Norwegian Air Shuttle ASA

Earnings Release • Aug 25, 2022

Presentation of second quarter 2022

25 August 2022

Highlights

Delivering proven customer experiences in challenging environment – robust operations with regularity close to 100%

New partnerships to benefit customers – Widerøe and Norse Atlantic Airways co-operation

Quarterly earnings (EBT) NOK 1,248 million – headwinds from fuel, FX and strike, aircraft order gain – preserving robust liquidity position

Boeing aircraft order for 50 new aircraft – fleet renewal at attractive terms

Bringing passengers to summer destinations

• Successful ramp-up for summer season with regularity close to 100%
• Getting customers to their destinations – wet-lease to avoid cancellations
• Strong yields and record high unit revenue

Booking momentum

• Customers booked later this summer than previous
• Encouraging booking trends for autumn – customers planning next holiday
• Corporate travellers valuing Norwegian's regularity on strong on-time performance

Attractive autumn & winter program

• 232 routes on offer across attractive network
• Preferred travel partner with strong brand loyalty

7-day rolling sales figures (abs) – All markets*

*Travel anytime, company data as of 22 August 2022

Securing modern long-term fleet

Agreement to purchase Boeing 737 MAX 8 aircraft

• Reached agreement at favourable terms – attractive pricing and inflation protection
• Order for 50 aircraft delivery 2025-2028
• Option for 30 aircraft delivery 2028-2030

Improving financial flexibility

• NOK 2.1bn gain from prepayment reinstalment – strengthening equity position
• Significant share to be owned reducing overall financing cost
• Cost effective aircraft with latest technology

Sustainable and cost-effective aircraft

• Fuel-efficient aircraft with latest technology – 14% lower fuel-burn than previous generation

Financial results for Q2 2022

Quarterly financial highlights

Q2 2021 Q1 2022 Q2 2022

Revenues	Unit revenue -	total	0.62		Passenger traffic (million RPK)	6,190
Traffic and yields increased markedly this quarter Ancillary NOK 158 per pax	0.57 Q2 2021	0.48 Q1 2022	Q2 2022	302 Q2 2021	2,976 Q1 2022	Q2 2022
Profits			EBITDAR (NOK million)
Positive bottom line – EBT NOK 1,248 million Earnings affected by fuel and FX headwinds – gain from aircraft order CASK ex. fuel NOK 0.43 in quarter			-538 Q2 2021	-468 Q1 2022	-214 Q2 2022
Balance sheet Protecting strong liquidity position Equity ratio increased to 15.1% Cash flow positive this quarter			Cash & equiv. (NOK billion) 7.5	+8m 7.5	7.5

7

Fuel headwinds in Q2

• Sharp increase in jet fuel price following Ukraine invasion
• Q2 market spot price above \$1,300/mt – 11% lower currently
• USDNOK coming down from this recent highs
• Fuel increase partially offset through higher fares

Updated as per 19 August 2022

Q2 earnings – delivering earnings above 1bn

NOK million	Q2 2022	Q1 2022	Chng (QoQ)
Passenger revenue	3 970 ,	1 513 ,
Ancillary passenger revenue	782	344
Other revenue	116	59
Total operating revenue	4 868 ,	1 916 ,	+154%	Ramp-up and improving yields
Personnel expenses	782	633
Aviation fuel	2 338 ,	634	+269%	NOK fuel price +47% QoQ
ATC Airport and charges	585	271
Handling charges	482	176
Technical maintenance expenses	424	273
Other operating expenses	476	382
EBITDAR excl other losses/(gains)	-219	-452
Other losses/(gains)	-5	16
EBITDAR	-214	-468
Aircraft lease depreciation and amortization ,	527	381	+38%	Including temporary wet-lease
Reversal of impairment loss aircraft re.prepayment on	-2 099 ,	0		Reinstatement of aircraft prepayment
Operating profit (EBIT)	1 359 ,	-849
Net financial items	-110	-183
Profit (loss) before (EBT) tax	1 248 ,	-1 031 ,	+2 280 ,

Balance sheet – improved equity position

NOK million	30 Jun	31 Mar	Chng
	2022	2022	(QoQ)
Intangible assets	2 082 ,	2 069 ,
Tangible fixed assets	9 834 ,	6 795 ,		Aircraft prepayment
Total non-current assets	12 203 ,	9 075 ,	+34%	and lease revaluation
Receivables	4 331 ,	3 418 ,		Holdback (%) reduced to 67%
Cash and cash equivalents	7 543 ,	7 535 ,
Total current assets	11 948 ,	11 010 ,
Assets	24 151 ,	20 085 ,	+20%
Equity	3 654 ,	2 265 ,	+61%
Non-current debt	8 974 ,	8 513 ,
Other liabilities non-current	1 663 ,	1 230 ,
Total non-current liabilities	10 636 ,	9 743 ,
Air traffic settlement liabilities	4 805 ,	3 613 ,		Increased bookings through
Current debt	1 301 ,	1 193 ,		quarter
Other liabilities current	3 755 ,	3 271 ,
Total liabilities current	9 860 ,	8 078 ,	+22%
Liabilities	20 497 ,	17 820 ,
Equity ratio (%)	15 1	11 3

Net interest bearing debt
NOK million	30 Jun 2022	31 Mar 2022	Chng (QoQ)
Cash & equiv	7 543 ,	7 535 ,	8 +
Aircraft financing NAS 13 Other IB debt Retained Claims Bonds	6 942 , 585 134 2 614 ,	6 284 , 703 165 2 554 ,	+658 -118
NIBD	2 732 ,	2 171 ,	+561

NIBD increase due to IFRS16 lease liabilities – additional 2 aircraft on balance sheet this quarter – revaluation with USD appreciation against NOK

Cash flow – preserving cash position

• Improved liquidity outlook from strong summer season
• Holdback down to 67% – trending lower going forward
• Limited prepayments (PDP) going forward – NOK 643 million paid in July

The way forward

A sustainable successful future

Reliable and trustworthy Getting you to your destination High top-of-mind awareness Award-winning¹ Delivering market-leading customer experiences Promoting sustainable aviation, the Norwegian way Committed to 45% Loyalty program for all >4 million Reward members in the Nordics Attractive network New opportunities with Widerøe and Norse co-operation Serious about sustainability Committed to 45% reduction target High top-of-mind awareness Award-winning¹ >250 Nordic Broad network -based routes Promoting SAF Collaborating with producers and policy makers Dedicated and friendly people Signed new union agreements this summer

Summary

Capitalising on continued pent-up demand

• Encouraging booking trends after successful summer season
• Fleet increasing from 70 to 85 for summer 2023
• Market-leading Norwegian Reward programme
• Attractive network partnership with Widerøe

Robust balance sheet

• Preserved strong liquidity position
• Aircraft order improving financial flexibility

• Optimising financing cost own share of fleet

• Leveraging on scale and seasonal flexibility

• 35,000m ASK target for 2023
• Utilising PBH this winter adjusting capacity to demand
• Targeting sub 0.40 CASK ex. fuel for 2H2022

Book tickets at Norwegian.com

Appendix

20 largest shareholders as of 30 June 2022*

	Name	Country	Number of shares	Per cent
1	Geveran Trading Company, Ltd.	Cyprus	129,614,986	13.9 %
2	Sundt AS	Norway	105,603,198	11.4 %
3	Folketrygdfondet	Norway	55,405,388	6.0 %
4	Silver Point Capital, L.P.	United States	42,526,526	4.6 %
5	Davy Stockbrokers	Ireland	31,856,825	3.4 %
6	Nordnet Bank AB.	Norway	31,344,684	3.4 %
7	DNB Asset Management AS	Norway	29,668,531	3.2 %
8	Keskinäinen eläkevakuutusyhtiö Varma	Finland	27,500,000	3.0 %
9	Avanza Bank AB	Sweden	26,031,411	2.8 %
10	Handelsbanken Kapitalförvaltning AB	Sweden	22,026,082	2.4 %
11	Contrarian Capital Management, LLC	United States	18,304,923	2.0 %
12	KLP Forsikring	Norway	11,827,089	1.3 %
13	Retail Investors Holding 20,000 to 50,000 shares	Norway	11,301,600	1.2 %
14	BlackRock Institutional Trust Company, N.A.	United States	10,099,260	1.1 %
15	Brumm AS	Norway	10,000,942	1.1 %
16	Nordea Funds Oy	Finland	9,439,301	1.0 %
17	Swedbank AB	Sweden	9,301,270	1.0 %
18	Arctic Fund Management AS	Norway	8,779,799	0.9 %
19	HSBC Trinkaus & Burkhardt AG	Germany	7,001,243	0.8 %
20	UBS Switzerland AG	Switzerland	6,186,689	0.7 %
	Top 20 shareholders		603,819,747	64.9 %
	Other shareholders		326,169,992	35.1 %
	Total number of shares		929,989,739	100.0 %

*) The data is obtained through third-party analysis of beneficial ownership and fund manager information provided in replies to ownership notices issued to custodians. Reasonable efforts have been made to verify the data, however Norwegian Air Shuttle ASA cannot guarantee the accuracy of the analysis.