Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — H1 2020 Earnings Presentation
21 slides from Norwegian Air Shuttle Asa's earnings presentation, Aug 28, 2020
Slide 1: Norwegian Air Shuttle ASA First half 2020 Presentation
Photo: Jon Ingemundsen, Stavanger Aftenblad Norwegian Air Shuttle ASA First half 2020 Presentation 28 August 2020
Slide 2: Agenda
Agenda 1 Business Update Jacob Schram, CEO 2 First half 2020 financial results update Geir Karlsen, CFO 3 Building a new business platform Jacob Schram, CEO 4 Q&A Jacob Schram, CEO and Geir Karlsen, CFO 2
Slide 3: Highlights first half of 2020
Highlights first half of 2020 Operated 7-8 aircraft in domestic Norway from April to maintain critical infrastructure COVID-19 71% reduction in passengers yoy in the first half of 2020 (-99% in Q2 yoy) Reduced cost-base, furloughed over 80% of employees, delivered 10 sold aircraft, terminated Extens
Slide 4: Business update
Business update
Slide 5: Extensive actions taken immediately as the crisis escalated
Extensive actions taken immediately as the crisis escalated Operations disrupted as countries closed down Immediate operational Grounded 140 aircraft in April, maintained only critical infrastructure in Norway with actions 7-8 aircraft in operation Over 80 % of all employees furloughed Employees Swe
Slide 6: The new Norwegian business platform
The new Norwegian business platform MANTRA Who we are and what we want STRATEGY STRUCTURE One logic and simplified structure across the Our internal compass company LEADERS & MANAGEMENT GOVERNANCE & OPERATING MODEL Fewer and right leaders at the right places New leadership and operational arenas to
Slide 7: Financials
Financials
Slide 8: Fleet reduced by 16 aircraft since end of 2019
Fleet reduced by 16 aircraft since end of 2019 164 164 162 161 156 10 10 11 11 147 11 787-8/9 Owned 140 140 140 22 24 11 25 26 26 11 11 11 787-8/9 Leased 14 14 26 14 14 4 4 26 26 26 737 MAX 8 Owned 4 14 4 4 14 4 14 14 14 737 MAX 8 Leased 52 51 4 4 4 47 45 40 737-800 Owned 30 30 30 30 737-800 Leased
Slide 9: Most of operations grounded in Q2 2020
Most of operations grounded in Q2 2020 99% reduction in production (ASK) and 50% load factor Only seven to eight short-haul aircraft operated during the quarter 71% reduction in passengers yoy in the first half (-99% in Q2 yoy) 35 ASK (billion) Load Factor 100% 87.8 % 87.7 % 86.8 % 88.0 % 85.2 % 90%
Slide 10: Income statement H1
Income statement H1 NOK million H1 2020 H1 2019 Passenger revenue 5,141 16,200 Ancillary passenger revenue 1,245 3,209 Other revenue 753 765 Total operating revenue 7,138 20,173 Personnel expenses 2,086 3,422 Aviation fuel 1,850 6,285 Airport and ATC charges 627 2,002 Handling charges 1,011 2,562 Te
Slide 11: Financial position H1
Financial position H1 30 JUNE 31 DEC NOK million 2020 2019 Intangible assets 2,230 2,871 Tangible fixed assets 68,274 66,379 Fixed asset investments 1,038 1,485 Total non-current assets 71,542 70,734 Assets held for sale 268 1,205 Assets held for sale: Inventory 155 176 One 737-800 Receivables 7,048
Slide 12: Cash flow H1
Cash flow H1 NOK million H1 2020 H1 2019 Profit before tax -4,792 -1,866 Paid taxes -6 -12 Depreciation, amortization and impairment 3,296 3,122 Changes in air traffic settlement liabilities -3,437 4,465 Changes in receivables 3,085 -5,930 Other adjustments 2,464 1,149 Net cash flows from operating
Slide 13: Strengthen balance sheet & liquidity
Strengthen balance sheet & liquidity ACTIONS COMPLETED IN H1 2020 ACHIEVED END OF H1 ACTIONS AFTER H1 Lease rates cut by 20% on avg. Waived lease-payments of Lower NOK 3.7 bn total impact USD 0.3 bn from April 2020 Bonds on equity from conversion lease cost Improved equity by to March 2021, to be se
Slide 14: Next phase of financial restructuring
Next phase of financial restructuring AREAS ACTIONS NEEDED • Right-size fleet to demand Fleet • Legal claim re PDP’s and losses related to aircraft disruptions • Continue process to secure Strengthen Funding liquidity including ongoing dialogues with governments balance sheet and liquidity to ramp-u
Slide 15: Building a new business platform
Building a new business platform
Slide 16: Three stages of our journey
Three stages of our journey GREAT enterprise within future mobility From 2025 to 2030 GOOD organisation within the aviation industry From fall and until 2025 LICENSE to operate Until summer 2021 16
Slide 17: The new Norwegian business platform
The new Norwegian business platform MANTRA Who we are and what we want STRATEGY STRUCTURE One logic and simplified structure across the Our internal compass company LEADERS & MANAGEMENT GOVERNANCE & OPERATING MODEL Fewer and right leaders at the right places New leadership and operational arenas to
Slide 18: New organizational structure implemented
New organizational structure implemented = Business Area = Support function = Business Driver CEO Jacob Schram Finance & Control People Geir Karlsen Guro Halvorsen Poulsen IT, Supply Chain & Communications & Process Improvement Public Affairs Knut Olav Irgens Høeg Anne-Sissel Skånvik Airline Airline
Slide 19: Strategy and business plan defined
Strategy and business plan defined Sales-oriented, sustainable & New & flexible personalized PEOPLE OFFER Institutionalise new CUSTOMER JOURNEY LEADERSHIP EXPECTATIONS • Customer journey excels points • New CBAs • Airline Ecosystem sales platform • Right sized admin support office • Leadership progr
Slide 20: Summary
Summary Significant cost reductions and actions to survive the crisis Crisis Agreed lease holiday with PBH-agreement to April 2021 and reduced fleet Management Successful financial restructuring secured through a government guarantee Secured sufficient cash for funding throughout 2020 Implemented ne
Slide 21: Fly Norwegian
Fly Norwegian Book tickets at Norwegian.com
Norwegian Air Shuttle — H1 2020 Earnings Presentation on 6ix