SAS — Earnings Release 2021

Nov 30, 2021

Q4 2021 Year-end results burdened by the pandemic

Q4 2021 Year-end results burdened by the pandemic

"Demand and ticket sales are increasing, however, uncertainties continue to

affect the ramp-up"

August 2021-October 2021

· Revenue: MSEK 5,762 (3,035)

· Income before tax (EBT): MSEK -945 (-3,252)

· Income before tax and items affecting comparability: MSEK -911 (-3,024)

· Net income for the period: MSEK -744 (-2,566)

· Earnings per common share: SEK -0.12 (-4.44)

SIGNIFICANT EVENTS DURING THE QUARTER

· During the quarter, the number of passengers increased and more tickets were

sold

· Operations were scaled up to meet demand while more destinations opened up

· SAS signed an agreement for the pre-delivery payment financing of about USD

100 million, covering ten A320neo aircraft with deliveries into Q2 FY2023

SIGNIFICANT EVENTS AFTER THE QUARTER

· SAS established a partnership with Vattenfall, Shell and LanzaTech to

investigate large-scale production of synthetic sustainable aviation fuel

NOVEMBER 2020-OCTOBER 2021

· Revenue: MSEK 13,958 (20,513)

· Income before tax (EBT): MSEK -6,525 (-10,097)

· Income before tax and items affecting comparability: MSEK -6,382 (-8,565)

· Net income for the period: MSEK -6,523 (-9,232)

· Earnings per common share: SEK -0.94 (-21.45)

COMMENTS BY THE CEO

It is encouraging to note the continued positive trend from the summer, with

demand and ticket sales rising. However, 2021 was one of the most challenging

years in the history of the aviation industry and the future remains hard to

predict, primarily due to challenges connected to the ongoing pandemic.

Improved quarterly results still affected by the ongoing pandemic

Customer demand continued to increase through the year's last quarter and as a

result, our capacity increased 43% compared with the third quarter. Passengers

flying with SAS increased 73% compared to the last quarter and the flown load

factor reached approximately 60%, an increase of 7 percentage points compared

with the earlier quarter. Still, uncertainties remain regarding the development

of the COVID-19 pandemic and the transformation of SAS has to continue - to

adapt to the new market. Earnings before tax ended at negative SEK 0.9 billion,

which is an improvement of SEK 0.5 billion compared with last quarter, or a SEK

2.3 billion improvement year-on-year.

Total revenue increased 45% compared with the third quarter, an improvement of

approximately SEK 2.7 billion compared with last year, but still 57% below the

fourth quarter in 2019, which was unaffected by COVID-19.

Adapting SAS to a new market reality

Cost reductions across all of SAS remain in focus to optimize our competitive

capability. Total operating expenses during the quarter ended at SEK 6.2

­billion and total operating revenue landed at SEK 5.8 billion. Market dynamics

have changed substantially during the pandemic and affect the entire airline

industry. This requires SAS to take the next steps in the development of our

operating model to ensure SAS is cost efficient and competitive. We are starting

operation of SAS Connect out of Copenhagen in early 2022 and are evaluating

possibilities to expand SAS Connect and to open bases in Stockholm and Oslo

during the year.

We are also evaluating fleet options to handle thinner flows of passengers in

our network - to ensure that we can offer competitive advantages, an attractive

timetable for customers and lower the total environmental footprint.

We have now had a positive operating cash flow during two consecutive quarters.

The work to preserve liquidity continues and at the end of the quarter, the cash

position was at SEK 4.3 billion, which is similar to the cash position of SEK

4.4 billion at the end of Q3. During the quarter, SAS signed a predelivery

payment financing of approximately USD 100 million that will cover financing of

ten A320neo aircraft with deliveries into Q2 2023. The credit line that was

established during Q3 with the major shareholders, is still fully undrawn, and

provides a solid liquidity buffer during the pandemic recovery phase, should it

be needed.

Developing our customer offering and re-opening routes

When restrictions and demand allow, we will open more routes, and this winter we

are flying more than 150 routes to 90 destinations. SAS has to remain agile to

be able to quickly respond to changes in customer demand, which will be one of

the success factors for airlines going forward. As a direct result of the US

opening up for travelers, we have increased the number of flights to and from

the US. SAS operates new, fuel-efficient A350 Airbus aircraft to the US, which

have 30% lower fuel consumption compared to the aircraft they are replacing.

We also continue the development of our customer offering through the determined

work with digitalization and personalization. For example, by expanding our SAS

Go Light on our total network, where customers can choose competitively priced

tickets and then add travel extras such as bags and seat selection.

SAS is a global leader in sustainable aviation. Reducing climate-impacting

carbon emissions and striving to increase the supply and use of sustainable

aviation fuels (SAF) are important components of that ambition. We are therefore

proud to be part of a collaboration with Vattenfall, Shell and Lanzatech, to

investigate the production of the world's first synthetic sustainable aviation

fuel. When full production is up and running, it could provide SAS with up to

25% of its requirement for sustainable aviation fuel in the 2030s.

Looking ahead

We remain cautious due to prevailing uncertainties, but see that underlying

demand is healthy once restrictions are lifted, both for business and leisure

travel. Short-term effect of recent developments needs yet to be fully analyzed,

however we remain optimistic for the peak periods ahead of us. During the

pandemic, we see that demand for travel has changed and SAS expects a greater

number of leisure travelers and even more intense competition in the future.

I am grateful for all the hard work that all my colleagues at SAS are carrying

out during our transformation, to ensure our performance remains at a high level

and to always take care of our customers in the best possible way. Together with

dedicated colleagues, a strong brand and operational excellence, we are working

our way through these challenging times.

We welcome you on board our aircraft in one of Europe's most modern fleets!

Anko van der Werff,

President and CEO

Stockholm, November 30, 2021

This information is information that SAS AB is obliged to disclose pursuant to

the EU Market Abuse Regulation. The information was submitted by Louise

Bergström for publication on November 30, 2021 at 8:00 a.m. CET.