Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Q4 2023 Earnings Presentation
22 slides from Norwegian Air Shuttle Asa's earnings presentation, Feb 16, 2024
Slide 1: Presentation of fourth quarter 2023
Presentation of fourth quarter 2023 16 February 2024
Slide 2: Highlights
Highlights 2023 operating result (EBIT) NOK 2,232 million Number of passengers – operating margin 9% – highest ever EBIT and EBIT-margin this quarter – Q4 EBIT NOK 328 million in low-season – liquidity position NOK 9.5 billion – positive quarterly cash flow – 2023 dividend provision of NOK 0.60 per
Slide 3: Reduced winter capacity supporting unit revenue
Reduced winter capacity supporting unit revenue 100 .0% Traffic – PAX per month, load factor and yield Seasonally lower demand 3,5 00 1.0 0 – reducing capacity to match demand 86.2% during winter 90. 0% 85.3% 84.1% 83.6% 83.1% 3,0 00 82.4% 0.90 77.7% 0.87 0.87 0.86 0.91 0.9 0 Getting customers to th
Slide 4: Strong booking momentum in 2024
Strong booking momentum in 2024 7-day rolling sales figures (abs) – All markets2) Successful New Year’s sales campaign 700 ,000 610 ,000,0 00 Diversified bookings across destinations and travel months 600 ,000 510 ,000,0 00 Above 1 million tickets sold 500 ,000 410 ,000,0 00 310 ,000,0 00 Campaign f
Slide 5: Key cost initiatives implemented in 2023
Key cost initiatives implemented in 2023 2023 cost level impacted by FX and inflation effects Key initiatives in 2023 NOK unit cost (CASK) excl. fuel On-time performance – 2 percentage points improvement from last year – key to minimise cost for crew, fuel, handling, ATC charges and EU261 6% -4% 7%
Slide 6: Market-leading operations is key for business travellers
Market-leading operations is key for business travellers Operational performance as one of Europe’s best airlines… …is key in driving corporate travel market share Cirium – European airlines OTP review for 2023 Corporate market revenue Q4 2019* Q4 2022 Q4 2023 Capturing corporate market share – Q4 c
Slide 7: Financial results for Q4 2023
Financial results for Q4 2023
Slide 8: Quarterly financial highlights
Quarterly financial highlights Revenues Unit revenue - total Passenger traffic (million RPK) 0.82 9,133 0.76 Unit revenue supported by improved yield and 0.64 load factor 5,656 6,019 – up 17% from Q4 last year Ancillary NOK 173 per pax – up from NOK 152 last year Q4 2022 Q3 2023 Q4 2023 Q4 2022 Q3 2
Slide 9: Q4 earnings – delivering profit in historically soft quarter
Q4 earnings – delivering profit in historically soft quarter Chng. Full year Full year NOK million Q4 2023 Q4 2022 (YoY) 2023 2022 Passenger revenue 4,582 3,779 Improved yield and load 20,617 15,198 Ancillary passenger revenue 816 697 3,700 2,870 Other revenue 519 493 1,223 802 Total operating reven
Slide 10: Robust balance sheet
Robust balance sheet 31 Dec. 30 Sep. Chng. NOK million 2023 2023 (QoQ) Intangible assets 2,162 2,125 Deferred tax asset Net interest-bearing debt Tangible assets 15,016 14,765 31 Dec. 30 Sep. Chng. Total non-current assets 17,506 17,596 NOK million 2023 2023 (QoQ) Receivables 3,306 4,305 -23% Holdba
Slide 11: Cash flow – improved liquidity position into winter
Cash flow – improved liquidity position into winter NOK million Opening balance (30 Sep. 2023) 9,391 Holdback at 16% – normalised level post pandemic – holdback down from 39% last year Operating activities Strong Q4 operating profit +938 Excess liquidity on deposits and Including purchase of money-m
Slide 12: The way forward
The way forward
Slide 13: Key cost initiatives for 2024 and beyond
Key cost initiatives for 2024 and beyond Operations Base structure and placement of aircraft On-time performance and regularity – continuously pushing improvements Ground handling and airports – new handling agreements at improved terms and negotiations to improve airport charges Heavy engine mainte
Slide 14: Continuous improvements through stable operations
Continuous improvements through stable operations Improved experience for all passengers Short-shipped bags (SS) per PAX Punctuality & regularity key for brand and loyalty – on-time performance most important driver of NPS – reduced cost for care and compensation (EU261) Baggage delivery – customers
Slide 15: Widerøe – acquisition of highly complementary airline
Widerøe – acquisition of highly complementary airline Widerøe transaction completed in January Offering travellers access to more destinations, Major operator of public service operation (PSO) routes with better connectivity and seamless end-to-end travel – fleet comprising 48 aircraft – 45 turbopro
Slide 16: Securing modern fleet for the long-term
Securing modern fleet for the long-term Securing fleet for summer 2024 Fleet increasing to appr. 90 aircraft for summer season – potential for additional aircraft delivery delays ahead of summer 100 Countering delivery delays by 737 NG lease extensions 10 30 – currently evaluating additional extensi
Slide 17: Committed to a sustainable future for aviation
Committed to a sustainable future for aviation Strong ESG commitment Committed to reducing carbon efficiency by 45% by 2030 Carbon Disclosure Project (CDP) – B score for 2023 – top marks for emission verification and risk disclosure Sustainable operations SkyBreathe – latest mobile technology for pi
Slide 18: Outlook
Outlook FY 2024 Q1 Q2 Q3 Q4 Capacity growth1) c. 12% c. 2% c. 19% c. 10% c. 16% FY 2023 FY 2024 Operating profit (EBIT)2) NOK 2.5 – 3.2 billion (excl. Widerøe) $ Unit cost (NOK) excl. fuel2) Flat vs. 2023 1) Available seat kilometres (ASK) vs. same period last year 2) Assuming current market rates f
Slide 19: Fly Norwegian
Fly Norwegian Book tickets at Norwegian.com
Slide 20: Appendix
Appendix
Slide 21: 20 largest shareholders as of 31 December 2023
20 largest shareholders as of 31 December 2023* Name Country Number of shares Per cent 1 Geveran Trading Company, Ltd. Cyprus 134,010,512 13.9 % 2 Sundt AS Norway 89,292,265 9.3 % 3 Folketrygdfondet Norway 46,873,605 4.9 % 4 Ballyfin Aviation Limited Ireland 31,472,703 3.3 % 5 Nordnet Bank AB. Norwa
Slide 22: Disclaimer
Disclaimer Certain statements included in this presentation contain forward-looking statements, such as statements of future expectations. Although the statements provided are based on the best reasonable assumptions of management of Norwegian Air Shuttle ASA (“Norwegian”), the statements are based
Norwegian Air Shuttle — Q4 2023 Earnings Presentation on 6ix