INTERIM REPORT FOR Q4 2012 AND INTERIM REPORT FOR Q4 2012 AND PRELIMINARY ACCOUNTS FOR 2012
HIGHLIGHTS
Q4 with growth in volume and improved normalized EBITDA MNOK 261 improvement in normalized EBITDA from 2011 Pre-tax loss of NOK 278 million in Q4 adjusted for one offs (net negative one offs of MNOK 75) Accounted pre-tax loss NOK 353 million Normalized EBITDA of NOK -85 million Cruise revenue for Norwegian coast higher than Q4 2011 Number of cruise nights from port to port traffic +13.6% Number of cruise nights from round trips +3.6% Net ticket revenue -7.2% 72% Improved regularity positive for port to port traffic Positive development in on board sales including excursions Fuel costs up by 29% Pre-tax loss of NOK 122 million in 2012 adjusted for one offs (net negative one offs of MNOK 188) Accounted pre-tax loss NOK 310 million Normalized EBITDA of NOK 538 million Page 3
Hurtigruten group income statement Hurtigruten group Q4 Q4 Year to date Year to date (NOK 1 000) 2012 2011 2012 2011 Operating revenues 584 616 529 925 3 485 752 3 268 966 Operating expenses 654 109 648 493 3 036 142 2 970 699 Other losses/(gains) - net -588-85 020-9 800-83 320 EBITDA -68 904-33 548 459 410 381 587 Depreciation & impairment losses 112 776 131 471 411 350 422 821 EBIT -181 681-165 019 48 060-41 234 Net financial items -49 081-45 301-222 194-166 922 Share of profit/loss of associates -2 642-2 362-2 343 2 352 Profit (loss) before tax for continued business -233 403-212 682-176 477-205 804 Profit (loss) before tax for discontinued business -119 381-43 652-133 861 53 112 Net profit (loss) before tax -352 784-256 335-310 339-152 692 Page 4
Significant reduction in balance risk going forward - NOK 188 million in net negative one offs in 2012 Provision of NOK 108 million after loss in EFTA-court Settlement on the charter contract for MS Finnmarken with a loss of NOK 99 million Impairment losses of NOK 16 million for MS Nordstjernen and fast ferries Insurance settlement for MS Nordlys with an accounting effect of net NOK 28 million Page 5
Increased demand in Q4 +13.6% in port to port volumes +3.6% in roundtrip volumes 180 000 160 000 140 000 120 000 100 000 80 000 60 000 40 000 20 000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2011 2012 Q4 Cruise nights from both round trip and port to port, Norwegian coast Page 6
More capacity, higher volume but lower utilization - 12.2 % increased capacity in Q4 from MS Finnmarken replacing MS Nordstjernen and 11 ships during winter Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec UTILIZATION tot. CAPACITY UTILIZATION 2012 vs 2011 0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % 2012 2011 100% without MS Finnmarken Page 7
Operating costs under control - Reflects higher h volume - Fuel costs affected by increased oil price S, G & A Fuel Crew costs Other operating costs Onboard Guest related costs 0 20000 40000 60000 80000 100000 120000 140000 NOK in thousand Q4 2011 Q4 2012 Costs for product area Norwegian coast Q4 S,G&A = Sales, general and administration cost Page 8
Net ticket revenue per cruise night in Q4 and 2012 +13.6% -7.2% Q4 YTD 2011 2012
Improved operations in 2012 Positive impact on port to port traffic No of cancelled ports 250 200 150 100 50 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 2011 2012 Page 10
Fuel costs Hurtigruten increased by NOK 99 million from 2011 to 2012 Price development SDM 7,5 6,5 5,5 4,5 3,5 Price per liter 2,5 1,5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2005 2006 2007 2008 2009 2010 2011 2012 2013
Focus on on board sales and excursions gives results - Food and beverage sales up by 11% and excursion sales up by 34% in Q4 2012 Excursion sales in Q4 Okt Nov Des From 17 excursions in 2006 to 42 excursions in 2012 From 1.9 excursions per guest in 2006 to 3.2 excursions per guest in 2012 Page 12
ACCOUNTS Q4 2012 AND PRELIMINARY YEAR 2012
Hurtigruten group income statement Hurtigruten group Q4 Q4 Year to date Year to date (NOK 1 000) 2012 2011 2012 2011 Passenger ticket revenues 216 314 214 486 1 969 348 1 810 101 Onboard revenues 55 325 49 263 375 871 373 630 Goods, cars and other revenues 101 131 162 599 393 041 546 909 Contractual revenues 211 846 103 576 747 491 538 326 Total revenues 584 616 529 925 3 485 752 3 268 966 Commissions, transportation and other 58 002 49 728 427 329 452 521 Onboard 41 803 37 260 258 694 263 356 Crew costs 156 192 184 702 737 755 780 732 Fuel 119 514 92 297 466 880 367 561 Other cruise operating costs 140 163 150 410 618 839 614 134 Total cruise operating costs 515 674 514 398 2 509 497 2 478 303 S, G & A 138 435 134 095 526 646 492 396 Total operating costs 654 109 648 493 3 036 142 2 970 699 Other losses/(gains) - net 588 85 020 9 800 83 320 EBITDA -68 904-33 548 459 410 381 587 Depreciation 99 914 82 174 379 444 333 617 Impairment losses 12 862 49 296 31 906 89 204 EBIT -181 681-165 019 48 060-41 234 Net financial items -49 081-45 301-222 194-166 922 Share of profit/loss of associates -2 642-2 362-2 343 2 352 Profit (loss) before tax for continued business -233 403-212 682-176 477-205 804 Profit (loss) before tax for discontinued business -119 381-43 652-133 861 53 112 Net profit (loss) before tax -352 784-256 335-310 339-152 692 Page 14
Hurtigruten group Normalized result Normalized Normalized Year to date Normalized Normalized (NOK 1 000) Q4 2012 One off's Q4 2012 Q4 2011 2012 One off's YTD 2012 YTD 2011 Hurtigruten Norwegian coast -66 667-23 627-90 294-142 923 375 270 79 853 455 122 159 332 Explorer products -1 241 927-314 1 144 40 943 434 41 377 43 304 Spitsbergen -2 672 - -2 672-2 076 17 125-17 125 23 876 Other business 1 676 7 539 9 215-629 26 072-1 516 24 556 50 418 EBITDA -68 904-15 161-84 065-144 484 459 410 78 771 538 181 276 930 Depreciation 99 914-99 914 82 174 379 444-379 444 333 617 Impairment losses 12 862-5 170 7 692 7 696 31 906-24 214 7 692 7 696 EBIT -181 681-9 991-191 672-234 355 48 060 102 985 151 045-64 383 Net financial items -49 081-13 764-62 845-45 301-222 194-13 764-235 958-166 922 Share of profit/loss of associates -2 642 - -2 642-2 362-2 343 - -2 343 2 352 Profit/loss continued business -233 403-23 755-257 158-282 018-176 477 89 221-87 256-228 953 Profit/loss discontinued business -119 381 99 000-20 381 2 348-133 861 99 000-34 861 99 112 Profit/loss before tax -352 784 75 245-277 539-279 671-310 339 188 221-122 118-129 841
Hurtigruten group Balance sheet (NOK 1 000) 31.12.2012 01.01.2012 Assets Tangible non-current assets 3 748 690 3 851 087 Intangible non-current assets 359 130 272 311 Financial non-current assets 239 289 245 132 Current assets 923 871 1 598 021 Assets held-for-sale 0 60 384 Total assets 5 270 980 6 026 936 Equity and liabilities Paid-in capital and retained earnings 813 946 1 225 540 Minority interests 346 327 338 574 Total equity 1 160 273 1 564 114 Non-current liabilities 2 883 074 2 455 508 Provisions 143 381 134 562 Current liabilities 1 084 251 1 802 751 Liabilities on assets held-for-sale 0 70 000 Total liabilities 4 110 707 4 462 822 Total equity and liabilities 5 270 980 6 026 936 Page 16
Product information Operating profit before depreciation (EBITDA) Hurtigruten group Q4 Q4 Year to date Year to date (NOK 1 000) 2012 2011 2012 2011 Hurtigruten Norwegian coast -66 667-103 987 375 270 204 102 Explorer products -1 241 1 144 40 943 45 650 Spitsbergen -2 672-7 076 17 125 4 417 Other business 1 676 76 371 26 072 127 418 EBITDA -68 904-33 548 459 410 381 587 Page 17
Hurtigruten Norwegian coast Hurtigruten Norwegian coast Q4 Q4 Year to date Year to date (NOK 1 000) 2012 2011 2012 2011 Passenger ticket revenues 167 548 157 221 1 682 603 1 554 205 Onboard revenues 54 214 47 737 374 430 366 118 Goods, cars and other revenues 58 580 106 858 157 525 202 969 Contractual revenues 181 005 49 637 618 784 325 271 Total revenues 461 347 361 453 2 833 342 2 448 563 Commissions, transportation and other 45 262 30 325 345 931 373 043 Onboard 39 876 36 346 249 431 250 527 Crew costs 115 733 115 310 554 029 519 906 Fuel 110 171 84 157 429 848 338 098 Other cruise operating costs 94 966 81 589 418 326 334 864 Total cruise operating costs * 406 008 347 728 1 997 566 1 816 438 S, G & A 121 659 117 713 460 160 428 062 Total operating costs 527 667 465 441 2 457 725 2 244 501 Other (losses)/gains - net -347 0-347 40 EBITDA -66 667-103 987 375 270 204 102 * Includes harbour costs, repair & maintenance, insurance and other operating costs Page 18
Explorer products/spitsbergen* Consolidated Explorer products & Spitsbergen Q4 Q4 Year to date Year to date (NOK 1 000) 2012 2011 2012 2011 Passenger ticket revenues 49 264 57 062 286 999 255 799 Onboard revenues 3 425 3 160 15 002 15 483 Other operating revenues 18 459 20 823 138 722 131 463 Total revenues 71 148 81 046 440 723 402 745 Commissions, transportation and other 12 740 19 136 81 397 79 478 Onboard 4 246 2 549 21 783 20 817 Crew costs 13 113 14 386 70 422 58 638 Fuel 8 752 8 076 34 754 29 297 Other cruise operating costs 18 903 26 009 103 596 100 218 Total cruise operating costs 57 754 70 156 311 953 288 448 S, G & A 17 307 16 821 70 701 64 231 Total operating costs 75 061 86 977 382 654 352 678 EBITDA -3 913-5 932 58 068 50 067 * Separate results per product area in appendix Page 19
Other business Other business Q4 Q4 Year to date Year to date (NOK 1 000) 2012 2011 2012 2011 Operating revenues 27 728 36 095 106 026 201 005 Contractual revenues 30 841 53 939 128 707 213 055 Total revenues 58 569 90 034 234 733 414 077 Crew costs 27 345 55 006 113 304 202 188 Other cruise operating costs 28 664 43 422 99 957 164 942 Total cruise operating costs 56 632 98 491 216 628 367 295 S, G & A 1 196 192 2 181 2 627 Total operating costs 57 828 98 684 218 808 369 922 Other losses/(gains) - net 935 85 020 10 146 83 280 EBITDA 1 676 76 371 26 072 127 436 Other business consist of bus operation through AS TIRB/Cominor, HRG Eiendom AS and fast ferries Page 20
Discontinued business Discontinued business Q4 Q4 Year to date Year to date (NOK 1 000) 2012 2011 2012 2011 Charter -119 381-43 652-133 861 53 112 Profit/loss before tax -119 381-43 652-133 861 53 112 Page 21
MEASURES AND PROSPECTS
Hurtigruten 120 years in 2013 - An important part of marketing efforts throughout the year 11 sailings including the 2nd of July will be special 120 year anniversary sailings These sailings will include: New excursions A new dinner menu based on 1893 Sailing the Lyngen fjord Folk music concerts Special birthday ceremony on the 2nd of July And more to come Taking care of Hurtigrutens rich Taking care of Hurtigrutens rich history is also part of our future
Improved results from Spitsbergen in 2012 Promising i prospects for 2013 New flight services gives opportunities both for existing and new customer segments Successful focus on development of winter season and Christmas event Positive booking figures for hotels, excursion and cruises in 2013 Better cross utilization of the customers between Spitsbergen Travel, Hurtigruten and Explorer
Savings of more than NOK 60 million trough efficiency program - Full effect from 2014 General staff reductions within administrative i ti functions New corporate center in Tromsø Phasing out the current operations in Narvik Improved focus on commercial activities supported by the new organization Establishment of a crew company Proximity to the operation Divestment of non strategic assets Additional effects expected from phase two of the efficiency program International sales- and marketing organization and Spitsbergen Travel
New organization reflects increased commercial focus - With effect from 31 March 2013 CEO Finance ICT HR Development Crew centre Communication & Public Affairs Price & Revenue Management Product & Marketing Sales Hotel Operations Maritime Operations QA
Opportunities in 2013 New organization Simplified organizational structure Improved focus on commercial activities Proximity to the operation Improved cost control People development Available capacity without t investments t Huge sales potential in the Nordic countries Reduced balance risk Reduced debt Focus on core business Page 27
APPENDIX
Explorer products Explorer products Q4 Q4 Year to date Year to date (NOK 1 000) 2012 2011 2012 2011 Passenger ticket revenues 49 267 57 237 257 760 257 778 Onboard revenues 3 358 3 160 13 311 15 483 Other operating revenues 420 1 125 4 122 6 174 Total revenues 53 045 61 523 275 193 279 435 Commissions, transportation and other 11 670 18 737 69 173 75 233 Onboard 4 210 2 549 18 711 20 817 Crew costs 6 080 7 175 24 811 23 403 Fuel 8 678 8 076 31 568 29 297 Other cruise operating costs 11 512 11 800 44 122 41 624 Total cruise operating costs 42 150 48 337 188 385 190 374 S, G & A 12 136 12 041 45 865 43 411 Total operating costs 54 285 60 379 234 250 233 785 EBITDA -1 241 1 144 40 943 45 650 Page 29
Spitsbergen Spitsbergen Q4 Q4 Year to date Year to date (NOK 1 000) 2012 2011 2012 2011 Passenger ticket revenues 2 213-175 31 454-1 979 Onboard revenues 67 0 1 690 0 Other operating revenues 15 824 19 698 132 385 139 739 Total revenues 18 103 19 523 165 529 137 760 Commissions, transportation and other 1 070 398 12 225 4 245 Onboard 36 0 3 072 0 Crew costs 7 034 7 211 45 611 35 234 Other cruise operating costs 7 391 14 209 59 475 73 044 Total cruise operating costs 15 605 21 819 123 568 112 524 S, G & A 5 171 4 780 24 836 20 819 Total operating costs 20 776 26 599 148 404 133 343 EBITDA -2 672-7 076 17 125 4 417 Page 30