Norwegian Air Shuttle ASA1st Quarter Presentation

April 23rd 2009

CEO Bjørn Kjos

• Group revenues of MNOK 1,387 in Q1 2009, 27 % growth since last year

– Domestic Revenue: MNOK 606 (+ 39 %)

– International Revenue: MNOK 781 (+ 20 %)

0

200

400

600

800

1 000

1 200

1 400

1 600

Q1 06 Q1 07 Q1 08 Q1 09

Revenue (MNOK) 539 738 1 089 1 387

Domestic 335 402 437 606

International 204 336 651 781

Domestic Growth 36 % 20 % 9 % 39 %

International Growth 180 % 65 % 94 % 20 %

Continued strong revenue growth in Q1

+ 27 %

MNOK

Net result improved by 101 million in Q1

• EBITDAR result improved by 194 million

• EBITDA result improved by 124 million

• Group earnings after tax of MNOK -109 (MNOK -211)

– Includes MNOK 35 in start-up costs in Copenhagen

EBITDAR development Q1 EBITDA development Q1 09

-102

-52

-226

-9

-250

-200

-150

-100

-50

0

50

100

Q1 06 Q1 07 Q1 08 Q1 09

MNOK

-11

44

-145

49

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-200

-150

-100

-50

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100

Q1 06 Q1 07 Q1 08 Q1 09

MNOK

MNOK + 41 net change in Cash and Cash Equivalents in Q1

• Cash Flows from Operations in Q1 2009 MNOK +125 (+14)

• Cash Flows from Investing Activities in Q1 2009 MNOK - 81 (- 63)

• Cash Flows from Financing Activities in Q1 2009 MNOK - 4 (- 6)

• Cash and cash equivalents at period-end MNOK 649 (447)

(NOK 1 000) Q1 09 Q1 08 2008

Net cash flows from operating activities 125 426 14 423 -133 124

Net cash flows from investing activites -81 912 -63 419 164 333

Net cash flows from financial activities -3 913 -5 946 93 592

Exchange rate effect on cash 1 748 559 4 264

Net change in cash and cash equivalents 41 348 -54 383 129 065

Cash and cash equivalents in beginning of period 607 536 501 410 478 471

Cash and cash equivalents in end of period 648 885 447 027 607 536

Strong balance sheet

• Equity decreased from MNOK 897 at the beginning of the year to

MNOK 791 at the end of the first quarter

– Primarily due to the Q1 operating loss

• Group equity ratio of 22 % (22 %)

(NOK 1 000) Q1 09 Q1 08 2008

Total borrowings 683 678 297 947 698 330

Cash and cash equvalents 648 885 447 028 607 536

Net debt 34 793 -149 081 90 794

Total equity 790 646 300 563 897 368

Total capital 825 439 151 482 988 162

Gearing ratio 4,22 % 0,00 % 9,19 %

• 75 % load factor in Q1 09 - down two percentage points from last year

– New base in Copenhagen

– More domestic and business production

77 %75 % 77 %

75 %

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1 500

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3 500

4 000

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100 %

ASK Total*

Load Factor

Q1 06 Q1 07 Q1 08 Q1 09

ASK Total* 933 1 342 2 182 2 674

ASK (mill) norwegian.no 933 1 342 1 855 2 233

Load Factor norwegian.no 77 % 75 % 78 % 74 %

ASK (mill) norwegian.se - - 327 442

Load Factor norwegian.se - - 73 % 77 %

Production growth of 23% in Q1

* Unadjusted for code share between norwegian.no and norwegian.se in 2007

ASK

(mill)

0

500

1 000

1 500

2 000

2 500

International Passengers

Domestic Passengers

(000) Q1 06 Q1 07 Q1 08 Q1 09

Total Passengers 1 014 1 303 1 997 2 105

Domestic Passengers 604 696 802 1 002

International Passengers 410 607 1 195 1 103

• Domestic passenger growth: + 25 %*

• International passenger growth: - 8 %

More than 2 million passengers in Q1

(+ 108,000 pax)

*Domestic Norway

+5 %

Pax

(000)

Increasing Domestic Market Share

• 25 % passenger growth

• 12 new domestic routes in Q1 2009 compared to Q1 2008

• Stable 44 % market share on key domestic routes*

– Capacity reduction during seasonaly weak winter months

42 %

43 %

34 %

38 %

43 % 43 %

37 %

32 %

47 %

46 %

43 %

34 %

48 %

44 %

43 %

35 %

25 %

30 %

35 %

40 %

45 %

50 %

Q1 06

Q1 07

Q1 08

Q1 09

Bergen Trondheim Stavanger Tromsø

*Only traffic from OSL

Unit Cost Down 8 %

• Unit cost of 0.56 in Q1 – Down 8 % since last year

• Unit cost ex. fuel was 0.45 - Up 1 % since last year

– Negative currency effects (leasing, handling charges, airport charges, technical expenses)

NOK

0,50

0,44 0,45

0,13

0,11

0,16

0,11

0,45

0,56

0,60

0,56

0,63

0,30

0,35

0,40

0,45

0,50

0,55

0,60

0,65

0,70

Fuel share of CASK

CASK ex. Fuel

Q1 06 Q1 07 Q1 08 Q1 09

0

10

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40

50

60

70

80

(pr. pax) Q1 07 Q1 08 Q1 09

Ancillary Revenue 27 52 72

• Strong focus and improved products

Significant growth in ancillary revenue

All figures excluding norwegian.se

40 %

NOK

Fleet update 2009

• Redelivery of the remaining MD-80 aircraft during 2009

• Year-end fleet of 45 aircraft whereof 17 new Boeing 737-800

• The total 737-800 fleet in 2014 is expected to comprise 58 aircraft

710

1215

17

28

28

28

28

28

5

54

1

454444

43

40

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25

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35

40

45

50

MD-80

Boeing 737-300

Boeing 737-800

(Period-end) Q4-08 Q1-09 Q2-09 Q3-09 Q4-09

Boeing 737-800 7 10 12 15 17

Boeing 737-300 28 28 28 28 28

MD-80 5 5 4 1 0

Expectations for 2009

• Business Environment

– Slowdown in the business environment expected throughout 2009

– Uncertain macro conditions

– Seasonal fluctuations

• Cost Development

– Unit cost in the area of NOK 0,51 for the Group

• Fuel price dependent – USD 625 per ton

• Currency dependent – USD/NOK 6.50

• Based on the current route portfolio

– Continued focus on the cost reduction program accross the organization

• Subsidiaries/ Bases

– Denmark: A fleet of 5 aircraft based at the Copenhagen base

– Sweden: Norwegian.se will continue to focus on the restructuring

and optimizing efforts

– Poland: Uncertain macro conditions and signs of weakening

demand

Norwegian offers 175

routes to 83 destinations