Norse Atlantic Asa · OSL:NORSE
Norse Atlantic Asa — Norse Atlantic Airways — Investor Presentation (February 2023)
21 slides from Norse Atlantic Asa's investor presentation, Feb 28, 2023
Slide 1: Norse Atlantic Airways
Norse Atlantic Airways Company presentation, 28 February 2023
Slide 2: Ready for take-off in 2023
Ready for take-off in 2023 Building a leading low-cost transatlantic airline in two years: summer 2023 first season with scale • All regulatory approvals and airport slots secured to operate from EEA and UK to US Ready to go • Ramping-up transatlantic operations from current 3 aircraft per day to 10
Slide 3: Investment Highlights
Investment Highlights The leading low-cost long-haul transatlantic airline Strong rebound in transatlantic travel expected to continue Modern and fuel-efficient fleet at historically low costs Strong operational performance and progress Target profitability from H2-2023
Slide 4: Norse Atlantic Airways – The Explorers' Airline
Norse Atlantic Airways – The Explorers’ Airline A profitable low cost long haul transatlantic airline • Established and founded in March 2021 by Bjørn Tore Larsen, CEO and major shareholder. • Point-to-point transatlantic flights at affordable fares • Headquartered in Arendal, Norway and publicly tr
Slide 5: We've been busy, but only just getting started…
We’ve been busy, but only just getting started… Founding and IPO Norwegian AOC1 First flight UK AOC¹ Feb 2021 Mar/Apr Aug 2021 Dec 2021 Mar 2022 Apr 2022 Jun 2022 Aug 2022 Oct 2022 Nov 2022 Feb 2023 Norse 2021 Signs lease Norse Norse Norse agrees First flight Inaugural Norse USD 30m Start of UK Atla
Slide 6: Significant value created since inception
Significant value created since inception Early investments are paying off Established UK subsidiary is a game changer • Unique in the industry: a fully-fledged, low-cost • UK AOC and US DoT approval granted long-haul operation • Secured valuable slots at LGW and JFK • Brand recognition is positive
Slide 7: Norse available for sale seats has doubled
Norse available for sale seats has doubled Norse S23 routes available for sale Norse UK on sale 14th Feb 2023 • Norse UK will serve 7 US destinations • All from London Gatwick • Norse becomes largest transatlantic operator at LGW 5 New Destinations S23 LAX MCO JFK OSL FLL LGW BER CDG FCO IAD BOS SFO
Slide 8: Forward bookings increase as network expands
Forward bookings increase as network expands Rolling seven days bookings in USDm and number of passengers by booking date Launch of OSL Launch initial LGW Sale² Sale³ Sale³ SAS strike ticket sales ticket sales¹ Launch BER • Marketing initially ticket sales done through media and word of mouth Launch
Slide 9: Fares increasing as summer network is launched
Fares increasing as summer network is launched Gross ticket revenue per segment Based on booking date Gross revenue per segment R7 Gross Fare • Increasing selling windows allows for higher yields - S22 season on sale ~3 months in advance - W22 season on sale ~4 months in advance - S23 on sale ~5 mon
Slide 10: Market is approaching pre-COVID levels
Market is approaching pre-COVID levels World commercial flights (thousands of flights) Comments 140 • The market has rebounded, although later than 100% originally expected, and remains below 2019 levels World commercial flights (indexed) 120 - New Delta/ Omicron COVID wave during winter 21/22 100 8
Slide 11: UK market is key to transatlantic travel
UK market is key to transatlantic travel London twice the size market as any other; Paris a clear second with twice the size of the next (Rome) $12,00 Yield (Avg. by EU base for subset of routes, USD) ZRH $10,00 LON • London by far the largest European hub for US traffic, and MUC also has among the
Slide 12: Modern and more environmentally friendly aircraft
Modern and more environmentally friendly aircraft Modern and homogenous fleet • Homogenous fleet of modern 787-9s and -8s • Freshly checked aircraft – 3 years until next service Superior environmental performance • 25% lower CO2 emissions 50% quieter than the previous generation of aircraft still i
Slide 13: Lease contracts increasing in value
Lease contracts increasing in value Shortage of supply of Boeing Dreamliners Timing is everything: NPV of remaining lease advantage NPV at various rates and WACC = 10%, USDm 595 • Norse lease rates are capped at approximately 50% 487 379 of historical cost 271 • Current lease rates for 787-9s USD 86
Slide 14: The 5 pillars of Norse commercial strategy
The 5 pillars of Norse commercial strategy 1 2 3 4 5 Best value Smart Business Ancillary Best-in-class cargo Revenue from economy fares Travel services product leases and charter Unlocking new areas Targeting cost- Ambition to be Wide-body aircraft Attractive lease-in of demand through conscious bus
Slide 15: Income statement
Income statement First flight 14 June; careful increase in production in H2 2022 ahead of full launch summer 2023 Income statement H2 2022 USD thousands 6 months 12 months 11 months¹ • Revenue $101.3m H2 2022 FY 2022 FY 2021 - $75.6m passenger revenue Revenue 101,296 104,269 - • 289k passengers at a
Slide 16: Balance sheet at 31 Dec
Balance sheet at 31 Dec Statement of financial position USD thousands 2022 2021 • Total cash $70m Non-current assets 958,394 119,550 - Aircraft lease deposits $20m on account with lessors Total current assets 131,846 134,960 Total assets 1,090,240 254,510 • Aircraft lease right-to-use asset $933m -
Slide 17: Cash flow statement
Cash flow statement USD thousands 6 months 12 months 11 months¹ H2 2022 H2 2022 FY 2022 FY 2021 • Operating cash outflow $56.5m Operating CF before WC (67,620) (84,803) (7,310) Working capital movement 11,118 8,007 1,773 • Working capital build-up due to ramp-up Operating cash flows (56,503) (76,796
Slide 18: Cash projections on-track
Cash projections on-track Cash flow actual versus projected in equity raise pitch presented Nov-22 (USDm) 350 Millions 300 250 200 150 100 50 - Presented Nov-22 Actual • Base case key assumptions: - Average monthly load factor 74% in 1H23 and 78% full-year 2023 - Average ticket price peaks in the Ju
Slide 19: Summary and outlook
Summary and outlook Once in a lifetime opportunity to build a profitable long haul low cost transatlantic airline Strategy and business • Unit costs in line with target (excl. fuel) and will further improve with increased scale case validated • Modern fuel-efficient fleet; lease contracts substantia
Slide 20: www.flynorse.com
a NORSE www.flynorse.com
Slide 21: Key financials since first flight
Key financials since first flight 14 June to 31 Jan 2023 Jun22 Jul22 Aug22 Sep22 Oct22 Nov22 Dec22 Jan23 Number of aircraft in fleet 11 13 13 13 14 14 15 15 Aircraft subleased out 2 4 4 4 4 4 5 5 ASK (millions) 54 248 505 663 567 293 384 397 RPK (millions) 44 212 349 373 338 145 233 206 Load factor
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