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Norwegian Air Shuttle ASA Norwegian Air Shuttle ASA Norwegian Air Shuttle ASA Norwegian Air Shuttle ASA
1st 1st 1st 1st QuarterQuarterQuarterQuarter PresentationPresentationPresentationPresentation
April 24th 2008April 24th 2008April 24th 2008April 24th 2008
CEO BjCEO BjCEO BjCEO Bjøøøørn Kjosrn Kjosrn Kjosrn Kjos
0
200
400
600
800
1 000
1 200
Q 1 0 5 Q 1 0 6 Q 1 0 7 Q 1 0 8
All amounts in million NOK
Revenue
Domestic revenue
Domestic revenue growth
International revenue
International revenue growth
651
9 %
93 %
Q1 08
1 089
437
Q1 05 Q1 06 Q1 07
320 539 738
247 335 401
73 204 337
7 % 36 % 20 %
1361 % 180 % 65 %
47 %
Strong revenue growth in Q1
• MNOK 1,089 in revenue, 47 % growth since last year– International: MNOK 651; 93 % growth– Domestic: MNOK 437; 9 % growth
MNOK revenue
The EBITDA margin faces seasonality,
competition, fuel and one-offs
• EBITDA result of MNOK -226 in Q1 08
• MNOK 12 in write down on the brand name FlyNordic
• Inefficiency in hedge compared to cash flow on hedge object MNOK -33
• Earnings after tax MNOK -210
-300
-250
-200
-150
-100
-50
0 1 2 3 4 5
- Norwegian.no ex. the
Polish operation
- Polish operation
- Norwegian.se (FlyNordic)
Q1 04 Q1 05 Q1 06 Q1 07 Q1 08
EBITDA MNOK -50 -44 -52 -9 -226
EBITDA Margin % -21 % -14 % -10 % -1 % -21 %
Earnings after tax MNOK -40 -34 -43 -15 -210
Earnings pr share -2,7 -2,4 -2,9 -0,8 -10,1
Adjusted EBITDA result of
MNOK -158 as expected
- Fair value adjustments in unrealized
foreign exchange hedges
- Introduction of B737-800
- Fuel price increase
compared to Q1 07
NO
PL
SE
Adjusted
EBITDA
MNOK -158- Migration
-56
-28
Net change in cash of MNOK - 54
• Cash Flows from operations – Net CF from operating activities of MNOK 14 was affected by the operating loss,
change in working capital and reduction in pre-paid tickets due to he early Easter holiday in March.
• Cash Flows from investing activities– Net CF from investing activities is affected by pre-delivery payments on the Boeing
contract for the purchase of 42 new B737-800 aircraft.
• Available cash was MNOK 447– In addition, the company has invested MNOK 215 in bonds
Amounts in thousand NOK Q1 08 Q1 07
Net cash flows from operating activities 14 423 238 498
Net cash flows from investing activities -63 419 -18 453
Net cash flows from financial activities -5 946 76 500
Exchange rate effect on cash 559 -42
Net change in cash and cash equivalents -54 382 296 503
Cash and cash equivalents in beginning of period 501 410 231 710
Cash and cash equivalents in end of period 447 028 528 213
Persistently high growth rate
• 38 % production growth since last year for Norwegian.no
• Load factor at 78 %, up 3 pp since last year
0
500
1000
1500
2000
2500
Q 1 0 5 Q 1 0 6 Q 1 0 7 Q 1 0 8
50 %
55 %
60 %
65 %
70 %
75 %
80 %
ASK Norwegian.no ASK Norwegian.se Load Factor Norwegian.no
Q1 05 Q1 06 Q1 07 Q1 08
ASK Norwegian.no 569 933 1342 1855
RPK Norwegian.no 387 718 1004 1447
Load 68 % 77 % 75 % 78 %
ASK Norwegian.se - - - 327
RPK Norwegian.se - - - 239
Load - - - 73 %
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
Q 1 0 5 Q 1 0 6 Q 1 0 7 Q 1 0 8
Passengers in thousands Q1 05 Q1 06 Q1 07 Q1 08
Group 550 1 014 1 303 1 997
Norwegian.no 550 1 014 1 303 1 630
Norwegian.se - - - 367
Passenger growth continues
• 2 million passengers in Q1 08, up 53 % from last year– International passenger growth of 48 % for Norwegian.no
– Domestic passenger growth of 15 % for Norwegian.no
1000 pax
30 %
27 %
33 %33 %
38 %
34 %
43 %42 %
32 %
37 %
43 %43 %
34 %
43 %
46 %47 %
0 %
10 %
20 %
30 %
40 %
50 %
Bergen Trondheim Stavanger Tromsø
Q1 05
Q1 06
Q1 07
Q1 08
Domestic market share at 44 %
• 44 % market share on key domestic routes, an improvement of 4 pp
• Increased market share on all routes
% Market Share
Q1 07 Q1 08
0,03
0,01
0,02
0,63 0,56 0,54
0,03
0,01
0,02
0,54
0,56
0,63
0,50
0,55
0,60
0,65
Q1 07 Q1 08
- Fair value adjustments in
foreign exchange hedges
- Fuel price increase
- Introduction of new aircraft
- Migration
0,60
Unit Cost
• Unit cost of 0.60 in Q1 2008 for Norwegian.no, up 7 % since last year
• Cost level affected by fair value adjustments in hedges, introduction of new aircraft and fuel price increase.
CASK
Non-ticket revenues
• Non-ticket revenues increased by 47 % from Q1 last year
• The revenue lines have been reclassified*
– Ancillary revenue for Q1 07 after reclassification is reported to be NOK 27 pr pax
NOK pr. Pax
* The reclassification also affects ticket revenues and thus yield. This will be incorporated in future traffic statistics.
27
51
0
10
20
30
40
50
60
Q1 07 Q1 08
Ongoing activities
• Integration project with Norwegian.se
– Commercial platform
– Organizational structure
– Improved fleet utilization
– Rebranding from FlyNordic to Norwegian.se
• Agreement with the Norwegian Ministry of Defence
• Charter contracts for the winter season
• Financing arrangements for the Boeing contract
• Call Norwegian
Expectations for remaining 2008
• Business Environment
– Continued pressure on yield
– Uncertain macro conditions
– Sustained demand
– High seasonal fluctuations
• Cost Development
– Unit cost in the area of NOK 0,52 for the Group
– Up from 0.50 guided in Q4 07 based on an average fuel price of USD 980 pr ton
• Subsidiaries/ Bases
– The Polish market is expected to continue to be price sensitive
– Given the current fuel price Norwegian.se will be loss making in the fiscal year 2008
– The Rygge start up has developed as expected since the start-up, however there is
some uncertainty with respect to the domestic network out of Rygge
Norwegian offers 152 routes
to 83 destinations