Slide 1: Norwegian Air Shuttle ASA Q3 2011 Presentation
Norwegian Air Shuttle ASA Q3 2011 Presentation October 20th 2011 CEO Bjørn Kjos Double digit revenue growth in Q3 • Group revenues of MNOK 3,376 in Q3 2011 Slide: 2
Slide 2: Q3 operating result (EBITDA) of 1 Billion NOK
Q3 operating result (EBITDA) of 1 Billion NOK, improved by 378 million from last year – EBITDAR MNOK + 1,206 (840) – EBITDA MNOK + 1,001 (624) – EBIT MNOK + 923 (573) . – Pre-tax profit (EBT) MNOK + 686 (733) – Net profit MNOK + 495 (528) EBITDAR development Q3 EBITDA development Q3 Slide: 3 Underly
Slide 3: Cash and cash equivalents of 1.4 billion; group equity improved
Cash and cash equivalents of 1.4 billion, up MNOK 249 from last year • Cash flows from operations in Q3 2011 MNOK +243 (-48) • Cash flows from investing activities in Q3 2011 MNOK -801 (-479) • Cash flows from financing activities in Q3 2011 MNOK +768 (+127) • Cash and cash equivalents at period-end
Slide 4: Flexibility to increase equity ratio; traffic growth of 27%
Flexibility to increase Equity ratio from 23 % to 45 % • Liquidating on-balance sheet aircraft would double the equity ratio • Would generate capital gains and cash • Norwegian to own aircraft to keep cost down 9,000 8,000 3,565 7,000 6,000 6,035 Non-current LT liabilities assets 5,000 current 2,063
Slide 5: Passenger record in Q3
Passenger record in Q3 • 4.6 million passengers, 21 % growth from last year • An increase of 790,000 passengers 5.0 + 21 % 4.5 4.0 3.5 3.0 2.5 2.0 Passengers (million) 1.5 1.0 0.5 0.0 Q3 08 Q3 09 Q3 10 Q3 11 Passengers (million) 2.6 3.1 3.8 4.6 Slide: 9 Largest share of growth outside Norway Newly s
Slide 6: Norwegian aiming for CASK NOK 0.30 excluding fuel
Norwegian aiming for CASK NOK 0.30 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 • Salaries adapted to international cost levels • Overheads • 737-800 has 38 “free” seats • Out
Slide 7: Larger aircraft & improving utilization reduce unit cost
Larger aircraft & improving utilization reduce unit cost • Improving utilization and larger aircraft offset highest salary cost in the industry • Still an upside from smarter rostering and seasonal adaptions Salary cost per employee Salary cost per ASK (12 mths rolling) 13 Ancillary revenues remains
Slide 8: World class punctuality and regularity
World class punctuality and regularity • Punctuality of 88 % in Q3 • High punctuality combined with high regularity (few cancellations) • Continuous work saves cost and improves satisfaction Target 15 Customer satisfaction in Sweden Noteworthy change with «clean» -800 base & WiFi Comfort on board Le
Slide 9: Long-haul business idea and planned fleet development
Long-haul business idea: Lowest overhead costs – most efficient aircraft – untapped market • Six Boeing 787-8 Dreamliners on order • Leveraging on existing overhead cost efficiency Short-haul Long-haul Slide: 17 Current planned fleet development • 61 aircraft in the fleet at end of Q3 – 737-800: 44
Slide 10: Expectations for 2011 and 2012
Expectations for 2011 • Business environment – Uncertain business climate – Seasonal fluctuations – Continued but stabilized yield pressure • Production – The company expects a production growth (ASK) of approximately 24 % – Primarily from increasing the fleet by adding 737-800’s – Capacity deployme
Slide 11: Norwegian offers 265 scheduled routes to 102 destinations
Norwegian offers 265 scheduled routes to 102 destinations Norwegian Air Shuttle ASA Mailing address P.O. Box 113 No – 1330 Fornebu Visiting address Oksenøyveien 3 Telephone +47 67 59 30 00 Telefax +47 67 59 30 01 Internet www.norwegian.com Organization number NO 965 920 358 MVA Slide: 22