Norwegian Air Shuttle Asa · OSL:NAS

Norwegian Air Shuttle Asa — Q2 2005 Earnings Presentation

13 slides from Norwegian Air Shuttle Asa's earnings presentation, Aug 18, 2005

  1. Slide 1: Norwegian Air Shuttle ASA (NAS) Q2 2005

    Norwegian Air Shuttle ASA (NAS) Q2 2005 August 18, 2005 Oslo 1

  2. Slide 2: Profitable operation

    Profitable operation ● 531 MNOK in turnover in Q205, compared to 311 MNOK in Q204 ● EBITDA margin of + 6 %, - 12 % last year ● EBIT margin of + 4,4 % MNOK 600 Revenue development 500 400 300 200 100 Q2 03 Q2 04 Q2 05 EBITDA MNOK -12 -38 31 EBITDA margin % -6% -12% 6% 2

  3. Slide 3: Strong cabin factor

    Strong cabin factor ● 46 % production increase from Q204 to Q205 ● 78 % cabin factor in Q205, up from 67% in Q204 ● 91 % cabin factor in July – (87 % domestic & 94 % international) Cabin Factor 940 90 % 80 % 642 78 % 70 % 261 67 % 60 % 61 % 50 % Q2 03 Q2 04 Q2 / 05 Cabin Factor ASK (mill) PAX (000)

  4. Slide 4: Yield level maintained

    Yield level maintained ● Yield of NOK 0,73 in Q205, slightly up from Q204 (0,72) ● Yield levels affected by production program ● Upward momentum from positive pricing climate, improved timetable and effective revenue management %- change in Q2/05 vs. Q2/04 19 % 2% -2 % -5 % Short dom/Int Long domest

  5. Slide 5: Cost targets in sight

    Cost targets in sight ● Average unit costs of 0.53 NOK in Q2 2005 ● Achieved unit costs of 0.50 NOK, when adjusted for fuel price increase Q205 - Q204 ● Expected unit cost of 0.53-54 NOK for H205 Cost per ASK NOK/ASK 0,65 0,60 -7%* 0,55 0,50 0,45 0,40 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 2005 2006 Target T

  6. Slide 6: Increased fleet utilization

    Increased fleet utilization ● Aircraft utilization of 9.6 block hours per plane per day, up 26% from Q2 04 (7,6) Block hours / PlaneHours / day 26% 10 8 6 4 2 Q2 03 Q2 04 Q2 05 BH plane pr day 6

  7. Slide 7: Increased crew utilization

    Increased crew utilization ● Crew utilization of 761 block hours per crew per year, up 18 % from Q204 ● Pilot and CA utilization increased respectively with 13% and 21 % from Q204 Block Hours / crew Hours / year 800 18% 700 600 500 400 300 200 Q2 03 Q2 04 Q2 05 BH / crew 7

  8. Slide 8: Lower distribution costs

    Lower distribution costs ● Distribution costs per sold ticket of NOK 20, down 46% from Q204 (NOK 37) ● 75 % internet sale, up 8%-points from Q204 ● Initiative in cooperation with Amadeus is expected to bring costs even further down NOK 50 40 - 46 % 30 20 10 Q2 03 Q2 04 Q2 05 8

  9. Slide 9: Positive cash flow

    Positive cash flow ● Cash-balance of 233 MNOK ● Positive net change of 48 MNOK ● Prepaid tickets of 302 MNOK, receivables of 140 MNOK CASH FLOW (MNOK) 2nd quarter First half From: 2005 2004 2005 2004 2004 Operation activities 61 418 738 63 250 12 946 -90 847 Investments -13 559 -8 243 -24 980 10 571

  10. Slide 10: Sound pricing climate

    Sound pricing climate Consumer price index, domestic air-fares 170 160 Oil price 150 USD 67 140 Oil price < USD 20 130 120 110 100 3 comp 2 competitors monopoly 2 competitors 90 se 9 se 0 se 0 1 se 0 2 se 3 se 0 4 05 0 1 2 3 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 9 0 0 .0 .0 .0 .0

  11. Slide 11: Continued expansion

    Continued expansion ● Expected production increase versus 2004 going forward in 2nd half 05 and Q106, is in the magnitude of 40-45 % ● Mainly from international expansion ASK (mill) 1200 1000 800 600 400 200 0 Q1 05 Q2 05 Q3 04-05 Q4 04-05 Q1 05-06 Actual Expected increase 11

  12. Slide 12: Expectations maintained

    Expectations maintained Expected business environment : ● Continued market increase from low prices ● Price competition at current levels ● Fuel prices at current levels Expected results: ● Unit cost of 53-54 øre / ASK for H2 05 ● Positive operating earnings (EBITDA) for full year 2005 12

  13. Slide 13: Route map

    Faro ‘ (Algarve) Tromso Alta Harstad/Narvik o ) Kirkenes Bodo ) Trondheim Bergen 4 Stavanger Osio Stockholm London/Stansted( Kobeshavn. Hamburg Paris Berlin Wai < O Praha ®@ceneve e OKrakow Salzburg. 4 Montpellier ®orino Buda Nice. Nenezia Bi < : Pisa Alicante . Split ‘Murcia/San Javier . ‘Dubrovnic

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