Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Q3 2023 Earnings Presentation
22 slides from Norwegian Air Shuttle Asa's earnings presentation, Nov 2, 2023
Slide 1: Presentation of third quarter 2023
Presentation of third quarter 2023 2 November 2023
Slide 2: Highlights
Highlights Best-in-class operations during peak summer Number of passengers – regularity close to 100% and highest in close to two years this quarter – punctuality 80.1% with 97% arriving within one hour – top three on-time European airline in Europe (Cirium) 6,484,756 Operating result (EBIT) NOK 2,
Slide 3: Delivering on record strong summer
Delivering on record strong summer Traffic – PAX per month, load factor and yield 1.04 Delivering successful operations in 3,0 00 105 .0% busiest travel season – serving customers solely with 100 .0% attractive Norwegian product 2,5 00 0.94 2,310 95. 0% 2,145 0.88 2,030 2,026 2,0 00 1,903 92% 0.87 9
Slide 4: Satisfactory booking momentum into winter season
Satisfactory booking momentum into winter season 7-day rolling sales figures (abs) – All markets2) Bookings stabilising after holiday season 500 ,000 Momentum slightly lower, as expected into low season 400 ,000 Satisfactory bookings from corporate travelling and Christmas holiday planning 300 ,000
Slide 5: Delivering market-leading operations
Delivering market-leading operations Top European airline Ranked top three most on-time airlines in Europe in Q3 (Cirium) Regularity close to 100%, the highest in almost two years Punctuality significantly improved from last year – 80.1% in busiest travel season, 97% arrival within one hour Red Hand
Slide 6: Best-in-class operations driving market share
Best-in-class operations driving market share Avinor terminal PAX – Norway int. & domestic (Jan-19 indexed) Norwegian flown PAX – Norway int. & domestic (Jan-19 indexed) 150 150 125 125 100 100 0% growth (Sep-23 vs Sep-22) +10% growth (Sep-23 vs Sep-22) 75 75 50 50 Jan Feb Mar Apr May Jun Jul Aug Se
Slide 7: Financial results for Q3 2023
Financial results for Q3 2023
Slide 8: Quarterly financial highlights
Quarterly financial highlights Revenues Unit revenue - total Passenger traffic (million RPK) 0.82 9,133 0.78 0.76 7,934 Unit revenue all-time high 7,348 – up 4% from record-high Q3 2022 Ancillary NOK 198 per pax – up from NOK 172 last year Q3 2022 Q2 2023 Q3 2023 Q3 2022 Q2 2023 Q3 2023 Profits EBIT
Slide 9: Q3 earnings – Historically high operating profit
Q3 earnings – Historically high operating profit Chng. NOK million Q3 2023 Q3 2022 (YoY) Passenger revenue 7,229 5,936 Ancillary passenger revenue 1,285 1,047 Other revenue 261 133 Total operating revenue 8,776 7,116 +23% Unit revenue up 4%, capacity up 20% Personnel expenses 1,001 687 Aviation fuel
Slide 10: Robust balance sheet into winter season
Robust balance sheet into winter season 30 Sep. 30 Jun. Chng. NOK million 2023 2023 (QoQ) Intangible assets 2,125 2,113 Net interest-bearing debt Tangible assets 14,765 13,669 30 Sep. 30 Jun. Chng. Total non-current assets 17,596 16,450 +7% Four new leased aircraft NOK million 2023 2023 (QoQ) Receiv
Slide 11: Cash flow – improved liquidity position into winter
Cash flow – improved liquidity position into winter NOK million Opening balance (30 Jun. 2023) 9,349 Holdback at 38% – down from 56% at Q3 2022 Strong operating profit – increase from previous quarter with Operating activities +1,212 normal seasonality Lower forward bookings per seasonality Excess l
Slide 12: The way forward
The way forward
Slide 13: Retaining cost focus amidst macro headwinds
Retaining cost focus amidst macro headwinds Costs are affected by FX and inflation Reducing capacity to minimise losses during winter Unit cost (CASK) excl. fuel Capacity (billion ASKs) 4,0 00 3.71 3.53 5% -4% 3,5 00 3.21 6% 3,0 00 30-40% reduction 2,5 00 2,0 00 0.41 0.39 1,5 00 1,0 00 500 0 Q3 2022
Slide 14: Successful cost initiatives driving improvements in 2023
Successful cost initiatives driving improvements in 2023 Operations Significant fuel savings with smart flying On-time performance – 6.5 p.p. improvement from Q3 last year – key to minimise cost related to crew, fuel, handling, ATC charges and EU261 Crew efficiency enhanced – block hours (BLH) up 6%
Slide 15: Sustainable profitability through additional initiatives
Sustainable profitability through additional initiatives Operations Adding new crew bases in 2024 Continuously pushing for improved on-time performance and regularity New ground handling agreements at improved terms Heavy engine maintenance vendor change – significant savings Modern self-service too
Slide 16: Securing modern fleet for the long-term
Securing modern fleet for the long-term Securing fleet for 2024 Fleet increasing to appr. 90 aircraft next summer – extended leases for three 737 NGs in third quarter Limiting impact from Boeing 2024 delivery delays 100 – mitigating initiatives include potential additional lease extension 10 30 Comp
Slide 17: Outlook
Outlook Q4 2023 Q1 2024 Q2 2024 Capacity growth1) c. 3% 0% – 5% 15% – 20% FY 2023 FY 2023 Operating profit (EBIT)2) NOK 1.8 – 2.0 billion3) $ Unit cost excl. fuel2) 0.47 – 0.48 1) Available seat kilometres (ASK) vs. same period last year 17 2) Assuming current market rates for period – Jet fuel 930
Slide 18: Summary
Summary Strong brand loyalty and robust operations Leading operations vs. peers – top on-time European airline and strong regularity Increasing market share in leisure and corporate market – continuing to sign new corporate agreements Well prepared for winter season Bookings encouraging while macro
Slide 19: Fly Norwegian
Fly Norwegian Book tickets at Norwegian.com
Slide 20: Appendix
Appendix
Slide 21: 20 largest shareholders as of 30 September 2023
20 largest shareholders as of 30 September 2023* Name Country Number of shares Per cent 1 Geveran Trading Company, Ltd. Cyprus 134,010,512 13.9 % 2 Sundt AS Norway 88,892,265 9.2 % 3 Folketrygdfondet Norway 44,573,605 4.6 % 4 Silver Point Capital, L.P. United States 35,964,623 3.7 % 5 Nordnet Bank A
Slide 22: Disclaimer
Disclaimer Certain statements included in this presentation contain forward-looking statements, such as statements of future expectations. Although the statements provided are based on the best reasonable assumptions of management of Norwegian Air Shuttle ASA (“Norwegian”), the statements are based
Norwegian Air Shuttle — Q3 2023 Earnings Presentation on 6ix