ANNUAL ANNU AL GENE GENERA RAL MEET L MEETING ING RICKARD GUST RICKARD GUSTAFSON, AFSON, PRE RESIDE IDENT NT & CE CEO 10.04 .04.20 .2018
SAS is an important part of Scandinavian infrastructure A DAY IN THE LIFE OF SAS SAS BY THE NUMBERS >82,000 272 PASSENGERS SERVED ROUTES 158 PER DAY SERVED AIRCRAFT (OF 33 WHICH WET LEASED) >5 million EUROBONUS DAILY >800 10,324 MEMBERS DEPARTURES AVG. NUMBER OF EMPLOYEES SEK OPERATING ~350 43 bn REVENUE TONNES CARGO 13% TRANSPORTED DAILY ROIC
1 FY17 IN RETROSPECTIVE 2 CURRENT DYNAMICS 3 WAY FORWARD
Our vision is to make life easier for Scandinavia’s frequent travelers BE THE FIRST CHOICE FOR SCANDINAVIA’S FREQUENT TRAVELERS + CREATE AN EFFICIENT OPERATING PLATFORM + SECURE THE RIGHT CAPABILITIES = SUSTAINABLE & PROFITABLE BUSINESS
In FY17, customer offering has been reinforced… NEW NORDIC LEISURE OFFERING LOUNGE REFRESH EUROBONUS
…and operational efficiency increased further. SAS Ireland up and flying! SAS IRELAND CIMBER EFFICIENCY PROGRAM A320 NEO
High commitment among employees is an integral part of SAS success HIGH CUSTOMER SATISFACTION ATTRACTIVE EMPLOYER 3-YEARS CBAs SICK LEAVE DOWN
Financial position strengthened through a row of successful measures NEW UNSECURED BOND DIRECTED SHARE ISSUE SAS SAS GEN ENOMFÖR R RIKT RIKTAD AD NYEM YEMIS ISSIO ION PÅ Å 1,27 1,27 MILJ ILJARDER ARDER KRONOR LHR SLOTS
As a matter of fact, FY17 has been SAS strongest year in 20 years! REVENUE AND EBT 1 (SEK bn) FINANCIAL KEY RATIOS FY17 70 2,8 FINANCIAL 37% 1,951 PREPARED- 2,1 60 NESS 1,4 50 FINANCIAL 3.1x NET DEBT/ REVENUE 0,7 EBITDA 40 EBT 0,0 13% 30 ROIC -0,7 20 -1,4 SHARE PRICE 10 DEVELOPMENT FY17 -2,1 SEK SEK 0 -2,8 F 15.30 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 25.90 Y REVENUE Note: EBT before non-recurring items
2017 was a strong year for European commercial aviation in general – although we have seen some dramatic developments EBIT % – AVG. EUROPEAN AIRLINES 1 Everything must go as Air Berlin leaves behind mountain of debt 10% 9.3% 8.0% 8% 7.5% 6% 4.4% 4% 3.3% 3.2% 2.3% 2% 0.5% 0% 2010 2011 2012 2013 2014 2015 2016 2017 Note: SAS, Norwegian, Lufthansa, IAG, Airfrance-KLM, Finnair, Ryanair, EasyJet, and Wizz Source: Annual reports
1 FY17 IN RETROSPECTIVE 2 CURRENT DYNAMICS 3 WAY FORWARD
Exposure and sensitivity towards the impact of macroeconomic factors and developments in external environment… Rising oil prices – will the GDP growth – have we € Will USD rate stabilize trend continue? at current level? reached the top of the cycle? Capacity growth on routes to/from Rapidly growing leisure demand , Scandinavia, mainly from LCCs particularly on Southern Europe and Intercont Geopolitical uncertainty impacts demand for traveling to exposed regions
…set the tone, creating a new reality for the entire airline industry Evolution of business models – customized production platforms & new personnel setups Digitalization – automation of processes through connecting digital technology, information, customers and employees Sustainability – need to reduce footprint, providing access to sustainable air transport for future generations
SAS Ireland is designed in a competitive manner and will become an important complement to SAS existing production model ~800 ~200 LHR DEPARTURES CREW MEMBERS ~100,000 BASE FULLY – EXTERNALLY 6 OPERATIONAL SOURCED PASSENGERS AIRCRAFT TRANSPORTED SINCE LAUNCH ~30 ADMIN STAFF CUSTOMER SATISFACTION IN LINE WITH SK
Further develop SAS digital capabilities in order to improve operational efficiency and realize strategy NEW DISTRIBUTION CAPABILITIES EMERGING TECHNO- CRM & PERSONALIZATION LOGIES AI / COGNITIVE COMTUTING – DIGITAL ASSISTANT WIFI ONBOARD INTERNET SENSOR TECHNOLOGY OF THINGS REAL TIME BAGAGE TRACKING MIGRATION TO CLOUD OFFICE 365 MOBILITY IPADS TO CREW FLOOR WALKERS & MOBILE LOADMASTERS
Aviation’s environmental footprint has recently sparked a considerable public debate in media… n - t e k a t s y a n ö r s n f u i N a s e r k å v p a r s k e n s v s t a l o n m i l j 24 Kalmar, 2018-03-19 (Uppdaterad 2018-03-19 15:43) Matilda Larsson Publicerat på webb. Resor till vissa destinationer höjs med hundratals kronor för resenärer. Från och med den 1 april införs en flygskatt, som kommer att höja priset på flygresor från Sverige. e n e g n a u t a n f ö r d i b u e r a s r e j d i s t r A r t i k l a r f å s l a g e n . h o v s r ä t t e a v u p p n . s k y d d a d u t g i v a r e r t i k l a r ä r e n s k i l d e > A l l a a e r d e n
…SAS has been working for sustainable aviation future for many years DIGITAL DRYWASH NEWSPAPER OF ONLY AIRCRAFT PHASE IN OF PHASE IN OF WINGLETS NEW A330 GREEN NEW A320NEO APPROACHES 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 1ST LIGHT- ENVIRONMENTAL WEIGHT ENGINE 1ST CO 2 REPORT SEATS UPGRADE BIOFUEL COMPENSATION ON B737NG FLIGHT TOOL
…AND NOW WE WILL ALSO CO 2 COMPE COMPENSA NSATE TE ALL Y ALL YOUTH OUTH TI TICKE CKETS TS : :)
1 FY17 IN RETROSPECTIVE 2 CURRENT DYNAMICS 3 WAY FORWARD
A large share of SAS short-haul fleet consists of old technology aircraft that will hit their ageing limits in the coming years… -50 AC FY2017 FY2022 …without fleet investment short -haul capacity will reduce
We are excited to announce a historical aircraft order that will bring SAS to one type-fleet! ONE TYPE FLEET SIMPLIFIED CREW & TECHNICAL MAINTENANCE PLANNING INCREASED ROBUSTNESS IN TRAFFIC EXECUTION ENHANCED & HARMONIZED CUSTOMER EXPERIENCE 50 A320 NEO (35 FIRM ORDERS + 15 LEASES) FY19-23 DELIVERY TIMING
A320neo – innovation where it matters! INDIVIDUAL USB CHARGING OUTLETS allow passengers to charge their handheld devices HIGH-SPEED WIFI passengers will enjoy up to 12 Mbps individually INCREASED CABIN EFFICIENCY, WITH RETAINED SEAT COMFORT 180 seat configuration – comfort cushions for better in seat experience MORE QUIET MODERN CABIN DESIGN 60% reduction in noise Scandinavian touch, aligned footprint with SAS long-haul fleet IMPROVED SUSTAINABILITY PERFORMANCE 15-20% lower fuel burn -40% nitrogen oxides emissions COST EFFICIENCY 10% lower operational cost
In addition, the order provides SAS with an opportunity for growth • Growth with aircraft size as new aircraft are phased in • Option to convert some A320neos to A321LR to enter new markets and strengthen position on long-haul • Choice to either replace existing aircraft one-to- one or leverage option to grow fleet, depending on the market situation Flexible and capital efficient growth
We have a clear vision for where we are heading and now we also have the building blocks to future proof SAS beyond 2020 Increased competitiveness CORE REGIONAL Improved efficiency and product offering OPERATIONS PLATFORMS (SK) (External partners) Growth and flexibility Greater seasonal adjustments and participate in growing markets SINGLE EUROPEAN Sustainability TYPE FLEET PLATFORM A step toward lower emissions for a (Asset company) (SAS Ireland) sustainable future
TRAVELERS ARE THE FUTURE
Recommend
More recommend
