Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Q1 2005 Earnings Presentation
14 slides from Norwegian Air Shuttle Asa's earnings presentation, May 12, 2005
Slide 1: Norwegian Air Shuttle ASA (NAS) Q1 2005
Norwegian Air Shuttle ASA (NAS) Q1 2005 May 12, 2005 Oslo 1
Slide 2: Extensive Route Portfolio
Extensive Route Portfolio norwegian ix
Slide 3: Fast growing LCC
Fast growing LCC Passengers Rank by Rank Carrier (000) Change growth 1 Soutwest Airline 70 909 8,0 % 17 2 Ryanair 27 594 19,3 % 12 3 Easyjet 24 300 19,7 % 11 4 AirTran Airways 13 170 13,0 % 14 5 Air Berlin 12 037 26,2 % 8 6 JetBlue Airways 11 783 30,7 % 7 7 Virgin Blue 9 537 -5,2 % 20 8 Gol 9 204 25
Slide 4: Relevant Business Product
Relevant Business Product Route: Oslo - Trondheim 14 Number of departures Business demand 12 Q1 05 10 8 6 Q1 03 0,9 0,8 0,7 0,6 0,5 0,4 Cost per ASK Low prices 4
Slide 5: Increasing cabin factor
Increasing cabin factor ● 54 % production increase from Q104 to Q105 ● Cabin factor increased to 68 % in Q105 (65% in Q104) ● Strong performance, both domestic and international, continued in April with a cabin factor of 72 % Cabin Factor 100 % 80 % 569 60 % 370 40 % 208 20 % 0% Q1 03 Q1 / 04 Q1 / 0
Slide 6: Growing market shares
Growing market shares ● Over 30 % market share on key domestic routes ● Positive response on improved time tables for Bergen and Trondheim continued in Q105 ● Low prices continues to stimulate demand 35 % 33 % 33 % 30 % 30 % 30 % 30 % 28 % 27 % 27 % 26 % 26 % 25 % 24 % 23 % 22 % 21 % 20 % 20 % 18 %
Slide 7: Improved margins
Improved margins ● 319 MNOK in turnover in Q1 2005, compared to 236 MNOK in Q1 2004 ● EBITDA margin of -14 % in Q1 2005, compared to -21 % in Q1 2004 ● High fuel prices impacted results MNOK Revenue development 350 300 250 200 150 100 Q1 03 Q1 04 Q1 05 EBITDA MNOK -34 -50 -44 EBITDA margin % -22% -2
Slide 8: Strong sales
Strong sales ● Cash-balance of 186 MNOK, prepaid tickets of 251,7 MNOK ● Equity-share of 22% ● Strong sales in Q1 continued in April CASH FLOW (MNOK) From: Q1/05 Q1/04 2004 Operation activities 1 832 12 208 -90 847 Investments -11 417 18 814 -11 964 Financial activities -20 652 -16 069 Net change -9
Slide 9: Costs on track
Costs on track ● Average unit costs of 0.64 NOK in Q1 2005, down 17 % from Q1 2004 (0.77 NOK) ● A period with high fuel prices, heavy maintenance (C-checks) and training of new crew members ● Higher crew and fleet utilization from April onwards and lower sourcing & distribution costs, will bring cos
Slide 10: Positive pricing climate
Positive pricing climate Consumer price index, domestic air-fares 170 160 150 140 130 120 110 100 3 competitors 2 competitors monopoly 2 competitors 90 se 99 se 00 se 01 se 2 se 03 se 04 9 0 ju 1 ju 2 3 ju 4 5 de 9 m 9 de 0 m 0 de 1 m 1 de 2 m 2 de 3 m 3 de 4 m 4 0 .9 .0 .0 .0 .0 .0 .0 0 9 9 0 0 0 0
Slide 11: Yield level maintained
Yield level maintained ● Yield levels influenced by longer sector lengths ● Positive effects from higher demand and improved revenue management practice ● Yield levels from Q404 maintained during period ● Positive price development continued in April Yield (Revenue/RPK) NOK 1,20 1,00 0,80 0,60 0,40
Slide 12: Continued expansion
Continued expansion ● Expected increase in production of 40-45 % (ASK, Q over Q) ● Mainly from international expansion ASK (mill) 1200 1000 800 600 400 200 0 Q1 04-05 Q2 04-05 Q3 04-05 Q4 04-05 2004 Expected increase 12
Slide 13: Expectations maintained
Expectations maintained Expectations for remaining year 2005: Business environment : ● Continued market increase from low prices √ ● Price competition at current levels √ ● Fuel prices at current levels 2 Expected results: ● Continued expansion expected to strengthen market position and achieve cost
Slide 14: On Track
On Track: - Extensive Route Portfolio - Fast growing LCC - Relevant Business Product - Increasing cabin factor - Growing market shares - Improved margins - Strong sales - Costs on track - Positive pricing climate - Yield level maintained - Continued expansion 14 Foto: Thomas Lorentzen
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