Norwegian Air Shuttle ASAQ2 2016 Presentation 14 July 2016

Highlights Q2 2016

SkyTrax awards 2016 for:

World’s Best Low-Cost Long Haul Airline (2nd

time) and Europe’s Best Low-Cost Airline (4th

in a row)

New base at Palma de Mallorca, the 16th in Europe and 20th overall

Added ten new 737-800 aircraft and two 787-9 Dreamliners in first half 2016 (five 737 and one 787 in Q2)

Clean EBITDA of NOK 1 billion (up from 0.8 million)

2

7.7 million passengers in Q2 2016 (+11 %)

3Pax (mill) 1,6 2,3 2,8 3,2 4,0 4,5 5,5 6,4 7,0 7,7

0

1

2

3

4

5

6

7

8

9

Q2 07 Q2 08 Q2 09 Q2 10 Q2 11 Q2 12 Q2 13 Q2 14 Q2 15 Q2 16

Pass

enge

rs (m

illio

n)

+ 11 %

Q2 load factor up to 88 % (+3 pp.)

4

ASK 1 763 2 974 3 469 4 449 5 518 6 357 8 541 12 012 12 919 14 512

Load Factor 79,4 % 78,4 % 78,3 % 75,4 % 78,3 % 76,5 % 76,9 % 79,6 % 85,2 % 87,8 %

79,4 % 78,4 % 78,3 %75,4 %

78,3 % 76,5 % 76,9 %79,6 %

85,2 %87,8 %

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

11 000

12 000

13 000

14 000

15 000

16 000

17 000

18 000

Q2 07 Q2 08 Q2 09 Q2 10 Q2 11 Q2 12 Q2 13 Q2 14 Q2 15 Q2 16

Load

Fact

or

Avai

labl

e Se

at K

M (A

SK)

ASK Load Factor Load+2.6 p.p.

12 % growth in capacity (ASK)

16 % growth in traffic (RPK)

Average flying distance increased by 3 %

Stable market shares in all key airports (12m rolling)

5

0

2 000 000

4 000 000

6 000 000

8 000 000

10 000 000

12 000 000

Oslo Arlanda Copenhagen Helsinki Gatwick Spanish bases

Q2 11 Q2 12 Q2 13 Q2 14 Q2 15 Q2 16

+ 943,000 pax 42 % mkt share

+ 1,135,000 pax22 % mkt share + 192,000 pax

17 % mkt share

+ 173,000 pax12 % mkt share

+ 509,000 pax10 % mkt share

+ 876,000 pax4 % mkt share

Mkt. Size:25 mill

Mkt. Size:23 mill

Mkt. Size:138 mill

Mkt. Size:41 mill

Mkt. Size:17 mill

Mkt. Size:27 mill

Sources: Avinor, Swedavia, Copenhagen Airports, Finavia, Gatwick Airport, Aena

13 % revenue growth in Q2

6

Revenues 4 012 5 043 5 861 6 632Domestic revenue 1 192 1 173 1 362 1 490% y.o.y. chg 17 % -2 % 16 % 9 %International revenue 2 820 3 871 4 498 5 142% y.o.y. chg 31 % 37 % 16 % 14 %

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

Q2 13 Q2 14 Q2 15 Q2 16

NO

K m

illio

n

Domestic revenue

International revenue

Total Revenues

+ 13 %

14 % growth in international revenue, + 9 % for domestic Scandinavia

Flat unit revenue (RASK). RASK in constant currency fell 4 %

3 p.p. higher load offset by 3 % lower yield and 3 % increased stage length

18 % growth in total ancillary revenue in Q2

7

15 % share of Group revenue

Per passenger sales increased by 6 % to NOK 131

Other Ancillary Other Ancillary

Baggage Baggage

SeatingSeating

Pre-sold packages(bundle)

Pre-sold packages (bundle)

Flexibility/ modifications

Flexibility/ modifications

Q2 15 Q2 16

NOK 131

Optional extras

NOK 123

6 % growth in Scandinavia, stronger in Sweden and DenmarkNorway: 33 % of passengers (down from 35 % in Q1 2016)Over 40 % of passengers booking from outside Scandinavia

Growth in number of passengers: Passengers by origin:

Continued strong growth in the US and Spain

8

Norway

Sweden

Spain

Denmark

UK

Finland

USAGermany

France

ItalyPoland

Hungary Other

0% 10% 20% 30% 40% 50%

France

Germany

Poland

Sweden

Denmark

Italy

UK

Hungary

Spain

USA

New base in Palma: a total seven bases in Spain

9

New charter agreement for the US market

Utilize capacity better in the European low seasonThree aircraft for winter 2016/17Agreement with Apple Vacations and Funjet, two leading US tour operatorsFlights from Chicago/Rockford and MilwaukeeMore than 600 flights to multiple destinations in Mexico, Jamaica and the Dominican Republic

Winter operations with seven aircraftExpanding Caribbean winter program with FLL-GuadeloupeOver-night connection from Europe to French Caribbean through FLL, BOS and JFKAdded frequency to JFK-Guadeloupe to 4 weekly

10

Growing long-haul in Europe and to/from USA

11

Scaling up the widebody fleet to 32 by 2018

12

2013 2014 2015 2016 2017 2018

Aircraft 3 7 8 12 21 32Seats 873 2 037 2 328 3 704 6 800 10 584

Deliveries 787-8(291 seats)

Deliveries 787-9(344 seats)

Widebody aircraft (delivered and firm orders)

Convert part of Airbus order to A321neo LR

Original order of 100 Airbus 320neo’s for delivery in 2016-2021

30 of these orders will be converted to the bigger A321neo LR

The A321neo LR will be operated by Norwegian

Delivery schedule: 2019: 8 aircraft 2020: 11 aircraft2021: 11 aircraft

13

Advantage of the A321neo LR vs. A320neo

Source: Airbus 14

180220

3000 nm

3500 nm

+40pax

A320neo

A321LR+500nm

+15%

- 40%

A321LR

Vs A320neoVs Widebody

- 5%

- 15%

Vs A320neoVs Widebody

COST PER TRIP COST PER SEAT

- 40% - 15 %

Cost per seatsavings compared

to a widebody aircraft

Cost tripsavings compared

to a widebody aircraft

40 more seats comparedto an A320neo

A321LR extendedrange with ACTs

«Short long-haul» 500 nm wider range than A320neo (+17 %)

15Source: Airbus

Top modern fleet with an average age of 3.6 years

16

8 58 11 1320

22 2323 22

115 5

2

2 55 5

55 5

5

7 16 21

2325 29

2927 23 19 15

28

1013

13

1313

1313

2

7 15 23

30 41 5168

8587

6 12

2

55

9

14

20

1

23

3

7

12

8 11 1322

3240

46

5762

68

85

9599

116

144

159

0

20

40

60

80

100

120

140

160

2003year-end

2004year-end

2005year-end

2006year-end

2007year-end

2008year-end

2009year-end

2010year-end

2011year-end

2012year-end

2013year-end

2014year-end

2015year-end

2016year-end

2017year-end

2018year-end

B788/B789 Owned

B788/B789 Leased

B737 MAX 8 owned

B738 owned

B738 S&LB

B738 leased

B733 owned

B733 leased

M80 leased

Re-deliveries 737-800-744 seats

2016:Deliveries 737-800

+3,162 seatsDeliveries 787-9

+1376 seats

Unit cost comparison based on the latest full-year results (in NOK)

17

Sources: Based on official full-year 2015 annual report for Norwegian Air Shuttle, Finnair, Vueling, SAS Group (31.10.2015), Easyjet (30.09.2015), and full-year 2015 report for Ryanair and WizzAir (31.03.2016). Eurowings figures are from the “Eurowings Management Presentation” 10.06.2016.

• Cost per available seat kilometer is an industry-wide cost level indicator often referred to as “CASK”. Usually represented as operating expenses before depreciation and amortization (EBITDA level) over produced seat kilometers (ASK). • Foreign exchange rates used are equivalent to the daily average rates corresponding to the reporting periods and as stated by the Central Bank of Norway• Note: For some carriers the available financial data represents Group level data which may include cost items from activities that are unrelated to airline operations.• Other losses / (gains) is not included in the CASK concept as it primarily contains hedge gains/losses offset under financial items* as well as other non-operational income and/or cost items such as gains on the sale of spare part inventory and unrealized foreign currency effects on receivables/payables and (hedges of operational expenses).

*Norwegian hedges USD/NOK to counter foreign currency risk exposure on USD denominated borrowings translated to the prevailing currency rate at each balance sheet date. Hedge gains and losses are according to IFRS recognized under operating expenses (other losses/ (gains) while foreign currency gains and losses from translation of USD denominated borrowings are recognized under financial items.

0,27 0,29

0,42

0,51 0,54

0,60

0,67

0,77

0,82

-

0,10

0,20

0,30

0,40

0,50

0,60

0,70

0,80

0,90

Ope

ratin

g co

st E

BITD

A le

vel p

er A

SK (C

ASK)

Financials

18

EBT improved to NOK 0.9 billion in Q2

19

Q2 13 Q2 14 Q2 15 Q2 16 Q2 13 Q2 14 Q2 15 Q2 16EBITDAR margin 22 % 11 % 22 % 30 % EBT margin 7 % -3 % 8 % 14 %

878

563

1 285

1 965

0

500

1 000

1 500

2 000

2 500

NO

K m

illio

n

277

-137

456

930

-250

0

250

500

750

1 000

NO

K m

illio

n

EBT development Q2EBITDAR development Q2

(NOK million) Q2 15 Q2 16 Change

Revenue 5 861 6 632

EBITDAR 1 285 1 965 681

EBITDA 765 1 324 559

Pre-tax profit (EBT) 456 930 474

Net profit 325 745

Underlying EBITDA* increased to NOK 1 billion

20* Underlying (clean) EBITDA adj for other losses/gains and non-recurring items

NOK million Q2 2015 Q2 2016 chg

Revenue 5 861 6 632 771 EBITDA as reported 765 1 324 559 Other losses/gains 100 460 360 EBITDA excl other losses/gains 665 864 199

Non-recurring items:- Additional mainenance exp. engine overhaul -84 - - passenger compensation according to EU reg. -34 -81 - wetlease -11 -82 Sum non-recurring items -129 -163

Clean EBITDA 794 1 027 233 Margin clean EBITDA 13,5 % 15,5 %

Unit cost cut by 1 % to NOK 0.40

CASK ex fuel +7 % to NOK 0.31 (fuel cost per ASK -23 %)

4 % negative impact of currency

21

0,410,35

0,380,35

0,32 0,310,29 0,28 0,29 0,31

0,12 0,18

0.15 0,12

0,15 0,15

0,14 0,14 0,11 0,09

0,00

0,05

0,10

0,15

0,20

0,25

0,30

0,35

0,40

0,45

0,50

0,55

Q2 07 Q2 08 Q2 09 Q2 10 Q2 11 Q2 12 Q2 13 Q2 14 Q2 15 Q2 16

Ope

ratin

g co

st E

BITD

A le

vel p

er A

SK (C

ASK)

CASK excl fuel

Fuel share of CASK

Other losses / (gains) is not included in the CASK concept as it primarily contains hedge gains/losses offset under financial items* as well as other non-operational income and/or cost items such as gains on the sale of spare part inventory and unrealized foreign currency effects on receivables/payables and (hedges of operational expenses).*Norwegian hedges USD/NOK to counter foreign currency risk exposure on USD denominated borrowings translated to the prevailing currency rate at each balance sheet date. Hedge gains and losses are according to IFRS recognized under operating expenses (other losses/ (gains) while foreign currency gains and losses from translation of USD denominated borrowings are recognized under financial items.

Full impact of lower fuel cost, fuel unit cost -23%

Stable share of personnel cost at 14 %

Lower share of fuel cost - reduced to 19 %

Fuel hedging: 50 % of 2016 and 27 % of 2017

22

0,00

0,02

0,04

0,06

0,08

0,10

0,12

0,14

0,16

Q2 11 Q2 12 Q2 13 Q2 14 Q2 15 Q2 16

12 mths rolling 12 mths rolling 12 mths rolling 12 mths rolling 12 mths rolling 12 mths rolling

Personnel

Other

Technical

Airport/ATC

Leasing

Depreciation

Sales & Distribution

Handling

Fuel

Fuel19 %

Personnel14 %

Airport & ATC13 %Handling

12 %

Leasing10 %

Technical6 %

Gen. and adm. exp.

5 %

Other Flight ops. exp.

4 %

Depr.4 %

Sales/ distrib.

2 %

NOK 3.2bn cash-flow from operations in first half

23

Invested a net NOK 2 bn in new aircraft of which NOK 1.2 financed by own cash

A strong NOK 600m increase in pre-sold tickets in first half compared to 2015

NOK 3 billion in cash at the end of Q2

Q2 Q2 H1 H1NOK million 2015 2016 Chg 2015 2016 Chg

Profit before tax 456 930 474 -321 -62 259Depreciation 245 318 73 465 607 142Change air traffic settlement liabilities 142 283 141 2 639 3 237 598Change working capital 472 -308 -780 -473 -551 -78Net cash flows from operating activities 1 315 1 223 -92 2 310 3 231 921Net cash flows from investing activities -1 092 -1 986 -894 -2 689 -3 652 -963Net cash flows from financial activities 1 224 625 -599 1 420 999 -421Foreign exchange effect on cash -17 -41 -24 -7 -22 -15

Net change in cash and cash equivalents 1 430 -179 -1 609 1 034 556 -478

Cash and cash equivalents, end of period 3 045 3 010 -35 3 045 3 010 -35

Improving equity ratio in spite of adding 16 on-balance aircraft

24

Added sixteen new 737-800 on balance the last 12 months + PDP’s

NOK 17 bn net debt (NOK 16 bn in Q1)

Equity increased by NOK 580m (8 % equity ratio, 13 % incl. mv of Bank Norwegian)

3 045Cash3 010

2 801Receivables

3 316

2 086 Other assets

2 311

4 755 Aircraft PDP

5 449

15 082

Aircraft20 914

0

3 000

6 000

9 000

12 000

15 000

18 000

21 000

24 000

27 000

30 000

33 000

36 000

Q2 15 Q2 16

NO

K m

illio

n

Equity2 746 2 163

Pre-sold tickets7 251 5 605

Otherliabilities

4 8434 328

PDP and bonds3.769

5 081

Aircraft Financing

16 392

10 593

Q2 16 Q2 15

Outlook for 2016

Markets and business Soft macro and passenger tax introduced in NorwayMonitoring demand in the UK post Brexit, limited changes to bookingsBookings on par with last year, capacity adjusted

An estimated production growth (ASK) of 18 % (unchanged)Short-haul + 12 %, Long-haul + 40 %Increasing distance driven by mix (long-haul)

Unit cost in the area of NOK 0.38 (up from 0.37)Impact of wetlease and cancellationsAssumptions: Fuel price of USD 350 per metric ton, USD/NOK 8.25, EUR/NOK 9.00 Based on the current route portfolio and planned production

21 new aircraft in 2016 (unchanged)Seventeen direct buy 737-800Four leased 787-9 Dreamliners

25

Summary

Stable markets and good momentum on bookings

US Charter contracts and launched winter routes to the French Caribbean, Mexico, Jamaica and Dominican Republic

Converted 30 Airbus Neo orders to A321’s

Passengers voted Norwegian best in SkyTrax awards for 2016

Financing on-track

Limited immediate direct impact of Brexit

Successful listing of Bank Norwegian on OSE (ticker NOFI)

26

Norwegian operates 450 routes to 140 destinations

27

From bases in

SWEDEN DENMARK FINLAND

From the

UK base

From bases in

SPAIN

From bases in the

USA & THAILAND

From bases in

NORWAY