SAS Group. 3rd Quarter rd Quarter Tough market environment offset by significant cost reductions

Transcription

1 SAS Group 3rd Quarter 23 Telconference November 11, 23 3 rd Quarter 23 -Tough market environment offset by significant cost reductions Clear stabilisation of traffic volumes but no significant growth Group traffic +1% Continued strong pressure on yields Down 14% in Q3 Turnaround 25 well underway ahead of plan Unit cost down 14% Q3 (SK) 42% of program implemented 2 Position as Europe s No 4 Airline Group secured further - Revenues - Passengers The SAS Group current platform Strong position in home market 1 million in catchment area Fourth largest airline group in Europe Strengthened market position through acquisitions of minority holdings in Estonian Air Rebranding of Air Botnia into Blue1 in Finland expanding with new nonstop flights from Helsinki to Europe 3rd Quarter pressure on revenues offset by cost reductions MSEK Revenue % EBITDAR*) % 3rd Quarter Lease, depreciation & financial net % EBT bef. cap gains*) 11 5 EBT incl. gains *) Excluding resctructuring costs 3 4

2 Negative result mainly attributable to the first quarter EBT bef gains and restructuring MSEK million Q1 Q2 Q3 The SAS Group Turnaround 25 Turnaround 25 cost savings billion SEK Important events in Turnaround 25 New organization implemented AUG 3 Pilots took over PFI AUG 3 Administration reduced by 37 FTE OCT 3 Cabin crew reduced by 32 FTE OCT/NOV 3 App 4 to leave in SGS DEC 3 2 FTE pilot redundancies FEB 4 14 pilots on leave of absence DEC 3 New Scandinavian Direct concept launched NOV 3 Base organization implemented for aircraft and cabin crew MAR 4 Cabin crew to be reduced further By JUN 4 Revenue Accounting to India MAY 4 Administration in SK to be reduced by further 1-15 FTE FEB 4 Implementation of SGS Ground Operation Concept completed Q4 4 STS move of Base Maintenance to Stockholm and centralization of material supply completed Q4 4 Gunilla Berg CFO 7 8

3 Decided and under implementation 12 billion SEK in Turnaround 25 The Turnaround 25 business follow up a complement to existing follow up systems 14 Primary due to compensation level and choice of business model 1,9 12, 1-2 billion Steering of units on bottom line and include all effects of Turnaround 25 Follow up through normal reporting ,3 2,9,9 1,4 1, 1,6 Follow up status negotiations Follow up FTE reductions FTE Follow up Budget and Business Plans Steering of businesses and business units Follow up activity KPI Follow up of existing KPIs KPIs on unit level task force and activity level Overhead functions SK/group wide Production Inflight - SK Distribution concept - SK & Sales - SK SGS STS Subsidiary Airlines & Hotels Identified, not decided Follow up of activities vs plan Turnaround 25 ahead of plan financial effect of implemented activities compared to plan Reduction of personnel MSEK % 42% Plan Status SEP 23 To be implemented Plan Implemented 3% 32% Status SEP 23 Operating expenses down by 15,8% in Scandinavian Airlines July September 23 pro forma 22 Operating revenue ,1% Personnel expeses ,6% Sales & distribution ,1% Fuel ,4% Government user fees ,1% Catering ,3% Handling costs ,8% Technical aircraft maintenance ,1% Data & telecommunication costs ,7% Other costs ,3% Operating expenses ,8% EBITDAR EBIT EBT

4 Effects from Turnaround 25 offset by severe pressure on revenues Sharp reduction in unit cost from Q2 continued in 3 rd Quarter Billion, SEK ,8,5 (1,2) Turnaround +2,4 Volume +,8 Increased prices: Fuel & Charges. -,4 Inflationary comp. -,7 Others incl curren. +,7 Index last year, EBITDAR level (currency adjusted) Scandinavian Airlines 1% 5% % -5% -1% Q1 unit cost down 2% Q2 unit cost down by 13% Q3 unit cost down by 14% Turnaround 25 Net pricing model Limited long haul effect Some effect from snowflake introduction -5 Volume (RPK) -7% -1,6 Yield -13% -3,2 Other, currency,3 (4,5) revenue costs Lease, depr, Net financ. change -15% 1st Q 21 3rd Q 21 1st Q 22 3rd Q 22 1st Q 23 3rd Q rd Quarter EBT before gains and exceptionals - Business area Business area Q3 3 Q3 2 Change Scandinavian Airlines Subsidiary & Aff. Airlines Airlines Support Businesses Airline Related Businesses Hotels Group eliminations EBT, before gains & exceptionals Jørgen Lindegaard CEO & President 15 16

5 Subsidiary & Affiliated Airlines positive Quarter for most airlines New improvement measures of MSEK 1 8 identified and initiated Jul-Sep in MSEK Revenues ,5% ,% 574-8,% 21-17,6% Finland and the Baltic region of great strategic importance to the SAS Group The SAS Group increases presence in the Baltic region EBITDAR 591 9,2% ,1% 88-7,4% 14-76% EBT, before gains % % 18 n.m -25 n.m 17 Hotels continued weak hotel markets Weak trading conditions in Western Europe (specially in main capitals) Strong in the Baltic region and Eastern Europe New loyalty program introduced- Goldpoints Improvement program of MSEK 15 under implementation with full effect 24 July-September revenue EBITDA EBIT EBT Sum up Stabilization of market but no significant growth Yield pressure to continue Cost measures takes effect Turnaround 25 ahead of schedule Unit cost down in Q3 by 14% for Scandinavian Airlines Position as Europe s no 4 airline group secured further Strengthened position for Spanair, Blue1 & AirBaltic Acquisition of Estonian Air 19 2

6 The Board of Directors Thank you for your attention! Assessment for full year 23: Improved economies, but still weak demand Yields under pressure Turnaround 25 ahead of schedule EBT before taxes approximately negative MSEK 2 Uncertainties about yields 4 th Quarter This presentation can be downloaded at the SAS Group s homepage