Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Q4 2004 Earnings Presentation
12 slides from Norwegian Air Shuttle Asa's earnings presentation, Feb 17, 2005
Slide 1: Norwegian Air Shuttle ASA (NAS) Q4 2004 and FY 2004
Norwegian Air Shuttle ASA (NAS) Q4 2004 and FY 2004 17 February, 2005 Oslo
Slide 2: Strong growth continued
Strong growth continued ● 73 % production increase from Q403 to Q404, with up to 40 % increase on main domestic routes. ● Satisfactory load factor levels maintained ● Strong performance on international routes Load factor 100 % 683 642 607 80 % 60 % 370 349 40 % 20 % 0% Q4 03 Q1 04 Q2 04 Q3 04 Q4 04
Slide 3: Stronger market position
Stronger market position ● Approaching 30 % market share on key domestic routes ● Positive response on improved time table for Bergen and Trondheim 35 % 30 % 30 % 30 % 28 % 27 % 26 % 26 % 25 % 24 % 23 % 22 % 21 % 20 % 20 % 18 % 15 % 10 % Bergen Trondheim Stavanger Tromsø Q2 03 Q2 04 Q4 04 3
Slide 4: 28% increase in turnover
28% increase in turnover ● 331 MNOK in turnover in Q4 2004, compared to 258* MNOK in Q4 2003 ● EBITDA result of -43 MNOK in Q4 2004, compared to 0,5* MNOK in Q4 2003 ● A period of extraordinary events; high fuel prices and price war MNOK Revenue development 350 300 250 200 150 100 Q4 03 Q1 04 Q2 04
Slide 5: Financial position
Financial position ● Cash-balance of 195 MNOK, prepaid tickets of 109 MNOK ● Equity-share of 35% ● Strong sales in beginning of 2005 will increase cash balance CASH FLOW (MNOK) From: Q4 04 2004 2003 Operation activities -24 660 -90 847 61 498 Investments -16 037 -11 964 -28 637 Financial activities
Slide 6: Capacity expansion continues
Capacity expansion continues Growth 04-05 Sept. 02 Sept. 03 Sept. 04 Sept. 05(E) Fleet 6 8 11 13 18 % Man-years 254 300 400 ~490 23 % Avail. Seat Kilom. (mill ASK) 57 119 224 ~290 30 % Number of routes 4 17 31 ~40 30 % Airborne hours (ABH) 769 1 311 2 355 ~3 100 32 % Passenger traffic (mill RPK) 29
Slide 7: Continued cost reduction
Continued cost reduction ● Average unit costs of 0.62 NOK in Q4 2004, down 17 % from Q4 2003 (0.74 NOK) ● 22 % down from 2003 ● Higher crew and fleet utilization from production increase, renegotiated supplier agreements and cheaper distribution will bring costs further down in 2005 NOK/ASK 0,80 -16
Slide 8: True low-cost operator
True low-cost operator Cost per ASK vs Stage Length 2000 KLM 1800 Air France 1600 1400 Lufthansa 1200 ”Low-cost quadrant” lberia km 1000 Easyjet 800 Ryanair Norwegian 2004 SAS Norwegian 2005 600 Norwegian 2003 400 200 0 0 20 40 60 80 100 120 øre 8 Footnotes: Total cost pr ASK, incl. leasing costs So
Slide 9: Towards normalized price levels?
Towards normalized price levels? Consumer price index, domestic air-fares 170 160 150 140 130 120 110 100 3 competitors 2 competitors monopoly 2 competitors 90 ap 9 ap 0 ap 1 ap 2 ap 3 ap 4 05 ok 9 ok 0 ok 1 ok 2 ok 3 ok 4 ja 9 ja 0 1 2 3 4 9 0 1 2 3 4 9 0 0 0 0 0 l.9 l.0 l.0 l.0 l.0 l.0 r.9 r.0 r.0
Slide 10: Yield has improved
Yield has improved ● Yield levels influenced by shorter sector lengths ● Yield pressure softened somewhat during Q4 ● Positive effects from improved revenue management practice Yield (Revenue/RPK) NOK 1,20 1,00 0,80 0,60 0,40 0,20 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Yield (Rev / RPK) 10
Slide 11: Expectations for 2005
Expectations for 2005 ● Continued market increase from low prices ● Price competition at current levels ● Fuel prices at current levels ● Continued expansion expected to strengthen market position and achieve cost level targets from Q2 and onwards ● Expected loss in Q1 and positive operating results
Slide 12: Norwegian Air Shuttle ASA (NAS) Q4 2004 and FY 2004
Norwegian Air Shuttle ASA (NAS) Q4 2004 and FY 2004
Norwegian Air Shuttle — Q4 2004 Earnings Presentation on 6ix