Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Q4 2022 Earnings Presentation
20 slides from Norwegian Air Shuttle Asa's earnings presentation, Feb 16, 2023
Slide 1: Presentation of fourth quarter 2022
Presentation of fourth quarter 2022 16 February 2023
Slide 2: Highlights
Highlights Ramping up for busy travel season Number of passengers – LOI for six 737 MAX 8 aircraft with ALC this quarter – strong bookings from New Year’s campaign and beyond – 81 aircraft fleet for summer operations 4,578,894 2022 operating result (EBIT) NOK 1,502 million – Q4 EBIT negative NOK 39
Slide 3: Fleet flexibility – reducing winter capacity
Fleet flexibility – reducing winter capacity 2,2 00 Traffic – PAX per month, load factor and yield 100 .0% 2,002 Seasonally lower demand 1,887 – softening demand in quieter winter 2,0 00 1,874 86% 86% period 90. 0% 1,8 00 85% 79% 0.84 78% 78% Utilising fleet flexibility to minimise 1,6 00 80. 0% 0.8
Slide 4: Strong booking momentum
Strong booking momentum 7-day rolling sales figures (abs) – All markets* Successful New Year’s sales campaign Diversified bookings across travels months for domestic, beach and city destinations Over 1 million tickets sold in 14 days Campaign fares significantly above previous years Booking momentum
Slide 5: Securing modern fleet for 2023 and beyond
Securing modern fleet for 2023 and beyond Securing fleet for summer ramp-up Signed LOI with ALC for six 737 MAX 8 due before summer 2023 Counteracting Boeing delays for aircraft originally due this spring 100 30 Summer 2023 fleet increasing to 81 aircraft 80 Replacing older generation aircraft Redel
Slide 6: Financial results for Q4 2022
Financial results for Q4 2022
Slide 7: Quarterly financial highlights
Quarterly financial highlights Revenues Unit revenue - total Passenger traffic (million RPK) 0.78 7,934 Unit revenue falling with normal seasonality 0.64 5,656 – up 20% from last year 3,563 0.54 Ancillary NOK 152 per pax Q4 2021 Q3 2022 Q4 2022 Q4 2021 Q3 2022 Q4 2022 Profits EBITDAR (NOK million) 1
Slide 8: Q4 earnings – minimising losses in low-season
Q4 earnings – minimising losses in low-season Chng. Full year Full year NOK million Q4 2022 Q3 2022 (QoQ) 2022 2021 Passenger revenue 3,779 5,936 15,198 3,912 Reduced production in winter Ancillary passenger revenue 697 1,047 2,870 941 Other revenue 493 133 802 215 Total operating revenue 4,969 7,11
Slide 9: CASK – reduced scale in winter
CASK – reduced scale in winter Scale and cost initiatives – macro headwinds 0.30 Fuel cost remain elevated due to high fuel price Fuel and strong USD 0.26 – hedged 25% of 2023 consumption at $880/mt 0.25 – hedge accounting for fuel hedges 0.20 Personnel higher due to reduced scale – sound collaborat
Slide 10: Robust balance sheet through winter season
Robust balance sheet through winter season 31 Dec. 30 Sep. Chng. NOK million 2022 2022 (QoQ) Intangible assets 2,090 2,092 Net interest bearing debt Tangible assets 10,078 11,258 Ccy revaluation of leases Total non-current assets 12,625 13,735 -8% 31 Dec. 30 Sep. Chng. NOK million 2022 2022 (QoQ) Re
Slide 11: Cash flow – strong cash position
Cash flow – strong cash position NOK million Opening balance (30 Sep. 2022) 8,190 Strong liquidity position going through winter season Positive operating profit Operating activities +56 Reduced holdback Holdback down to 39% – above 100% at year-end 2021 Investing activities -27 Limited aircraft pre
Slide 12: The way forward
The way forward
Slide 13: Committed to sustainable aviation future
Committed to sustainable aviation future Reducing in-flight waste Appetizing pre-order meals with zero food waste Recycling of bottles and cans Environmentally friendly packaging and utensils Project to reduce food waste across network Sustainable operations Pilots utilising latest mobile technology
Slide 14: Attracting new business travellers
Attracting new business travellers Corporate share of ticket revenue Strong performance on corporate travel 2022 corporate revenue 90% of 2019 Onboarding more corporates through attractive product offering and campaigns Few cancellations with regularity at 99.4% Strong on-time record 2019* 2022 Pref
Slide 15: Improvements to Norwegian Reward
Improvements to Norwegian Reward Adding new member benefits to the program… … and expanding the program beyond airline We have listened to our members: Ambition to build the best loyalty program in the Nordics, together with partners The more you fly, the more benefits you can select Norwegian Rewar
Slide 16: Summary
Summary Navigating through the winter Utilising fleet flexibility – up to 30% capacity reduction Strong liquidity position – NOK 7.8bn in cash Minimising Q1 cash-burn through cost and efficiency focus Well positioned for busy 2023 Encouraging bookings at improved fare level Six additional 737 MAX 8
Slide 17: Book tickets at Norwegian.com
Book tickets at Norwegian.com
Slide 18: Appendix
Appendix
Slide 19: 20 largest shareholders as of 31 December 2022
20 largest shareholders as of 31 December 2022* Name Country Number of shares Per cent 1 Geveran Trading Company, Ltd. Cyprus 133,430,512 14.3 % 2 Sundt AS Norway 106,103,198 11.4 % 3 Folketrygdfondet Norway 46,651,798 5.0 % 4 Ballyfin Aviation Limited Ireland 31,472,703 3.4 % 5 Silver Point Capital
Slide 20: Disclaimer
Disclaimer Certain statements included in this presentation contain forward-looking statements, such as statements of future expectations. Although the statements provided are based on the best reasonable assumptions of management of Norwegian Air Shuttle ASA (“Norwegian”), the statements are based
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