Slides
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11 July 2025 Presentation of second quarter 2025
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– laying the basis for a sustainable profitable airline High customer value at low cost of delivery • leading in Europe on OTP with close to zero cancellations • strong customer satisfaction and brand recognition – capturing market share for corporate travel – Norwegian Reward with attractive benefits • centred on route profitability – adding profitable routes one by one • numerous initiatives to lower costs and manage seasonality • significant scope to lower aircraft ownership cost – more robust finances provide opportunities – multiple initiatives implemented through 2025 Growth through complimentary business ventures • Widerøe acquisition completed January 2024 – 100% cash acquisition at P/E ~2 – strong customer proposition with seamless interlining – scope for growth e.g. on inbound • Spenn – Norwegian initiated establishment of a leading Nordic loyalty platform – Strawberry and Reitan Retail partners and co -owners – significant business build with 100 partners across Nordics Fleet – growing organically and through M&A Group revenue (NOK billion) Sustainable profitability (3-year acc. EBIT mNOK) 2
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– at the end of the first leg, starting on the second Pandemic-era rescue with positive return • Norwegian government with crucial rescue loan during pandemic – ensuring workplaces and future of local aviation industry • taxpayer contribution with positive nominal return – participated in business upside through convertible loan – profit realised via convertible loan buy-back and subsequent share sale – remaining creditor position secured with deposit • sole state funding ever received in company history – now repaid 2021 • emergence from reconstruction • NOK 825m cash to repayment of dividend claims 2022 • NOK 30m Retained Claims Bonds (RCB) buy-back 2023 • NOK 351m RCB buy-back • NOK 468m early redemption of NAS13 bond 2024 • NOK 68m RCB buy-back 2025 Q1 – Q3 • NOK 900m conv. bond buy-back - call exercise for full amount • NOK 3,156m deposit for RCB instalments Credit repayment timeline (excl. lease payments, interest and loan amortisations) T oday marks a shift as dividends now can be delivered • capital structure fit-for-purpose – call and buy-back of subordinated convertible bond – depositing RCB outstanding amount in Q3 enabling dividends • distribution of dividend fund – NOK 0.90 per share dividend – 2024 dividend utilised for convertible buy-back, positive for shareholders by reducing diluted number of shares by 6 percent – distribution of dividend fund from 2022/23 plus investment return now in August 2025 Q3 onwards • payment of inaugural dividend • delivery of future annual dividends Sum NOK 5.8 billion 3
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Highlights for Q2 2025
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Q2 profit before tax (EBT) NOK 1,055 million ● group operating profit (EBIT) NOK 1,250 million – Norwegian EBIT NOK 1,021 million – Widerøe EBIT NOK 229 million ● significant results improvement – EBT improved NOK 577 million YoY – operating margin 12.2% vs 6.4% last year ● cost level impacted by increased ATC and airport tariffs from year-end Long-term fleet decisions with sound economics ● transaction to acquire 11 spare engines – latest technology CFM LEAP-1B – deliveries schedule for 2027/28 –operational resilience in cost-reducing way ● purchase of 3 leased Boeing 737-800 – non-recurring gain NOK 260m for Q3 – recurring annual savings Strong core operations ● Norwegian with record Q2 unit revenue – capacity growth slowed to 1% – load factor up 3% YoY ● Widerøe delivering traffic records – load factor up 4% YoY – all-time high with 1.1 million passengers – June delivering record monthly revenues Strong balance sheet enabling for dividend ● liquidity position increased to NOK 13.8bn – financing in place for Q1 purchase of 10 aircraft ● capital structure fit-for-purpose – call and buy-back of sub. convertible bond – deposit for outstanding amount of RCB bond ● dividend NOK 0.90 per share to be paid in August Preferred travel partner – direct, not connect ● 350 Norwegian routes on sale across attractive network – over 100 Widerøe routes ● operational excellence with few cancellations – Norwegian OTP 86%, up 5 p.p. YoY – regularity 99.7%, close to zero cancellations ● strong customer satisfaction vs. peers – Net Promoter Score (NPS) at 50 ● most direct routes from Nordics to rest of Europe ● capturing corporate market share ● Spenn expanding with attractive offering 5
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Passengers in second quarter 2025 (group) Second quarter 2025 Load factor (change YoY) 7 .6 million (+4% YoY) Load factor (change YoY) Norwegian capacity (ASK) 10.5 billion seat kilometres (+1% YoY) Widerøe capacity (ASK) 559 million seat kilometres (+3% YoY) 86.0% Punctuality 99.7% Regularity 89.3% Punctuality 96.7% Regularity 6
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2,203 1,530 1,475 1,272 1,293 1,587 1,929 2,177 2,372 0.93 0.80 0.87 0.80 0.80 0.79 0.92 0.84 1.00 0.37 0.47 0.57 0.67 0.77 0.87 0.97 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Norwegian – record Q2 traffic Successful ramp-up to summer season • close to zero cancellations Strong quarterly traffic • capacity growth (ASK) slowed to 1% YoY vs. 16% in Q1 • record high Q2 unit revenue – load factor 85.2%, up 3 p.p. YoY – yield up 6% YoY • positive Easter timing effect vs Q2 last year Record June traffic • highest June load post 2019 Norwegian Traffic – PAX per month, load factor and yield Passengers (1,000) Passengers last year Load Factor Yield – total revenue 86.8% 82.4% 82.2% 82.0% 84.7% 81.0% 83.5% 83.5% 88.4% 65.0% 70.0% 75.0% 80.0% 85.0% 90.0% 7
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73.7% 71.7% 73.3% 68.4% 70.1% 70.7% 71.8% 68.6% 81.1% 50.0% 55.0% 60.0% 65.0% 70.0% 75.0% 80.0% 85.0% 90.0% 95.0% 100.0% 374 328 293 294 288 328 334 349 394 0 100 200 300 400 500 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Widerøe Traffic – PAX per month and load factor Passengers (1,000) Passengers last year Load Factor Widerøe – setting passenger records Record traffic in quarter • 1,078,000 passengers – up 8% YoY and highest ever • load factor increased to 74% • June record high monthly passengers and revenue Increasing interline traffic with Norwegian • annual interlining traffic flows up close to 40% • enhanced distribution from Q3 Widerøe significant results contribution • EBIT NOK 229 million – up NOK 27m YoY 8
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0 1,000,000,000 2,000,000,000 3,000,000,000 4,000,000,000 5,000,000,000 6,000,000,000 7,000,000,000 Mar Apr May Jun Jul Norwegian – robust booking momentum 7-day rolling sales figures (PAX) – All markets1) 2019 2023 2024 2025 Booked revenue – Travel July to October2) Continuous strong booking momentum post Easter • diversified bookings across destinations and travel month Capacity growth reduced • low single-digit percentage growth YoY during summer season • harvesting from 2024 investments in network growth Booked load ahead vs. last year • Norwegian 9% more tickets sold vs. last year at corresponding date for July to October travel • Widerøe sold tickets up double-digit % YoY for same travel period Norwegian yield on sold tickets up YoY for July to Oct. 1) travel anytime, anywhere as of 6 July 2025 2) 2019 adjusted for comparable route network 2024 2025 Mar-2025 Apr-2025 May-2025 Jun-2025 Jul-2025 9
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Corporate travel – continued growth in 2025 Corporates choosing Norwegian • Avinor reports corporate travel in Norway still below 2019 – domestic corp. travel down 11%, abroad down 15%* • from corporates and travel agents we speak to: – 50% or higher share of travel with Norwegian – highly value Norwegian’s on-time performance, frequency and regularity • onboarding new SMEs and larger corporates – over 1,200 new corporate agreements signed ytd. – growth in all sales channels • contract signed with Swedish state/Kammarkollegiet – contract covering domestic travel for up to four years Key initiatives ahead • Widerøe travel with seamless end-to-end connectivity – full distribution and interlining online in Q3 • Norwegian Reward Priority – attractive benefits including priority boarding, seat choice, luggage and coffee – improving seamless flow of benefits • now live with FuelChoice – product for Biofuel tickets for corporates – four larger corporates signed up with more coming shortly Norwegian corporate passengers *) Data based on the Norwegian National Travel Survey (RVU) for 2024 10
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Financial results for Q2 2025
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Quarterly financial highlights Revenue • group revenue NOK 10.3 billion – up 10% vs. last year – Widerøe contribution NOK 2.0bn with strong traffic • Norwegian record high Q2 unit revenue – capacity (ASK) growth down to 1% – total unit revenue up 10% YoY, 3 p.p. increase in load factor – ancillary revenue NOK 205 per pax, up 5% YoY Quarterly result • group EBIT NOK 1,250 million, significant improvement YoY – Norwegian EBIT NOK 1,021m – Widerøe EBIT NOK 229m – operating margin 12.2%, second strongest Q2 in company history • strengthening NOK against USD gives positive results effect – other losses/gains NOK 194m due to translation of USD denominated operating liabilities • Norwegian unit cost ex. fuel NOK 0.50 – up 7% YoY – cost level impacted by increasing ATC and airport tariffs from year-end Balance sheet • strong liquidity position NOK 13.8 billion – completed financing of 10 aircraft acquired in Q1 • NOK 1.5bn convertible bond fully redeemed – call exercise and NOK 640m buy-back at 140%, reducing dilution from share conversion • NOK 0.90 per share dividend to be paid in August – primarily funded by dividend fund – depositing outstanding amount of Retained Claims Bond 12
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Revenues – record strong Q2 traffic Quarterly total operating revenue (NOK million) Norwegian Q2 traffic • capacity growth (ASK) 1% vs. Q2 2024 • Unit revenue up 10% from last year – load factor up 2.8% Easter timing • Easter falling in Q2 this year vs. in Q1 last year – reversal of negative Q1 effect Widerøe with strong contribution • June monthly revenue record • growth in passengers 8% • 19% share of group operating revenue iel hange olu e hg o her revenue i er e eli ina ion oa a or 13
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n la ion an i er e volu e e e uel ri e in l ni rev o her rev os ini ia ives an s ale e a or lease Operating profit (EBIT) – significant improvement Quarterly EBIT (NOK million) Significant improvement in traffic YoY • Improved unit revenue and Easter timing Countering cost inflation • significant cost increase for ATC and airport charges following tariff changes at year-end • unit cost excl. fuel up 7% YoY – Q2 cost development in accordance with projection Non-recurring effects for FX • other losses/gains gain 194 million in Q1 due to FX revaluation Widerøe significant results contribution • EBIT NOK 229 million, up 27m YoY *) 12- on h ore in la ion weigh e by res e ive urren y’s share o o era ing ex enses ex l uel ual ari in reases a plied for Airport and ATC charges. **) other losses/(gains) 14
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NOK million Q2 2025 Q2 2024 Chng. (YoY) Passenger revenue 8,664 7,820 Ancillary passenger revenue 1,370 1,257 Other revenue 255 270 Total operating revenue 10,289 9,347 +10% Personnel expenses 2,096 2,079 Aviation fuel 2,576 2,593 Airport and ATC charges 1,235 1,005 +23% Handling charges 705 673 Technical maintenance expenses 321 284 Other operating expenses 940 901 EBITDAR excl other losses/(gains) 2,420 1,813 Other losses/(gains) -194 -36 -159 EBITDAR 2,615 1,848 Aircraft lease, depreciation and amortization 1,359 1,253 Operating profit (EBIT) 1,250 595 655 Net financial items -191 -116 Profit before tax (EBT) 1,055 477 Income tax expense (income) 123 0 123 Net profit (loss) 932 477 454 Group P&L increased ATC and airport charges from year-end significant improvement YoY Improved load factor and yield balance sheet translation effects from NOK strengthening NOK 105m increase with reduced ETS allowances and increased SAF mandate eff. tax rate 12% due to exp. utilisation of unrecognised tax assets 15
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Robust balance sheet Net interest-bearing debt delivery of three leased aircraft • NIBD impacted by addition of 3 aircraft on lease and financing of 10 aircraft purchase in Q1 – 90 aircraft in Norwegian and 51 at Widerøe • Reducing dilution through redemption of NOK 1.5bn convertible bond – exercise of call option and NOK 640m buy-back at 140% – dividend for 2024 utilised for convertible bond buy-back, topping-up NOK 321m, reducing dilution by 6% • NOK 0.90 per share dividend to be paid in August – primarily funded by NOK 874m dividend fund from 2022/23, topping up with NOK 76m for new shares issued – depositing for outstanding amount in Retained Claim Bonds (RCB) enabling dividend bookings high with season, up 10% YoY NOK million 30 Jun. 2025 31 Mar. 2025 Chng. (QoQ) Intangible assets 2,356 2,421 Tangible assets 21,891 21,095 +796 Total non-current assets 24,682 23,980 Receivables 5,184 4,305 Financial investments 1,052 1,035 Cash and cash equivalents 12,738 9,421 +3,317 Total current assets 19,508 15,283 Assets 44,190 39,254 Equity 5,914 6,150 Non-current debt 15,248 12,013 +3,235 Other non-current liabilities 5,045 3,814 Total non-current liabilities 20,293 15,828 Air traffic settlement liabilities 8,563 8,312 +3% Current debt 3,439 3,523 Other current liabilities 5,981 5,441 Total current liabilities 17,983 17,276 Liabilities 38,276 33,103 Equity and liabilities 44,190 39,254 Equity ratio (%) 13.4 15.7 -2.3 p.p. NOK million 30 Jun. 2025 31 Mar. 2025 Chng. (QoQ) Cash & equiv. 12,738 9,421 +3,317 Financial Investments 1,052 1,035 Aircraft financing 15,806 12,471 +3,335 Other IB debt 88 185 Retained Claims Bonds 2,793 2,880 NIBD 4,897 5,080 -184 financing 10 aircraft acquired in Q1, operating cash flow 16
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Cash flow in quarter Bookings elevated with seasonality • positive working capital effect with normalised and low holdback Excess liquidity • placed on deposits and money-market funds • cash balance not inc. NOK 1,052m in fixed-income fund investments • rate-of-return above 5% Boeing prepayment – significant portion already paid in • prepayment to date NOK 3.1bn • 2025 prepayments below NOK 100m (excl. options) i e re ay en nves ing a ivi ies inan ing a ivi ies oreign ex hange e e era ing a ivi ies ex l i e re ay en Quarterly cash flow (NOK million) • financing of 10 aircraft acquired in Q1 • principal repayments incl. convertible bond buy-back • Strong operating cash-flow in quarter 17
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The way forward
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Executing on long-term fleet strategy Boeing deliveries developing positively • three aircraft on lease delivered in Q2 – six aircraft delivered ytd., up from two last year – recent deliveries ahead of revised schedule • order for 50 Boeing 737 MAX 8 aircraft – first aircraft from own order due in Q4 – decision on 30 additional aircraft option in coming months – attractive pricing Utilising balance sheet for smart fleet decisions • purchase of 11 CFM LEAP-1B spare engines – securing operational resilience in cost-efficient manner – deliveries due in 2027 and 2028 • purchase of 3 Boeing 737-800 leased aircraft – following purchase of 10 aircraft in Q1 – non-recurring gain NOK 260 million for Q3 plus recurring cost savings – in process of securing long-term financing Lowering ownership cost • Norwegian improved credit standing - experiencing high demand for financings • improving future cost of financing – balancing cost of capital vs. cash flow Aircraft deliveries and trade tensions • market remains impacted by OEM delays and engine issues – net positive for supply/demand balance and yield environment • trade tensions between US and key trading partners, incl. EU – closely monitoring situation and options Norwegian fleet estimate until 2026 ~94 - 96 19
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Program X: Delivering sustainable profitability Program X to deliver by end 2026: • underlying recurring profit improvement in excess of NOK 1 billion p.a.* • sustained increase in EBIT margin (%) *) baseline 2024 for Norwegian (excl. Widerøe) at constant FX and jet fuel What we have done so far in 2025: • fleet control through acquisition of aircraft and spare engines • on-time performance (OTP) with significant improvement • rollout of new distribution platform • realisation of additional Widerøe synergies Results: • significant underlying results improvement YoY • reduced inflationary pressure on endogenous cost items Examples of what we are doing going forward: • operations asset performance – fuel consumption savings – crew efficiency • cost reductions overhead rightsizing – efficiency via automation • commercial interlining – partnerships 20
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Outlook FY 2025 Norwegian unit cost excl. fuel2) Low to mid single-digit % increase FY 2025 Q3 Q4 Capacity growth1) c. 3% c. 2% c. -3% $ 1) available seat kilometres (ASK) vs. same period 2024 2) vs. 2024 assuming current foreign exchange rates 21