Third Quarter Presentation of Year end Report 2005 Stockholm and London, February SAS Group positive result 2005

Transcription

1 Third Quarter 25 positive result 25 Presentation of Year end Report 25 Stockholm and London, February EBT bef nonrecurring items MSEK 114, an improvement of MSEK Record number of passengers and record load factors Yield reductions in 4 th Quarter more than offset by improved load factors Turnaround 25 completed More to be done SEK 2 billion of new efficiency measures under implementation Jet fuel costs up by MSEK 1 7 (adjusted) Focus on core business Sale of EAG, Jetpak Group and 67% of SAS Component 2 EBT result improved by SEK 1,8 billion Introduction of New Business Model very successful October-December January-December MSEK 25 Change 25 Change Revenues EBITDAR Lease & depreciation EBIT Financial net EBT EBT bef non-recurring items Simplified rules one way prices Prices entirely demand driven Positive impact from one way experienced on Norwegian, Swedish domestic and Europe/Intrascandinavian routes Reduced yield European traffic Cabin factor 8% 7% 6% 5% One way pricing introduced 3 4% Jan Feb Mar Apr May jul Aug Sep Oct Nov Dec Europe 23 Europe 24 Europe 25 4

2 Record load factors number of passengers up by 8,% to a record 34,9 million Strong growth on European routes traffic up 14,5% on Group level in 25 Cabin factor up 4,4 p.u. to 62,9% % Scandinavian Airlines number of passengers up 8,5% and load up 8,2 p.u. to 69,7% in Q4 Yield reduction more than offset by improved cabin factor Oct Nov Dec Jan Event Business Class Overcapacity started to weaken September 11 Action Business Class Plan A Capacity reductions Basic cost reduction Turnaround 25 initiated SARS War in Iraq New competition SEK 6,7 billion of Turnaround 25 implemented Significant overcapacity in Sweden domestic, Denmark and Europe Incorporation of Scandinavian Airlines SEK 11,9 billion of Turnaround 25 implemented 27,5% 22,7% 17,6% 15,% 14,2% Fierce competition Rebounce of traffic growth Turnaround 25 completed at SEK 14,2 billion New Busines models introduced New cost adaptive measures of SEK 2 bn -5-1 Estimated Yield,7% -4,6% -13%* -22%* -23%* Unit cost 3% 1,6% -12%* -26%* -3% to -35%* vs Load change Yield 6 * = Accumulated base 22 From the Swedish marketing campaign Gunilla Berg CFO Strongest Improvements improvement in airlines in Scandinavian hotels Airlines Businesses Oct-Dec Jan-Dec MSEK 25 Change 25 Change Subsidiary & Affiliated Airlines Airline Support Businesses Airlines Related Businesses Hotels Group eliminations, other EBT bef nonrecurring items

3 Still challenges in Scandinavian Airlines Businesses Turnaround Improvements Turnaround in completed airlines close and to to completion 1% hotels Oct-Dec in MSEK Scandinavian Airlines Denmark Scandinavian Airlines Sweden Scandinavian Airlines International Revenues EBITDAR EBT bef nonrec Most comprehensive program in the SAS Group s history Savings of SEK 14,2 billion completed More than 1 3 activities 5 5 FTE s reductions More than 3% reduction in unit cost Positive result effect in 26 app SEK 1,7 billion Jan-Dec in MSEK Revenues EBITDAR EBT bef nonrec Unit cost development, 1,,9,8 9 1,7 Q42 Q13 Q23 Q33 Q43 Q14 Q24 Q34 Q44 Q15 Q25 Q35 Q45 SEK 2 billion of new measures under implementation Estimated result effect, MSEK Productivity 7 (partly dependent on changes in collective agreements) Block hours F/D 7 h C/A 75 h Ground and technical services 7 Productivity (part time) Leaner mgmt Line and Heavy Maintenance Simplified product Reduced component costs Administration and sales 6 IT Call centers Overhead Sales organization Structural cost measures of MSEK 2 under implementation Strong operating cash flow and improved financial position Investments: Financial net debt: -44% vs 24-18% vs 24 (SEK 3,1bn) to MSEK to MSEK Cash flow from operating activities: MSEK in 25 Adjusted debt/equity: -27 p.u. vs 24 to 29% 11 12

4 Fuel, Improvements capacity and in yield airlines assumptions and hotels for Fuel costs (MSEK) 1 2 (at current forward prices) ASK up 3-4% Jørgen Lindegaard CEO From the Danish marketing campaign 26 Yield down ASK -2% to -3% Load factor up Capacity 26 vs 25 Scandinavian Airlines Danmark -4% SAS Braathens +5% Scandinavian Airlines Sverige -8% Scandinavian Airlines International -4% Subsidiary & Affiliated Airlines Capacity 26 vs 25 Spanair 1% Blue1 7% Widerøe 5-7% airbaltic 25% 13 Subsidiary & Affiliated Airlines profitable but weak 4 th Quarter Improved underlying profitability and profitable expansion Oct-Dec in MSEK Revenues ,1% 714 6,1% ,3% EBITDAR EBT bef nonrec Jan-Dec in MSEK Revenues ,6% ,1% ,5% EBITDAR EBT bef nonrec Oct-Dec Jan-Dec Total revenues EBITDA EBT EBT, bef nonrecurring items Strong hotel market Number of rooms sold increased RevPAR up 11% for comparable units Occupancy rate improved 3,4 p.u. 27 new hotels opened in 25. Total number of hotels now 217 Enhanced partnership through shareholder agreement with Carlson Transaction confirms significant value in the Hotels Subsidiary & Affiliated Airlines 15 Rezidor SAS 16 Radisson SAS, Frankfurt

5 New growth initiatives in 26 Financial targets still to be met Scandinavian Airlines still a challenge Blue1 opens up 9 new routes to European destinations out of Helsinki Spanair with new routes from Alicante, Palma Mallorca, Malaga, to Copenhagen and Stockholm airbaltic with new routes from Riga and Vilnius with competitive prices Rezidor expected to open more than 3 new hotels in 26 The s income and long term target achievement for 12 months 25 Negative Positive Target 25 result result achieved Scandinavian Airlines Danmark SAS Braathens Scandinavian Airlines Sverige Scandinavian Airlines International Spanair Widerøe Blue1 SAS Ground Services SAS Technical Services SAS Cargo Group SAS Flight Academy Rezidor SAS Still a challenge with Scandinavian Airlines Businesses cost position and profitability New cost measures in Scandinavian Airlines Businesses and STS, SGS will complete the incorporation process to secure competitiveness Trend of more nonstop flights from Norway and Sweden Key factor to achieve profitability in and resolve historical structural anomalies 19 Key Benefits Full transparency Adaptation to national legal and market conditions Reduce complexity from multinational structure Time to market Decentralized accountability Achieve market productivity targets (pilot block hours) Simplified scheduling Minimize passive transfer Improved flexibility Norway international non stop routes from Oslo international non stop routes from Oslo 328 freq/week Norwegian 12 freq/week Ryanair 56/freq/week Lufthansa 42 freq/week Sterling 41 freq/week 2 Sweden international non stop routes from Stockholm/Gothenburg international non stop routes from Stockholm/Gothenburg 611 freq/week Ryanair 116 freq/week Finnair 82 freq/week Lufthansa 64 freq/week Sterling 24 freq/week

6 Service level will become more individually adjusted Three pillars of the competitiveness Added services Attractive products/ services which can be Next added phase to base product to adjust product to customers individual preferences Base product Attractive basic offer Few restrictions Price follows demand 21 Further segmentation of product next phase Simplification of basic product Additional services features to further adjust product offer according to customer s preferences Cost Turnaround 25 New cost adaptive measures Cost at market levels 22 Incorporation of Businesses units Transparency Local adaption Flexibility Time to market New Business Models One way pricing Demand driven Internet Sum up Turnaround 25 fully completed First profitable year since 2 Record load factors and number of passengers Introduction of new Business Models Dynamic traffic planning Cost adaptation measures of appr SEK 2 billion More to be done Uncertainties in marketplace 26 Stable market growth 3-5% New Business Model with improved load and reduced yield More commercial initiatives in pipeline 23

7 Commercial initiatives with customer focus and value for money Flat beds being introduced on intercontinental routes Additional slides for further information Copenhagen London City 2 daily Stockholm- London City 2 daily SAS Braathens opens 12 new routes in March More commercial initiatives to be introduced during 26: Improved homepage Loyalty programs improvements Customer concept Business Areas as from 26 From business units to limited companies Closer to local markets Improved accountability Business models for airlines -three common denominators Commercial concept Traffic system Change Price structures based on demand-driven oneway prices for simple online distribution Differentiated base product Add-on products that stimulate buy-up and ancillary revenues Value-for-money Traffic systems dimensioned for local passengers and for profitable transfer traffic Dynamic flexible traffic planning Costs Cost level for basic product in line with most efficient players Additional costs for transfer, distribution, in-flight, on-ground, network etc. to be covered by a price premium 27 28

8 Group Revenue Fundamental with competitive cost position and profitability to secure capability to invest Revenues growing in major business areas Examples Support, Related and Hotels Hotels Strategic platform Profitability Investments 6 5,5 5 4,5 4 3,5 3 2,5 2 1, , ,5 13 5,5 4,6 Jan-Dec 5 Jan-Sep 4 14,9 14,2 Airline Support Businesses Group revenue Airline Related distribution Businesses Scandinavian Airlines Businesses 38 37, , , , ,5 33 Airlines Businesses 36,7 35,7 Jan-Dec 5 Jan-Dec 4 12,5 12 Jan-Dec 5 Jan-Dec , ,5 Competitive cost position 3,5 3 2,5 2 1,5 1,5 1,6 2,9 Subsidiary & Affiliated Airlines 13 12, , ,4 11,9 Jan-Dec 5 Jan-Dec 4 Jan-Dec 5 Jan-Dec Revenue seasonality pattern EBITDAR and CFROI improved MSEK Revenue ,5% EBITDAR % EBITDAR-margin 9,9% 7,7% +1,2 p.p. CFROI 13% 9% +4 p.p. jan feb mar apr maj jun jul aug sep okt nov dec 31 32

9 Strong Improvements Financial operating position in cash airlines improved flow and and improved hotels financial position Result development EBT before gains and nonrecurring items Jan-Dec Jan-Dec Cash flow from operating activities Investments Equity/Assets 21% 19% Gearing 118% 157% (Debt/Equity ratio) MSEK Q1 Q2 Q3 Q Positive trend since 21 in the 4 th Quarter Improvements in airlines and hotels EBITDAR improved by MSEK MSEK, EBT before gains and nonrecurring items Q 23 1Q 24 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 3Q 25 4Q 25 EBITDAR in 25 was (4 468) MSEK EBITDAR distribution Scandin Airl MSEK Spanair 1 46 MSEK Widerøe 334 MSEK Blue1 28 MSEK -2 5 EBITDAR (12 months rolling) EBIT (12 months rolling) Q1 Q2 Q3 Q Subsidiary & Affiliated Airlines 36

10 EBIT-margin gradually improving Record number of passengers and load factor Revenues MSEK EBIT-margin 17 1,% 16 5,% 15 14,% 13-5,% 12-1,% ,% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Q1 Q2 Q3 Q Revenues EBIT-margin Passengers Load factor 67% 67% 66% 66% 65% 65% 64% 64% 63% 63% 62% 62% Number of passengers grew by 17% in 4 th Quarter and 8,% in 25 Very strong growth in many Group airlines 39 8,% 6,% 4,% 2,%,% -2,% -4,% -6,% -8,% 3-nov 4-jan Passenger growth (12-month rolling) 4-mar 4-maj 4-jul 4-sep 4-nov 5-jan 5-mar 5-may 5-jul 5-sep 5-nov Number of passengers (12 month-rolling) % Passenger growth in 25 vs 24 76,1% airbaltic Blue1 Spanair SK Sverige SAS Braathens SK International Widerøe 34,9 million passengers in 25 - new record SK Danmark

11 Hedging strategy reduced jet fuel costs in 25 by MSEK 75 Record high jet fuel prices Passengers growing most airlines 7, 6, jan-3 mar-3 maj-3 jul-3 sep-3 nov-3 jan-4 mar-4 maj-4 jul-4 sep-4 nov-4 jan-5 mar-5 maj-5 jul-5 sep-5 nov-5 jan-6 5, 4, 3, As from September part of ticket price and yield management (except intercontinental) Average market prices: USD/MT USD/MT USD/MT USD/MT USD/MT USD/MT Q USD/MT Q USD/MT Q USD/MT Q USD/MT Hedge levels (including premiums): 43% hedged for 26 by February 26: 64 USD/MT 2, Business areas

12 Scandinavian Airlines statement of income EBITDAR has improved every Quarter in 25 October-December January-December MSEK Change Change Revenues Operating expenses EBITDAR Lease EBITDA Depreciation Income from sales/affiliated EBIT EBITDAR, Scandinavian Airlines MSEK EBT EBT bef. nonrecurring items Q1 Q2 Q3 Q Key airline profitability drivers improving Scandinavian Airlines Danmark strong cabin factor improvement partly offset by yield reduction 25 vs 24 October-December 25 vs 24 January-December Traffic (RPK) up 5,3% up,2% Cabin Factor up 8,2 p.u. up 3,7 p.u. Yields (currency adjusted) down 7,8% down,3% Total unit costs down 1,7% down 1,7% Fuel adjusted unit cost down 4,5% down 5,4% First signs of reduced overcapacity in the home market Impact from introduction of one way fares obvious in 4 th Quarter Traffic up 11,9% Capacity down 14,7% Cabin factor up 15,9 p.u. to 66,6% Yield down 17,1% Oct-Dec Jan-Dec Total revenues EBITDAR EBT Group Scandinavian Airlines Operations Subsidiary & Affiliated Airlines Airline Support Airline Related Business Hotels 48

13 SAS Braathens profitability strongly improved in 25 careful growth planned in 26 Scandinavian Airlines Sverige positive 4 th Quarter Earnings improved by MSEK 625 One AOC established Traffic up 4,8% vs 24 Cabin factor up 2,9 p.u. Over 4% internet bookings on domestic routes Capacity increasing by one aircraft as from March 26 Many pilots on sick leave in January 26 had a negative effect of MSEK 7 SAS Braathens has increased number of international destinations from Norway from 23 to 46 since 26 Year characterized by fierce competition on Swedish domestic routes 4 th Quarter profitable before restructuring costs Traffic down by 1,7% vs 24 Traffic up in 4 th Quarter by 7,8% Turnaround 25 completed New cooperation with City Airlines as from March 26 will improve service to/from Gothenburg 8% 75% Oct-Dec Jan-Dec Total revenues EBITDAR EBT, bef nonrecc Oct-Dec Jan-Dec Total revenues EBITDAR Load factor 7% 65% 6% Market share EBT, bef nonrecurring items % 5% 5% Jan Feb Mar Apr May jul Aug Sep Oct Nov Dec Load factor 23 Load factor 24 Load factor 25 Market share Scandinavian Airlines International New yield systems introduced developed to for one way pricing EBT -43 MSEK in 25 Focus on further cost adaptive measures on intercontinental operations Several product improvements Internet onboard all aircraft Flat bed introduced 1 st Quarter 26 IATA customer survey shows SAS has third most satisfied customers of all airlines on USA routes Oct-Dec Jan-Dec Total revenues EBITDAR EBT, bef nonrecc New yield management system (Optimix) developed based on one way fares Optimizing leisure fare Buy up in economy Automatic price elasticity Developed and tested by SAS since July 24 All flights individually profile steered according to expected demand System has successively and successfully been rolled out since May Introduced on all European routes during the summer 25 Elasticity Ticket prices 51 52

14 Yield reduction in second half 25 compensated by improved cabin factor Personnel development months rolling 1,3 1,25 1,2 1,15 1,1 1,5 1, dec-3 jan-4 feb-4 mar-4 apr-4 maj-4 jun-4 jul-4 aug-4 sep-4 okt-4 nov-4 dec-4 jan-5 feb-5 mar-5 apr-5 maj-5 jun-5 jul-5 aug-5 sep-5 okt-5 nov-5 dec-5 North Atlantic cabin factor stronger than North AEAAtlantic cabin factor above AEA JAN- 3 APR JUL OKT JAN- 4 Actual Strong traffic increase on Asian routes APR JUL OKT JAN- 5 Plan APR JUL OKT %, RPK vs. Last year %, Cabin factor January March May July September November January March Week May July September SAS AEA 55 November January March May July September November Daily departures to/from New York, Washington DC, Chicago, Seattle from Copenhagen Daily departures to/from New York and Chicago from Stockholm Compared with 24 capacity has been reduced to New York and Washington DC resulting in improved cabin factors and slightly lower volumes Positive mix in first half Traffic in Jan-Dec 25: European airlines (AEA) traffic up 2,1% SAS traffic down 7,1% Strong USD and fuel charges %, RPK vs. Last year %, Cabin factor Week SAS AEA 56 January April July October January April July October January April July October January April July October Capacity increased on Bangkok/Singapore and Shanghai compared with last year Business Class has increased on Shanghai by more than four times Overcapacity on some routes After weak start of the year traffic has improved in the second quarter Traffic in Jan-Dec 25: AEA traffic up 12,1% SAS traffic up 15,9%

15 Cabin factor over AEA on European routes ECA North agreement Atlantic expires cabin 27 factor above AEA %, RPK vs. Last year %, Cabin factor January March May 1 9 July September November January March May July September November January March SAS AEA May July September November Severe overcapacity on some routes Scandinavian Airlines has reduced its capacity by 7,7% vs 24 Scandinavian Airlines introduced one way fares in September which significantly has improved cabin factor further Traffic Jan-Dec 25: AEA traffic up 6,4% SAS traffic up 1,5% 58 Tri-party Joint Venture agreement with BMI, Lufthansa and SAS signed November 9, 1999 In effect from January 1, 2 Main scope: To integrate the parties scheduled pass. transport to/ from London/ Manchester Negative result effect 22: MSEK 418 (335) Negative result effect 23: MSEK 244 Negative result effect 24: MSEK 134 Negative result effect 25: MSEK 415 Result effect 1st Quarter 25: MSEK 64 (-71) Result effect 2nd Quarter 25: MSEK 27 (45) Result effect 3rd Quarter 25: MSEK 92 (-62) Result effect 4th Quarter 25: MSEK 52 (-46) Weak 4 th Quarter due to restatement of Spanair and weak Quarter in Widerøe October-December January-December MSEK Change Change Revenues Operating expenses EBITDAR Lease EBITDA Depreciation Income from sales/affiliated EBIT Subsidiary & Affiliated Airlines 6 EBT EBT before gains and nonreccuring items Subsidiary & Affiliated Airlines

16 Spanair profitable in 25 Weak 4 th Quarter in Widerøe Robust traffic development in the market Oct-Dec Jan-Dec Two new destinations and six new routes opened in 25 Total revenues Number of passengers up 21,4% in 25 EBITDAR th Quarter negatively affected by previous accounting errors by MSEK 8 Strong corporate sales development EBT, bef nonrecurring items More dynamic aircraft allocation within the has Restated result made it possible to increase capacity in Spanair Passengers 12 months rolling 7 Traffic down,7% compensated by capacity reductions Result negatively affected in the 4 th Quarter by a conflict with the technicians by appr MSEK 35 Widerøe won 11 of 16 routes in a tender for the Norwegian short runway system in the period April 26 to March 29 EBT, MSEK Oct-Dec Jan-Dec Total revenues EBITDAR EBT, bef nonrecurring items jan 5-feb 5-mar 5-apr may-5 5-jun 5-jul 5-aug 5-sep oct-5 5-nov 5-dec 6-jan Spanair Subsidiary & Affiliated Airlines Q1 24 2Q 24 3Q 24 4Q 24 Jan-Dec Subsidiary & Affiliated Airlines Significant improved result and growth in Blue1 Blue1 growing as from March 26 with 9 new destinations Number of passengers (12 month roling) Oct-Dec Jan-Dec Total revenues EBITDAR EBT, bef nonrecurring items Result improved by MSEK 16 vs last year Successful domestic operations CFROI 21% Strong operational performance Passengers up 27,8% in 25 Cabin factor up 11,2 p.p. Cabin factor on Finnish domestic 66,% 5,% 4,% 3,% 2,% Develops business opportunities in the Finnish market Blue1 well recognized as a Finnish airline Blue1 gaining market shares within and to/from Finland Blue1 phasing in 3 MD 9 as from March with 11 new destinations Aten, Barcelona, Dublin, Düsseldorf, London, Madrid, Nice, Paris, Rom, Warszawa and Zürich ASK expected to increase by 7% in 26 Corporate sales increasing 1,% Subsidiary & Affiliated Airlines 63,% 5-jan 5-feb 5-mar 5-apr may-5 5-jun 5-jul 5-aug 5-sep oct-5 5-nov 5-dec 6-jan Subsidiary & Affiliated Airlines 64

17 airbaltic and Estonian Air show strong growth The holds 49% in Estonian Air and 47,2% in airbaltic Estonian Air number of passengers up 18% in 25 airbaltic traffic up 15,3% and passengers up 76,1% Both airlines compete successfully with Ryanair and Easyjet which have entered the market in 25 Number of passengers Estonian Air Number of passengers airbaltic Feb Apr Aug Okt Dec Feb Apr Aug Oct Dec Feb Apr 12 month rolling Month Subsidiary & Affiliated Airlines Aug Oct Dec Dec Mar Sep Dec Mar Sep Dec Mar Sep Dec 12 month rolling Monthly figures Airline Support Businesses Airline Support Businesses All companies within Airline Support Businesses profitable in 25 October-December January-December MSEK Change Change Revenues Operating expensives EBITDA Oct-Dec in MSEK EBT, bef nonrec Depreciation EBIT EBT Jan-Dec in MSEK EBT, bef nonrec Airline Support Businesses 67 Airline Support Businesses 68

18 Airlines Related Businesses - Jetpak and EAG sold in 4 th Quarter October-December January-December MSEK Change Change Revenues Operating expenses EBITDA Depreciation Capital gains EBIT EBT Airline Related Businesses Airline Related Businesses 7 Significant improved occupancy rate 8% 75% 7% 7% 6% 5% 65% 4% 2-jan Mar Sept Occupancy rate 3-jan Mar Sept 4-jan Mar Sep 12 month rolling Jan Mar Sep 6% Rezidor SAS 71 72

19 RevPAR improves RevPAR (EUR), 12 months rolling value Financial update 55 5 jun-2 jun-3 jun-4 jun-5 Rezidor SAS 73 Group Mainline Airline Operations Subsidiary & Affiliated Airlines Airline Support Business Airline Related Business Hotels 74 Balance sheet Limited CAPEX MSEK 31 Dec 5 31 Dec 4 Liquid funds Aircraft, spare parts Other assets Total assets Operating liabilities Interest-bearing liabilities Deferred tax Equity Total liabilities and equity Firm Aircraft Orders Total Airbus A Boeing Number of aircraft CAPEX (MUSD) Financial net debt

20 has amortized MSEK of utilized facilities in 25 CAPEX holiday continues MSEK Liquid Funds December 31, Available Credit Facilites: Revolving Credit Facility (MEUR 4) Bi-lateral Facilities 2 96 Others 321 Total Available Facilities Total Available Funds Available facilities MSEK Utilized facilities MSEK 2 23 Total facilities MSEK Key financial ratios and future targets MSEK F 27F Amortization profile of interest bearing liabilities Key figures Dec 5 Dec 4 Target Equity/assets ratio (solidity) 21% 19% >3% Financial net debt/ equity 118% 157% <5% Fin. net debt+7*oplease/ equity 29% 317% <1% Revolving credit facility Targets will be reached by: Turnaround 25 Capital Release: Aircraft Surplus and phase-outs Other Assets (Properties, non-core subsidiaries etc) Cash flow from operations 79 8

21 Financial Net January-December 25 Financial Net October-December 25 (MSEK) Difference (MSEK) Q4-25 Q4-24 Difference Interest net and others Exchange rate differences Interest net and others Exchange rate differences Financial net Financial net Development and Break Down of Financial Net Debt December 31, 25 Development of financial net debt (MSEK) Difference Cash Other interest bearing assets Interest bearing liabilities Financial Net debt

22 Equity/Assets ratio Development of financial net debt/equity Ratio % 45% 4% 35% 3% 25% 2% 15% 1% 5% % ,5 2,3 2, 1,8 1,5 1,3 1,,8,5,3, Gearing ratios going down Cash flow from operations improved by MSEK 1 98 in 25 35% 3% 25% 2% 15% 1% 5% % dec- 98 dec- 99 Net Debt / Equity dec- dec- 1 Equity / Total Assets dec- mar- jun sep- 3 dec- mar- jun sep- 4 Fin Net Debt / Equity dec- mar- jun- sep- dec Fin. Net Debt + 7*Op lease / Equity October-December January-December MSEK Change Change Cash flow from operations Change in working capital Net financing from operations Investments, adv. payments Acquisitions/sale of subsidiaries (net) Sale of fixed assets etc Financing deficit/surplus Change in external financing Cash flow from the period Translation diff in liquid assets Change in liquid asset

23 Credit postion Sum up Strong liquidity of MSEK Substantial Committed credit facilities of MSEK Limited CAPEX in 26 Streamlining of Group Turnaround 25 completed New cost adaptive measures under implementation of SEK 2 billion Positive cash flow from operations Loss carry forward will improve tax position APPENDICES Traffic Data Yield Unit cost Fleet Financial key figures 89 9 Yield development 25 vs 24 Improved load factors compensating lower yield Total Scheduled Jan-Dec Change 8% 7% 1,3 1,3 1,2 Yield (öre/rpk) 112,5 11,2 2,1% Currency adj. yield 112,5 112,8 -,3% 6% 5% 1,2 1,1 1,1 Oct-Dec Change Yield (öre/rpk) 118,7 121,7-2,4% Currency adj. yield 118,7 128,8-7,8% 4% 3-nov 4-jan 4-mar 4-maj 4-jul 4-sep 4-nov 5-jan 5-mar 5-may 5-jul 5-sep 5-nov 1, Load factor Yield (12 months rolling) 91 92

24 Yield development Scandinavian Airlines Businesses Passenger yield January-December 25 % Q1 vs 23 Q2 Q3 Q4 Q1 vs 24 Q2 Q3 Q4 Yields down 9,1% in 24 Yields down,6% in 1st Quarter 25 Yields up 7,8% in 2 nd Quarter 25 Yields down,6% in 3 rd Quarter 25 Yields down 7,8% in 4 th Quarter Nominal Currency Adjusted Route Sector yield effect yield Scandinavian Airlines Busin Intercontinental Europe Intrascandinavian Denmark Norway Sweden vs vs Passenger yield October-December 25 Yield development 25 vs 24 Nominal Currency Adjusted Route Sector yield effect yield Scandinavian Airlines Busin Intercontinental Europe Intrascandinavian Denmark Norway Sweden Yield, local currency Oct-Dec Jan-Dec 4,9% 4,2% 5,% 2,% -,7%,% 95 Subsidiary & Affiliated Airlines 96

25 Unit cost development Unit cost down in 5,4% in 25 adjusted for fuel Total unit cost, 2% % -2% -4% -6% -8% -1% -12% -14% -16% -18% 1st Q 23 3rd Q 23 1st Q 24 3rd Q 24 1st Q 25 3rd Q 25 Unit cost down 1,9% in 24 Unit cost down 3,9% in Q1 Adjusted for fuel unit cost was down by 7,5% Unit cost down,9% in Q2 Adjusted for fuel unit cost was down by 5,5% Unit cost up 1,4% in Q3 Down 2,8% adjusted for fuel Unit cost down 1,7% in Q4 Down 4,5% adjusted for fuel Bock hours overview Key productivity ratios 12 months rolling Jan-Dec 5 Air craft/day Pilots/year Cabin/year 8, Spanair Widerøe Blue1 8,1 6,7 8, airbaltic 8, Aircraft utilization (12 month roling) 8,5 8 7,5 7 6,5 6 5,5 5 Dec Feb Apr Aug Oct Dec Feb Apr Aug Oct Dec Cabin, pilot utilization (12 month roling) Dec Feb Apr Aug Oct Dec Feb Apr Cabin crew Pilots Aug 99 1

26 Self Service check in and internet check close to 5% Share of e-ticket growing significantly -over 6% Internet check low, but increasing 55% 5% 45% 4% 35% 3% 25% 2% Automat Automat+internet % 7% 6% 5% 4% 3% 2% Jan Feb Mar Apr May Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May jul Aug Sep Scandinavian Airlines Blue1 Spanair Widerøe Key airline profitability drivers 25 vs 24 Long term passenger cabin factor trend positive Long term targets achievable January-December Traffic growth (RPK) up,2% Cabin Factor up 3,7 p.u. Yields down,3% Unit costs incl A/C cost down 1,7% October-December Traffic growth (RPK) up 5,3% Cabin Factor up 8,2 p.u. Yields down 7,8% Unit costs incl A/C cost down 1,7% Moving 12 months values 69% 68% 67% 66% 65% 64% 63% DEC94 DEC95 DEC96 DEC97 DEC98 DEC99 DEC DEC1 DEC2 DEC3 DEC4 DEC

27 Weaker USD in the beginning of 25 has had a positive effect on costs Currency effect January-December 25 vs MSEK Jan-Dec Total revenues Total costs Forward cover costs & working cap. -12 Income before depr Financial items +31 Income before tax Currency effect January-December 25 vs 24 Currency effect October-December 25 vs 24 Total revenues & costs: (Total +255 MSEK) Major approx. effects: USD -88 DKK -29 NOK +31 EUR +52 Asian curr. -3 All others +13 Forward cover costs: (Total +299 MSEK) Working capital: (Total -311 MSEK) Financial items: (Total +31 MSEK) Grand total +274 MSEK 18 MSEK Oct-Dec Total revenues +874 Total costs -1 6 Forward cover costs & working cap. +57 Income before depr. -75 Financial items +24 Income before tax -51

28 Currency effect October-December 25 vs 24 Currency distribution in the 25 Total revenues & costs: (Total 132 MSEK) Major approx. effects: USD -317 DKK -27 NOK +13 EUR +34 Asian curr. +22 All others +26 Forward cover costs: (Total +225 MSEK) Working capital: (Total 168 MSEK) Financial items: (Total +24 MSEK) Grand total 51 MSEK NOK 28% Revenues GBP 5% SEK 21% EUR 24% USD 7% Others 4% DKK 11% SEK 18% NOK 19% Expenses GBP 3% USD 26% EUR 18% Others 2% DKK 14% fleet December 25 SAS share

29 Development of Market Capitalization - up 74,2% in 25 SAS share up significantly more than index during jan-3 maj-3 sep-3 jan-4 maj-4 sep-4 jan-5 maj-5 sep-5 jan-6 SAS Market Capitalization vs. European Peers measured in SEK (December 31, 24 - December 31, 25) 18, 17, 16, 15, 14, 13, 12, 11, 1, 9, 8, 7, 3- jan-5 3- feb-5 3- mar-5 3- apr julmaj-5 jun-5 5 Index peers aug-5 sep-5 okt-5 Index SAS 3- nov-5 3- dec-5 174,2 132,2 * Peers: Alitalia, Air France, British Airways, Easyjet, Finnair, Lufthansa & Ryanair Number of SAS trades share up 5% in January Number of shares traded in SAS per month February March April May e July August September October November December 115