Norwegian Air Shuttle Asa · OSL:NAS

Norwegian Air Shuttle Asa — Q4 2011 Earnings Presentation

21 slides from Norwegian Air Shuttle Asa's earnings presentation, Feb 16, 2012

  1. Slide 1: Norwegian Air Shuttle ASA Q4 2011 Presentation

    Norwegian Air Shuttle ASA Q4 2011 Presentation February 16th 2012 CEO Bjørn Kjos 1

  2. Slide 2: Double digit revenue growth in Q4

    Double digit revenue growth in Q4 • Group revenues of MNOK 2,536 in Q4 2011 Slide: 2

  3. Slide 3: EBITDA break-even in seasonally slow quarter

    EBITDA break-even in seasonally slow quarter – EBITDAR MNOK + 216 (214) – EBITDA MNOK + 2 (14) – EBIT MNOK - 85 (-32) . – Pre-tax profit (EBT) MNOK - 188 (-27) – Net profit MNOK - 133 (-24) EBITDAR development Q4 EBT development Q4 Slide: 3

  4. Slide 4: Underlying EBT improvement

    Underlying EBT improvement of MNOK 4 • Fuel price up 36 % since last year – equivalent to MNOK 193 • More efficient aircraft saves MNOK 33 in fuel cost • MNOK 35 accumulated maintenance provisions for re-delivery of 737-300’s 200 150 Result impr. MNOK 4 100 50 7 3 0 33 35 30 -27 -50 -100 -188 193 -1

  5. Slide 5: Revenue growth of 1.9 billion in 2011

    Revenue growth of 1.9 billion in 2011 • Annual turnover of MNOK 10,532 5

  6. Slide 6: 2011 pre-tax profit of MNOK 167

    2011 pre-tax profit of MNOK 167 – EBITDAR MNOK + 1,540 (+ 1,175) – EBITDA MNOK + 710 (+ 397) . – EBIT MNOK + 416 (+ 210) . – Pre-tax profit (EBT) MNOK + 167 (+ 243) – Net profit MNOK + 122 (+ 171) EBITDAR (full year) EBT (full year) Slide: 6

  7. Slide 7: 2011 underlying pre-tax profit improvement

    2011 underlying pre-tax profit improvement of MNOK 770 • Fuel price up 41 % since last year – equivalent to MNOK 803 • More efficient aircraft saves MNOK 153 in fuel cost • Non-lean items accounted for MNOK 135 1000 35 900 153 100 Result improvement MNOK 770 800 700 600 803 MNOK -47 500 Result 952 4

  8. Slide 8: Cash and cash equivalents of 1.1 billion

    Cash and cash equivalents of 1.1 billion • Cash flows from operations in Q4 2011 MNOK -73 (+158) – MNOK 180 espionage compensation from SAS last year – MNOK 188 improved collection of receivables last year • Cash flows from investing activities in Q4 2011 MNOK -483 (-450) • Cash flows from financing

  9. Slide 9: Group equity improved compared to last year

    Group equity improved by MNOK 150 compared to last year • Total balance of NOK 9.0 billion • LT debt NOK 2.7 billion – net LT debt NOK 1.6 billion • Equity of NOK 1.9 billion at the end of the fourth quarter • Group equity ratio of 22 % (27 %) 9 000 8 000 Long term liabilities 3,066 7 000 Non-curren

  10. Slide 10: Traffic growth in 2011

    Traffic growth of 26 % in 2011 • Load up 2 p.p. despite capacity growth of 23 % • Unit revenue (RASK) up 2 % + 23 % 100 % ASK Load Factor 20 000 80 % 79 % 79 % 78 % 79 % 78 % 77 % 80 % 67 % 15 000 62 % 60 % 52 % 10 000 40 % Available Seat KM (ASK) 5 000 20 % Load Factor 0 0% 2002 2003 2004 2005 2006

  11. Slide 11: 15.7 million passengers in 2011

    15.7 million passengers in 2011 • An increase of 2,670,000 passengers 16.0 + 20 % 14.0 12.0 10.0 8.0 6.0 Passengers (million) 4.0 2.0 0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Pax (mill) 0.3 1.2 2.1 3.3 5.1 6.9 9.1 10.8 13.0 15.7 Slide: 11

  12. Slide 12: Largest share of growth outside Norway

    Largest share of growth outside Norway Newly started base in Helsinki with 300,000 passengers in Q4 Norwegian in Oslo Norwegian in Stockholm Norwegian in Copenhagen + 89,000 pax + 269,000 pax + 86,000 pax • Marginal increase in domestic frequencies • New dom. routes to Malmö & Gothenburg • Internati

  13. Slide 13: Norwegian aiming for CASK NOK 0.30 excluding fuel

    Norwegian aiming for CASK NOK 0.30 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 “free” seats • Outsourcing/

  14. Slide 14: Underlying unit cost down 6%

    Underlying unit cost incl. depreciation & interest expense down 6 % • Unit cost flat in spite of 41 % higher fuel price • More efficient aircraft saved MNOK 153 in fuel cost in 2011 0.60 0.55 0.50 0.19 0.45 0.10 FuelFuelExcl. Fuel 0.12 0.40 0.14 Excl. Fuel Total cost (EBT) per ASK 0.03 -6% 0.35 0.39

  15. Slide 15: Aiming for the Comfort Zone

    Norwegian positioned in the cost “Survival Belt” – a prerequisite for self sustainability Aiming for the “Comfort Zone” Sources: SAS Group year-end report 2011 & Annual Report 2010, Finnair Plc. year-end report 2011 and Annual Report 2010, Ryanair Annual Report 2011, easyJet year-end report 2011, Ai

  16. Slide 16: Ancillary revenues remain a significant contributor

    Ancillary revenues remains a significant contributor • Ancillary revenue comprises 12 % of 2011 revenues 80 70 60 50 Ancillary revenue per passenger (NOK) 40 30 20 10 0 2008 2009 2010 2011 Ancillary revenue/ scheduled pax 51 73 79 79 Ancillary revenue/ all pax (inc. charter) 51 73 79 78 Slide: 16

  17. Slide 17: Current committed fleet plan

    Current committed fleet plan • 13 new 800 deliveries in 2012 • Short term shortage of 800’s – Temporarily covered by existing 300’s (2012 CASK guidance unaffected) • First 787-8 Dreamliner deliveries expected in Q1 2013 17

  18. Slide 18: Converging strategic moves

    10th year in operation: Converging strategic moves • Short Haul operation streamlined – Cost efficient, high quality product – Most reliable airline in its markets • Long Haul launching in a year – Targeting cost leadership – Fastest aircraft in the market flying non-stop • Frequent Flyer bonus prog

  19. Slide 19: Expectations for 2012

    Expectations for 2012 • Business environment – Uncertain business climate – Seasonal fluctuations – Continued but stabilized yield pressure • Production – The company expects a production growth (ASK) of approximately 15 % – Primarily from increasing the fleet by adding 737-800’s – Capacity deployme

  20. Slide 20: Norwegian offers 296 scheduled routes to 114 destinations

    Norwegian offers 296 scheduled routes to 114 destinations

  21. Slide 21: Norwegian Air Shuttle ASA contact details

    Norwegian Air Shuttle ASA Mailing address P.O. Box 113 No-— 1330 Fornebu Visiting address Oksengyveien 3 ~, 4 5... Telephone +47 67059)3 0100 wk 67S 9330 www.norwegi Telefon Internet Organization number

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