SAS — Earnings Release 2022

Feb 22, 2022

SAS FORWARD: a new plan as first quarter results are released

SAS FORWARD: a new plan as first quarter results are released

For many years SAS has been burdened by an uncompetitive cost structure, that

prevents the company from reaching its full potential. Furthermore, the last two

years have been the most challenging in the history of the aviation industry and

the future remains unpredictable. Travel patterns and market conditions are

changing and will have an additional impact on the company. SAS is now, more

than ever, in need of a new start.

SAS will implement measures aimed at securing long-term competitiveness. Along

with the already ongoing work of developing an efficient and profitable

business, the company is therefore presenting its transformation plan: "SAS

FORWARD".

First quarter of fiscal 2022 results

NOVEMBER 2021-JANUARY 2022

· Revenue: MSEK 5,545 (2,282)

· Income before tax (EBT): MSEK -2,597 (-1,915)

· Income before tax and items affecting comparability: MSEK -2,621 (-1,927)

· Net income for the period: MSEK -2,442 (-2,033)

· Earnings per common share: SEK -0.34 (-0.28)

SIGNIFICANT EVENTS DURING THE QUARTER

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

investigate large-scale production of synthetic aviation fuel.

· SAS Connect and SAS Link established operations in Copenhagen and

recruitment has started

SIGNIFICANT EVENTS AFTER THE QUARTER

· The SEK 3,000 million credit facility secured with the main owners in 2021,

was drawn

· SAS FORWARD is launched - a comprehensive plan to strengthen SAS' future

position

Earnings before tax ended at negative SEK 2.6 billion, down SEK 1.7 billion

compared with last quarter, or a SEK 0.7 billion decrease year-on-year. Total

operating expenses during the quarter ended at SEK 6.9 billion and total

operating revenue landed at SEK 5.5 billion for the quarter. Total revenue

decreased 4% compared with the fourth quarter, an improvement of approximately

SEK 3.3 billion compared with last year, but still 42% below the first quarter

in 2019, which was unaffected by COVID-19. The cash balance at the end of the

quarter was SEK 3.4 billion.

Passengers flying with SAS decreased 15% compared to the previous quarter and

the flown load factor reached approximately 56%, a decrease of 4 percentage

points compared with the earlier quarter. Nevertheless, our capacity was similar

to the fourth quarter. Lately on a more positive note we have seen ticket sales

accelerating which is promising for times ahead.

SAS FORWARD plan is launched

The pandemic has had a fundamental impact on SAS - ranging from lockdowns,

travel-restrictions to structural changes in travel patterns. Absent fundamental

change, this will quickly exhaust SAS' cash resources. Therefore, SAS will

proactively adopt a full transformation of its business, including its network,

fleet, labor agreements and other cost structures via a broad and comprehensive

transformation plan. The plan includes leveraging the SAS brand, achieving unit

cost competitiveness, rightsizing the fleet (including refocusing long-haul),

and building a sustainable future. SAS FORWARD is a comprehensive business and

financial transformation plan designed to place SAS on a solid financial

footing.

Key elements of the plan include:

· Reducing the annual costs by SEK 7.5 billion - SAS will aggressively pursue

reducing costs with a far more comprehensive burden sharing across all major

stakeholder and creditor groups

· Redesigned fleet, network and product offerings - SAS is adopting new

network principle and adjusting its fleet and product offerings to position SAS

for the future and to enhance customer experience.

· Digital transformation -SAS will undergo a major digital transformation,

delivering major improvement in customers' experiences driving financial

benefits

· Positioning SAS as the leader in sustainable aviation - SAS will invest in

modern fuel-efficient aircraft, sustainable aviation fuels, emerging

technologies and sustainable products and services with incentivized customer

behavior change.

· Operating platform acceleration - SAS will improve flexibility and

efficiency, and facilitate adapting to changed market demand and competition.

· Strengthening SAS' balance sheet by deleveraging and raising new capital -

SAS FORWARD SEK 7.5 billion annual cost reduction program paves the way for

undertaking a complete revitalization of SAS' balance sheet and to substantially

strengthen SAS' liquidity position, which will allow SAS to further invest in

its network, people and continued investments in fuel-efficient aircraft

The success of the program and the ability to attract potential new capital

relies on SAS fully achieving the SEK 7.5 billion annual cost take out plan

which in turn depends upon SAS stakeholders' full participation.

In order to achieve the full objectives of the SAS FORWARD plan, SAS has

retained the services of Seabury Securities LLC and Skandinaviska Enskilda

Banken AB as financial advisors and Weil Gotshal Manges LLP as well as

Mannheimer Swartling Advokatbyrå AB as legal advisors.

We will provide an update on the progress of the SAS FORWARD plan in April.

SAS is embarking on a new journey. SAS FORWARD will secure long-term

competitiveness and financial strength.

SAS' Q1 2022 teleconference

A teleconference and webcast for investors, analysts and media will be held at

10.00 AM (CET) on Tuesday, 22nd of February 2022.

Anko van der Werff, President & CEO, Magnus Örnberg, Executive Vice President &

CFO and Karl Sandlund, Executive Vice President & Chief Commercial Officer will

present and comment on the report.

The presentation will be held in English via telephone or https://edge.media

-server.com/mmc/p/fxj7fh3m

No advance notification is necessary.

Dial-in details for the conference call:

DK: +45 354 455 77

FI: +358 981 710 310

NO: +47 235 002 43

SE: +46 8 566 426 51

UK: +44 3333 0008 04

Pin: 68 50 82 98 #

The presentation and the report will be available on https://www.sasgroup.net

after the publication.

For further information, please contact:

SAS press office: +46 8 797 29 44

SAS, Scandinavia's leading airline, with main hubs in Copenhagen, Oslo and

Stockholm, is flying to destinations in Europe, USA and Asia. Spurred by a

Scandinavian heritage and sustainable values, SAS aims to be the global leader

in sustainable aviation. We will reduce total carbon emissions by 25 percent by

2025, by using more sustainable aviation fuel and our modern fleet with fuel

-efficient aircraft. In addition to flight operations, SAS offers ground

handling services, technical maintenance and air cargo services. SAS is a

founder member of the Star AllianceT, and together with its partner airlines

offers a wide network worldwide. Learn more at https://www.sasgroup.net

This is information that SAS AB is obliged to make public pursuant to the EU

Market Abuse Regulation. The information was submitted for publication by Louise

Bergström at 08:00 CET on February 22, 2022.

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. No offer will be made

to 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 U.S. 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 addressed to and directed only at,

and is being communicated only to, persons who are "qualified investors" within

the meaning of Article 2(e) of the UK version of the EU Prospectus Regulation ,

which forms part of UK domestic law by virtue of the European Union (Withdrawal)

Act 2018, who are (i) persons who have professional experience in matters

relating to investments falling within Article 19(5) of the Financial Services

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

or (ii) high net worth companies, unincorporated associations and other persons

falling 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 United

Kingdom 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.

These statements may include, without limitation, any statements preceded by,

followed by or including words such as "intend", "assess", "expect", "may",

"plan", "estimate" and other expressions involving indications or predictions

regarding future development or trends and other words and terms of similar

meaning or the negative thereof. These forward-looking statements have been

prepared for illustrative purposes only, are not based on historical facts, are

not guarantees of future performance, reflect SAS' beliefs and expectations, and

are subject to known and unknown risks, uncertainties and assumptions and other

factors that could cause actual events and performance to differ materially from

any expected future events or performance expressed or implied by such forward

-looking statements. As a result of these risks, uncertainties, assumptions and

other factors, you should not place undue reliance on these forward-looking

statements as a prediction of actual future events or otherwise. 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, whether as a result of new information, future events or

otherwise. Nothing in this press release] constitutes or should be construed as

constituting a profit forecast.