Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — SEB Nordic Seminar 2019
18 slides from Norwegian Air Shuttle Asa's conference presentation, Jan 8, 2019
Slide 1: Norwegian Air Shuttle
Norwegian Air Shuttle SEB Nordic Seminar, 8th January 2019 CFO Geir Karlsen
Slide 2: Corporate strategy overview
Corporate strategy overview
Slide 3: Company overview
Company overview Norwegian Air Shuttle is the leading European low- cost airline founded by Bjørn Kjos in 1993. Norwegian 10,000 132 3.8 years has a leading position in the European short-haul EMPLOYEES NARROWBODY AND AVERAGE FLEET point-to-point market, with a particularly strong GLOBALLY 32 WIDEBO
Slide 4: Investment highlights
Investment highlights Leadership in Nordic 1 Leading low cost operator in the Nordics with c.28%¹ share of short haul market Low Cost Short Haul Highly Differentiated 2 Has disrupted the market and pioneered a new business model using modern aircraft technology Long Haul Proposition Disciplined Low
Slide 5: Key pillars of our corporate strategy 2018-2022
Key pillars of our corporate strategy 2018-2022 KEY FOCUS AREAS LONG TERM “We shall be the leading long haul low-cost airline • Reduce cost base VISION in Europe operating as the engine of global low- Competitive cost base • Sustainable unit cost position cost growth, with a very strong position in
Slide 6: Strategy 2018-2020: Maintain short haul within Europe, grow medium/long haul
Strategy 2018-2020: Maintain short haul within Europe, grow medium/long haul between Europe and the rest of the world & exploit new/underserved markets North America Asia Europe Core Within Core Europe Large cities in U.S. & Europe Core / Growth Mid-sized cities US & Europe / New markets Western/Cen
Slide 7: Competitive landscape
Competitive landscape
Slide 8: Competing for customer attention and market share on three fronts
Competing for customer attention and market share on three fronts European short haul Key threats • Less rivalry in Nordics, but potential for full entry from ULCCs • Intense rivalry rest of Europe from various carriers Main competition pressuring yield • Convergence: Both traditional LCCs and legac
Slide 9: Financials
Financials
Slide 10: Disciplined low cost operating model
Disciplined low cost operating model Relentless focus on low cost operating discipline across our network ➢ Low cost carrier state-of-mind Our Cost ➢ Cost concious culture Philisophy ➢ Nimble organisation ➢ Constant strive for improvements Our Achievments ➢ Unit costs excl. fuel in line with “best-i
Slide 11: Comparison of unit cost incl. depreciation
Comparison of unit cost incl. depreciation Sources: Based on official full-year 2017 annual reports •Foreign exchange rates used are equivalent to the daily average rates corresponding to the reporting periods and as stated by the Central Bank of Norway • Note: For some carriers the available financ
Slide 12: Sustainability as a business opportunity
Sustainability as a business opportunity
Slide 13: Youngest fleet among peers
Youngest fleet among peers Average fleet age Norwegian Frontier Airlines Aeroflot Wizz Air Spirit Airlines Etihad Qatar Emirates Turkish Airlines Vueling Easyjet Ryanair Virgin America Eurowings JetBlue Iberia SAS Finnair Flybe Group American Airlines Southwest Air France KLM Lufthansa British Airwa
Slide 14: Adding 21 new aircraft to own operations in 2019
Adding 21 new aircraft to own operations in 2019 Deliveries 787-9 Deliveries 737 MAX Re-delivery 737-800 2019: +1,690 seats +3,024 seats -186 seats 14
Slide 15: 30 per cent emission reductions in 10 years
30 per cent emission reductions in 10 years By investing in new aircraft, Norwegian reduces fuel burn and hence emissions considerably With an average age of 3.8 years, Norwegian has one of the youngest, greenest and most fuel- efficient fleets in the world Norwegians new aircraft reduce CO2 emissio
Slide 16: Aviation boosts tourism and creates economic value
Aviation boosts tourism and creates economic value A report by Menon Economics shows the positive effects of international passengers flying to Scandinavia with Norwegian: 40,000 new jobs have been created in Scandinavia Passengers flying to Sweden, Norway and Denmark with Norwegian in 2017 contribu
Slide 17: Summary
Summary Financing for all aircraft deliveries in H1 2019 secured Reached an agreement with Rolls-Royce with a positive effect from Q1 2019 Changes to route portfolio with effect from Q1 2019 #Focus2019: Launched cost savings program, contributing to estimated savings of minimum NOK 2 billion in 2019
Slide 18: Norwegian offers more than 500 routes to over 150 destinations
Norwegian offers more than 500 routes to over 150 destinations 18