Norwegian Air Shuttle Asa · OSL:NAS
Norwegian Air Shuttle Asa — Q2 2010 Earnings Presentation
18 slides from Norwegian Air Shuttle Asa's earnings presentation, Jul 13, 2010
Slide 1: Second quarter presentation
Norwegian Air Shuttle ASA Second quarter presentation Bjørn Kjos - CEO July 13th 2010
Slide 2: Continued revenue growth in Q2
Continued revenue growth in Q2 • Group revenues of MNOK 2,032 in Q2 2010, 7 % growth since last year – Domestic revenue: MNOK 766 (+8 %) – International revenue: MNOK 1,266 (+6 %) +7% Revenues 1,019 1,551 1,901 2,032 Domestic revenue 459 560 709 766 % y.o.y. chg 20 % 22 % 27 % 8% International reven
Slide 3: Operating margin influenced by authorities’ closure of European airspace
Operating margin influenced by authorities’ closure of European airspace – EBITDAR MNOK + 144 (+418) – EBITDA MNOK - 49 (+258) – Operating profit (EBIT) MNOK - 93 (+ 223) – Pre-tax profit (EBT) MNOK - 188 (+245) – Net profit MNOK - 134 (+180) EBITDAR development Q2 EBIT development Q2 Q2 07 Q2 08 Q2
Slide 4: Underlying positive operating margin
Underlying positive operating margin • The closure of European airspace had an immediate earnings effect of MNOK -100 • Market stimulation necessitated by the closure of the airspace reduced revenue by an estimated MNOK 90 in May and June • The realized fuel price per ton was up 44 % in Q2 - 93 Slid
Slide 5: 1.6 billion in cash and cash equivalents
Cash up MNOK 760 compared to Q2 last year 1.6 billion in cash and cash equivalents • Cash flows from operations in Q2 2010 MNOK +311 (+323) – Positively affected by changes in ticket liabilities, receivables and payables – Negatively affected by the seasonal operating result • Cash flows from invest
Slide 6: Group equity of 1.3 billion compared to 1.0 billion in Q2 last year
Group equity of 1.3 billion compared to 1.0 billion in Q2 last year • Equity decreased from MNOK 1,402 at the beginning of the period to MNOK 1,268 at the end of the second quarter • Primarily due to the Q2 operating loss from closure of airspace and unrealized currency effects • Group equity ratio
Slide 7: Production growth of 28 % compared to targeted 38 %
Production growth of 28 % compared to targeted 38 % • 75% load factor in Q2 10 – down 3 p.p. from last year • Load and ASK affected by the closure of European airspace Q2 07 Q2 08 Q2 09 Q2 10 ASK 1,763 2,974 3,469 4,449 Load Factor 79 % 78 % 78 % 75 % Slide: 7
Slide 8: 3.2 million passengers in Q2 (+15%)
3.2 million passengers in Q2 (+15%) (+ 417 000 passengers) • Approximately 300 000 less than planned due to the closure of European airspace Q2 07 Q2 08 Q2 09 Q2 10 Passengers (million) 1,595 2,344 2,784 3,202 Slide: 8
Slide 9: Norwegian with continued strong growth
Passenger volumes at Oslo Airport affected by the closure of European airspace Norwegian with continued strong growth Oslo airport (OSL) – all airlines Oslo airport (OSL) – only Norwegian • - 3 % compared to Q2 2009 • + 8 % compared to Q2 2009 • - 13 % compared to Q2 2008 • + 25 % compared to Q2 200
Slide 10: Stronger foothold in domestic and international markets
Stronger foothold in domestic and international markets *Only April and May for CPH Slide: 10
Slide 11: Underlying cost reduction of 15 %
Underlying cost reduction of 15 % • Unit cost down 1 % despite higher fuel price and closure of airspace – Unit cost higher due to closure of European airspace – More efficient aircraft consumes less fuel • Unit cost excluding fuel and effects from closure of airspace down 15 % – New, more efficient
Slide 12: Continued growth in ancillary revenue
Continued growth in ancillary revenue • Ancillary revenue comprises 12% of Q2 revenues • Ancillary revenue per passenger higher on longer flights Q2 07 Q2 08 Q2 09 Q2 10 Ancillary revenue/ pax 26 42 68 76 Slide: 12
Slide 13: Unitary fleet of efficient Boeing 737-800 already in 2012
Revised fleet plan 2010 – 2014 Unitary fleet of efficient Boeing 737-800 already in 2012 • Phase out of 737-300 accelerated by 2 years • Three more aircraft than previously indicated in 2014 Slide: 13
Slide 14: Accelerated fleet renewal will reduce unit cost further
Accelerated fleet renewal will reduce unit cost further • Cost leader announced additional 19 % cost reduction since the Q4 presentation • Norwegian aims to accelerate fleet renewal by phasing out B737-300 faster Sources: The above graph as presented at the Q4 2009 presentation Slide: 14
Slide 15: Head-on competition with 23 % more emissions pr pax pr KM in 2009
Fleet renewal enhances competitive edge and reduces emissions Head-on competition with 23 % more emissions pr pax pr KM in 2009 • Competitor emitted 127g CO2/RPK in 2009 which is 42% more than Norwegian’s 737-800s • Competitor would have saved 430 million liters of fuel in 2009 if they flew the same
Slide 16: Expectations for 2010
Expectations for 2010 • Business environment – Uncertain business climate – Seasonal fluctuations – Strong competition • Production – The company expects a production growth (ASK) of approximately 30% – Primarily from increasing the fleet by adding 737-800’s – Capacity deployment depending on develo
Slide 17: Norwegian offers 239 routes to 94 destinations
Norwegian offers 239 routes to 94 destinations
Slide 18: Norwegian Air Shuttle ASA
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: 18
Norwegian Air Shuttle — Q2 2010 Earnings Presentation on 6ix