Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Q2 2008 Earnings Presentation
8 slides from Norwegian Air Shuttle Asa's earnings presentation, Jul 17, 2008
Slide 1: Double-digit revenue growth continues in Q2 2008
Norwegian Air Shuttle ASA 2nd Quarter Presentation July 17th 2008 CEO Bjø Bjørn Kjos Double-digit revenue growth continues in Q2 2008 • MNOK 1,551 in total revenue, 52 % growth since last year – Domestic Revenue: MNOK 560 (+ 22 %) – International Revenue: MNOK 993 (+ 77 %) 1800 1600 +52 % 1400 1200
Slide 2: EBITDA margin heavily affected by the soaring fuel price
EBITDA margin heavily affected by the soaring fuel price – Norwegian’s core operation with positive EBITDA result of MNOK 28 – Spot price of fuel up 82 %; equivalent to an additional fuel bill of MNOK 200 – One-offs of MNOK 48 EBITDA development Q2 EBTIDA Q2 08 breakdown 220 220 Q2 2008 EBITDA* +206
Slide 3: Net change in cash of MNOK -13
Net change in cash of MNOK - 13 • Cash Flows from operations MNOK 99 – Net CF from operating activities of was affected by the operating loss, different advance booking pattern and a larger share of charter sales • Cash Flows from investing activities MNOK -106 – New aircraft and upgrade of existing
Slide 4: Continued strong foothold on key domestic routes
4.3 million passengers carried by Norwegian during first half of 2008 - an increase of 50 % Second Quarter 2008 First Half 2008 2 500 5 000 50 % 2 000 4 000 1 500 3 000 1 000 2 000 500 1 000 0 0 Q2 04 Q2 04 Q2 05 Q2 05 Q2 06 Q2 06 Q2 07 Q2 07 Q2 08 Q2 08 Q2 04 H1 04 Q2 05 H1 05 Q2 06 H1 06 Q2 07 H1
Slide 5: Significant growth in ancillary revenue
Significant growth in ancillary revenue • Better products and better fee structure • Fully implementet on all routes in 2008 • Increased ancillary revenues expected going forward 81 % 50 50 81 % 49 45 45 47 40 40 35 35 30 30 25 27 25 26 20 20 15 15 10 10 5 5 0 0 Q2 07 Q2 07 Q2 08 Q2 08 H1 07 H1 08 H
Slide 6: Cost reducing initiatives
Cost reducing initiatives norwegian.no • Renegotiations of supplier agreements • Voluntary salary reduction in exchange for stock options • Route portfolio adjustments • Strengthening Norwegian domestic operation • Cooperation with Sterling Ålesund Cost reducing initiatives norwegian.se • Ground ine
Slide 7: Codeshare agreement with Sterling; Expectations for remaining 2008
Codeshare agreement with Sterling • Norwegian will operate most flights out of Oslo • Sterling will operate most southbound flights out of Stockholm • Rationale: – Reducing excess capacity – Improved time table – Reducing operational costs Code share Airport served by DY and NB Code share route oper
Slide 8: Norwegian operates 159 routes to 87 destinations
Norwegian operates 159 routes to 87 destinations 8
Norwegian Air Shuttle — Q2 2008 Earnings Presentation on 6ix