7 March 20181

Magnus DahlbergCFO

West Atlantic Group – 2018

Introduction

22

Cargo airline group headquartered in Gothenburg, Sweden, with main operation bases in UK and Sweden

Around 460 staff

50+ customized freighter aircraft in the portfolio

100+ flights per weekday to over 50 destinations

Operating on behalf of national Mail organizations and Global Integrators

3

20 years with the same core business model

Aircraft in operation 4 +40

Countries of operation 1 +15

Contracted customers 1 +10

The air freight business

4

West Atlantic Group

West Atlantic UK AOC

B737-300, -400, -800

West Atlantic Sweden AOC

ATP, CRJ, B767

West Atlantic Part-145

B737, ATP, CRJ, B767

Operational Group Structure

5

• UK airline operating B737-300/400/800 aircraft• SE airline operating ATP, CRJ and B767 aircraft• Part-145 maintenance organisation

6

<8,5 tonnes payload 37 BAE ATP – world’s largest fleet

<6,5 tonnes payload2 CRJ200PF

<18 tonnes payload 17 Boeing 737-300/-400 (5 additional pending delivery 1 -400 & 4 -800)

<50 tonnes payload3 Boeing 767-200

Aircraft Fleet 2018-03-01

Scheduled destinations

51 scheduled destinations

Norway [8 airports] LYR TOS BOO AES KRS OSL SVG BGO

Sweden [4 airports]JKG MMX ARN SDL

Denmark [2 airports]CPH BLL

United Kingdom [14 airports] GCI JER EXT STN NCL EMA LTN EDI ABZ IOM BFS WRT BHX INV

Netherlands [1 airport]AMS

Belgium [2 airports]BRU LGG

Germany [3 airports]CGN SXF LEJ

Switzerland [1 airport]BSL

France [8 airports]MRS CDG TLS AJA BIA MPL BOD NTE

Italy [3 airports]CIA LIN BRI

Hungary [1 airport]OTP

Greece [1 airport]HER

Turkey [1 airport]SAW

Saudi Arabia [2 airports] TIF DHA

West Atlantic scheduled Airport

Main Offices (GOT, CVT, MMX)

Main maintenance bases (EMA, IoM, OSL

West Atlantic Routes

January 2018

Saudi Arabia

6

8

New base maintenance setup

MMX (Malmoe)

CVT (Coventry)

EMA (East Midlands)

Move from two smaller hangars into one large where B737 aircraft can be fully maintained

9

The Next Generation of narrow-body

freighters

Launch customer with the

GECAS/Boeing cargo freight

configuration

Letter of Intent signed for operation

of four aircraft on a 5 year contract

All four aircraft will be operating in

Europe for one customer

Lower operating cost

NGs are more environmental friendly

High quality – improved reliability with easy access to maintenance all

over Europe

We believe in future growth with this product

Next Generation (NG) B737-800BCF

10

Growing faster than expected

and accelerating

9.7% online sales of total retail

sales in 2017

Cross border transactions

estimated to grow higher than domestic

Amazon, eBay, Alibaba and Wish websites are dominant

Price and speed of delivery the most important differentiators

Postal organisations are the main delivery provider

E-commerce growth

11

2012

<8 tonnes payload 40 aircraft – around 97% of flight revenue

>8 tonnes payload 1 aircraft – around 3% of flight revenue

2018

<8 tonnes payload20 aircraft – estimated to around 14% of flight revenue

>8 tonnes payload 25 aircraft – estimated to around 86% of flight revenue

Rapid growth in >8 tonnes capacity

Customer Portfolio

Share of revenue (2017 preliminary)

Operations for NMOs are on full charter basis while operations for GIs are on ACMI basis why revenues for NMOs are around 30% higher for ”like for like” operations

13

West Atlantic benefits from longstanding, strong relationships with loyal, blue chip customers

The largest customers have been with the Group between 12-43 years respectively

High customer retention due to close customer cooperation in developing innovative solutions

Over 60% of sales derive from the most stable customers, namely NMOs

Lack of in-house capabilities

Long contract tenors

Each NMO has at most only a handful of suppliers (Posten Norge has only one, West Atlantic)

The Group’s five largest customers accounted for 90 per cent of revenues in 2017

Customer Portfolio, cont

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Contract status - 5 largest customers

Customer

# of

aircraft

Contract

length,

years 2017 2018 2019 2020 2021 2022 2023

Royal Mail 12 5

Posten Norway* 8 5 (+3)

DHL 8 1-2

FedEx/TNT 3 2-3

La Poste/Chronopost 2 3

*reduced network from 2018 to 3 aircraft Existing contract Extension option

General market

14

<8 tonnes

<18 tonnes

<50 tonnes

Larger aircraft are required due to volume increase driven by E-commerce

Outlook for 2018 and beyond

15

Stable core business with recurring and increasing demand from national mail organisations and global integrators driven by the growing e-commerce.

E-commerce companies – a new customer category.

Appealing market position in response to market shift toward larger payloads.

Reduced operations for Posten Norway.

Focus on further cost efficiencies and strengthening of core competencies.

Over 10 % revenue growth Y-O-Y expected.

Continuing efforts to expand the business beyond Europe.

First sale of ATP aircraft.

Financials

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Q4 and YTD 2017

Meets the maintenance test covenant 31 Dec 2018

Equity ratio up to 5,3% end of Q4 2017

Approved written procedures of waivers and amendments

Revenue & EBITDA

17

Growing revenue levels in 2017 Record high revenues in Q4 of MSEK 441 due to very

strong peak season operations and the new RM contract fully implemented

Overall stable contract portfolio and growing top line in 2017 by 20.4% mainly due to the new RM contract

The development continues with stronger B737 and B767 revenue but weaker ATP revenue

Lower leasing revenue

EBITDA margin increased in Q3 and Q4 EBITDA margin increased to 15.1 % in Q4 2017 vs 10.8%

in Q4 2016

EBITDA on same level in 2017 as in 2016 but lowermargin mainly due to high delay costs for the start upof the new RM contract

Cost reduction program implemented end of 2017

Staff levels down by 3.8% in 2017

Capital expenditure

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Quarterly CAPEX Both maintenance and investment capex lower in Q4

2017 vs Q4 2016

Low ongoing maintenance capex while periodicalmainenace capex was higher than Q4 2016

Investment capex low in Q4 2017 as no new aircraft was aquired

YTD CAPEX Maintenance capex down by 25% in 2017 compared to

2016

Both lower ATP and B737 maintenance capex in 2017

No purchase of B737 aircraft in 2017 why investment capex significantly reduced in 2017

Growth in 2017 mainly by operating leases withattached mainenance reserves - OPEX

Decision taken to dismantle up to 6 ATP aircraft in 2018

Cashflow

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Quarterly Cashflow Operating cashflow improved in Q4 to MSEK 78

Low operating cash flow before changes in WC in Q2 and Q3 2017 due to high delay costs for the start upof the new RM contract

Significant changes in Working Capital both in Q1 and Q2 2016 and 2017 mainly due to trade receivables

YTD Cashflow Operating cashflow decreased by 2.7% in 2017 vs 2016

Significant increased cash flow from changes in Working Capital in 2017

Better credit terms with suppliers and new business and a focused work with cash management

A positive cash flow of MSEK 14.6 for the full year2017

Net Working Capital

20

Net working capital Mainly consists of Inventory (aircraft spare parts)

NWC in Q4 2017 down to MSEK 61, which is the lowest in the last 2 years

NWC decreased by 46% y-o-y

NWC in average 6% of revenues in 2017, down from 10% in 2016

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Appendix

Income Statement

22

Oct - Dec Oct - Dec Jan - Dec Jan - DecMSEK 2017 2016 2017 2016

Revenue 440,5 353,5 1589,3 1320,4

Cost of services provided -405,2 -342,5 -1562,7 -1291,8

Gross income: 35,3 11,0 26,6 28,6

Selling costs -2,8 -5,2 -7,8 -16,1

Administrative costs -14,2 -18,4 -48,2 -47,9

Other operating income & costs 17,5 12,2 27,3 24,9

Operating income: 35,8 -0,4 -2,2 -10,5

Financial income & costs -20,4 -24,5 -74,7 -84,5

Income before tax: 15,5 -24,9 -76,9 -95,0

Income tax 1,9 1,6 15,1 13,2

Net Income: 17,4 -23,3 -61,7 -81,8

Attributable to:

- Shareholders of the Parent Company 17,4 -23,3 -61,7 -81,8

Earnings per share, before and after dilution (SEK) 0,64 -0,86 -2,28 -3,03

Average number of outstanding shares (Thousands) 27 005 27 005 27 005 27 005

Statement of other comprehensive income

Net income: 17,4 -23,3 -61,7 -81,8

Other comprehensive income:

Items that may or has been classified as net income:

Exchange-rate differences in translation of foreign

operations 0,0 -0,6 -0,7 -1,3

Total comprehensive income for the period: 17,4 -23,9 -62,4 -83,1

Attributable to:

- Shareholders of the Parent Company 17,4 -23,9 -62,4 -83,1

Balance Sheet

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Dec 31 Dec 31MSEK

2017 2016

Intangible assets 0,1 0,2

Tangible assets796,4 856,3

Financial assets 32,8 22,2

Total non-current assets 829,4 878,6

Inventories 116,7 116,6

Other current assets 196,3 171,5

Cash and cash equivalents 123,4 110,2

Total current assets 436,4 398,2

Assets held for sale 21,3 0,0

Total assets 1287,0 1276,8

Shareholders' equity 68,0 105,3

Non-current liabilities 963,7 991,2

Current liabilities 255,2 180,3

Total shareholders' equity and liabilities 1287,0 1276,8

Cash Flow Statement

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Oct - Dec Oct - Dec Jan - Dec Jan - DecMSEK 2017 2016 2017 2016

Operating income 35,8 -0,4 -2,1 -10,5

Adjustments for non-cash items

Depreciation 30,6 38,6 128,4 138,0

Other non-cash items 11,2 25,9 65,6 111,5

Income tax paid 6,6 5,6 -2,4 -1,3

Cash flow from operating activities

before changes in working capital 84,2 69,7 189,5 237,8Change in working capital -6,2 -0,8 44,2 2,3

Cash flow from operating activities 78,0 68,9 233,7 240,1

Payments from associated companies 0,0 0,0 0,0 0,0

Investments in intangible assets 0,0 -0,2 0,0 -0,2

Investments in tangible assets -35,6 -42,1 -143,2 -321,7Sales of tangible assets 0,0 0,0 0,0 0,2

Payments from other investing activities -0,2 -2,7 -11,8 -5,5

Cash flow from investing activities -35,8 -45,1 -155,0 -327,2

Contributed capital 25,0 - 25,0 -

Received loans 0,0 0,0 0,0 0,0

Amortisation of interest bearing liabilities -3,9 -3,8 -12,3 -10,5

Repaid/received deposits 0,0 0,0 0,1 13,8

Interest paid -33,9 -34,2 -76,9 -77,2

Cash flow from financing activities -12,8 -38,0 -64,1 -74,0

Cash flow for the period 29,4 -14,2 14,6 -161,0

Cash and cash equivalents at the beginning of the period 94,3 121,3 110,2 266,8Translation difference in cash and cash equivalents -0,4 3,1 -1,4 4,4

Cash and cash equivalents at the end of the period 123,4 110,2 123,4 110,2

Thank you for your attention!