Norse Atlantic As

My name is Eivind Ruval and I'm the new CEO of North Atlantic Airways from December last year. I'm here to present the Q4 results together with our CFO, Alex Joumos. Before I start, I will give a quick introduction to my background and I'll also share some reflections on why I took the position as the new CEO. I have more than 30 years of experience from various executive positions in Scandinavian companies. I've been leading the turnaround in Hewlett Packard as managing director for many, many years. I was the executive vice president and chief commercial officer in Scandinavian Airlines for many years. And I've also been leading European software companies and worked for several PE companies as well. When I accepted the position for this job, I was discussing and looking into North, and I see that this company has a very good foundation for actually becoming a very profitable company in the future. First of all, they have a very attractive leases agreement that goes for many years from now. You have a very competitive product that reached the market, and we see that with all the high load factor we have during all the quarters as well. The balanced model with more than 50% of the aircraft outsourced to Air Indigo is also giving us a foreseen revenue stream and indirectly also hedging the fuel. That is an important part of the cost focus these days. And then industry leading ancillary sales. That gives us a good foundation for actually increasing the revenue as we go in the future as well. We do also see some need for improvements when I looked into the company. I think we need an even more clear business idea of what we should focus on. We need to optimize the network to make sure that we reach the right destination and also the utilization of our aircrafts. We need to accelerate the commercial initiatives and we also needed to ensure that we have flexible crew agreements to make sure that we can meet the different needs in the market. The needs for a more simplified organization and also taking more cost out is also an important part of what we needed to work on. And we have seen during the last months that we are struggling a little bit on the way we communicate towards our customers, and that's needed to be a focus as well. Cost will be an important part of the focus going forward. And basically, that was also the foundation for why I thought this was a very interesting opportunity to sign on. So let's look at some of the figures for Q4. I will try to focus on actually what's an important part of the Q4. The Q4 as such is an It's a quarter with two months where we struggle a little bit on October, November, and then we saw the turning point came in December. The decision that the company took in 2025, where they decided on the ACMI agreement with Indigo, where they decided also new network to focus on more to Asia with Thailand as the most important part. As no started giving good results and that the turning point that came actually in December December was a profitable month for North and we also even though that we saw some irregularities during that month and have some extra cost that it's a one time cost that month came out as a positive months. But the Q4 as such was a significantly better revenue from 123 to 256 million in revenue. The EBITDA came in on a minus 3.1 and an EBITDA on minus 22 million. The low factor is still high during the whole quarter. And if we take a look at the 2025 figures, we see that it's a significant improvement from 2024. Now with an EBITDA on plus 56 million and an EBITDA on minus 20, significant improvement from almost minus 100 million in 2024. We also have a huge, impressive growth on the passenger side, from 1.4 million to 1.8 million, and the load factor is still quite high. So the turning point we're talking about in December, it's an important part for investors to look into. And to give you a few more data points to have in mind, We had, in December specifically, a passenger growth of 22%, with a production of plus 14%. And the trust growth was, for that month, 6%. And we communicated in our traffic report for January that the trust increased by 20%. And later in the presentation, I will come back to say something about what that number is in February and also in March. The turning point came after the decision that the company took in 2025. They said they took strategic measures and they have now implemented the measures and we now see the results. And that should be the main focus for investors going forward. Not to look too much into Q4 as a search, but more looking into the turning point in December and look forward. And if you look at December on the trust side, we see that November came in on plus 7% year over year, December 6%, and then January 20%. And as I said, I will come back to indicate a little bit more about February and March later in the presentation. the acmi side we have completed now the delivery of the sixth uh the sixth aircraft to um air indigo and as we have communicated earlier we have a minimum revenue of 350 block hours per month and as you see on the graph here we are way above that for every month and that gives us an and more more focused and more safe revenue side from from area Indigo the coming year as well. An important part of having an and better understanding of how the year will really come out. So with that I will give the word to our CFO, Anders Hummels, that will take us through some of the numbers in more detail.

Thank you, Eivind and hello everybody. I will give you some more insight into the Q4 numbers and the 25 per se. So if we start now looking at Q4 25 and looking at the passenger numbers, we see that we fly a lot more. We have record high load factors. We are seeing 96%. Passenger numbers also increasing. We see that we go from 339,000 passengers Q4 24 to more than 400,000 this quarter. Revenues keep coming up. Although EBITDA and EBIT are lagging somewhat, we would like to see those higher. But if we look at the quarter, no, sorry, the full year of 2025, we see the same trends. We see increasing number of flights. We see load factor increasing. We see passenger numbers increasing. Revenues are significantly up. And for the full year, we also see the improvement on EBITDA and EBIT, where we have EBITDA of $56.5 million for the full year compared to zero for 2024. So this is the trajectory we're on. of gradually increasing, and Ivan will also come back to our outlook for this year. Some key terms to note when we talked, Ivan, you talked about TRUSK, which is total revenue per available seat kilometre. This is an important unit metric when we do our reporting. Similarly, CASC is cost per available seat kilometre. And it's basically the difference between the two that is important for us. So we see in this quarter that we improve Trusk by 3%. Sorry, for this year, we see that we improve Trusk by 3%. We reduce Cusk by 10%. And we do that in an environment where we fly 20% more. So these are the important drivers for what's ahead for Norse. Looking at the quarter itself, we now see that we are able to also increase passenger revenue. The revenue per passenger is up 10% year on year from $343 on average per passenger to $379 this quarter. We also have a big belly on this aircraft and volumes have been relatively stable, a little bit lower, but we see higher prices also on the cargo side, which is an important contribution to the overall profitability of our company and our industry. I even mentioned that we fly a lot more to Thailand, Southeast Asia. These routes have been particularly strong in terms of cargo. We transport salmon going east, and we have a lot of e-commerce, especially around November, December season, going back.

Looking at Q4 in particular,