Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Q1 2004 Earnings Presentation
21 slides from Norwegian Air Shuttle Asa's earnings presentation, May 27, 2004
Slide 1: Norwegian Air Shuttle ASA (NAS) Q1 2004 Presentation
Norwegian Air Shuttle ASA (NAS) Q1 2004 Presentation Oslo – Frankfurt – London 25-27 May 2004
Slide 2: Q1 results in line with expectations, and a strong financial position maintained
● Q1 results in line with expectations, and a strong financial position maintained ● Established as Norway’s low-fare carrier ● Consolidating our position and achieving profitability in second half 2004 2
Slide 3: Q1 results in line with expectations, and a strong financial position maintained
● Q1 results in line with expectations, and a strong financial position maintained ● Established as Norway’s low-fare carrier ● Consolidating our position and achieving profitability in second half 2004 3
Slide 4: Turnover up 55% from Q1 2003
Turnover up 55% from Q1 2003 ● 236 Mill NOK in turnover in Q1 2004, compared to 153 in Q1 2003 ● 90% increase in passenger volume from Q1 2003. (400.000 passengers in Q1 2004, 210.000 in Q1 2003) ● Growth driven by increased production ● Rapid expansion accomplished with continuously higher load-fac
Slide 5: EBITDA level as expected
EBITDA level as expected ● EBITDA result of -49.9 MNOK in Q1 2004, versus -34 MNOK in Q1 2003 ● EBITDA result includes 6 MNOK in “one offs” ● “One offs” relates to: – 2.5 MNOK in additional costs for redelivery of leased Fokker F-50 planes – 3.5 MNOK in additional costs on pre-sold tickets due to in
Slide 6: Increase in cash holdings
Increase in cash holdings ● Positive cash flow from operations of 12.2 MNOK, driven by high pre-sales levels for spring / summer- travel ● Sold off 3 financially leased Fokker F-50 planes and made down payment of related debt Cash Flow statement First Quarter 2003 2004 2003 Operating activities 12 2
Slide 7: Strong financial position
Strong financial position ● Total assets of 560 MNOK ● Cash position of 324 MNOK. IPO proceeds constitutes 235 MNOK ● Equity-share of 40% First Quarter FIXED ASSETS 2004 2003 EQUITY 2004 2003 Intangible assets 78 844 30 254 Tangible fixed assets 26 612 57 743 Paid-in euity 263 532 71 157 Financial f
Slide 8: Q1 results in line with expectations, and a strong financial position maintained
● Q1 results in line with expectations, and a strong financial position maintained ● Established as Norway’s low-fare carrier ● Consolidating our position and achieving profitability in second half 2004 8
Slide 9: Expansion concluded
Expansion concluded Sept. 02 Sept. 03 Sept. 04 Fleet 6 8 11 83% 2345 (1) 205% Airborne hours (ABH) 769 1 311 Avail. Seat Kilom. (ASK) (mill) 57 119 243 (1) 326 % Manyears 254 300 400 57 % Number of passangers 65 879 129 298 Growth share 02-03 Loadfactor (RPK/ASK) 51 % 64 % Growth share 03-04 Share o
Slide 10: 33 routes by end June 2004
norwegian fi t-e 33 routes by end J une 2004 10
Slide 11: Low cost position established
Low cost position established Cost / ASK versus average sector length (1) 2000 KLM 1800 1600 British Airways 1400 1200 lberia Lufthansa Air France SAS km 1000 800 Easyjet (2003) Ryanair Braathens Q402 600 (2003) Q304 (2003*) Norwegian** 400 200 0 0 20 40 60 80 100 120 øre (1) Source: Goodbody Stockb
Slide 12: Increasing efficiency further
Increasing efficiency further Hours 802 8,0 ● ABH per pilot is expected to 702 7,0 602 increase from 500 to 700 during 6,0 502 5,0 2004 402 4,0 ● ABH per plane per day is 302 3,0 expected to increase from 5.5 to 202 2,0 more than 7 hours during 2004 102 1,0 2 - Q1 04 Q2 04 Q3 04 Q4 04 Pilot utilizat
Slide 13: 47 % increase in load factor
47 % increase in load factor Mill RPK / ASK 400 70 % 47 % 350 60 % 300 50 % 250 40 % 200 30 % 150 20 % 100 50 10 % 0 0% Q1 03 Q1 04 load factor RPK ASK 13
Slide 14: Q1 results in line with expectations, and a strong financial position maintained
● Q1 results in line with expectations, and a strong financial position maintained ● Established as Norway’s low-fare carrier ● Consolidating our position and achieving profitability in second half 2004 14
Slide 15: Focus is on consolidating our domestic market position
Focus is on consolidating our domestic market position ● Optimize domestic production High programme with current fleet Market attractiveness ● Improve product / timetable in at e ”peak-period” on key domestic id n sol i t i on routes Co po s e t a rk ● Focus on maintaining market m shares and manag
Slide 16: Seasonal variations expected to positively effect load-factors
Seasonal variations expected to positively effect load-factors Total PAX volume OSL 2003/2004 1 300 000 1 100 000 900 000 700 000 500 000 300 000 ri l ai li r r s st r ar er ni r ua be be Ju be ar gu Ap M Ju ob nu br M em em em Au Ja kt Fe O pt ov es Se N D International Domestic 2004 16
Slide 17: Lower prices stimulates demand
Lower prices stimulates demand ● Norwegian commenced Oslo – Arlanda on September 1, 2003 Stockholm 2002 vs. 2003 PAX 80 000 70 000 60 000 50 000 40 000 r r r li ni r ril r er ai t s be ua a Ju be be s ar Ju Ap nu M gu ob m br m em M Ja Au kt ve Fe se O pt No De Se Stockholm 2002 Stockholm 2003 17
Slide 18: Our route portfolio matures
Our route portfolio matures ● Load-factor development on 4 main domestic routes since start-up (Stavanger, Bergen, Trondheim and Tromsø) Main routs 80 % 70 % 60 % 50 % 40 % 30 % 20 % Sep 02 Sep 03 Apr 04 18
Slide 19: Aggressive pricing hits yield
Aggressive pricing hits yield ● Yield levels will continue to fall as a consequence of longer flights in 2004: the average sector length is expected to increase from 60 min in January to more than 70 min for the full year ● Domestic price campaigns impacted yield levels in Q1. Continued price campai
Slide 20: 2004 expected to be somewhat better than 2003
2004 expected to be somewhat better than 2003 ● A continued price pressure domestically, will lead to an EBITDA level for Q2 which is somewhat better than Q1 ● Higher passenger volumes and continued competitor-driven price pressure is expected for Q3 & Q4 ● If the current price pressure prevails for
Slide 21: Summary
Summary: ● Q1 results in line with expectations, and a strong financial position maintained ● Established as Norway’s low-fare carrier ● Consolidating our position and achieving profitability in second half 2004
Norwegian Air Shuttle — Q1 2004 Earnings Presentation on 6ix