Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Q1 2008 Earnings Presentation
13 slides from Norwegian Air Shuttle Asa's earnings presentation, Apr 24, 2008
Slide 1: Norwegian Air Shuttle ASA 1st Quarter Presentation
Norwegian Air Shuttle ASA 1st Quarter Presentation April 24th 2008 CEO Bjø Bjørn Kjos
Slide 2: Strong revenue growth in Q1
Strong revenue growth in Q1 • MNOK 1,089 in revenue, 47 % growth since last year – International: MNOK 651; 93 % growth – Domestic: MNOK 437; 9 % growth MNOK revenue 1 200 47 % 1 000 800 600 400 200 0 All amounts in million NOK Q1 05 Q1 06 Q1 07 Q1 08 Q 1 0 5 Q 1 0 6 Q 1 0 7 Q 1 0 8 Revenue 320 539
Slide 3: The EBITDA margin faces seasonality, competition, fuel and one-offs
The EBITDA margin faces seasonality, competition, fuel and one-offs • EBITDA result of MNOK -226 in Q1 08 • MNOK 12 in write down on the brand name FlyNordic • Inefficiency in hedge compared to cash flow on hedge object MNOK -33 • Earnings after tax MNOK -210 0 1 2 3 4 5 -50 - Norwegian.no ex. the P
Slide 4: Adjusted EBITDA result of MNOK -158 as expected
Adjusted EBITDA result of MNOK -158 as expected NO - Fuel price increase compared to Q1 07 Adjusted PL -28 - Migration EBITDA MNOK -158 - Introduction of B737-800 SE -56 - Fair value adjustments in unrealized foreign exchange hedges
Slide 5: Net change in cash of MNOK -54
Net change in cash of MNOK - 54 • Cash Flows from operations – Net CF from operating activities of MNOK 14 was affected by the operating loss, change in working capital and reduction in pre-paid tickets due to he early Easter holiday in March. • Cash Flows from investing activities – Net CF from inv
Slide 6: Persistently high growth rate
Persistently high growth rate • 38 % production growth since last year for Norwegian.no • Load factor at 78 %, up 3 pp since last year ASK Norwegian.no ASK Norwegian.se Load Factor Norwegian.no 2500 80 % 75 % 2000 70 % 1500 65 % 1000 60 % 500 55 % 0 50 % Q1 05 Q1 06 Q1 07 Q1 08 Q 1 05 Q 1 0 6 Q 1 07
Slide 7: Passenger growth continues
Passenger growth continues • 2 million passengers in Q1 08, up 53 % from last year – International passenger growth of 48 % for Norwegian.no – Domestic passenger growth of 15 % for Norwegian.no 1000 pax 2 000 1 800 1 600 1 400 1 200 1 000 800 600 400 200 0 Passengers in thousands Q1 05 Q1 06 Q1 07 Q
Slide 8: Domestic market share at 44 %
Domestic market share at 44 % • 44 % market share on key domestic routes, an improvement of 4 pp • Increased market share on all routes % Market Share 50 % 47 % 46 % 42 % 43 % 43 % 43 % 43 % 40 % 38 % 37 % 34 % 34 % 33 % 33 % Q1 05 30 % 32 % 30 % Q1 06 27 % Q1 07 20 % Q1 08 10 % 0% Bergen Trondheim
Slide 9: Unit Cost
Unit Cost • Unit cost of 0.60 in Q1 2008 for Norwegian.no, up 7 % since last year • Cost level affected by fair value adjustments in hedges, introduction of new aircraft and fuel price increase. CASK 0,65 0,63 Q1 07 Q1 08 0,60 0,03 0,60 0,01 0,02 - Fair value adjustments in 0,02 foreign exchange hed
Slide 10: Non-ticket revenues
Non-ticket revenues • Non-ticket revenues increased by 47 % from Q1 last year • The revenue lines have been reclassified* – Ancillary revenue for Q1 07 after reclassification is reported to be NOK 27 pr pax NOK pr. Pax 60 50 40 30 51 20 27 10 0 Q1 07 Q1 08 * The reclassification also affects ticket
Slide 11: Ongoing activities
Ongoing activities • Integration project with Norwegian.se – Commercial platform – Organizational structure – Improved fleet utilization – Rebranding from FlyNordic to Norwegian.se • Agreement with the Norwegian Ministry of Defence • Charter contracts for the winter season • Financing arrangements f
Slide 12: Expectations for remaining 2008
Expectations for remaining 2008 • Business Environment – Continued pressure on yield – Uncertain macro conditions – Sustained demand – High seasonal fluctuations • Cost Development – Unit cost in the area of NOK 0,52 for the Group – Up from 0.50 guided in Q4 07 based on an average fuel price of USD
Slide 13: Norwegian offers 152 routes to 83 destinations
Norwegian offers 152 routes to 83 destinations
Norwegian Air Shuttle — Q1 2008 Earnings Presentation on 6ix