View
1
Download
0
Category
Preview:
Citation preview
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
SAS ABAnalyst Handout
1st Quarter 2003
Stockholm – SAS Head office, May 13th
London – Savoy Hotel, May 15th
5/13/0322
First quarter even weaker than expected 1st Quarter 2003 – probably weakest quarter in history for European airlines
Unprecedented number of negative factors Weaker world economiesSignificant yield pressure and pressure on traffic volumesIraq and SARS situationAdditional pressure on traffic volumes
� Severe impact on revenues – difficult to offset in the short term
Short term actions Capacity reductions implemented and salary freeze 2003
Cost reductions highest priority. Significant measures under implementation
Plan A completed as plannedPlan B ahead of planPlan C rapid implementation
5/13/0333
Group airlines recent capacity adjustments
down 5-10% from May/June
down 5-10%
down 7%
down 5-10%
ASK
5/13/0344
SAS Group weakest Quarter ever
MSEK 2003 2002 Adj. change
� Revenue 13 710* 13 775* -4,5%**� EBITDAR -398 584
� EBT bef. overcapacity -1 739^ -1 446� EBT bef. cap gains -1 939 -1 313
* Spanair not consolidated Jan-Feb 2002** Adjusted for comparable units^ EBT before gains and cost of in phace out of overcapacity corresponding to MSEK 200
1st Quarter
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/0355
SAS Group 1st Quarter EBITDAR and CFROI
MSEK 2003 2002
� Revenue 13 710 13 775
� EBITDAR -398 584
� EBITDAR -3% 4%margin
� CFROI 11% 6%
5/13/0366
SAS Group 2002 – Quarterly EBTEBT bef gainsMSEK million
77 142
-421
-1613
-1313
1180
15
-809
-1939
-2 500
-2 000
-1 500
-1 000
-500
0
500
1 000
1 500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2001 2002 2003
5/13/0377
Scandinavian Airlines2003/2002 Quarterly EBITDARdevelopment
EBITDAR, Scandinavian AirlinesMSEK
-500
0
500
1 000
1 500
2 000
Q1 Q2 Q3 Q4 Q1
2002 2003
5/13/0388
Severe Revenue Pressure Passenger revenues down 1 100 MSEKScandinavian Airlines
�Revenues 6 588 MSEK - 16.3 %
• Volume - 6.3 % • Yields* - 8.8 %• Currency -1.8 %
1st Quarter
* Including Intercont effect and reduced travel agency comissions
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/0399
SAS Group’s path to profitability and long term competitiveness
2001 2002 2003-
Short term measures Structural measures
• To compensate for
•Yield pressure
•Insurance costs
•Inflationary effects
Implemented according to plan
• MSEK 6 400 with full effect 2005 whereof 1 600 MSEK revenue enhancement
3 000 MSEK 2003
• 5 500 MSEK 2004
• 6 400 MSEK 2005
Implementation ahead of plan
MSEK 8 000 MSEK+ 1 000 MSEK in Subs. & Affiliated Airlines
•Efficient production platform
• New Business model
• Enable active price reductions
• Clear group portfolio view
Rapid implementation
Long term profitability and competitiveness
A B C
5/13/031010
Major steps of change implemented so far
New organization implemented in July 2002Clear responsibilities & transparency
New production philosophy hub and spoke 95%Reduced traffic peaks in Copenhagen
New distribution strategy – net pricingROSA – Reduction of Overhead Support & Administration –reduction of MSEK 800 in costsChanged labour agreements=> far reaching productivity and compensation improvementsNew product concepts – Scandinavian Direct and a new Europe conceptSalary freeze from April 2003
AESALC
A LFA MS
A RN
B DU
BGO
B OO
BR U
C DG
C PH
D UBD US
EVEEW R
F COF RA
GOT
HA U
KK N
K RS
L HR
MAN
MX P
N CE
SV GTOS
TRD
AALAARAGPAL CAMS
ARNBCN
BGOBHX
BKKBLQ
BRUBUD
CDG
CGNDEL
DUBDUS
EWR
FCOFRA
GDNGOT
GVAHAJ
HAMHEL
IADJKG
KGDKRKKSDLEDL HRL INMADMANM UC
MXPNCE
NRKNRT
ORBORD
OSLPEK
PMI
POZ
PRGSEA
SFJST N
ST R
SVGSVO
T LVT RD
TRFVIE
VNOVST
VXOWAWWROZRH
Nytt koncept
AGHAMS
BR UCD G
CPH
DU BD US
EW R
FCO
FRA
GOT
GV A
HAM
H EL
K ID
KL R
K RNK SD
LEDLH R
LINLL AMMXMX PNCE
OERORD
OSD
OS L
R NB
SDL
SFT
S TN
SV O
T KU
TLL
TMP
TXLUME
VNOVXO
W AWZRH
0
5
0
5
0
5
0
5
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24Time
S03W02S02
5/13/031111
Key outcome of union negotiations� Pilots
– Work day from 10,5 to 12 hrs/day– Hours/week up from 42 to 45– Pilot blh
• 700 hours short haul 750 long haul– Pay freeze 2003/2004
� Cabin crew negotiations adjourned– Implementation of better utilization measures as
from July– Redundancies to come gradually July/August
� SAS Technical Services– Base Maintenance to Stockholm– New schedule agreements
� Other personell– Per diem– Overhead & Administration reduction of 50%
5/13/031212
Next steps
� New Organization Scandinavian Airlines– Three bases– Decentralization
� Production from bases– Crew– personell
� Significantly improve – aircraft utilization– crew utilization
� Technical Base Maintenance to Stockholm� Impact of Plan C in 2003 approximately
MSEK 400
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/031313
What characterizes an highly efficient What characterizes an highly efficient airline?airline?
Aircraft
• High utilizationShort/ Medium haul 9-10 hrs Long haul 15 hrs
• minimize stopovers
• Few aircraft types
•One base –one hub
The efficient airlineEfficient production platform
CrewCrew
Minimize passive transfers and night stops
Crew utilization –700-900 blh
Other conditions in line with government regulations
Few aircraft types
Technical maintenance
• Critical mass
• Allocation of bases
• A/c types
• standardized aircraft
Station service
• High level automation
•Uncomplicated products
Sales & Distribution
• Cheapest prices only on the internet
• Strong incentive to use internet for most other ticket types
• Simple price structures
• Efficient call center structure
Overhead & Support
• Simple organization
•Uncomplicated planning process – one base = one aircraft type
•Uncomplicated products
5/13/031414
The SAS Group targeted position in the aviation market – a greater diversity of travel choices
Traffic flowsTraffic flowsGeography Geography –– size of markets size of markets –– customers customers -- competitorscompetitors
Business modelsBusiness modelsAdapted for each business flowAdapted for each business flow
Efficient production platformEfficient production platformGiven flow and business modelGiven flow and business model
Competitiveness Competitiveness -- profitabilityprofitability
Future role of each Future role of each airline in the groupairline in the group Review of the roles of the group airlines in the groups traffic Review of the roles of the group airlines in the groups traffic networknetwork
5/13/031515
Traffic flow determine cost level
Competitive unit cost in each traffic flowDomestic and southern Europe most comodity like type of flow“Big five” European destination and intercontinetnal room for more premium product featuresEnable active price reductions
Long term profitability and competitveness
5/13/031616
Strategic development
� Intercontinental and Europe (2 service-levels)
– On par with best full service operators in Europe (price, costs, service)
– Lowest prices close to the levels of the low cost carriers (on main airports)
� Intrascandinavia, domestic and Southern Europe– On par with (price, costs and service) with the low
cost carriers (on main airports)
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/031717
Group gGroup gapap analysisanalysis vsvs high high efficiency airlinesefficiency airlines ((base base 2003)2003)
25-40% (pending type of traffic flow)Mainly in aircraft utilization, overhead costs, crew utilization, complexity
5-10% (Norwegian domestic) Mainly in aircraft and crew utilization
At least 10%
Meet most criteria's today
Meet most criteria's today –
(0-5% gap Finland- Scandinavia)
5/13/031818
Potential of 8 000 MSEK in Scandinavian Airlines & Support Businesses
8 000
1 000
3 400
600
1 500
600
900In flight
SGS/STS/WS
Overhead – SharedServices
Production
Overhead – SK
New agreements
– Servicelevel, call centers, increased on-line sale
– One base for heavy maintenance
– 50% staff reduction
New agreements with– Pilots– Cabin crew
Initiative
Total identified potential
- Separation of the bases- More effecient traffic planning and more co-ordination with crew
– staff reduction
Base 2003*
* Including effects from Structural measures 2003
5/13/031919
CPHCPH
OSLOSLOSLOSL
Streamlined organization for a/c and flight deck
OSL STO
CPH
�Advantage– Improved a/c productivity (less complex planning) – Reduced type costs for C/A and F/D (productivity and stand-by)– Reduced type costs for technical maintenance (personal, spare parts and quality)
Overhead reductions by 50% in Scandinavian Airlines- To be implemented as from August
OSL STO
CPH
� C/A, F/D� MD, 737, A321
� C/A, F/D� MD, 737, A321
� C/A, F/D� MD, 737, A321
� C/A, F/D � 737
� C/A, F/D � 737 (MD)
� C/A, F/D � MD
5/13/032020
SAS Technical Services (STS) concentrate its maintenance to Stockholm
Base maintenance to Stockholm but heavy maintenance in Oslo. Line maintenance at all airports.Approximately 900 redundancies due to shift
Additional measures to be implemented to reduce costs significantly
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/032121
Scandinavian Airlines production system simplified with full co-ordination with crew
� Before short term measures � Structural measures
� Long term competitiveness
� A/C� Crew
– No hub & spoke for aircraft
– No co-ordination between aircraft and crew
– Hub & spoke for aircraft– No co-ordination
between aircraft and crew
– Hub & spoke for aircraft– High co-ordination
between aircraft and crew
A/C and rew together
A B C
5/13/032222
Europe:
Business Class –premium market medium haul still valid� Service and new procedures
onboard focuses on Business Class
� A new meal concept meets customers’ expectations:fewer, bigger, simpler and tastier dishes of high quality
� Cold Scandinavian breakfast with warm bread and good coffee
5/13/032323
Snowflake – over 70% cabin factor in April
More than 100 000 bookings before first take offTrip is booked one way. Two single trips area round tripOne price is offered on each separate booking occasion No advance booking rules, no stay-away rules =
simple and clear rules
www.flysnowflake.com5/13/0324
24
1st Quarter revenues normally MSEK 1 500 – 2 000 weaker than Q2
January, February, July and December seasonally weak monthsRevenues in Q1 in average 16% lower than Q2 the last four yearsAcquisition of Spanair has reduced seasonality slightly
Winter WinterSummer
jan feb mar apr maj jun jul aug sep okt nov dec
1999
2000
2001
2002
2003
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/032525
Significant pressure on revenue halts EBITDAR improvement
EBITDAR MSEK million
� EBITDAR in Q1 2003 was -398 (584) MSEK
EBITDAR – Scandin Airl. -382 MSEK– Braathens 104 MSEK– Spanair -109 MSEK– Widerøe 56 MSEK– Air Botnia 6 MSEK
-1 000
-500
0
500
1 000
1 500
2 000
2 500
3 000
3 500
Q1 Q2 Q3 Q4
2001 2002 2003
5/13/032626
Earnings before tax - business area
Business area Q1 03 Q1 02 ChangeScandinavian Airlines -1 253 -849 -404Subsidiary & aff. Airlines -564 -350 -214Airlines Support Businesses -128 -19 -109Airline Related Businesses -16 +34 -50Hotels -115 -85 -30Group eliminations 200 -177EBT -1 876 -1 446 -430
5/13/032727
5/13/032828
Passenger revenue 6 588 7 866
Other revenue 846 710
Operating revenue 7 434 8 576
EBITDAR -382 257
EBIT -1 086 -664
EBT -1 253 -849
January – March 2003 2002
Weak and uncertainty on Scandinavian Airlines’ markets
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/032929
(1,2)
0,5
0,1
(0,5)
-1,4
-1,2
-1
-0,8
-0,6
-0,4
-0,2
0
0,2
0,4
0,6
Tota
lre
venu
e
Tota
lco
sts
Leas
e,de
pr, N
etfin
anc.
Tota
lch
ange
Measures and Turnaround offset by severe pressure on revenues
MRD
Volume (RPK) -6% -0,5Yield -9% -0,7
Turnaround +0,8Provisons +0,2Volume +0,2Increased prices:Fuel & Governm. - 0,3Inflationary comp. - 0,5Others incl curren. +0,1
5/13/033030
Number of employees down – payroll expenses up due to pensions and payroll ”overhang”from 2001
Act 2002
Act 2003
1 800
1 700
1 600
-1 593
-1 848
Pay increases
Volume Pension Currency Other
-130 +130 -210 -15 -30
MSEK
Number of employees down 8,5%, but offset by increased pension costs and pay increasesPay freeze as from April 2003 for all employees in Scandinavian Airlines 300 pilots to leave as from April 50% of overhead and administration reduction to be implemented in Plan C
Payroll cost Scandinavian Airlines
5/13/033131
Scandinavian Airlines Number of personnel
6 000
6 500
7 000
7 500
8 000
JAN02 FE
BMARAPR MAJJU
NJU
LAUGSE
POKTNOVDEC
JAN-0
3FE
BMARAPR MAJJU
NJU
LAUGSE
POKTNOVDEC
6 995
7 778
ACT
Forecast
6 607
5/13/033232
Operating unit cost trend reversed
�Units costs are down in spite of reduced volumes (ASK) (-3%)
�Cost reductions give effect
�Q1 affected by costs for over capacity
-4%
-2%
0%
2%
4%
6%
8%
10%
1st Q2001
2nd Q2001
3rd Q2001
4th Q2001
1st Q2002
2nd Q2002
3rd Q2002
4th Q2002
1st Q2003
Index last year(currency adjusted) Scandinavian Airlines
* * = Method change
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
3333
Plan B ahead of plan
290 300
440 430
Plan Status March 2003
20002600
44003800
Plan Status March 2003
Number of activities compared to plan
730 7306400 6400
Total financial effect of implemented activities compared to planMSEK
To be implemented
Implemented
41%
31%
40% 41%
3434
41% of Plan B implemented
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
nov-0
2feb
-03
may-0
3au
g-03
nov-0
3feb
-04
may-0
4au
g-04
nov-0
4feb
-05
may-0
5au
g-05
nov-0
5
Target - EBT effect 2005 Captured - EBT effect 2005
MSEK
5/13/033535
Domestic incl. intrascandEuropeIntercontinental
Total
Reduction in capacity in 2003 for Scandinavian Airlines
Capacity forecast for 2003 vs. 2002
-18%+4%
+11%
+1%
-2%-4%-3%
-3%
Recent adjustment
5/13/033636
Scandinavian Airlines keyairline profitability drivers
Traffic (RPK) down 6,3%Cabin Factor down 2,1 p.u.Yields (currency adjusted) down 8,8%
Unit costs down 2,0%
January-March
2003 vs 2002
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/033737
Passenger YieldJanuary-March 2003 vs 2002
Nominal Currency AdjustedRoute Sector yield effect yield
Scandinavian Airline 89 98 91
Intercontinental 87 108 94Europe 94 102 95Intrascandinavian 96 100 96Denmark* 132 101 133Norway 108 97 105Sweden 98 100 98*) Incl Greenland 2002
5/13/033838
Passenger load factor down for most Group airlines�Total traffic decreased by 4,2% vs. Q1 in 2002 �Total capacity reduced by 0,4% vs. Q1 in 2002
– Group passenger load factors hit by weak economies, Iraq and SARS situation
Q1 passenger load factorsScandinavian Airlines -2,1 p.u. 60,9% Spanair -4,3 p.u. 55,0% Braathens +1,3 p.u. 52,7%Widerøe +1,0 p.u. 49,1%Air Botnia -2,3 p.u. 41,0%
5/13/033939
SAS Group exposure for SARS
� SARS exposure to only 5% of revenues
Dom. Denmark2%
Intrascand12%
Europe42%
USA7%
Asia5%
Dom. Norway22%
Dom. Sweden10%
Revenue distribution 2002
5/13/034040
Scandinavian Airlines passenger load factors in line with AEA average
40
45
50
55
60
65
70
75
80
1 5 9 13 17 21 25 29 33 37 41 45 49 1 5 9 13
Pas
s lo
ad f
acto
r (%
) 3
wee
ks r
olin
g
SK (GeograpicalEurope)Spanair
AEA (GeograpicalEurope)
Source: AEAWeek 2002-2003
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/034141
Yield development under pressure Scandinavian Airlines
� Pressure on yield accelerated in 4th Quarter� Continued pressure 1st Quarter – same level
-15%
-10%
-5%
0%
5%
10%
Jan Feb Mar Apr May Jun jul Aug Sep Oct Nov Dec
Europe
2 per. Mov. Avg.(Europe)
Europe (yield) change vs. last year
5/13/034242
-60
-40
-20
020
40
60
80
100
37 42 47 52 5 10 15 20 25 30 35 40 45 50 3 8 13
� Airbus A340 introduced on New York many routes
� Reductions to/from New York in April, May & June
� Traffic in Q1 2003:– European airlines
(AEA) traffic up 4,1%– SAS traffic up 15,6%
� Airbus A340 introduced on New York many routes
� Reductions to/from New York in April, May & June
� Traffic in Q1 2003:– European airlines
(AEA) traffic up 4,1%– SAS traffic up 15,6%
Cabin factor (%) North Atlantic
6065707580859095
100
Janu
aryFe
brua
ryMarc
hApr
ilMayJu
ne July
Augus
tSe
ptembe
rOcto
ber
Novem
ber
Decem
ber
Janu
aryFe
brua
ryMarc
h
Month SAS AEA
Traffic on North Atlantic hit by war in Iraq but recovery noted in bookings
RPK
5/13/034343
-30
-20
-10
0
10
20
30
40
39 43 47 51 3 7 11 15 19 23 27 31 35 39 43 47 51 3 7 11
Week SAS AEA
� Scandinavian Airlines ranked high in customer surveys
� Reduced capacity to Beijing and Bangkok/Singapore
�Strengthened market position
�Traffic in Q1 2003:– AEA traffic down 0,8%– SAS traffic up 6,6%
� Scandinavian Airlines ranked high in customer surveys
� Reduced capacity to Beijing and Bangkok/Singapore
�Strengthened market position
�Traffic in Q1 2003:– AEA traffic down 0,8%– SAS traffic up 6,6%
Cabin factor (%) Asia
70
75
80
85
90
95
Janu
aryFe
brua
ryMarc
hApr
ilMayJu
ne July
Augus
tSe
ptembe
rOcto
ber
Novem
ber
Decem
ber
Janu
aryFe
brua
ryMarc
h
Month SAS AEA
Asian traffic severely affected by SARS
RPK
5/13/034444
-20
-15
-10
-5
0
5
10
15
20
25
30
39 43 47 51 3 7 11 15 19 23 27 31 35 39 43 47 51 3 7 11
WeekSAS AEA
� Weak market� Cabin factor worse � Traffic in Q1 2003:
– AEA traffic down 0,1%– SAS traffic down 6,8%
� Some recovery in April
� Weak market� Cabin factor worse � Traffic in Q1 2003:
– AEA traffic down 0,1%– SAS traffic down 6,8%
� Some recovery in April
European routes affected by uncertain market conditions
Cabin factor (%) Europe
45505560657075
Janu
ary
Febr
uary
March
April
MayJu
ne July
Augu
stSe
ptem
ber
Octobe
rNov
embe
rDec
embe
rJa
nuar
yFe
brua
ryMar
ch
Month SAS AEA
RPK
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/034545
Yields under sever pressure2001- 1st Quarter 2003 Total system - currency adjusted
� Yields down 8,8% in 1st Quarter 2003– Class mix negative– Campaigns– More RPK’s of
intercontinental traffic with lower yield
– Positive Easter effect in March
� Reduced commissions by ~3%
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
3rdQuarter2001
4thQuarter2001
1stQuarter2002
2ndQuarter2002
3rdQuarter2002
4thQuarter2002
1stQuarter2003
5/13/034646
ECA –European cooperation agreement continued negative effects
� Tri-party Joint Venture agreement with BMI, Lufthansa and SAS signed November 9, 1999
� In effect from January 1, 2000� Main scope: To integrate the parties scheduled pass.
transport to/ from London/ Manchester� Negative result effect 2002: MSEK 418 (335)
� Effect Q1 2003 - MSEK 120
5/13/034747
0
10
20
30
40
50
60
1998
-01-02
1998
-03-30
1998
-06-26
1998
-09-21
1998
-12-16
1999
-03-16
1999-0
6-15
1999
-09-08
1999
-12-01
2000
-02-29
2000-0
5-26
2000
-08-21
2000
-11-14
2001-0
2-12
2001-0
5-10
2001
-08-03
2001
-10-30
2002-0
1-25
2002-0
4-24
2002
-07-23
2002
-10-15
2003-0
1-10
2003
-04-04
US
Dol
lar p
er B
arre
l
0
50
100
150
200
250
300
350
400
450
US D
ollar per Metric Ton
Brent 1st Nearby Close
Jet CIF Cargoes NWE
Brent Crude vs. Jet FuelJanuary 1998 to Date
5/13/034848
2003 fully hedged
� Average rates:� 2000 265 USD/MT� 2001 255 USD/MT� Q1 2002 196 USD/MT� Q2 2002 226 USD/MT� Q3 2002 235 USD/MT� Q4 2002 258 USD/MT� Q1 2003 278 USD/MT
Current hedging until year end 95%Call options in jetEstimated jet fuel cost MSEK 3 400
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/034949
Scandinavian Airlines’ new net pricing concept as from 2003
• Net price concept to be introduced 1st January 2003
• Prices lowered with same amount as commissions (app 3%)
• Agent will set their own price to the customer
• Markup can vary from channel to channel
• Introduction of service fees in SAS’ direct channels
• Introduction of new agent program
• 90% of agents agreed
4/7 %
SA
S P
ric e
SA
S P
ric e
Agentmark-up
possibility
Today Tomorrow
SA
S P
ric e
SAS direct sales
mark-up
SAS Price
SAS Price
SAS Price
4,7%
5/13/035050
Electronic Channelsincreased to 31% in Q1
0%
5%
10%
15%
20%
25%
30%
35%
jan-0
0mar
-00
maj-00
jul-0
0se
p-00
nov-0
001
-jan
01-m
ar01
-maj
01-n
ovQ1-2
002
Q3-200
2Q1-2
003
% Sold - Travel Pass, Travel Pass Corporate, ETIX, Internet% Sold via Internet
� Important to reduce cost of sales
� Total volume E-channelsin Q1 MSEK 2 127
� 31% of total passenger sales in Q1
� Lowest price on homepage
5/13/035151
5/13/035252
Income Subsidiary & Affiliated Airlines
(MSEK) January – March2003 2002*
Operating revenues 3 798 2 832Operating expenses -3 726 -2 379
EBITDAR +72 +453EBT bef gains -564 -350
* = Spanair was included as an affiliated company Jan/Feb 2002
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/035353
Revenues 1 375 1,7% 1 549 3,5% 641 9,3% 223 -3,4%
EBITDAR -58 n.m 104 -63% 56 -33% 6 -84%
EBT -369-25,1% -92 n.m -31 n.m -29 n.m
Jan-Mar in MSEK
Subsidiary & Affiliated Airlines not immune by weaker marketNew improvement measures of MSEK 1 000 initiated
5/13/035454
Spanish market grad becoming weaker
Revenue declined by 1,8%
New price concept releasedOne way pricing and bookingAvailability pricingExtra 30 EUR for Business Class
Spanair joined Star Alliance as from April 2003
Operating revenue 1 375 1 352
EBT -369 -295
January – March 2003 2002
5/13/035555
Weak Norwegian marketMaintenance costs increasedby 62 MSEKSubstantial new cost measures initiated
Braathens – hit by weak market and periodisation of maintenance costs
Operating revenue 1 549 1 496
EBT -92 38
January – March 2003 2002
5/13/035656
Air Botnia affected by weak market
January – March 2003 2002
New nonstop route Helsinki-Brussel introduced as from Q4 2002 and Helsinki-Düsseldorf as from Q1 2003
Operating revenue 223 231
EBT -29 -4
Widerøe hit by weak yield development
Slowdown in Norwegian marketImprovement measures of under way
January – March 2003 2002
Operating revenue 641 586
EBT -31 3
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/035757
5/13/035858
Airline Support
Units included in the business area:
SAS Cargo SAS Technical ServicesScandinavian Ground ServicesSAS World Sales
January – March(MSEK) 2003 2002Operating revenues 4 755 4 973Operating expenses -4 721 -4 896
EBITDA +34 +77EBT -128 -19
5/13/035959
SAS World Sales (SWS)
Total revenue 1 241 1500Whereof external 25,5 11,3EBITDA 15 -22EBIT 1 -34Employees 2447 2553
January – March 2003 2002
Responsible for the SAS Group’s sales and distribution.Revenue decreased by MSEK 259Improvement measures according to plan
5/13/036060
SAS Technical Services (STS)
Total revenue 1 463 1 465Whereof external 14,1% 14,6%EBITDA 50 75EBIT -19 13Employee 3 690 3 895
January – March 2003 2002
� Responsible for technical maintenance
� Revenues under pressure as airlines reduce capacity
� Additional measures to be implemented to reduce costs significantly
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/036161
Scandinavian Ground Services (SGS)
Responsible for passenger and ramp servicesAffected by lower volumesAdditional measures to be implemented to reduce costs
Total revenue 1 392 1 473Whereof external 12,3% 10,9%EBITDA -77 25EBIT -110 -7Employee 6 835 6 497
January – March 2003 2002
5/13/036262
Increased volumes for SAS Cargo
Total revenue 748 647Wherof traffic rev 557 523EBITDA 24 0EBIT 14 -11EBT -3 -10
January – March 2003 2002
Improved result although yield down by 9,2%Weak market to USAAdditional improvement measures under implementation
5/13/036363
5/13/036464
Income Business Area Airline Related BusinessSAS Cargo moved to Business Area Airlines Support Businesses in 2002
January - MarchMSEK 2003 2002
Operating revenues 1 166 1 467Operating expenses -1 128 -1336
EBITDA 38 131
Income before taxes -16 34
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/036565
Total revenue 523 557Wherof external rev 9,4% 3,9%EBITDA 35 49EBIT 10 16EBT 10 16
January – March 2003 2002
Scandinavian IT Group
Implementation of Turnaround according to planNew agreement with TravelSky for the chinese market
www.scandinavianIT.com5/13/0366
66
SAS Trading – affected by weaker NOK
www.scandinavian.net
Total Revenues 346 474
EBITDA -39 -5
Profit before taxes -30 -13
January-March2003 2002
SAS Trading is a business in the SAS Group and a operator within Travel Retail. SAS Trading had 471 employees at year end 2002
Result negatively affected by weaker Norwegian currency
A new Flightshop opened at Poznan airport in March
5/13/036767
SAS Flight AcademyTraining centers for pilots andother personell.
About 10 new customers in Q1
www.sasflightacademy.com
January-March2003 2002
Total Revenues 128 160
EBITDA 26 46
Profit before taxes 1 20
5/13/036868
Jetpak� The company is 100% owned by SAS
Group and has 176 employees� Jetpak is one of the fastest growing
companies withing expresslogistic in the Nordic countries.
� Weak market in first quarter, butgood cost controll offset negative result
www.jetpak.com
January-March2003 2002
Total Revenues 113 85
EBITDA 7 2
Profit before taxes 5 0
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/036969
5/13/037070
Rezidor SAS Hospitality –expanding with new brands
1
1
111
6
1
2
3
1
2
1
2
20
3
1
5
1
16
1
1
8
22
2
1
1
1
1
4
4
5
19
Large potential of chain brands in EuropaThree new brands added:
Market position
Number of hotels
0
50
100
150
200
250
'94 '95 '96 '97 '98 '99 '00 '01 '02Q1 2
003
FranchisedManagedLeasedOwned
5/13/037171
New loyalty program introduced -Goldpoints14 new Park Inn hotel launched in Sweden and one in BerlinNew hotels opened in Tashkent and Cologne
Recent events for Rezidor SAS Hospitality
Cologne Tashkent
Berlin
5/13/037272
REZIDOR SAS Hospitality –REVPAR under pressure but still better than industry
SIH
-25%-20%-15%-10%-5%0%5%
10%15%
01-jul
sep 01-nov
02-jan
mar may jul sep nov jan
REVPAR - Rezidor REVPAR - Market
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/037373
Revenues 842 746 +12,9%
Operating result -75 -61 -23%
Adjusted EBITDA -76 -58 -31%
Pre tax profit -115 -85 -59%Including gains
Jan-Mar 2003in MSEK
REZIDOR SAS Hospitality –negatively affected by weaker markets and high energy costs in Norway
Jan-Mar 2002 Change
5/13/037474
Financials
5/13/037575
Clear Targets to Reduce Indebtedness- Long-term Targets established
� Key figures Today Target� Equity/assets ratio (solidity) 21% >30%� Financial net debt/ equity 154% <50%� Fin. net debt+NPV Oplease/ equity 240% <100%� Fin. net debt+7* Oplease/ equity 330% <100%
� Targets will be reached by: – Turnaround measures– Relesase of main assets:
• Aircraft• Properties• Non-core subsidiaries
5/13/037676
Surplus values despite reduced aircraft prices and weaker USD to SEK
Surplus value, aircraft
0
10002000
3000
40005000
6000
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
Q1 20
02Q2
2002
Q3 20
02Q4
2002
Q1 20
03
MS
EK
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/037777
Gearing level peakingConsolidation ahead
� Leverage to peak during 2003
� Clear targets to reduceLeverage
Leverage Ratios
-10%40%90%
140%190%240%290%340%
dec-98 dec-99 dec-00 dec-01 Dec-02 mar-03
%
Net Debt / Equity Fin Net Debt / Equity Fin. Net Debt + 7*Op lease / Equity
5/13/037878
Commited Credit Facilities of MSEK 8 350
MSEKLiquid Funds 31/03-03 8 535
Available Credit Facilites:Revolving Credit Facility (MUSD 700) 3 550
Aircraft Finance Lease Facility 2 600
Bi-lateral Facilities 1 150
Others 1 050
Total Available Facilities 8 350
Total Available Funds 16 885
5/13/037979
Reduced CAPEX will improve free cash flow going forwardMSEK January – March 2003 2002
Cash flow from operations -1 095 -428Change in working capital -584 -180
Net financing from operations -1 679 -608Investments, advance payments - 964 - 1 950Acquisition/sale of subsidiaries (net) -19 +135Sales of fixed assets, etc. +302 +1 221
Financing deficit/surplus -2 360 -1 202Changes in external financing, net +173 -1 272
5/13/038080
SAS Group entering CAPEX holiday as from 2003
SAS Group CAPEX 1995-2006 (Aircraft and expected other investments)
-1000
1000
3000
5000
7000
9000
11000
13000
1995
1996
1997
1998
1999
2000
2001
2002
2003
e20
04e
2005
e20
06e
MSE
K
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/038181
High financial maneuverability
Liquidity of MSEK 8 534Committed credit facilities MSEK 8 350Slightly less than half of the A/C fleet is UnencumberedNo Rating TriggersNo onerous Financial Covenants
Additional sources of capitalAircraftReal estatesNon-core businesses
5/13/038282
Interest coverage ratio low in historic terms
0
1
2
3
4
5
6
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Q1,2003
Interest coverage ratio
5/13/038383
Summary & Outlook 2003
5/13/038484
Weak traffic figures in Scandinavia 1Q�Group passenger load factor down by 2,3 p.u.�Scandinavian Airlines load factor down by 2,1 p.u
Passenger- Seat capacity Cabin-traffic (RPK) (ASK) factor
SAS Group Total -4,2% -0,4% 58,7%Intercontinental +2,9% +12,5%Europe -5,7% -0,8%Domestic and -10,2% -10,1%Intrascandinavian
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/038585
Some recovery on traffic to US and Europe in April�Group passenger load factor down by 5,6 p.u.�Scandinavian Airlines load factor down by 9,2 p.u�Group traffic in Europe up by 8,0%
Passenger- Seat capacity Cabin-traffic (RPK) (ASK) factor
SAS Group Total -5,6% -3,1% 60,5%Intercontinental -12,6% +25,0%Europe +8,0% +9,4%Domestic and -17,9% -20,4%Intrascandinavian
5/13/038686
� Worst quarter in history� Severe pressure on revenues� Significant pressure on revenues
due to– Weak economies– Iraq/SARS
� Most forceful measures ever implemented in Scandinavian Airlines– unit cost to come down 30%
� Sufficiently strong balance sheet and liquidity position to manage the current situation in the industry
� Good financial manoeuvrability to implement & carry through turnaround
Sum up
5/13/038787
Assessment for full year 2003:
The Board of Directors
� Continued weak economies � Uncertainty remains regarding other external factors� Some recovery on U.S and European routes in April� Plan B implementtion ahead of plan� Plan C SEK 8 billion – rapid implementation� Additional MSEK 1 000 in Subsidiary & Affiliated Airlines
5/13/038888
Thank you for your attention!
This presentationcan be downloaded at the SAS Group’s homepage
www.sasgroup.net
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/038989
APPENDICES
Traffic DataYieldUnit costFleet Financial key figures
5/13/039090
Traffic and YieldJanuary-March 2003 vs 2002
Scandinavian Airline IndexTotal Scheduled 2003 2002 variance
Production (mill ASK) 8 040 8 288 97Traffic (mill RPK) 4 900 5 229 94Cabin factor (%) 60.9 63.1 -2.1 Yield (öre/RPK) 134.5 150.5 89Currency adj. yield 134.5 147.4 91
5/13/039191
Traffic and YieldJanuary-March 2003 vs 2002
Index
Braathens (Total scheduled) 2003 2002 variance
Production (mill ASK) 1 142 1 023 112Traffic (mill RPK) 601 526 114Cabin factor (%) 52.7 51.4 +1.3Yield 88
*) local currency
5/13/039292
Traffic and YieldJanuary-March 2003 vs 2002
Index
Spanair (Total scheduled) 2003 2002 variance
Production (mill ASK) 1 549 1 556 99Traffic (mill RPK) 852 922 92Cabin factor (%) 55.0 59.3 -4.3Yield *) 107
*) local currency
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/039393
Traffic and YieldJanuary-March 2003 vs 2002
Index
Spanair (Charter) 2003 2002 variance
Production (mill ASK) 1 029 970 106Traffic (mill RPK) 879 873 101Cabin factor (%) 85.4 90.0 -4.6
*) local currency
5/13/039494
Traffic and YieldJanuary-March 2003 vs 2002
Index
Wideroe 2003 2002 variance
Production (mill ASK) 233 191 122Traffic (mill RPK) 114 92 125Cabin factor (%) 49.1 48.2 +1.0Yield *) 82
*) local currency
5/13/039595
Traffic and YieldJanuary-March 2003 vs 2002
Index
Air Botnia 2003 2002 variance
Production (mill ASK) 206 155 133Traffic (mill RPK) 84 67 126Cabin factor (%) 41.0 43.3 -2.3Yield 76
*) local currency
5/13/039696
(currency adjusted)
Yield Development Q1 2002 – Q1 2003
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
1st Quart
er 2002
2nd Quarter 2
002
3rd Quarter
2002
4thQuarter 2
002
1st Quart
er 2003
Yields are under pressure from negative class mix /route mix, lower comissions and intercont effect
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/039797
Passenger YieldJanuary-March 2003 vs 2002
Nominal Currency AdjustedRoute Sector yield effect yield
Scandinavian Airline 89 98 91
Intercontinental 87 108 94Europe 94 102 95Intrascandinavian 96 100 96Denmark* 132 101 133Norway 108 97 105Sweden 98 100 98*) Incl Greenland 2002
5/13/039898
Unit Cost January - March 2003 vs 2002
MSEK
Volume = average decrease in ASK: -3.0%
Adjusted Share ofJAN-DEC 02 JAN-MAR 03 Var. % total var %
Personnel 1 558 1 848 18,6% 3,6%Fuel 619 755 21,9% 1,7%Gov. charges 818 796 -2,7% -0,3%Selling costs 1 192 855 -28,3% -4,2%Ground Services 1 319 1 168 -11,5% -1,9%Technical 1 136 1 247 9,8% 1,4%Other oper. 885 922 4,2% 0,5%
TOTAL OPER NET COS 7 528 7 591 0,8% 0,8%Aircraft costs 445 491 10,4% 0,6%ADJUSTED EBIT 7 972 8 082 1,4% 1,4%
5/13/039999
Unit Cost (adjusted)January - March 2003 vs 2002
MSEK
Volume = average decrease in ASK: -3.0%
Volume and curr. adjusted Share of
JAN-DEC 02 JAN-MAR 03 Var. % total var %
Personnel 1 624 1 763 8,5% 1,7%Fuel 619 755 21,9% 1,7%Gov. charges 818 796 -2,7% -0,3%Selling costs 1 192 855 -28,3% -4,2%Ground Services 1 319 1 168 -11,5% -1,9%Technical 1 136 1 247 9,8% 1,4%Other oper. 948 922 -2,7% -0,3%
TOTAL OPER NET COST 7 657 7 506 -2,0% -1,9%Aircraft costs 445 491 10,4% 0,6%ADJUSTED EBIT 8 101 7 997 -1,3% -1,3%
5/13/03100100
Key airline profitability driversJanuary-March 2003 vs 2002
�Traffic growth (RPK) down 6.3 %�Cabin Factor down 3.0 p.u.�Yields down 8.8 %�Unit costs up 1.4 % *
*) Adjusted for method change = down 1,3%
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/03101101
Passenger Revenue AnalysisJanuary-March 2003 vs 2002
�Revenues 6 588 MSEK - 16.3 %
• Volume - 6.3 % • Yields - 8.8 %• Currency - 1.8 %
5/13/03102102
Moving 12 months values
63%
64%
65%
66%
67%
68%
69%
DEC94 DEC95 DEC96 DEC97 DEC98 DEC99 DEC00 DEC01 DEC02
Passenger load factor – long term trend positive1995-2003
5/13/03103103
Weaker USD offset by increased yield pressure
6
7
8
9
10
11
12
2003200220012000
Positive effect on operation costsQ1 by 415 MSEKWeak USD => increased yield pressure
5/13/03104104
Currency Effects – SAS GroupJanuary-March 2003 vs 2002
MSEK JAN-MAR
Total revenues -189Total costs +546Forward cover costs & working cap. +50
Income before depr. +407Financial items +175
Income before tax +582
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/03105105
Currency Effects – SAS GroupJanuary-March 2003 vs 2002
Total revenues & costs:(Total +357 MSEK)Major approx. effects:USD +415DKK +6NOK +38EUR -2Asian curr. -50All others -50
Forward cover costs:(Total -39 MSEK)2002 +392003 0
Working capital:(Total +89 MSEK)2002 -902003 -1
Financial items:(Total +175 MSEK)2002 +1282003 +303
Grand total +582 MSEK
5/13/03106106
Expenses
DKK15%
EUR14%
GBP2%
NOK26%
SEK20%
USD22%
Others1%
Revenues
DKK10%
EUR17%GBP
4%
NOK33%
SEK22%
USD10%
Others4%
Currency distribution in the SAS Group 2002
5/13/03107107
Financial key figures and aircraftfleet data
5/13/03108108
Balance SheetMSEK 31MAR03 31DEC02
Liquid funds 8 534 10 721Other interest-bearing assets 7 902 7 487Aircraft 27 530 27 256Other assets 21 188 21 346
Total assets 65 154 66 810
Operating liabilities 17 846 18 068Interest-bearing liabilities 29 448 28 867Subordinated debenture loan 905 915
Deferred tax 3 517 3 606Minority interests 76 166Equity 13 362 15 188
Total liabilities and equity 65 154 66 810
Financial net debt 20 554 17 872
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/03109109
SAS Group Equity / Assets Ratio 9212-0303
0%5%
10%15%20%25%30%35%40%45%50%
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002Including pare nt company from January, 2000 .
Including Braathe ns from De ce mbe r, 2001 and Spanair from March, 2002.
5/13/03110110
SAS GroupFinancial Net Debt/Equity Ratio 9212-0303
0,00,30,50,81,01,31,51,82,02,32,5
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Including pare nt company from January, 2000 .Inc luding Braathe ns from De ce mbe r, 2001 and Spanair from March, 2002.
5/13/03111111
SAS Group Development of financial net debt 9212-0303
0
5 000
10 000
15 000
20 000
25 000
92-12 93-12 94-12 95-12 96-12 97-12 98-12 99-12 00-12 01-12 02-12
MSE
K
Average 93 MSEK 15.900
Average 94 MSEK 9.700
Average 95 MSEK 4.950
Average 96 MSEK 2.350
Average 97 MSEK 2.150
Average 98 MSEK 2.900
Average 99MSEK 6.750
Average 00 MSEK 5.450
Average 01MSEK 9.150
Including parents company from January,2000Including Braathens from December, 2001 and Spanair from March, 2002.
Average 02 MSEK 17.950
Average Q1 03 MSEK 19.150
5/13/03112112
Summary pension schemes
SAS Group follow IAS accountingExtremely low return on stock market has put pressure on SAS pension plans as wellIn spite of situation – still surplus funds MSEK 1 200SAS plans relatively robust if assumptions should change No need for write down at current levelsNo effects on cash flowNo effects on net debt as pensions are excluded
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/03113113
SAS Group fleet as of Mar 31, 2003 SAS Group Owned Leased Total Leased On(Incl SK, BU, JK, KF, WF) Mar03 In Mar03 Out OrderAirbus A340-300 5 2 7 0 0Airbus A330-300 2 1 3 0 1Airbus A321-200 8 4 12 0 4Airbus A320 0 8 8 0 0Boeing 767-300 3 6 9 0 0Boeing 737-400 0 4 4 0 0Boeing 737-500 0 14 14 0 0Boeing 737-600 12 18 30 0 0Boeing 737-700 8 7 15 0 0Boeing 737-800 14 5 19 4 4Boeing 717 0 4 4 0 0Douglas MD-81 5 10 15 0 0Douglas MD-82 17 26 43 0 0Douglas MD-83 2 22 24 1 0Douglas MD-87 10 6 16 0 0Douglas MD-90-30 8 0 8 0 0Avro RJ-85 0 5 5 0 0Embraer ERJ 145 0 3 3 0 0Fokker F28 7 0 7 2 0Fokker F50 7 0 7 2 0deHavilland Q100 16 1 17 0 0deHavilland Q300 0 8 8 0 0deHavilland Q400 10 18 28 0 0SAAB 2000 0 5 5 0 0Total 134 177 311 9 9
SAS Group Owned Leased Total Leased On(Incl SK, BU, JK, KF, WF) Mar03 In Mar03 Out OrderSAS 114 81 195 9 9Spanair 0 50 50 0 0Braathens 4 23 27 0 0Wideroe 16 13 29 0 0Air Botnia 0 10 10 0 0Total 134 177 311 9 9
Average Age Average Age Average Age
Owned Leased In Total
6,92 8,04 7,400 10,02 10,02
1,5 9,25 8,149,03 7,14 8,06
0 3,8 3,87,01 8,45 7,83
SAS Group(Incl SK, BU, JK, KF, WF)SASSpanairBraathensWideroeAir BotniaTotal
5/13/03114114
Limited CAPEX – SAS Group Firm Order CAPEX MUSD 400Firm Aircraft Orders
Total 2003 2004 2005 2006as per 31/03-03
Airbus A330 1 1Airbus A320 2 1 1Airbus A321 4 3 1Boeing 737 4 1 1 2
Tot No. of A/C 11 2 3 5 1
CAPEX (MUSD) 402 72 151 146 33
5/13/03115115
Limited CAPEX – SK Firm Order CAPEX MUSD 340Firm Aircraft Orders
Total 2003 2004 2005 2006as per 31/03-03
Airbus A330 1 1Airbus A321 4 3 1Boeing 737 4 1 1 2
Tot No. of A/C 9 1 2 5 1
CAPEX (MUSD) 342 42 121 146 33
5/13/03116116
SAS financial position adequate
� Equity MSEK 13 438� Equity ratio 21%
� Financial net debt MSEK 20 554
� Fin net debt/ equity 153%
Equity / Total Assets
0%
10%
20%
30%
40%
50%
dec-98 dec-99 dec-00 dec-01 Dec-02 mar-03
%
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/03117117
SAS GroupFinancial Net January – March 2003
(MSEK) 03-03-31 02-03-31 Difference
Interest net and others -254 -168 -86
Exchange rate differences +303 +128 +175
Financial net +49 -40 +89
(in % p.a. of averagefinancial net debt) +1,0% -1,1% +2,1 p.u.
5/13/03118118
SAS Group - Development and Break Down of Financial Net Debt 030331
(MSEK) 030331 021231 Difference
Cash 8 534 10 721 -2 187
Other interest bearingassets 1 265 1 189 +76
Interest bearingliabilities -30 353 -29 782 -571
Financial Net debt -20 554 -17 872 -2 682Net debt -13 917 -11 708 -2 209
5/13/03119119
SAS Group - Development and Break Down of Financial Net Debt 030331
(MSEK) 030331 020331 Difference
Cash 8 534 9 188 -654
Other interest bearingassets 1 265 1 558 -293
Interest bearingliabilities -30 353 -28 248 -2 105
Financial Net debt -20 554 -17 502 -3 052Net debt -13 917 -11 574 -2 343
5/13/03120120
SAS share
Price development
The SAS Group Investor RelationsTel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110
e-mail: investor.relations@sas.se --- Homepage: www.sasgroup.net -- Results Jan - Mar 2003
5/13/03121121
Development of Market capitalization
02 0004 0006 0008 000
10 00012 00014 00016 00018 00020 000
jan-99apr-99jul-99okt-99jan-00apr-00jul-00okt-00jan-01apr-01jul-01okt-01jan-02apr-02jul-02okt-02jan-03
5/13/03122122
* Peers: Alitalia, Air France, British Airways, Finnair, KLM, Lufthansa &Rynair
SAS share price vs. Peers 2002-2003
40
50
60
70
8090
100
110
120
130
31-dec-01
31-j an-02
28-feb-02
31-mar-
02
30-apr-02
31-maj -02
30-jun-02
31-jul-02
31-aug-02
30-sep-02
31-ok t-02
30-nov-02
31-dec-02
31-j an-03
28-feb-03
31-mar-03
Index Peers Index SAS
SAS Market Capitalization vs. European Peers* measured in SEK(December28, 2001 - March 31 2003)
53,650,3
1040145L 123123
Volume in SAS in Stockholm
Average daily number of shares traded in Stockholm per month
0
50 000
100 000
150 000
200 000
250 000
300 000
Janu
aryFe
brua
ryMarc
h
April
May
June July
Augus
tSep
tember
October
Novem
ber
Decem
ber
Janu
aryFe
brua
ryMarc
h
2002 vs 2001 2003 vs 2002
1040145L 124124
Weak volume in industry downturn SAS AB
N u m b e r o f sh a r e s t r a d e d i n S A S p e r m o n t h
0
2 000 000
4 000 000
6 000 000
8 000 000
10 000 000
12 000 000
14 000 000
16 000 000
March
April
June
July
Augus
tSe
ptembe
rOcto
ber
Novem
ber
Decem
ber
Janu
aryFe
brua
ry
March
2003 vs 20022002 vs 2001
Recommended