Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Q4 2012 Earnings Presentation
30 slides from Norwegian Air Shuttle Asa's earnings presentation, 2013
Slide 1: Norwegian Air Shuttle ASA
Norwegian Air Shuttle ASA
Slide 2: Double digit revenue growth in Q4
Double digit revenue growth in Q4 • Group revenues of MNOK 3,106 in Q4 2012 Slide: 2
Slide 3: Pre-tax profit improved by 211 million in Q4
Pre‐tax profit improved by 211 million in Q4 EBITDAR MNOK 296 216 EBITDA MNOK 53 2 EBIT MNOK ‐52 ‐85 Pre‐tax profit (EBT) MNOK 23 ‐188 Net profit MNOK 24 ‐133 EBITDAR development Q4 EBT development Q4 Slide: 3
Slide 4: Underlying EBT improvement of MNOK 215 in Q4
Underlying EBT improvement of MNOK 215 in Q4 • Realized fuel price up 3 % since last year – equivalent to MNOK 67 4
Slide 5: Revenue growth of 2.3 billion in 2012
Revenue growth of 2.3 billion in 2012 • Annual turnover MNOK 12,859 Slide: 5
Slide 6: 2012 pre-tax profit improvement of 457 million
2012 pre‐tax profit improvement of 457 million EBITDAR MNOK 1 822 1 540 EBITDA MNOK 789 710 EBIT MNOK 403 416 Pre‐tax profit (EBT) MNOK 623 166 Net profit MNOK 457 122 EBITDAR development (full year) EBT development (full year) Slide: 6
Slide 7: 2012 underlying pre-tax profit improvement of MNOK 725
2012 underlying pre‐tax profit improvement of MNOK 725 • Realized fuel price up 7 % since last year – equivalent to MNOK 330 7
Slide 8: Ancillary revenue remains a significant contributor
Ancillary revenue remains a significant contributor • Ancillary revenue comprises 11 % of 2012 revenues • NOK 82 per scheduled passenger (an increase of 2 % from last year) 8
Slide 9: Cash & cash equivalents of NOK 1.7 billion
Cash & cash equivalents of NOK 1.7 billion Cash flows from operations in Q4 12 MNOK 447 (MNOK ‐73) Cash flows from investing activities in Q4 12 MNOK ‐1 545 (MNOK ‐483) Cash flows from financing activities in Q4 12 MNOK 1 093 (MNOK 232) Cash and cash equivalents at period‐end MNOK 1 731 (MNOK 1105)
Slide 10: Equity improved compared to last year
Equity improved by MNOK 475 compared to last year • Total balance of NOK 11.9 billion • Net interest bearing debt NOK 3.8 billion • Equity of NOK 2.4 billion at the end of the fourth quarter • Group equity ratio of 20 % (22 %) 12 000 Long term 10 000 liabilities Non‐current 4,654 assets 6,231 8 000
Slide 11: Long-term financing 2013 on track
Long‐term financing 2013 on track • Planned external financing 2013: MNOK +/‐ 2,200 – Committed / arranged financing: MNOK 1,500 • Year‐end 2013 net debt increase (long‐term) MNOK +/‐ 1,100 – Repayment of debt – Off‐balance sheet sale & leaseback 11
Slide 12: Traffic growth in 2012
Traffic growth of 17 % in 2012 • Unit revenue (RASK) up 4 % • Average flying distance up 5 % + 18 % 100 % ASK Load Factor 25 000 80 % 79 % 79 % 78 % 79 % 78 % 77 % 79 % 80 % 20 000 67 % 62 % 60 % 15 000 10 000 40 % Available Seat KM (ASK) 5 000 20 % Load Factor 0 0% 2003 2004 2005 2006 2007 2008 200
Slide 13: 17.7 million passengers in 2012
17.7 million passengers in 2012 • An increase of 2.0 million passengers 18.0 + 13 % 16.0 14.0 12.0 10.0 8.0 6.0 Passengers (million) 4.0 2.0 0.0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Pax (mill) 1.2 2.1 3.3 5.1 6.9 9.1 10.8 13.0 15.7 17.7 Slide: 13
Slide 14: Continued strong international growth in Q4
Continued strong international growth in Q4 Sources: Avinor, Swedavia, Copenhagen Airports, Finavia, Gatwick Airport, Aena
Slide 15: Unit cost ex fuel down in 2012
Unit cost ex fuel down 3 % in 2012 • Unit cost including fuel down 1 % – 7 % higher NOK denominated fuel price – USD/NOK up 4 % y.o.y. (maintenance, fuel & leasing) 0.50 Fuel share of CASK 0.45 0.10 CASK excl fuel Operating cost EBITDA level per ASK (CASK) 0.40 0.12 0.15 0.14 0.35 0.38 0.30 0.34 0.3
Slide 16: Unit cost ex fuel down in Q4
Unit cost ex fuel down 8 % in Q4 • Unit cost including fuel down 6 % – 4 % higher NOK denominated fuel price 0.50 Fuel share of CASK 0.45 0.09 CASK excl fuel Operating cost EBITDA level per ASK (CASK) 0.11 0.40 0.15 0.15 0.35 0.40 0.36 0.30 0.33 0.30 0.25 Q4 09 Q4 10 Q4 11 Q4 12 Cost per ASK (CASK)
Slide 17: Cost control is a prerequisite for survival
Cost control is a prerequisite for survival 2012 Bankruptcies On the verge… Government bailouts ? 17
Slide 18: Aiming for the "Comfort Zone"
Norwegian positioned in the cost “Break‐even Belt” – a prerequisite for self sustainability Aiming for the “Comfort Zone” Sources: SAS Group Q3-2012 report & Annual Report 2011 (cost displayed October 2011 – September 2012), Finnair Plc. Annual Report 2011, Ryanair Annual Report 2012, easyJet year-e
Slide 19: Creating and securing jobs in established and new markets
Creating and securing jobs ‐ both in established and new markets Thai base UK base Spanish bases 19
Slide 20: Reaching the aim of FY CASK NOK 0.30 excluding fuel
Reaching the aim of FY CASK NOK 0.30 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 • Outsourcing
Slide 21: Moving towards a global free market
Moving towards a global free market European Common Aviation Area (ECAA) ASEAN Single Aviation Market (ASEAN‐SAM) Level of Liberalization (full open skies within Europe) (full open skies within ASEAN) (2015) ECAA – ASEAN‐SAM future single market? 21
Slide 22: Influx of efficient carriers
A free market means anyone can fly anywhere Influx of efficient carriers Source: 2012 Airline Performance Indicators. The Special Drawing Right (SDR) is a unit based on the trade-weighted values of a group of major currencies from the G8 nations. This unit allows comparisons to be made over extended
Slide 23: Norwegian's future competitors
Norwegian’s future competitors • Long‐haul low cost will revolutionize the long‐haul market – as it did short‐haul • Cannot compete on a global field when restricted to local conditions 23
Slide 24: Competitors must be met on a level playing field
Salary cost is the largest cost item second to jet‐fuel: Competitors must be met on a level playing field Source: International Labour Organization (ILO) (ILO Global Wage Database 2012) 24
Slide 25: Open Skies is a great opportunity – not threat
Open Skies is a great opportunity – not threat • Traffic flows from Asia will become more important than to 25
Slide 26: 276 undelivered aircraft on order
276 undelivered aircraft on order • The most efficient and environmentally friendly fleet available • Securing cost efficiency for the future 68 Boeing 737‐800 (65 direct buy + 3 leases) 8 Boeing 787‐8 Dreamliner 100 Boeing 737 MAX8 100 Airbus A320neo 26
Slide 27: Current committed fleet plan
Current committed fleet plan • 14 new 737‐800 deliveries in 2013 • Short term shortage of 800’s – Temporarily covered by existing 300’s • 3 new 787‐8 Dreamliner expected in 2013 27
Slide 28: Expectations for 2013 (Group)
Expectations for 2013 (Group) • Business environment – Increased economic uncertainty in parts of Europe – Seasonal fluctuations – Continued but eased yield pressure • Production – The company expects a production growth (ASK) in excess of 25 % • Increasing the fleet by adding 737‐800’s • Utilizatio
Slide 29: Norwegian offers 359 scheduled routes to 121 destinations
Norwegian offers 359 scheduled routes to 121 destinations in 37 countries.
Slide 30: 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 No — 1330 Fornebu Telefax +47 67 59 3001 Visiting address Oksengyveien 3 Internet www.norwegian.com
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