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

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Norw egian Air Shuttle ASA (NAS) Q2 2005

August 18, 2005 Oslo

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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 %

EBITDA MNOK

• 12
• 38

31

Revenue development

100 200 300 400 500 600 Q2 03 Q2 04 Q2 05 MNOK

EBITDA margin %

• 6%
• 12%

6%

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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)

78 % 61 % 67 %

261 642 940

50 % 60 % 70 % 80 % 90 % Q2 03 Q2 04 Q2 / 05

Cabin Factor

Cabin Factor ASK (mill)

PAX (000)

273 572 868

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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

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Cost targets in sight

Cost per ASK

0,40 0,45 0,50 0,55 0,60 0,65 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 2005 Target 2006 Target

NOK/ASK

(*) Percentage decrease ex. fuel price increase Q205 – Q204

• 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
• 7 % *

Fuel price increase Q205 - Q204 = 0,03 NOK / ASK

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Increased fleet utilization

• Aircraft utilization of 9.6 block hours per plane

per day, up 26% from Q2 04 (7,6)

2 4 6 8 10 Q2 03 Q2 04 Q2 05

Hours

BH plane pr day

26%

Block hours / Plane / day

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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

200 300 400 500 600 700 800 Q2 03 Q2 04 Q2 05

Hours

BH / crew

18%

Block Hours / crew / year

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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

10 20 30 40 50 Q2 03 Q2 04 Q2 05 NOK

• 46 %

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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) From: 2005 2004 2005 2004 2004 Operation activities

61 418 738

63 250 12 946

• 90 847

Investments

• 13 559
• 8 243
• 24 980

10 571

• 11 964

Financial activities

3 682

4

• 16 971
• 16 069

Net change

47 859

• 3 824

38 274 6 547

• 118 879

Opening balance

185 572 324 407

195 157 314 036

314 036

Closing balance

233 431 320 583

233 431 320 583

195 157

2nd quarter First half

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Sound pricing climate

Consumer price index, domestic air-fares

90 100 110 120 130 140 150 160 170 jun.99 sep.99 des.99 mar.00 jun.00 sep.00 des.00 mar.01 jun.01 sep.01 des.01 mar.02 jun.02 sep.02 des.02 mar.03 jun.03 sep.03 des.03 mar.04 jun.04 sep.04 des.04 mar.05 jun.05 Consumer price index, domestic air-fares KPI Totalindex 3 comp 2 competitors monopoly 2 competitors

Oil price < USD 20 Oil price USD 67

Source, SSB

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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

200 400 600 800 1000 1200 Q1 05 Q2 05 Q3 04-05 Q4 04-05 Q1 05-06

ASK (mill)

Actual Expected increase

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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