Norwegian Air Shuttle ASA

Investor Presentation • Feb 16, 2023

Presentation of fourth quarter 2022

16 February 2023

Highlights

Ramping up for busy travel season

• LOI for six 737 MAX 8 aircraft with ALC
• strong bookings from New Year's campaign and beyond
• 81 aircraft fleet for summer operations

2022 operating result (EBIT) NOK 1,502 million – Q4 EBIT negative NOK 39 million in low-season – robust cash position – liquidity NOK 7.8 billion

• Top-ranking airline in 2022
• Cirium names Norwegian most punctual Nordic airline
• Grand Travel Awards (GTA) European airline of the year

Strong ESG commitment

• Carbon Disclosure Project (CDP) awards Norwegian with B- score
• received top mark for emissions reduction initiatives

Fleet flexibility – reducing winter capacity

Traffic – PAX per month, load factor and yield

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• Seasonally lower demand – softening demand in quieter winter period
• Utilising fleet flexibility to minimise cash-burn in winter
  • PBH agreements on 19 aircraft until end of March
  • capacity reduced 20-30%

Stable load and yields

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100 .0%

Strong booking momentum

Successful New Year's sales campaign

• Diversified bookings across travels months for domestic, beach and city destinations
• Over 1 million tickets sold in 14 days
• Campaign fares significantly above previous years

Booking momentum continuing after sale

• Strong booking figures recorded after campaign end
• More than 300 routes on sale across attractive network

Preferred travel partner

• Brand most loved and trusted airline in Norway*
• Widerøe co-operation seamless travel across networks
• Market-leading operations Cirium most punctual airline – 2022 regularity at 99.4%

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

New Year's sales campaign – NOK average fare

*Norwegian Brand Tracker Survey managed by Kantar for Q4 2022

*Travel anytime, company data as of 14 February 2023

Securing modern fleet for 2023 and beyond

Securing fleet for summer ramp-up

• Signed LOI with ALC for six 737 MAX 8 due before summer 2023
• Counteracting Boeing delays for aircraft originally due this spring
• Summer 2023 fleet increasing to 81 aircraft

Replacing older generation aircraft

• Redelivery of leased 737 NGs
• Replaced by fuel-efficient aircraft with significant cost savings – above 14% reduced fuel-burn
• Serving customers latest technology 40% noise reduction

Aircraft order delivery from 2025

• Order for 50 737 MAX 8 aircraft delivery 2025-2028
• Option for additional 30 aircraft delivery 2028-2030
• Attractive pricing and inflation protection
• NOK 2.9 billion PDP paid-in
• Significant share to be owned reducing overall financing cost

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Financial results for Q4 2022

Quarterly financial highlights

Profits

• Earnings EBT negative NOK 80 million
• Result impacted by expiration of CashPoints
• CASK ex. fuel NOK 0.47 in quarter

EBITDAR (NOK million)

Balance sheet Cash & equiv. Strong liquidity position in winter season Equity ratio 18.5% NOK 485 million repurchase of bonds in February – optimising capital structure

Q4 earnings – minimising losses in low-season

NOK million	Q4 2022	Q3 2022	Chng. (QoQ)		Full year 2022	Full year 2021
Passenger revenue	3,779	5,936			15,198	3,912
Ancillary passenger revenue	697	1,047		Reduced production in winter	2,870	941
Other revenue	493	133			802	215
Total operating revenue	4,969	7,116	-30%		18,869	5,068
Personnel expenses	782	687			2,885	2,085
Aviation fuel	1,802	2,598	-31%	Fuel down from elevated levels	7,371	1,414
Airport and ATC charges	557	682			2,096	820
Handling charges	448	562			1,669	757
Technical maintenance expenses	467	503		Weak NOK impacting cost lines	1,666	855
Other operating expenses	563	515			1,936	1,390
EBITDAR excl other losses/(gains)	349	1,569			1,247	-2,254
Other losses/(gains)	-61	43			-7	-737
EBITDAR	410	1,526	-73%		1,254	-1,516
Aircraft lease, depreciation and amortization	449	494			1,851	1,270
Reversal of impairment loss re. prepayment on aircraft	0	0			-2,099	0
Operating profit (EBIT)	-39	1,032			1,502	-2,786
Net financial items	-41	-122			-456	4,662
Profit before tax (EBT)	-80	910			1,046	1,876

Scale and cost initiatives – macro headwinds

• Fuel cost remain elevated due to high fuel price and strong USD
  • hedged 25% of 2023 consumption at \$880/mt
  • hedge accounting for fuel hedges
• Personnel higher due to reduced scale – sound collaboration with unions
• Airport & ATC and handling charges elevated with currency headwind
• Technical headwind from currency and inflation
• Other OPEX partly higher due to de-icing
• Lease expenses benefiting from increasing scale – headwind from strong USD

Robust balance sheet through winter season

NOK million	31 Dec.	30 Sep.	Chng.
Intangible assets	2022 2,090	2022 2,092	(QoQ)			Net interest bearing debt
Tangible assets	10,078	11,258		Ccy revaluation of leases
Total non-current assets	12,625	13,735	-8%		NOK million	31 Dec.	30 Sep.	Chng.
Receivables	2,185	2,725		Holdback (%) reduced to 39%		2022	2022	(QoQ)
Cash and cash equivalents	7,759	8,190			Cash & equiv.	7,759	8,190	-431
Total current assets	10,045	11,106			Aircraft financing	6,640	7,480	-840
Assets	22,670	24,841	-9%		NAS 13	569	572
					Other IB debt	137	135
Equity	4,203	4,859			Retained Claims Bonds	2,739	2,676
Non-current debt	8,696	9,409			NIBD	2,326	2,673	-346
Other non-current liabilities	2,160	2,127
Total non-current liabilities	10,857	11,536			NIBD decrease	in quarter with lease revaluations
Air traffic settlement liabilities	2,549	3,102			70 aircraft per year-end, up one from previous quarter
Current debt	1,389	1,454
Other current liabilities	3,672	3,890			–	NOK 485m bond repurchase in Feb. @ 72.50 optimising capital structure at attractive price
Total current liabilities	7,610	8,446	-10%
Liabilities	18,466	19,982
Equity and liabilities	22,670	24,841
Equity ratio (%)	18.5	19.6

Net interest bearing debt
NOK million	31 Dec. 2022	30 Sep. 2022	Chng. (QoQ)
Cash & equiv.	7,759	8,190	-431
Aircraft financing NAS 13 Other IB debt Retained Claims Bonds	6,640 569 137 2,739	7,480 572 135 2,676	-840
NIBD	2,326	2,673	-346

NIBD decrease in quarter with lease revaluations

Cash flow – strong cash position

• Strong liquidity position going through winter season
• Holdback down to 39% – above 100% at year-end 2021
• Limited aircraft prepayments to Boeing in 2023 and 2024 – NOK 825 million cash paid in 2022
• 2022 full-year CF NOK 64 million

The way forward

Committed to sustainable aviation future

Reducing in-flight waste

• Appetizing pre-order meals with zero food waste
• Recycling of bottles and cans
• Environmentally friendly packaging and utensils
• Project to reduce food waste across network

Sustainable operations

• Pilots utilising latest mobile technology to reduce fuel burn
• Promoting Sustainable Aviation Fuel (SAF) – collaborating with producers and policy makers
• Fleet renewal modern fuel-efficient aircraft entering fleet

Transparent ESG commitment

• Committed to reducing carbon efficiency by 45% by 2030
• Carbon Disclosure Project (CDP) B– score – top mark for emissions reduction initiatives
• Transparent reporting on ESG initiatives

Attracting new business travellers

Strong performance on corporate travel

• 2022 corporate revenue 90% of 2019
• Onboarding more corporates through attractive product offering and campaigns
• Few cancellations with regularity at 99.4%
• Strong on-time record

Preferred travel partner

• Significant shift in corporate share of wallet
• Large corporates state "over 50% of travel with Norwegian"
• Brand most loved and trusted airline across Norway
• Widerøe co-operation with seamless travel across networks – business travellers significant share
• Next level 'Frequent Flyer' offering…

Corporate share of ticket revenue

Improvements to Norwegian Reward

Adding new member benefits to the program…

We have listened to our members:

+ The more you fly, the more benefits you can select New top level for our most frequent travelers Unlocking all Benefits New Priority Benefits

• NEW benefit for all to select overhead cabin bag
• Unlock all benefits and new priority benefits at 32 flights – increasing value to our most frequent flyers
• Improving awareness for members by simplifying benefits

… and expanding the program beyond airline

Ambition to build the best loyalty program in the Nordics, together with partners

• Norwegian Reward to expand and grow beyond airline – becoming part of everyday life and holidays for people
• Opportunity to earn and use our digital CashPoint currency – more often for more
• New digital products and services – increased value for members, partners and suppliers
• Utilising data, analytics and technology to make the ecosystem relevant, accessible and engaging for everyone

Summary

Navigating through the winter

• Utilising fleet flexibility up to 30% capacity reduction
• Strong liquidity position NOK 7.8bn in cash
• Minimising Q1 cash-burn through cost and efficiency focus

Well positioned for busy 2023

• Encouraging bookings at improved fare level
• Six additional 737 MAX 8 aircraft from ALC – 81 aircraft through peak summer
• Targeting for 2023 (vs. last year): – capacity (ASK) 34,000 million kilometres – up 24%
  • improved unit revenue
  • 5-10% reduction in CASK ex. fuel

Strong brand loyalty and robust operations

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

Book tickets at Norwegian.com

Appendix

20 largest shareholders as of 31 December 2022*

	Name	Country	Number of shares	Per cent
1	Geveran Trading Company, Ltd.	Cyprus	133,430,512	14.3 %
2	Sundt AS	Norway	106,103,198	11.4 %
3	Folketrygdfondet	Norway	46,651,798	5.0 %
4	Ballyfin Aviation Limited	Ireland	31,472,703	3.4 %
5	Silver Point Capital, L.P.	United States	30,478,125	3.3 %
6	Nordnet Bank AB.	Norway	30,070,165	3.2 %
7	Keskinäinen eläkevakuutusyhtiö Varma	Finland	27,500,000	3.0 %
8	Handelsbanken Kapitalförvaltning AB	Sweden	27,313,039	2.9 %
9	Avanza Bank AB	Sweden	24,680,156	2.7 %
10	Contrarian Capital Management, LLC	United States	17,708,189	1.9 %
11	DNB Asset Management AS	Norway	16,151,037	1.7 %
12	Morgan Stanley & Co. International Plc	United Kingdom	12,663,237	1.4 %
13	KLP Fondsforvaltning AS	Norway	12,493,863	1.3 %
14	BlackRock Institutional Trust Company, N.A.	United States	10,635,493	1.1 %
15	Svelland Capital (UK) Ltd	United Kingdom	9,427,617	1.0 %
16	Swedbank AB	Sweden	9,390,819	1.0 %
17	Nordea Funds Oy	Finland	9,339,301	1.0 %
18	BofA Global Research (UK)	United Kingdom	8,748,839	0.9 %
19	Brumm AS	Norway	8,285,480	0.9 %
20	HSBC Trinkaus & Burkhardt AG	Germany	7,107,742	0.8 %
	Top 20 shareholders		579,651,313	62.3 %
	Other shareholders		350,338,426	37.7 %
	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.

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.