SAS — Capital/Financing Update 2020

Jul 22, 2020

SAS defers interest payment on its MSEK 1,500 subordinated perpetual capital securities

SAS defers interest payment on its MSEK 1,500 subordinated perpetual capital securities

Not for release, publication or distribution, directly or indirectly, in or into

the United States, Canada, Japan, Australia or any other jurisdiction where such

action would be unlawful.

As previously announced by SAS AB ("SAS" or the "Company"), the COVID-19

pandemic and the associated travel restrictions have created a global crisis for

the aviation industry. In this light the Board has decided on a recapitalization

plan (the "Recapitalization Plan"). The realisation of the Recapitalization Plan

is still subject to certain conditions.

Given the uncertainties, the Company will continue do to everything it can to

preserve cash. As a result, the Company has today elected to defer the interest

payment due 23 July 2020 on its MSEK 1,500 subordinated perpetual floating rate

capital securities (ISIN SE0012193910) (the "Capital Securities").

The deferral of interest payment is made in accordance with the terms and

conditions for the Capital Securities dated 17 October 2019 (the "Terms and

Conditions").

The Company will however pay the deferred interest in connection with a

conversion of the Capital Securities into common shares or otherwise in

accordance with the Terms and Conditions.

For further information, please contact:

SAS press office, +46 8 797 2944

Michel Fischier, VP Investor Relations, +46 70 997 0673

This is information that SAS AB is obliged to disclose pursuant to the EU Market

Abuse Regulation. The information was submitted by Michel Fischier for

publication on 22 July 2020 at 11:45 a.m. CEST.

IMPORTANT INFORMATION

This press release and the information herein is not for publication, release or

distribution, in whole or in part, directly or indirectly, in or into the United

States, Australia, Canada, Japan or South Africa or any other state or

jurisdiction in which publication, release or distribution would be unlawful or

where such action would require additional prospectuses, filings or other

measures in addition to those required under Swedish law.

The press release is for informational purposes only and does not constitute an

offer to sell or issue, or the solicitation of an offer to buy or acquire, or

subscribe for, any of the securities mentioned herein (collectively, the

"Securities") or any other financial instruments in SAS. Any offer in respect of

any securities in connection with the rights issue will only be made through the

prospectus that SAS expects to publish on or about 4 September 2020. The offers

under the recapitalization plan are not made to, and application forms will not

be approved from, subscribers (including shareholders), or persons acting on

behalf of subscribers, in any jurisdiction where applications for such

subscription would contravene applicable laws or regulations, or would require

additional prospectuses, filings, or other measures in addition to those

required under Swedish law. Measures in violation of the restrictions may

constitute a breach of relevant securities laws.

None of the Securities have been or will be registered under the United States

Securities Act of 1933, as amended (the "Securities Act"), or the securities

laws of any state or other jurisdiction in the United States, and may not be

offered, pledged, sold, delivered or otherwise transferred, directly or

indirectly, except pursuant to an exemption from, or in a transaction not

subject to, the registration requirements of the Securities Act and in

compliance with applicable other securities laws. There will not be any public

offering of any of the Securities in the United States.

In the United Kingdom, this press release is directed only at, and communicated

only to, persons who are qualified investors within the meaning of article 2(e)

of the Prospectus Regulation (2017/1129) who are (i) persons who fall within the

definition of "investment professional" in article 19(5) of the Financial

Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the

"Order"), or (ii) persons who fall within article 49(2)(a) to (d) of the Order,

or (iii) persons to whom it may otherwise be lawfully communicated (all such

persons referred to in (i), (ii) and (iii) above together being referred to as

"Relevant Persons"). This press release must not be acted on or relied on by

persons in the UK who are not Relevant Persons.

This press release contains forward-looking statements that reflect SAS' current

view of future events as well as financial and operational development. Words

such as "intend", "assess", "expect", "may", "plan", "estimate" and other

expressions involving indications or predictions regarding future development or

trends, not based on historical facts, identify forward-looking statements and

reflect SAS' beliefs and expectations and involve a number of risks,

uncertainties and assumptions which could cause actual events and performance to

differ materially from any expected future events or performance expressed or

implied by the forward-looking statement. The information contained in this

press release is subject to change without notice and, except as required by

applicable law, SAS does not assume any responsibility or obligation to update

publicly or review any of the forward-looking statements contained in it and nor

does it intend to. You should not place undue reliance on forward-looking

statements, which speak only as of the date of this press release. As a result

of these risks, uncertainties and assumptions, you should not place undue

reliance on these forward-looking statements as a prediction of actual future

events or otherwise.