Norse Atlantic Asa · OSL:NORSE
Norse Atlantic Asa — Q3 2024 Earnings Presentation
24 slides from Norse Atlantic Asa's earnings presentation, Nov 29, 2024
Slide 1: Q3 2024 Presentation
Q3 2024 Presentation 29 November 2024
Slide 2: Disclaimer
Disclaimer This presentation and its appendices (the "Presentation") has been produced by Norse Atlantic ASA (the "Company", and together with its direct and indirect subsidiaries, the "Group"). This Presentation has been prepared for information purposes only, and does not constitute or form part o
Slide 3: Highlights from the Quarter
Highlights from the Quarter 1 ASK +20% YoY, no. of passengers +18% YoY 2 Load factor of 86%, +3p.p. YoY and best quarter to date 3 Revenue up 8% to USD 222 million, EBITDAR USD 27 million, net loss USD 6 million 4 H2 2024 not expected to be profitable, 2025 expected to be profitable YoY: Year on Yea
Slide 4: Strategic Update
» Strategic Update
Slide 5: Highlights from Strategic Update
Highlights from Strategic Update 1 Detailed LOI signed for longer-term, six aircraft ACMI with reputable international airline 2 Network performance improving; keeping best-performing routes while lowering cost 3 USD 15 million of new capital from BTL&Co; USD 8.7 million1) of equity, USD 6.3 million
Slide 6: LOI for longer-term wet lease agreement for six aircraft
Strategic Update: Detailed LOI for major lease LOI for longer-term wet lease agreement for six aircraft “On 22 November 2024, the Company entered a detailed letter of intent (the "LOI") with a reputable international airline for wet lease agreements ("wet lease") for six aircraft, subject to final a
Slide 7: Path to Profitability
Path to Profitability ACMI/Network Strategy Commercial Overhaul Cost-Efficiency Multi-year ACMI agreements/LOIs with New commercial team with tech Reducing SG&A cost by 50% and ~$500m of ACMI backlog*; completes capabilities showing strong trading increasing crew utilization due to successful reposi
Slide 8: Roadmap | Systematic and structured path to attractive profitability
Strategic Update: ACMI/Network Strategy Roadmap | Systematic and structured path to attractive profitability 2024 2025 2026 1. Overhaul 2. Transition 3. Dual Strategy Secure longer-term ACMI contracts, Maximize profit from network while Full effect from strategic shift to dual transform organization
Slide 9: Cracked the commercial code: Improving sales by science-based methodology
Strategic Update: Commercial Overhaul Cracked the commercial code: Improving sales by science-based methodology Data-driven product development enables improved earnings – three examples: 1 2 3 Introducing carry-on bag “Free cancellation” Reducing available seats for free increased sales by message
Slide 10: Cracked the commercial code: Strengthening of network operations
Strategic Update: Commercial Overhaul Cracked the commercial code: Strengthening of network operations supported by early baseload and good pre-booking numbers Q4 2024 already ahead of Q4 2023 actual Q1 2025 trending ahead of Q1 2024 Q2 2025 trending ahead of Q2 2024 LF N days out by quarter LF N da
Slide 11: Reducing cost and increasing efficiency with USD ~40 million annually
Strategic Update: Cost-Efficiency Reducing cost and increasing efficiency with USD ~40 million annually ACMI & Tech focus enables significant cost reductions SG&A1) estimated cost development 2024-26 USD million 45 In-house IT development focused on 40 Tech automation and efficiency, est. savings of
Slide 12: Transaction summary
Strategic Update: Transaction Summary Transaction summary • The Company and BT Larsen & Co Limited, 18.88% shareholder and affiliated to CEO Bjørn Tore Larsen, have agreed to strengthen the Company’s working capital to facilitate the ongoing strategic repositioning: • BT Larsen & Co Limited will inv
Slide 13: Q3 Update
= Q3 Update
Slide 14: Operational performance remains strong
Q3 Update Operational performance remains strong % of flights completed and arriving on time Completion Punctuality (A15) 100.0 % 100% 90.0 % 90% 80.0 % 80% • Completion at 99.3% 70.0 % 70% for the quarter 60.0 % 60% 50.0 % 50% 40.0 % 40% • Punctuality at 77% for the quarter 30.0 % 30% 20.0 % 20% 10
Slide 15: Strong growth YoY
Q3 Update Strong growth YoY Quarter LF 86% +3%-points YoY Airfares softened, while ancillary Quarter Pax 515’ +80’ YoY remained strong Passengers Load factor USD per passenger - 7% 250,000 100% $450 90% $400 $89 200,000 80% $84 $350 $84 70% $300 $87 $74 150,000 60% $250 50% $200 100,000 40% $349 $32
Slide 16: CASK at its lowest-ever level
Q3 Update CASK at its lowest-ever level CASK improving YoY… …PRASK lower than 2023 USD cent per ASK USD cent per ASK 6.0 - 2% 6.0 - 7% 5.0 5.0 4.0 4.0 3.0 3.0 5.14 5.32 4.94 4.92 4.44 2.0 2.0 3.63 3.81 3.56 3.55 3.27 1.0 1.0 0.0 0.0 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q3 2023 Q4 2023 Q1 2024 Q2
Slide 17: Ancillary remains best in class
Q3 Update Ancillary remains best in class Ancillary revenue per passenger USD • Norse’s fare model provides pricing flexibility to + 1% passengers $140 $131 $133 $130 • Ancillary revenue consists of: $120 ⚬ Upgrades to Premium cabin $120 $116 ⚬ Extra baggage $42 $46 $49 $32 ⚬ Seat selection $100 $42
Slide 18: Income Statement
Q3 Update Income Statement First quarter of profit as capacity and revenue increase largely during summer season 3 months 3 months 9 months 9 months 12 months USD thousands Q3 2024 Q3 2023 YTD 2024 YTD 2023 FY 2023 • Q3 2024 revenue up 8% YoY, driven Revenue 221,987 204,796 464,988 344,655 439,436 b
Slide 19: Cash Flow Statement
Q3 Update Cash Flow Statement 3 months 3 months 9 months 9 months 12 months USD thousands Q3 2024 Q3 2023 YTD 2024 YTD 2023 FY 2023 Operating cash flows before 28,171 34,479 (25) (9,783) (39,054) WC1) movements • Positive cash from WC1) movements 3,871 (32,409) 35,780 10,078 18,496 operations during
Slide 20: Balance Sheet
Q3 Update Balance Sheet Statement of financial position USD thousands 30 SEP 24 30 SEP 23 31 DEC 23 Total non-current assets 890,595 930,589 935,505 Current assets include: Credit card receivables 124,939 100,245 60,214 • USD 125 million receivables from credit card companies for booked Other receiv
Slide 21: Summary and outlook
Summary and outlook ACMI/Network Commercial Overhaul Cost Efficiency USD [500]m ACMI contract backlog Transformed commercial platform Reducing SG&A by 50% Continued strong ACMI demand Improved commercial performance Improved crew utilization High-graded network drive profitability Higher fares and +
Slide 22: Appendix
>» Appendix
Slide 23: Key Operational Numbers
Key Operational Numbers Monthly break-down over last five quarters Jul23 Aug23 Sep23 Oct23 Nov23 Dec23 Jan24 Feb24 Mar24 Apr24 May24 Jun24 Jul24 Aug24 Sep24 Number of aircraft 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 in fleet Number of aircraft 5 5 5 5 5 5 5 5 4 4 3 3 3 3 3 subleased out ASK (mi
Slide 24: Contact
Contact: Investors: investor.relations@flynorse.com Media: media@flynorse.com