Norwegian Air Shuttle Asa · OSL:NAS

Norwegian Air Shuttle Asa — Q3 2013 Earnings Presentation

23 slides from Norwegian Air Shuttle Asa's earnings presentation, 2013

  1. Slide 1: Norwegian Air Shuttle ASA Q3 2013 Presentation

    Norwegian Air Shuttle ASA Q3 2013 Presentation Europe’s best low-cost airline

  2. Slide 2: Double digit revenue growth in Q3

    Europe’s best low-cost airline Double digit revenue growth in Q3 • Group revenues of MNOK 4,878 in Q3 2013 + 15 % 5 000 4 500 4 000 3 500 3 000 Domestic Revenue (MNOK) International Revenue (MNOK) 2 500 Total Revenues (MNOK) 2 000 1 500 1 000 MNOK 500 0 Q3 10 Q3 11 Q3 12 Q3 13 Revenues 2 828 3 376 4

  3. Slide 3: Pre-tax profit of MNOK 604 in Q3

    Europe’s best low-cost airline Pre-tax profit of MNOK 604 in Q3 Q3 13 Q3 12 EBITDAR MNOK 1 169 1 098 EBITDA MNOK 778 822 EBIT MNOK 638 708 Pre-tax profit (EBT) MNOK 604 873 Net profit MNOK 436 628 EBITDAR development Q3 EBT development Q3 1 300 900 1 200 1 206 873 1 169 800 1 100 1 098 733 1 000 700

  4. Slide 4: Underlying EBT result MNOK 932

    Europe’s best low-cost airline Underlying EBT result MNOK 932 • Estimated long-haul wet-lease, fuel & irregularity effects MNOK 101 – Planned wet-lease MNOK 64 – Increased fuel consumption A340 vs B788 MNOK 19 – IRR cost MNOK 18 • Start-up costs Long-Haul, LGW & ALC unadjusted for (business as usual

  5. Slide 5: Extraordinary summer weather affected late bookings

    Sweden, August 23rd 2013 Väderöarna, Bohuslän in Western 15 17 19 21 23 25 1 2 3 4 5 6 7 Fw d. Bookings (%) Pre-sale period 2012 2012 2013 2013 2012 2013 Departure Avg. daily precipitation (mm) Avg. daily max temperature Share of available seats sold on typical Extraordinary summer weather affected

  6. Slide 6: Ancillary revenue remains a significant contributor

    Europe’s best low-cost airline Ancillary revenue remains a significant contributor • Ancillary revenue comprises 11 % of Q3 revenues (target 15%) • NOK 90 per scheduled passenger (an increase of 5 % from last year) 6

  7. Slide 7: Cash position of NOK 2.3 billion (+568 million)

    Europe’s best low-cost airline Cash position of NOK 2.3 billion (+568 million) Cash flows from operations in Q3 13 MNOK 67 (MNOK 460) Cash flows from investing activities in Q3 13 MNOK -618 (MNOK -565) Cash flows from financing activities in Q3 13 MNOK -68 (MNOK 267) Cash and cash equivalents at per

  8. Slide 8: Equity improved by MNOK compared to last year

    Europe’s best low-cost airline Equity improved by MNOK 561 compared to last year • Total balance of NOK 14.4 billion • Net interest bearing debt NOK 3.4 billion (2.7) • Equity of NOK 2.9 billion at the end of the third quarter • Group equity ratio of 20 % (22 %) 14 000 Long term 12 000 liabilities 5

  9. Slide 9: High load factor maintained on capacity growth

    Europe’s best low-cost airline High load factor maintained on 31 % capacity growth • Average flying distance up 11 % 11 000 1 ASK Load Factor + 31 % 10 000 86.4 % 86.1 % 84.7 % 84.4 % 81.8 % 82.2 % 82.6 % 81.4 % 80.5 % 9 000 0.8 8 000 68.5 % 7 000 0.6 6 000 5 000 0.4 4 000 Available Seat KM (ASK) 3

  10. Slide 10: Passenger record in Q3

    Europe’s best low-cost airline Passenger record in Q3 • 6.0 million passengers • An increase of 800,000 passengers +16 % 6.00 5.00 4.00 3.00 2.00 Passengers (million) 1.00 0.00 Q3 04 Q3 05 Q3 06 Q3 07 Q3 08 Q3 09 Q3 10 Q3 11 Q3 12 Q3 13 Pax (mill) 0.5 0.9 1.5 2.0 2.6 3.1 3.8 4.6 5.2 6.0 10

  11. Slide 11: Highest growth at London Gatwick

    Europe’s best low-cost airline Highest growth at London Gatwick • Increasing market share in all Nordic markets • Norwegian accounted for 90 % of growth at London Gatwick + 231,000 pax 40 % 35 % 30 % + 212,000 pax 25 % + 131,000 pax 20 % Gatwick total market: +271,000 Norwegian at Gatwick: +243,000

  12. Slide 12: Unit cost excluding fuel down

    Europe’s best low-cost airline Unit cost excluding fuel down 3 % • Underlying unit cost down 7 % – Excl. fuel hedge, EUR & USD effect MNOK 65 – Excl. Long-Haul wet lease, fuel & IRR costs MNOK 101 -3% Fuel share of CASK 0.40 CASK excl fuel Operating cost EBITDA level per ASK (CASK) 0.35 0.11 0.15 0.

  13. Slide 13: Aiming for FY CASK NOK 0.25 excluding fuel

    Europe’s best low-cost airline Aiming for FY CASK NOK 0.25 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 “fre

  14. Slide 14: Growth on short-haul & adding long-haul

    London: Europe’s best low-cost airline Growth on short-haul & adding long-haul In operation Capacity increase New S14 TOS TRD AES BGO OSL HEL TRF ARN d SVG GOT AAL CPH LONDON (Gatwick) BUD NCE SPU DBV BCN FCO CFU JFK PMI IBZ FAO AGPALC CTA JTR LCA LAX TFS ACE LPA FUE FLL 14

  15. Slide 15: New crew bases in New York and Florida

    Europe’s best low-cost airline New crew bases in New York and Florida • JFK with most departures in Norwegian’s long-haul network • 15 weekly roundtrips from NYC to Europe from summer 14 OSL ARN Oslo Stockholm CPH JFK Copenhagen OAK New York San Francisco LGW London MCO Orlando LAX Los Angeles BKK F

  16. Slide 16: Competitors are national airlines flying internationally

    Europe’s best low-cost airline Competitors are national airlines flying internationally «Other European companies are capable of coping without creating this kind of creative corporate structures» Petter Førde, Chairman, Norwegian Pilots Association Majority of members fly for SAS and other competit

  17. Slide 17: Improved product in all Scandinavian domestic markets

    Europe’s best low-cost airline Improved product in all Scandinavian domestic markets LYR LKL KKN KRN 3W ALF TOS 1 ANX BDU EVE LLA S S 6 1 +1 2 +1 BOO +1 6 5 1 UME +1 5 4 TRD 2 MOL AES ARN 4 15 Route with more departures S14 vs S13 5 +1 +2 Route with no change S14 vs S13 +1 +1 6 S 15 New daily number

  18. Slide 18: Current committed fleet plan

    Europe’s best low-cost airline Current committed fleet plan Deliveries 787-8 Deliveries 737-800 Re-deliveries 737-300 2014: +1,164 seats +2,046 seats -592 seats 18

  19. Slide 19: Dreamliner saves tons of fuel roundtrip Bangkok

    Europe’s best low-cost airline Dreamliner saves 40 tons of fuel roundtrip Bangkok • Wet leased aircraft with 50 % higher fuel consumption per seat • MNOK 80 in savings - per airplane - per year 19

  20. Slide 20: Expectations for 2013 (Group)

    Europe’s best low-cost airline Expectations for 2013 (Group) • Business environment – Economic uncertainty in parts of Europe – Seasonal fluctuations – Yield pressure from capacity investment • Production – The company expects a production growth (ASK) of 32% (Previously “in excess of 30%”) • Increa

  21. Slide 21: Expectations for 2014 (Group)

    Europe’s best low-cost airline Expectations for 2014 (Group) • The company expects a production growth (ASK) of 40 % – Utilization and distance increase driven by UK and Spanish bases and long-haul – Continuous optimization of the route portfolio • Unit cost target in the area 0.40 – Fuel price depe

  22. Slide 22: Norwegian offers 401 scheduled routes to 124 destinations

    From bases in NORWAY SWEDEN From bases in DENMARK Norwegian offers 401 FINLAND scheduled routes to 124 destinations in 38 countries From bases in the USA & THAILAND From bases in SPAIN From the UK base

  23. Slide 23: Europe's best low-cost airline

    Europe’s best low-cost airline 23

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