Interim report Q3 2014

Transcription

1 Interim report Q CEO Daniel Skjeldam CFO Erik Hansen 6 November 2014

2 Agenda Highlights and Key Figures Operational & Financial review Outlook Q&A 2

3 Highlights and key figures

4 NOK 77 million pre tax profit improvement in Q important for delivering profit in 2014 Pre-tax profit of NOK 269 million Improvement of NOK 77 million compared to Q In line with expectations Continuous improved results from Q as a result of a completely turn around of the company with long term effect EBITDA* of NOK 406 million Improvement of NOK 59 million compared to Q Improved results from all products with Norwegian Coast as the main contributor in Q Gross ticket revenue increase of 16% compared to Q mainly driven by Norwegian Coast Costs are under control, and increase is explained by higher volume and new regulations related to pay roll tax 4 * Excluding gains/losses

5 EBITDA improvement five quarters in a row Turn around of the company necessary and with positive result EBITDA improvement five quarters in a row, reflects a commercialized and more cost effective company 5

6 Result improvement in Q driven by Norwegian Coast (NOK 1 000) Q Q EBITDA ex gains and losses EBIT Net profit (loss) before tax Earning per share 0,46 0, Bridge result before tax Q to Q Hurtigruten group Result Q Increased EBITDA Norwegian coast Increased EBITDA Explorer Increased EBITDA Spitsbergen Increased EBITDA Other business Unchanged other losses/gains Reduced Reduced net depreciations financial items Unchanged share of associates Increased Result Q profit discontinued business 6

7 EBITDA increase of 17% in Q reflects a significant potential in second quarter Seasonality affects mainly first and fourth quarter second quarter with significant potential on the Norwegian Coast EBITDA per product per quarter Q1-Q and Q Other business Spitsbergen MS Fram Norwegian Coast Q1 14 Q2 14 Q3 14 Q4 13 7

8 Reductions in phase 1 delivered, new initiatives and restructuring costs explains increase in SG&A costs Development in SG&A, depreciations and net financial costs Q Q Q3 12 Q3 13 Q3 14 Increased SG&A due to higher personnel costs related to projects and restructuring Depreciations on par with last year Decrease mainly due to instalments and FX effects SG&A costs Depreciations Net financial costs 8

9 NOK million Increased equity ratio and reduced debt Development in assets from Q vs Q Non-current assets Current assets Assets held for sale Q3 13 Q3 14 Non-current assets reduced due to depreciations and non-core bus operation divested in Q3. Current assets reduced due to Non-core bus operation divested in Q3 Cash closing balance of NOK 442 million Development in equity and liabilities from Q vs Q Q3 13 Q3 14 Equity Long term debt Other non-current liabilities First year's instalment Other current liabilities Equity ratio of 28,1% compared to 26.4 % in Q Deferred income tax asset off balance of NOK 107 million Instalments of NOK 343 million last 12 months reduces long term debt 9

10 Increased cash flow in Q (NOK 1 000) Q Q Variance Operating activities Investing activities Financing activities Net cash flow Cash flow Q Hurtigruten group IB cash Q Operation Investments Finance UB cash Q Change in cash from operations consist of EBITDA ex gains/losses and change in working capital Change in cash to financing activities is due to Instalments of NOK 84 million Dividend to non-controlling interests of NOK 26 million 10

11 11 Operational & Financial review

12 Norwegian coast Segment information

13 NOK 149 million revenue increase realized with a utilization of 85% - potential of further growth in Q3 Revenue development Norwegian coast Q Q * Q3 12 Q3 13 Q3 14 Volume -12 % - 2 % + 9 % Gross revenue per CN +9 % - 6 % + 12 % Utilization 80 % 78 % 85 % 13 * Excluding contractual revenue

14 Improved EBITDA of NOK 54 million for Norwegian Coast Improved EBITDA in Q due to growth in all markets Improvement allows the company to invest for further growth in new and existing markets for 2015/2016 EBITDA development Norwegian coast Q Q Q3 12 Q3 13 Q

15 Volume growth in all markets Cruise nights development Norwegian coast Q3 14 vs Q3 13 US 8 % 19 % UK/RoW 12 % 37 % Cruise nights development Norwegian coast Q3 14 vs Q3 13 Nordic 13 % 22 % Market share total revenue Hurtigruten Q3 14 CE 9 % 58 % 0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 15

16 NOK Improved revenue from continued increase in on board sales per CN combined with 9% volume growth On board revenue in Q of NOK 91 million realized from improved performance from sales staff on board the ships On board sales crucial in differentiation from competitors Excursion sales per CN reduced due to operational challenges related to weather and cancellations 250 Development in on board sales per CN Q Q ,1% +3,1% Excursions F&B incl shop - Q3 12 Q3 13 Q

17 Volume growth and 14.1% increase in employee tax affects operating cruise costs Increased passenger costs in the quarter mainly due operational issues Bunker consumption and initial price lower than last year, but stronger US dollar affects the total bunker cost negatively Crew costs in the hotel departments increased due to volume growth compared to last year Increased employee tax affects the crew costs negatively with NOK 11 million Development in operating cruise costs Norwegian coast Q Q Other operating cruise costs Bunker costs Crew costs 17 - Q3 12 Q3 13 Q3 14

18 Good regularity in operations Satisfactory regularity of 98.5 % in Q Influenced by unstable weather conditions. YTD regularity at 96.9 % Full year target 97 % 18

19 MS Fram Segment information

20 Continued result improvement on MS Fram in third quarter Revenue development MS Fram Q Q Q3 12 Q3 13 Q3 14 Volume -1 % -10 % -2 % 20 Gross revenue per CN +3 % +14 % +13 % Utilization 85 % 78 % 81 %

21 Continued positive development for MS Fram Increase in EBITDA despite marginal reduction in cruise nights EBITDA development MS Fram Q Q Q3 12 Q3 13 Q

22 Tight cost control on MS Fram continues Cost increase mainly driven by increased passenger- and harbor costs 25 Development in operating cruise costs MS Fram Q Q Other operating cruise costs Bunker costs Crew costs - Q3 12 Q3 13 Q

23 Spitsbergen Segment information

24 16% revenue increase driven by both volume and price Revenue development Spitsbergen Q Q Q3 12 Q3 13 Q

25 Continued positive development on Spitsbergen EBITDA development Spitsbergen Q Q Q3 12 Q3 13 Q

26 Investing for future activities affects costs in third quarter 40 Development in operating costs Spitsbergen Q Q Other operating cruise costs Other cost of goods Personnel costs Q3 12 Q3 13 Q

27 Outlook

28 Northern Light guarantee to stimulate demand during fourth and first quarter Moderate revenue growth as expected in Q due to weaker performance from UK Results in Q expected to be in line with last years performance in fourth quarter 250 Presold gross revenue Norwegian coast October- December 2014 vs % Oct - Dec YTD 2013 YTD * As of 22 October 2014, including FX effects

29 Antarctica season in line with last year positive revenue effect from FX All time high results on Antarctica in Q reflects limited growth potential on volume in Q % increase in presold gross revenue mainly driven by increased price and FX Presold gross revenue MS Fram October- December 2014 vs % Oct - Dec YTD 2013 YTD * As of 22 October 2014, including FX effects

30 Launching 2015 season with positive effect expectations of revenue increase in 2015 Expectations of revenue increase in 2015, but expect a correction during main booking season in November-December due to periodization of introduction campaigns Positive effect from hedging approximately 75% of Euro revenue hedged in 2015 Underlying price on par with last year gross revenue increase driven by volume and FX Presold gross revenue Norwegian coast January - December 2015 vs * % *As of 22 October FX effects included

31 Reduced capacity on MS Fram due to planned maintenance in 2015 Pre bookings affected by reduced capacity Available cruise nights reduced with 18% due to maintenance and adjusted itinerary Results for MS Fram is expected to stabilize in 2015 based on 2014 performance 250 Presold gross revenue MS Fram January - December 2015 vs % *As of 22 October FX effects included

32 Effective differentiation strategy crucial for revenue improvement on Norwegian Coast

33 Hurtigruten scores sky-high in new British survey Authenticity defeats mass-tourism Meeting real local people is part of the appeal of Hurtigruten cruises. (...) I'd go back just to slumber beneath the Northern Lights. Surely that has to be next on my bucket list. Kimberley Lovato, Huffington Post

34 Expected good improvement of pre tax profit in 2014 and further growth in 2015 Q with good results and in accordance with expectations Results in Q4 expected to be on par with last year: Presold gross revenue* Norwegian coast for remaining % vs last year Presold gross revenue* MS Fram for remaining % vs last year Presold gross revenue* Norwegian coast for % vs last year Presold gross revenue* MS Fram for % vs last year Further result improvement expected in 2015 from increased revenue and cost reductions from efficiency program Phase 4 34 * As of 22 October 2014, including FX effects

35 35 Q & A