Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Investor Presentation (September 2018)
20 slides from Norwegian Air Shuttle Asa's investor presentation, September 2018
Slide 1: Investor Presentation Norwegian Air Shuttle
Investor Presentation Norwegian Air Shuttle September 2018
Slide 2: Investment highlights
Investment highlights • Strong footprint in the Nordic region and selected European markets 3rd largest low • 8th largest overall airline in Europe cost airline in • 5th largest low cost airline in the world Europe • A moderate single digit growth rate in short haul going forward • Average age of fl
Slide 3: The history of Norwegian
The history of Norwegian NUK approved NAI by DoT approved by DoT 2 Long haul 30 Caribbean 19+8 Arctic Aviation Assets Ltd 222 Boeing SKY 15+3 ATW Awards 15 6 42 First-800 delivery New distribution- Lavpris system kalenderen 3
Slide 4: 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 5: A global organization with over 10,000 employees
A global organization with over 10,000 employees 5
Slide 6: It's a global world – we will travel more, not less
It’s a global world – we will travel more, not less Billion passengers per year Passenger forecast 8 7.2 billion passengers are expected in 2035 7 History Forecast 6 5 4 3 2 1 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 Source: https://data.w
Slide 7: Highest regularity of peers in Norway
Highest regularity of peers in Norway Norwegian consistently has the highest regularity in Norway Punctuality is above SAS, but still high potential for improvement Source: Avinor 7
Slide 8: Financials
Financials
Slide 9: Stable load in the quarter with highest absolute growth in the history of Norwegian
Stable load in the quarter with highest absolute growth in the history of Norwegian 48% growth in capacity (ASK) 46% growth in traffic (RPK) ASK Load Factor Load 30,000 - 0.9 p.p. 100% 87.8 % 87.7 % 86.8 % 85.2 % 90% 25,000 79.6 % 78.3 % 78.3 % 76.5 % 76.9 % 80% 75.4 % 70% 20,000 60% 15,000 50% 40%
Slide 10: 58% of revenue generated outside the Nordics
58% of revenue generated outside the Nordics 13% revenue growth in the Nordics Most significant absolute growth in the US Growth in revenue by origin in Q3 18* (y/y): Revenue split by origin in Q3 18*: * 12 months rolling (estimated) 10
Slide 11: Operating cost EBIT level per ASK
Unit cost excl fuel decreased by 19% Unit cost excl fuel decreased by 19% (decreased by 17% in constant currency) Unit cost incl fuel decreased by 9% (decreased by 6% in constant currency) 0.65 0.60 CASK excl fuel and ownership cost 0.55 Ownership share of CASK Fuel share of CASK 0.50 Operating cost
Slide 12: Comparison of unit cost incl. depreciation
Comparison of unit cost incl. depreciation Sources: Based on official full-year 2016 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 13: Capital expenditure and financing
Capital expenditure and financing Capex commitment (all aircraft incl PDP) USD 1.75 billion for 2018 (previous estimate: USD 1.9 bn) USD 2.2 billion for 2019 (previous estimate: USD 2.6 bn) Focus on reducing capex commitment through sale of up to 140 aircraft Liquidity Private placement and subseque
Slide 14: Fleet and expansion
Fleet and expansion
Slide 15: Adding 25 new aircraft to own operations in 2018
Adding 25 new aircraft to own operations in 2018 Deliveries 787-9 Deliveries 737-800 and 737 MAX Re-deliveries 737-800 2018: +3,724 seats +2,640 seats -744 seats 15
Slide 16: Youngest fleet among peers
Youngest fleet among peers Average fleet age Norwegian Aeroflot Wizz Air Spirit Airlines Frontier Airlines Emirates Etihad Qatar Turkish Airlines Ryanair Vueling Easyjet Virgin America Eurowings Finnair JetBlue Flybe Group Iberia SAS American Airlines Southwest Air France KLM Lufthansa British Airwa
Slide 17: Best in class on fuel efficiency
Best in class on fuel efficiency Source: Information about CO2 emissions in gram are gathered from the airlines’ latest available annual reports
Slide 18: Outlook
Outlook 18
Slide 19: Going forward
Going forward Fully committed to delivering on our long-term strategy Entering a more moderate growth phase Focus on cost reduction initiatives Stick to strategy of sale of up to 140 aircraft Sold the first six 737-800s late August Growth will be skewed towards increased frequency on existing routes
Slide 20: Norwegian offers more than 500 routes to over 150 destinations
Norwegian offers more than 500 routes to over 150 destinations 20
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