Norwegian Air Shuttle Asa · OSL:NAS

Norwegian Air Shuttle Asa — Q3 2008 Earnings Presentation

14 slides from Norwegian Air Shuttle Asa's earnings presentation, Oct 23, 2008

  1. Slide 1: Norwegian Air Shuttle ASA 3rd Quarter Presentation

    Norwegian Air Shuttle ASA 3rd Quarter Presentation October 23rd 2008 CEO Bjørn Kjos

  2. Slide 2: Double-digit revenue growth continues in Q3 2008

    Double-digit revenue growth continues in Q3 2008 • Group revenues of MNOK 1,972 in Q3 2008, 49 % growth since last year – Domestic Revenue: MNOK 614 (+ 40 %) – International Revenue: MNOK 1,358 (+ 53 %) +49 % 2 000 1 800 1 600 1 400 1 200 1 000 800 600 400 200 0 Q3 04 04 Q3 05 05 Q3 06 06 Q3 07 07 Q

  3. Slide 3: EBITDA improves 36%, margins affected by high fuel price

    EBITDA improves 36 %, margins affected by high fuel price • EBITDA result of MNOK +228 in Q3 08 (MNOK +168) • Group earnings of MNOK +582 before tax (MNOK +106) • Group margin (EBITDA) of 11.6% (12.7 %) EBITDA development Q3 EBITDA Q3 08 breakdown 450 450 Q3 2008 Adjusted EBITDA MNOK + 404 400 400 3

  4. Slide 4: Net change in cash of MNOK +45 (-239)

    Net change in cash of MNOK +45 (-239) • Cash Flows from operations MNOK -312 – Reduction in air traffic liabilites (due to seasonality MNOK -410) • Changed prepayment pattern and route portfolio mix – Delayed processing of credit card transactions (MNOK -100) – Improvement in EBITDA result (MNOK +22

  5. Slide 5: Strong balance sheet

    Strong balance sheet • Equity increased from MNOK 508 at the beginning of the year to MNOK 1,038 at the end of the third quarter • Group equity ratio of 32%. • Sale of USD hedge instruments* resulted in net cash flow of MNOK 324 (to be booked in Q4) Consolidated changes in equity Unaudited YTD Sept

  6. Slide 6: Considerable production growth in Q3

    Considerable production growth in Q3 • Norwegian.no: 35 % production growth • Norwegian.se: 183 % ” ”* 4 000 100 % 86 % 87 % 90 % 3 500 85 % 81 % 80 % 3 000 70 % 69 % 2 500 60 % ASK Norwegian.se 2 000 50 % ASK Norwegian.no Load 40 % 1 500 30 % 1 000 20 % 500 10 % 0 0% Q3 04 Q2 04 Q3 05 Q2 05 Q3 06 Q

  7. Slide 7: 2.6 million passengers – up 541,000

    2.6 million passengers – up 541,000 • Domestic passenger growth of 17 % • International passenger growth of 14 %* • Norwegian.se passenger growth of 98 %** 27 % 2 500 2 000 1 500 Norw egian.se International passengers Domestic passengers 1 000 500 - Q31 04 Q32 05 Q33 06 Q34 07 Q35 08 (000) Norwegian

  8. Slide 8: 43% market share on key routes in Q3

    43% market share on key routes in Q3 • More frequencies attract business travellers • Product enhancements • Norwegian Reward increases domestic transfer 50 % 46 % 44 %45 % 44 % 42 % 39 % 40 % 40 % 38 % 37 % 35 % 34 % 34 %35 % 31 % 28 % 29 % 30 % 20 % 10 % 0% Bergen Trondheim St avanger Tr omsø Berg

  9. Slide 9: Unit cost down 16% (Ex. Fuel)

    Unit cost down 16% (Ex. Fuel) • Unit cost of 0.50 in Q3 2008 - Unchanged from last year • Unit cost ex. Fuel was 0.31 - Down 16 % since last year – FX Effects (leasing, handling charges, airport charges, technical expenses) – Increased stage length – Ongoing cost cutting program 0,55 0,51 0,50 0,50

  10. Slide 10: Significant growth in ancillary revenue

    Significant growth in ancillary revenue • Strong focus and improved products • Increased ancillary revenues expected going forward 70 88 % 60 62 50 40 30 33 20 10 0 Q2 07 Q3 07 Q2 08 Q3 08 Ancillary Revenue 33 62 All figures excluding Norwegian.se

  11. Slide 11: Financing the first aircraft June 2009 – March 2011

    Financing the 10 first aircraft June 2009 – March 2011 • Required equity of 15% in place for delivery of the 10 first 737-800s • Pre-Delivery Payment (PDP) financing in place for the delivery of the 10 first 737-800s • Application for Ex-Im guaranteed long term financing • PDP converted to long term

  12. Slide 12: Expectations for 2009

    Expectations for 2009 • The company expects marginal ASK growth in 2009, but there will be significant adjustments within the route network – Decreasing production in Sweden – Focus on shorter but higher yield routes resulting in a growing number of legs – Reduction of typical weekend leisure destin

  13. Slide 13: Expectations for remaining 2008

    Expectations for remaining 2008 • Business Environment – Sustained demand despite turmoil in the financial markets – Uncertain macro conditions – Seasonal fluctuations • Cost Development – Unit cost in the area of NOK 0,54 for the Group • Fuel price dependent • FX dependent – Down from 0.55 guided i

  14. Slide 14: Norwegian offers 156 routes to 83 destinations

    Norwegian offers 156 routes to 83 destinations

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