Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Q3 2022 Earnings Presentation
17 slides from Norwegian Air Shuttle Asa's earnings presentation, Oct 26, 2022
Slide 1: Presentation of third quarter 2022
Presentation of third quarter 2022 26 October 2022
Slide 2: Highlights
Highlights Number of passengers Delivering customers to destinations in face of this quarter industry challenges – robust operations with regularity at 99.4% 6,081,727 Corporate travellers choosing Norwegian – key routes on par with 2019 – Widerøe co-operation with seamless travel across network Loa
Slide 3: Record strong summer traffic
Record strong summer traffic Traffic – PAX per month, load factor and yield 2,206 2,002 100 .0% Strong pent-up demand 1,936 1,874 2,0 00 1.01 – customers longing to travel to 94% Norwegian’s key destinations 1,628 90. 0% 85% 86% 85% 80% 1,400 The reliable travel option 1,5 00 81% 79% 79% – regularit
Slide 4: Stable bookings into winter season
Stable bookings into winter season Booking momentum 7-day rolling sales figures (abs) – All markets* Customers booking close to travel date Bookings stabilising after summer holiday season Corporate travellers valuing Norwegian’s regularity and strong on-time performance Attractive winter & summer 2
Slide 5: Business travellers choosing Norwegian
Business travellers choosing Norwegian Identified corporate revenue – increasing through 2022 300 Strong operational performance 250 Corporate revenue returning to pre-pandemic levels 200 Travellers above 2019 in September on key domestic routes 150 Few cancellations with regularity at 99.4% 100 Str
Slide 6: Financial results for Q3 2022
Financial results for Q3 2022
Slide 7: Quarterly financial highlights
Quarterly financial highlights Revenues Unit revenue - total Passenger traffic (million RPK) 0.78 7,934 6,190 Record-high unit revenue 0.62 Ancillary NOK 172 per pax 2,861 0.49 Q3 2021 Q2 2022 Q3 2022 Q3 2021 Q2 2022 Q3 2022 Profits EBITDAR (NOK million) 1,526 Positive bottom line – EBT NOK 910 mill
Slide 8: Q3 earnings – operating profit (EBIT) above 1bn
Q3 earnings – operating profit (EBIT) above 1bn Chng. NOK million Q3 2022 Q2 2022 (QoQ) Passenger revenue 5,936 3,970 +50% Record strong load and unit revenue Ancillary passenger revenue 1,047 782 Other revenue 133 116 Total operating revenue 7,116 4,868 +46% Personnel expenses 687 782 Aviation fuel
Slide 9: CASK – scale and macro headwinds
CASK – scale and macro headwinds Scale and cost initiatives – macro headwinds 0.30 Fuel 0.29 Fuel cost remain elevated due to high fuel price and strong USD 0.25 – initiated hedging on fuel in October Personnel lower with higher block hours 0.20 – sound collaboration with unions Airport & ATC and ha
Slide 10: Robust balance sheet going into winter
Robust balance sheet going into winter 30 Sep. 30 Jun. Chng. NOK million 2022 2022 (QoQ) Intangible assets 2,092 2,082 Net interest bearing debt Tangible assets 11,258 9,834 Aircraft prepayment Total non-current assets 13,735 12,203 +13% and lease revaluation 30 Sep. 30 Jun. Chng. NOK million Holdba
Slide 11: Cash flow – strong cash position
Cash flow – strong cash position NOK million Opening balance (30 Jun. 2022) 7,543 Strong liquidity position heading into winter season Strong operating profit Operating activities +1,707 Reduced holdback Holdback down to 56% from above 100% at 31.12 Investing activities Prepayment for aircraft order
Slide 12: The way forward
The way forward
Slide 13: Securing a modern long-term fleet
Securing a modern long-term fleet Securing fleet for 2024 Leases secured for 11 new 737 MAX 8 at competitive terms 100 Delivering in advance of summer 2024 season 30 80 Replacing older generation aircraft Redelivery of leased 737 NGs – 4 aircraft in fall 2023 and 5 in 2024 60 Replaced by fuel-effici
Slide 14: Summary
Summary Well prepared for winter season Utilising fleet flexibility – 25% capacity reduction Bookings remaining encouraging, but uncertain macro environment Strong focus on cost and efficiency Robust balance sheet Enter winter season with NOK 8.2bn in cash Improved equity position Aircraft order imp
Slide 15: Book tickets at Norwegian.com
Book tickets at Norwegian.com
Slide 16: Appendix
Appendix
Slide 17: 20 largest shareholders as of 30 September 2022
20 largest shareholders as of 30 September 2022* Name Country Number of shares Per cent 1 Geveran Trading Company, Ltd. Cyprus 132,214,986 14.2 % 2 Sundt AS Norway 104,103,198 11.2 % 3 Folketrygdfondet Norway 46,651,798 5.0 % 4 Silver Point Capital, L.P. United States 45,219,500 4.9 % 5 Davy Stockbr
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