Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Q1 2015 Earnings Presentation
23 slides from Norwegian Air Shuttle Asa's earnings presentation, 2015
Slide 1: Norwegian Air Shuttle ASA Q1 2015 Presentation
Norwegian Air Shuttle ASA Q1 2015 Presentation Photo: Bo Mathiesen Europe’s best low-cost airline
Slide 2: Q1 2015 Highlights
Europe’s best low-cost airline Q1 2015 Highlights 2013 & 2014 • New aircraft – Two new 737-800 – One new Dreamliner (April) • Progress for long-haul • Launched new routes to the Caribbean and USA • Pilot strike • Net profit improved to MNOK -538 (MNOK +57) 2
Slide 3: Q1 revenue increased by 14%
Europe’s best low-cost airline Q1 revenue increased by 14 % 2013 & 2014 • 21 % revenue growth for international flights • Domestic reduced due to strike and reduced winter program 5 000 4 500 + 14 % 4 000 3 500 3 000 Domestic Revenue (MNOK) 2 500 International Revenue (MNOK) 2 000 Total Revenues (MN
Slide 4: 29% growth in ancillary, now at 17% of group revenue
Europe’s best low-cost airline 29 % growth in ancillary, now at 17% of group revenue 2013 & 2014 • Category (per pax) • Short Haul + 21% y.o.y 4
Slide 5: EBITDAR improved by MNOK 284 on higher load and Easter
Europe’s best low-cost airline EBITDAR improved by MNOK 284 on higher load and Easter 2013 & 2014 Q1 15 Q1 14 EBITDAR MNOK 69 -215 EBITDA MNOK -502 -615 EBIT MNOK -722 -777 Pre-tax profit (EBT) MNOK -776 -813 Net profit MNOK -538 -595 EBITDAR development Q1 EBT development Q1 5
Slide 6: Contribution from lower fuel cost offset by currency
Europe’s best low-cost airline Contribution from lower fuel cost offset by currency 2013 & 2014 • Deviation explained by lost revenue due to strike • Long-haul regularity improved • Not included: currency gain on assets of MNOK 284 booked to equity 6
Slide 7: Weaker cash-flow explained by strike
Europe’s best low-cost airline Weaker cash-flow explained by strike 2013 & 2014 • NOK 1 billion cash-flow from operations – seasonal increase in pre-sold tickets • Added two brand new Boeing 737-800 aircraft in Q1 • NOK 1.6 billion available cash at 31 March 7
Slide 8: Balance sheet boost by currency and new aircraft
Europe’s best low-cost airline Balance sheet boost by currency and new aircraft 2013 & 2014 • NOK 5.5 bn capex the last 12 months • Added eight new 737-800 and one 787 on balance • Assets up by NOK 4 billion on FX from Q1 last year • Bank Norwegian - BV: MNOK 246, MV: MNOK 1,020 27 000 24 000 Long t
Slide 9: Strong Q1 load factor
Europe’s best low-cost airline Strong Q1 load factor 2013 & 2014 • Load factor increased to 83 % (+ 6 p.p.) • 15 % traffic growth (RPK) • Average flying distance up by 10 % + 7% 100% 12 000 ASK Load Factor 11 000 83,0 % 10 000 76,8 % 77,2 % 77,2 % 77,3 % 74,8 % 74,8 % 75,1 % 76,1 % 80% 74,3 % 9 000
Slide 10: Passengers in Q1 2015
Europe’s best low-cost airline 5 million passengers in Q1 2015 2013 & 2014 270,000 long-haul passengers in the first quarter 6,00 + 2% 5,00 4,00 3,00 2,00 Passengers (million) 1,00 0,00 Q1 06 Q1 07 Q1 08 Q1 09 Q1 10 Q1 11 Q1 12 Q1 13 Q1 14 Q1 15 Pax (mill) 1,0 1,3 2,0 2,1 2,7 3,1 3,6 3,9 4,9 4,9 10
Slide 11: Norwegian Reward at 3.2 million members
Europe’s best low-cost airline Norwegian Reward at 3.2 million members 2013 & 2014 • Over 1 million members in Norway • Roll-out in new markets: added 800,000 new Reward members since Q1 14 • CashPoints: Strong growth from external partners 11
Slide 12: Growth in UK and Spain; Norway and Sweden hit by strike
Growth in UK and Spain (+320,000 pax) Europe’s best low-cost airline 2013 & 2014 - Norway and Sweden hit by strike (-190,000 pax) 12
Slide 13: Flat unit cost y.o.y
Europe’s best low-cost airline Flat unit cost y.o.y 2013 & 2014 0,50 0,45 0,15 Operating cost EBITDA level per ASK (CASK) 0,40 0,13 0,10 0.15 Fuel share of CASK 0,35 CASK excl fuel 0,30 0,36 0,35 0,33 0,32 0,25 0,20 Q1 12 Q1 13 Q1 14 Q1 15 Cost per ASK (CASK) (NOK) 0,50 0,47 0,45 0,45 CASK ex. fuel
Slide 14: Operating expenses - potential to cut unit cost further
Europe’s best low-cost airline Operating expenses - potential to cut unit cost further 2013 & 2014 • Key drivers to reduce unit costs: Cost per seat per KM (NOK) – Replace older leased aircraft (Fuel, Tech, Handling, Airport/ATC & Personnel) – Larger scale (Overhead, Sales & distr., Personnel) – Fur
Slide 15: Lowest cost always wins
Europe’s best low-cost airline Lowest cost always wins 2013 & 2014 Sources: Norwegian Q3 2014 report (period displayed October 2013 – September 2014), SAS Interim Reports (including latest May 2014 – July 2014). Figures as reported in respective quarters and not restated - Scandinavian Airlines (SK)
Slide 16: Youngest fleet in Europe with an average age of 4 years
Europe’s best low-cost airline Youngest fleet in Europe with an average age of 4 years 2013 & 2014 B788 Owned 141 140 3 B788/B789 Leased 12 A320neo 120 B737 MAX 8 117 12 3 B738 owned 2 9 B738 S&LB 99 4 100 95 3 B738 leased 2 5 85 5 B733 owned 1 2 80 B733 leased M80 leased 68 83 62 30 41 51 68 60 57
Slide 17: Building a fleet of seventeen Dreamliners by 2018
Europe’s best low-cost airline Building a fleet of seventeen Dreamliners by 2018 2013 & 2014 Seven 787-8 in operation One 787-8 delivered in April Nine 787-9 on firm order 2015 2016 2017 2018 17
Slide 18: Long haul
Europe’s best low-cost airline Long haul 2013 & 2014 18
Slide 19: To the US and Caribbean from London and Scandinavia
Europe’s best low-cost airline To the US and Caribbean from London and Scandinavia 2013 & 2014 19
Slide 20: Competition becomes Global
Europe’s best low-cost airline Competition becomes Global 2013 & 2014 “It (Chinese tourism) might be the biggest phenomenon to hit the global travel industry since the invention of commercial flight” – 20
Slide 21: Expectations for 2015 (Group)
Europe’s best low-cost airline Expectations for 2015 (Group) 2013 & 2014 • Business environment – Bookings for 2015 are ahead of last year (capacity adjusted) – Stable market in the Nordic region – Tough competition in continental Europe on short haul driven by new capacity – Good progress for long-
Slide 22: Summary
Europe’s best low-cost airline 2013 & 2014 Summary • Bookings for 2015 ahead of last year • An estimated NOK 2 billion lower fuel cost for 2015 • Start-up of long haul on-track, improving regularity for the Dreamliner • Aiming for further unit cost reductions • Bond issue NOK 750 - 1,250 million man
Slide 23: Norwegian offers 425 scheduled routes to 130 destinations
From bases in NORWAY SWEDEN From bases in DENMARK 23 Norwegian offers 425 FINLAND scheduled routes to 130 destinations in 39 countries From bases in the USA & THAILAND From bases in SPAIN From the UK base 23
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