Norwegian Air Shuttle ASA

Earnings Release • May 8, 2025

Presentation of first quarter 2025

8 May 2025

Q1 operating result (EBIT) neg. NOK 611 million

• seasonally weakest quarter of year – negative Easter effect vs. last year
• positive impact from purchase of leased aircraft
  • unlocking significant recurring savings
• Norwegian unit cost ex. fuel in NOK down 11% YoY
• Widerøe impacted by Q1 operational challenges

Strong balance sheet

• liquidity position NOK 10.5 billion
  • purchase of 10 aircraft initially financed with cash
• NIBD 5.1bn down 0.7bn vs. last year
• NOK 860m current dividend fund
  • additional NOK 0.60 per share proposal for 2024 for dividend or buy-back

Preferred travel partner – direct, not connect

• 350 Norwegian routes on sale across attractive network
  • over 100 Widerøe routes
• operational excellence with few cancellations
  • top-tier performance in March and April
• strong customer satisfaction vs. peers
  • Net Promoter Score (NPS) above 50
  • Norwegian Reward with four Freddie awards
• most direct routes from Nordics to rest of Europe
• capturing corporate market share
• Spenn expanding together with Reitan Retail

Securing attractive aircraft for Norwegian

• purchase of 10 leased Boeing 737-800
  • non-recurring gain NOK 589m
  • recurring savings of NOK 200m p.a.
• Boeing ramping up production
  • three 737 MAX-8 aircraft delivered in Q1
  • next aircraft due in coming weeks

Well-positioned for 2025

• 2025 Norwegian growth forecasted at 3% YoY
• Program X to strengthen profitability – strong cost focus and capitalising on previous capacity growth
  • harvesting on investments from 2024
• jet fuel and FX moved favourably in Q1
  • hedged 70% of fuel for current year
  • Norwegian adding FX hedges for USD needs

Number of passengers in first quarter (group) 5.1 million (+7% YoY)

Q1 operating performance (Norwegian)

• Regularity operational performance improving through Q1 and into April
  • Norwegian (DY) among most punctual European airlines in March (Cirium)

Norwegian ramp-up from March onwards

2,203 1,530 1,475 1,272 1,293 1,587 1,932 0.93 0.80 0.87 0.80 0.80 0.79 0.92 0.50 0.60 0.70 0.80 0.90 1.00 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 Passengers (1,000) Passengers last year Load Factor Yield – total revenue 86.8% 82.4% 82.2% 82.0% 84.7% 81.0% 83.6%

Norwegian Traffic – PAX per month, load factor and yield 90.0%

0

500

65.0%

1,000

70.0%

1,500

2,000

75.0%

2,500

80.0%

3,000

3,500

85.0%

Q1 traffic impacted by Easter timing

• capacity (ASK) up 16% YoY – PAX 4.2m – up 5% YoY
• more longer sectors avg. stage length +10% – load down 2 p.p. YoY and reduced unit revenue

Successful Easter travel period

• close to zero cancellations during peak travel period
• April unit revenue +18% YoY, positive Easter timing effect

Capacity growth slowing from April onwards

• Q2 growth in ASK projected at 1%

Widerøe – continuous passenger growth

Widerøe Traffic – PAX per month and load factor

0

100

200

50.0%

300

60.0%

55.0%

400

70.0%

65.0%

500

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

Q1 traffic performance

• 911,000 passengers up 17% YoY
• load factor increased to 70% – improving load on both commercial and PSO networks
• Norwegian interlining traffic flows up 46% YoY

Challenging operating environment in Q1

• elevated cost for personnel, handling and technical in quarter – winter weather storms early in quarter

Strong April traffic

• load factor up 8 p.p. and passengers up 6% YoY
• record daily passengers on 22 April, then again on 30 April

Norwegian – robust bookings into summer season

7-day rolling sales figures (PAX) –All markets1)

Stable booking momentum

• diversified bookings across destinations and travel month

Capacity growth reducing from April onwards

• low single-digit percentage growth YoY
• harvesting from 2024 investments in network growth

Booked revenue – Travel May to August2)

Booked load ahead vs. last year

• 7% more tickets sold vs. last year at corresponding date for May to August travel
• no signs of macro uncertainty in current bookings

Yield on sold tickets stable vs. last year

• booked yield for May-Aug travel stable vs. corresponding date last year
• June bookings performing very well

- Reitan Retail new partner & co-owner

Leading retailer Reitan joins Spenn

• brands incl. REMA 1000, Narvesen, 7-11 and Uno-X – serving c. 2 million customers every day
• Spenn to be equally owned by Reitan, Strawberry and Norwegian – subject regulatory approval, expected during summer

Spenn – the loyalty currency combining simplicity & choice

• multi-partner loyalty currency launched in November
• now 100 partners across Nordics

1.2 million Spenn earners

8.9 million transactions

1.6 billion Spenn earned

Quarterly financial highlights

Revenue

• group revenue NOK 6.6 billion up 7% vs. last year – Widerøe contribution NOK 1.8bn
• Norwegian capacity (ASK) up 16%
  • total unit revenue down 11% YoY following 10% increase in avg. stage length and Easter timing
  • ancillary revenue NOK 190 per pax, up 10% YoY

Quarterly result

• group EBIT negative NOK 611 million in seasonally weakest quarter
  • Norwegian EBIT neg. NOK 568m
  • Widerøe EBIT neg. NOK 43m
• purchase of leased aircraft with positive impact – NOK 589m non-recurring gain in quarter
• strengthening NOK against USD gives positive results effect – other losses/gains NOK 227m due to translation of USD denominated operating liabilities
• Norwegian unit cost ex. fuel NOK 0.54 – down 11% YoY – CASK NOK 0.08 lower in quarter due to gain from aircraft purchase

Balance sheet

• strong liquidity position NOK 10.5 billion
  • cash lower QoQ due to initial financing of aircraft purchase with available cash
  • in process of securing long-term financing for all aircraft
• NIBD 5.1 billion down 0.7bn vs. last year

Revenues – impacted by Easter timing

Quarterly total operating revenue (NOK million)

Capacity, and PAX increase in quarter

• Norwegian capacity (ASK) up 16% vs. Q1 2024
• 10% longer avg. sector – negative for yield

Easter timing effect

• Easter falling in Q2 this year vs. in Q1 last year – impacting load and yield adversely
  • effect to be reversed in Q2

Widerøe contributing positively

• Growth in passengers 17%
• 27% share of group operating revenue

Operating profit (EBIT) – countering cost pressures

Easter timing effect

• revenue effect estimated in excess of NOK 400m

Cost inflation countered by scale and initiatives

• significant cost increase for ATC and airport charges following tariff changes at year-end
• unit cost excl. fuel down 11% YoY – positive impact from aircraft purchase in quarter

Non-recurring effects for FX and depreciation

• other losses/gains gain 227 million in Q1 due to FX revaluation
• purchase of 10 Boeing 737-800 aircraft previously on lease – gain of NOK 589 million reflecting price achieved and reduction of existing lease liabilities
  • recurring savings of NOK 200m per year

Widerøe results negatively impacted in Q1

• winter weather and increased maintenance activity
  • impacting costs for personnel, handling and technical

Group P&L

NOK million	Q1 2025	Q1 2024	Chng. (YoY)
Passenger revenue	5,473	5,126
Ancillary passenger revenue	829	731
Other revenue	280	288
Total operating revenue	6,582	6,144	+7%	higher production offset by Easter timing
Personnel expenses	2,124	1,774	+20%	additional flying FTEs with 16% ASK growth and wage inflation
Aviation fuel	1,968	1,670		NOK 80m increase with reduced ETS allowances and increased SAF mandate
Airport and ATC charges	823	610	+35%	increased ATC and airport charges from year-end
Handling charges	572	487
Technical maintenance expenses	340	281
Other operating expenses	921	896
EBITDAR excl other losses/(gains)	-160	427
Other losses/(gains)	-227	126	-353	balance sheet translation effects from NOK strengthening
EBITDAR	67	301
Aircraft lease, depreciation and amortization	672	1,064	-392	NOK 589m gain from aircraft purchase
Operating profit (EBIT)	-605	-763	158
Net financial items	-139	-141
Profit before tax (EBT)	-756	-903
Income tax expense (income)	0	0
Net profit (loss)	-757	-904	147

Robust balance sheet

NOK million	31 Mar.	31 Dec.	Chng.
Intangible assets	2025 2,421	2024 2,429	(QoQ)
Tangible assets	21,095	19,403	+1,692	purchase of leased aircraft
Total non-current assets	23,980	22,346		and three aircraft deliveries
Receivables	4,295	3,872
Financial investments	1,035	1,012
Cash and cash equivalents	9,421	9,868	-448	aircraft purchase initially
Total current assets	15,274	15,254		financed with cash
Assets	39,254	37,600
Equity	6,150	7,241
Non-current debt	12,013	12,249
Other non-current liabilities	3,814	4,985
Total non-current liabilities	15,828	17,234
Air traffic settlement liabilities	8,312	4,143	101%	bookings higher with season,
Current debt	3,523	3,829		but also up 12% YoY
Other current liabilities	5,441	5,154
Total current liabilities	17,276	13,125
Liabilities	33,103	30,359
Equity and liabilities	39,254	37,600
Equity ratio (%)	15.7	19.3	-3.6 p.p.	up 1.4 p.p. YoY

Net interest-bearing debt
NOK million	31 Mar. 2025	31 Dec. 2024	Chng. (QoQ)
Cash & equiv.	9,421	9,868	-448
Financial Investments	1,035	1,012
Aircraft financing	12,471	13,025	-554
Other IB debt	185	239
Retained Claims Bonds	2,880	2,814
NIBD	5,080	5,197	-117

• NIBD impacted by purchase of 10 aircraft on lease and three additional 737 MAX-8 delivered from Boeing – countered by stronger NOK, +7% vs. USD in Q1
• cash lower with initial financing of aircraft purchase – in process to secure long-term financing for all 10 aircraft
• 89 aircraft in Norwegian and 51 at Widerøe – three new aircraft delivered from Boeing to Norwegian
• dividend fund NOK 860 million at quarter-end – additional NOK 0.60 per share proposed to May AGM for dividend or buy-back
  • distribution bj y' b

Cash flow in quarter

Quarterly cash flow (NOK million)

Bookings higher with seasonality

• working capital effect with normalised and low holdback

Excess liquidity

• placed on deposits and money-market funds
• cash balance not inc. NOK 1bn in fixed-income fund investments
• rate-of-return above 5%

Boeing prepayment – significant portion already paid in

• prepayment to date NOK 3.3bn
• 2025 prepayments below NOK 100m (excl. options)

The way forward

Fleet secured for summer 2025 season

• three new aircraft delivered to Norwegian in Q1 – in 2024, Boeing delivered only two aircraft to Norwegian
• fourth aircraft is expected in May
• order for 50 Boeing 737 MAX 8 aircraft
  • first aircraft due in Q4 2025
  • option for additional 30 aircraft
  • attractive pricing

Utilising balance sheet for smart fleet decisions

• purchase of 10 Boeing 737-800 aircraft previously on lease to airline – Q1 gain reflecting pricing achieved and reduction in existing lease liabilities
  • NOK 200 million in annual savings
• initially financed with available cash – financing for all 10 aircraft expected to close in coming months

Aircraft deliveries and trade tensions

• competitors also incurring delays from OEMs – delivery delays net positive for supply/demand balance and yield environment
• trade tensions between US and key trading partners, incl. EU - no change in tariff for aircraft deliveries to date, but increased uncertainty
  • closely monitoring situation and evaluating recourse options

Boeing with Q1 delivery ramp-up Norwegian fleet estimate until 2026

Program X delivering long-term profitability improvements

Examples of what we are doing going forward

Commercial

• new distribution platform
• interlining & partnerships

Operations

• asset performance
• fuel consumption savings
• crew efficiency

Cost reductions

• reduction in overhead cost
• efficiency via automation

Outlook & summary

Outlook

\$

	FY 2025	Q2	Q3	Q4
Capacity growth1)	c. 3%	c. 1%	c. 2%	c. -3%

FY 2025

Leading airline group in Nordics

• seamless interlining with Widerøe
  • capturing key commercial synergies from 2025
• operational excellence with few cancellations – key to continue growing market share for corporate travel
• Spenn – loyalty platform with Retain Retail joining
• strong ESG commitment
  • committed to reduce carbon emissions

First quarter performance

• strong capacity growth and unfavourable Easter timing
• gains from aircraft purchase and NOK strenghtening
• unit cost down 11% YoY, supported by aircraft purchase
• liquidity position NOK 10.5 billion – in process of securing long-term financing for 10 aircraft

Well-positioned for 2025

• 2025 growth impacted by aircraft delays
  • forecasting 3% growth (ASK) for full-year
  • delays are industry-wide, reducing aircraft supply in market
  • harvesting from 2024 investments in network growth

• Boeing ramping up production

• three aircraft delivered in Q1
• fleet well positioned for summer production
• close monitoring of current trade and tariff situation
• Program X to drive sustainable profitability
  • delivering on cost, revenue and operational initiatives
  • capitalising on previous investments

Disclaimer

Certain statements included in this presentation contain forward-looking statements, such as statements of future expectations. Although the statements b b b N w "N w " s 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.