INTERIM REPORT Q3 2013

Transcription

1 INTERIM REPORT Q3 2013

2 HIGHLIGHTS Daniel Skjeldam, CEO

3 Profit before tax of NOK 192 million Company turnaround with effect Turnaround process proceeds as expected with significant results in Q3 Reduced costs of NOK 17 million Focus on the fleet increase efficiency, revenue and standardization Profit before tax NOK 192 million, NOK 111 million improvement from last year EBITDA NOK 354 million, NOK 91 million better than last year One offs Q NOK 108 million in ESA-provision NOK 16 million in impairment losses Weak sales-introduction to 2013 season in 2012 affect the result as expected May-October 2013 with 21% higher booking speed than same period 2012 Significant improvements MS Fram

4 Hurtigruten rigged for the future Last phase of comprehensive efficiency program 4 step extensive turnaround process with solid deliveries NOK 17 million in Q3 effects full annual cost effect 2014 NOK 60 million Phase 4 significant potential for cost reductions and improved onboard sales Streamlined and cost efficient structure 30% administrative downsizing New commercial focus 1 Global sales organization prepared Clarify product strategy Identify global cost effect potential ICT restructuring, consultant phase-out System clean-up Reservation center streamlining 2 3 A profitable and flexible company, offering authentic travel experiences in unique waters Cost effective ship operations Increased onboard sales HR development 4

5 Main cost elements under control Effective fuel hedging strategy Moderate on board wage settlement Establishing of crew center in Kirkenes with effect from August NOK million in annual payroll tax reduction Cost development Norwegian coast YTD at Q310 Q313 NOK Q310 Q311 Q312 Q313 Crew costs Bunker cost Other op. cruise costs

6 Streamlining ship operations Efficiency program Phase 4 Realize on board cost effects Identify and develop on board sales potential and opportunities Streamlining sea/land cooperation, including purchasing routines Ensure crew stability and development Annual effect NOK 60 million Annual effect NOK xx million

7 Measures with effect 21% increase in gross revenue booked in May-October Deviation from 2012 partly reduced by campaigns Motivated sales organization Adapted measures towards late bookers 21% increase in pre booking revenue in May-October for 2013 compared to last year New organization effective from 17 April 2013 and full year effect will materialize in 2014

8 MS Fram - in front of the fleet Still significant cost and revenue potential Cost conscious crew with proactive on board sales mentality NOK 9 million EBITDA improvement 82% capacity utilization top line potential NOK 8 million reduction in cruise operating costs Itinerary adjustments to reach higher prices 21.9% increase net ticket revenue

9 High quality operations 99.2% regularity in third quarter Zero technical deviation in September Regularity of 99.2% in third quarter (98.2% 2012) Extensive safe sailing routines implemented Courses, training and certification of navigators NOx-project MS Richard With reduced fuel costs and emissions

10 ACCOUNTS Q Asta Lassesen, CFO

11 NOK 192 million in profit before tax (NOK 1 000) Q Q Revenue EBITDA Net profit (loss) before tax

12 Positive development in financial costs Reflects down payments of NOK 319 million in 2013

13 Norwegian coast Revenue decrease positive cost development Q Q Cruise nights Revenue (NOK 1 000) Net ticket revenue per CN (NOK) Cruise operating costs per APCN (NOK) * EBITDA (NOK 1 000) * Crew, fuel, harbour, maintenance and other operating cruise costs

14 MV Fram Significant improvement from last year Q Q Cruise nights Revenue (NOK 1 000) Net ticket revenue per CN (NOK) Cruise operating costs per APCN (NOK) * EBITDA (NOK 1 000) * Crew, fuel, harbour, maintenance and other operating cruise costs

15 Spitsbergen Improvement continues Q Q Utilization 62 % 68 % Revenue (NOK 1 000) Total cruise operating costs (NOK 1 000) EBITDA (NOK 1 000)

16 Hurtigruten balance sheet (NOK 1 000) Assets Tangible non-current assets Intangible non-current assets Financial non-current assets Current assets Assets held-for-sale Total assets Equity and liabilities Paid-in capital and retained earnings Minority interests Total equity Non-current liabilities Provisions Current liabilities Liabilities on assets held-for-sale 0 0 Total liabilities Total equity and liabilities

17 Improved cash flow of NOK 123 million in Q (NOK 1 000) Q Q Operating activities Investing activities Financing activities Net cash flow

18 OUTLOOK Daniel Skjeldam, CEO

19 Hurtigruten revitalized

20 5 December adm employees Administration located in Tromsø and Narvik Office building in Narvik Office building in Tromsø Maritime operations with commercial responsibility ICT extreme outsourcing Sea personnel employed in HRG ASA Global management and control Norway reservation team in Tallinn Project groups with internal resources A 10 month restructuring period 1 October adm employees Corporate center in Tromsø Divested Divested Hotell operations with commercial responsibility ICT insourcing and control Sea personnel employed in Hurtigruten sjø AS Local autonomy and responsibility Norway reservation team to be relocated Kirkenes

21 Changes showing significant results Growth in bookings for Q4 Increased speed and accuracy in global sales organization 3% gross revenue growth for Norwegian coast 26% gross revenue growth for Explorer MS Fram

22 Positive trend continues Significant improved outlook for 2014 Gross revenue growth continues for % gross revenue improvement for Norwegian coast 27% gross revenue improvement for Explorer/MS Fram

23 Strong EUR/NOK in 2013 Affects the gross revenue - reduced fx risk in 2014 due to hedges Weaker EUR/NOK with positive gross revenue effect in 2014 Significant part of Euro revenue hedged late summer 2013 EUR/NOK development January-October 2013

24 Seeking new opportunities US and Asia initiatives New US office established Worlds largest cruise market Head office in Seattle Sales teams in the field Aggressive sales targets Increased focus Asian market Increased representation due to growing interest Future sales office assessment

25 Home market positioning Improved customer services and renewed pricing strategy Home market needs special focus Norwegian reservation office established Located in Kirkenes knowledge and language crucial New pricing strategy Attract short break and local transport segment Significant potential to increase volume and revenue

26 Outlook Revitalized and reaching for results Turnaround process delivering Focus on ship operations Significant new potential Improved cost structure already showing results Effective and dynamic sales force 21% growth booking speed May-Oct New market initiatives Significant EBITDA improvement Explorer Untapped potential available Positive revenue development Q4 and 2014 Significant improvement in results for Q4 and 2013 expected Solid basis for 2014 results