Norwegian Air Shuttle ASA(NAS)

Q1 2004

Presentation

Oslo – Frankfurt – London

25-27 May 2004

2

● Q1 results in line with expectations, and a strong financial position maintained

● Established as Norway’s low-fare carrier

● Consolidating our position and achieving profitability in second half 2004

3

● Q1 results in line with expectations, and a strong financial position maintained

● Established as Norway’s low-fare carrier

● Consolidating our position and achieving profitability in second half 2004

4

Turnover up 55% from Q1 2003● 236 Mill NOK in turnover in Q1 2004, compared to 153

in Q1 2003● 90% increase in passenger volume from Q1 2003.

(400.000 passengers in Q1 2004, 210.000 in Q1 2003)● Growth driven by increased production● Rapid expansion accomplished with continuously

higher load-factor

50

100

150

200

250

300Mill

55 %

0Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04

5

EBITDA level as expected ● EBITDA result of -49.9 MNOK in Q1 2004, versus -34

MNOK in Q1 2003● EBITDA result includes 6 MNOK in “one offs”● “One offs” relates to:

– 2.5 MNOK in additional costs for redelivery of leased Fokker F-50 planes

– 3.5 MNOK in additional costs on pre-sold tickets due to introduction of VAT on public transportation from march 01.

-50

-40

-30

-20

-10

0

10

20

30

40

Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04

Mill

6

Increase in cash holdings

● Positive cash flow from operations of 12.2 MNOK, driven by high pre-sales levels for spring / summer-travel

● Sold off 3 financially leased Fokker F-50 planes and made down payment of related debt

Cash Flow statement

20032004 2003

Operating activities 12 208 32 751 61 498Investments 18 814 -4 829 -28 637Financial activities -20 652 -3 143 217 938

Net change 10 370 24 779 250 799Cash balance per 1 January 314 036 63 237 63 237Cash balance per 31 March 324 407 88 016 314 036

First Quarter

7

Strong financial position

● Total assets of 560 MNOK● Cash position of 324 MNOK.

IPO proceeds constitutes 235 MNOK● Equity-share of 40%

FIXED ASSETS 2004 2003 EQUITY 2004 2003Intangible assets 78 844 30 254Tangible fixed assets 26 612 57 743 Paid-in euity 263 532 71 157Financial fixed assets 13 988 13 014 Retained earnings -40 043 9 723TOTAL FIXED ASSETS 119 445 101 011 TOTAL EQUITY 223 490 80 880

CURRENT ASSETS LIABILITIESMaterial and consumables 3 874 8 599 Provisions 35 359 14 933Receivables 113 037 85 724 Other long-term liabilities 29 770Cash and bank deposits 324 407 88 016 Current liabilities 301 915 157 766TOTAL CURRENT ASSETS 441 318 182 339 TOTAL LIABILITIES 337 273 202 470

TOTAL ASSETS 560 763 283 350 TOTAL EQUITY AND LIABILITIES 560 763 283 350

No of shares 18085230 79021Nominal share value 0,1 13

First Quarter

8

● Q1 results in line with expectations, and a strong financial position maintained

● Established as Norway’s low-fare carrier

● Consolidating our position and achieving profitability in second half 2004

9

Expansion concluded

Sept. 04Sept. 02 Sept. 03

Number of passangers 65 879 129 298

Fleet 6 8

Airborne hours (ABH) 769 1 311

Avail. Seat Kilom. (ASK) (mill) 57 119

Manyears 254 300 57 %

326 %

205%

83%11

2345 (1)

243 (1)

400

Growth share 02-03

Loadfactor (RPK/ASK) 51 % 64 % Growth share 03-04

Share of Norwegian market ~5% ~10%

(1) Subject to change

10

33 routes by end June 2004

11

Low cost position established

Cost / ASK versus average sector length (1)

KLM

lberia

RyanairEasyjet

LufthansaAir France

0

200

400

600

800

1000

1200

1400

1600

1800

2000

0 20 40 60 80 100 120

øre

km

Q304 Q402

Norwegian**

British Airways

Braathens(2003*)(2003)

(2003)

SAS

(1) Source: Goodbody Stockbrokers & Annual Reports. 2002 numbers unless specified

*) Braathens numbers ex. lease costs

**) Norwegian numbers with lease costs included, constitutes ~6 øre/ASK

12

Increasing efficiency further

2

102

202

302

402

502

602

702

802

Q1 04 Q2 04 Q3 04 Q4 04

Hours

-

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

Pilot utilization (ABH pr pliot) (1) Average ABH pr plane pr day

● ABH per pilot is expected to increase from 500 to 700 during 2004

● ABH per plane per day is expected to increase from 5.5 to more than 7 hours during 2004

● Distribution costs per sold seat has gone down with more than 40 % since Q1 2003

● Distribution costs has mainly been reduced due to ticket-less travel and higher internet penetration

Distribution cost per sold seat

-42 %

20

40

60

80

Q1 03 Q2 03 Q3 03 Q4 03 Q1 04

NO

K

13

47 % increase in load factor

0

50

100

150

200

250

300

350

400

Q1 03 Q1 04

Mill

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %RPK / ASK

load factor RPK ASK

47 %

14

● Q1 results in line with expectations, and a strong financial position maintained

● Established as Norway’s low-fare carrier

● Consolidating our position and achieving profitability in second half 2004

15

Focus is on consolidating ourdomestic market position

● Optimize domestic productionprogramme with current fleet

● Improve product / timetable in ”peak-period” on key domesticroutes

● Focus on maintaining market shares and managing yield levelson key domestic routes

● Actively optimize excess capacityutilization

Mar

ket a

ttrac

tiven

ess

Competitive strengthWeak Strong

High

Low

Consolidate

market position

16

Seasonal variations expected to positively effect load-factors

Total PAX volume OSL 2003/2004

300 000

500 000

700 000

900 000

1 100 000

1 300 000

Janu

arFebru

arMars Apri

l

MaiJu

ni Juli

Augus

tSep

tembe

rOkto

ber

Novem

berDes

ember

International Domestic 2004

17

Lower prices stimulates demand

● Norwegian commenced Oslo – Arlanda on September 1, 2003

Stockholm 2002 vs. 2003

40 000

50 000

60 000

70 000

80 000

Janu

arFeb

ruar

Mars April

Mai

Juni Juli

Augus

tSep

tembe

rOkto

ber

Novembe

rDese

mber

PAX

Stockholm 2002 Stockholm 2003

18

Our route portfolio matures

● Load-factor development on 4 main domestic routes sincestart-up (Stavanger, Bergen, Trondheim and Tromsø)

Main routs

20 %

30 %

40 %

50 %

60 %

70 %

80 %

Sep 02 Sep 03 Apr 04

19

Aggressive pricing hits yield

0,00

0,30

0,60

0,90

1,20

1,50

1,80

Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04

NOK / RPK

● Yield levels will continue to fall as a consequence of longer flights in 2004: the average sector length is expected to increase from 60 min in January to more than 70 min for the full year

● Domestic price campaigns impacted yield levels in Q1. Continued price campaigns domestically and aggressive competitor pricing is expected to put further pressure on the yield

● Increased demand, maturity and optimization of production should increase average price without affecting low-fare position

20

2004 expected to be somewhatbetter than 2003

● A continued price pressure domestically, will lead to an EBITDA level for Q2 which is somewhat better than Q1

● Higher passenger volumes and continued competitor-drivenprice pressure is expected for Q3 & Q4

● If the current price pressure prevails for the whole year, a negative EBITDA level for 2004 is expected, althoughsomewhat better than the result in 2003

Summary: ● Q1 results in line with expectations, and a

strong financial position maintained● Established as Norway’s low-fare carrier● Consolidating our position and achieving

profitability in second half 2004