to be part of the Company's
success and knowing the part they play in delivering this.

ABLE TO FLY
Means promoting a high-performance culture where continuous
improvement is expected, managed and rewarded so that all
people achieve their potential and deliver success.

Safety in the supply chain
easyJet has established a new risk-based programme focused
around appropriate safety standards throughout its supply chain,
including for our ground handling agents. This has involved the
promotion of improved communication and engagement on
safety issues and the sharing and learning from best practice.

At the gate – ensuring easyJet has the right people
The significant growth of easyJet has meant it has been crucial
to recruit high numbers of crew across Europe. Through a
high-volume recruitment programme it has successfully
maintained optimum employee levels and recruited over
290 pilots and over 1,300 cabin crew during the year.

DEFIBRILLATORS ON-BOARD

Sudden cardiac arrest is a leading cause of death in Europe
and there are a significant number of cardiac arrests on
aircraft each year. According to the British Heart Foundation,
after a cardiac arrest, every minute without cardiopulmonary
resuscitation and defibrillation reduces someone's chance of
survival by 10%.

All easyJet aircraft now have on-board defibrillators. These
devices are simple to use and give crews and any medical
professionals travelling as passengers another option if
someone on-board is having severe heart problems.

Instruction on how to use defibrillators is now part of easyJet
crew training, in addition to the regular first aid training.

In addition, the Company has recruited 390 people within
the management and administration and engineering and
maintenance teams to support the growth of the business. In
line with retention and development goals, 35% of these were
recruited internally. As at 30 September 2015 easyJet employed
10,388 (2014: 9,649) people across Europe.

The Company's recruitment processes are supported by
continued high retention rates. This year employee turnover
was 6.6%, compared to 6.7% in the 2014 financial year. Within
the different easyJet communities the turnover this year was:
11.3% for management and administration and engineering and
maintenance, 2.7% for pilots and 7.2% for cabin crew.

On board – living easyJet's values
Once on board easyJet works with its people to help them
understand easyJet's values and their role in the business and
to help them achieve their full potential. The Company does this
in a number of ways.

Induction
On joining the business all new recruits receive a detailed
induction programme to introduce them to the business,
its values and their role within easyJet. Induction includes
mandatory e-learning in key areas including ethics, safeguarding
our reputation, our customers (with a focus on the Customer
Charter) and about customers who have reduced mobility. In
addition, new recruits attend face-to-face induction sessions
where they come together to learn about the business through
interactive exercises.

easyJet plc Annual report and accounts 2015OUR VALUES

Our values underpin everything we do. They reflect our
ambition and shape who we are, both as a company and
as people. We actively live and breathe them, every day.

EMPLOYEE TURNOVER (%)

6.6%

9.7

SIMPLICITY

ONE
TEAM

-0.1ppt
from 2014

Survey highlights:

7.5

6.5

6.7

6.6

2011

2012

2013

2014

2015

SAFETY
at the heart of
everything we do

INTEGRITY

• Employee engagement index (an overall result, based on

survey results) – 83% (2014: 83%)

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PASSION

PIONEERING

Local employment and employee representatives
easyJet employs people on local contracts in eight countries
across Europe, complying with national laws. This has a higher
cost than the approach taken by some other airlines who
employ all their people on one contract, irrespective of where
they may work. easyJet does this so that its roles are attractive
locally and to reflect each country's employment practices.

Many of our employees are represented by unions or other
representative bodies. easyJet recognises the importance of
actively engaging with these bodies across its operations to
promote the success of the business. It works with eighteen
unions and nine representative bodies across eight countries,
undertaking dialogue and negotiation on a regular basis. easyJet
actively supports employee representatives by allowing them
released employee representatives for a total of 4,397 days at
an estimated cost of £1.6 million.

Engagement
easyJet works to promote its values and maintain a positive
culture within the business.

To assess the impact of this activity on employee engagement
easyJet conducts regular surveys. The survey results for 2015 show
that easyJet outperforms the airline norm based on data from the
survey provider Ipsos Mori, which aggregates employee survey
data from its many airline clients to provide industry averages.

• The extent to which employees understand and support

what easyJet is trying to achieve as an organisation – 87%
(2014: 86%)

• The extent to which employees enjoy what they do and make
a positive contribution to the organisation – 80% (2014: 80%)

• The extent to which the organisation is a good place to work

and that employees want to continue being part of that – 84%
(2014: 83%)

Following the survey easyJet has identified two main focus areas
for improvement. It will respond to employee feedback on
rosters and develop a plan to improve this process. easyJet
will also consider how it engages with its employees at London
Gatwick, the airline's largest base. This is particularly important
as the engagement of easyJet's people and operational
performance at London Gatwick have a significant impact on
the airline's network as a whole.

easyJet's people continue to show a high level of commitment
to working at easyJet, demonstrated by high employee
attendance, which was 96.2% this year.

Able to fly – developing a high-performance culture
Learning and development
Supporting people to develop to their full potential and ensuring
they have the right skills for their role is an essential part of
maintaining a high-performance culture.

easyJet provides significant new entrant and ongoing training
for its pilots and cabin crew. To meet the airline's future training
needs it has this year opened a new training centre at London
Gatwick Airport, which will be used by crew from across the
easyJet network.

The airline has an established pilot cadet programme, in
partnership with CTC Aviation and CAE Oxford Aviation
Academy, to train people for their first full-time flying role.
This year 223 cadets have completed their training with
these providers and are now flying with easyJet.

In addition to role-specific training, easyJet also offers learning
and development opportunities to all of its people. This year
it offered 115 face-to-face training sessions, which had over
1,200 participants, as well as 100 e-learning options.

www.easyJet.com
Corporate responsibility continued

easyJet has an apprenticeship programme within its engineering
team, with currently 14 apprentices in the airline. The apprentices
receive 8 months' classroom training, followed by 16 months with
easyJet in a mix of aircraft maintenance and office-based roles.
On completion of the programme the apprentices receive an
NVQ Level 3 in aeronautical engineering and an 'A licence' to
carry out standard maintenance tasks on aircraft.

easyJet's graduate programme currently has 38 participants from
across Europe. The graduates spend two years in different parts
of the airline to develop their skills and increase their knowledge.

easyJet also uses mentoring as a way to develop people, with
benefits for both the mentee and mentor. All easyJet pilots are
mentored by a more senior colleague and mentoring also takes
place within the Company's management and administration
community.

One team value
easyJet holds an annual 'Spirit Awards' event which celebrates the
work of employees who live the easyJet values in their behaviour.
easyJet managers decide which employees will get a ticket to
the celebration event, which is attended by over 500 people.

easyJet bases and its head office also have culture teams in
which employees volunteer to arrange activities such as team
social events.

easyJet continues to support its managers through the
Company's people management development programme,
which aims to provide people managers with the skills and
knowledge they need to effectively manage their direct reports.
This programme is accredited by the University of Bedfordshire
and counts towards ongoing study for an MBA. A total of 247
managers have now completed this course, including 72 this year.

Connected crew
Connected crew is a programme to engage pilots more closely
with the business by improving communication and offering
further learning and development opportunities. Pilot focus
groups are carried out to give pilots the opportunity to ask
questions and provide feedback to the management team
face-to-face. Since the programme began in 2013 sessions have
been held at London Gatwick, Milan, Paris Charles de Gaulle,
Bristol and Manchester and attended by over 980 pilots.

Command leadership training has been enhanced, so that it
covers leadership and commercial awareness for new and
existing captains. Since the programme began in 2013 over
1,200 captains have received the training.

A culture of wellbeing
The physical and psychological health of the Company's people
is important for its continued success and growth. easyJet's
overall aim is to keep its people happy, healthy and in work.
By analysing management information that comes from its
specialist providers the airline has been seeking to improve
existing services and provide targeted help and support for
employees. Findings indicate that although it is necessary to
continue to support and promote good physical health, there
is a need to provide additional focus on people's psychological
health. Current initiatives in this area include developing a peer
support network, as well as improved training on mental health
for all of its people.

easyJet is working with its new occupational health and
employee assistance provider to further develop the support
it offers to its employees. easyJet staff can now complete a
health risk assessment, which gives a personalised health report
and suggestions for positive lifestyle changes. There are also
podcasts, factsheets and 'ask the expert' forums for our people
to access information on a wide range of topics covering mental
health, physical health and life skills such as parenting,
relationships and debt management.

Recognition and reward
easyJet's approach to reward is critical to its ability to attract
and retain people. The Company offers a competitive reward
package designed to deliver a performance culture, with the
emphasis on cash and variable pay rather than fixed benefits.
The reward package includes an annual performance-driven
bonus (based on personal and Group performance) and share
awards (based on the financial performance of the Group).

easyJet is committed to being a Living Wage employer. All direct
employees of easyJet in the UK are already paid above the
'UK Living Wage', established by the Living Wage Foundation,
which is currently £7.85 per hour and is above the UK National
Minimum Wage. easyJet is working with the Living Wage
Foundation to discuss considerations for the airline sector, such
as variable pay for pilots and cabin crew, as well as the potential
to extend the Living Wage to employees of airline suppliers.

Employee benefits
All easyJet employees, with a minimum amount of service, have
the opportunity to become shareholders in the Company. At
30 September 2015 they held interests in 12.6 million shares
between them worth £224 million.

All employees can join easyJet's Save As You Earn scheme,
which allows employees to save money from their salary with
the option to purchase shares. All UK employees can take part
in the Buy As You Earn scheme, in which employees can buy
shares from their salary each month and easyJet buys matching
shares. The UK schemes are approved by Her Majesty's Revenue
& Customs. easyJet also awards Performance (Free) Shares
to employees.

easyJet employees may, subject to their holdings and the share
price performance, be able to realise gains in share value. For
example, 1.5 million Performance (Free) Shares vested during
the year and the Save As You Earn scheme, which matured
during 2015, had an exercise price of £4.18. The share price
at 30 September 2015 was £17.77.

easyJet also offers a small number of associated airline benefits
in line with the Company's cost-focused approach. These include
insurances and access to travel on easyJet services at cost price.

easyJet contributes towards a group personal pension plan in
the UK and, where negotiated, to pension arrangements for
employees in Germany and Portugal.

easyJet aims to provide flexible working arrangements, part-time
working and job sharing that fit its business model and the
personal circumstances of its people. As at 30 September 2015
there were 1,382 easyJet employees who worked part-time
(working fewer than 35 hours per week), making up over 13%
of the employee population.

easyJet plc Annual report and accounts 2015Equality and diversity
easyJet is an equal opportunities employer and the Company
always treats its employees and applicants fairly regardless of
their age, gender, sexuality, full or part-time status, disability
and marital status.

easyJet values diversity and inclusivity and believes this
contributes to the continued success of the Company, by
attracting and retaining a workforce which reflects the airline's
customer base and can engage with passengers as individuals.

easyJet employs people of 50 different nationalities. These people
are predominantly from countries in which easyJet operates,
which provides valuable insight about different markets.

As at 30 September 2015, the chart shows the 12 nationalities
where easyJet has more than 50 employees. There are a further
38 nationalities in the easyJet employee community which are
grouped together. easyJet employs people in some countries
where it is not legal to store employee nationality information,
so these employees are not included in this data. easyJet holds
records for 670 employees where their nationality is not recorded.

NUMBER OF EMPLOYEES BY NATIONALITY

14.

13.

12.

11.

10.
9.

1. British: 5,174
2. French: 1,181
3. Italian: 932
4. Spanish: 615
5. German: 298
6. Dutch: 277
7. Portuguese: 267

8. Swiss: 233
9. Polish: 130
10. Irish: 107
11. Belgian: 99
12. Danish: 67
13. Other nationalities: 338
14. Nationality data not held: 670

Gender equality
easyJet works hard to create an environment where women
have the opportunity to build careers in all communities and at
all management levels of the organisation, by ensuring there is
a pipeline of women coming up through the organisation.

The Company believes that a significant issue for women in
business is the lack of female executives at senior management
level. Currently too many women are leaving work and the business
community is losing a lot of talent before enough women get
to executive positions.

Middle managers will provide the pipeline for future senior managers
and increasing the number of women in this group is an important
part of our strategy to grow the number of women in our Senior
Management Team.

FEMALE REPRESENTATION

Board of Directors
8

Executive Management Team
6

Senior Management Team (including the Executive Management Team)
50

All easyJet employees
5,671

4,717

Male

Female

20%

45%

23%

45%

easyJet is a signatory to the “think, act, report” campaign which
promotes equal opportunities for women in the workplace. The
campaign provides a simple step-by-step framework to help
companies think about gender equality in their workforces,
particularly in relation to recruitment, retention, promotion and pay.

The Company has two female Directors on its Board: the Chief
Executive and the Chairs of the Audit and Finance Committees.
The Board continues to have a 20% female make-up.

As shown on page 50, 45% (5 of 11) of easyJet's Executive
Management Team are women, up from 4 of 11 in 2014.

• Senior Management Team – As at 30 September 2015, 15 people
out of 65 total were female (23%). This is a year-on-year increase
of one percentage point.

• Middle management – As at 30 September 2015, this group

was 33.3% female.

As at 30 September 2015, the overall easyJet workforce was
45% female. (2014: 46%).

Strategic reportGovernanceAccountswww.easyJet.comCorporate responsibility continued

WOMEN'S NETWORK

easyJet's Women's Network
started four years ago and this
year it has been re-launched
with a range of new activities.
The group has a mission to
empower and inspire women
across the airline. A large event
was held with the Chief
Executive and members of the
airline's Executive Management
Team. The group has also
heard from a range of external
speakers and female leaders
within the airline.

Gender pay
easyJet welcomes the UK's Government's commitment to
address the gender pay gap. The Company agrees that greater
transparency would encourage organisations to give more
consideration to gender pay and help to close the gender pay
gap. However, to be meaningful the pay gap comparisons need
to be made by type of role. Otherwise the statistics, which
should be a useful guide for companies and employees, risk
becoming distorted and losing their value.

Disability
easyJet treats applicants with disabilities equally and supports
current employees who become disabled. This includes offering
flexibility and making reasonable adjustments to the workplace
to ensure they can achieve their full potential. However, for
easyJet's two largest communities, pilots and cabin crew,
there are a range of regulatory requirements on health and
physical ability which all applicants and current employees
must comply with.

As an illustration, female pay as a percentage of male pay
at easyJet – irrespective of the type of role or any other
consideration – is 38.6%. This is based on full-time equivalent
basic salary of active UK employees. This is influenced by
the salaries and gender make up of easyJet's two largest
communities, its pilots and cabin crew. Pilots are predominantly
male and their salaries are higher than for cabin crew, the
majority of who are female.

However, easyJet salaries for equivalent roles are broadly equal
across the genders, reflecting the Company's commitment
to gender equality. Salaries for pilots and cabin crew are
collectively agreed, meaning for example that a female captain's
basic salary will be 100% that of a male captain and a female
cabin crew member's basic salary will be 100% that of a male
cabin crew member.

Within easyJet's management and administration community
female pay as a percentage of male pay is 97% when comparing
equivalent roles.

People reporting
easyJet is currently carrying out a project to improve its
employee data management system. The Company does not
hold sufficient data to report on other aspects of the diversity
of its workforce, such as ethnicity, sexuality, gender identity
or disability.

In the meantime, easyJet is working with its employees and their
representative groups to carry out voluntary surveys on diversity
to better understand the make-up of its workforce and how the
Company can further support its people, particularly those who
may be part of minority groups.

To assist this work, easyJet has recently begun working with
OUTStanding, an organisation which promotes equality and
inclusion for people of all sexualities in the workplace.

easyJet plc Annual report and accounts 2015EASYJET'S COMMITMENT ON HUMAN RIGHTS
easyJet has a responsibility to conduct business
in an ethical and transparent way. The Company
has in place policies to support recognised human
rights principles. These include policies on non-
discrimination, health and safety, anti-bribery
and environmental issues. The Company also
maintains a zero tolerance approach to bribery
and corruption.

easyJet seeks to comply with all relevant laws in the countries
in which it operates, and co-operates with the efforts of national
law enforcement agencies and border agencies to combat
human rights abuses and crimes such as human trafficking. It
adheres to a set of business principles including a commitment
to internationally proclaimed human rights standards.

These standards apply for the individuals working within the
organisation and its customers. The Company's policies seek
to respect and maintain the human rights standards defined in
the International Bill of Human Rights. The Company observes
the principles set out by the International Labour Organisation
Declaration on Fundamental Principles and Rights at Work (the
'ILO Declaration'). It accepts its corporate responsibility to respect
human rights, as set out in the United Nations Guiding Principles
on Business and Human Rights (the 'UN Guiding Principles').

Employees: easyJet conducts its employment practices in an
ethical and socially responsible manner. It respects the human
rights of its employees as established in the four principles of
the ILO Declaration:

• Freedom of association and the effective recognition of the

right to collective bargaining: easyJet recognises and respects
its employees' right to join associations and choose
representative organisations for the purpose of engaging in
collective bargaining in a manner consistent with applicable
laws, rules and regulations.

• Elimination of all forms of forced or compulsory labour:

easyJet does not utilise forced or compulsory labour. It recruits
its employees and provides working conditions, including
payment of wages and benefits, which comply with applicable
laws and regulations.

• Effective abolition of child labour: all easyJet employees
are above the legal employment age in the country of
their employment.

• Elimination of discrimination in respect of employment and

occupation: easyJet has committed human resources policies
including non-discrimination and health and safety policies.

Customers: easyJet is committed to making travel easy and
affordable for all of its customers. It upholds the equal treatment
of all passengers regardless of their personal characteristics or
social status. This commitment is supported by the advice of
stakeholders within easyJet and the continued involvement of
the easyJet Special Assistance Advisory Group (ESAAG) in policy
and product development.

Suppliers and third parties: easyJet will never knowingly infringe
the human rights of others. It seeks to prevent or mitigate any
adverse human rights impact directly linked to its business
relationships through obtaining appropriate contractual
commitments. It expects third parties who deal on its behalf

to observe the principles of the International Bill of Human
Rights, the ILO Declaration and the UN Guiding Principles.

Bribery and corruption
easyJet has a Company-wide anti-bribery and corruption policy
which is strictly enforced. There is also a gifts and hospitality policy
and online register to record all gifts and hospitality that are
accepted by employees.

It is compulsory for all management and administration employees
to complete anti-bribery and ethics training and pass an online
test. As at 30 September 2015 the test has been successfully
completed by 100% of all relevant employees and contractors.

FEMALE PILOTS

easyJet recognises that the proportion of its pilots who
are female is too low, though this is common in the airline
industry. The Company wants to encourage more women
to join and stay in this interesting, highly-skilled and well-
rewarded profession.

easyJet has recently established a new initiative to increase the
proportion of new entrant easyJet pilots who are female. This is
part of a new strategy to encourage the development of female
pilots at all ranks and positions and which will widen the pipeline
of women who enter easyJet's pilot community.

Currently 5% of the over 2,600 pilots employed by easyJet are
female and women make up 5% of easyJet's new entrant pilots.
The airline plans to more than double the proportion of female
new entrants to 12% over the next two years.

easyJet will highlight the opportunities of pilot careers to female
audiences such as school groups and other youth organisations,
through presentations by easyJet pilots and managers, building
on the work easyJet already does in mentoring young women.
easyJet will also work in partnership with organisations which
promote female take-up of STEM (science, technology,
engineering and maths) subjects.

easyJet will work with its pilot training providers to attract more
women to apply for the cadet programme and offer 10 places
for women each year on a pilot training programme with the
training loan of around £100,000 underwritten by easyJet.

In addition to the current mentoring for all pilots, easyJet will
introduce enhanced mentoring for female pilots. Female
captains will be given further development support so they can
take on leadership roles such as training and base management
roles. easyJet will also introduce training loan underwriting for
A320 type ratings for female pilots entering from other airlines.

Strategic reportGovernanceAccountswww.easyJet.comCorporate responsibility continued

CHARITY AND COMMUNITY
easyJet remains strongly committed to engaging
with the local communities in which it operates
and harnessing the fundraising powers of its
employees and significant customer base. The
airline's fundraising activities are directed through
its 'Change for Good' partnership with Unicef, the
world's leading organisation focusing on children
and their rights.

Unicef – Our pan-European charity partner
The 'Change for Good' partnership offers easyJet customers the
opportunity to support some of the world's most vulnerable
children by donating their spare change and leftover foreign
currency whilst on board. This year the partnership added a third
standard collection period in spring 2015, in addition to the existing
summer and winter periods.

Thanks to the generosity of its passengers and efforts of its crew,
easyJet's partnership with Unicef this year reached the significant
milestone of raising £5 million since it was established in 2012 and
the overall total has now exceeded £6 million. The funds have
primarily supported Unicef's vaccination work to keep children safe
from deadly diseases, with a recent focus on supporting the global
eradication of polio. The partnership has also supported Unicef's
urgent appeals for children in danger from emergencies.

To build on this success, easyJet and Unicef have agreed to
continue the partnership for a further three years, with the aim
of raising a further £5 million.

This decision was the subject of a structured review process which
also considered the option to move to another charity partner. The
decision was made to renew the Unicef partnership for a further
three years, reflecting the strong, successful existing partnership
and Unicef's international recognition across all easyJet markets.
The two organisations will work together to further increase the
fundraising for Unicef, the engagement of easyJet's employees,
and the profile of the charity partnership across Europe.

“ Our partnership with easyJet has already achieved
so much in the past three years, helping to
vaccinate 5.3 million mothers and babies against
deadly diseases, helping to keep 2 million children
safe from polio and now purchasing approximately
4 million doses of polio vaccines to protect even
more children. easyJet and their passengers have
also provided vital support for Unicef's emergency
work reaching children and families affected by
the crisis in Syria and the surrounding region,
Typhoon Haiyan in the Philippines, the Ebola crisis,
and the Nepal earthquakes earlier this year.

We're incredibly proud to have renewed our
partnership with easyJet for another three years,
and remain hugely grateful to easyJet and their
passengers who are together making a real and
tangible difference to the lives of millions of
children around the world.”

– David Bull, Unicef UK Executive Director

This year the partnership raised over £1.2 million through the
regular on-board collections and a further £1.2 million through
emergency appeals. The total funds raised through the
partnership, including corporate donations and other fundraising
activities, were £2.5 million this year.

In addition to fundraising for Unicef, easyJet has also helped to
raise awareness of the charity and its work for children. Examples
include an easyJet aircraft that has a special 'Change for Good'
Unicef livery, featuring Unicef in the inflight magazine 'Traveller',
and making announcements about Unicef's work on-board
flights during collection periods.

easyJet's Chief Executive, Carolyn McCall, is a member of the
Advisory Board for Unicef UK's Children in Danger campaign that
aims to raise funds and awareness for the millions of children in
danger from violence, war, disaster, disease and hunger.

easyJet people see Unicef's work
In March 2015 five easyJet people visited the Gambia to witness
first-hand how Unicef is helping to keep children safe from polio.

easyJet cabin crew member James Baron took part in the
trip and said:

“ This experience brought home to
me how important partnerships like
Unicef and easyJet's are. The funds
raised by easyJet crew continue to
help support efforts to eradicate polio
from the world by 2019. No mean
feat, but one that is within reaching
distance, if the funding continues.
easyJet and Unicef's Change for
Good partnership is crucial to enable
this to happen. I am proud to be a
part of the on-board crew working to
raise these funds; we must realise our
goal of global eradication of polio
and protect every child in danger.”

©Unicef/mcconnell/thegambia

James Baron,
easyJet cabin crew member

Emergency appeals with Unicef
This year easyJet and Unicef worked quickly and effectively
together to launch three special collections in response to
international emergencies. easyJet also made a corporate donation
to start each appeal, totalling £40,000 over the three appeals.

• Ebola, November/December 2014 – The two-week on-board
collection raised over £200,000, including aid match funding
for Unicef from the UK Government. This helped Unicef's
overall response which provided psychological care and
support for more than 52,000 children, supplied over 500,000
ebola protection suits, and distributed hygiene kits for almost
four million schoolchildren.

• Nepal earthquake, April/May 2015 – The four-week on-board
collection, established within 48 hours of the earthquake,
raised over £660,000. This helped Unicef's overall response
which supplied more than 650,000 people with clean, safe
water, delivered school supplies for over 200,000 children,
and provided psychological care for more than 85,000
children and parents.

easyJet plc Annual report and accounts 2015• Refugee and migrant crisis, September 2015 – The two-week

on-board collection raised over £395,000. This helped Unicef's
work with children affected by the crisis in Syria and
neighbouring countries. Donations will provide life-saving
supplies such as clean water and medicine, after an estimated
more than two million Syrian children have been forced to
abandon their homes.

Charity Committee
easyJet has a Charity Committee made up of airline employees
which provides support, funded by the Company, to charitable
activities by the Company's employees or to charities which are
important to staff. These tend to be smaller charities in the areas
where easyJet's employees live.

This year the Committee has made 138 awards of flight vouchers
or financial donations, each to the value of £250 or €300. These
donations, reflecting the priorities of easyJet's staff, have most
often been made to health charities, in particular cancer
charities, and organisations which support children.

Supporting local communities
easyJet wants to make a positive contribution in the communities
in which it operates. This is particularly important to the
Company's employees who also live in these areas.

easyJet already has strong links around its head office in Luton
and it is also identifying partner organisations which could help
easyJet to make a larger contribution in specific local areas,
starting with Connecting Enterprising Women in the Luton area.

The Luton community around easyJet's head office
easyJet's links are particularly strong in the Luton area, where
a large number of employees are based. The airline's first flight
20 years ago was from Luton Airport and easyJet continues
to proudly call Luton its home.

easyJet is a long-term supporter of Luton Town Football Club
and in the 2014/15 football season easyJet was the main shirt
sponsor of the team. The Company has since refocused its work
with Luton Town by providing funding for the team's children's
sport project, which also helps the club to access additional
match funding from the national football associations. The Luton
Town 'easyJet Free School Visit' project offers every primary
school in Luton and Bedfordshire a free physical education
session with the club. Additionally, with easyJet's support
the club has recently extended this to offer female coaching
sessions at every high school and further education college
in Bedfordshire.

easyJet has also continued to be a patron of Love Luton, an
organisation which seeks to promote and improve the town.

Connecting Enterprising Women
easyJet has established a new community partnership with
Connecting Enterprising Women, to support the Company's
work to promote and encourage opportunities for women.

The partnership, currently focused on Luton and the surrounding
area, matches female professionals with young women to
provide mentoring support and career guidance.

Initially 10 young women at four local schools have been
matched with easyJet female managers. They meet to
discuss education, personal development and careers.

THE GLOBAL WORK TO END POLIO

In 1988 polio was endemic in 125 countries but today it
remains in just two countries – Afghanistan and Pakistan.
easyJet is proud to be a part of the global fight to eradicate
polio forever. In September 2015 it was announced that polio
is no longer endemic in Nigeria. If global immunisation efforts
continue, Unicef believe there is a real chance that polio could
be eradicated by 2019.

Most recently, funds raised through the easyJet on-board
collections have been allocated to purchase approximately
four million doses of polio vaccines for a major polio campaign
in Afghanistan.

©Unicef/mcconnell/thegambia

AEROBILITY FLIGHT

Aerobility, which offers disabled people the opportunity to
fly small aircraft and participate in aviation activities, is a
charity which has resonance within easyJet's pilot community,
and they have supported the charity for a number of years.

This year easyJet operated a flight to view the Northern
Lights, to raise funds for the charity. The flight, which was
provided without charge by easyJet, featured on-board live
music and a commentary from entertainer Jon Culshaw,
scientist Dr Helen Czerski and Neil Parker, formerly of the
Royal Greenwich Observatory. All passengers on the flight
were able to view the Aurora Borealis and the flight raised
£18,500 to support Aerobility's work.

Strategic reportGovernanceAccountswww.easyJet.com• easyJet's pilots have implemented measures to save fuel whilst
still operating the aircraft safely and effectively, such as one
engine taxiing, delayed engine starts, continuous descent
approaches and minimum use of the auxiliary power unit
when on the ground.

• easyJet's cockpits became paperless in May 2014 and its entire
fleet is now fitted with Panasonic Toughpads which replaced
laptops and printed navigational charts. This has removed 27kg
of paper per aircraft per flight, equating to a reduction of over
1,900 tonnes of CO2 emissions for easyJet as a whole per year.

• The airline's enhanced maintenance programme washes the
engine's compressors routinely to ensure they operate as
efficiently as possible.

Although some of these measures reduce CO2 emissions per
flight by relatively small amounts, easyJet's large number of
flights per day means the total savings are significant.

easyJet was also among the first supporters of aviation's entry
into the European Union's Emission Trading System (ETS), an
important step to ensuring that aviation is helping to tackle climate
change. easyJet continues to support efforts to ensure that all
aviation is brought into a scheme to tackle emissions globally.

Investing in an efficient fleet
An important factor in easyJet's carbon emissions reduction
and fuel efficiency will be the introduction of the new generation
of Airbus short-haul aircraft. In 2013 easyJet confirmed an order
for 100 new generation Airbus A320neo aircraft for delivery from
2017 to 2022 and has taken purchase rights on a further 100
aircraft. These aircraft, equipped with CFM LEAP-1A engines
and wing 'Sharklets', will be 13% to 15% more fuel efficient
than existing aircraft types.

easyJet has also worked with Airbus on a new cabin design
for A320 family aircraft, which will add a further six seats, whilst
maintaining the current level of passenger comfort. The first new
aircraft with this cabin design is due to be delivered by Airbus in
May 2016 and the cabin layout is planned to be retrofitted to
existing A320 aircraft between autumn 2016 and spring 2018.
This will create the opportunity for easyJet to further increase
the number of passengers on each aircraft, contributing to
increased environmental efficiency.

To further reduce emissions in the longer term, significant progress
in the development of a new generation of aircraft will be
necessary. While there has been some progress in the short-haul
market, a further step change in efficiency is necessary. easyJet
will continue to press the manufacturers to deliver this and
supports the establishment of international minimum standards
to drive the development of new technology aircraft.

Corporate responsibility continued

ENVIRONMENT
easyJet continues to seek ways to reduce the
impact of its operations on the environment.
easyJet's largest cost and biggest impact on the
environment is its fuel and the associated carbon
emissions. This means that easyJet's continued
efforts to reduce its fuel usage and costs also
have the effect of reducing the airline's impact
on the environment.

Environmental concerns have an influence on
public policy towards aviation across Europe,
such as restrictions on airport expansion and
levels of passenger taxes. It is therefore also in
the Company's interest to ensure that both
easyJet and the wider industry properly
address environmental concerns.

Climate change
The whole airline industry will continue to rely on the use of
fossil fuels in the short and medium-term. Unlike some other
industries, aviation does not have a clear alternative to jet fuel in
the coming years. easyJet believes the industry must show that
it is making continual improvements in efficiency and optimising
the use of these fossil fuels, whilst also supporting the longer-
term technological change necessary to deliver more
sustainable flying.

Sustainable Aviation, a UK body made up of airlines, aviation
manufacturers, air traffic control providers and other
organisations in the sector, supports efforts to reduce carbon
emissions and has produced a carbon emissions roadmap.
This shows that UK aviation is able to accommodate significant
growth to 2050 without a substantial increase in absolute
carbon emissions through a number of measures to improve
aircraft fuel efficiency and international carbon trading.

easyJet plays an active role in the delivery of this carbon
emissions roadmap. easyJet's efficient business model means
that the airline has a continued focus on reducing emissions and
fuel burn for each aircraft. It has a young, efficient fleet which
features advanced technology and is flown efficiently.

easyJet's ongoing programme to reduce emissions and increase
fuel efficiency is overseen by the airline's Fuel Board, which leads
the airline's work to use fuel efficiently. The programme includes:

• The introduction of lightweight Recaro seats that make each
aircraft almost 600kg lighter, a 26% seat weight reduction.
These seats have been a standard feature of aircraft delivered
to easyJet since April 2013 and are now fitted in 37 aircraft.

• 'Sharklet' wing tips which make the aircraft more fuel efficient.
This technology delivers up to 4% savings in fuel consumption
and consequent reductions in CO2 emissions. These have been
standard on aircraft delivered to easyJet since August 2013
and have also been retrofitted to six existing aircraft, so are
now a feature of 38 easyJet aircraft.

easyJet plc Annual report and accounts 2015

CARBON EMISSIONS PER PASSENGER KILOMETRE (G)

81.05g

85.48

84.60

83.76

82.03

81.05

-1.2%
from 2014

2011

2012

2013

2014

2015

easyJet's CO2 emissions
easyJet's CO2 emissions this year were 6.1 million tonnes,
compared to 5.9 million tonnes for the 2014 financial year,
an increase of 3.4%.

The increase in overall emissions has been due to the continued
expansion of easyJet's operations, as this year easyJet's
passenger numbers increased by 6% compared to 2014.

easyJet's calculation of emissions is based on fuel burn
measurement, which is verified to comply with the European
Union's Emission Trading System requirements. CO2 equivalents
from emissions of other greenhouse gases are not included as
there are no conversion factors available for these emissions
from aircraft fuel burn.

easyJet's route network primarily overlaps with legacy airlines,
which tend to operate older and less efficient fleets. easyJet
aircraft on average carry more passengers than aircraft of many
other airlines operating on similar routes, which means carbon
emissions per passenger are lower. This transfer of passengers
from less efficient airlines means that easyJet is contributing to
the reduction of aviation carbon emissions.

To obtain a better understanding of how efficiently easyJet
carries its passengers the airline also monitors emissions per
passenger kilometre.

This year easyJet's carbon emissions per passenger kilometre,
the standard industry measure of efficiency, were 81.05 grams
per passenger kilometre, down from 82.03 grams per passenger
kilometre in financial year 2014.

In 2013, easyJet set targets for the reduction of its carbon
emissions per passenger kilometre of 2.5% by 2017 and 5% by
2022. easyJet has already exceeded the 2017 target, with per
passenger kilometre emissions already 3.2% lower in 2015 than
2013, and is on track to exceed the 2022 target.

As easyJet expects to exceed its current emissions reduction
target and plans to increase the number of passengers on each
aircraft, it has increased its target. easyJet's new target is to
reduce its carbon emissions per passenger kilometre by 8% by
2020 compared to 2013. easyJet's progress towards this new
target will be overseen by the airline's Fuel Board.

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Local air quality
Local air quality impact arises from nitrogen oxides (NOx)
emissions during aircraft take-offs and landings. easyJet's new
engines feature a tech insertion which reduces NOx emissions
by around 25%. These are in use in 67.8% of easyJet's aircraft.

Noise
easyJet wants to be a good neighbour in the communities around
the airports where it operates and the impact of aircraft noise on
residents is an important consideration. The airline complies with
local rules that govern noise at airports (such as curfews and
routings to avoid built-up areas). easyJet aircraft meet the tightest
international noise standards (ICAO Chapter 4). easyJet also works
locally with airports and air traffic control to put in place noise
mitigation activities that best fit each airport.

easyJet's work to improve the efficiency of flying has also
reduced the noise impact. For example, a change in the flap
settings used for landings has improved fuel efficiency and
reduced noise levels at landing. At London Gatwick, easyJet's
largest base, the airline is a leader in the use of Continuous
Descent Approaches in which aircraft descend more efficiently
and quietly.

This year the Company has worked to further reduce aircraft
noise in response to comments from local residents about the
A320 family aircraft of all airlines, particularly at London Gatwick.
All new aircraft delivered to easyJet since June 2014 are fitted
with 'vortex generators' to prevent a particular sound due to
airflow under the wing. From November 2015 easyJet will begin
an engineering programme to modify 197 existing aircraft with
vortex generators. It expects to complete the programme by
March 2018.

Waste management
easyJet seeks to recycle as much waste as possible. On board,
easyJet has a two-bag waste collection system which separates
recyclable material such as newspapers, plastic bottles and
metal cans from general waste. The airline does not have control
of the final management of on-board waste which is dependent
on the facilities at each airport where waste is collected by local
cleaning and ground handling contractors. easyJet also has
recycling in place in its offices and hangars around its network.

This year a working group has been established to look at how
easyJet can reduce waste across the airline's operations. This
is being led by Captain Stuart Green, an easyJet pilot based
in Luton who has completed an MBA with a focus on airline
sustainability. The working group is considering all aspects of
easyJet's operations and in particular on-board waste. This
includes working with easyJet's supply chain, including with
Airbus on potential on-board solutions and Gate Gourmet
to reduce waste arising from the sale of on board food and
beverages. The group is seeking improvements which will also
engage staff and customers in the process of waste reduction.

www.easyJet.com

Employee research suggests the Customer Charter is well
established amongst easyJet employees. 84% of over 4,000
people who took part in easyJet's employee engagement survey
agreed that they understood how they can deliver the promises
in the Customer Charter.

This year easyJet has focused on how the airline applies the
Customer Charter during times of disruption. In March easyJet
Customer Champions came together from across the airline for
the annual Customer Meeting, a forum for knowledge and idea
sharing. They created an internal set of guidelines defining how
easyJet employees should support customers during disruption
in the airline's airports. These behaviours have also since been
communicated to easyJet's ground crews across the airline's
network.

easyJet has also improved how it communicates with customers
when their travel plans have been disrupted. To ensure timely and
relevant information is sent to customers, a new team has been
established in the Operations Control Centre in Luton, solely
focusing on customer communications during disruption. This
team provides information to customers through text messages,
emails and live updates on easyJet's Flight Tracker tool.

Using digital technology to enhance the customer experience
easyJet uses digital technology to improve the customer
experience. This year it launched further innovations to help
make it easier to book, manage travel and fly with easyJet.

Its digital platform is a key point of differentiation. easyJet
believes it has significant advantages in the capability of its web
platform, Customer Relationship Management (CRM) data and
mobile offering. During the year easyJet had over 500 million
visits across all platforms, an 18% increase in the last two years,
and grew web conversion by 13% over the same period.

easyJet's CRM enables its customers to benefit from increasing
levels of personalisation across several channels, with examples
such as saved passport details, targeted marketing campaigns
via email and text message and bespoke offers from its affiliate
partners. The user experience has been further developed over
the year, with greater ease of interaction on the website and
mobile and optimised layouts and design. The customer help
web pages were also re-launched, as part of easyJet's strategy
to make it easier for customers to resolve simple queries and
encourage self-service.

ENHANCING THE CUSTOMER EXPERIENCE

Corporate responsibility continued

EASYJET'S CUSTOMERS
easyJet's cause is to make travel easy and
affordable. It wants to provide its customers with
a good and safe service, with an emphasis on a
friendly experience. easyJet wants to be open and
honest with its customers, to build lasting
relationships with them.

Customer Charter
easyJet's Customer Charter, co-created with over 300
employees including pilots, cabin crew and contact centre
employees, was published in 2013 and sets out what customers
should expect when they travel with easyJet:

• Safety first, we never compromise

• On your side, we see it from your point of view

• A big smile, friendly service is our passion

• Make it easy, at every step

• Open and upfront, we will always be straight with you

• Customer at the heart of easyJet

This year easyJet has continued to work to embed its Customer
Charter commitments across the Company.

FEARLESS FLYER

easyJet continues to run its Fearless Flyer programme to help
those who either have a fear or nervousness of flying, to
overcome them. The course consists of two parts; in the first
part an experienced easyJet captain deals with any
misconceptions that participants may have about flying. In
addition, phobia expert Lawrence Leyton teaches people
proven techniques to help overcome the anxieties and
concerns nervous flyers typically have. In the second part,
participants and travelling companions go on an 'experience
flight' operated by easyJet.

Since 2013 more than 2,500 people have completed the
course and flown on an experience flight.

easyJet plc Annual report and accounts 2015easyJet has put significant focus on the mobile offering over the
past two years, with an award-winning app that enables mobile
hosting through the airport, disruption notification live with the
ability to change flights, and saved personal data such as
payment details. Recently added features include a passport
scanning function to add passenger information and the use of
Apple's finger print 'Touch ID' technology to retrieve previously
submitted information. easyJet also created an Apple Watch app
to coincide with Apple's launch of the device, extending the
functionality of the easyJet app.

easyJet will be investing substantially in its digital platform over
the next three years, as it continues to innovate and maintain its
leadership position in the sector. easyJet is working to develop
the first fully-integrated e-commerce platform in the airline
industry.

easyJet has also continued to innovate in other areas across the
business. In June easyJet showcased new technology such as
engineering drones and prognostics software. easyJet is also
investing in research around Artificial Intelligence to exploit the
large amounts of data generated by our operations.

On-time performance
easyJet is focused on delivering solid operational performance.
This is reflected in all its operating procedures, without
compromising safety. easyJet recognises departing and arriving
on time is the main influence on customer satisfaction. It
therefore considers ways to improve how it delivers the best
performance and can meet its aim of being a leading airline for
performance and customer service. For example, easyJet's
customer experience improvement plan, Triple C – Customer,
Communication, and Consistency involves working with its
ground handling partners to improve the boarding process,
which is an important factor in achieving punctuality and
customer satisfaction.

This year on-time performance (arrivals within 15 minutes of the
scheduled time) was 80%, despite an operationally challenging
year which included many external events outside of easyJet's
control. The growth in demand for air travel has led to an
increase in airport and airspace congestion which has caused
delays. This has put pressure on easyJet's busy operation,
particularly at London Gatwick and in the Greek islands. A fire in
the Rome Fiumicino terminal in May 2015 also heavily affected
the operation, as well as other airlines' operation, due to
restrictions on capacity applied by the authorities. easyJet was
required to cancel over 1,000 flights and other flights had to be
temporarily transferred to Ciampino, Rome's secondary airport.
Overall, the weather was less disruptive than previous years, with
a relatively mild and calm winter and less volatile summer storms.
The operation was also adversely affected by air traffic control
strike action mainly in the French and Italian airspace, most
notably the French strike in April 2015 which led to over 600
flight cancellations over the two-day period.

Customer satisfaction
easyJet runs an extensive 'voice of the customer' programme,
based on customer satisfaction surveys (which customers are
invited to complete shortly after taking a flight) and the online
community of customers.

The customer satisfaction survey covers all aspects of the
customer journey from the booking experience through to
arrivals. easyJet received over 390,000 responses last year. The
online community has over 900 members: over 500 in the UK,
more than 150 each in France and Italy, and over 120 in
Switzerland. easyJet has gathered feedback from community
members on over 50 topics about many aspects of the
customer experience.

This year has seen periods of lower on-time performance,
including instances due to factors outside of easyJet's control,
such as industrial action by air traffic controllers. This has
resulted in a fall in customer satisfaction to 75% at the end
of September 2015.

easyJet has launched a new survey for customers whose flights
are disrupted by a long delay, a diversion or cancellation. It
wants to better understand how to improve the management
of these incidents and minimise the impact on the overall
customer experience.

ON-TIME PERFORMANCE (%)

80%

-5ppt
from 2014

2011

2012

2013

2014

2015

CUSTOMER SATISFACTION* (%)

75%

-3ppt
from 2014

2011

2012

2013

2014

2015

Results prior to 2014 have been recalibrated to be consistent with the
survey basis adopted in 2014.

Strategic reportGovernanceAccountswww.easyJet.comCorporate responsibility continued

AIRBUS

Airbus is one of easyJet's most
important suppliers and this is
reflected in the close and
transparent relationship maintained
during the assembly and delivery
of each aircraft. Using on-line tools,
Airbus is able to provide easyJet
with near real-time data for each
delivery which allows the airline to
ensure quality is maintained at each
stage of the build process. This
partnership has developed over
12 years of aircraft deliveries and
specific measurements have been
introduced providing easyJet with
full oversight at each stage. This
efficient interface allows the airline
to comment, question or challenge
within a short time scale, minimising
any impact on the overall delivery
process. easyJet took delivery of
its 250th Airbus family aircraft in
spring 2015.

EASYJET'S SUPPLIERS
easyJet's suppliers have an important role in
making travel easy and affordable for the airline's
customers. The Company seeks to have an open,
constructive and effective relationship with all
suppliers, to contribute to its success.

easyJet has established a supplier relationship management
framework, which gives guidance to easyJet managers who
lead relationships with suppliers. The management framework
is developed around easyJet's core values and is based on
the principle that suppliers are managed in the same way
that easyJet manages its people, and that suppliers' rights
and responsibilities are clearly set out.

When tendering for new suppliers, easyJet seeks information
from suppliers on factors including quality, health and safety,
environmental practices, sub-contracting arrangements and
tax compliance.

CLEANING SUPPLIERS

easyJet relies on its on-board cleaning suppliers to ensure
that each aircraft is well presented for passengers and ready
in time for its first flight of the day. To engage with these
suppliers easyJet has introduced a monthly cleaning
newsletter, showing customer satisfaction with cleanliness
and delays attributed to cleaning at each base, as well as
updates on current priorities.

easyJet plc Annual report and accounts 2015EASYJET SPECIAL ASSISTANCE ADVISORY GROUP

REPORT FROM THE CHAIR –
RT HON THE LORD BLUNKETT,
OF BRIGHTSIDE AND HILLSBOROUGH

The easyJet Special Assistance Advisory Group (ESAAG)
was established in 2012 to provide feedback and guidance
to easyJet on the services it provides to passengers who
require special assistance.

The group is made up of experts in disability issues and
accessible travel. We meet regularly with easyJet managers to
discuss the Company's forward proposals, best practice and
emerging issues. Crucially, oversight and regular reporting
back on the rolling programme of training at every level has
helped to support staff in doing a better job with greater job
satisfaction. The group takes a pan-European approach and
includes members from key easyJet markets: the UK, France,
Switzerland and, most recently, Italy. One of our meetings
was hosted in Paris by the French disability organisation
Association pour Adultes et Jeunes Handicapes.

easyJet carries more than 400,000 passengers who need
special assistance every year. This is a growing number and as
societies across Europe age it is very likely that more people
will need this assistance in the future. easyJet wants to be an
airline for everyone, including people with disabilities and
those with a variety of challenges requiring additional support.

Over the last year ESAAG has helped easyJet to introduce
on-board wheelchairs across its fleet. The group has also been
involved in changes to cabin layout, which includes a newly
designed accessible toilet. ESAAG has also had a role in wider
easyJet projects, such as the consolidation of easyJet
operations at London Gatwick into the North Terminal and
digital developments such as improved information and
advice, the ongoing reconfiguration of the easyJet website
and apps for use in navigating airports.

The customer satisfaction amongst easyJet passengers with
reduced mobility was 87.4% this year, which was higher than
for customers in general. We believe this reflects the focus
easyJet and ESAAG give to providing the right support to
passengers who need special assistance.

ESAAG is seeking to improve the whole journey for
passengers who need special assistance. Customers
understandably expect that when they book assistance
this will be done seamlessly between the airline, assistance
provider and the relevant airports.

ESAAG sees its task as facilitating a speedier and more
customer friendly experience for all passengers and the
improvement in reputation and therefore customer
satisfaction. But considerable emphasis is needed on
the different commercial elements, which make up that
experience and for which under European regulation the
airline, as far as the customer is concerned, is responsible.

This is why ESAAG has this year produced a pan-European
charter on meeting the needs of air travellers with disabilities.
The Charter recommends best practice for all aspects of
aviation special assistance. It was launched at the European
Parliament and has since been discussed at a UK aviation
industry session jointly hosted by ESAAG and the UK CAA.
ESAAG will continue to use the Charter to engage with
stakeholders across Europe.

I would like to thank the members of ESAAG for their work
and easyJet for continuing to engage with and support the
group. ESAAG is helping to deliver real improvements for
passengers and is driving competition within the industry
to improve the service offered to travellers.

We look forward to continuing this work.

Rt Hon The Lord Blunkett, of Brightside and Hillsborough
Chair of easyJet Special Assistance Advisory Group

ESAAG members
Rt Hon The Lord Blunkett, of Brightside and Hillsborough – Chair

Ann Bates OBE – Independent accessible transport adviser

Roberto Castiglioni – Member of the Access to Air Travel
Advisory Group UK CAA, Access to Air Travel Consultant,
and Editor-in-Chief Reduced Mobility Rights

Ann Frye – Member of CAA Consumer Panel; Director,
PassePartout Training Ltd; Visiting Professor, University
College London

Mervyn Kholer – Age UK

Stefano Medaglia – Accessible transport adviser and architect
based in Milan

Jean-Marie Munier – Former adviser at Association pour
Adultes et Jeunes Handicap

Marcus Rocca – Mobility International Schweiz

Strategic reportGovernanceAccountswww.easyJet.comChairman’s statement on corporate governance
Committed to maintaining high standards

DEAR SHAREHOLDER
At easyJet, we are committed to maintaining high standards
of corporate governance to enhance performance and for the
protection of our shareholders. I would like to highlight, in particular,
the following key areas of governance during 2015:

Strategy
As a Board, we need to be confident that our strategy remains
appropriate and that we are identifying appropriate strategic
priorities. This year the Board held meetings in March and
September at which we challenged and shaped the strategic
priorities brought by management.

Board and Committee composition
There were a number of changes to the Board during the year.

After five years at easyJet Chris Kennedy left on 1 September
2015 to become Chief Financial Officer at ARM Holdings.

After nine years of service, David Bennett retired from the Board
on 1 October 2014 and Professor Rigas Doganis retired from the
Board on 1 December 2014, although he continues to chair the
Safety Committee until 29 February 2016. John Browett has
announced his decision to step down from the Board on
31 December 2015 after almost nine years.

I would like to thank all of them on behalf of the Board
for their commitment and contribution.

I am delighted to welcome Andrew Findlay, who joined as
Chief Financial Officer on 2 October 2015 and Chris Browne who
will join the Board as a Non-Executive Director on 1 January 2016.

The membership of the Board’s Committees as at 30 September
2015 can be found on pages 47-49.

Board effectiveness
Each year, the Board undertakes a formal evaluation of its
effectiveness. This year we have had this process externally
facilitated by Independent Audit Limited. In addition, Charles
Gurassa, the Senior Independent Director, has also led a review
of my performance with input from the other Non-Executive
Directors. Further details of the evaluation process are provided
on page 61. Following this review, I am satisfied that the Board
and its Committees are performing effectively and that there is
the appropriate balance of skills, experience, independence and
knowledge of the Group to enable the Directors to discharge
their respective duties and responsibilities effectively. I am
also satisfied that the members of the Board, in particular the
Non-Executive Directors, have sufficient time to undertake their
roles at Board and Committee level with the Company, so as
to be able to discharge their responsibilities effectively.

Board Committees
The Board delegates certain of its responsibilities to the Board
Committees to enable it to carry out its functions effectively.
A diagram of the Board governance structure is set out on
page 52.

The Audit Committee, chaired by Adèle Anderson, led a
robust competitive tender process, leading to the Board’s
recommendation to reappoint PricewaterhouseCoopers LLP
as the Company’s auditors. The Board will recommend to
the shareholders at the 2016 Annual General Meeting the
reappointment of PricewaterhouseCoopers LLP as auditors for
the year ending 30 September 2016. Further details of the audit
tender process are provided in the Audit Committee report on
pages 54 to 57.

Structure of Corporate Governance Report
The Corporate Governance Report which follows is intended to
give shareholders an understanding of the Company’s corporate
governance arrangements and how they operated during the
year. The Corporate Governance Report includes reports from
each of the Committee Chairs to provide details on key matters
addressed by the Committees during the year.

We have also set out a separate section (on pages 60 to 62) to
provide a detailed description of how the Company has complied
with the principles of the UK Corporate Governance Code.

Compliance with the UK Corporate Governance Code
The Board considers that it and the Company have,
throughout the year, complied without exception with the
provisions of the UK Corporate Governance Code
(September 2014), which is the version of the Code which
applies to the Company for its 2015 financial year. The Code
is issued by the Financial Reporting Council and is available
for review on the Financial Reporting Council’s (FRC’s)
website: https://www.frc.org.uk

JOHN BARTON
Non-Executive Chairman

easyJet plc Annual report and accounts 2015
Board of Directors
An experienced and balanced board

1. JOHN BARTON,
Non-Executive Chairman

2. CHARLES GURASSA, Non-Executive Deputy
Chairman and Senior Independent Director

3. CAROLYN MCCALL OBE,
Chief Executive

4. ANDREW FINDLAY,
Chief Financial Officer

5. ADÈLE ANDERSON,
Independent Non-Executive Director

6. DR. ANDREAS BIERWIRTH,
Independent Non-Executive Director

7. JOHN BROWETT,
Independent Non-Executive Director

8. KEITH HAMILL OBE,
Independent Non-Executive Director

9. ANDY MARTIN,
Independent Non-Executive Director

10. FRANÇOIS RUBICHON,
Independent Non-Executive Director

Turn to the next page
for the full Director biographies

Strategic reportGovernanceAccountswww.easyJet.comBoard of Directors continued
What they bring to the table

1. John Barton
Non-Executive Chairman
First appointed: May 2013
Key areas of prior experience: Finance, Governance
Current external appointments:
Chairman, Next plc. Director of Matheson & Company Limited
and SSP Limited.

Previous relevant experience:
John has also served as Chairman of Catlin Group Limited
(2012-2015), Cable and Wireless Worldwide plc (2010-2012),
Brit Holdings plc (2007-2009) and Wellington Underwriting plc
(2003-2006).

John was previously Senior Independent Director of WH Smith
plc (2006-2011) and Hammerson plc (1998-2007). He was also
the Chief Executive of insurance broker JIB Group plc (1984-
1997). After JIB’s merger with Lloyd Thomson he became
Chairman of the combined group, Jardine Lloyd Thompson
Group plc (1997-2001).

2. Charles Gurassa
Non-Executive Deputy Chairman and
Senior Independent Director
First appointed: June 2011
Key areas of prior experience: Airline industry
Current external appointments:
Non-Executive Chairman, Genesis Housing Association Limited
and Netnames. Senior Independent Director, Merlin
Entertainments plc. Non-Executive Director, Genfinance II plc.
Trustee, English Heritage. Trustee, Migration Museum.

Previous relevant experience:
Charles’s career has been primarily in the travel, tourism and
leisure industries in a number of senior positions including
Chief Executive of Thomson Travel Group Plc (1999-2003),
Executive Chairman of TUI Northern Europe Limited (1999-2003)
and Director of Passenger and Cargo at British Airways plc
(1995-1999).

Charles retired from full time work in June 2003 to pursue a
portfolio career. He was previously Non-Executive Chairman of
LOVEFiLM International Limited (2006-2011), Phones4U Limited
(2007-2011), Virgin Mobile plc (2004-2006), Alamo/National Rent
a Car (2004-2006), 7Days Ltd (2003-2010) and Non-Executive
Director at Whitbread plc (2000-2009) and MACH (2007-2013).

3. Carolyn McCall OBE
Chief Executive
First appointed: July 2010
Key areas of prior experience: Media
Current external appointments:
Non-Executive Director, Burberry Group plc and member of the
Audit, Remuneration and Nominations Committees. Director of
French Chamber of Commerce.

Previous relevant experience:
Prior to joining easyJet, Carolyn was Chief Executive of Guardian
Media Group plc (2000-2010). She was also Non-Executive
Director of Lloyds TSB Limited (2008-2009), Tesco plc
(2005-2008) and New Look plc (1999-2005).

Carolyn was Chair of Opportunity Now (2005-2009) and former
President of Women in Advertising and Communications London
(WACL) (2002-2003).

4. Andrew Findlay*
Chief Financial Officer
First appointed: October 2015
Key areas of prior experience: Finance
Previous relevant experience:
Andrew was previously Chief Financial Officer at Halfords plc
(2011-2015). Prior to this, Andrew was Director of Finance, Tax
and Treasury at Marks and Spencer Group plc (2009-2011). He
has also held senior finance roles at the London Stock Exchange
and at Cable and Wireless both in the UK and US.

5. Adèle Anderson
Independent Non-Executive Director
First appointed: September 2011
Key areas of prior experience: Finance
Current external appointments:
Non-Executive Director, Intu Properties plc and Chair of Audit
Committee and member of Remuneration Committee. Chair
of Audit Committee, Save the Children International. Member
of Board of Trustees, Save the Children UK and Save the
Children International.

Previous relevant experience:
Until July 2011, Adèle was a partner in KPMG and held roles
including Chief Financial Officer of KPMG UK, Chief Executive
Officer of KPMG’s captive insurer and Chief Financial Officer of
KPMG Europe.

6. Dr. Andreas Bierwirth
Independent Non-Executive Director
First appointed: July 2014
Key areas of prior experience: Airline industry
Current external appointments:
Chief Executive Officer, T-Mobile Austria GmbH. Member of
the Board of Austrian Airlines AG, German-Austrian Chamber
of Commerce, Lindner Hotels AG, Austria Vienna, Austria’s
Association of Industry and Casinos Austria AG (on behalf of
the Austrian Government).

Previous relevant experience:
Andreas previously served as a Member of the Board at Austrian
Airlines AG (2008-2012), including as Chief Commercial Officer
for the whole period. He also served as Vice President Marketing
of Deutsche Lufthansa AG in Frankfurt (2006-2008). Prior to
this, Andreas was first Deputy Managing Director and later
Managing Director at Germanwings (2002-2006).

Prior to Andrew Findlay’s appointment in October 2015, Chris Kennedy
was Chief Financial Officer from July 2010 until September 2015.

easyJet plc Annual report and accounts 2015NNFRFAIS7. John Browett
Independent Non-Executive Director
First appointed: September 2007
Key areas of prior experience: Retail, Strategy
Current external appointments:
Chief Executive Designate, Dunelm Group plc and will become
Chief Executive Officer on 1 January 2016. Director, Octopus
Investments Limited.

9. Andy Martin
Independent Non-Executive Director
First appointed: September 2011
Key areas of prior experience: Finance, Airline industry
Current external appointments:
Group Chief Operating Officer-Europe, UK and Japan, Compass
Group plc. Director, Compass Group Holdings plc and Hospitality
Holdings Ltd.

Previous relevant experience:
John was previously Chief Executive Officer at Monsoon
Accessorize (2013-2015), Senior Vice President of Retail at
Apple Inc (2012) and Chief Executive Officer of Dixons Retail plc
(2007-2012). John has also held a number of Executive Director
positions at Tesco plc, including CEO of Tesco.com, Operations
Development Director and Group Strategy Director (1998-2007).
John was at the Boston Consulting Group Limited (1993-1998).

8. Keith Hamill OBE
Independent Non-Executive Director
First appointed: March 2009
Key areas of prior experience: Finance, Strategy
Current external appointments:
Chairman, Horsforth Holdings Limited and Aldrington
Investments Limited. Non-Executive Director, Samsonite
International SA.

Previous relevant experience:
Keith was Chairman of Travelodge (2003-2012) and Go, prior
to its acquisition by easyJet in 2002, (2001-2002). His other
previous Chairman roles include Tullett Prebon plc (2006-2013),
Collins Stewart plc (2000-2006), Avant Homes Limited (2013-
2014), Heath Lambert Limited (2005-2011) and Moss Bros Group
plc (2001-2008). His Non-Executive Director roles include Max
Property Group plc (2010-2014), Electrocomponents plc
(1999-2008) and Cadmus Communications Corporation
(2002-2007).

Keith was Finance Director of WH Smith (1996-2000), of Forte
plc (1993-1996) and of United Distillers (1991-1993), Director of
Financial Control at Guinness plc (1988-1991) and a Partner in
Price Waterhouse (1986-1988).

Previous relevant experience:
Prior to joining the Compass Group plc in 2004, Andy was Group
Finance Director at First Choice Holidays plc (now TUI Travel plc)
which had an airline as part of a wider tour operator business.
Andy has also held senior financial positions with Granada Group
plc (1996-2001), Forte plc (1994-1996) and Arthur Andersen (now
part of Deloitte) (1985-1994) including Partner (1992-1994).

10. François Rubichon
Independent Non-Executive Director
First appointed: July 2014
Key areas of prior experience: Airline industry
Current external appointments:
Executive Vice President of Human Resources, General Affairs
& Organization at Société Française du Radiotéléphone (SFR).

Previous relevant experience:
François was Deputy Chief Executive Officer and Chief Operating
Officer of Aéroports de Paris for seven years. Francois has
worked in a number of advisory positions within government
for the Minister of Transport, Infrastructure, Housing, Tourism
and Maritime Affairs (2002-2005) and as a social adviser to
the then French Prime Minister.

BOARD COMMITTEES

Safety Committee

Remuneration Committee

Audit Committee

Nominations Committee

Finance Committee

IT Governance and Oversight Committee

Strategic reportGovernanceAccountswww.easyJet.comSRARISIAFRANINFExecutive Management Team
An experienced team to deliver

1. ALITA BENSON,
Group People Director

2. WARWICK BRADY,
Chief Operating Officer

3. CHRIS BROCKLESBY,
Chief Information Officer

4. MIKE CAMPBELL,
Group Director, Transformation

5. PETER DUFFY, Group Commercial Director:
Customer Product and Marketing

6. ANDREW FINDLAY,
Chief Financial Officer

7. RACHEL KENTLETON,
Group Director: Strategy and Implementation

8. CATH LYNN, Group Commercial Director:
Markets, Network and Pricing

9. CAROLYN MCCALL OBE,
Chief Executive

10. PAUL MOORE,
Communications Director

11. KYLA MULLINS, General Counsel and Director
of Regulation & Corporate Governance

easyJet plc Annual report and accounts 20151. Alita Benson
Group People Director
First appointed: June 2011
Key areas of prior experience: Human Resources
Previous relevant experience: Prior to joining easyJet, Alita was
Head of HR Business Partners at T-Mobile for nine years and led
the T-Mobile UK HR input for the merger with Orange (2001-2011).

2. Warwick Brady MBA
Chief Operating Officer
First appointed: May 2009
Key areas of prior experience: Low Cost Airline experience in
Europe, India & Asia, Private Equity experience manufacturing,
retailing, ecommerce

Current external appointments: Non-Executive Director, FirstGroup plc
Previous relevant experience: Warwick joined easyJet in 2009 on
the management board as Director of Procurement responsible
for Fleet, Regulation, Central and Airport Procurement before
becoming Group Operations Director in October 2010.

Prior to easyJet Warwick was CEO at Mandala Airlines (2007-
2009), Chief Operating Officer of Air Deccan (2005-2007),
Deputy Director Operations at Ryanair (2002-2005) where he
held various executive roles including Deputy Chief Executive
Officer of Buzz following its acquisition from KLM.

3. Chris Brocklesby
Chief Information Officer
First appointed: March 2015
Key areas of prior experience: IT
Previous relevant experience: Before joining easyJet, Chris
was CIO at Tesco Bank and was a member of the Executive
Committee with responsibility for IT, Change Management,
Supplier Management and Procurement (2007-2015).

Chris also spent 18 years at Accenture in their Financial Services
and Technology practices. He became a partner in 2000 and led
the UK FS Systems Integration practice as well as leading work at
clients such as AXA Life, Zurich Financial Services, Standard Life
and Prudential.

4. Mike Campbell
Group Director, Transformation
First appointed: October 2005
Key areas of prior experience: Human Resources,
Technology, Transformation

Previous relevant experience: Mike has previously held other
senior positions at easyJet including Europe Director and People
Director. Before joining easyJet, Mike worked at Wedgwood in
a broad role as Director of People and Brands and Managing
Director for Canada, Australia and Pan-Asia (2000-2005).
Prior to that, Mike worked for 14 years at Fujitsu in a variety of
development and personnel roles across Europe, Asia, Africa
and the Middle East, ending up as Chief Personnel Officer.

5. Peter Duffy
Group Commercial Director: Customer Product and Marketing
First appointed: February 2011
Key areas of prior experience: Marketing
Previous relevant experience: Before joining easyJet, he was
Marketing Director for Audi in the UK (2007-2011). Prior to that,
Peter was Marketing Services Director at Barclays (2005-2007).

6. Andrew Findlay*
Chief Financial Officer
See Board of Directors’ profiles.

7. Rachel Kentleton
Group Director: Strategy and Implementation
First appointed: February 2014
Key areas of prior experience: Finance, Investor Relations,
Strategy, Programme Management.

Current external appointments:
Non-Executive Director, Persimmon plc and member of the
Audit and Risk Committees.

Previous relevant experience: Rachel is a qualified accountant
and prior to joining easyJet in 2007, she worked in a number
of finance roles at Unilever (1991-1997), NatWest (1997-2000),
Diageo (2000-2006) and SABMiller (2006-2007).

8. Cath Lynn
Group Commercial Director: Markets, Network and Pricing
First appointed: September 2009
Key areas of prior experience: Commercial, Operations, Procurement
Previous relevant experience: Cath joined easyJet in 2002
following the merger of Go and has carried out a number of senior
roles at easyJet including Head of Ground Operations, Head of
Airport Development and Procurement, Head of Network
Development, Network and Planning Director, Customer and
Revenue Director and Group Commercial Director. Prior to easyJet
Cath spent 12 years in retail for J Sainsbury before joining Go
(1998-2002) where she was part of the management buy-out
team and headed up cabin services, ground operations and
customer service.

9. Carolyn McCall
Chief Executive
See Board of Directors’ profiles.

10. Paul Moore
Communications Director
First appointed: November 2010
Key areas of prior experience: Communications
Previous relevant experience: Before joining easyJet, Paul was
Group Public Affairs and Communications Director for FirstGroup
(2006-2010). Prior to that Paul worked for Virgin Atlantic Airways
for ten years as its Director of Corporate Affairs (1997-2006).

11. Kyla Mullins
General Counsel and Director of
Regulation & Corporate Governance
First appointed: February 2015
Key areas of prior experience: Legal, Company Secretarial, Regulation
Previous relevant experience: Kyla is a qualified solicitor, having
spent four years with Clifford Chance (1989-1993) before moving
in-house. Over the past 20 years she has held senior legal
positions in the media, entertainment and strategic outsourcing
sectors. Before joining easyJet Kyla was General Counsel and
Company Secretary at Mitie Group plc (2014-2015), Global
General Counsel of EMI Music (2009-2012), and Group Legal
Director at ITV Plc and Granada Media (2000-2007).

Prior to Andrew Findlay’s appointment in October 2015, Chris Kennedy
was Chief Financial Officer from July 2010 until September 2015.

Strategic reportGovernanceAccountswww.easyJet.comCorporate governance report
Board committees

Board committees
The Committee reports that follow set out, amongst other
things, the responsibilities and activities of the Committees
in the past financial year. The terms of reference of each
Committee are documented and agreed by the Board.
The Committees’ terms of reference are available in the
governance section of easyJet’s corporate website:
http://corporate.easyJet.com

The Chair of each Board Committee formally reports
back to the Board.

Details of Directors’ attendance at Board and Board
Committee meetings is set out on page 60.

SAFETY COMMITTEE

Safety Committee
Chair: Professor Rigas Doganis

See pages
52 to 53

PROFESSOR RIGAS DOGANIS,
CHAIR OF THE SAFETY COMMITTEE

Remuneration Committee
Chair: Charles Gurassa

See pages
53 and 64 to 80

The Safety Committee is now in its third year and continues
to make a difference to the effective safety oversight of
the Board.

Audit Committee
Chair: Adèle Anderson

Nominations Committee
Chair: John Barton

Finance Committee
Chair: Adèle Anderson

See pages
54 to 57

See page
58

See page
59

IT Governance and Oversight Committee
Chair: John Browett

See page
59

Membership as at 30 September 2015
(two independent Non-Executive Directors, one independent
chairman)

Members of the committee
• Professor Rigas Doganis (Chair)

• Keith Hamill

• Dr Andreas Bierwirth

Turn to page 60 for meeting attendance table

Key responsibilities
To monitor and follow up on safety incidents reported to the
Board to ensure that they have been satisfactorily closed
either by the Company and/or the relevant external parties.

To receive, examine and monitor reports on actions taken
by departments.

To review and monitor the implementation of the Company’s
annual safety plan.

The Committee also examines specific safety issues as
requested by the Board or any member of the committee.
Where appropriate, the Committee reviews relevant reports
published by the UK Air Accident Investigation Branch, major
incidents that have affected other operators, such as the
incidents suffered by Air Asia and Germanwings in the last year,
as well as other external reports on matters relevant to safety
and security.

easyJet plc Annual report and accounts 2015Independent safety reports from the Director of Safety and
Security are presented at every Board meeting. The Committee
ensures that both internal and relevant external events are fully
investigated and that appropriate actions have been taken
where necessary.

The Director of Safety and Security has a direct reporting line
to the Chairman which reinforces the independence of safety
oversight. In addition, the Chairman of the Committee has
reported to the Board with his own assessment of safety
management within the airline.

Further information on the Safety Management System is
provided on page 31.

Highlights of the 2015 financial year
A range of safety-related matters have been reviewed by the
Committee during the 2015 financial year involving all areas –
flight operations, cabin crew, ground services and engineering.
Some of these reviews followed requests from the Board to
carry out detailed assessment of specific operational incidents;
others were reports of safety actions taken by easyJet
operational departments. These included a review of the
processes, identification and use of pattern recognition for
safety purposes, and also a review of the cyber security threats
to easyJet’s operations and the mitigations in place to counter
such threats.

Changes to the Committee
Although Professor Rigas Doganis stepped down from the
Board of easyJet as a Non-Executive Director on 1 December
2014, he remains as Chairman of the Safety Committee until
29 February 2016.

As reported in last year’s annual report, in October 2014 the
Committee’s former Independent Safety Expert, Geoff Want,
joined easyJet as the Director of Safety and Security. With
considerable and wide-spread previous experience in aviation
safety, he has made an invaluable contribution in ensuring
that the Company maintains the highest safety standards
and procedures.

The safety team has been further strengthened by the
appointment of a specialist in human factors.

REMUNERATION COMMITTEE

CHARLES GURASSA,
CHAIR OF THE REMUNERATION COMMITTEE

The Remuneration Committee’s focus was firstly on putting
forward a revised Long Term Incentive Plan in its remuneration
policy for shareholder approval at the 2015 Annual General
Meeting. The remuneration policy has been designed to be
straightforward and transparent, in alignment with the
Company’s principle of having a simple and cost-effective
approach. The second area of focus was recommending a
package for the incoming Chief Financial Officer which aligned
with our policy.

Membership as at 30 September 2015
(all members are independent Non-Executive Directors)

Members of the committee
• Charles Gurassa (Chair)

• John Browett

• François Rubichon

Turn to page 60 for meeting attendance table

Key responsibilities
To assess and make recommendations to the Board on the
policies for remuneration for each of the Executive Directors and
the Chairman, as well as the level and structure of remuneration
for senior management.

Highlights of the 2015 financial year
• The Committee reviewed and put forward a revised Long Term
Incentive Plan which was approved at the Company’s 2015
Annual General Meeting as part of the remuneration policy.

• The Committee reviewed and put forward proposals for

the package for the new Chief Financial Officer.

The detailed Directors’ remuneration report is on pages 64 to 80.

Additional disclosures under the UK Corporate Governance Code
Hewitt New Bridge Street (HNBS) (an AON Company) has
been appointed by the Committee as easyJet’s remuneration
consultants. HNBS is a member of the Remuneration Consultants
Group and complies with its code of conduct. HNBS has no other
connection with the Company. However, a sister company in the
AON Group provides pension and flexible benefits administration
services to the Company.

Strategic reportGovernanceAccountswww.easyJet.comCorporate governance report continued

AUDIT COMMITTEE

ADÈLE ANDERSON,
CHAIR OF THE AUDIT COMMITTEE

During the year, the Audit Committee has continued to
devote significant time to reviewing the Group’s system
of risk management, internal controls, the integrity of the
Group’s financial reporting and the effectiveness of both
internal and external audit. In addition, the Committee has
led a competitive tender for external audit services which
followed best practice guidance, resulting in the
recommendation to reappoint PricewaterhouseCoopers LLP
as the Group auditors.

The Committee welcomes the changes to the revised UK
Corporate Governance Code, and the FRC’s Guidance on
Risk Management, Internal Control and Related Financial
and Business Reporting, published in September 2014.
These changes apply to the Group for the first time this
year and have been areas of focus for the committee.

Membership as at 30 September 2015
(all independent Non-Executive Directors)

Members of the committee
• Adèle Anderson (Chair)

• Keith Hamill

• Andy Martin

The Committee members have been selected to provide the
wide range of financial and commercial expertise necessary
to fulfil the Committee’s duties and responsibilities. Adèle
Anderson was a partner in KPMG until July 2011 and held roles
including Chief Financial Officer of KPMG UK, Chief Executive
Officer of KPMG’s captive insurer and Chief Financial Officer
of KPMG Europe. She currently chairs the audit committees
of Intu Properties Plc and Save the Children International.
Keith Hamill has had considerable experience as a director
of listed companies and was Finance Director of WH Smith,
Forte plc and United Distillers. Andy Martin was Group
Finance Director of Compass Group plc between 2004 and
2012, and prior to this held other senior financial positions
with First Choice Holidays plc (now TUI Group), Forte plc
and Granada Group plc. The Board considers the Committee
members’ financial experience to be recent and relevant for
the purposes of the Code.

Turn to page 60 for meeting attendance table

easyJet plc Annual report and accounts 2015Main activities and responsibilities of the Committee:
Please refer to the Audit Committee terms of reference for further details on the Committee’s duties and responsibilities, available
in the governance section of easyJet’s corporate website, http://corporate.easyJet.com.

Responsibilities

How the Committee has discharged its responsibilities

To monitor and review:
the integrity of the financial statements and related
formal announcements, and the significant financial
reporting issues and judgements which they contain

Review of the financial statements and announcements relating to the financial
performance and governance of the Group at year end and half year.

The Committee also considered the material areas in which significant
judgements have been applied based on reports from both the Group’s
management and the external auditors. Further information is provided
in the Financial reporting and significant financial issues section.

the Company’s risk management systems and
internal control

Review of the adequacy and effectiveness of the Group’s ongoing risk
management systems and control processes, through an evaluation of:

• the risk and assurance plans;

• Internal Audit reports;

• risk assessments;

• information security and business continuity;

• control themes; and

• internal financial control assessments.

the effectiveness of the Company’s Internal Audit
function and its activities

The Committee undertook an assessment of the effectiveness and
independence of the Internal Audit function, which included consideration of:

• key Internal Audit reports;

• stakeholder feedback on the quality of Internal Audit activity;

• Internal Audit’s compliance with prevailing professional standards; and

• closure of Internal Audit recommendations.

Further information is provided in the Internal Audit section.

the Company’s relationship with the external auditors,
including:

The Committee considered the appointment of the external auditors,
confirming and assessing their independence, objectivity and effectiveness.

• their independence and objectivity;

More information on:

• the effectiveness of the external audit process;

• how the effectiveness, independence and objectivity of the external audit

• recommending the appointment, reappointment

or removal of the external auditors;

• approving their remuneration and terms of

engagement; and

• the policy on the supply of non-audit services.

the adequacy and security of the Group’s
arrangements for its employees and contractors to
raise concerns, in confidence, about possible
wrongdoing in financial reporting or other matters

the Group’s systems and controls for the prevention
of bribery and detection of fraud, including receiving
reports on non-compliance

process were assessed, is provided in the External auditors and
effectiveness of external audit process section; and

• the external auditors’ non-audit services, and audit tendering, is provided
in the Non-audit services and the Audit tendering sections respectively.

During the year, the Committee reviewed:

• whistleblower reports;

• reports on anti-bribery and corruption procedures;

• reports on procedures on fraud and loss prevention; and

• reports on credit card fraud monitoring and investigations.

Other duties of the Audit Committee include:
• annually reviewing their terms of reference;

The Committee reviewed its terms of reference and concluded that
they did not require updating.

• assessing potential conflicts of interest of Directors

There were no potential conflicts to be considered during the year.

on behalf of the Board; and

• as requested by the Board, providing advice on
whether the annual report and accounts are fair,
balanced and understandable.

Further information on the Committee’s role on providing advice on whether
the annual report and accounts is fair, balanced and understandable is
provided in the Financial reporting and significant financial issues section.

Strategic reportGovernanceAccountswww.easyJet.comCorporate governance report continued

Specific items which the Committee looked at during the financial
year as part of and in addition to its main activities included:

• the treasury function and accounting treatment of

hedging transactions;

• the accounting treatment for property, plant and equipment;

• the accounting treatment of share-based payments;

• the management of change initiatives in the business;

• information security capabilities, policies and procedures,

including mitigations around cyber attacks and incidents; and

• the preparation for making a viability statement.

Financial reporting and significant financial judgements
The Committee assesses whether suitable accounting policies
have been adopted and whether management has made
appropriate estimates and judgements. For example, during the
financial year, the Committee reviews the level of provisions and
accruals recorded which are judgemental in nature. The
Committee reviews accounting papers prepared by management
which provide details on significant financial reporting judgements.
The Committee also reviews reports by the external auditors on
the full year and half year results which highlight any issues with
respect to the work undertaken on the audit.

The Committee reviews financial issues through discussion with
management and the external auditors and comparison to other
organisations. The number of such issues currently considered as
significant are, however, limited given easyJet’s relatively simple
business model and group structure which are unencumbered
with legacy issues. The significant issues considered in relation
to the accounts are detailed below:

• The Committee reviewed the maintenance provision at the

year end. A number of judgements are used in the calculation
of the provision, primarily pricing, utilisation of aircraft and
timing of maintenance checks. The Committee addressed
these matters using reports received from management
which underpin the basis of assumptions used. The Committee
also discussed with the external auditors their review of the
assumptions underlying the estimates used.

• The Committee considered whether the carrying value
of goodwill and landing rights held by easyJet should be
impaired. The judgement in relation to impairment largely
relates to the assumptions underlying the calculation of the
value in use of the business being tested for impairment;
primarily whether the strategic plan is achievable and the
overall macroeconomic assumptions which underlie the
valuation process. The Committee addressed these matters
using reports received from management outlining the basis
for assumptions used. The strategic plan used in the
calculation was presented to the Board.

• The Committee considered the key treasury transactions, and
the application of hedge accounting. easyJet hedges forward,
on a rolling basis, between 65% and 85% of the next 12
months anticipated fuel and currency requirements and
between 45% and 65% of the next 12 months’ anticipated
requirements. Significant exposure relating to the acquisition
cost of aircraft is also managed through the use of foreign
currency forward exchange contracts where 90% of the next
two years forecast requirement is hedged. easyJet does not
operate any other significant derivative financial instruments.
However, this area remains significant due to the quantity of
fuel and exchange rate hedges.

• The Committee reviewed the level and calculations of key
accruals and provisions which are judgemental in nature.
Specifically the area of customer claims in respect of flight
delays, cancellations and Air Passenger Duty.

The Committee is satisfied that the judgements made by
management are reasonable, and that appropriate disclosures
have been included in the accounts.

At the request of the Board, the Committee also considered
whether the Annual report and accounts was fair, balanced
and understandable and whether it provided the necessary
information for shareholders to assess the Group’s position and
performance, business model and strategy. The Committee is
satisfied that, taken as a whole, the Annual report and accounts
is fair, balanced and understandable. In reaching this conclusion,
the Committee considered the overall review and confirmation
process around the Annual report and accounts, including:

• the input of subject matter experts, the Executive

Management Team and other senior management and,
where applicable, the Board and its Committees;

• the processes and controls which underpin the overall review
and confirmation process, including the verification process
being carried out by an internal financial controls specialist
(independent of the Finance function);

• Internal Audit providing assurance over the audit trail for

material data points relating to the non-financial statement
aspects of the Annual report and accounts, and external
audit providing assurance over the accounts; and

• the Committee itself, as part of a continuous improvement
process, emphasising to contributors the importance of
providing a balanced view, especially in relation to the more
subjective areas.

The Committee was provided with, and commented on, a draft
copy of the Annual report and accounts.

In carrying out the above processes, key considerations included
ensuring that there was consistency between the accounts and
the narrative provided in the front half of the annual report, and
there was an appropriate balance between the reporting of
weaknesses, difficulties and challenges, as well as successes,
in an open and honest manner.

Risk management and internal control
The Board, as a whole, including the Audit Committee members,
consider the nature and extent of easyJet’s risk management
framework and the risk profile that is acceptable in order
to achieve the Company’s strategic objectives. The Audit
Committee has reviewed the work done by management,
the Committee itself and the Board on the assessment of the
Company’s principal risks, including their impact on the prospects
of the Company. As a result, it is considered that the Board
has fulfilled its obligations under the Code in relation to risk
management and internal controls. Further details on the
Company’s principal risks and uncertainties and their impact
on the prospects of the Company are set out on page 24-29.

easyJet’s system of internal controls, along with its design
and operating effectiveness is subject to review by the Audit
Committee, through reports received from management, along
with those from both internal and external auditors. Any controls
deficiencies identified are followed up with action plans tracked
by the Committee. Further details of risk management and
internal control are set out on page 63.

easyJet plc Annual report and accounts 2015Audit tendering
PricewaterhouseCoopers LLP were first appointed to audit
the Annual report and accounts for the year ended 30
September 2006, and have therefore served a ten year term.
Under EU audit reform legislation, companies are required to
have a mandatory rotation of auditors after ten years, or
20 years if there is a compulsory retender at ten years.

During the early summer of 2015, the Committee led a tender
process for external audit services for the year ending 30
September 2016.

Management met with the top 10 UK audit firms by fee income,
which were then assessed by a common set of criteria.
Following this assessment, a number of firms were ruled out
due to irresolvable conflicts of interests/independence issues or
a lack of demonstrable appetite to become the external auditor
to a company of our size and scale. As part of this process a
number of firms met with the Audit Committee Chair and the
outgoing Chief Financial Officer.

Our largest investors were invited to discuss our approach
to the audit tender and three of these investors took up
the invitation and contributed to our considerations.

In May the Audit Committee reviewed the investor feedback
and the feedback from the meetings with the firms. It was
concluded that two firms should be invited to tender on
the basis that:

• both firms had extensive experience in delivering quality

audit services;

• both firms demonstrated having the high calibre resources

needed to deliver quality audit services;

• each firm demonstrated a willingness to participate in

the audit tender and to deliver the audit services;

• both firms had significant experience in auditing FTSE 100
organisations and/or organisations of comparable size
and complexity to easyJet; and

• neither easyJet nor the firm were aware of any apparent

conflicts of interest or independence issues.

Once the Request For Proposal had been issued to both
firms, each was invited to put forward potential lead audit
partners at a meeting with the Audit Committee Chair.

Following feedback by the Company on the preferred lead
audit partners, each firm was invited to attend “working
with easyJet” meetings to ensure they fully understood our
external audit requirements and to give an opportunity to
assess the cultural fit. The lead audit partner and senior team
members from each firm also met with the incoming CFO,
Andrew Findlay.

Each firm submitted a formal audit proposal document which
was reviewed by management and the Audit Committee. On
6 July each firm presented at meetings with easyJet
management. At this meeting each firm was given a technical
question which they had to consider and include in their final
presentation to the Audit Committee on 20 July. As part of
this process, the Audit committee met with each firm without
management present.

The Audit Committee met on 22 July and concluded that
both firms were capable of providing the services required
by the Company and could be put forward to the Board.
The Audit Committee agreed to recommend that the Board
reappoint PricewaterhouseCoopers LLP as, on balance,
they performed better against the committees pre-agreed
selection and assessment criteria.

Internal Audit
The Audit Committee is responsible for overseeing the work of
the Internal Audit function. It reviews and approves the scope of
the Internal Audit annual plan and assesses the quality of Internal
Audit reports, along with management’s actions relating to
findings and the closure of recommended actions. The Audit
Committee also considers stakeholder feedback on the quality
of Internal Audit’s work. Further information on the Internal Audit
function is provided on page 63. In order to safeguard the
independence of the Internal Audit functions, the Head of
Internal Audit is given the opportunity to meet privately with
the Audit Committee without any other members of
management present.

External auditors and effectiveness of external audit process
PricewaterhouseCoopers LLP were reappointed auditors of
the Company at the 2015 Annual General Meeting. Senior
management monitors the auditors’ performance, behaviour and
effectiveness during the exercise of their duties, which informs
the Audit Committee’s decision to recommend reappointment
on an annual basis.

The Audit Committee also assesses the effectiveness,
independence and objectivity of the external auditors by,
amongst other things:

• considering all key external auditor plans and reports;

• having regular engagement with the external auditor during
Committee meetings and ad hoc meetings (when required),
including meetings without any member of management
being present;

• the Committee Chair having discussions with the Senior

Statutory Auditor ahead of each Committee meeting; and

• following the end of the financial year, each Committee
member completing an auditor effectiveness review
questionnaire.

Non-audit services
In the 2015 financial year, easyJet did not incur any costs with
PricewaterhouseCoopers LLP in respect of non-audit services
(2014: £nil). In order to preserve objectivity and independence,
the external auditors are not asked to provide consulting services
unless this is in the best interests of the Company, in accordance
with easyJet’s non-audit services policy which is available in the
governance section of easyJet’s corporate website,
http://corporate.easyJet.com.

Strategic reportGovernanceAccountswww.easyJet.comCorporate governance report continued

NOMINATIONS COMMITTEE

JOHN BARTON,
CHAIR OF THE NOMINATIONS COMMITTEE

During the year the Committee undertook a search for a new
Chief Financial Officer, reviewing the make-up of the Board
Committees given the new Board make up at the beginning
of the year, ensuring that the newly appointed NEDs were
embedded in the Board and continuing to review succession
plans within the Board and the Executive Management Team.

Membership as at 30 September 2015
(members are independent Non-Executive Directors
and the Non-Executive Chairman of the Board)

Members of the committee
• John Barton (appointed Chair effective from 1 December 2014)

• Charles Gurassa

• François Rubichon

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Key responsibilities
• Keeping under review the composition, structure and size of,

and succession to, the Board and its Committees.

• Succession planning for senior executives and the Board.

• Identifying and nominating, for the approval of the Board,
candidates to fill Board vacancies as and when they arise.

• Evaluation of the balance of skills, knowledge, experience

and diversity on the Board.

Highlights of the 2015 financial year
• Overseeing the selection process and appointment of the

new Chief Financial Officer and a new Non-Executive Director.

• Consideration of the appointments to the Board Committees

following the change in Board composition.

• Reviewing management’s succession plans for senior

executive positions.

Board appointments process
The Committee adopts a formal and transparent procedure
for the appointment of new Directors to the Board.

The Board’s practice is to use external recruitment consultants
for appointing Directors and as such, terms were negotiated with
JCA Group Limited (JCA) to act as easyJet’s search consultants
for the appointment of a new Chief Financial Officer. Other than
providing search consultancy services, JCA has no connection
with the Company. JCA was provided with a brief of the desired
candidate profile based on merit and against objective criteria,
and their services were used to conduct a search to identify
suitable candidates. A list of potential candidates was assessed
against these criteria and a number were interviewed by
members of the Board and Executive Management Team.
Andrew Findlay was appointed as Chief Financial Officer,
effective 2 October 2015.

While the Board’s practice is to use external search consultants
for appointing Directors, there are occasions where an individual
with particular relevant qualifications is identified as a potential
candidate to join the Board as a Non-Executive Director. This
was the case with Chris Browne and therefore no external search
consultancy or open advertising was used. Once the committee
became aware of her availability, it reviewed her experience and
skills and she was interviewed by members of the Board. She
was appointed to become a Non-Executive Director with effect
from 1 January 2016.

Diversity
The Board recognises the benefits of having diversity across
all areas of the Group and believes that this supports easyJet’s
continued success and advantage. When considering the
optimum make-up of the Board, the benefits of diversity of the
Board are appropriately reviewed and balanced where possible,
including in terms of differences in skills, industry experience,
business model experiences, gender, race, disability, age,
nationality, background and other contributions that individuals
may make. The Committee continues to encourage diversity of
business skills and experience, recognising that Directors with
varying skill sets, capabilities and experience gained from
different geographic and cultural backgrounds enhance the
Board. In identifying suitable candidates the Committee will seek
candidates from a range of backgrounds, with the final decision
being based on merit against objective criteria.

The Company has two female Directors, one being the Chief
Executive. Following the appointment of Chris Browne, the Board
will have 30% female representation from 1 January 2016. The
Company’s policy on diversity applies across all levels of the
organisation, and further details can be found in the Corporate
responsibility section on pages 35 to 36.

easyJet plc Annual report and accounts 2015FINANCE COMMITTEE

IT GOVERNANCE AND
OVERSIGHT COMMITTEE

ADÈLE ANDERSON,
CHAIR OF THE FINANCE COMMITTEE

JOHN BROWETT,
CHAIR OF THE IT GOVERNANCE AND OVERSIGHT COMMITTEE

The Finance Committee continues to provide effective
oversight of the Group’s treasury and funding policies and
activities, ensuring that activities undertaken will not subject
the Group to undesired levels of risk, and that treasury
activities are appropriately aligned with Group strategy
and support the Group financial performance.

The IT Governance and Oversight Committee provides
governance oversight, and gives independent validation
and challenge, to one of the Company’s key business areas.

Membership as at 30 September 2015
(all members are independent Non-Executive Directors)

• Adèle Anderson (Chair)

• Andy Martin

• Charles Gurassa (appointed to the

Committee effective from 13 November 2014)

• John Browett (Chair)

• Adèle Anderson

• Keith Hamill

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Keith Hamill stepped down from the Committee effective from
13 November 2014.

Key responsibilities
To review and monitor the Group’s treasury policies and treasury
and funding activities, and the related risks.

Highlights of the 2015 financial year
The Committee undertook:

• a review of debt funding alternatives;

• a review of foreign exchange and interest rate hedging

strategies; and

• a review of the unearned revenue and cash position.

Key responsibilities
To provide independent oversight over the governance and
controls relating to the IT business area, in particular covering
the required resilience and change. Specifically the Committee:

• monitors the strategic direction of the IT programme to ensure
it supports easyJet’s long-term goals within the ambit of its
strategic framework;

• reviews the risks and controls associated with IT strategy to ensure

appropriate mitigation is built into the implementation process;

• monitors implementation of the IT strategy and ensures that
changing business needs are being met in the context of
the Company’s strategic goals and competitive position; and

• provides financial oversight over the IT programmes as the

Committee considers necessary, including ensuring an appropriate
framework within which budgetary decisions are made.

Highlights of the 2015 financial year
The Committee has reviewed:

• the prioritisation and sequencing of the various IT programmes;

• the tender process for systems relating to an e-commerce

platform;

• the requirements and capacity of the operational platform; and

• the capabilities required to deliver the IT programmes.

Strategic reportGovernanceAccountswww.easyJet.comCorporate governance report continued

COMPLIANCE WITH THE UK
CORPORATE GOVERNANCE CODE
The Company has, throughout the 2015 financial year, complied
without exception with the provisions of the UK Corporate
Governance Code issued in September 2014 (the Code), which is
the version of the Code which applies to its 2015 financial year. The
section below details how the Company has complied with the Code,
available at www.frc.org.uk. The following disclosures are ordered into
the sections as they appear in the Code.

A. Leadership
A.1 Role of the Board
The Board is responsible for providing effective leadership to the
airline. It does this by setting strategic priorities and overseeing
their delivery in a way that enables sustainable long-term growth,
while maintaining a balanced approach to risk within a
framework of effective controls.

The Board has a formal schedule of matters reserved for its
decision which is available in the governance section of easyJet’s
corporate website: http://corporate.easyJet.com. Day-to-day
management responsibility rests with the Executive Management
Team, listed on pages 50 to 51. These individuals are also the
Directors and Company Secretary of the principal operating
company, easyJet Airline Company Limited.

The Board meets regularly, with nine scheduled meetings having
been held during the year. The Directors’ attendance records at
those meetings and Board Committee meetings held during the
year are shown in the table below. In addition to those scheduled
meetings, four ad hoc Board meetings were also arranged
to deal with matters arising between scheduled meetings as
appropriate. Non-Executive Directors are also encouraged
to communicate directly with senior management between
Board meetings.

Attendance at scheduled meetings

A.2 Division of responsibilities
The roles of Chairman and Chief Executive are separate, set
out in writing, clearly defined, and approved by the Board. They
are available on easyJet’s corporate website: http://corporate.
easyJet.com. The Chairman’s role is to lead the Board and
ensure that it operates effectively. The Chief Executive’s role
is the day-to-day running of the Group’s businesses and the
development and implementation of strategy.

A.3 The Chairman
The Chairman, John Barton, sets the Board’s agenda and ensures
that adequate time is available for discussion of all agenda items,
in particular strategic issues. On his appointment in May 2013, the
Board considered John Barton to be independent in character
and judgement in accordance with the Code.

A.4 Non-Executive Directors
Charles Gurassa is Senior Independent Director and Deputy
Chairman. In this role, Charles provides advice and additional
support and experience to the Chairman as required, and is
available to act as an intermediary for the other Directors if
necessary. Charles is also available to address shareholders’
concerns that have not been resolved through the normal
channels of communication with the Chairman, Chief Executive
or other Executive Directors, and leads the appraisal of the
Chairman’s performance annually in consultation with the other
Non-Executive Directors in a meeting without the Chairman
being present. The Non-Executive Directors, together with the
Chairman, have also met without any Executive Directors present
during the year. During the year, there were no unresolved
concerns regarding the running of the Company.

Number of scheduled meetings
Executive Directors
Carolyn McCall OBE(1)
Chris Kennedy(2)
Andrew Findlay
Non-Executive Directors
John Barton
Charles Gurassa
Keith Hamill OBE(3)
John Browett
Rigas Doganis(4)
Adèle Anderson
Andrew Martin
Andreas Bierwirth(5)
François Rubichon

Board
9

Audit
Committee
4

Remuneration
Committee
3

Finance
Committee
4

Safety
Committee
4

Nominations
Committee
2

IT Governance
and Oversight
Committee
6

1*
4*

4
4

9
7
1*

9
9
9
8
1
9
9
9
9

3*
3

3
1

3*
1*

1*
4

4
4

6*
3*

5
6

2
2
1*
1*
1
1*
1*
1*
2

* Not a member of the Board or Committee – attendance at meeting by invitation.

(1)

Carolyn McCall stepped down as a member of the Safety Committee on 1 December 2014 but continued to attend meetings by invitation.

(2) Chris Kennedy stepped down as a Director on 1 September 2015 and missed one Board meeting when on jury service.

(3) Keith Hamill missed an IT Governance and Oversight Committee meeting due to the rearrangement of the meeting date at short notice conflicting with

pre-existing arrangements.

(4) Rigas Doganis stepped down as a Director on 1 December 2014 but continued to chair the Safety Committee.

(5) Andreas Bierwirth joined the Safety Committee on 1 December 2014.

easyJet plc Annual report and accounts 2015B. Effectiveness
B.1 Composition of the Board
As at 30 September 2015, the Board comprised eight Non-
Executive Directors (including the Chairman) and one Executive
Director, Chris Kennedy having left the Company on 1 September
2015. The number of Executive Directors increased to two when
Andrew Findlay joined on 2 October 2015.

After giving thorough consideration to the matter, the Board
considers Adèle Anderson, Dr. Andreas Bierwirth, John Browett,
Charles Gurassa, Keith Hamill, Andy Martin and François
Rubichon to be Non-Executive Directors who are independent
in character and judgement.

B.2 Appointments to the Board
For information on the procedure for the appointment of
new Directors to the Board, and the role of the Nominations
Committee in this process, refer to the Nominations Committee
report on page 58.

B.3 Commitment
Following the Board evaluation process, detailed further below,
the Board is satisfied that each of the Directors is able to
allocate sufficient time to the Company to discharge their
responsibilities effectively.

Contracts and letters of appointment with Directors are made
available at the Annual General Meeting or on request. The
standard terms and conditions of the appointment of Non-
Executive Directors are also available in the governance section
of easyJet’s corporate website: http://corporate.easyJet.com.

Executive Directors are encouraged to take up non-executive
positions in other companies or organisations. Carolyn McCall, the
Chief Executive, has acted as Non-Executive Director at Burberry
Group plc since September 2014. Appointment to such positions
is subject to the approval of the Board which considers, amongst
other things, the time commitment required. The Executive
Management Team are permitted to hold one appointment on
a Board or committee of a listed company so long as this is not
thought to interfere with the business of the Group.

B.4 Development
On joining the Board, new members receive a tailored induction,
organised by the Company Secretary, which covers amongst
other things:

• the business of the Group;

• their legal and regulatory responsibilities as Directors;

• briefings and presentations from relevant executives; and

• opportunities to visit and experience easyJet’s business

operations.

To update the Directors’ skills, knowledge and familiarity with the
Group, visits to bases are organised for the Board periodically,
to assist its understanding of the operational issues that the
business faces. The Board were invited to attend a country
review Board and also observe the innovation day which was
run in Milan in June 2015. A briefing paper is provided to Board
members to update them on relevant developments in law,
regulation and best practice, usually two to four times per year.
Directors are encouraged to highlight specific areas where they
feel their skills or knowledge would benefit from development
as part of the annual Board evaluation process. The Board is
confident that all its members have the knowledge, ability and
experience to perform the functions required of a Director of
a listed company.

B.5 Information and Support
All members of the Board are supplied with appropriate, clear
and accurate information in a timely manner covering matters
which are to be considered at forthcoming Board or
Committee meetings.

Should Directors judge it necessary to seek independent legal
advice about the performance of their duties with the Company,
they are entitled to do so at the Company’s expense. Directors
also have access to the advice and services of the Company
Secretary who is responsible for advising the Board on all
governance matters and ensuring that Board procedures
are complied with.

The appointment and removal of the Company Secretary is
a matter requiring Board approval.

B.6 Evaluation
A performance review of the Board, its Committees and Directors
was undertaken with the assistance of an external facilitator,
Independent Audit Limited, during the period. Independent Audit
has no connection with the Company beyond evaluating the
Board. It is intended to hold an externally facilitated review every
three years.

The evaluation process took place in the summer and involved
interviews with each Director and a number of the Executive
Management Team. Independent Audit Limited also reviewed the
Board and committee papers over the past year and attended
and observed the July Board meeting.

The review extended to all aspects of Board and committee
performance including composition and dynamics, the Chairman’s
leadership, agenda and focus, clarity as to role with particular
focus on its effectiveness in relation to strategic development,
oversight of risk and succession planning, and priorities for
change. Independent Audit Limited provided a report to the
Board, which was included in the papers for the Board’s
September meeting.

Charles Gurassa, as Senior Independent Director, led a review of
the Chairman’s performance and held a private meeting of the
Non-Executive Directors without the Chairman present to discuss
the Chairman’s performance. The Executive Directors and the
Non-Executive Directors also reviewed and were satisfied with
the Chairman’s time commitment to the Board and the business.

The Chairman conducted a process of evaluating the
performance and contribution of each Director which included
a one-to-one performance evaluation and feedback discussion
with each of them.

The Board has started to determine appropriate actions in
response to the areas highlighted in these reviews. It will also
continue to review its procedures, effectiveness and development
objectives in the year ahead.

The Board considers that the performance review shows that
each Director continues to contribute effectively and demonstrate
commitment to the role (including commitment of time for Board
and Committee meetings and any other duties).

B.7 Re-election
The Company’s Articles of Association require the Directors to
submit themselves for re-election by shareholders at least once
every three years. However, the Board has decided that all
Directors will stand for re-election or election at each Annual
General Meeting in accordance with the Code.

Strategic reportGovernanceAccountswww.easyJet.comCorporate governance report continued

C. Accountability
C.1 Financial and Business Reporting
Please refer to:

• page 84 for the Board’s statement on the Annual report
and accounts being fair, balanced and understandable;

• page 22 for the statement on the status of the Company

and the Group as a going concern; and

E. Relations with shareholders
E.1 Dialogue with Shareholders
The Company actively engages with investors and solicits their
feedback. The Chairman met with shareholders to help maintain
a balanced understanding of their issues and concerns. He has
updated the Board on the opinions of investors. The views of
shareholders and market perceptions are also regularly
communicated to the Board via verbal briefings.

• the Strategic report on pages 6-15 for an explanation of the
Company’s business model and the strategy for delivering
the objectives of the Company.

easyJet has an investor relations department which runs an
active programme to facilitate engagement with investors based
around the financial reporting calendar.

C.2 Risk Management and Internal Control
The Board has carried out a robust assessment of the principal
risks facing the Company and how those risks affect the
prospects of the Company. Please refer to pages 24-29 for
further information on the Company’s principal risks and
uncertainties and page 22 for their impact on the prospects
of the Company.

The overall responsibility for easyJet’s systems of internal control
and for reviewing their effectiveness rests with the Board. The
Board has conducted an annual review of the effectiveness
of the systems of internal control during the year, under the
auspices of the Audit Committee. Further information on the
Company’s risk management and internal control systems is
given on page 63.

C.3 Audit Committee and Auditors
For further information on the Company’s compliance with the
Code provisions relating to the Audit Committee and auditors,
please refer to the Audit Committee report on pages 54-57.

D. Remuneration
For further information on the Company’s compliance with the
Code provisions relating to remuneration, please refer to:

• the Directors’ remuneration report on pages 64-83 for the

level and components of remuneration (D.1); and

• page 53 (the Remuneration Committee Report) for the

procedure relating to remuneration (D.2).

This year the programme has included one-to-one meetings
with institutional investors, road shows and conferences. There
is also regular communication with institutional investors on
key business issues.

During the course of the year the Chairman and Chief Executive
have both met with a representative of easyGroup Holdings
Limited, the Company’s largest shareholder, to discuss relevant
matters. The Chief Financial Officer, Chris Kennedy, has also met
separately with representatives of easyGroup Ltd (an affiliate of
easyGroup Holdings Limited) to discuss matters relating to the
management and protection of the “easyJet” and “easy” brands.

E.2 Constructive use of the Annual General Meeting
The Annual General Meeting gives all shareholders the
opportunity to communicate directly with the Board and
encourages their participation. Shareholders are given the
opportunity to raise issues formally at the Annual General
Meeting or informally with Directors after the meeting. All
Directors normally attend the Annual General Meeting and the
Chairs of the Committees are available to answer questions at
the Annual General Meeting.

easyJet plc Annual report and accounts 2015RISK MANAGEMENT AND
INTERNAL CONTROL
The Board has overall responsibility for easyJet’s risk
management and systems of internal control.

Risk management
easyJet has an established risk management process to ensure
that significant risks are identified and mitigated where possible.
For further details of the risk management process, the principal
risks and uncertainties faced by the Group and the associated
mitigating actions, please refer to pages 24-29.

In order that risks are managed effectively, a number of activities
are undertaken:

• ongoing risk management and assurance is provided through

the various monitoring reviews and reporting mechanisms that
are embedded into the business operations;

• regular operational (including safety), commercial, financial and
IT functional meetings are held to review performance and to
consider key risks and issues; (please refer to pages 52-53 for
details of the Safety Committee); and

• the Executive Management Team meets regularly to consider

significant risks and overall business performance.

To mitigate any significant risks identified, the Directors review
the effectiveness of internal controls, including operating,
financial and compliance controls, by the following:

• review by management of controls, which mitigate or minimise
high-level risks, to ensure that they are in operation. The results
of this review are reported to the Audit Committee and the
Board which considers whether these high-level risks are being
effectively controlled; and

Internal control
The responsibility for establishing and operating detailed control
procedures lies with the Chief Executive. The internal control
systems are designed to manage, rather than eliminate, the risk
of failure to achieve business objectives. By their nature, they
can only provide reasonable, but not absolute, assurance against
material misstatement or loss.

The Board has conducted an annual review of the effectiveness
of the systems of internal control during the year, under the
auspices of the Audit Committee. This included reviews of
systems and controls relating to financial reporting processes
and the preparation of the accounts. The internal financial
control monitoring programme, administered by Internal Audit,
has continued to enhance the review process.

The internal control regime is supported by the operation of
a whistleblower reporting function. The system is operated by
a specialist external third-party service provider and allows
employees to report concerns anonymously and in confidence.
The Audit Committee has approved the processes and reporting
structure for the function, and receives regular reports on
its operation.

Internal audit
The Internal Audit function’s key objectives are to provide
independent and objective assurance on risks and controls to the
Board, Audit Committee and senior management, and to assist
the Board in meeting its corporate governance and regulatory
responsibilities. Its work is summarised in a risk-based audit plan,
which is approved by the Audit Committee and updated on a
rolling basis.

Internal Audit reviews the extent to which systems of internal control:

• are designed and operating effectively;

• discussions with senior personnel throughout the Company.

• are adequate to manage easyJet’s key risks; and

This ensures key issues are escalated through the management
team and, as appropriate, ultimately to the Board.

• safeguard the Group’s assets.

The Audit Committee undertakes an annual review of the
appropriateness of the risk management processes to ensure
that they are sufficiently robust to meet the needs of the
Group (please refer to pages 54-57 for details of the Audit
Committee’s responsibilities).

The Head of Internal Audit reports to the Head of Risk and Tax
and has direct access to the Chief Executive and the Chairman
of the Audit Committee. The Head of Internal Audit is invited to,
and attends, Audit Committee meetings throughout the year
and reports regularly on Internal Audit reviews to the Executive
Management Team.

During the year, the effectiveness of the Internal Audit function
was assessed by the Audit Committee. The role of the Internal
Audit function and the scope of its work both continue to evolve
to take account of changes within the business and emerging
best practice. A formal audit charter is in place.

Strategic reportGovernanceAccountswww.easyJet.comDirectors’ remuneration report
Annual statement by the
chair of the remuneration committee

companies for the three financial years ended 30 September
2015. The Group achieved average ROCE performance (including
lease adjustments) of 20.0%, and the Company was ranked in the
top decile in terms of TSR relative to FTSE 51-150 companies,
reflecting exceptional performance over the period. This level of
performance, reflecting a return of 236% for investment in easyJet
shares, resulted in 100% of the awards vesting successfully,
subject to continued employment to the vesting date.

Remuneration policy for the 2016 financial year
The Company’s remuneration policy was approved by
shareholders at last year’s AGM in February 2015 and the current
intention is that it will apply until the 2018 AGM. As such, we will
not be asking shareholders to vote on the policy at the 2016
AGM. In reviewing the policy last year, one key conclusion of
the Committee was that the Company’s remuneration policy
should continue to be aligned with easyJet’s principles and the
Committee is of the view that this remains the case. In line
with our principles, and taking full account of the ‘best practice’
expectations of investors, we took the opportunity of simplifying
our arrangements and 2015 was therefore the last time that we
made Matching Share Awards under the LTIP. From 2016, awards
will be made as Performance Shares only. The Committee
remains confident that the policy is appropriate and that it
satisfies our objective to operate a remuneration structure which
successfully promotes the long-term success of the Company.

The Committee has further reviewed the LTIP and has recalibrated
the targets in line with the current key strategic focus and
projected additional capital expenditure within the business. This
has led to a rebalancing of the current performance metric from
an equal split of ROCE and relative TSR to a condition based 70%
on ROCE and 30% on TSR. The target range continues to be set
taking into account internal projections and external views. The
range is the same as last year with a small enhancement to pay
out on achieving target expectations. This has been the subject
of consultation with the Company’s major shareholders and the
leading shareholder advisory bodies. The Committee believe
these to be appropriate and demanding targets.

In summary, our relatively straightforward remuneration consists
of a base salary, pension contribution of 7%, benefit provision
and, subject to stretching performance conditions, an annual
bonus plan, part paid in cash and part deferred into shares,
and shares awarded under an LTIP. Incentive pay is subject to
clawback provisions, a post-vesting holding period operates for
LTIP awards and significant share ownership guidelines apply.

The basic salary of the Chief Executive increased by 1%, in line
with the typical rate of increase being awarded across the
Group. The increase will be effective from 1 January 2016.

Changes to the Board
We announced in January 2015 that our CFO, Chris Kennedy,
would be leaving to take up another role. Chris subsequently
stepped down from the Board and left the Company on 1
September 2015. We are delighted that Andrew Findlay has
joined us as CFO from 2 October 2015.

Chris Kennedy worked the majority of his notice period and will
not receive any payment in lieu of the balance of his notice
period after leaving the Company. In line with the Company’s
remuneration policy, following his resignation, Chris was not
eligible to receive a bonus for the 2015 financial year. Under
the rules of the LTIP, any unvested LTIP awards after the date
of departure lapsed, and all benefits also ceased.

CHARLES GURASSA,
CHAIR OF THE REMUNERATION COMMITTEE

Performance of the Group in the 2015 financial year
easyJet has continued to deliver sustainable returns and growth
for its shareholders. The key highlights are as follows:

• profit before tax up by 18% to £686 million;

• 1.7 percentage point growth in return on capital employed

(ROCE) (including lease adjustments) from 20.5% in 2014 to
22.2% in 2015;

• increased ordinary dividend with a proposed ordinary dividend

of 55.2 pence per share;

• on-time performance was 80%, marginally above the threshold

for the year; and

• total cost per seat (excluding fuel at constant currency) and
customer satisfaction outcomes for the year were below
bonus thresholds for the year.

Aligning remuneration policy with Company principles
Simple and cost-effective approach – In line with our low-cost
and efficient business model, the Committee has chosen to
set a simple pay package against the market. For example, our
Executive Directors do not receive the Executive benefits that
can be found in most organisations (see page 66).

Support the stated business strategy of growth and returns –
Performance is assessed against a range of financial, operational
and longer-term targets ensuring value is delivered to shareholders,
and Directors are rewarded for the successful delivery of the key
strategic objectives of the Company.

Pay for performance – Remuneration is heavily weighted towards
variable pay, dependent on performance. This ensures that there
is a clear link between the value created for shareholders and the
amount paid to our Executive Directors.

Key pay outcomes in respect of the 2015 financial year – Annual
bonuses are based on profit before tax and key operational and
financial targets. A bonus of 66% of the maximum was awarded
to the Chief Executive in respect of the 2015 financial year. This
reflects the strong results the Group has achieved. One-third of
the bonus earned is subject to compulsory deferral for three
years. In light of the resignation during the year of Chris Kennedy,
the Chief Financial Officer, he is not eligible to receive a bonus
award in respect of the 2015 financial year.

Under the Long Term Incentive Plan (LTIP), Performance Share
Awards made in December 2012 are due to vest in December
2015. These awards are based on a combination of average
ROCE performance (including lease adjustments) and relative
total shareholder return (TSR) compared to FTSE 51-150

easyJet plc Annual report and accounts 2015OUR REMUNERATION POLICY
What is the role of our Remuneration Committee?
The Remuneration Committee has responsibility for determining
remuneration for the Executive Directors and the Chairman of
the Board. The Committee also reviews the remuneration of the
Group’s most senior executives in consultation with the Chief
Executive. The Committee takes into account the need to
recruit and retain executives and ensure that they are properly
motivated to perform in the interests of the Company and
its shareholders, while paying no more than is necessary.

What does the Committee consider when setting
remuneration?
When setting the policy for Executive Directors’ remuneration,
the Committee takes into account total remuneration levels
operating in companies of a similar size and complexity, the
responsibilities of each individual role, individual performance
and an individual’s experience. Our overall policy, having had due
regard to the factors noted, is to weight remuneration towards
variable pay. This is typically achieved through setting base pay
at up to market median levels, offering very modest pension and
benefits, and above-market variable pay opportunities linked to
the achievement of demanding performance targets.

In setting remuneration for the Executive Directors, the
Committee takes note of the overall approach to reward for
employees in the Group. Salary increases will ordinarily be (in
percentage of salary terms) in line with those of the wider
workforce. The Committee does not formally consult directly
with employees on executive pay but does receive periodic
updates from the Group People Director.

The Committee also considers developments in institutional
investors’ best practice expectations and the views expressed
by shareholders during any dialogue.

How do we take into account the views of shareholders when
we determine the remuneration policy?
easyJet remains committed to shareholder dialogue and takes
an active interest in voting outcomes. We consult extensively
with our major shareholders when setting our remuneration
policy. If any of these shareholders were to be opposed to our
policy, we would endeavour to meet with them, as appropriate,
to understand and respond to any issues they may have.

The policy set out below applies to awards granted from the
2013 financial year onwards. Awards granted under the previous
policy are subject to different performance measures (typically
Return on Equity (ROE) or ROCE as the sole performance
measure), have different award levels and may be earned in
line with the terms of their grant in due course. Details of all
the outstanding share awards granted to existing Executive
Directors are set out in the Annual Report on Remuneration.

On joining the Board on 2 October 2015, Andrew Findlay’s base
salary was set at £425,000. The intention on joining was to set
the salary at a discount to the market level but with a view that
it would be brought up to the mid-market level as he gained
experience in the role. The Committee therefore intends to
increase his salary to £500,000 in equal increments over the
next two to three years subject to individual and Company
performance. The Committee has taken account of easyJet’s
policy of providing benefits and pension at modest levels and
the weighting on variable pay in the overall package in
determining the salary level. Andrew will also receive a cash
alternative to pension of 7% of salary, annual bonus opportunity
of 175% of salary, annual LTIP award of 200% of salary, and
some modest benefits. This package is consistent with our
remuneration policy. In addition, in order to secure the
appointment, certain buy-out arrangements have been agreed,
to compensate Andrew for incentive awards forfeited from his
previous employer. The Committee has taken particular care in
ensuring that these arrangements are appropriate in light of our
policy, the expectations of institutional investors, where a
buy-out takes place, and replicate, as closely as possible, the
expected value, form and time horizons of the forfeited awards.

Shareholder feedback
easyJet is committed to maintaining an open and transparent
dialogue with shareholders. The objective of this report is to
communicate clearly how much the Executive Directors are
earning and how this is linked to performance. As always, I
welcome any comments you may have.

CHARLES GURASSA
Chair of the Remuneration Committee
16 November 2015

WHAT IS IN THIS REPORT?
This report sets out easyJet’s remuneration policy for
Executive and Non-Executive Directors, describes the
implementation of that policy and discloses the amounts
earned relating to the year ended 30 September 2015.

The report complies with the provisions of the Companies
Act 2006 and Schedule 8 of The Large and Medium-sized
Companies and Groups (Accounts and Reports)
(Amendment) Regulations 2013. The report has been
prepared in line with the recommendations of the UK
Corporate Governance Code and the requirements of the
UKLA Listing Rules.

The Directors’ remuneration policy was approved by
shareholders in a binding vote at the 2015 AGM on 12 February
2015. The policy took formal effect from the date of approval
and the intention is that it will apply until the 2018 AGM. A
summary of the policy has again been included in this report
(set out on pages 61 to 67) for the purposes of clarity
and transparency.

The Annual Statement by the Chairman of the
Remuneration Committee (set out on pages 64 to 65) and
the Annual Report on Remuneration (set out on pages 71 to
80) will be subject to an advisory vote at the AGM.

Strategic reportGovernanceAccountswww.easyJet.comDirectors’ remuneration report continued

Framework used to assess
performance and provisions
for the recovery of sums paid

The Committee considers
individual salaries at the
appropriate Committee
meeting each year after having
due regard to the factors noted
in operating the salary policy.

No recovery provisions apply
to salary.

Element, purpose
and link to strategy

Salary
To provide the core
reward for the role.

Sufficient level to recruit
and retain individuals of
the necessary calibre to
execute the Company’s
business strategy

Operation (including maximum levels where applicable)

Base salaries are normally reviewed annually, with changes effective
from 1 January.

Salaries are typically set after considering salary levels in companies
of a similar size and complexity, the responsibilities of each individual
role, progression within the role, individual performance and an
individual’s experience. Our overall policy, having had due regard
to the factors noted, is normally to target salaries at the market
median level.

Salaries may be adjusted and any increase will ordinarily be (in
percentage of salary terms) in line with those of the wider workforce.

Increases beyond those granted to the wider workforce
(in percentage of salary terms) may be awarded in certain
circumstances such as where there is a change in responsibility,
progression in the role, experience or a significant increase in the
scale of the role and/or size, value and/or complexity of the Group.

Salary levels for current incumbents, effective from 1 January 2016,
are as follows:

• Chief Executive: £705,600.

• Chief Financial Officer: £425,000

Benefits
In line with the
Company’s policy to
keep remuneration
simple and consistent.

Executive Directors receive modest personal accident and life
assurance cover (0.5 x salary), at similar levels as the wider UK
workforce. The cost to the Company of providing these benefits
may vary from year to year depending on the level of the
associated premium.

Not applicable.

No recovery provisions apply
to benefits.

Executive Directors receive no other conventional executive
company benefits.

Executive Directors can pay for voluntary benefits, where Company
purchasing power may provide an advantage to employees.

Executive Directors are also eligible to participate in any all-employee
share plans operated by the Company, in line with HMRC guidelines
currently prevailing (where relevant), on the same basis as for other
eligible employees.

Should it be appropriate to recruit a Director from overseas, flexibility
is retained to provide benefits that take account of those typically
provided in their country of residence (e.g. it may be appropriate
to provide benefits that are tailored to the unique circumstances
of such an appointment as opposed to providing the benefits
detailed above).

Necessary expenses incurred undertaking Company business are
reimbursed so that Executive Directors are not worse off on a net
of tax basis for fulfilling Company duties.

Defined contribution plan with the same monthly employer
contributions as those offered to eligible employees in the
wider UK workforce, of 7% of base salary. A cash alternative
may be considered.

Not applicable.

No recovery provisions apply to
employer pension contributions.

While individuals are not obliged to make contributions, easyJet
operates a pension salary sacrifice arrangement whereby individuals
can exchange part of their salary for Company paid pension
contributions. Where individuals exchange salary this reduces
employer National Insurance contributions. easyJet credits half of this
reduction (currently 6.9% of the salary exchanged) to the individual’s
pension plan.

Pension
To provide employees
with long-term savings
via pension provisions in
line with the Company’s
strategy to keep
remuneration simple
and consistent.

easyJet plc Annual report and accounts 2015Element, purpose
and link to strategy

Annual bonus
To incentivise and
recognise execution of
the business strategy
on an annual basis.

Rewards the achievement
of annual financial and
operational goals.

Compulsory deferral
provides alignment
with shareholders.

Operation (including maximum levels where applicable)

Maximum opportunity of 200% of salary for
Chief Executive and 175% of salary for other
Executive Directors.

One-third of the bonus earned is subject to
compulsory deferral into shares (or equivalent)
in a Deferred Annual Bonus Plan (DABP),
typically for a period of three years, and is
normally subject to continued employment.

The remainder of the bonus is paid in cash.

Dividend equivalent payments may be made
(in cash or shares) under the DABP, at the time
of vesting and may assume the reinvestment
of dividends.

All bonus payments are at the discretion of
the Committee, as shown following this table.

LTIP Performance Share
Award
To incentivise and
recognise execution of
the business strategy
over the longer term.

Rewards strong financial
performance and
sustained increase in
shareholder value.

Each year LTIP awards may be granted subject
to the achievement of performance targets.
Awards normally vest over a three-year period.

The maximum opportunity contained within
the plan rules for Performance Share Awards
is 250% of salary (with awards up to 300%
of salary eligible to be made in exceptional
circumstances, such as recruitment).

The normal maximum face value of annual
awards will be 250% of salary for the Chief
Executive and 200% of salary for other
Executive Directors.

A dividend equivalent provision exists which
allows the Committee to pay dividends on
vested shares (in cash or shares) at the time of
vesting and may assume the reinvestment of
dividends. A holding period applies to share
awards granted in the financial year ended
30 September 2015 and beyond. The holding
period will require the Executive Directors
to retain the after-tax value of shares for
24 months from the vesting date.

Share ownership
To ensure alignment
between the interests of
Executive Directors and
shareholders.

200% of salary holding required for the Chief
Executive and 175% of salary for the Chief
Financial Officer which is expected to be
reached within five years of appointment.

Executive Directors are required to retain half
of the post-tax shares vesting under the LTIP
until the guideline is met.

Framework used to assess performance and provisions
for the recovery of sums paid

Bonuses are based on stretching financial,
operational and, in some cases, personal/
departmental performance measures, as set and
assessed by the Committee in its discretion. Financial
measures (e.g. profit before tax) will represent the
majority of bonus, with other measures representing
the balance. A graduated scale of targets is set for
each measure, with 10% of each element being
payable for achieving the relevant threshold hurdle.

Safety underpins all of the operational activities
of the Group and the bonus plan includes provision
that enables the Remuneration Committee to scale
back the bonus earned in the event that there is a
safety event which it considers warrants the use
of such discretion.

The cash and deferred elements of bonuses are
subject to provisions which enable the Committee
to recover the cash paid (clawback) or to lapse the
associated deferred shares (malus) in the event of
a misstatement of results for the financial year to
which the bonus relates, or an error in determining
the cash bonus or the number of shares comprising
a deferred share award, within three years of the
payment of the cash bonus.

LTIP awards vest based on three-year performance
against a stretching range of financial targets and
relative TSR performance set and assessed by the
Committee in its discretion. Financial targets will
determine vesting in relation to at least 50%
of awards.

In order for the TSR portion of the award to be
earned, the Company’s absolute TSR performance
must also be positive over the performance period.

25% of each element vests for achieving the
threshold performance target with 100% of the
awards being earned for maximum performance.
(There is straight-line vesting between these points).

The LTIP includes provisions which enable the
Committee to recover value in the event of a
misstatement of results for the financial year to
which the vesting of awards related, or an error in
calculation when determining the vesting result
within three years of the vesting (i.e. clawback
provisions apply). The mechanism through which
the clawback can be implemented enables the
Committee to: (i) reduce the outstanding LTIP share
awards (i.e. malus provisions may be used to effect
a clawback), or (ii) for the Committee to require that
a net of tax balancing cash payment be made.

Not applicable.

Strategic reportGovernanceAccountswww.easyJet.comDirectors’ remuneration report continued

What discretion is retained by the Committee in operating
its incentive plans?
The Committee will operate the annual bonus plan, LTIP and
Deferred Annual Bonus Plan according to their respective rules
(or relevant documents) and in accordance with the Listing Rules
where relevant. The Committee retains discretion, consistent
with market practice, in a number of regards to the operation
and administration of these plans. These include, but are not
limited to, the following in relation to the LTIP and Deferred
Annual Bonus Plan:

• the participants;

• the timing of grant of an award;

• the size of an award;

• the determination of vesting;

• discretion required when dealing with a change of control

or restructuring of the Group;

• determination of the treatment of leavers based on the rules

of the plan and the appropriate treatment chosen;

• adjustments required in certain circumstances (e.g. rights

issues, corporate restructuring events and special dividends);
and

• the annual review of performance measures and weighting,

and targets for the LTIP from year to year.

In relation to the annual bonus plan, the Committee retains
discretion over:

• the participants;

• the timing of grant of a payment;

• the determination of the bonus payment;

• dealing with a change of control;

• determination of the treatment of leavers based on the rules

of the plan and the appropriate treatment chosen; and

• the annual review of performance measures and weighting,
and targets for the annual bonus plan from year to year.

In relation to both the Company’s LTIP and annual bonus plan,
the Committee retains the ability to adjust the targets and/or set
different measures if events occur which cause it to determine
that the conditions are no longer appropriate (e.g. material
acquisition and/or divestment of a Group business), and the
amendment is required so that the conditions achieve their
original purpose and are not materially less difficult to satisfy.

Any use of the above discretions would be explained in the
Annual Report on Remuneration and may be the subject of
consultation with the Company’s major shareholders.

The use of discretion in relation to the Company’s Save As You
Earn and Share Incentive Plans will be as permitted under HMRC
rules and the Listing Rules.

Details of share awards granted to existing Executive Directors
are set out on page 75 of the Annual Report on Remuneration.
These remain eligible to vest based on their original award terms.

How were the performance metrics chosen and how were
the performance targets set?
The performance metrics used for the annual bonus plan
and LTIP have been selected to reflect the Group’s key
performance indicators.

Profit before tax is used to assess annual performance as this
reflects how successful the Company has been in managing
operations effectively (e.g. in maximising profit per seat whilst
maintaining a high load factor). The balance is determined based
on how well the Company performs against other specific key
performance indicators set annually (e.g. on-time performance
and customer satisfaction) to ensure that Executive Directors
are motivated to deliver across a scorecard of objectives.

Since safety is of central importance to the business, the
award of any bonus is subject to an underpin that enables the
Remuneration Committee to reduce the bonus earned in the
event that there is a safety event that it considers warrants
the use of such discretion.

LTIP awards are earned for delivering performance against ROCE
and relative TSR targets. These seek to assess the underlying
financial performance of the business while maintaining clear
alignment between shareholders and Executive Directors. Targets
are set based on a sliding scale that takes account of relevant
commercial factors.

Only modest awards are available for delivering threshold
performance levels with maximum awards requiring substantial
outperformance of challenging plans.

No performance targets are set for Save As You Earn and Share
Incentive Plan awards since these form part of all-employee
arrangements that are purposefully designed to encourage
employees across the Group to purchase shares in the Company.

Have LTIP Awards always been granted subject to the same
performance targets?
The LTIP, under which the Performance and Matching Share
Awards are granted, was approved by shareholders in 2008.
Further details on how the awards are structured and operated
are set out in the plan rules which are available, on request, from
the Company.

How does the executive pay policy differ from that for other
easyJet employees?
The remuneration policy for the Executive Directors is more
heavily weighted towards variable pay than for other employees,
to make a greater part of their pay conditional on the successful
delivery of business strategy. This aims to create a clear link
between the value created for shareholders and the
remuneration received by the Executive Directors. However, in
line with the Company’s policy to keep remuneration simple and
consistent, the benefit and pension arrangements for the current
Executive Directors are on the same terms as those offered to
eligible employees in the wider workforce.

easyJet plc Annual report and accounts 2015How much could the Executive Directors earn under the
remuneration policy?
A significant proportion of remuneration is linked to performance,
particularly at maximum performance levels. The charts below show
how much the Chief Executive and Chief Financial Officer could earn
under easyJet’s remuneration policy (as detailed above) under
different performance scenarios (based on their salaries as at 2
October 2015 – Chief Financial Officer’s date of joining). The following
assumptions have been made:

Minimum (performance below threshold) – Fixed pay only with
no vesting under any of easyJet’s incentive plans.

In line with expectations – Fixed pay plus a bonus at the mid-point
of the range (giving 50% of the maximum opportunity) and vesting
of 37.5% of the maximum under the LTIP.

Maximum (performance meets or exceeds maximum) – Fixed pay
plus maximum bonus and maximum vesting under the LTIP.

Fixed pay comprises:

• salaries – salary effective as at 2 October 2015;

• benefits – amount received by each Executive Director in

the 2015 financial year;

• pension – employer contributions or cash-equivalent payments
received by each Executive Director in the 2015 financial year;
and

• Free and Matching Shares under the all-employee share

incentive plan.

The scenarios do not include any share price growth or
dividend assumptions.

CHIEF EXECUTIVE

Below
threshold

In line with
expectations
Exceeds
target

100%

£752,000

36%

33% 31%

£2,106,000

19%

36%

45%

£3,896,000

CHIEF FINANCIAL OFFICER

Below
threshold

In line with
expectations

Exceeds
target

100%

£460,000

40%

32% 28%

£1,150,000

22%

36%

42%

£2,053,000

Fixed pay
Annual Bonus
LTIP (Performance)

It should be noted that since the analysis above shows what
could be earned by the Executive Directors based on the
remuneration policy described above (ignoring the potential
impact of share price growth), the numbers will be different
to the values included in the table on page 73 detailing what
was actually earned by the Executive Directors in relation to
the financial year ended 30 September 2015, since these values
are based on the actual levels of performance achieved to
30 September 2015 and include the impact of share price
growth in relation to share awards.

What are the Executive Directors’ terms of employment?
Under the Executive Directors’ service contracts both parties are
required to give 12 months’ notice of termination of employment.

For Executive Directors, if notice is served by either party, the
Executive Director can continue to receive basic salary, benefits
and pension for the duration of their notice period during which
time the Company may require the individual to continue to fulfil
their current duties or may assign a period of garden leave.

The policy for a new hire would be based on similar terms and
will also include the ability for easyJet to make a payment in lieu
of notice of up to 12 monthly instalments which would be
reduced if alternative employment was taken up.

Under the current Chief Executive’s contract, the Company, by
mutual consent, may elect to make a payment in lieu of notice
equivalent in value to 12 months’ basic salary, payable in monthly
instalments which would be subject to mitigation if alternative
employment is taken up during this time. Alternatively, this
payment may be paid as a lump sum. Bonus payments may be
made, payable in cash, on a pro-rata basis, but only for the
period of time served from the start of the financial year to the
date of termination and not for any period in lieu of notice. Any
bonus paid would be subject to the normal bonus targets, tested
at the end of the financial year. The current Chief Executive has
a contractual entitlement to such a pro-rated payment under
her service contract, other than in the cases of resignation or
termination resulting from gross misconduct. These provisions
do not apply to the Chief Financial Officer.

In relation to a termination of employment, the Committee
may make any statutory entitlements or payments to settle
or compromise claims in connection with a termination of
any existing or future Executive Director as necessary. The
Committee also retains the discretion to reimburse reasonable
legal expenses incurred in relation to a termination of employment
and to meet any outplacement costs if deemed necessary.

The Executive Directors’ service contracts and the Non-
Executive Directors’ letters of appointment are available for
inspection by shareholders at the Company’s registered office.

What is the policy when an Executive Director leaves or there
is a takeover?
The rules of both schemes (LTIP and Deferred Annual Bonus
Plan) set out what happens to awards if a participant ceases
to be an employee or Director of easyJet before the end of the
vesting period. Generally, any outstanding share awards will lapse
on such cessation, except in certain circumstances.

If an Executive Director ceases to be an employee or Director
of easyJet as a result of death, injury, retirement, the sale of the
business or company that employs the individual, or any other
reason at the discretion of the Committee, then they will be
treated as a ‘good leaver’ under the relevant plan’s rules. Under
the Deferred Annual Bonus Plan, the shares for a good leaver will
normally vest in full on the normal vesting date (or on cessation
of employment in the case of death) and if the award is in the
form of an option, there is a 12-month window in which the
award can be exercised. Awards structured as options which
have vested prior to cessation can be exercised within 12 months
of cessation of office or employment.

Strategic reportGovernanceAccountswww.easyJet.comDirectors’ remuneration report continued

Under the LTIP, a good leaver’s unvested awards will vest (either
on the normal vesting date or the relevant date of cessation,
as determined by the Committee) subject to achievement of
any relevant performance conditions, with a pro-rata reduction
to reflect the proportion of the vesting period served. The
Committee has the discretion to disapply time pro-rating if it
considers it appropriate to do so. A good leaver may exercise
their vested awards structured as options for a period of
12 months following the individual’s cessation of office or
employment, whereas unvested awards may be exercised
within 12 months of vesting.

In determining whether an Executive Director should be treated
as a good leaver, and the extent to which their award may vest,
the Committee will take into account the circumstances of an
individual’s departure.

In the event of a takeover or winding-up of easyJet plc (which
is not part of an internal reorganisation of the easyJet Group,
in circumstances where equivalent replacement awards are
not granted) all awards will vest subject to, in the case of LTIP
awards, the achievement of any relevant performance conditions
with a pro-rata reduction to reflect the proportion of the vesting
period served. The Committee has discretion to disapply time
pro-rating if it considers it appropriate to do so. In the event of
a takeover, the Committee may determine, with the agreement
of the acquiring company, that awards will be exchanged for
equivalent awards in another company.

What is the policy on Executive Directors holding
external appointments?
Executive Directors are permitted to accept one appointment on
a board or committee of a listed company so long as this is not
thought to interfere with the business of the Group. Any fees
received in respect of these appointments are retained directly
by the relevant Executive Director.

What would the remuneration policy be if a new Director
was appointed?
Base salary levels will be set in accordance with easyJet’s
remuneration policy, taking into account the experience and
calibre of the individual (e.g. typically up to market median levels
but salaries above or below this level may be set dependent
upon the level of the individual). Where it is appropriate to offer
a lower salary initially, a series of increases to achieve the desired
salary positioning may be given over the following few years
subject to individual performance. Benefits will be provided in line
with those offered to other employees, with relocation expenses/
arrangements provided if necessary. easyJet may offer a cash
amount on recruitment, payment of which may be staggered,
to reflect the value of benefits a new recruit may have received
from a former employer.

Should it be appropriate to recruit a Director from overseas,
flexibility is retained to provide benefits that take account of
those typically provided in their country of residence (e.g. it may
be appropriate to provide benefits that are tailored to the unique
circumstances of such an appointment).

The maximum level of variable pay that may be offered on
an ongoing basis and the structure of remuneration will be in
accordance with the approved policy detailed above, i.e. at an
aggregate maximum of up to 450% of salary (200% annual
bonus and 250% Performance Shares under the LTIP), taking
into account annual and long-term variable pay. This limit
does not include the value of any buy-out arrangements.

Different performance measures may be set initially for the
annual bonus, taking into account the responsibilities of the
individual, and the point in the financial year that they joined.
Any incentive offered above this limit would be contingent on
the Company receiving shareholder approval for an amendment
to its approved policy at its next General Meeting.

The above policy applies to both an internal promotion to the
Board or an external hire.

In the case of an external hire, if it is necessary to buy out
incentive pay or benefit arrangements (which would be forfeited
on leaving the previous employer), this would be provided
for taking into account the form (cash or shares), timing
and expected value (i.e. likelihood of meeting any existing
performance criteria) of the remuneration being forfeited.
Replacement share awards, if used, will be granted using
easyJet’s share plans to the extent possible, although awards
may also be granted outside these schemes if necessary and
as permitted under the Listing Rules.

In the case of an internal promotion, any outstanding variable
pay awarded in relation to the previous role will be paid
according to its terms of grant (adjusted as relevant to take
into account the Board appointment).

On the appointment of a new Chairman or Non-Executive
Director, fees will be set taking into account the experience
and calibre of the individual. Where specific cash or share
arrangements are delivered to Non-Executive Directors, these will
not include share options or other performance-related elements.

How are the Non-Executive Directors paid?
The Chairman, Deputy Chairman and Non-Executive Directors
receive an annual fee (paid in monthly instalments). The fee for
the Chairman is set by the Remuneration Committee and the
fees for the Deputy Chairman and Non-Executive Directors are
approved by the Board, on the recommendation of the
Chairman and Chief Executive.

What are the terms of appointment of the Non-Executive
Directors?
The Chairman, Deputy Chairman and Non-Executive Directors’
terms of appointment are recorded in letters of appointment,
which are usually renewed every three years. The required notice
from the Company is three months in all cases. The Non-
Executive Directors are not entitled to any compensation on loss
of office.

easyJet plc Annual report and accounts 2015Element

Purpose and link to strategy

Operation (including maximum levels where applicable)

Fees

To attract and retain a high-
calibre Chairman, Deputy
Chairman and Non-Executive
Directors by offering market-
competitive fee levels.

The Chairman is paid an all-inclusive fee for all Board responsibilities.

The other Non-Executive Directors receive a basic Board fee, with
supplementary fees payable for additional Board Committee responsibilities.

The Chairman and Non-Executive Directors do not participate in any of the
Company’s incentive arrangements.

Fee levels are reviewed on a periodic basis, and may be increased, taking into
account factors such as the time commitment of the role and market levels
in companies of comparable size and complexity.

Flexibility is retained to exceed current fee levels if it is necessary to do so
in order to appoint a new Chairman or Non-Executive Director of an
appropriate calibre.

Necessary expenses incurred undertaking Company business will be
reimbursed so that the Chairman and Non-Executive Directors are not
worse off, on a net of tax basis, for fulfilling Company duties.

No other benefits or remuneration are provided to the Chairman or
Non-Executive Directors.

Fee levels for current incumbents for the 2016 financial year are as follows:

• Non-Executive Chairman: £300,000;

• Non-Executive Director base fee: £60,000;

• supplementary fee for Deputy Chairman and Senior Independent Director

(SID) role: £25,000; and

• supplementary fee for Chair of the Audit, Remuneration and Safety

Committees: £15,000, and Finance Committee Chair: £10,000.

ANNUAL REPORT ON REMUNERATION
Who is on the Company’s Remuneration Committee?
As at 30 September 2015, the members of the Committee were:
Charles Gurassa (Chair), François Rubichon and John Browett.
David Bennett stepped down from the Committee on 1 October
2014 and Professor Rigas Doganis stepped down from the
Committee on 1 December 2014 following their retirement from
the Board. The responsibilities of the Committee are set out in
the Corporate Governance section of the Annual Report on
page 53.

The Chief Executive attends meetings by invitation and assists
the Committee in its deliberations as appropriate. The
Committee also receives assistance from the Group People
Director and the Group Head of Reward. The Group Company
Secretary acts as secretary to the Committee. No Directors are
involved in deciding their own remuneration.

The Remuneration Committee is advised by Hewitt New
Bridge Street (HNBS), (an AON company). A sister company
in the AON Group also provides pension and flexible benefits
administration services to the company. HNBS was appointed
by the Committee in 2004. HNBS advises the Committee on
developments in executive pay and on the operation of easyJet’s
incentive plans. Total fees paid to HNBS in respect of services to
the Committee during the 2015 financial year were £133,000.
HNBS is a signatory to the Remuneration Consultants’ Group
Code of Conduct. The Committee has reviewed the operating
processes in place at HNBS and is satisfied that the advice it
receives is independent and objective.

How has the new CFO’s package been set?
Andrew Findlay’s package is in line with that applicable to the
previous CFO, and is in line with our policy, other than salary on
appointment which has been set at £425,000 (with the previous
CFO’s salary set at £430,800 at the time of his departure).

In addition, certain performance related buy-out arrangements
have been agreed to compensate Andrew Findlay for bonus and
long-term incentive awards forfeited from his previous employer.
The approach to the buy-out is in line with the Company’s policy
on buy-out arrangements (and the expectations of institutional
investors where a buy-out takes place). The payment was
performance related in that it has been calculated so as to
replicate the likely value and time horizons associated with
the awards at the previous employer.

The buy-out comprised:
1. A cash payment of equivalent value to the bonus he would
have been eligible to receive from his previous employer in
relation to the year of his departure. The payment was
performance related in that the amount of the bonus was
determined based on his former company’s reported
disclosures of how the company performed against its bonus
targets. The cash payment, amounting to £311,837, was paid in
October 2015. The Committee was comfortable with providing
this form and level of compensation since it replicated the
amount of value forfeit in connection with joining easyJet.

Strategic reportGovernanceAccountswww.easyJet.comDirectors’ remuneration report continued

2. A performance adjusted award of 22,762 easyJet shares will
be made to compensate for the forfeiture of the long-term
incentive award he received in August 2013 from his previous
employer. Since around two-thirds of the vesting period for
this award had already run its course, the Committee assessed
the extent to which the performance targets were likely to
be met (based on current market forecasts) in respect of the
shares comprising two-thirds of the award and converted this
number of shares into an equivalent value of easyJet shares
on joining. These will vest, subject to continued employment
with easyJet, on 7 August 2016, so as to mirror the original
time horizon of the award. A further award of 14,625 easyJet
shares relating to the forfeiture of the August 2013 award was
also granted. This award was calculated based on the value of
one-third of the award at the time of joining easyJet, but these
shares will only vest to the extent that the performance
targets set for the 2013 easyJet LTIP award are met and
continued employment to 17 December 2016. The Committee
was comfortable with providing this form and level of
compensation since it replicated its assessment of the value
forfeit and also, in part, switched into easyJet performance
on a pro-rata basis for part of the award.

3. An award of 39,923 easyJet shares will be made to

compensate for the forfeiture of the award granted to the
individual in August 2014. This award comprised an exchange
of the maximum number of shares that could vest under his
previous employers’ award which were then converted to
easyJet shares on joining. These shares will only vest based on
the extent to which the performance targets applying to the
2014 easyJet LTIP award are met and the individual remaining
in employment until 19 December 2017, being the ordinary
vesting date for the easyJet award and later than the vesting
date of the original award at his former employer. The
Committee was comfortable with providing this form of
compensation given the performance period at the individual’s
previous employer for this award had only recently
commenced and so switching to an equivalent value in
performance related easyJet shares resulted in alignment
being achieved with the wider executive team at easyJet.

Each of the replacement share awards detailed above will be
subject to easyJet’s shareholding guidelines whereby Andrew
Findlay will be required to retain at least half of the (after tax)
number of shares exercised from the awards until he has built
a shareholding that, when aggregated with his other easyJet
shareholdings, is of equivalent value to 175% of salary.

How will the remuneration policy be applied for the 2016
financial year?
What are the Executive Directors’ current salaries?

The current and proposed salaries of the Executive Directors are:

What bonus will be awarded in respect of performance in the
2016 financial year?

The maximum bonus opportunity remains at 200% of salary for
the Chief Executive and at 175% for the Chief Financial Officer.
The measures have been selected to reflect a range of financial
and operational goals that support the key strategic objectives
of the Company.

The performance measures and weightings will be as follows:

Measure
Profit before tax
On-time performance
Customer satisfaction
Operating costs (excluding fuel)
per seat at constant currency
Departmental objectives

As a percentage of maximum
bonus opportunity

CEO
70%
10%
10%

10%
–

CFO
60%
10%
10%

10%
10%

The proposed target levels for the 2016 financial year have been
set to be challenging relative to the business plan.

The Committee is comfortable that the bonus targets for both
Executive Directors are appropriately demanding in light of their
respective bonus opportunities.

The targets themselves, as they relate to the 2016 financial year,
are commercially sensitive. However, retrospective disclosure of
the targets and performance against them will be provided in
next year’s remuneration report unless they remain commercially
sensitive. The safety of our customers and people underpins
all of the operational activities of the Group and the bonus plan
includes a provision that enables the Remuneration Committee
to scale back the bonus earned in the event that there is a
safety event that occurs that it considers warrants the use of
such discretion.

How will the LTIP be operated in relation to the 2016 financial year
awards?

The 2015 financial year was the last time that LTIP awards were
made via a combination of Performance and Matching Share
Awards. Matching Share Awards will no longer operate from
the 2016 financial year onwards and LTIP awards will be made
as Performance Shares only.

The award levels for the Executive Directors in the 2016 financial
year will be 250% of salary for the Chief Executive and 200% of
salary for the Chief Financial Officer.

The 2016 financial year LTIP awards will be subject to the
following performance conditions:

1 January 2015
or on
appointment
to the Board
salary
£698,600
£425,000

1 January 2016
salary
£705,600
£425,000

ROCE (70%
of total award)

Change
1%
0%

CEO
CFO(1)

Below
threshold
(0% vesting)

Threshold
(25% vesting)

On-target
(50%
vesting)

Maximum
(100%
vesting)

<15%

15%

18%

20%

Below
threshold
(0% vesting)

Threshold
(25% vesting)

Maximum
(100%
vesting)
Upper
quartile

TSR (30% of total award)