Norwegian

Investor Presentation

December 2003
 Disclaimer
● All statements contained in this presentation that are not statements of historical facts,
including statements on projected operating results, financial position, business strategy and
other plans and objectives for future results, constitute forward-looking statements and are
prediction of, or indicate, future events and future trends which do not relate to historical
matters.

● No person should rely on these forward-looking statements because they involve known and
unknown risks, uncertainties and other factors which are, in many cases, beyond Norwegian’s
control and may cause its actual results, performance or achievements to differ materially
from anticipated future results, performance or achievements expressed or implied by the
forward-looking statements and from past results, performance or achievements.

● These forward-looking statements are made as of the Date of this presentation and are not
intended to give any assurance as to future results. None of Norwegian, its employees and
representatives assumes any obligation to update these statements.

● This presentation includes historical and pro forma financial data. Your attention is directed to
the notes to such data for a description of the accounting principles used to prepare historical
data and the assumptions used to prepare the pro forma financial data.

● This presentation must be viewed only in connection with the separately distributed offering
prospectus which include a number of risk factors investors must be aware of.

19/12/2003
 Agenda

● Introduction
● Company background
● First year of 737 operation
● Financial highlights
● Next steps
● Appendix

19/12/2003
 Transaction overview

● Norwegian Air Shuttle has applied for listing on the Oslo Stock Exchange

● New issue of NOK 200 - 250 million

– Institutional Norwegian and international private placement

– Norwegian retail offering

– Subscription period: 9th - 17th December 2003

– Expected listing 18th December 2003

● Indicative price range: NOK 27 - 33 per share

● Current shares outstanding: 10,272,730

● Approx. pre-money equity value of NOK 277-339 million

● Joint lead managers: ABG Sundal Collier and Enskilda Securities

19/12/2003
 Investment highlights

● Rapidly growing low-price airline carrier

● Strong market position and brand position
established in first year of 737-operation
● Profitability on major routes
● Effective business model creates strong
operational leverage

19/12/2003
 Management introduction

Bjørn Kjos, CEO, founder

● Founded Norwegian Air Shuttle in 1993.
● Former managing partner of the law firm Vogt & Wiig.
● Aviation experience from RNOAF 334 squadron

Frode Foss, CFO

● Ex. Ernst & Young and Arthur Andersen experience
● Master in Business Administration

Ola Krohn-Fagervoll, EVP

● Ex. Concordia, A.T. Kearney, Saga Petroleum and British Petroleum
● Master in Business Administration

F. Carl Størmer, SVP, Marketing

● Ex. StudentUniverse, Inc. and IBM Consulting Group
● Master in Arts Management

19/12/2003
 Agenda

● Introduction
● Company background
● First year of 737 operation
● Financial highlights
● Next steps
● Appendix

19/12/2003
 Norwegian is Norway's only low-fare carrier

Eight leased B737 planes From 4 to 17 point-to-point routes

Tromsø Tromsø

Alta

Evenes

Bodø

Trondheim
Molde
Trondheim
Ålesund

Bergen

Bergen Oslo
Stavanger Stockholm

Oslo
Stavanger

London
Far
o Murcia
Malaga

10 years experience Low-fare strategy Rapid growth in one year

● Started as an airline in ● Point-to-point only ● Achieved 20% market share
1993 ● Targets Norwegian in Norway on key routes
● Low-fare carrier since business and leisure ● Low-fare revenues from
September 2002 customers zero to approx. NOK 1
● Proven business and ● 70% sales through own billion (annualized)
growth experience channels, 30% through
travel agencies

19/12/2003
 Since September 2002, Norwegian has
established a position for profitable growth*

Sept. 02 Sept. 03

No of passengers 65 879 129 298 96 %

Revenues (mnok) 33.7 88.4 162 %

EBITDA 737-operation (mnok) (13.4) 7.0 n.a.

n.a.

No of airplanes 6 8 33 %

Airborne hours (ABH) 769 1 311 70 %

Avail. Seat Kilom. (ASK) (mill) 57 119 109 %

No of man years 254 300 18 %

Cabin factor (RPK/ASK) 51 % 64 % 27 %

* Fokker 50 operation not included

19/12/2003
 Norwegian has developed a strong brand

● 58% of population associate brand with Best in class on customer value and price
low price 1)
● A brand consisting of value for money, 58%

smart purchase, and a safe experience.

● Voted #2 after the Salvation Army as the 34%

most trusted brand in Norway in 2003 21% 21%

7% 8% 7%
5%

A company that gives you value Has the lowest fares

for the money

Norwegian SAS Braathens Widerøe

1) Interrra market research

2003 Omdømmeprisen
2003 Omdømmeprisen
”Norwegian deserves recognition for rapidly building a good brand without
”Norwegian deserves recognition for rapidly building a good brand without
bashing its competitors as part of its promotion and marketing. On the contrary,
bashing its competitors as part of its promotion and marketing. On the contrary,
the company has entered an industry in crisis, and has done so with
the company has entered an industry in crisis, and has done so with
enthusiasm and empathy. A corageous feat as the company has successfully
enthusiasm and empathy. A corageous feat as the company has successfully
communicated its desire to facilitate consumers in their quest for air-travel.”
communicated its desire to facilitate consumers in their quest for air-travel.”

(Association of Norwegian PR consultants, comment by the jury when casting its vote for Norwegian).
(Association of Norwegian PR consultants, comment by the jury when casting its vote for Norwegian).

10

19/12/2003
 Norwegian's position is a result of experience,
timing and strategy

Experience Timing Strategy

● Proven operational and ● Good timing in an ● Disciplined execution of

business experience attractive market a focused low-fare
strategy

11

19/12/2003
 The company has a solid base of necessary
experience
Experience
Experience Timing Strategy

In running an operational airline

Operational ● Started operation in 1993 with three F50 aircrafts, later expanded to six
experience planes
● No major incidents

In running a profitable business

● Showed profit every year as a supplier to Braathens
Business
● Expanded in 2000 with Lufttransport acquisition
experience
● Turned Lufttransport into Scandinavia's premier ambulance carrier -
later demerged in 2002

In adapting and growing

Growth ● Able to change course and start low-fare operation in September 2002
experience ● Rapid growth in passengers, planes, and airborne hours since 2002
● Grew from virtually zero to close to almost NOK 1 billion in twelve
months!

12

19/12/2003
 In 2002 an opportunity existed to establish a
low-fare carrier in the domestic market
Experience Timing
Timing Strategy

SAS monopolist but vulnerable

Scandinavia’s
● Frequent flyer programs eliminated by
largest market government to level the playing field
● High fares, little competition

Norway well suited for a low-fare player

● Norwegians fly more than other
Scandinavians
● Majority of travel point-to-point
● High internet penetration

Buyers
Buyers market
market in
in the
the aviation
aviation industry
industry

● Oversupply of capacity led to favorable

leases and supplier agreements
● Surplus of skilled people with local
aviation expertise

13

19/12/2003
 Norwegian captured this opportunity with a
feasible low-fare strategy by focusing on cost
Experience Timing Strategy
Strategy

Focus on core-competence
● Experienced staff to handle rapid growth
● Competitive outsourced agreements with
key suppliers

Standardized fleet
● One type of aircraft to simplify
maintenance, crew planning, revenue
management and logistics

Simple product and processes

● Simple No-frills point-to-point product
● Ticketless travel, online distribution and
real-time revenue management

14

19/12/2003
 The company selected Norway's four most
attractive point-to-point markets

Started on the four major routes Development in domestic passenger volume (1)

12 000
(in 1000 pax)
Tromsø 10 000
Initial routes in 8 000
September 2002 6 000

4 000
~ 50%
2 000

0
1998 1999 2000 2001 2002
Trondheim
Oslo-Trondheim Oslo-Bergen Oslo-Stavanger Oslo-Tromsø Sum / Other

Among the Nordic’s top routes by volume (2)

Bergen
Oslo-Trondheim 1340
Oslo-Bergen 1330
Oslo
Stockholm-Gothenburg 1320
Stavanger
Stockholm-Malmö 1190
Oslo-Stavanger 1050
Stockholm-Luleå 870
Oslo-Tromsø 790
Bergen Stavanger 700
Stockholm-Umeå 700
Helsinki-Oulu 640
Copehagen-Aalborg 590

* Including Oslo-Trondheim, Oslo-Stavanger, Oslo-Tromsø and Oslo-Bergen

(1) Source: Avinor / SSB
(2) Source: Report from the Nordic competition authorities 1/2002
15

19/12/2003
 During the year 13 more routes were added to
fly more passengers and reduce unit-cost

New routes were added ... ... to increase passengers and ...
(passengers in 1000)
Tromsø 160

Alta 140
120 +96%
Evenes 100
80
Bodø
60
40
20
0

Jul 03
Feb 03

Mar 03
Jan 03

May 03

Jun 03
Sep 02

Nov 02

Dec 02

Sep 03
Oct 02

Oct 03
Aug 03
Apr 03
Trondheim
Molde
Ålesund Key domestic routes* Other routes

... to reduce cost per ASK

Bergen
(NOK)
1.10
Oslo
Stockholm
-17%
Stavanger 1.00

0.90

0.80
London
Faro 0.70
Murcia
Malaga
0.60

0.50

Jul 03
Feb 03

Mar 03

May 03
Jan 03

Jun 03
Sep 02

Sep 03
Nov 02

Dec 02
Oct 02

Aug 03
Apr 03
* Including Oslo-Trondheim, Oslo-Stavanger, Oslo-Tromsø and Oslo-Bergen Cost per ASK

ASK: Available Seat Kilometers

16

19/12/2003
 Agenda

● Introduction
● Company background
● First year of 737 operation
● Financial highlights
● Next steps
● Appendix

17

19/12/2003
 The low-fare operation is becoming profitable,
led by the four major domestic routes

Revenues (MNOK) ** EBITDA (MNOK) **

90 15
80 10
70
5
60
Key 50 -
40 (5)
domestic 30
(10)
routes * 20
10 (15)
- (20)

Jul 03
Feb 03

Mar 03
Jan 03

May 03

Jun 03
Sep 02

Sep 03
Nov 02

Dec 02

Jul 03
Feb 03
Mar 03
Jan 03

Jun 03
May 03
Oct 02

Sep 02

Sep 03
Nov 02
Dec 02
Aug 03

Oct 02
Apr 03

Aug 03
Apr 03
90 15
80 10
70
5
60
50 -
737 40 (5)
operation 30
(10)
20
10 (15)
- (20)
Jul 03
Feb 03

Mar 03

Jul 03
Jan 03

Jun 03

Feb 03
May 03

Mar 03
Sep 02

Sep 03

Jan 03

Jun 03
May 03
Nov 02
Dec 02

Sep 02

Sep 03
Nov 02
Dec 02
Oct 02

Oct 02
Aug 03

Aug 03
Apr 03

Apr 03
* Including Oslo-Trondheim, Oslo-Stavanger, Oslo-Tromsø and Oslo-Bergen
** 3Q02 includes only one month of operation
18

19/12/2003
 Yield affected by seasonality and introduction
of new and longer routes
(NOK)
1.80

1.60

1.40

1.20 ● Yield maintained

Key in the domestic
1.00
domestic market, while cost
0.80
routes* per ASK has
0.60
gradually been
0.40 reduced

Jul 03
Feb 03

Mar 03
Jan 03

May 03

Jun 03
Sep 02

Sep 03
Nov 02

Dec 02
Oct 02

Aug 03
Apr 03
Yield Cost per ASK Revenues per ASK

(NOK)
1.80

1.60
● Reduction in
1.40
Yield and ASK
1.20 from April due to
737
1.00 new and longer
operation routes
0.80

0.60

0.40

Jul 03
Mar 03
Feb 03

May 03
Jan 03

Jun 03
Sep 02

Nov 02

Dec 02

Sep 03
Oct 02

Aug 03
Apr 03

Yield Cost per ASK Revenues per ASK

* Including Oslo-Trondheim, Oslo-Stavanger, Oslo-Tromsø and Oslo-Bergen

ASK: Available Seat Kilometers
19 RPK: Revenue Passenger Kilometers
Yield: Revenues / RPK
19/12/2003
 Norwegian is performing well on critical
performance indicators

Flying more seat kilometers With higher load-factor (RPK/ASK)

(Million ASK) (ASK and RPK in million) (RPK/ASK)
160 80 %
140

120
+108 % 140 70 %
120 60 %
100
100 50 %
80
80 40 %
60 60 30 %
40 40 20 %
20 20 10 %
0 0 0%

Jul 03
Feb 03

Mar 03

May 03
Jan 03

Jun 03
Nov 02

Dec 02
Sep 02

Sep 03
Oct 02

Oct 03
Jul 03
Mar 03
Feb 03

May 03
Jan 03

Jun 03
Sep 02

Nov 02

Dec 02

Sep 03

Aug 03
Oct 02

Apr 03
Aug 03
Apr 03

Key domestic routes* Other routes Cabin factor ASK RPK

Lower cost per production unit (ASK) And employee productivity high
(NOK per ASK) (Pax per employee)
1.0
0.9 -17% 7 000
2001 2002
0.8 6 000
0.7 (Trailing 12
5 000
0.6 months)
4 000
0.5
3 000
0.4
2 000
0.3
0.2 1 000
0.1 0

KLM

Easyjet

Ryanair
SAS

Norwegian
0.0

(3Q03)
Sep 02 Jan-Sep 03 Sep 03 BU (1- SK (1-
3Q03) 3Q03)
Var. Sales Costs Var. Pass. Costs
Freq. Based Flying Costs Time Based Flying Costs
Interval Fixed Costs Overhead

20
Source: TRL, September 2003, SAS 3Q Interim Report
19/12/2003
 Growing online sales: lower cost, customer
ownership and new opportunities

Online distribution is strategic Internet is the fastest growing channel

● Gives Norwegian customer ownership 100%
90%
80%
● Facilitates ticketless travel – the customer 70%
does the work! 60%
50%
40%
● Creates potential upsell opportunities 30%
20%
● Rapid access to real-time demand data 10%
0%

Nov 02

Dec 02

May 03

Jul 03
Oct 02

Jan 03
Feb 03
Mar 03

Jun 03

Oct 03
Sep 02

Sep 03
Aug 03
Apr 03
WEB CC TA

Reduced distribution costs per PAX

NOK
100

80

60

40

20

0
3Q 02 4Q 02 1Q 03 2Q 03 3Q 03

21

19/12/2003
 Ticketless travel: saving 50M NOK and gaining
real-time business intelligence

A fully digitized value-chain with real-time control

Customer
Customer Brings
Brings receipt
receipt to
to Scan
Scan bar-code
bar-code or
or
Customer completes
completes airport Bizzi-card
Board
Board plane
plane
transaction airport Bizzi-card
transaction

Automated
Automated
Issue
Issue receipt
receipt with
with
Norwegian accounting
accounting and
and
barcode via email
barcode via email
auditing
auditing

No physical
ticket – reduced Reduced processing-
Improves customer cost, and real-time
cost and added
experience and business intelligence
convenience
reduce processing to improve sense-and-
cost respond capability

22

19/12/2003
 Prices are adjusted daily in order to maximize
revenue per flight

Observe Orient Decide

Low sales in week Why is demand Change price,
50? low? Review and/or increase
historic and promotion to fill
competitive data seat or do
nothing.

BONO – Back-office
Norwegian

23

19/12/2003
 Price adjustments are implemented on short
notice via appropriate channels and in-flight

Observe Orient Decide Act

• Update revenue
management
database
• Publish and promote
new fares via web,
call-centre and other
appropriate channels

24

19/12/2003
 The loop is completed by observing the daily
market effect of the implemented price change

Observe Orient Decide Act Observe

How did market
respond to
previous price
changes?
Further changes
required?

25

19/12/2003
 Agenda

● Introduction
● Company background
● First year of 737 operation
● Financial highlights
● Next steps
● Appendix

26

19/12/2003
 Income statement reveals a positive EBITDA development
for the low-fare operation

MNOK 4Q02 1Q03 2Q03 3Q03 LTM

Total
Revenues 197.3 238.7 214.9 230.0 881.0
EBITDA (34.3) 18.0 (12.1) (19.6) (48.0)

737-operation
Revenues 146.8 152.5 196.2 212.3 707.7
EBITDA (35.9) (34.0) (8.7) (13.1) (91.6)

● EBITDA of NOK -19.6 million in 3Q03, mainly caused by lack of historical data
which led to excess capacity during July and August.
● In 1Q03, Norwegian received a compensation from Braathens related to the
termination of the Braathens agreement (NOK 37.7 million included in total
revenues)
● In 3Q03, Norwegian made a write-down of NOK 19.6 million related to its
Fokker 50 operation (not included in EBITDA)

27

19/12/2003
 Balance sheet
Figures in NOK 1000 30.09.03 31.12.02

Intangible assets 51 279 32 418

Fixed assets 48 503 56 383
Long-term financial assets 14 166 14 354
Long-term assets 113 948 103 155

Inventory 1 042 8 823

Receivables 143 708 45 159
Cash and bank deposits 58 389 63 237
Sum current assets 203 140 117 219

Total assets 317 087 220 374

Equity 42 783 71 157

Provisions 33 280 9 729

Other long-term liabilities 22 785 32 050
Sum 56 066 41 778

Interest bearing short-term debt - -

Other short-term liabilities 218 238 107 438
Sum 218 238 107 438

Total equity and liabilities 317 087 220 374

28

19/12/2003
 Agenda

● Introduction
● Company background
● First year of 737 operation
● Financial highlights
● Next steps
● Appendix

29
Confidential Draft
19/12/2003
 Next: Expand share in Norway by relentless
focus on cost, utilization and optimized network
Sep 2002 Sep 2003 Mar 2004 May 2004

4 routes 17 routes 25 routes ~35 routes

Subject to change

Routes selection criteria

D Attractive volume?
D Low competition?
D Synergy with overall network?
30

19/12/2003
 Expanding the network leads to better
utilisation, lower cost and more passengers

Further reduction in cost per ASK

(NOK)
1.00 ● Route expansion and plane additions in
0.90 2004 will nearly double production
0.80 capacity compared to current level
0.70
0.60 ● Longer flights and scale benefits will
0.50 reduce cost per ASK significantly during
0.40 2004
0.30
0.20
Q4 2002 (A) Q3 2003 (A) Apr 2004 (F) Q3 2004 (F)

Further growth in PAX per employee

8000
(Last 12 months) ● Passenger volume already reached
7000 1 million (annualized 3Q figures)
6000
5000 ● New routes and increased frequency
4000 will contribute to further increase going
3000 forward
2000
1000 ● Except for crew and cabin personnel,
0 limited need for new manpower due to
Q4 2002 (A) Q3 2003 (A) Apr 2004 (F) Q3 2004 (F)
extensive outsourcing

31

19/12/2003
 Norwegian has captured the position as
Norway’s low-fare carrier
● Strong presence on all major domestic routes
● Prices on domestic routes have been reduced leaving the
domestic market less attractive for new low-fare players
● Aggressive expansion of network to increase utilization and
optimize contribution to fixed costs
● Extreme focus on low cost and high utilization to create
permanent cost advantage

32

19/12/2003
 Agenda

● Introduction
● Company background
● First year of 737 operation
● Financial highlights
● Next steps
● Appendix

34

19/12/2003
 Shareholder structure
Shareholder Shares %
Bjørn Kjos 2 860 000 28 %
Lufttransport 1 345 630 13 %
Torghatten Trafikkselskap 653 250 6%
Ankerløkken Holding AS 520 000 5%
Choice Hotels 435 500 4%
Nor-Norsk Finans AS 435 500 4%
OJADA AS 435 500 4%
Svein Klev 390 000 4%
NAS Hodling AS 324 090 3%
Arne Eggan 273 000 3%
Svein Eskedal 260 000 3%
Bjørn Kise 260 000 3%
Jacobsen & Sønner AS 217 750 2%
Skagen Vekst 217 750 2%
Øivind Hovengen 156 000 2%
Nobuss Eiendommer AS 130 650 1%
T.K. Brødvig AS 130 650 1%
Westco AS 130 650 1%
AS Kvale & Co 130 000 1%
Arne Ribe 130 000 1%
Sum top 20 9 435 920 92 %
Other shareholders 836 810 8%
Total Shares 10 272 730 100 %

35

19/12/2003