Norwegian Air Shuttle ASA

Earnings Release • May 12, 2023

Presentation of first quarter 2023

12 May 2023

Highlights

Quarterly loss (EBT) limited to NOK 992 million

• utilising fleet flexibility to reduce quarterly loss in low-season – capacity reduced 20-30%
• liquidity position NOK 8.6 billion strong quarterly cash flow

Ramping up for strong summer

• booking momentum pointing to record summer season
• securing aircraft despite Boeing delays fleet increasing to 81
• insourcing OSL ground handling services

Attractive customer offering

• close to 300 routes across attractive network
• Norwegian Reward relaunch with new benefits
• serving customers solely with Norwegian operated aircraft

Lead role for sustainable aviation

• landmark investment and strategic partnership with Norsk e-Fuel
• fleet renewal phasing in latest technology fuel-efficient aircraft
• committed to 45% reduction in CO2 emissions by 2030

Ramp-up following reduced winter capacity

Traffic – PAX per month, load factor and yield

• Fleet flexibility to minimise winter cash-burn
• PBH in place through Q1
• capacity reduced 20-30%
• Ramp-up towards summer season – summer program started 26 March – close to 300 summer routes on sale
• Stable strong loads with increasing yield

Strong booking momentum

Strong momentum through spring

• Diversified bookings across travels months for domestic, beach and city destinations
• Booking momentum robust also after sales campaigns
• Booked fares significantly above previous years – avg. June to Aug. fares +25% vs. same time last year

Visibility normalising

• Peak summer booked load significantly above last year
• Bookings below 2019, but revenue above with disciplined pricing

Preferred travel partner

• Brand most loved in Norway and second in rest of Nordics1)
• Widerøe co-operation seamless travel across whole network
• Market-leading operations most punctual Nordic airline
• Numerous awards for service, product and innovations

Booked Revenue – June to Aug. travel3)

2) Travel anytime, anywhere as of 8 May 2023 3) 2019 adjusted for comparable route network

1) Norwegian Brand Tracker Survey managed by Kantar for Q1 2023

Financial results for Q1 2023

Quarterly financial highlights

EBITDAR (NOK million) excl. other losses/(gains)

6

Q1 earnings – minimising loss during winter

NOK million	Q1 2023	Q1 2022	Chng. (YoY)
Passenger revenue	3,191	1,513
Ancillary passenger revenue	604	344
Other revenue	181	59
Total operating revenue	3,975	1,916	+107%	Unit revenue up 31%
Personnel expenses	920	633
Aviation fuel	1,539	634	+143%	Fuel elevated in Q1 and strong USD
Airport and ATC charges	489	271
Handling charges	408	176
Technical maintenance expenses	158	110	+44%	Reclassification of heavy maintenance
Other operating expenses	586	382
EBITDAR excl other losses/(gains)	-124	-290
Other losses/(gains)	31	16
EBITDAR	-155	-305
Aircraft lease, depreciation and amortization	762	543		Reclassification of heavy maintenance
Operating profit (EBIT)	-916	-849
Net financial items	-75	-183
Profit before tax (EBT)	-992	-1,031	4%	Minimising losses by matching capacity to demand

Maintenance expenses – accounting policy change

• Aligning treatment of heavy maintenance between leased and owned aircraft
• Obligations for heavy maintenance events includes major airframe, engine, APU and landing gear overhaul
• Previously booked under "Technical maintenance expenses" – reclassified to "Aircraft lease, depreciation and amortization"
• Additional information in note 11 in quarterly report

Heavy Maintenance for Leased Aircraft Adjustment of Comparative Financial Information

Unaudited (in NOK million)	Q1 2023	Full year 2022
Technical maintenance expenses, previous policy	469	1,666
Technical maintenance expenses, updated policy	158	556
Change, technical maintenance expenses	-311	-1,109
EBITDAR, previous policy	-466	1,254
EBITDAR, updated policy	-155	2,363
Change, EBITDAR	311	1,109
Aircraft lease, depreciation and amotization, previous policy	451	1,851
Aircraft lease, depreciation and amotization, updated policy	762	2,961
Change, aircraft lease, depriciation and amortization	311	1,109
Operating profit (EBIT), previous policy	-916	1,502
Operating profit (EBIT), updated policy	-916	1,502
Change, operating profit (EBIT)	0	0

Protecting robust balance sheet in winter

NOK million	31 Mar. 2023	31 Dec. 2022	Chng. (QoQ)
Intangible assets	2,097	2,090					Net interest bearing debt
Tangible assets	13,207	10,078
Total non-current assets	15,818	12,625	+25%	Additional leased aircraft		NOK million	31 Mar. 2023	31 Dec. 2022	Chng. (QoQ)
Receivables	3,836	2,185		Holdback down to 32%		Cash & equiv.	8,628	7,759	+869
Cash and cash equivalents	8,628	7,759	+11%
Total current assets	12,572	10,045				Aircraft financing	9,562	6,640	+2,922
						NAS 13	570	569
Assets	28,389	22,670				Other IB debt	101	137
Equity	3,168	4,203				Retained Claims Bonds	2,437	2,739	-302
					NIBD		4,080	2,326	+1,754
Non-current debt	10,974	8,696
Other non-current liabilities	2,411	2,146
Total non-current liabilities	13,385	10,842				NIBD increase	in quarter with addition of latest
Air traffic settlement liabilities	6,160	2,549	+142%	Increased bookings		technology aircraft with longer lease duration
Current debt	1,735	1,389				79 aircraft at quarter-end, up from 70 last quarter
Other current liabilities	3,942	3,686				NOK 485m bond repurchase in Feb. at 72.50%
Total current liabilities	11,837	7,624				– optimising capital structure at attractive price
Liabilities	25,222	18,466
Equity and liabilities	28,389	22,670	+25%
Equity ratio (%)	11.2	18.5	-7 p.p.	Quarterly loss and increased fleet

Net interest bearing debt
NOK million	31 Mar. 2023	31 Dec. 2022	Chng. (QoQ)
Cash & equiv.	8,628	7,759	+869
Aircraft financing NAS 13 Other IB debt Retained Claims Bonds	9,562 570 101 2,437	6,640 569 137 2,739	+2,922 -302
NIBD	4,080	2,326	+1,754

• NIBD increase in quarter with addition of latest technology aircraft with longer lease duration
• 79 aircraft at quarter-end, up from 70 last quarter
• NOK 485m bond repurchase in Feb. at 72.50% – optimising capital structure at attractive price

Cash flow – strong cash position

The way forward

Taking lead role for sustainable aviation

Partners up with Norsk e-Fuel

• Landmark partnership to build world's first full scale e-fuel plant in Mosjøen, Norway
• Over NOK 50 million investment for minority equity stake
• Sustainable aviation fuels (SAF) key to reach 45% emissions target
• Covering 20% of SAF need until 2030

Strong ESG commitment

• Committed to reducing carbon efficiency by 45% by 2030
• Fleet renewal phasing in latest technology modern fuelefficient aircraft
• Reducing in-flight waste through recycling, pre-order meals and environmentally friendly packaging
• Pilots utilising latest mobile technology to reduce fuel burn – est. reduction of 17,000 tonnes in 2022 via SkyBreathe
• UNICEF long-standing partnership incl. "Fill a Plane" initiative
• Transparent reporting on ESG initiatives – additional information in recently published annual report

Attracting business travellers with robust operations

• From corporates we speak to:
• – 25% or higher reduction in business travel post 2019 – 50% or higher share of travel with Norwegian
• Corp. revenue exceeding Q1 2019 despite capacity reduction
• Close to zero cancellations and strong on-time performance – Q1 regularity 99.4% in Q1
• Onboarding new large corporates and SMEs – close to 900 new corporates signed up in Q1

Capturing Corporate Market Share Relaunching Norwegian Reward

• attractive for business travellers
• strong member growth since launch
• Freddie Awards loyalty programme of the year

Summary

Record summer ahead

• Attractive route network with close to 300 routes
• Strong bookings at improving fare level
• Secured fleet additions in spite of delivery delays
• fleet increasing to 81 aircraft
• serving passengers solely with Norwegian operated flights

Strong brand loyalty and robust operations

• Leading operations vs. peers most punctual Nordic airline
• Relaunching 'Norwegian Reward' with new benefits
• Widerøe co-operation with seamless travel across whole network

Well positioned for 2023 and beyond

• Costs impacted by currency and cost inflation, fuel price trending lower
• Targeting for 2023 (vs. last year):
• capacity (ASK) 32,500 million kilometres up 19%
• improved unit revenue
• up to 5% reduction in CASK ex. fuel
• Hedged 40% of fuel consumption for current year
• Fleet renewal and lead position for sustainable aviation fuels (SAF)

Book tickets at Norwegian.com

Appendix

20 largest shareholders as of 31 March 2023*

	Name	Country	Number of shares	Per cent
1	Geveran Trading Company, Ltd.	Cyprus	114,800,512	12.3 %
2	Sundt AS	Norway	96,843,552	10.4 %
3	Folketrygdfondet	Norway	40,573,605	4.4 %
4	Silver Point Capital, L.P.	United States	39,745,000	4.3 %
5	Ballyfin Aviation Limited	Ireland	31,472,703	3.4 %
6	Nordnet Bank AB.	Norway	30,842,474	3.3 %
7	Handelsbanken Kapitalförvaltning AB	Sweden	23,959,919	2.6 %
8	Avanza Bank AB	Sweden	23,613,090	2.5 %
9	JPMorgan Chase Bank GTS	United Kingdom	17,696,935	1.9 %
10	Keskinäinen eläkevakuutusyhtiö Varma	Finland	15,500,000	1.7 %
11	Contrarian Capital Management, LLC	United States	14,408,189	1.5 %
12	DNB Asset Management AS	Norway	13,860,006	1.5 %
13	Goldman Sachs Asset Management, L.P.	United States	12,454,618	1.3 %
14	BlackRock Institutional Trust Company, N.A.	United States	10,739,325	1.2 %
15	BofA Global Research (UK)	United Kingdom	9,432,026	1.0 %
16	Barclays Capital	United Kingdom	9,084,167	1.0 %
17	Svelland Capital (UK) Ltd	United Kingdom	9,067,055	1.0 %
18	Swedbank AB	Sweden	8,414,142	0.9 %
19	Brumm AS	Norway	8,285,480	0.9 %
20	SEB Enskilda Equities	Sweden	7,442,903	0.8 %
	Top 20 shareholders		538,235,701	57.8 %
	Other shareholders		393,351,482	42.2 %
	Total number of shares		931,587,183	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.

Disclaimer

Certain statements included in this presentation contain forward-looking statements, such as statements of future expectations. Although the statements provided are based on the best reasonable assumptions of management of Norwegian Air Shuttle ASA ("Norwegian"), the statements are based on a number of assumptions and forecasts that, by their nature, involve risks and uncertainties. No assurances can be given that the expectations provided in the forwardlooking statements will prove to be correct.

Various factors may cause the actual results of Norwegian to differ materially from those projected in forward-looking statements. These factors include, but are not limited to, (a) general economic conditions, (b) changes in the competitive climate, (c) fluctuations in the price of jet fuel, (d) fluctuations in currency exchange rates, (e) industrial actions, (f) contingencies and legal claims, and (g) legislative, regulatory and political factors.

Norwegian cautions readers of this presentation not to place undue reliance on the forward-looking statements in making an investment decision. Norwegian assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.