Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Q2 2021 Earnings Presentation
17 slides from Norwegian Air Shuttle Asa's earnings presentation, Aug 31, 2021
Slide 1: Presentation of second quarter and first half 2021
Presentation of second quarter and first half 2021 31 August 2021
Slide 2: Highlights – We're back!
Highlights – We’re back! 1 Fully reconstructed balance sheet with close to zero net interest-bearing debt, NOK 7.5 bn in cash & equivalents, and a rightsized business 2 Winning back customers through our well-known brand, attractive prices and reliable service 3 Q2-21 financially as expected; focus
Slide 3: A successful reconstruction
A successful reconstruction Cut total debt, liabilities and commitments in excess of NOK 140 bn Aircraft fleet reduced by more than 2/3 and aircraft orders of 185 aircraft cancelled Long Haul operations using the 787 Dreamliner terminated Focus on Nordics and Nordic-originating flights with historic
Slide 4: Rightsized the operation to the reconstructed company
Rightsized the operation to the reconstructed company 1 2 3 Fleet Organization Cost base • 51 Boeing 737-800 NGs • Currently hold workforce of • Renegotiated or established slightly above 3,000 new agreements across the • Ownership cost reduced employees per Aug-21 supply chain to reflect new approx
Slide 5: Continue to deliver on our proven customer experience
Continue to deliver on our proven customer experience Delivering on the key choice drivers Strong loyalty drivers in place which is our top priority we will continue to enhance Affordable fares A loyalty program for all Price leader in Nordics >4 million Reward members in the Nordics Recognized bran
Slide 6: Financial results Q2 and 1H 2021
Financial results Q2 and 1H 2021
Slide 7: Profit and loss as expected – Reduced operating costs before one-offs
Profit and loss as expected – Reduced operating costs before one-offs NOK million Q2 2021 H1 2021 Passenger revenue 236 363 Ancillary passenger revenue 66 110 Other revenue 34 118 Total operating revenue 335 591 Personnel expenses 611 919 Personnel expenses include approximately NOK 300 million in
Slide 8: A strong balance sheet – to be further strengthened with debt conversion in Q3
A strong balance sheet – to be further strengthened with debt conversion in Q3 30 JUNE 30 JUNE NOK million 2021 2020 Calculation of net interest-bearing debt: Intangible assets 2 084 2 230 Tangible fixed assets 5 394 68 274 (NOK bn) Fixed asset investments 87 1 038 Aircraft financing 4.726 Total n
Slide 9: Cash flow – A strong cost control with low cash-burn from operations in 1H
Cash flow – A strong cost control with low cash-burn from operations in 1H NOK million H1 2021 H1 2020 Net cash flows from operating activities -421 609 Purchases, proceeds and prepayment of tangible assets 0 2 774 Other investing activities -5 -13 Net cash flows from investing activities -5 2 762 L
Slide 10: A strong environmental focus
A strong environmental focus
Slide 11: We remain committed to reducing our Co2-emissions by 45 percent by 2030
We remain committed to reducing our Co2-emissions by 45 percent by 2030 Grams Co2 per revenue passenger kilometer (RPK) KPI targets as measured by -28% 119 97 90 88 86 -45% 81 82 A 45% reduction in carbon emissions per 76 74 73 72 70 A Carbon efficiency passenger kilometer by 2030 from a 2010 baseli
Slide 12: Creating a sustainable future, the low-cost way
Creating a sustainable future, the low-cost way SUSTAINABLE AVIATION FUELS 7-15 gCo2/RPK FLEET RENEWAL 0-9 gCo2/RPK OPERATIONAL EFFICIENCY 5 gCo2/RPK Numbers in italics refer to the potential each action has for improving our grams of Co2 per RPK in the period 2022-2030. 12
Slide 13: The way forward
The way forward
Slide 14: Load factor stabilizing at higher levels with strong sales momentum
Load factor stabilizing at higher levels with strong sales momentum • Production in July increased by over 250 % vs. No. of booked 7-day rolling sales figures – All markets June (measured in ASKs), and still maintained passengers (abs.) load factor of 74.4 % August delivering around 70 % • Encoura
Slide 15: To continue with careful ramp-up closely following demand enabled by fleet flexibility
To continue with careful ramp-up closely following demand enabled by fleet flexibility through the winter • Expect to have the full fleet in operation by Avg. no. of Short-term fleet plan 2021/22 end-2021 aircraft in operation • The PBH-arrangement through the winter is 60 based on airborne hours me
Slide 16: Planning for a successful 2022 with proven, profitable routes
Planning for a successful 2022 with proven, profitable routes and an expected 60-70 aircraft in operation as demand recovers • Launched attractive summer program 2022 for sale with immediate positive response • Currently evaluating the asset market with regards to aircraft availability Subject to
Slide 17: Fly Norwegian
Fly Norwegian Book tickets at Norwegian.com
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