Norwegian Air Shuttle Asa · OSL:NAS

Norwegian Air Shuttle Asa — Q1 2013 Earnings Presentation

20 slides from Norwegian Air Shuttle Asa's earnings presentation, Apr 18, 2013

  1. Slide 1: Norwegian Air Shuttle ASA Q1 2013 Presentation

    Norwegian Air Shuttle ASA Q1 2013 Presentation April 18th 2013 CEO Bjørn Kjos 1

  2. Slide 2: Double digit revenue growth in Q1

    Double digit revenue growth in Q1 • Group revenues of MNOK 2,904 in Q1 2013 3 000 + 23 % 2 500 2 000 Domestic Revenue (MNOK) International Revenue (MNOK) 1 500 Total Revenues (MNOK) 1 000 500 MNOK 0 Q1 10 Q1 11 Q1 12 Q1 13 Revenues 1 592 1 895 2 360 2 904 Domes ti c revenue 709 780 872 1 043 % y.o.y

  3. Slide 3: Pre-tax profit improved by 238 million in Q1

    Pre-tax profit improved by 238 million in Q1 EBITDAR MNOK 438 -252 EBITDA MNOK 189 -497 EBIT MNOK 69 -574 Pre-tax profit (EBT) MNOK -160 -398 Net profit MNOK -117 -285 EBITDAR development Q1 EBT development Q1 500 100 400 438 300 -100 200 -160 MNOK MNOK 100 0 -275 -23 -300 -100 -406 -398 -200 -230 -

  4. Slide 4: Underlying EBT improvement of MNOK 165 in Q1

    Underlying EBT improvement of MNOK 165 in Q1 4

  5. Slide 5: Ancillary revenue remains a significant contributor

    Ancillary revenue remains a significant contributor • Ancillary revenue comprises 12 % of Q1 revenues • NOK 88 per scheduled passenger (an increase of 5 % from last year) 5

  6. Slide 6: Cash & cash equivalents of NOK 2.4 billion

    Cash & cash equivalents of NOK 2.4 billion Cash flows from operations in Q1 13 MNOK 962 (MNOK 544) Cash flows from investing activities in Q1 13 MNOK 158 (MNOK -178) Cash flows from financing activities in Q1 13 MNOK -407 (MNOK 15) Cash and cash equivalents at period-end MNOK 2 445 (MNOK 1487) Conde

  7. Slide 7: Equity improved by MNOK 643 compared to last year

    Equity improved by MNOK 643 compared to last year • Total balance of NOK 13.2 billion • Net interest bearing debt NOK 3.0 billion • Equity of NOK 2.3 billion at the end of the first quarter • Group equity ratio of 17 % (17 %) 12 000 Long term Non-current liabilities assets 4,736 10 000 6,131 3 207 8

  8. Slide 8: Traffic growth of 21% in Q1

    Traffic growth of 19 % in Q1 • Unit revenue (RASK) up 2 % • Average flying distance up 11 % + 21 % 100 % ASK Load Factor 6 000 77 % 77 % 77 % 76 % 75 % 75 % 75 % 74 % 80 % 5 000 68 % 65 % 4 000 60 % 3 000 40 % Available Seat KM (ASK) 2 000 20 % Load Factor 1 000 0 0% Q1 04 Q1 05 Q1 06 Q1 07 Q1 08 Q1

  9. Slide 9: 3.9 million passengers in Q1

    3.9 million passengers in Q1 • An increase of 280,000 passengers 4.00 + 8% 3.00 2.00 Passengers (million) 1.00 0.00 Q1 04 Q1 05 Q1 06 Q1 07 Q1 08 Q1 09 Q1 10 Q1 11 Q1 12 Q1 13 Pax (mill) 0.4 0.6 1.0 1.3 2.0 2.1 2.7 3.1 3.6 3.9 Slide: 9

  10. Slide 10: Continued strong international growth in Q1

    Continued strong international growth in Q1 + 4,000 pax 40 % 35 % 30 % 25 % + 10,000 pax 20 % + 104,000 pax 15 % + 170,000 pax + 39,000 pax 10 % + 21,000 pax 5% 0% Marketshare Marketshare Marketshare Marketshare Marketshare Int'l Marketshare Int'l Oslo Airport Stockholm Airport Copenhagen Airport He

  11. Slide 11: Unit cost down 8% in Q1

    Unit cost down 8 % in Q1 • Unit cost including & excluding fuel down 8 % 0.55 Fuel share of CASK 0.50 -8% CASK excl fuel Operating cost EBITDA level per ASK (CASK) 0.11 0.45 0.12 0.15 0.40 0.13 -8% 0.35 0.40 0.37 0.36 0.33 0.30 Q1 10 Q1 11 Q1 12 Q1 13 Cost per ASK (CASK) (NOK) 0.51 0.50 0.50 0.47 CA

  12. Slide 12: Aiming for the cost “Comfort Zone”

    Aiming for the cost “Comfort Zone” Sources: SAS Group Q3-2012 report & Annual Report 2011 (cost displayed October 2011 – September 2012), Finnair Plc. Annual Report 2012, Ryanair Annual Report 2012, easyJet Annual Report 2012, Air Berlin Annual Report 2012, Vueling Results Presentation FY’12 and Q4’

  13. Slide 13: Longer distance reduces unit cost

    Longer distance reduces unit cost Operating cost EBITDA level per ASK (CASK) (NOK) Average stage length (KM) Sources: SAS Group Q3-2012 report & Annual Report 2011 (cost displayed October 2011 – September 2012), Finnair Plc. Annual Report 2012, Ryanair Annual Report 2012, easyJet Annual Report 2012,

  14. Slide 14: Reaching the aim of FY CASK NOK 0.30 excluding fuel

    Reaching the aim of FY CASK NOK 0.30 excluding fuel Scale economies New more efficient aircraft Growth adapted to int’l markets • Uniform fleet of Boeing 737-800s • Flying cost of 737-800 lower than 737-300 • Cost level adapted to local markets • Overheads • 737-800 has 38 “free” seats • Outsourcing

  15. Slide 15: Offering a better product at lower cost

    Offering a better product at lower cost

  16. Slide 16: Trial increases customer perception

    Trial increases customer perception • London - Mediterranean routes with 83% load – April to date (two first weeks) – Entirely new production Comment from CNN and «Quest means business» during low cost airline testing (Apr.2013) The data is based on the response from 21,491 respondents over the past

  17. Slide 17: Current committed fleet plan

    Current committed fleet plan • 14 new 737-800 deliveries in 2013 • 3 new 787-8 Dreamliner expected in 2013 17

  18. Slide 18: Expectations for 2013 (Group)

    Expectations for 2013 (Group) • Business environment – Increased economic uncertainty in parts of Europe – Seasonal fluctuations – Continued but eased yield pressure • Production – The company expects a production growth (ASK) in excess of 25% • Increasing the fleet by adding 737-800’s • Utilization

  19. Slide 19: Norwegian offers scheduled routes to destinations in 37 countries

    Norwegian offers 367 scheduled routes to 121 destinations in 37 countries.

  20. Slide 20: Norwegian Air Shuttle ASA contact details

    Norwegian Air Shuttle ASA Mailing address P.O. Box 113 Telephone +47 67 59 3000 Organization number NO 965 920 358 MVA Nomgiss0lFomebu Telefax +47 67 59 3001 Visiting address Oksengyveien 3 Internet www.norwegian.com

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