Norse Atlantic ASA

Investor Presentation • Nov 29, 2024

Q3 2024 Presentation

29 November 2024

This presentation and its appendices (the "Presentation") has been produced by Norse Atlantic ASA (the "Company", and together with its direct and indirect subsidiaries, the "Group").

This Presentation has been prepared for information purposes only, and does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell or a solicitation of an offer to subscribe for or purchase, or a recommendation regarding, any securities of the Company and nothing contained herein shall form the basis of any contract or commitment whatsoever.

No representation, warranty or undertaking, express or implied, is made by the Company or its affiliates or representatives as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. Neither the Company nor any of its affiliates or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss whatsoever and howsoever arising from any use of this Presentation or its contents or otherwise arising in connection with this Presentation.

This Presentation includes and is based, inter alia, on forward-looking information and contains statements regarding the future in connection with the Group's profit figures, outlook, strategies and objectives. All forward-looking information and statements in this presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the major markets for the Group and its lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "believe", "aim", "expect", "anticipate", "intend", "estimate", "will", "may", "continue", "should" and similar expressions. Forward-looking statements are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies, and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies, and other important factors could cause actual events to differ materially from the expectations expressed or implied in this Presentation by such forward-looking statements.

This Presentation is current as of the date hereof. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date.

The distribution of this Presentation by the Company in certain jurisdictions is restricted by law. Accordingly, this Presentation may not be distributed or published in any jurisdiction except under circumstances that will result in compliance with any applicable laws and regulations. This Presentation does not constitute an offer of, or an invitation to purchase, any securities.

By accepting these materials, each recipient represents and warrants that it is able to receive them without contravention of an unfulfilled registration requirements or other legal or regulatory restrictions in the jurisdiction in which such recipients resides or conducts business.

Disclaimer

Revenue up 8% to USD 222 million, EBITDAR USD 27 million, net loss USD 6 million

Highlights from the Quarter

Load factor of 86%, +3p.p. YoY and best quarter to date

YoY: Year on Year, Q3 2024 compared to Q3 2023

ASK +20% YoY, no. of passengers +18% YoY

4 H2 2024 not expected to be profitable, 2025 expected to be profitable

USD 15 million of new capital from BTL&Co; USD 8.7 million1) of equity, USD 6.3 million of loan

Repair issue of up to USD 37 million to follow early 2025

1

2

3

Highlights from Strategic Update

Network performance improving; keeping best-performing routes while lowering cost

4

-

Detailed LOI signed for longer-term, six aircraft ACMI with reputable international airline

LOI for longer-term wet lease agreement for six aircraft

"On 22 November 2024, the Company entered a detailed letter of intent (the "LOI") with a reputable international airline for wet lease agreements ("wet lease") for six aircraft, subject to final agreements, mutual corporate approvals and regulatory approvals. The initial contract term could be further extended, subject to regulatory approval, to cover a longer-term period, with an estimated contract value of USD 462 million over that extended term. Pursuant to the LOI, and provided final agreements are executed based on the terms therein, two aircraft are expected to be deployed in February 2025, with an additional four aircraft expected in September 2025. Norse will be entitled to payment for 350 block hours per aircraft each month, with additional payments possible if utilization exceeds 350 hours per month."

Path to Profitability

ACMI/Network Strategy

Multi-year ACMI agreements/LOIs with ~\$500m of ACMI backlog*; completes successful repositioning to dual ACMI/Network strategy

Commercial Overhaul

New commercial team with tech capabilities showing strong trading and LF performance (~90%LF Sep-Oct)

Cost-Efficiency

Reducing SG&A cost by 50% and increasing crew utilization due to improved base structure, technology and automation

*) In part subject to approvals

Roadmap | Systematic and structured path to attractive profitability

Cracked the commercial code: Improving sales by science-based methodology

Data-driven product development enables improved earnings – three examples:

2023 revenues were USD 439 million – 23% increase illustrates a USD 100 million annual potential

Cracked the commercial code: Strengthening of network operations supported by early baseload and good pre-booking numbers

Note: Data as per November 27, 2024

Reducing cost and increasing efficiency with USD ~40 million annually

1) Includes costs related to marketing and distribution, and well as costs related to central office administration and staff

	ACMI & Tech focus enables significant cost reductions		SG&A1)	estimated cost development 2024-26
Tech	In-house IT development focused on automation and efficiency, est. savings of ~\$4M in 2025	45 40 35 30 25 20 15	USD million		~50%
		10 5
Distribution	Reduced 3rd party sales and distribution cost (marketing and agent fees)	0 2024e 2025FC 2026FC Crew utilization development 2024-26
		900 800	Annual block hours
Utilization & base	Reduced operational complexity and increase efficiency of airborne staff utilization and improved base structure	700 600 500 400 300 200 100
		0	2024	2025	2026

Transaction summary

in a directed equity private placement at NOK 5 per share and provide a

• The Company and BT Larsen & Co Limited, 18.88% shareholder and affiliated to CEO Bjørn Tore Larsen, have agreed to strengthen the Company's working capital to facilitate the ongoing strategic repositioning:
  • BT Larsen & Co Limited will invest USD 8.7 million¹ USD 6.3 million shareholder loan with maturity 31 December 2025, combined USD 15.0 million;
  • Issuance of shares decided by BoD as per authorization from the GM for issuance up to 15% of the share capital;
  • After completion of the transaction, BT Larsen & Co Limited will hold 29.46% of the outstanding shares;
  • All remaining shareholders to be offered to subscribe the same pro rata amounts at the same price in a subsequent offering² ("Repair Offering") of up to USD 37.5 million¹
• Proceeds from the Repair Offering, if any, will be used for general corporate purposes
• The Repair Offering is expected to be launched early 2025, pending approval of prospectus
• The shareholders and the Company have agreed to extend maturity of the existing shareholder loan of nominal amount USD 20.0 million until 31 March 2026

• Completion at 99.3% for the quarter

• Punctuality at 77% for the quarter

% of flights completed and arriving on time

Operational performance remains strong

Strong growth YoY

CASK at its lowest-ever level

Notes: CASK defined as CASK ex. fuel, PRASK: Total passenger revenue per available seat kilometer in own network

YoY: Year on Year, Q3 2024 compared to Q3 2023

A la carte Bundles

Ancillary revenue per passenger USD

Bundles are ancillary items included in the original ticket price of Classic and Flextra fares

USD thousands	3 months Q3 2024	3 months Q3 2023	9 months YTD 2024	9 months YTD 2023	12 months FY 2023
Revenue	221,987	204,796	464,988	344,655	439,436
Personnel expenses	36,837	27,508	96,911	70,451	99,759
Fuel, oil & emissions	65,512	64,561	150,515	112,401	152,527
Other OPEX	80,0931	61,206	178,717	123,445	167,645
SG&A	12,866	10,469	36,385	28,013	37,486
EBITDAR	26,678	41,052	2,461	10,344	(17,980)
Variable aircraft rentals	182	9,290	7,952	25,769	33,139
Depreciation & amortization	21,882	21,453	65,606	62,931	84,103
EBIT	4,614	10,309	(71,097)	(78,357)	(135,223)
Net finance cost	10,759	8,714	29,543	25,907	33,379
EBT	(6,145)	1,595	(100,640 )	(104,264)	(168,602)

Income Statement

First quarter of profit as capacity and revenue increase largely during summer season

• Q3 2024 revenue up 8% YoY, driven by;
  • 20% increased capacity (ASK)
  • Load factor up to average of 86% over quarter, compared to 83% in Q3 2023
  • Revenue per pax down by 7% due to softening Transatlantic market
• USD 4 million non-cash aircraft lease accounting cost during quarter (USD 18 million YTD)

YoY: Year on Year, Q4 2023 compared to Q4 2022

Cash Flow Statement

USD thousands	3 months Q3 2024	3 months Q3 2023	9 months YTD 2024	9 months YTD 2023	12 months FY 2023
Operating cash flows before WC1) movements	28,171	34,479	(25)	(9,783)	(39,054)
WC1) movements	3,871	(32,409)	35,780	10,078	18,496
Operating cash flows	32,042	2,070	35,754	295	(20,558)
Investing cash flows	(4,016)	(2,924)	(18,899)	(3,025)	(7,332)
Financing cash flows	(25,560)	(15,767)	(44,628)	(34,020)	1,524
Currency effects	215	177	592	(389)	586
Net change in free cash	2,682	(16,444)	(27,182)	(37,139)	(25,780)
Free cash at period end	12,148	27,570	12,148	27,570	38,929
Restricted cash held	13,200	15,000	13,200	15,000	15,901
Total cash	25,348	42,570	25,348	42,570	54,830

• Positive cash from operations during period
• Negative cash flow to financing during period due to service of lease liabilities
• End of quarter cash at USD 25 million

Q3 Update

Statement of financial position

USD thousands	30 SEP 24	30 SEP 23	31 DEC 23
Total non-current assets	890,595	930,589	935,505
Credit receivables card	124 939 ,	100 245 ,	60 214 ,
receivables/current Other assets	30 659 ,	34 024 ,	32 587 ,
Cash equivalents and cash	25 348 ,	42 570 ,	830 54 ,
Total current assets	180,946	176,838	147,945
Total assets	1,071,541	1,107,428	1,083,136
Total equity	(184,491)	(80,385)	(89,697)
Total non-current liabilities	914,791	954,391	960,060
Deferred passenger revenue	73 120 ,	59 574 ,	52 394 ,
Other liabilities current	268 121 ,	173 847 ,	160 379 ,
Total current liabilities	341,240	233,421	212,773
Total equity & liabilities	1,071,541	1,107,428	1,083,136

Current assets include:

• USD 125 million receivables from credit card companies for booked tickets

Current liabilities include:

• USD 73 million deferred passenger revenue
• USD 21 million revolving credit facility, new maturity 31 March 2026
• Book equity reflects USD 159 million accumulated non-cash lease accounting cost since inception

ACMI/Network

USD [500]m ACMI contract backlog Continued strong ACMI demand High-graded network drive profitability

Commercial Overhaul

Transformed commercial platform Improved commercial performance Higher fares and +90% Load Factor

Cost Efficiency

Reducing SG&A by 50% Improved crew utilization

Summary and outlook

	Jul23	Aug23	Sep23	Oct23	Nov23	Dec23	Jan24	Feb24	Mar24	Apr24	May24	Jun24	Jul24	Aug24	Sep24
Number of aircraft in fleet	15	15	15	15	15	15	15	15	15	15	15	15	15	15	15
Number of aircraft subleased out	5	5	5	5	5	5	5	5	4	4	3	3	3	3	3
ASK (millions)	1,215	1,207	1,152	900	557	800	711	485	752	866	1,154	1,481	1,520	1,570	1,184
RPK (millions)	1,034	1,036	896	676	339	564	456	350	615	680	933	1,255	1,256	1,364	1,049
Load factor	85%	86%	78%	75%	61%	71%	64%	72%	82%	79%	81%	85%	83%	87%	89%
Number of passengers (thousand)	151	151	133	102	49	79	65	51	86	99	130	178	177	191	147
Number of flights	524	520	503	403	242	343	313	225	324	398	513	620	639	661	513

Contact: Investors: investor.relations@flynorse.com Media: media@flynorse.com