Norwegian Air Shuttle ASA1st Quarter Presentation
April 23rd 2009
CEO Bjørn Kjos
• Group revenues of MNOK 1,387 in Q1 2009, 27 % growth since last year
– Domestic Revenue: MNOK 606 (+ 39 %)
– International Revenue: MNOK 781 (+ 20 %)
0
200
400
600
800
1 000
1 200
1 400
1 600
Q1 06 Q1 07 Q1 08 Q1 09
Revenue (MNOK) 539 738 1 089 1 387
Domestic 335 402 437 606
International 204 336 651 781
Domestic Growth 36 % 20 % 9 % 39 %
International Growth 180 % 65 % 94 % 20 %
Continued strong revenue growth in Q1
+ 27 %
MNOK
Net result improved by 101 million in Q1
• EBITDAR result improved by 194 million
• EBITDA result improved by 124 million
• Group earnings after tax of MNOK -109 (MNOK -211)
– Includes MNOK 35 in start-up costs in Copenhagen
EBITDAR development Q1 EBITDA development Q1 09
-102
-52
-226
-9
-250
-200
-150
-100
-50
0
50
100
Q1 06 Q1 07 Q1 08 Q1 09
MNOK
-11
44
-145
49
-250
-200
-150
-100
-50
0
50
100
Q1 06 Q1 07 Q1 08 Q1 09
MNOK
MNOK + 41 net change in Cash and Cash Equivalents in Q1
• Cash Flows from Operations in Q1 2009 MNOK +125 (+14)
• Cash Flows from Investing Activities in Q1 2009 MNOK - 81 (- 63)
• Cash Flows from Financing Activities in Q1 2009 MNOK - 4 (- 6)
• Cash and cash equivalents at period-end MNOK 649 (447)
(NOK 1 000) Q1 09 Q1 08 2008
Net cash flows from operating activities 125 426 14 423 -133 124
Net cash flows from investing activites -81 912 -63 419 164 333
Net cash flows from financial activities -3 913 -5 946 93 592
Exchange rate effect on cash 1 748 559 4 264
Net change in cash and cash equivalents 41 348 -54 383 129 065
Cash and cash equivalents in beginning of period 607 536 501 410 478 471
Cash and cash equivalents in end of period 648 885 447 027 607 536
Strong balance sheet
• Equity decreased from MNOK 897 at the beginning of the year to
MNOK 791 at the end of the first quarter
– Primarily due to the Q1 operating loss
• Group equity ratio of 22 % (22 %)
(NOK 1 000) Q1 09 Q1 08 2008
Total borrowings 683 678 297 947 698 330
Cash and cash equvalents 648 885 447 028 607 536
Net debt 34 793 -149 081 90 794
Total equity 790 646 300 563 897 368
Total capital 825 439 151 482 988 162
Gearing ratio 4,22 % 0,00 % 9,19 %
• 75 % load factor in Q1 09 - down two percentage points from last year
– New base in Copenhagen
– More domestic and business production
77 %75 % 77 %
75 %
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
ASK Total*
Load Factor
Q1 06 Q1 07 Q1 08 Q1 09
ASK Total* 933 1 342 2 182 2 674
ASK (mill) norwegian.no 933 1 342 1 855 2 233
Load Factor norwegian.no 77 % 75 % 78 % 74 %
ASK (mill) norwegian.se - - 327 442
Load Factor norwegian.se - - 73 % 77 %
Production growth of 23% in Q1
* Unadjusted for code share between norwegian.no and norwegian.se in 2007
ASK
(mill)
0
500
1 000
1 500
2 000
2 500
International Passengers
Domestic Passengers
(000) Q1 06 Q1 07 Q1 08 Q1 09
Total Passengers 1 014 1 303 1 997 2 105
Domestic Passengers 604 696 802 1 002
International Passengers 410 607 1 195 1 103
• Domestic passenger growth: + 25 %*
• International passenger growth: - 8 %
More than 2 million passengers in Q1
(+ 108,000 pax)
*Domestic Norway
+5 %
Pax
(000)
Increasing Domestic Market Share
• 25 % passenger growth
• 12 new domestic routes in Q1 2009 compared to Q1 2008
• Stable 44 % market share on key domestic routes*
– Capacity reduction during seasonaly weak winter months
42 %
43 %
34 %
38 %
43 % 43 %
37 %
32 %
47 %
46 %
43 %
34 %
48 %
44 %
43 %
35 %
25 %
30 %
35 %
40 %
45 %
50 %
Q1 06
Q1 07
Q1 08
Q1 09
Bergen Trondheim Stavanger Tromsø
*Only traffic from OSL
Unit Cost Down 8 %
• Unit cost of 0.56 in Q1 – Down 8 % since last year
• Unit cost ex. fuel was 0.45 - Up 1 % since last year
– Negative currency effects (leasing, handling charges, airport charges, technical expenses)
NOK
0,50
0,44 0,45
0,13
0,11
0,16
0,11
0,45
0,56
0,60
0,56
0,63
0,30
0,35
0,40
0,45
0,50
0,55
0,60
0,65
0,70
Fuel share of CASK
CASK ex. Fuel
Q1 06 Q1 07 Q1 08 Q1 09
0
10
20
30
40
50
60
70
80
(pr. pax) Q1 07 Q1 08 Q1 09
Ancillary Revenue 27 52 72
• Strong focus and improved products
Significant growth in ancillary revenue
All figures excluding norwegian.se
40 %
NOK
Fleet update 2009
• Redelivery of the remaining MD-80 aircraft during 2009
• Year-end fleet of 45 aircraft whereof 17 new Boeing 737-800
• The total 737-800 fleet in 2014 is expected to comprise 58 aircraft
710
1215
17
28
28
28
28
28
5
54
1
454444
43
40
0
5
10
15
20
25
30
35
40
45
50
MD-80
Boeing 737-300
Boeing 737-800
(Period-end) Q4-08 Q1-09 Q2-09 Q3-09 Q4-09
Boeing 737-800 7 10 12 15 17
Boeing 737-300 28 28 28 28 28
MD-80 5 5 4 1 0
Expectations for 2009
• Business Environment
– Slowdown in the business environment expected throughout 2009
– Uncertain macro conditions
– Seasonal fluctuations
• Cost Development
– Unit cost in the area of NOK 0,51 for the Group
• Fuel price dependent – USD 625 per ton
• Currency dependent – USD/NOK 6.50
• Based on the current route portfolio
– Continued focus on the cost reduction program accross the organization
• Subsidiaries/ Bases
– Denmark: A fleet of 5 aircraft based at the Copenhagen base
– Sweden: Norwegian.se will continue to focus on the restructuring
and optimizing efforts
– Poland: Uncertain macro conditions and signs of weakening
demand
Norwegian offers 175
routes to 83 destinations