Norwegian Air Shuttle Asa · OSL:NAS

Norwegian Air Shuttle Asa — Q2 2013 Earnings Presentation

20 slides from Norwegian Air Shuttle Asa's earnings presentation, Jul 11, 2013

  1. Slide 1: Norwegian Air Shuttle ASA Q2 2013 Presentation

    Norwegian Air Shuttle ASA Q2 2013 Presentation July 11th 2013 CEO Bjørn Kjos CFO Frode Foss Photo: Chris Raezer 1

  2. Slide 2: Double digit revenue growth in Q2

    Double digit revenue growth in Q2 • Group revenues of MNOK 4,012 in Q2 2013 + 27 % 4 000 3 500 3 000 2 500 Domestic Revenue (MNOK) International Revenue (MNOK) 2 000 Total Revenues (MNOK) 1 500 1 000 MNOK 500 0 Q2 10 Q2 11 Q2 12 Q2 13 Revenues 2 032 2 725 3 170 4 012 Domes ti c revenue 766 982 1 017

  3. Slide 3: Pre-tax profit improved by 152 million in Q2

    Pre-tax profit improved by 152 million in Q2 EBITDAR MNOK 878 680 EBITDA MNOK 574 410 EBIT MNOK 446 322 Pre-tax profit (EBT) MNOK 277 125 Net profit MNOK 197 91 EBITDAR development Q2 EBT development Q2 900 300 878 800 277 700 200 680 600 100 125 500 MNOK MNOK 74 400 347 0 300 200 -100 100 144 -188

  4. Slide 4: EBT result from normal operations

    EBT result from normal operations MNOK 347 • Estimated long-haul start-up earnings effect MNOK 70 – Extra cost due to wet-lease (A340), low utilization & staff training MNOK 60 – Lower revenue due to smaller aircraft (A340) & price stimulation MNOK 10 • Earnings effect start-up LGW & ALC not include

  5. Slide 5: Ancillary revenue remains a significant contributor

    Ancillary revenue remains a significant contributor • Ancillary revenue comprises 11 % of Q2 revenues (target 15%) • NOK 80 per scheduled passenger (an increase of 2 % from last year) 5

  6. Slide 6: Cash & cash equivalents of NOK 2.9 billion

    Cash & cash equivalents of NOK 2.9 billion Cash flows from operations in Q2 13 MNOK 1 084 (MNOK 571) Cash flows from investing activities in Q2 13 MNOK -702 (MNOK -478) Cash flows from financing activities in Q2 13 MNOK 96 (MNOK -6) Cash and cash equivalents at period-end MNOK 2 923 (MNOK 1574) Cond

  7. Slide 7: Equity improved by MNOK 752 compared to last year

    Equity improved by MNOK 752 compared to last year • Total balance of NOK 14.4 billion • Net interest bearing debt NOK 2.8 billion (2.8) • Equity of NOK 2.5 billion at the end of the second quarter • Group equity ratio of 17 % (17 %) 14 000 Long term 12 000 liabilities 4 855 Non-current 10 000 assets

  8. Slide 8: Traffic growth of 35% surpasses capacity increase – load up 1 p.p.

    Traffic growth of 35% surpasses capacity increase – load up 1 p.p. • Unit revenue (RASK) down 6 % • Average flying distance up 9 % 9 000 100 % ASK Load Factor + 34 % 8 000 79 % 79 % 78 % 78 % 78 % 78 % 76 % 77 % 75 % 80 % 7 000 67 % 6 000 60 % 5 000 4 000 40 % Available Seat KM (ASK) 3 000 2 000 20

  9. Slide 9: An increase of more than 1 million passengers in Q2

    An increase of more than 1 million passengers in Q2 • 5.5 million passengers + 23 % 5.00 4.00 3.00 2.00 Passengers (million) 1.00 0.00 Q2 04 Q2 05 Q2 06 Q2 07 Q2 08 Q2 09 Q2 10 Q2 11 Q2 12 Q2 13 Pax (mill) 0.6 0.9 1.3 1.6 2.3 2.8 3.2 4.0 4.5 5.5 Slide: 9

  10. Slide 10: Continued strong international growth in Q2

    Continued strong international growth in Q2 + 310,000 pax 40 % 35 % 30 % + 211,000 pax 25 % + 273,000 pax 20 % 15 % + 130,000 pax + 176,000 pax + 168,000 pax 10 % 5% 0% Marketshare Marketshare Marketshare Marketshare Marketshare Int'l Marketshare Int'l Oslo Airport Stockholm Airport Copenhagen Airpo

  11. Slide 11: Sweden an increasingly important market

    Sweden an increasingly important market • 76 routes to 60 destinations • 22% market share at Stockholm Arlanda 11

  12. Slide 12: Q2 launch bases performing beyond expectations

    Q2 launch bases performing beyond expectations Long-Haul Q2 Load London – Med Q2 Load 96% 85% LONDON (Gatwick) NCE SPU BCN DBV FCO PMI IBZ ALC FAO AGP ACE TFS FUE LPA 12

  13. Slide 13: Unit cost down in Q2

    Unit cost down 9 % in Q2 • Unit cost excluding fuel down 8 % 0.50 Fuel share of CASK 0.45 -9% CASK excl fuel Operating cost EBITDA level per ASK (CASK) 0.12 0.40 0.15 0.15 0.14 0.35 -8% 0.30 0.35 0.32 0.31 0.29 0.25 Q2 10 Q2 11 Q2 12 Q2 13 Cost per ASK (CASK) (NOK) 0.47 0.46 0.46 0.42 CASK ex. fuel

  14. Slide 14: Norwegian overtook easyJet on unit cost in Q2

    European competitor benchmark: Norwegian overtook easyJet on unit cost in Q2 Sources: Norwegian Q2 2013 report (period displayed July 2012 – June 2013), SAS Group Interim Report November 2012-April 2013 (period displayed May 2012 – April 2013, Scandinavian Airlines (SK) only), Finnair Plc. Annual Re

  15. Slide 15: Aiming for new and reduced FY CASK NOK 0.25 excluding fuel

    Aiming for new and reduced FY CASK NOK 0.25 excluding fuel Scale economies New more efficient aircraft Growth adapted to int’l markets • Uniform fleet of Boeing 737-800s • Flying cost of 737-800 lower than 737-300 • Cost level adapted to local markets • Overheads • 737-800 has 38 “free” seats • Outs

  16. Slide 16: Long-haul operational / financial targets

    Long-haul operational / financial targets • Start-up costs incurred ahead of operations • Efficient scale of the operation from 2014 • CASK target NOK 0.35 – 0.30 by 2015/16 • Cash-positive case from 2013 • Dreamliner on long-haul soon – 787 #1 on long-haul from mid-August – 787 #2 on long-haul from

  17. Slide 17: Current committed fleet plan

    Current committed fleet plan • 14 new 737-800 deliveries in 2013 – 7 delivered by end of Q2 • 3 new 787-8 Dreamliner expected in 2013 – 1 delivered by end of Q2 17

  18. Slide 18: Expectations for 2013 (Group)

    Expectations for 2013 (Group) • Business environment – Economic uncertainty in parts of Europe – Seasonal fluctuations – Yield pressure from capacity investment • Production – The company expects a production growth (ASK) in excess of 30% (previously “in excess of 25%”) • Increasing the fleet by add

  19. Slide 19: Norwegian offers scheduled routes to destinations in 38 countries

    Norwegian offers 383 scheduled routes to 122 destinations in 38 countries.

  20. Slide 20: Norwegian Air Shuttle ASA contact details

    Norwegian Air Shuttle ASA Mailing address P.O. Box 113 Telephone +47 67 59 3000 Organization number NO 965 920 358 MVA Nomgiss0lFomebu Telefax +47 67 59 3001 Visiting address Oksengyveien 3 Internet www.norwegian.com

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