Norwegian Air Shuttle New

Good morning and welcome to the first course of 2026 presentation for the Norwegian group. My name is Jesper Hotteveit and I'm the VP of Investor Relations here at Norwegian. Today's presentation will be held by our CEO, Gerrit Karlsson, and our CFO, Arne Jørgensen. The presentation will be followed by a Q&A from the audience and the web. Please go ahead, Gerrit. Thank you, Jesper. Good morning to everyone. Also good morning to the ones listening in online. It's a beautiful morning in Oslo. The sun is shining. The low season is behind us and we are looking forward to a summer season that is going to be hectic and we are going to fly a lot and the demand is looking very promising. But let's start by having a look at the first quarter of this year. EBITS negative of 220 million. This is a significant improvement from the same quarter last year. Very happy to see that Program X is really starting to deliver. 196 million in this quarter. And I will come back to a little bit more details on Program X a little bit later. Very strong traffic growth in the quarter. It's a record first quarter load factor. in Norwegian at 87.6%. We have a volatile macro situation, not at least on the fuel side, but at the same time in Norwegian we are 45% hedged, and we have seen tailwinds on the FX, meaning that the Norwegian Krone on the relative has gotten stronger. Also, very helpful that the ETS quota prices has come down. from the low 90 euros a ton to down at the 60s for the quarter, which is obviously helping. So the underlying cost excluding fuel is 2% up. I will come back to the guiding for the full year a little bit later. Vidrø, talking about operational excellence, is delivering great. quarter when it comes to the daily operation on both functionality, on-time performance, improved to 87%, which is impressive in a very difficult part of the year. Also regularity at 97%, with all the weather we are experiencing in the markets where Vidro is flying. I can see that I have both the CFO and the CEO in Vidro in the room here today, and I have to say that great job. to you and all your colleagues in Liderø. Also, regularity in Norwegian, 99.4%. We have always said that we are going to fly the network we have to save, meaning we have very few cancellations. This is another example of that. Ethereum, we are still top 10 in Europe when it comes to punctuality. I would like to be on top 5. But that is difficult, especially in the low season with all the weather we are experiencing up here in the north. Close to 500 routes in combination between the two airlines. Net promoter score, that is the feedback from our customers, is at very high levels, at more than 50. Also very good to see that Wider is really moving up the ladder when it comes to the MPS score. And as we say, why connect when you can fly direct? Meaning that we are the airline in the Nordics with most direct routes from the Nordics to Europe. We are continuing to push on the corporate markets, as we have been doing for quite a while. And we are very much looking forward to bringing and welcoming Raitan on board, coming live during June this year, so during the next couple of months. And finally, I have been talking about the new distribution platform now for almost two years. Finally, we are live. And we can now offer interlining with Vidre, for example, where you can now actually book a combination of Norwegian and Vidre on Norwegian's websites. You cannot do it on the app yet, but that will come. Balance sheets. We are continuing to work on the balance sheets. Cash position increased during the quarter to 14.2 billion. Net debt reduced to 4.4 billion, and we are seeing when we are seeking financing, these days we are seeking financing for the spare engines that we bought, 11 engines, and looking at the terms and conditions that we receive from 20 to 30 banks, it is at levels, terms-wise, that we have never seen in Norwegian before. So the credit in Norwegian is performing well, and we are finally getting extremely attractive terms when it comes to financing our assets. We are planning to pay dividends, 0.8 NOK per share, based on an approval from the upcoming AGM. We do expect that that will be approved, and then we will pay out the dividend. We are having a very volatile situation when it comes to the fuel side, due to the situation in the Middle East. But we have, as I will go through a little bit later, hedged 45%. And we have also seen an uptick in demand, especially into the western and southern part of Europe. And we think that that demand has shifted from the Middle East to these destinations. We have filed an appeal to the Supreme Court in Norway on the ETS case. And we do expect that we will have an outcome, final outcome of that case during the year. A little bit on numbers, 5.2 million passengers in the quarter. That's 2% up compared to the same for last year, and that is on a capacity reduction, actually, on both airlines, 6% down in Norwegian, 2% down in leader. Very happy to see the high load factor in Norwegian, up 5 percentage points to 87.6. It's a record, as mentioned. And I have to say again, when it comes to on-time performance and regularity in Vidre, very impressive, very impressive. Contrarity in Norwegian is actually down three percentage points, mostly due to weather conditions in the markets we were flying during the quarter. But on regularity, still at very high levels and very close to our targets. Little bit on the winter traffic. This is a graph that we show every quarter. And as you can see, we have a lot of seasonality in Norwegian. A little bit flatter curve in Vidre. But this shows how we flex between the different seasons. And by that, you know, we are keeping a relatively stable load factor, which is very important. But we are 6% down capacity in this quarter compared to the same quarter last year. But we are flying 2% more passengers, and again, a historic high Q1 load factor. So, and not at least a very nice development on the yield, up 5% compared to last year. So, with a 6% capacity reduction, we are quite happy with the results, and it seems like we hit where we wanted pretty well. We are now moving into the peak season where we expect to carry much more passengers and hopefully then also we will see a nice development both in load and on yield. Looking at the same for Videre, very good to see the load factors coming up over the last couple of months. 70.2% load, 930,000 passengers, up 2% as well. And then, as mentioned a couple of times now, the performance operationally has been absolutely fantastic in Vida during the quarter. And normally, this is also then giving good results on the bottom line. I'm very happy to see that Vida is actually delivering an EBIT positive of 38 million, which is 81 million improvement. from the same period last year. Vidre had the record year in 2025. I think we have a great chance of actually beating that in 2026. Keep up in Vidre. Looking at the bookings going forward to the left on the top there, it shows seven-day rolling sales figures on numbers of passengers. That's all markets, all destinations, travel when you want. Normally, these curves will show that we have a peak in sales in the New Year's sales that we have every year. Special thing this year is that we have actually a peak in March, and that this is after or post the Iran situation. Very interesting to see. And then it flattens out, come downs, and then you see the typical Easter effect. Easter is earlier this year than last year. That's why you see the dip in the red line there. And you see it, you know, the comparable one is the blue coming a few weeks later. Also good to see that the curve as per today is higher than last year. We saw a decline in bookings after the situation in Iran, especially in Turkey and in Cyprus. But we also saw an increase in demand as mentioned in the southwest and south of Europe, you know, when this happened. So all in all, I think we could say that, you know, it looks promising for the months to come. I'll come back a little bit to details on it. We are ready for the summer season. We have all the crew we need. We have all the aircraft we need. Everybody is ready for a busy summer season. Capacity-wise, we are up 5% compared to last year for the second quarter as a whole. But we have increased the capacity, especially in June, with 8% to 9%. If you look at book revenue, this is travel from May to August. On load, we are marginally behind in April. That is mostly due to the Easter effects. And we are flat to marginally below on load in June as well. But have in mind, we have 8% to 9% capacity growth. On the other months, we are ahead of last year. We had Asper today sold 300,000 tickets more than the same date last year. So I would say it looks very comfortable when it comes to the load. On yield, we are ahead of last year on most months. The exception is again June, where we are marginally behind, but hopefully we can catch up and get in front of the line when we end June. So I think all in all, very happy with the bookings going forward. We have a capacity increase compared to last year, and it seems like the increases in fares that we have put in place, and we have increased the fares due to the situation, not at least on the fuel side, It seems like this is sticking with the customers. They're actually willing to pay more for a ticket today, probably because they understand the situation that we are in with fuel prices that has increased a lot. A little bit about the macro situation. The production that Norwegian has had to the Middle East has been kind of limited. Yes, we have been flying to Dubai from the three capitals in Norway, Sweden, and Denmark. That is obviously now canceled. Normally, we just fly it during the wintertime. That is canceled. We had a plan to start up to fly to Tel Aviv and to Beirut. That is also postponed and canceled for the time being, and this is the capacity that we have been moving over to high-demand routes in Europe, flying typically down to the Mediterranean, where you are seeing a very strong demand these days. Forty-five percent hedged for the remainder of the year. This is in combination, let's say, combined for the two airlines, Norwegian and Videre. We are hedged against the jet fuel, not against the crude oil, and we are doing it by doing swaps where the counterparts typically are banks. So then that is out there. When it comes to availability of fuel, I've been reading a lot in the media lately about, you know, how big of a problem this is going to be. Looking at the situation today from Norwegian, we are quite confident that, you know, we will get the fuel we need as, you know, as long as we can have this ability today. We are talking to our suppliers all the time. And as for today, there is no signs from at least them that there will be a lack of fuel during, in the short term. What we are seeing is that we are actually sourcing our fuel mostly from Scandinavia and some part of Europe. We are seeing that the European producers of jet fuel is increasing their capacity. We are also seeing that the import of fuel into Europe is increasing, both from the U.S. and also increasing from Africa. It's also more crude oil coming into the market, giving the refineries the optionality to actually produce more fuel. So for the time being, we are quite comfortable on the fuel situation. And we haven't canceled anything. We are not planning to cancel anything either, and then we will just follow the situation very closely, obviously, and to have a look at the fuel situation. But again, we are seeing a very strong demand, very healthy bookings, and we have increased the fares, and to some extent this is compensating for the fact that we have seen higher fuel prices. Hans-Jürgen. Thank you, Guy.

Good morning, everyone. Nice to see you here. I will, as usual, go through the Q1 results in some more detail, starting with revenues, which are up 6%, as Guy said, to 55.8 billion. And that's pretty strong on the basis of an ASK, which is down 6%. And that's reflecting the unit cost increase that I will talk about a little bit later. Bidder are coming in with a nice 1.9 billion. As Gail also mentioned, there is traffic improving across the group. We see that the, we have been able to optimize the winter production in a very nice way, taking down the capacity, the ASK by 6%, with the impact of that partially being that the unit revenues up in quite a big increase by 13% year over year, both on higher load factor and yield. Of course, there is a small, or there is a, Easter impact in March of that, but overall also looking at March, February, and January in combination, it is a strong figure. And again, we are delivering a nice 2% increase. Looking at the operating result, negative 220 million. It's not nice to report a negative figure, but seasonally this is a very strong figure, and it's a very significant improvement from last year. nearly 400 million, and that's without taking into account the non-recurring impact of the acquisition of 10 aircraft in 2025, which had an impact of nearly 590 million. So the underlying improvement is bigger than it looks at the EBIT comparison. So looking at the Norwegian EBIT, negative 259, and then with BIDRA coming in with a nice profit, And that's really good. And as we've talked about several times, it's smoothened out. It's less operational and business model. It's less seasonal than it is with Norwegian. So that's a good combination. As also mentioned before, we have some marker of tailwind or advantages from strengthening a Norwegian kronor versus the U.S. dollar. We have attractive hedges that have helped us in this quarter. and also the ETS price coming down. So there is some tailwind on the kind of macro elements, and then which also has an impact on this OGL against the losses of 284 million. I think the important thing, though, and I will come back to that, is the underlying improvement, which is significant, which also results in a unit cost which is up only 2% on the basis of an ASK which is down 6%. And that's of a number which is better than we have seen historically and really gives a strong signal that there is good cost control in Norwegian, partially due to program X, but also hard work, of course, across the whole group. So that's really good to see. And also the financial strength has improved during the quarter. We came out of the year with a strong balance sheet, but it has further improved during the quarter with 14.2 billion of gross cash at the end of the quarter. Some of that is linked to the short-term investments and also deposits for the outstanding bond, which is due for repayment in the third quarter, 2.6 billion. And thus, having then the net interest-bearing debt, which is an important KPI for us, is down to 4.4 billion at the end of the quarter. equity ratio going up. So, also from a balancing point of view, coming out of the quarter with a strengthened, further strengthened balance sheet compared with where we were one quarter ago. So, a further deep dive into the revenue side, we see that the Norwegian part is up 6% on revenues, and we can explain by, first of all, there is a volume impact, reduced ASK. But that, again, has the positive impact on yield development, which has a significant positive. That's 5% and low factor, 5.2%, which then brings us to a revenue of, in Norwegian, of 5.1 billion. On top of that, obviously, a nice number from Vidra at 1.8 billion, bringing the total revenue to 6.9 billion. Then on the maybe even more interesting is to look at the EBIT bridge, how we go from a loss in first quarter of last year of 568 million to a loss in Norwegian, that is, of 259 million. And again, taking into account that the 569 million is including a non-recurring gain of 589 million, which is represented on the on the red bar there. Obviously, we talked about, both Geir and myself, we talked about the macro gains, sorry, benefit from lower ETS strength in Norwegian kroner and also the hedges representing 415 million. But the most important thing is to focus on the underlying improvement, 432 million, which is a result of all the initiatives from Program X across the group bringing, you know, this kind of underlying benefit to our results. And this is as we had expected, but it's really good to see it coming through in the numbers. Part of that, just as an example, are the recurring gains from the acquisition of 13 aircraft out of leases last year. But there are also a number of other initiatives across the group that actually adds up to 432, obviously including also the top line increases that we talked about on the revenue side. And then also, as mentioned before, Vidra with a very nice increase, 38 million from last year. And then we're ending up with a good EBIT of 220 million as a loss. Again, a significant improvement from previous quarter, especially taking into account the non-recurring impact last quarter. So I think we talked a lot about the P&L so far, but just to summarize, Operating revenues up by 5%. Personal expenses naturally up as always, 5% controlled. Aviation fuel, we have the impact of the macro benefits, the hedges, and also slightly lower ASK impacting that figure. We're seeing that the airport charges and ATC charges is down more than 10%. That's because of good negotiations, good results from the airports. We're seeing handling charges down partially due lower ASK but also good deals on the handling, good control of the cost, technical expenses also, maintenance expenses also down. So overall, good control of the cost and it's really good to see that this is kind of our ambitions to have a really good cost control. We see that in the numbers. Aircraft depreciation obviously up a bit, and that's, again, because of the non-recurring element in Q1 last year, so it's not comparable figures. And then net financial items a little bit up. That's mostly to do with unrealized losses on currencies relating to our cash balances in U.S. dollars. Overall, a good performance and a profit before tax then of 459 million minus versus 756 million lost in the same quarter last year. A few final words on the balance sheet in some more detail. We can see that the balance sheet is, the total size of the balance sheet is increasing. That's mostly to do with the cash, which is building 4.1 billion of cash bill during the quarter. That's seasonal, but it's really good to see that number, and it's driven largely by ticket sales, but also strong cash flow from operations. We see the equity going up by 1.4 billion. Why is that? Yes, because we have a mark-to-market value of our hedges of more than 2 billion, and you will see that in the other comprehensive income, which for some of you is interesting. But it's a technicality, but that is directed towards equity, which then increase our equity ratio from the end of the year from 18.2% to 19.1%. And this is the net interest bearing debt that we've talked about a few times, 4.4 billion down from 9.5 billion, driven by lower lease debt liabilities. somewhat nearly 1 billion, and then, of course, the buildup of cash during the quarter. No aircraft deliveries in Q1 as planned, but as Gare said, we have a fleet ready for the summer season, so we're well positioned for that important season for us as we move forward. And again, we will pay dividends in May, subject to AGM approval. We think that will go through. So we're very happy to be able to distribute some cash to our, their shareholders. Just finally on the cash flow, I think we talked a lot about that. Starting, this is the pure cash going up by 4.1 billion, and that's excluding the fixed income fund of 1.1 billion nearly and the positive and outstanding bond, which is due on the third quarter next year. of 1.5, ticket repayment, 3.6 billion seasonally, strong ticket sales, other operating activities, investment activities largely in vitro, but just at a normalized level, about 400 million, repayment of debt, regular debt on the aircraft, 857 million, and then finally ending up with a on a cash balance of 11.6 billion. So a strong performance on the balance sheet, good cash flow, as expected. So we are well placed going into the summer season.

Thank you.