Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Q4 2006 Earnings Presentation
19 slides from Norwegian Air Shuttle Asa's earnings presentation, Feb 14, 2007
Slide 1: Norwegian (NAS) Q4 2006
Norwegian (NAS) Q4 2006 Bjørn Kjos (CEO) 14. February 2007 1
Slide 2: Strong revenue growth in Q4
Strong revenue growth in Q4 ● 760 MNOK in revenue, 43 % growth since last year ● 47 % international revenue, 53 % domestic revenue 43 % MNOK revenue 800 700 760 600 500 531 400 300 331 275 200 100 0 Q4 03 Q4 04 Q4 05 Q4 06 Revenue 275 331 531 760 Domestic revenue 248 223 300 404 International revenu
Slide 3: Quarterly earnings ex Warsaw base
Quarterly earnings of 35 MNOK ex Warsaw base ● Total earnings (EBITDA) of -17 MNOK (5 MNOK ) ● Earnings after tax of -15 MNOK (2 MNOK) 40 MNOK EBITDA 30 20 Invested 52 MNOK in Warsaw base 10 0 -10 -20 -30 -40 Q403 Q404 Q405 Q406 EBITDA MNOK -10 -43 5 -17 Earnings after tax MNOK -12 -31 2 -15 EBITDA
Slide 4: Continued revenue growth in 2006
Continued revenue growth in 2006 ● 2.941 MNOK in turnover, 49 % increase since last year ● Strong revenue growth from international expansion MNOK revenue 3 500 49 % 3 000 2 500 2 941 2 000 1 972 1 500 1 000 1 210 959 500 - 2003 2004 2005 2006 Revenue 959 1 210 1 972 2 941 Domestic revenue 892 830 1
Slide 5: Earnings ex Warsaw base
Earnings of 95 MNOK ex Warsaw base ● Total earnings (EBITDA) of 19 MNOK in 2006 (55 MNOK) ● Earnings after tax -13 MNOK in 2006 (27 MNOK) ● MNOK 106 from price increase on fuel MNOK EBITDA 135 110 85 Invested 75 MNOK in 60 Warsaw base 35 10 -15 -40 -65 -90 -115 -140 2003 2004 2005 2006 EBITDA MNOK -
Slide 6: Positive cash flow from operations
Positive cash flow from operations ● Positive cash flow of 76 MNOK from operations in 2006 (120) ● Negative cash flow of 122 MNOK from operations in Q4 (19) – from Warsaw base performance and heavy maintenance disbursement ● Investments: 2 aircraft 737-300 ● Financial activities: equity issue in Mar
Slide 7: Cabin factor reaching target level
Cabin factor reaching target level of 80 % ● 79 % Cabin factor in 2006 – absorbing production growth of 55 % ● Started 30 new routes during 2006 79 % 6000 78 % 80 % 75 % 5000 70 % 4000 67 % 65 % 62 % 3000 60 % 2000 55 % 1000 50 % 0 45 % 2003 2004 2005 2006 ASK Cabin Factor 7
Slide 8: More than 5 million passengers traveled with Norwegian in 2006
More than 5 mill passengers traveled with Norwegian in 2006 ● 5,1 million passengers in 2006, up 55 % from last year ● 2,7 million domestic and 2,4 million international pax 6000 55 % 5000 4000 59 % Thousand pax 3000 70 % 2000 1000 0 2003 2004 2005 2006 8
Slide 9: Norwegian continues to increase market share
Norwegian continues to increase market share ● 38 % market share on key domestic routes, 6 pp growth since last year ● Building new markets and competitive edge by offering a better product % Market Share 50 % 40 % 42 % 40 % 34 % 35 % 35 % 30 % 33 % 30 % 27 % 28 % 26 % 25 % 20 % 23 % 10 % 0% Bergen
Slide 10: Flying Norwegian is good for business
Flying Norwegian is good for business ● Corporate accounts increased 79 % in 2006 compared to last year ● Corporate customers signs up at an increasing rate as the product and schedule improves over time Corporate Accounts 450000 79 % 400000 350000 300000 250000 29 % 200000 150000 100000 50000 0 200
Slide 11: Still a guarantor for low fares
Still a guarantor for low fares ● Average prices are down 4 % compared to 2005 ● International prices are down 8 % due to heavy expansion ● Domestic prices are down 1 % compared to 2005 900 800 700 600 500 400 300 200 100 0 2004 2005 2006 International average price Domestic average price 11
Slide 12: Cost development
Cost development ● Unit cost of 0.54 in 2006 ● Cost level affected by higher fuel prices and one offs – Fuel price cost effect of 106 MNOK 0.76 0,75 0,7 0,65 Irregularities from heavy expansion : 0,6 0.59 Wet lease 0,55 0.55 Passenger service costs 0.54 One offs Fuel Termination cost on handling 0,5
Slide 13: Lower distribution costs
Lower distribution costs ● Distribution cost per sold ticket of NOK 16 in Q4 06 ● Annual distribution cost per sold ticket of NOK 19 in 2006 NOK per pax 45,0 35,0 25,0 15,0 5,0 Q4 03 Q4 04 Q4 05 Q4 06 13
Slide 14: Increased fleet and crew utilization
Increased fleet and crew utilization ● Crew utilization of 765 block ● Aircraft utilization of 10,4 block hours per crew per year, hours per plane per day, up 14 % up 10 % from last year from last year Block hours/crew/year Block hours/plane/day 800 10 700 9 600 8 500 7 6 400 5 300 4 2003 2004 2005
Slide 15: Lean organization
Lean organization ● Carrying approx 8,300 passengers per employee ● Approx 25 % growth since 2005 ( 6,600 ) Pax per average em ployee 9000 8000 7000 6000 5000 4000 3000 2003 2004 2005 2006 15
Slide 16: 3 years of expansion
3 years of expansion 2004 2005 2006 41 routes 54 routes 87 routes 12 aircraft 14 aircraft 22 aircraft 2,1 mill passengers 3,3 mill passengers 5,1 mill passengers 1 210 MNOK in revenue 1 972 MNOK in revenue 2 941 MNOK in revenue 445 employees and 1 560 employees and 1 670 employees and 3 base base ba
Slide 17: Continued expansion in 2007
Continued expansion in 2007 ● Another 2 planes on the way in ( 24 in production from May) ● Expected production increase in the magnitude of 30 to 40 % compared to last year (*) ● Mainly from international expansion on existing routes Mill ask 2500 2000 Domestic 1500 1000 International 500 0 Q106 Q2
Slide 18: Expectations for 2007
Expectations for 2007 Expected business environment: ● Increased competition on international routes Expected results: ● Unit cost for 2007 in the area of NOK 0,53 – At current fuel and currency levels, and flight program in Poland ● Increased revenue from third party sales Expected results Poland s
Slide 19: Plenty of opportunities
Plenty of opportunities 87 routes More than 1000 weekly departures
Norwegian Air Shuttle — Q4 2006 Earnings Presentation on 6ix