Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Q2 2006 Earnings Presentation
17 slides from Norwegian Air Shuttle Asa's earnings presentation, Jul 13, 2006
Slide 1: Norwegian (NAS) Q2 2006
Norwegian (NAS) Q2 2006 Bjørn Kjos (CEO) Oslo, 13. July 2006 Norwegian Air Shuttle ASA
Slide 2: Strong revenue growth in Q2
Strong revenue growth in Q2 ● 765 MNOK revenue in Q2 2006 ● Revenue growth of 44 % since Q2 2005 MNOK revenue 800 700 600 CAGR 56 % 500 400 300 200 100 0 Q2 03 Q2 04 Q2 05 Q2 06 Revenue 215 311 531 765 Earnings after tax -10 -27 15 18 EPS -1,18 -1,99 1,68 1,76 2
Slide 3: Stable margin
Stable margin ● EBITDA of 35 MNOK in Q2 2006 ● Earnings after tax 18 MNOK (15 ) ● Margin is stable, taking in the production growth Q204 Q205 Q206 EBITDA MNOK EBITDA MARGIN 40 7% 5% 3% 20 1% -1 % 0 -3 % -5 % -7 % -20 -9 % -11 % -40 -13 % EBITDA MNOK EBITDA margin % Revenue 311 531 765 EBITDA MNOK -3
Slide 4: Challenging quarter
Challenging quarter ● Promotional prices on 16 new routes – 11 introduced in May ● Passenger traffic and regularity affected – Airport security and ATC irregularities Q2 Development 84 % 25,0 82 % 82 % 20,0 80 % 80 % 15,0 78 % 10,0 76 % 75 % 5,0 74 % 0,0 72 % 70 % -5,0 April May June CABINFACTOR EBI
Slide 5: Other revenue key contributor
Other revenue key contributor ● Contributes strongly to bottom line results ● Increased 58 % since Q205 EBITDA MNOK 30 On-board sales Overweight Other revenue Other revenue 20 Commission Hotel & Car-rental Service fees 10 0 Q2 05 Q2 06 5
Slide 6: Strong cash flow from advanced bookings
Strong cash flow from advanced bookings ● Positive cash flow from operation of 141 MNOK ● Investments Aircraft purchase ● Cash and equivalents 535 MNOK Operating activities MNOK 200 180 160 CASH FLOW (TNOK) Second quarter 140 From: 2006 2005 120 Operating activites 141 493 61 438 100 Investments -12
Slide 7: Capacity growth on track
Capacity growth on track ● 41 % increase in production from Q205 to Q206 ● Load factor leveling out at 80 % (still available seats!) M ASK 1400 85 % 84 % 83 % 82 % 81 % 1200 80 % 79 % 78 % 77 % 76 % 1000 75 % 74 % 73 % 72 % 71 % 800 70 % 69 % 68 % 67 % 66 % 600 65 % 64 % 63 % 62 % 61 % 400 60 % 59 %
Slide 8: Strong passenger growth
Strong passenger growth ● Approaching 9 000 passengers per employee (7 000) ● 50 % passenger growth on international routes Thousand pax 49 % 1300 1100 52 % 900 700 110 % 500 300 100 Q2 03 Q2 04 Q2 05 Q2 06 PAX (000)* 273 572 868 1 289 *Tickets sold for travel 8
Slide 9: Enhanced competitive position
Enhanced competitive position ● 38 % market share on key domestic routes, 7 pp growth ● Capacity increased by 16 % since Q205 % Market Share 45 % 40 % 35 % 30 % 40 % 41 % 34 % 34 % 35 % 33 % 25 % 26 % 27 % 20 % Bergen Trondheim Stavanger Tromsø Q2 05 Q2 06 9
Slide 10: Strong revenue growth, both domestic and international
Strong revenue growth, both domestic and international ● Domestic turnover increased by 36 % since Q2 2005 ● International turnover increased by 53 % since Q2 2005 MNOK 450 400 350 300 250 200 150 100 50 0 Q2 04 Q2 05 Q2 06 Turnover domestic Turnover abroad 10
Slide 11: Still a guarantor for low fares
Still a guarantor for low fares ● Domestic prices are down 5 % Q206 compared to Q205 ● International fares are down due to promotional pricing and competition on new routes Norwegian's average ticket price - index (Q1 03 = 100) 100 80 60 40 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05
Slide 12: CASK increased due to fuel and irregularities
CASK INCREASED DUE TO FUEL AND IRREGULARITIES ● Unit costs of 0.55 NOK in Q2 06 ● Cost level affected by higher fuel prices and one offs - Given same fuel price level as Q205, EBITDA of 75 MNOK in Q206 ● Cost initiatives on track; - Amadeus, apprentice program, handling and utilization Engine overha
Slide 13: Increased fleet and crew utilization
Increased fleet and crew utilization ● Crew utilization of 785 block ● Aircraft utilization of 10,5 block hours per crew per year, hours per plane per day, up 9 % up 3 % from Q2 2005 (761) from Q2 2005 (9,6) Block hours/plane/day Block hours/crew/year 11 900 10 800 700 9 600 8 500 7 400 6 Q2 04 Q2 0
Slide 14: Product advancement
Product advancement Flexibility Possibility Availability Fairly pricing 14
Slide 15: Leading Nordic LCC
Leading Nordic LCC 81 routes
Slide 16: Expectations for 2006
Expectations for 2006 Expected business environment : ● Increased competition on international routes ● Continued price competition on northbound routes ● Continued irregularities on OSL and ATC Expected results (ex start up in Poland) ● Q2/Q3 06 total unit cost in the range of NOK 0,53+ – At curren
Slide 17: Thank you, - and fly Norwegian!
Thank you, - and fly Norwegian!
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