Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Investor Presentation (January 2020)
23 slides from Norwegian Air Shuttle Asa's investor presentation, January 2020
Slide 1: Norwegian Air Shuttle ASA Investor Presentation January 2020
Norwegian Air Shuttle ASA Investor Presentation January 2020
Slide 2: Norwegian at a glance
Norwegian at a glance 150+ 4th GLOBAL DESTINATIONS ~10,000 LARGEST LOW- HARD WORKING STAFF COST AIRLINE IN EUROPE* ~36M 160+ PASSENGERS FLOWN AIRCRAFT IN FLEET 500+ ROUTES 2 * Based on passengers in 2019, based on company traffic reports.
Slide 3: Set to leverage on scale
Set to leverage on scale Local short-haul focus Global growth phase, long-haul focus Focus on profitability Aircraft orders 42 6 15 15+3 222 19+8 30 2 New markets and other key milestones Leading position on Nordic short haul Number of Aircraft 164 10 156 787-8/9 Owned 787-8/9 Leased 144 11 Maturing
Slide 4: Key pillars of our corporate strategy 2018-2022
Key pillars of our corporate strategy 2018-2022 KEY FOCUS AREAS LONG TERM “We shall be the leading long-haul low-cost airline • Reduce cost base VISION in Europe operating as the engine of global low- Competitive cost base • Sustainable unit cost position cost alliance and dominating the Nordic shor
Slide 5: Changing strategic focus from growth to profitability
Changing strategic focus from growth to profitability 2013 - 2018 2019 - Focus on growth Focus on profitability and cash flow Built up market position and scale Continuous efforts to reduce costs Optimization of the base structure Captured slots at constrained airports and route network based on 12-
Slide 6: Changes to network and operations
Changes to network and operations
Slide 7: Stable demand at key airports
Stable demand at key airports TOTAL PASSENGERS In million 2015 2016 2017 2018 LTM Q3 2019 60 50 40 30 20 10 0 Oslo Stockholm Copenhagen Gatwick Barcelona 7 Source: Avinor, Swedavia, Copenhagen Airports, Gatwick Airport and Aena.
Slide 8: New strategy starting to show results
New strategy starting to show results → Profits in Q3 was the highest in the Company’s history → The planned capacity reduction supports higher unit revenue, better load factor and increased punctuality MONTHLY TRAFFIC DEVELOPMENT ASK (12m rolling) Unit revenue growth y/y 120,000 30% 100,000 20% 80,
Slide 9: Exhaustive review of the short-haul operation
Exhaustive review of the short-haul operation SUMMER 2020 AIRCRAFT ALLOCATION Focus on Nordic core Existing base Restructured base Closed base () Versus same season last year Short-haul network connectivity and density NO TRD FI 40 (+1) SE 7 (-2) 14 (-3) BGO OSL HEL Support long-haul feed, where app
Slide 10: Our long-haul business in context
Our long-haul business in context Business Long haul, low cost mainly focused on connecting primary airport / city model points Value for money fares with quality inflight services, leveraging our Product focus award-winning brand A fleet of 37 Boeing 787 Dreamliners Fleet Two-class configuration an
Slide 11: Long haul developing according to strategy
Long haul developing according to strategy SUMMER 2020 AIRCRAFT ALLOCATION TRAFFIC AND YIELD DEVELOPMENT ASK, 12m rolling (million) Yield, 12m rolling (index; Q2 2013 = 100) 60,000 120 50,000 110 40,000 100 30,000 90 NO 787: 2 20,000 80 10,000 70 0 60 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 12: Largest foreign carrier in New York and largest European carrier in Los Angeles
Largest foreign carrier in New York and largest European carrier in Los Angeles Connecting networks to feed long haul 12
Slide 13: Our young fleet is a key sustainability, commercial and financial advantage
Our young fleet is a key sustainability, commercial and financial advantage ~20% more fuel efficient than world average for airline Lower fuel costs Significantly improved environmental friendliness Newer and more sustainable aircraft are preferred by travellers globally 13 Source: Planespotter.net,
Slide 14: Our low-cost business model is one of the most carbon efficient in the world
Our low-cost business model is one of the most carbon efficient in the world ONGOING INITIATIVES Fleet renewal program Advanced weather data from Avtech SkyBreathe app for pilots 14
Slide 15: Disciplined low cost operating model
Disciplined low cost operating model Cost development in 2018 and 2019 Cost level compares well to peers Operating costs excl. fuel and ownership costs per ASK (NOK) Operating costs (EBIT level) per ASK (NOK)1 0.28 AirAsia X 0.27 0.25 0.25 WizzAir 0.32 0.24 0.23 0.23 0.22 Ryanair 0.35 Norwegian has
Slide 16: #FOCUS2019: Raising full-year target to NOK 2.3 billion
#FOCUS2019: Raising full-year target to NOK 2.3 billion Actual Actual Q3 Cost area Completed cost initiatives YTD Q3 (NOK m) (NOK m) Airport, handling • High effect of airport- and handling-related cost initiatives during peak season and technical • Progressing on several items with key technical su
Slide 17: Continuing to deliver on strategic changes
Continuing to deliver on strategic changes
Slide 18: Fuel is the largest variable expense and accounted for 30 percent of costs in 2018
Fuel is the largest variable expense and accounted for 30 percent of costs in 2018 Jet fuel Brent (USD/MT) Jet fuel price and effective fuel price including hedging1 (USD per BOE) 1200 140 120 1000 885 639 100 859 800 601 728 719 569 685 674 80 672 647 600 580 582 605 614 568 498 526 560 60 514 400
Slide 19: Impact of MAX grounding and engine issues
Impact of MAX grounding and engine issues Status and impact from MAX grounding 18 aircraft grounded 12 March 2019 16 new deliveries deferred Estimated negative impact on P&L of NOK 1 billion for 2019 Discussions on compensation and new delivery schedule Engine issues Dreamliners Estimated negative i
Slide 20: Significant actions to increase financial headroom while transforming the business
Significant actions to increase financial headroom while transforming the business #Focus2019 Sale of NOFI Partnership Joint Venture Sale of Target achieved Completed sale of Letter of intent for Established joint Argentina through continuous shares with final partnership with venture with CCBLI Sol
Slide 21: Sold a total 24 aircraft with net proceeds of NOK 2.2 billion in 2019 and 2020
Sold a total 24 aircraft with net proceeds of NOK 2.2 billion in 2019 and 2020 NUMBER OF AIRCRAFT BASED ON ANNOUNCED SALES 164 164 162 161 156 158 10 10 11 150 149 152 11 11 15 22 24 14 15 15 25 26 26 26 14 14 26 26 14 26 787-8/9 Owned 4 4 14 4 14 787-8/9 Leased 4 4 19 23 30 19 737 MAX 8 Owned 52 51
Slide 22: NEXT steps
Network People - Product, pricing and revenue management Operational performance Cost reduction/procurement Value proposition N Ex 7 The target is EBITDAR run rate improvement by Tl set up to oversee and support the delivery of the NEXT Program
Slide 23: Fly Norwegian
Fly Norwegian Book tickets at Norwegian.com
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