Norw egian (NAS) Norwegian Air Shuttle ASA Oslo, 13. July 2006 Q2 - - PDF document

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Norw egian (NAS) Norwegian Air Shuttle ASA Oslo, 13. July 2006 Q2 - - PDF document

Oct 09, 2022 202 likes •383 views

Norw egian (NAS) Norwegian Air Shuttle ASA Oslo, 13. July 2006 Q2 2006 Bjrn Kjos (CEO) Strong revenue grow th in Q2 765 MNOK revenue in Q2 2006 Revenue growth of 44 % since Q2 2005 MNOK revenue 800 700 600 CAGR 56 % 500

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SLIDE 1

Norw egian (NAS)

Q2 2006

Bjørn Kjos (CEO) Oslo, 13. July 2006 Norwegian Air Shuttle ASA

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SLIDE 2

2

Strong revenue grow th in Q2

  • 765 MNOK revenue in Q2 2006
  • Revenue growth of 44 % since Q2 2005

100 200 300 400 500 600 700 800 Q2 03 Q2 04 Q2 05 Q2 06

CAGR 56 %

MNOK revenue Revenue 215 311 531 765 Earnings after tax

  • 10
  • 27

15 18 EPS

  • 1,18
  • 1,99

1,68 1,76

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SLIDE 3

3

Stable margin

  • EBITDA of 35 MNOK in Q2 2006
  • Earnings after tax 18 MNOK (15 )
  • Margin is stable, taking in the production growth

Q204 Q205 Q206

EBITDA MNOK

  • 40
  • 20

20 40

  • 13 %
  • 11 %
  • 9 %
  • 7 %
  • 5 %
  • 3 %
  • 1 %

1 % 3 % 5 % 7 % EBITDA MNOK EBITDA margin %

EBITDA MARGIN

Revenue 311 531 765 EBITDA MNOK

  • 36

31 35 EBITDA margin %

  • 12 %

6 % 5 %

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SLIDE 4

4

Challenging quarter

  • Promotional prices on 16 new routes

– 11 introduced in May

  • Passenger traffic and regularity affected

– Airport security and ATC irregularities

Q2 Development 80 % 75 % 82 %

70 % 72 % 74 % 76 % 78 % 80 % 82 % 84 %

April May June

  • 5,0

0,0 5,0 10,0 15,0 20,0 25,0 CABINFACTOR EBITDA

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SLIDE 5

5

Other revenue key contributor

  • Contributes strongly to bottom line results
  • Increased 58 % since Q205

10 20 30

Q2 05 Q2 06

EBITDA MNOK Other revenue Other revenue

On-board sales Overweight Commission Hotel & Car-rental Service fees

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SLIDE 6

6

Strong cash flow from advanced bookings

  • Positive cash flow from operation of 141 MNOK
  • Investments Aircraft purchase
  • Cash and equivalents 535 MNOK

20 40 60 80 100 120 140 160 180 200 Q1 Q2 Q3 Q4 2005 2006

Operating activities MNOK

CASH FLOW (TNOK) From: 2006 2005 Operating activites 141 493 61 438 Investments

  • 128 525
  • 13 579

Financial activities

  • 4
  • Net change

12 963 47 858 Opening balance 522 538 185 572 Closing balance 535 501 233 431 Second quarter

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SLIDE 7

7

Capacity grow th on track

  • 41 % increase in production from Q205 to Q206
  • Load factor leveling out at 80 % (still available seats!)

M ASK

200 400 600 800 1000 1200 1400 Q2 03 Q2 04 Q2 05 Q2 06 50 % 51 % 52 % 53 % 54 % 55 % 56 % 57 % 58 % 59 % 60 % 61 % 62 % 63 % 64 % 65 % 66 % 67 % 68 % 69 % 70 % 71 % 72 % 73 % 74 % 75 % 76 % 77 % 78 % 79 % 80 % 81 % 82 % 83 % 84 % 85 % ASK Cabin Factor

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8

Strong passenger grow th

  • Approaching 9 000 passengers per employee (7 000)
  • 50 % passenger growth on international routes

Thousand pax

100 300 500 700 900 1100 1300 Q2 03 Q2 04 Q2 05 Q2 06

PAX (000)* 273 572 868 1 289

110 % 52 % 49 %

*Tickets sold for travel

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SLIDE 9

9

Enhanced competitive position

  • 38 % market share on key domestic routes, 7 pp growth
  • Capacity increased by 16 % since Q205

% Market Share

33 % 34 % 26 % 27 % 40 % 41 % 34 % 35 %

20 % 25 % 30 % 35 % 40 % 45 % Bergen Trondheim Stavanger Tromsø Q2 05 Q2 06

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SLIDE 10

10

Strong revenue grow th, both domestic and international

  • Domestic turnover increased by 36 % since Q2 2005
  • International turnover increased by 53 % since Q2 2005

MNOK

50 100 150 200 250 300 350 400 450 Q2 04 Q2 05 Q2 06 Turnover domestic Turnover abroad

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SLIDE 11

11

Still a guarantor for low fares

  • Domestic prices are down 5 % Q206 compared to Q205
  • International fares are down due to promotional pricing and

competition on new routes

40 60 80 100 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Domestic International

Norwegian's average ticket price - index

(Q1 03 = 100)

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12

0,40 0,45 0,50 0,55 Q2 05 Q2 06

  • Unit costs of 0.55 NOK in Q2 06
  • Cost level affected by higher fuel prices and one offs
  • Given same fuel price level as Q205, EBITDA of 75 MNOK in Q206
  • Cost initiatives on track;
  • Amadeus, apprentice program, handling and utilization

CASK INCREASED DUE TO FUEL AND IRREGULARITIES

Fuel One offs 0,53 0,55

CASK

Engine overhaul ATC irregularities EU refunds from irregularities Added fuel cost Aircraft damaged at Sola airport Wet lease due to late aircraft arrival 0,03 0,01 0,51

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SLIDE 13

13

Increased fleet and crew utilization

  • Crew utilization of 785 block

hours per crew per year, up 3 % from Q2 2005 (761)

  • Aircraft utilization of 10,5 block

hours per plane per day, up 9 % from Q2 2005 (9,6)

Block hours/plane/day 6 7 8 9 10 11 Q204 Q205 Q206

Block hours/crew/year 400 500 600 700 800 900 Q2 04 Q2 05 Q2 06

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SLIDE 14

14

Product advancement

Flexibility Possibility Fairly pricing Availability

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SLIDE 15

Leading Nordic LCC Leading Nordic LCC

81 routes

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SLIDE 16

16

Expectations for 2006

Expected business environment :

  • Increased competition on international routes
  • Continued price competition on northbound routes
  • Continued irregularities on OSL and ATC

Expected results (ex start up in Poland)

  • Q2/Q3 06 total unit cost in the range of NOK 0,53+

– At current fuel and currency level

  • Increased handling costs in Q3 06
  • Improved margins for the year (however further increase in fuel prices may change

margins for the year) Expected results Poland start up

  • Poland base is not expected to be profitable in 2006, due to start up costs and low

introductory prices.

  • Two aircraft operation is expected to produce 275 MASK in 2006 and 600 MASK first

full year

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SLIDE 17

Thank you,

  • and fly Norw egian!