Norw egian Air Shuttle ASA (NAS) Q2 2005 August 18, 2005 Oslo 1 - PowerPoint PPT Presentation

Norw egian Air Shuttle ASA (NAS) Q2 2005 August 18, 2005 Oslo 1

Profitable operation ● 531 MNOK in turnover in Q205, compared to 311 MNOK in Q204 ● EBITDA margin of + 6 %, - 12 % last year ● EBIT margin of + 4,4 % MNOK 600 Revenue development 500 400 300 200 100 Q2 03 Q2 04 Q2 05 -12 -38 EBITDA MNOK 31 -6% -12% EBITDA margin % 6% 2

Strong cabin factor ● 46 % production increase from Q204 to Q205 ● 78 % cabin factor in Q205, up from 67% in Q204 ● 91 % cabin factor in July – (87 % domestic & 94 % international) Cabin Factor 940 90 % 80 % 642 78 % 70 % 261 67 % 60 % 61 % 50 % Q2 03 Q2 04 Q2 / 05 Cabin Factor ASK (mill) 273 572 868 PAX (000) 3

Yield level maintained ● Yield of NOK 0,73 in Q205, slightly up from Q204 (0,72) ● Yield levels affected by production program ● Upward momentum from positive pricing climate, improved timetable and effective revenue management %- change in Q2/05 vs. Q2/04 19 % 2 % -2 % -5 % Short dom/Int Long domestic Central Europe Southern Europe 4

Cost targets in sight ● Average unit costs of 0.53 NOK in Q2 2005 ● Achieved unit costs of 0.50 NOK, when adjusted for fuel price increase Q205 - Q204 ● Expected unit cost of 0.53-54 NOK for H205 Cost per ASK NOK/ASK 0,65 0,60 - 7 % * 0,55 0,50 0,45 0,40 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 2005 2006 Target Target (*) Percentage decrease ex. fuel price increase Q205 – Q204 Fuel price increase Q205 - Q204 = 0,03 NOK / ASK 5

Increased fleet utilization ● Aircraft utilization of 9.6 block hours per plane per day, up 26% from Q2 04 (7,6) Block hours / Plane / day Hours 26% 10 8 6 4 2 Q2 03 Q2 04 Q2 05 BH plane pr day 6

Increased crew utilization ● Crew utilization of 761 block hours per crew per year, up 18 % from Q204 ● Pilot and CA utilization increased respectively with 13% and 21 % from Q204 Block Hours / crew / year Hours 18% 800 700 600 500 400 300 200 Q2 03 Q2 04 Q2 05 BH / crew 7

Low er distribution costs ● Distribution costs per sold ticket of NOK 20, down 46% from Q204 (NOK 37) ● 75 % internet sale, up 8%-points from Q204 ● Initiative in cooperation with Amadeus is expected to bring costs even further down NOK 50 - 46 % 40 30 20 10 Q2 03 Q2 04 Q2 05 8

Positive cash flow ● Cash-balance of 233 MNOK ● Positive net change of 48 MNOK ● Prepaid tickets of 302 MNOK, receivables of 140 MNOK CASH FLOW (MNOK) 2nd quarter First half From: 2005 2004 2005 2004 2004 Operation activities 63 250 12 946 61 418 738 -90 847 Investments -24 980 10 571 -13 559 -8 243 -11 964 Financial activities 4 -16 971 3 682 -16 069 38 274 6 547 Net change 47 859 -3 824 -118 879 Opening balance 195 157 314 036 185 572 324 407 314 036 Closing balance 233 431 320 583 233 431 320 583 195 157 9

Sound pricing climate Consumer price index, domestic air-fares 170 160 Oil price USD 67 150 Oil price 140 < USD 20 130 120 110 100 2 competitors 3 comp 2 competitors monopoly 90 jun.99 jun.00 jun.01 jun.02 jun.03 jun.04 jun.05 sep.99 des.99 mar.00 sep.00 des.00 mar.01 sep.01 des.01 mar.02 sep.02 des.02 mar.03 sep.03 des.03 mar.04 sep.04 des.04 mar.05 Consumer price index, domestic air-fares KPI Totalindex Source, SSB 10

Continued expansion ● Expected production increase versus 2004 going forward in 2nd half 05 and Q106, is in the magnitude of 40-45 % ● Mainly from international expansion ASK (mill) 1200 1000 800 600 400 200 0 Q1 05 Q2 05 Q3 04-05 Q4 04-05 Q1 05-06 Actual Expected increase 11

Expectations maintained Expected business environment : ● Continued market increase from low prices ● Price competition at current levels ● Fuel prices at current levels Expected results: ● Unit cost of 53-54 øre / ASK for H2 05 ● Positive operating earnings (EBITDA) for full year 2005 12