Second Quarter nd Quarter result improved by MSEK 526. Improved load and stable yields. Positive result and improved operating performance

Transcription

1 2 nd Quarter result improved by MSEK 526 Second Quarter 25 April-June January-June MSEK 25 Change 25 Change Revenues EBITDAR Lease & depreciation EBIT Financial net EBT EBT bef non-recurring items Group Scandinavian Airlines Businesses Subsidiary & Affiliated Airlines Airline Support Airline Related Business Hotels 1 3 Positive result and improved operating performance Improved load and stable yields 1 st Half result improved by MSEK 82 Improvement for all business areas and group airlines Operating result almost tripled in 2 nd Quarter EBIT improved MSEK 698 vs last year Strong positive cash flow in 2 nd Quarter Stable yields and record load factors Turnaround 25 as planned Unit cost down 6,4% adjusted for currency and fuel (vs. 24) Continuous efficiency measures - benchmarking Fuel cost up appr. MSEK 7 vs last year New Business models 2 Q2 Operating result (EBIT) +698 MSEK Q 24 2Q % 7% 6% 5% 4% 3-nov 3-dec 4-jan 4-feb Load factor 4-mar 4-apr 4-maj 4-jun 4-jul 4-aug 4-sep 4-okt Yield (12 months rolling) 4-nov 4-dec 5-jan 5-feb 5-mar 5-apr 5-may 5-jun 1,3 1,3 1,2 1,2 1,1 1,1 1,

2 Scandinavian Airlines Danmark -still large overcapacity Scandinavian Airlines Sverige record load factors but yields under pressure Fierce competition and overcapacity on many routes Capacity & Utilization Focus starting to give effect Capacity down 11,% Cabin factor down,1 p.u. during Jan- Jun but up 1,9 p.u. in Q2 Negotiations with Copenhagen Airport on charges for Total revenues EBITDAR EBT Number of passengers up 7,4% in Q2 Cabin factor up 6,8 p.u. in Q2 Swedish domestic yields down 1% in Q2 Successful launch of Swedish domestic concept One way pricing New web site Simple rules April-June load factor 7% up 8,1 p.u. vs 24 8% Total revenues EBITDAR EBT % Load factor 7% 65% 6% Market share 55% 5% Jan Feb Mar Apr May Jun jul Aug Sep Oct Nov Dec 5% Group Scandinavian Airlines Operations Subsidiary & Affiliated Airlines Airline Support Airline Related Business Hotels Load factor 23 Load factor 24 Load factor 25 Market share SAS Braathens on track 1 st Half result improved by MSEK 417 Scandinavian Airlines International positive market development Cabin factor up 2, p.u. in first half Market position stable One AOC established Over 4% internet bookings on domestic routes % Total revenues EBITDAR EBT, bef nonrecurring items Jan Feb Mar Apr May Jun Jan-Jun p.u Load factor Change in load factor Focus on further efficiency measures on intercontinental operations Increased overcapacity Cabin factor down 3,7 p.u. in first half and down 1,7 p.u. in Q2 Several product improvements Internet onboard all aircraft IATA customer survey shows SAS has third most satisfied customers of all airlines on USA routes Total revenues EBITDAR EBT 49-26

3 Improved result by SEK,8 billion 1 st Half 2,3 1,9 1,8 1,3,8,2 -,2 -,7 -,4 -,2 -,2 -,5 -,7-1,2 Gunilla Berg CFO -1,7-2,2-1,5 24 Underlying yield Volume Turnaround 25 Maintenance engines Net financials Other incl. price & currency EBITDAR 1 st Half improved 64% All major Business areas contribute to the improved result EBITDAR MSEK Q1 Q2 Q3 Q4 EBITDAR in 1H 25 was (1 449) MSEK EBITDAR Scandin Airl MSEK Spanair 489 MSEK Widerøe 212 MSEK Blue1 117 MSEK April-June January-June MSEK 25 Change 25 Change Scandinavian Airlines Businesses Subsidiary & Affiliated Airlines Airline Support Businesses Airlines Related Businesses Hotels Group, eliminations, other EBT bef non-recurring items Group Scandinavian Airlines Businesses Subsidiary & Affiliated Airlines Airline Support Airline Related Business Hotels 1 12

4 Focus on remaining areas in Turnaround 25 2, 1,5 1,,2,1 1,2,5, Pilot/cabin efficiency SAS Ground Services SAS Technical Services Distribution and IT Other Total Gunnar Reitan Deputy CEO 13 Scandinavian Airlines focus on cost and profitable services Spanair s result improved by MSEK 121 during 1 st Half 25 Turnaround 25 focus on remaining activities Further rationalization Simplified business model Basic production on LCC cost level Increase cost flexibility Continuously analyzed costs Activities being addressed Robust traffic development in the total market Two new destinations and five new routes opened in first half 25 Total revenues Traffic up 13,7%, cabin factor stable EBITDAR Strong corporate sale development EBT, bef nonrecurring items Share of sales has increased by app 8 p.u Strong performance on Madrid-Barcelona with over 2 daily frequencies More dynamic aircraft allocation within the SAS Group has made it possible to increase capacity in Spanair 14 LCC unit cost level Accepted service level in business model Efficiency & simplification Current unit cost level Secure further improvement in cost position vs. LCC after completion of Turnaround Oct-Dec Jan-Dec Total revenues EBITDAR EBIT EBT EBT bef. gains

5 Widerøe best 1 st Half year result ever SAS Group Baltic presence increases Traffic down,9% but load factor up,1 p.u. during first half 25 Result improvement of MSEK 26 Widerøe competing for the public service network on tender for Result of the procurement procedure in November/December EBT, MSEK Q1 24 2Q 24 3Q 24 4Q 24 Jan-Jun Total revenues EBITDAR EBT, bef nonrecurring items airbaltic and Estonian Air carried more than,7 million passengers in the first half 25 airbaltic has opened up routes to Paris, Istanbul, Munich and Barcelona Blue1 connected with Baltic market Rezidor SAS hotels increases presence in a strategically interesting region 15 Hotels in Baltic states, Finland and Russia Blue1 - Impressive growth and result margins Result improved by MSEK 17 in 1st Half Successful domestic operations CFROI 16% Strong operational performance Traffic up 23,9% in first half Cabin factor up 1, p.p. Cabin factor on Finnish domestic 63,3% Number of passengers (12 month roling) Apr-Jun Total revenues EBITDAR EBT, bef nonrecurring items dec 3-jan 3-feb 3-mar 3-apr 3-maj 3-jun 3-jul 3-aug 3-sep 3-okt 3-nov 3-dec 4-jan 4-feb 4-mar 4-apr 4-maj 4-jun 4-jul 4-aug 4-sep 4-okt 4-nov 4-dec 5-jan 5-feb mar 5-apr may 5 5-jun Jan-Jun 2 nd Quarter improved by MSEK 75 Transaction with Carlson completed in 1 st Half Total revenues EBITDA EBT EBT, bef nonrecurring items % 7% 6% 5% 4% 4-jan Mar Maj Jul Sep Occupancy rate Nov DecJan Mar Jun 12 month rolling Strong hotel market Number of rooms sold increased RevPAR up 8,5% for comparable units 12 months occupancy rate improved 2,4 p.u. Number of operating hotels +1 to 2 Enhanced partnership with shareholder agreement with Carlson Agreement extended to MEUR in full year effect on reduced franchise fee as from July 25 Transaction confirms significant value in the Hotels PV of MEUR 131 at 9% WACC % growth PV at 4% growth MEUR 21 => Full implied value MEUR % 7% 65% 6%

6 Sum up Subsidiary & Affiliated Airlines + Hotels Airlines Continue profitable growth. Cost structure in place and in parity with best LCC s Cost disadvantage being addressed. Prepare for public service tender Strong growth and impressive profit change. Successful shift to domestic traffic. Benefit from Star Alliance link up. Cost level in place. Growth despite fierce competition with Easyjet and Ryanair. Cost level in place Hotels Improved market. Continued expansion with new brands. Develop partnership with Carlson Commercial and strategic development Our platform Turnaround 25/Further rationalization => Competitive unit cost Incorporation => Transparency and accountability New Business models => Improved cabin factor Group development 21. Braathens acquired 22: Majority stake in Spanair 23: Acquisition of 49% of Estonian Air 24: Rebranded Blue1 launched in Finland switch to domestic routes Commercial development 23: Spanair introduced one-way demand driven pricing 23: airbaltic introduced one-way demand driven pricing May 24: SAS Braathens with new domestic concept based on one-way October 24: Scandinavian Airlines introduced Economy Flex + fast track security Secure long term profitability in all group companies March 25: Launch of new Swedish domestic product September 25: One way and demand driven pricing on European and Intrascandinavian routes Business models for SAS Group airlines - three common denominators Costs Cost level for the basic product in line with the most efficient players on corresponding traffic flows Additional costs for transfer, distribution, in-flight, on-ground, network etc. should be covered by a price premium Commercial concept Price structures based on demand-driven one-way prices for simple online distribution Base product differentiated from competitors Add-on products that stimulate buy-up and ancillary revenues. Value-for-money Jørgen Lindegaard CEO Traffic system Traffic systems dimensioned for local passengers and for profitable transfer traffic Dynamic flexible traffic planning 24

7 New Europe/Intrascandinavian concept to be launched One-way demand driven pricing Simplified rules Increased availability of low fares Simplified customer friendly web More satisfied customers and increased repurchase rate 25 Sum up 2 nd Quarter Stable yields and improved load factors Turnaround 25 Focus on remaining activities Continuous improvements Commercial focus Economy Flex New Swedish domestic concept a rapid sales success New European business models - details August 19 Cautious outlook Uncertainties in the marketplace Business Plan shows positive earnings provided Unchanged yields Favorable traffic development Unchanged business environment No further significant fuel price increases 26