Norwegian Air Shuttle Asa · OSL:NAS

Norwegian Air Shuttle Asa — Q4 2013 Earnings Presentation

24 slides from Norwegian Air Shuttle Asa's earnings presentation, 2014

  1. Slide 1: Norwegian Air Shuttle ASA Q4 2013 Presentation

    Norwegian Air Shuttle ASA Q4 2013 Presentation Europe’s best low-cost airline

  2. Slide 2: Double digit revenue growth in Q4

    Europe’s best low-cost airline Double digit revenue growth in Q4 • Group revenues of MNOK 3,786 in Q4 2013 + 22 % 3 500 3 000 2 500 Domestic Revenue (MNOK) 2 000 International Revenue (MNOK) Total Revenues (MNOK) 1 500 1 000 MNOK 500 0 Q4 10 Q4 11 Q4 12 Q4 13 Revenues 2 146 2 536 3 106 3 786 Domes t

  3. Slide 3: Q4 influenced by price stimulation & currency

    Europe’s best low-cost airline Q4 influenced by price stimulation & currency Q4 13 Q4 12 EBITDAR MNOK 299 296 EBITDA MNOK -41 53 EBIT MNOK -183 -52 Pre-tax profit (EBT) MNOK -283 23 Net profit MNOK -197 24 EBITDAR development Q4 EBT development Q4 300 299 50 296 23 -27 -50 216 200 214 -150 -188 MNOK

  4. Slide 4: Revenue growth of 2.7 billion in 2013

    Europe’s best low-cost airline Revenue growth of 2.7 billion in 2013 • Annual turnover MNOK 15,580 16 000 + 21 % 14 000 12 000 10 000 Domestic Revenue (MNOK) 8 000 International Revenue (MNOK) Total Revenues (MNOK) 6 000 4 000 MNOK 2 000 0 2010 2011 2012 2013 Revenues 8 598 10 532 12 859 15 580 Dome

  5. Slide 5: Pre-tax profit of MNOK 437 in 2013

    Europe’s best low-cost airline Pre-tax profit of MNOK 437 in 2013 2013 2012 EBITDAR MNOK 2 784 1 822 EBITDA MNOK 1 500 789 EBIT MNOK 970 403 Pre-tax profit (EBT) MNOK 437 623 Net profit MNOK 319 457 EBITDAR development (full year) EBT development (full year) 2 800 2 784 623 600 2 400 500 2 000 1 822

  6. Slide 6: 2013 underlying EBT result MNOK 731

    Europe’s best low-cost airline 2013 underlying EBT result MNOK 731 • Reversal of pension provisions (Group defined benefit pension plan ended) • Estimated long-haul earnings effect MNOK 216 – Q2 low utilization & staff training – Extra costs due to wet-lease Q2, Q3 & Q4 – Irregularity costs Q3 & Q4

  7. Slide 7: Ancillary revenue remains a significant contributor

    Europe’s best low-cost airline Ancillary revenue remains a significant contributor • Ancillary revenue comprises 11 % of 2013 revenues (target 15%) • NOK 87 per scheduled passenger (an increase of 6 % from last year) 7

  8. Slide 8: 2013 Positive Free Cash Flow despite 2.1 billion investments

    Europe’s best low-cost airline 2013 Positive Free Cash Flow despite 2.1 billion investments Cash flows from operations in Q4 13 MNOK 264 (MNOK 447) Cash flows from investing activities in Q4 13 MNOK -965 (MNOK -1545) Cash flows from financing activities in Q4 13 MNOK 563 (MNOK 1093) Cash and cash eq

  9. Slide 9: Equity improved by MNOK compared to last year

    Europe’s best low-cost airline Equity improved by MNOK 326 compared to last year • Total balance of NOK 14.8 billion • Net interest bearing debt NOK 4.3 billion (3.0) • Equity of NOK 2.7 billion at the end of the fourth quarter • Group equity ratio of 19 % (20 %) 14 000 12 000 Long term liabilities

  10. Slide 10: Long-term financing 2014 on track

    Europe’s best low-cost airline Long-term financing 2014 on track • Planned external financing 2014: MNOK +/- 3,000 – Committed / arranged financing: MNOK 1,700 – EETC, JOLCO & guaranteed export financing • Year-end 2013 PDP balance: MNOK 2,550 – 94 % paid with own funds • Year-end 2014 debt increase

  11. Slide 11: Traffic growth of 32% in 2013

    Europe’s best low-cost airline Traffic growth of 32% in 2013 • Stable load despite high growth • Average flying distance up 11 % 35 000 + 32 % 1 ASK Load Factor 30 000 80.1 % 78.0 % 78.6 % 78.7 % 78.2 % 79.3 % 78.5 % 78.3 % 77.4 % 0.8 25 000 66.8 % 62.5 % 0.6 20 000 15 000 0.4 Available Seat KM (ASK

  12. Slide 12: 20.7 million passengers in 2013

    Europe’s best low-cost airline 20.7 million passengers in 2013 • An increase of 3,000,000 passengers +17 % 20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 Passengers (million) 4.0 2.0 0.0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Pax (mill) 1.2 2.1 3.3 5.1 6.9 9.1 10.8 13.0 15.7 17.7 20.7 12

  13. Slide 13: Growing market share in all markets

    Strong demand: Europe’s best low-cost airline Growing market share in all markets • Business model works – lower costs and prices attract volume + 243,000 pax 40 % 35 % 30 % + 247,000 pax 25 % + 101,000 pax 20 % + 113,000 pax 15 % + 221,000 pax + 202,000 pax 10 % 5% 0% Marketshare Marketshare Market

  14. Slide 14: Lowest cost always wins

    Europe’s best low-cost airline Lowest cost always wins Sources: Norwegian Q4 2013 report (period displayed January 2013 – December 2014), SAS Group Year-end report November 2012 - October 2013 (period displayed November 2012 – October 2013, Scandinavian Airlines (SK) only), Finnair Plc. Annual Repor

  15. Slide 15: Unit cost ex fuel down 8% in Q4

    Europe’s best low-cost airline Unit cost ex fuel down 8% in Q4 • Unit cost including fuel down 6 % 0.50 Fuel share of CASK 0.45 -6% CASK excl fuel Operating cost EBITDA level per ASK (CASK) 0.11 0.40 0.15 0.15 0.35 0.14 -8% 0.36 0.30 0.33 0.30 0.28 0.25 Q4 10 Q4 11 Q4 12 Q4 13 Cost per ASK (CASK) (N

  16. Slide 16: Unit cost ex fuel down 7% in 2013

    Europe’s best low-cost airline Unit cost ex fuel down 7% in 2013 • Unit cost including fuel down 6 % 0.60 CASK excl fuel Fuel share of CASK 0.55 0.09 0.50 0.11 Operating cost EBITDA level per ASK (CASK) 0.15 0.13 0.19 0.45 0.10 0.40 0.12 0.14 0.14 0.13 0.35 0.44 0.49 0.41 0.40 0.38 0.37 0.30 0.34 0.

  17. Slide 17: Aiming for FY CASK NOK 0.25 excluding fuel

    Europe’s best low-cost airline Aiming for FY CASK NOK 0.25 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 “fre

  18. Slide 18: Traffic patterns determine the location of bases

    Europe’s best low-cost airline Traffic patterns determine the location of bases TRD TRONDHEIM TRD OSL HEL BGO ARN HELSINKI OSL (3W) ARN (3W) (2W) ARN (1D) BGO OSL HEL BERGEN OSLO (2D) STOCKHOLM (4W) (2D) ARN TRF RYG GOT SVG (4W) GOT CPH AAL STAVANGER (1D) CPH COPENHAGEN (2D) CPH HAM HAM (4W) WAW HAM

  19. Slide 19: Growing share of non-Nordic routes

    Europe’s best low-cost airline Growing share of non-Nordic routes LAX HAM JFK SXF WAW LGW CGN FLL MUC BUD NCE SPU BCN DBV FCO CFU MAD PMI LCA IBZ ALC FAO CTA AGP JTR ACE FUE TFS LPA

  20. Slide 20: Increasing the Dreamliner order by another four 787-9

    Europe’s best low-cost airline Increasing the Dreamliner order by another four 787-9 787-8 in operation 787-8 on firm order 787-9 on firm order

  21. Slide 21: Current committed fleet plan

    Europe’s best low-cost airline Current committed fleet plan Deliveries 787-8 Deliveries 737-800 Re-deliveries 737-300 Re-deliveries 737-800 2014: +1,164 seats +2,604 seats -740 seats -558 seats 21

  22. Slide 22: Expectations for 2014 (Group)

    Europe’s best low-cost airline Expectations for 2014 (Group) • Business environment – Economic uncertainty in parts of Europe – Seasonal fluctuations – Yield pressure from capacity investment – Increased competitive pressure in the Nordic region • Production – The company expects a production growth

  23. Slide 23: Norwegian offers 413 scheduled routes to 128 destinations

    From bases in NORWAY SWEDEN From bases in DENMARK Norwegian offers 413 FINLAND scheduled routes to 128 destinations in 38 countries From bases in the USA & THAILAND From bases in SPAIN From the UK base

  24. Slide 24: Norwegian Air Shuttle ASA contact details

    Europe’s best low-cost airline Norwegian Air Shuttle ASA Mailing address P.O. Box 113 No – 1330 Fornebu Telephone Telefax +47 67 59 30 00 +47 67 59 30 01 Organization number NO 965 920 358 MVA Visiting address Oksenøyveien 3 Internet www.norwegian.com 24

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