Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Merger or Acquisition (July 2023)
19 slides from Norwegian Air Shuttle Asa's merger presentation, Jul 6, 2023
Slide 1: Acquisition of Widerøe
Acquisition of Widerøe 6 July 2023
Slide 2: Transaction highlights
Transaction highlights Norwegian to acquire Widerøe for a cash consideration of NOK 1,125 million* corresponding to an enterprise value of approx. NOK 2 billion** Strong transaction rationale with significant synergy potential, combining highly complementary businesses to the benefit of travellers,
Slide 3: Widerøe is the largest regional carrier in Europe, with history dating back to 1934
Widerøe is the largest regional carrier in Europe, with history dating back to 1934 Business areas Financial performance and key metrics* Revenue (NOKm) Public service obligations (“PSO”) routes Commercial routes Covid 19 5.7 2,002 ASK (m), Charter Ground handling services 5.1 2022 4.7 4.6 4.4 Techn
Slide 4: Widerøe fleet overview
Widerøe fleet overview Fleet overview Model No. of aircraft No. of seats Comments DHC-8 100 23 23 39 • Optimal for “special operations” – runways with steep approach and short runway • 800m contaminated runways • No clear alternative available in the market DHC-8 200 3 3 39 DHC-8 300 2 2 4 50 • Can
Slide 5: Combining highly complementary businesses
Combining highly complementary businesses Two different but highly complementary businesses… …combining to create the leading airline in Norway Scale Aggregated Monthly passengers (k) total 3,000 2,026 2,000 Revenues 2022, NOKbn 18.9 5.7 24.6 1,000 308 0 Jan-22 Mar-22 May-22 Jul-22 Sep-22 Nov-22 Jan
Slide 6: Widerøe has delivered robust profitability over time
Widerøe has delivered robust profitability over time Long-term financial performance of Widerøe EBIT margin (%)* Covid-19 14% 12.7% 12% 10% 8.3% 8% 6.6% 6.4% 5.9% 5.6% 6% 5.2% 4.7% Average: 4.2% 4% 3.6% 4.5% 2.5% 1.6% 1.4% 2% 0.9% 0% -2% -1.4% -4% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20
Slide 7: Widerøe acquisition supports Norwegian's strategic priorities
Widerøe acquisition supports Norwegian’s strategic priorities Grow in business travel Manage seasonality Manage ✓• Higher volume and improved ✓• Seasonality of seasonality Widerøe 1/5th of connectivity with seamless travel Norwegian* ✓• Supported by Norwegian’s “best in Nordics” punctuality Core LCC
Slide 8: Complementary, non-overlapping route networks, seamlessly connecting regional Norway
Complementary, non-overlapping route networks, seamlessly connecting regional Norway with >100 international destinations Example: Oslo, Gardermoen Example: Trondheim, Værnes Offering more travellers access to more LONGYEARBYEN destinations, with better connectivity and KIRKENES ALTA end-to-end trav
Slide 9: All stakeholders to benefit from the combination
All stakeholders to benefit from the combination Travellers Employees Shareholders Better connectivity and end-to-end Widerøe employees becoming part of a Highly complementary route networks travel experience, connecting more stronger, combined company with offer opportunities to expand revenues tra
Slide 10: Financial impact and value creation – significant synergies expected
Financial impact and value creation – significant synergies expected Acquisition expected to deliver potential annual synergies of NOK 200-300 million Widerøe expected to return to robust profitability, i.a. following new PSO tender based on significant uplift in capacity and lower maximum prices, e
Slide 11: Timeline and roadmap
Timeline and roadmap 2024 and beyond 6 July 2023 August 2023 End of Q4 2023 4 Optimisation 1 2 3 Full synergy realisation Announcement Regulatory filings Expected closing Announcement of Competition filings to the Timing of approvals agreement Norwegian Competition and closing of the Authority trans
Slide 12: Summary
Summary Combining highly complementary businesses to the benefit of travellers, employees and shareholders Strategic acquisition strengthening market position and extending low-cost offering to regional Norway Widerøe gaining industrial backing unlocking operational scale and improved competitivenes
Slide 13: Appendix
Appendix
Slide 14: Widerøe's route network
Widerøe’s route network PSO routes Commercial short-haul All routes Commentary • Widerøe operates a variety BGO-FRO of routes with different TOS-HFT characteristics in terms of flight conditions and airport TOS-ALF types TOS-VDS • A large degree of the routes are on government demand. TOS-KKN These
Slide 15: Widerøe operates three main types of routes
Widerøe operates three main types of routes Special operations Regional routes International flights Harsh & complex Variable Good Flight conditions Flight conditions Flight conditions Short runways, steep approach Small & medium sized Secondary, large(r) Airports Airports Airports Small, Turbo Prop
Slide 16: Description of Widerøe's ground handling operations
Description of Widerøe’s ground handling operations Widerøe Ground Handling in brief Key metrics, 2022* • Widerøe Ground Handling (“WGH”) is Norway's largest provider of ground handling services in Norway located at more than 40 airports, 14,659,521 330,287 9,634,732 delivering ground services on be
Slide 17: Widerøe financial information
Widerøe financial information Consolidated financials, NOKm* Selected subsidiaries, NOKm* Widerøe AS 2018 2019 2020 2021 2022 Widerøe Flyveselskap AS 2018 2019 2020 2021 2022 Revenue 4,721 5,088 4,069 4,624 5,703 Revenue 4,044 4,359 3,613 4,273 5,066 EBITDAR 647 752 541 773 798 EBT -71 -11 -186 33 -
Slide 18: Disclaimer
Disclaimer Certain statements included in this presentation contain forward-looking statements, such as statements of future expectations. Although the statements provided are based on the best reasonable assumptions of management of Norwegian Air Shuttle ASA (“Norwegian”), the statements are based
Slide 19: norwegian
norwegian
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