Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Q4 2008 Earnings Presentation
18 slides from Norwegian Air Shuttle Asa's earnings presentation, Feb 20, 2009
Slide 1: Norwegian Air Shuttle ASA 4th Quarter Presentation
Norwegian Air Shuttle ASA 4th Quarter Presentation February 20th 2009 CEO Bjørn Kjos
Slide 2: Double-digit revenue growth continues in Q4
Double-digit revenue growth continues in Q4 • Group revenues of MNOK 1,615 in Q4 2008, 41 % growth since last year – Domestic Revenue: MNOK 684 (+ 39 %) – International Revenue: MNOK 931 (+ 43 %) MNOK 2 000 1 800 + 41 % 1 600 1 400 1 200 1 000 800 600 400 200 0 Q4 05 Q4 06 Q4 07 Q4 08 Revenue (MNOK)
Slide 3: Underlying Group EBITDA result of MNOK +43
Underlying Group EBITDA result of MNOK +43 • Gross EBITDA result of MNOK -169 in Q4 (-36) • Group earnings of MNOK -202 before tax (MNOK -34) • Group earnings after tax of MNOK -149 (MNOK -22) EBITDA development Q4 EBITDA Q4 08 breakdown 150 MNOK 150 MNOK 100 100 Q4 2008 EBITDA Adjusted MNOK +43 50
Slide 4: Strong revenue growth in 2008
Strong revenue growth in 2008 • Annual turnover of MNOK 6,226 • 47% increase since last year MNOK 7000 47 % 6000 5000 4000 Domestic International 3000 Total revenue 2000 1000 0 2005 1 2006 2 2007 3 2008 4 Total revenue 1 972 2 941 4 226 6 226 Domestic 1054 1473 1791 2295 International 919 1468 2435
Slide 5: Pre-tax profit of MNOK 1 in 2008
Pre-tax profit of MNOK 1 in 2008 Extra fuel bill of MNOK 633 compared to 2007 price levels • EBITDA MNOK -208 (MNOK +208) • Earnings after tax of MNOK -6 (MNOK +85) • EBITDA Adjusted MNOK +424 MNOK 650 2008 EBT Adjusted MNOK +633 550 450 350 MNOK 529 added fuel cost 250 529 150 50 113 104 Unrealized
Slide 6: Seasonal variations and fuel effect
Seasonal variations and fuel effect • Large seasonal variations • The average Jet A-1 spot price increased by NOK 629 compared to Q4 last year – Equivalent to MNOK 50 in extra fuel costs in Q4 Quarterly Revenues MNOK 2 000 NOK 6 500 1 800 1 600 2008 6 000 1 400 5 500 Revenue MNOK 1 200 2007 1 000 5
Slide 7: Net change in Cash and Cash Equivalents in Q4
MNOK 129 Net change in Cash and Cash Equivalents in Q4 • Cash Flows from Operations in Q4 2008 MNOK -133 (+9) – Reduced EBITDA result (MNOK -224) • Cash Flows from Investing Activities in Q4 2008 MNOK +165 (-311) – Prepayment on Boeing contract – Sale of hedge contract • Cash Flows from Financing Ac
Slide 8: Strong balance sheet
Strong balance sheet • Equity increased from MNOK 508 at the beginning of the year to MNOK 875 at the end of the fourth quarter • Group equity ratio of 28 % Consolidated changes in equity Unaudited Year ended Dec 31 (NOK 1 000) 2008 2007 Equity - Beginning of period 508 273 260 727 Share issue 382 0
Slide 9: Production growth of 53% in 2008
Production growth of 53% in 2008 • 79% load factor in 2008- down one percentage point from last year – New bases at Copenhagen and Rygge – More domestic and business production ASK 16 000 100 % (mill) 90 % 14 000 78 % 79 % 80 % 79 % 80 % 12 000 70 % 10 000 60 % ASK (mill) 8 000 50 % Load Factor 40 %
Slide 10: More than 9 million passengers in 2008 (+ 32%)
More than 9 million passengers in 2008 (+ 32%) • Domestic passenger growth: 20%* • International passenger growth: 42%** Pax 12 000 (000) 10 000 32 % 8 000 International Passengers 6 000 Domestic Passengers 4 000 2 000 0 (000) 2005 2006 2007 2008 Total Passengers 3 290 5 105 6 934 9 137 Domestic Pas
Slide 11: Steady increase in market share in 2008
Steady increase in market share in 2008 43 % on key domestic routes (+ 2 pp) • More frequencies attract business travelers • Product enhancements • Norwegian Reward increases domestic transfer • Only from OSL – larger market share when Rygge is included 50 % 45 % 45 % 45 % 44 % 44 % 42 % 41 % 40 % 4
Slide 12: Even stronger foothold on key domestic routes in Q4 2008
Even stronger foothold on key domestic routes in Q4 2008 • More frequencies and an enhanced business product has given results • Only from OSL – larger market share when Rygge is included 50 % 47 % 46 % 45 % 43 % 40 % 38 % Q4-08 2008 35 % 30 % 25 % Tromsø Stavanger Trondheim Bergen
Slide 13: Unit cost down 8% (Ex. Fuel)
Unit cost down 8% (Ex. Fuel) • Unit cost of 0.56 in 2008 – Up 6 % since last year • Unit cost ex. Fuel was 0.37 - Down 8 % since last year – FX Effects (leasing, handling charges, airport charges, technical expenses) – Increased stage length – Ongoing cost cutting program NOK 0,70 0,65 0,60 0,56 0,5
Slide 14: Significant growth in ancillary revenue
Significant growth in ancillary revenue • Strong focus and improved products • Increased ancillary revenues expected going forward NOK 90 NOK 90 80 80 70 70 41 % 60 69 % 60 50 50 40 40 30 30 20 20 10 10 0 0 (pr. pax) 2007 2008 (pr. pax) Q4 07 Q4 08 Ancillary Revenue 33 56 Ancillary Revenue 45 64 All
Slide 15: Satisfactory utilization levels
Satisfactory utilization levels • But still upside potential to achieve ”best in class” performance Aircraft utilization/ day Passengers per employee Hrs 14 Pax 12 000 12 10 000 10 2005 8 000 2005 8 2006 2006 2007 6 000 2007 6 2008 2008 4 000 4 2 2 000 0 0 Norw egian Most 2nd Most 3rd Most Head-on N
Slide 16: Fleet update – Deliveries 2009
Fleet update – Deliveries 2009 • New Boeing 737-800 aircraft – In total 11 new Boeing 737-800s • H1: 5 5 leased (recently negotiated) • H2: 6 4 leased (committed in May 2007) & 2 owned • Redelivery of the remaining 4 MD-80 aircraft in Q3 • By year-end 2009 Norwegian will operate 18 Boeing 737-800 co
Slide 17: Expectations for 2009
Expectations for 2009 • Business Environment – Expecting softening demand due to slowdown in the business environment – Deteriorating macro conditions – Seasonal fluctuations • Cost Development – Unit cost in the area of NOK 0,53 for the Group • Fuel price dependent • Currency dependent • Based on t
Slide 18: Norwegian offers 176 routes to 86 destinations
Norwegian offers 176 routes to 86 destinations
Norwegian Air Shuttle — Q4 2008 Earnings Presentation on 6ix