Norwegian Air Shuttle Asa · OSL:NAS

Norwegian Air Shuttle Asa — Q3 2015 Earnings Presentation

20 slides from Norwegian Air Shuttle Asa's earnings presentation, 2015

  1. Slide 1: Norwegian Air Shuttle ASA Q3 2015 Presentation

    Norwegian Air Shuttle ASA Q3 2015 Presentation Best low-cost airline in Europe 2013-2015 World’s best Long Haul low-cost airline 2015 Photo: David Charles Peacock

  2. Slide 2: Q3 2015 Highlights

    Europe’s best low-cost airline Q3 2015 Highlights 2013,2014 & 2015 • Launched domestic Spain and winter routes in the Caribbean • Five new aircraft delivered in Q3 – Added ten new aircraft the first nine months • LOI for lease agreement – 12 aircraft for 12 year contracts from delivery • EBT improve

  3. Slide 3: 7.7 million passengers in Q3 2015 (+9 %)

    Europe’s best low-cost airline 7.7 million passengers in Q3 2015 (+9 %) 2013,2014 & 2015 15 % growth in number of passengers for long-haul in Q3 9 + 9% 8 7 6 5 4 3 Passengers (million) 2 1 0 Q3 06 Q3 07 Q3 08 Q3 09 Q3 10 Q3 11 Q3 12 Q3 13 Q3 14 Q3 15 Pax (mill) 1,5 2,0 2,6 3,1 3,8 4,6 5,2 6,0 7,1 7,

  4. Slide 4: Load factor increased to 90.7% (+6 p.p.)

    Europe’s best low-cost airline Load factor increased to 91 % (+6 p.p.) 2013,2014 & 2015 • 2 % growth in capacity (ASK) • 9 % growth in traffic (RPK) • Average flying distance increased by 2 % Load 18 000 ASK Load Factor +6 p.p. 100% 17 000 90,7 % 86,1 % 90% 16 000 84,7 % 84,4 % 84,6 % 81,8 % 82,2 %

  5. Slide 5: Q3 revenue increased by 15%

    Europe’s best low-cost airline Q3 revenue increased by 15 % 2013,2014 & 2015 • 18 % growth for international, flat domestic revenue 8 000 + 15 % 7 000 6 000 5 000 Domestic revenue 4 000 International revenue 3 000 Total Revenues 2 000 NOK million 1 000 0 Q3 12 Q3 13 Q3 14 Q3 15 Revenues 4 224 4 878

  6. Slide 6: Unit revenue up on higher load and currency

    Europe’s best low-cost airline Unit revenue up on higher load and currency 2013,2014 & 2015 • Unit Revenue (RASK) +13 % • RASK adjusted for currency + 5% Split revenue by currency: Q3 2015 Q3 2014 USD 6% EUR 16 % NOK 40 % SEK 19 % PLN 1 % GBP DKK 8% 10 % 6

  7. Slide 7: 13 % growth in ancillary revenue (+3 % per passenger)

    Europe’s best low-cost airline 13 % growth in ancillary revenue (+3 % per passenger) 2013,2014 & 2015 • Group ancillary per customer – Growth driven by bundle and freedom to choose 7

  8. Slide 8: EBT doubled to NOK 1.1 billion

    Europe’s best low-cost airline EBT doubled to NOK 1.1 billion 2013,2014 & 2015 (NOK million) Q3 15 Q3 14 Change EBITDAR 2 046 1 217 828 EBITDA 1 484 726 EBIT 1 182 532 Pre-tax profit (EBT) 1 098 505 593 Net profit 833 374 EBITDAR development Q3 EBT development Q3 8

  9. Slide 9: Unit cost driven by load factor

    Europe’s best low-cost airline Unit cost driven by load factor 2013,2014 & 2015 • CASK +2 % to NOK 0.41 driven by 6 p.p. higher load factor • Unit cost per passenger fell by 5 % (-2 % in constant currency ex fuel) 0,55 CASK excl fuel 0,50 Fuel share of CASK 0,45 0,13 0,13 0,40 0.15 Operating cost EB

  10. Slide 10: Improved cash-flow from operations

    Europe’s best low-cost airline Improved cash-flow from operations 2013,2014 & 2015 • Q3 affected by a seasonal reduction in prepaid tickets (NOK -1.4 bn) – NOK 2.3 billion in cash at 30 September • 2015: Invested NOK 4.5 bn in new aircraft – NOK 2.6 bn cash-flow from operations and NOK 2.2bn externa

  11. Slide 11: Equity ratio strengthened to 14%

    Europe’s best low-cost airline Equity ratio strengthened to 11 % 2013,2014 & 2015 • Invested NOK 6 billion the last 12 months • Ten new 737-800 and one 787 on balance since Q314 • NOK 15.5 billion net debt • 14 % equity ratio adj for Bank Norwegian 30 000 27 000 24 000 Aircraft Financing Aircraft 14

  12. Slide 12: Aiming for NOK 0.25 per ASK (ex fuel)

    Europe’s best low-cost airline Aiming for NOK 0.25 per ASK (ex fuel) 2013,2014 & 2015 Sources: Based on official full-year 2014 annual report for Norwegian Air Shuttle, Finnair, Air Berlin, Vueling, SAS Group (31.10.2014), Easyjet (30.09.2014), and full-year 2015 report for Ryanair and WizzAir (31.0

  13. Slide 13: Top modern fleet with an average age of 4 years

    Europe’s best low-cost airline Top modern fleet with an average age of 4 years 2013,2014 & 2015 146 3 140 14 B788 Owned 117 12 120 B788/B789 Leased 3 5 A320neo 9 B737 MAX 8 99 4 100 95 3 B738 owned 2 5 85 5 B738 S&LB 1 2 80 B738 leased 68 83 B733 owned 62 30 41 68 51 60 B733 leased 57 23 7 15 M80 le

  14. Slide 14: Market shares in key airports (last 12 months)

    Europe’s best low-cost airline Market shares in key airports (last 12 months) 2013,2014 & 2015 Sources: Avinor, Swedavia, Copenhagen Airports, Finavia, Gatwick Airport, Aena 14

  15. Slide 15: Market shares Spain – international flights (last 12 months)

    Europe’s best low-cost airline Market shares Spain – international flights (last 12 months) 2013,2014 & 2015 Source: Aena 15

  16. Slide 16: Norwegian Reward: 3.5 million members and increasing growth

    Europe’s best low-cost airline Norwegian Reward: 3.5 million members and increasing growth 2013,2014 & 2015 • Strong membership growth in new markets – An estimated 750,000 new members in 2015 • Increasing share of CashPoints financed by external partners – approx 50% of all CashPoints are financed

  17. Slide 17: Expectations for 2015 (Group)

    Europe’s best low-cost airline Expectations for 2015 (Group) 2013,2014 & 2015 • Business environment – Stable market in the Nordic region – Positive momentum in UK, Spain and for long-haul – Bookings for Q4 2015 ahead of last year (capacity adjusted) • The company expects a production growth (ASK) o

  18. Slide 18: Expectations for 2016 (Group)

    Europe’s best low-cost airline Expectations for 2016 (Group) 2013,2014 & 2015 • The company expects a production growth (ASK) of 18 % – Short-haul + 12 % – Long-haul + 40 % – Distance increase driven by long-haul • Unit cost target of NOK 0.39 – Fuel price assumption ● USD 550 per ton – Currency ass

  19. Slide 19: Summary Q3 2015

    Europe’s best Summary Q3 2015 low-cost airline 2013,2014 & 2015 • Strong impact from currency • Bookings for Q4 2015 ahead of last year • Long-haul ahead of schedule, we expect a positive net contribution for 2015 • Hedging up to 50% of fuel for FY 2016 • Aiming for further unit cost reductions 19

  20. Slide 20: Norwegian offers 434 scheduled routes to 130 destinations

    From bases in NORWAY SWEDEN From bases in DENMARK 20 Norwegian offers 434 FINLAND scheduled routes to 130 destinations in 39 countries From bases in the USA & THAILAND From bases in SPAIN From the UK base 20

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