Norwegian

Investor Presentation

December 2003

19/12/2003

2

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.

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Agenda

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

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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

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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

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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

F. Carl Størmer, SVP, Marketing● Ex. StudentUniverse, Inc. and IBM Consulting Group● Master in Arts Management

Ola Krohn-Fagervoll, EVP● Ex. Concordia, A.T. Kearney, Saga Petroleum and British Petroleum● Master in Business Administration

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Agenda

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

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Norwegian is Norway's only low-fare carrier

● Started as an airline in 1993

● Low-fare carrier since September 2002

● Proven business and growth experience

10 years experience

● Point-to-point only● Targets Norwegian

business and leisure customers

● 70% sales through own channels, 30% through travel agencies

Low-fare strategy

● Achieved 20% market share in Norway on key routes

● Low-fare revenues from zero to approx. NOK 1 billion (annualized)

Rapid growth in one year

From 4 to 17 point-to-point routesEight leased B737 planes

London

StavangerOslo

Bergen

Molde

Bodø

Evenes

Tromsø

Alta

Trondheim

Ålesund

Faro Malaga

Murcia

Stockholm

StavangerOslo

Bergen

Trondheim

Tromsø

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Since September 2002, Norwegian has established a position for profitable growth*

* Fokker 50 operation not included

n.a.

Sept. 02 Sept. 03

No of passengers 65 879 129 298

Revenues (mnok) 33.7 88.4

EBITDA 737-operation (mnok) (13.4) 7.0

No of airplanes 6 8

Airborne hours (ABH) 769 1 311

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

No of man years 254 300

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

18 %

109 %

70 %

33 %

162 %

96 %

n.a.

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Norwegian has developed a strong brand

● 58% of population associate brand with low price 1)

● A brand consisting of value for money, smart purchase, and a safe experience.

● Voted #2 after the Salvation Army as the most trusted brand in Norway in 2003

1) Interrra market research

Best in class on customer value and price

2003 Omdømmeprisen

”Norwegian deserves recognition for rapidly building a good brand without 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 enthusiasm and empathy. A corageous feat as the company has successfully 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).

2003 Omdømmeprisen

”Norwegian deserves recognition for rapidly building a good brand without 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 enthusiasm and empathy. A corageous feat as the company has successfully 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).

34%

58%

21%

5%

21%

8%7% 7%

A company that gives you valuefor the money

Has the lowest fares

Norwegian SAS Braathens Widerøe

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Norwegian's position is a result of experience, timing and strategy

Experience Timing Strategy

● Proven operational and business experience

● Good timing in an attractive market

● Disciplined execution of a focused low-fare strategy

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The company has a solid base of necessary experience

In running an operational airline● Started operation in 1993 with three F50 aircrafts, later expanded to six

planes● No major incidents

In running a profitable business● Showed profit every year as a supplier to Braathens● Expanded in 2000 with Lufttransport acquisition● Turned Lufttransport into Scandinavia's premier ambulance carrier -

later demerged in 2002

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

months!

Operational experience

Business experience

Growth experience

ExperienceExperience Timing Strategy

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In 2002 an opportunity existed to establish a low-fare carrier in the domestic market

● Norwegians fly more than other Scandinavians

● Majority of travel point-to-point● High internet penetration

● Frequent flyer programs eliminated by government to level the playing field

● High fares, little competition

SAS monopolist but vulnerable

Norway well suited for a low-fare player

Buyers market in the aviation industryBuyers market in the aviation industry

● Oversupply of capacity led to favorable leases and supplier agreements

● Surplus of skilled people with local aviation expertise

Experience TimingTiming Strategy

Scandinavia’s largest market

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Simple product and processes

Norwegian captured this opportunity with a feasible low-fare strategy by focusing on cost

Experience Timing StrategyStrategy

● Experienced staff to handle rapid growth● Competitive outsourced agreements with

key suppliers

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

● Simple No-frills point-to-point product● Ticketless travel, online distribution and

real-time revenue management

Standardized fleet

Focus on core-competence

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Oslo-Trondheim Oslo-Bergen Oslo-Stavanger Oslo-Tromsø Sum / Other

The company selected Norway's four most attractive point-to-point markets

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

StavangerOslo

Bergen

Trondheim

Tromsø

Initial routes in September 2002

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

590640

700

700

790

870

1050

1190

1320

1330

1340

Copehagen-Aalborg

Helsinki-Oulu

Stockholm-Umeå

Bergen Stavanger

Oslo-Tromsø

Stockholm-Luleå

Oslo-Stavanger

Stockholm-Malmö

Stockholm-Gothenburg

Oslo-Bergen

Oslo-Trondheim

* Including Oslo-Trondheim, Oslo-Stavanger, Oslo-Tromsø and Oslo-Bergen(1) Source: Avinor / SSB(2) Source: Report from the Nordic competition authorities 1/2002

(in 1000 pax)

~ 50%

0

2 000

4 000

6 000

8 000

10 000

12 000

1998 1999 2000 2001 2002

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0.50

0.60

0.70

0.80

0.90

1.00

1.10

Sep

02

Oct

02

Nov

02

Dec

02

Jan

03

Feb

03

Mar

03

Apr

03

May

03

Jun

03

Jul 0

3

Aug

03

Sep

03

Cost per ASK

0

20

40

60

80

100

120

140

160

Sep

02

Oct

02

Nov

02

Dec

02

Jan

03

Feb

03

Mar

03

Apr

03

May

03

Jun

03

Jul 0

3

Aug

03

Sep

03

Oct

03

Key domestic routes* Other routes

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

London

StavangerOslo

Bergen

Molde

Bodø

Evenes

TromsøAlta

Trondheim

Ålesund

FaroMalaga Murcia

Stockholm

New routes were added ...

... to reduce cost per ASK

... to increase passengers and ...

+96%

-17%

* Including Oslo-Trondheim, Oslo-Stavanger, Oslo-Tromsø and Oslo-BergenASK: Available Seat Kilometers

(passengers in 1000)

(NOK)

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Agenda

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

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

Revenues (MNOK) **

Key domestic routes *

737 operation

EBITDA (MNOK) **

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

-102030405060708090

Sep

02

Oct

02

Nov

02

Dec

02

Jan

03

Feb

03

Mar

03

Apr

03

May

03

Jun

03

Jul 0

3

Aug

03

Sep

03

-102030405060708090

Sep

02

Oct

02

Nov

02

Dec

02

Jan

03

Feb

03

Mar

03

Apr

03

May

03

Jun

03

Jul 0

3

Aug

03

Sep

03

(20)

(15)

(10)

(5)

-

5

10

15

Sep

02

Oct

02

Nov

02

Dec

02

Jan

03

Feb

03

Mar

03

Apr

03

May

03

Jun

03

Jul 0

3

Aug

03

Sep

03

(20)

(15)

(10)

(5)

-

5

10

15

Sep

02

Oct

02

Nov

02

Dec

02

Jan

03

Feb

03

Mar

03

Apr

03

May

03

Jun

03

Jul 0

3

Aug

03

Sep

03

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0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

Sep

02

Oct

02

Nov

02

Dec

02

Jan

03

Feb

03

Mar

03

Apr

03

May

03

Jun

03

Jul 0

3

Aug

03

Sep

03

Yield Cost per ASK Revenues per ASK

Yield affected by seasonality and introduction of new and longer routes

Key domestic routes*

737 operation

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

Sep

02

Oct

02

Nov

02

Dec

02

Jan

03

Feb

03

Mar

03

Apr

03

May

03

Jun

03

Jul 0

3

Aug

03

Sep

03

Yield Cost per ASK Revenues per ASK

* Including Oslo-Trondheim, Oslo-Stavanger, Oslo-Tromsø and Oslo-BergenASK: Available Seat KilometersRPK: Revenue Passenger KilometersYield: Revenues / RPK

● Reduction in Yield and ASK from April due to new and longer routes

● Yield maintained in the domestic market, while cost per ASK has gradually been reduced

(NOK)

(NOK)

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0.00.10.20.30.40.50.60.70.80.91.0

Sep 02 Jan-Sep 03 Sep 03 BU (1-3Q03)

SK (1-3Q03)

Var. Sales Costs Var. Pass. CostsFreq. Based Flying Costs Time Based Flying CostsInterval Fixed Costs Overhead

Norwegian is performing well on critical performance indicators

Flying more seat kilometers

And employee productivity high

With higher load-factor (RPK/ASK)

0

20

40

60

80

100

120

140

Sep

02

Oct

02

Nov

02

Dec

02

Jan

03

Feb

03

Mar

03

Apr

03

May

03

Jun

03

Jul 0

3

Aug

03

Sep

03

Key domestic routes* Other routes

+108 %(Million ASK)

Lower cost per production unit (ASK)

-17%

(NOK per ASK)

Source: TRL, September 2003, SAS 3Q Interim Report

(RPK/ASK)

0

20

40

60

80

100

120

140

160

Sep

02

Oct

02

Nov

02

Dec

02

Jan

03

Feb

03

Mar

03

Apr 0

3

May

03

Jun

03

Jul 0

3

Aug

03

Sep

03

Oct

03

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

Cabin factor ASK RPK

(ASK and RPK in million)

(Pax per employee)

01 0002 0003 0004 0005 0006 0007 000

SA

S

KLM

Easy

jet

Rya

nair

Nor

weg

ian

(3Q

03)

2001 2002(Trailing 12

months)

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Growing online sales: lower cost, customer ownership and new opportunities

Internet is the fastest growing channel

Reduced distribution costs per PAX

0%10%20%30%40%50%60%70%80%90%

100%

Sep

02

Oct

02

Nov

02

Dec

02

Jan

03

Feb

03

Mar

03

Apr 0

3

May

03

Jun

03

Jul 0

3

Aug

03

Sep

03

Oct

03

WEB CC TA

● Gives Norwegian customer ownership● Facilitates ticketless travel – the customer

does the work!● Creates potential upsell opportunities● Rapid access to real-time demand data

Online distribution is strategic

0

20

40

60

80

100

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

NOK

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A fully digitized value-chain with real-time control

Ticketless travel: saving 50M NOK and gaining real-time business intelligence

Norwegian

Customer completes transaction

Customer completes transaction

Customer

Issue receipt with barcode via emailIssue receipt with barcode via email

Scan bar-code or Bizzi-card

Scan bar-code or Bizzi-card

Automated accounting and

auditing

Automated accounting and

auditing

Board planeBoard plane

No physical ticket – reduced cost and added

convenience

Improves customer experience and

reduce processing cost

Reduced processing-cost, and real-time

business intelligence to improve sense-and-

respond capability

Brings receipt to airport

Brings receipt to airport

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Prices are adjusted daily in order to maximize revenue per flight

Low sales in week 50?

Observe Orient

Why is demand low? Review historic and competitive data

Decide

Change price, and/or increase promotion to fill seat or do nothing.

BONO – Back-office Norwegian

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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

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The loop is completed by observing the daily market effect of the implemented price change

Observe Orient Decide Act How did market respond to previous price changes?

Further changes required?

Observe

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Agenda

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

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Income statement reveals a positive EBITDA developmentfor the low-fare operation

● 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 itsFokker 50 operation (not included in EBITDA)

MNOK 4Q02 1Q03 2Q03 3Q03 LTM

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

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

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Balance sheetFigures 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

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Agenda

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

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Next: Expand share in Norway by relentless focus on cost, utilization and optimized network

17 routes4 routes 25 routes

Sep 2002 Sep 2003 Mar 2004 May 2004

~35 routes

Subject to change

Routes selection criteriaAttractive volume?Low competition?Synergy with overall network?

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Expanding the network leads to better utilisation, lower cost and more passengers

Further reduction in cost per ASK

Further growth in PAX per employee

● Route expansion and plane additions in 2004 will nearly double production capacity compared to current level

● Longer flights and scale benefits will reduce cost per ASK significantly during 2004

(NOK)

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

Q4 2002 (A) Q3 2003 (A) Apr 2004 (F) Q3 2004 (F)

0

1000

2000

3000

4000

5000

6000

7000

8000

Q4 2002 (A) Q3 2003 (A) Apr 2004 (F) Q3 2004 (F)

(Last 12 months) ● Passenger volume already reached 1 million (annualized 3Q figures)

● New routes and increased frequency will contribute to further increase going forward

● Except for crew and cabin personnel, limited need for new manpower due to extensive outsourcing

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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

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Agenda

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

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Shareholder structureShareholder 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 %