SAS Group Year 2000 Press conference

Transcription

1 Group Year 20 Press conference Stockholm, February 13, Group Year 20 A promising year Volume growth Rising yields Passenger load factors sharply up Healthy cost development International Hotels improved EBITDA One share in progress expansion has started 2

2 Group January December 20 MSEK Revenue % Op. inc. bef. depr % Operating income % Income before tax % 3 Group Proposed dividend 20 Local currency Dividend Yield Danmark A/S 3,80 Norge ASA 4,20 Sverige AB 4,50 Average level (SEK) 4,50 4,7% 4

3 has outperformed peers 20 -still lower multiples than peers Market Capitalization vs. European Peers* (Rebase 31 DEC 1999) Group ,6 108, jan- feb- mar- apr- maj- jun- jul- aug- sep- okt- nov- dec- Index Peers Index 5 Three Windows in the Capital Market Founded in 1946 as a Consortium The one flag carrier of 3 countries Denmark and Norway (2/7 each) Sweden (3/7) Listed on the 3 Scandinavian exchanges. Owned 50% private/ 50% governments 6

4 Key Airline Profitability Drivers / Group Traffic growth (RPK) up 7% Business Class (RPK-C) up 9% Cabin factor up 3,3 p.u. Yields up 1,9% EBITDAR up 37% 7 Cargo business - Increased yields Cargo contribution 20 (1999) +16,5% MSEK 861 (MSEK 739) January-December 20 Revenue ton-km up 0,7% Revenues up 5,5% 8

5 Favorable unit cost development except jet fuel Index Last Year 3% 2% 1% 0% (1 % ) (2 % ) Increase of 1,1% January-December 20 Down 3,0% adjusted for fuel costs (3 % ) JAN-DEC99 JAN-DEC 9 Result Improvement Program 1999/ MSEK 2450 achieved as of 4th quarter 20 Completed as planned mid 21 Area Achived effect vs Cargo 90 MSEK Catering & In-flight service 3 MSEK IT & communications 2 MSEK Distribution & Electronic channels 635 MSEK Air crew 445 MSEK Ground handling 270 MSEK Technical maintenance 235 MSEK Overhead & other 275 MSEK Total 2450 MSEK 10

6 Sharp Increase in Passenger Load Factors - Growth Trend in Business Class RPK Business Class Passenger load factor total system Year on Year values Moving 12 months values 25% 20% 15% 10% 5% 0% -5% -10% -15% JAN98 JUL JAN99 JUL JAN JUL 68% 67% 66% 65% 64% 63% 62% DEC94 JUN DEC95 JUN DEC96 JUN DEC97 JUN DEC98 JUN DEC99 JUN DEC 11 First step on the expansion on Intercontinental routes as from May 21 First A in service as from August 21 Washington D.C added as from May figures : Traffic up 6,9% Business Class up 10% Pass. load factor 81% Yields up 3,1% 12

7 Growth vs LY Index European routes - strong January 21 JAN MAR MAY JUL SEP Business Class/ Economy Class NOV JAN MAR MAY JUL Month Economy Class SEP NOV JAN Business Class 20 figures RPK up 7,5% Business Class up 8,0% Expansion on Copenhagen- Birmingham Oslo-Dublin 13 Yields up on full year 20 Total system - currency adjusted 3% 2% 1% 0% -1% -2% -3% JAN-DEC99 JAN-DEC Yields up 1,9% overall Up 3,1% on Intercontinental routes Reduced capacity on Norwegian domestic increased yields by 9,9% European rotes up 1,1% 14

8 partnerships MSEK 10 in synergies & Partners - Global & Regional Coverage 9 destinations in 130 countries N. & C. America 373 destinations 21 countries + Regionals Europe 251 destinations 40 countries. Asia 98 destinations M. East 25 countries 32 destinations 23 countries S. America 49 destinations 9 countries Africa 11 destinations 8 countries Australasia 83 destinations 2 countries 16

9 Electronic Channels - current volumes of total sales 20 Products: Travel Pass, TPC, E-TIX Other Internet Total volume E-channels MSEK % of total passenger sales 17 Radisson Hotels reached target of 20% EBITDA growth p.a. SIH MSEK EBITDA - adjusted 6 4 MSEK 2 0 Jan-Dec 1999 Pre tax profit Jan-Dec 20 Gains 18

10 No. of hotels Radisson Hotels 2 remaining properties to be sold Owned Leased Managed Franchised Two brands Radisson Hotels Malmaison 21 hotels added 7 Malmaisons In total 146 hotels in 37 countries SIH 19 Promising January traffic figuresaffected by Millenium effect Continued positive passenger mix Business Class +18,2% - Economy Class +5,4% Passenger- Seat capacity Cabin- traffic (RPK) (ASK) factor Total +9,3% +5,3% +2,1 p.u. Intercontinental +8,6% +2,3% Europe +9,8% +6,7% Domestic and +9,8% +6,7% Intrascandinavian 20

11 Management outlook operating key figures - year 21 Expansion strategies Rising yields Underlying unit costs down Key figure ASK Frequencies 21 Up approx 8% Up 3% RPK Up approx. 9% Passenger yield (currency adjusted) Up 1-2% Unit costs Down 2-3% 21 The Board of Directors Assessment for full year 21: Supply an demand balance improved U.S economy uncertain Lower unit costs Passenger traffic up 9% Capital gains at least MSEK 5 Significant improvement in operating income before taxes (ex gains) 22

12 Group Income by Business Area Group (MSEK) January - December International Hotels Other operations/group elim Income before taxes Unpunctuality Flights delayed more than 15 min % delayed ,3 11,8 13,7 11,8 10,1 13,1 13,1 8,5 11,2 13,3 13,7 15, ,6 24,4 22,4 15,2 13,5 17,6 13 9,3 12,1 12,6 12,3 24,6 JAN FEB MAR APR MAJ JUN JUL AUG SEP OCT NOV DEC Udfald 99 Udfald Target 24

13 Group Investor Relations on the Internet 25 Traffic and Yield JAN-DEC 20 vs 1999 JAN-DEC Index, Total Scheduled variance Production (mill ASK) Traffic (mill RPK) Cabin factor (%) 67,0 63,7 + 3,3 C-class share (%) 29,1 29,1 0,0 Yield (öre/rpk) 138,4 135,7 102 Currency adj. yield 138,4 135,