SAS

Legal Proceedings Report • Jan 23, 2024

SAS provides update on chapter 11 process, including financial projections

SAS provides update on chapter 11 process, including financial projections

SAS announces that it will file an amended chapter 11 plan of reorganization

(the "Chapter 11 Plan") and related disclosure statement (the "Disclosure

Statement") with the U.S. Bankruptcy Court for the Southern District of New York

(the "Court") today, which documents will include, among other things, key

milestones for the chapter 11 process and financial projections for the

reorganized SAS. The Chapter 11 Plan and the Disclosure Statement remain subject

to further amendments and Court approval. As previously announced by SAS in the

press release on November 4, 2023, the Chapter 11 Plan seeks to implement a

transaction including a total investment in the reorganized SAS corresponding to

USD 1.2 billion.

In connection with the filing of the updated Disclosure Statement, SAS is

announcing financial projections for the reorganized SAS, including for the

fiscal year 2024 (the "Initial Projections Period"). During the Initial

Projections Period, SAS expects revenue to exceed SEK 48 billion, with an

adjusted EBT[1] of SEK 0.0 to -1.0 billion. SAS further expects that during the

Initial Projections Period, its net debt will range from SEK 36 - 39 billion

prior to emergence from the chapter 11 process, and from SEK 22 - 24 billion

following emergence from the chapter 11 process, with liquidity at or above SEK

4 billion or approximately 8% of LTM[2]revenues in the period prior to emergence

from the chapter 11 process, and SEK 11 billion or approximately 25% of LTM

revenues in the period following emergence from the chapter 11 process. Assuming

successful implementation of the Chapter 11 Plan, SAS expects improved financial

performance following the Initial Projections Period in an unlisted environment.

The financial information set forth above is indicative and is not a guarantee

of future performance. Even though the financial information reflects SAS'

current beliefs and expectations, it is subject to material uncertainties and

factors, including but not limited to market demand levels, foreign exchange

rates, fuel prices, and a successful implementation of the Chapter 11 Plan.

Furthermore, the financial projections are based on, among other things, the

following assumptions: a foreign exchange rate of 10.49 SEK per USD and an

average base jet fuel price of USD 830 per metric ton. All numbers are presented

on a consolidated basis for the SAS Group.

SAS reiterates its expectation that there will be only a modest recovery for

general unsecured creditors, no recovery for subordinated creditors and no value

for SAS AB's existing shareholders, and that all of SAS AB's common shares and

listed commercial hybrid bonds will be cancelled, redeemed and delisted, in

connection with emergence from the chapter 11 process. Recoveries for general

unsecured creditors, including the amount and timing of distributions, remain to

be confirmed (as further described in the Chapter 11 Plan and the Disclosure

Statement).

The Chapter 11 Plan and the Disclosure Statement remain subject to further

amendments and Court approval. SAS currently aims to receive approval from the

Court of the Disclosure Statement in February 2024 and of the Chapter 11 Plan in

the first quarter of 2024. The effectiveness of the Chapter 11 Plan remains

subject to various conditions precedent, including approvals from various

regulatory authorities and the completion of a Swedish company reorganization at

the SAS AB level, as further set out in the press release announced by SAS on

October 3, 2023. SAS currently expects to emerge from the chapter 11 process

around the end of the first half of 2024.

Information regarding chapter 11 cases

Additional information regarding SAS' voluntary chapter 11 cases is available on

SAS' dedicated restructuring website, https://sasgroup.net/transformation. U.S.

Court filings and other documents related to the chapter 11 cases in the U.S.

are available on a separate website administered by SAS' claims agent, Kroll

Restructuring Administration LLC, at https://cases.ra.kroll.com/SAS. Information

is also available by calling (844) 242-7491 (U.S./Canada) or +1 (347) 338-6450

(International), as well as by email at SASInfo@ra.kroll.com.

Advisors

Weil, Gotshal & Manges LLP is serving as global legal counsel and Mannheimer

Swartling Advokatbyrå AB is serving as Swedish legal counsel to SAS. Seabury

Securities LLC and Skandinaviska Enskilda Banken AB are serving as investment

bankers, and Seabury Securities LLC is also serving as restructuring advisor to

SAS. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel,

Rothschild & Co is serving as investment banker, and SkyWorks Holdings LLC is

serving as aviation consultant to Castlelake, L.P. White & Case LLP, Paul

McGeown and Sheppard, Mullin, Richter & Hampton LLP are serving as co-legal

counsel to Air France-KLM S.A. Bech-Bruun Law Firm P/S is serving as legal

counsel and Latham & Watkins LLP is serving as US legal counsel to Lind Invest

ApS.

For further information, please contact:

SAS Press office, +46 8 797 29 44

Investor relations, +46 70 997 7070

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

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

Scandinavian heritage and sustainable values, SAS aims to be the driving force

in sustainable aviation and in the transition toward net zero emissions. We are

continuously reducing our carbon emissions through using more sustainable

aviation fuel, investing in new fuel-efficient aircraft and technology

innovation together with partners - thereby contributing towards the industry

target of net zero CO2 emissions by 2050. In addition to flight operations, SAS

offers ground handling services, technical maintenance and air cargo services.

Learn more athttps://www.sasgroup.net

ADDITIONAL INFORMATION

The press release does not constitute an offer to sell or issue, or the

solicitation of an offer to buy or acquire, or subscribe for, shares or any

other financial instruments in SAS.

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 developments 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.

[1] Earnings before tax, excluding capital gains or losses, or other gains or

losses related to the completion of the chapter 11 process.

[2] Last twelve months.