Norwegian Air Shuttle (NAS) investor relations material

Deal rationale and strategic fit

• Acquisition creates a leading integrated Nordic travel group, combining a low-cost airline network with the top Nordic hotel and leisure travel provider, targeting both leisure and business segments and enhancing product offerings, especially for Mediterranean destinations.

• Enables a vertically integrated travel platform, leveraging complementary strengths in scale, network, distribution, holidays, owned concept hotels, and digital platforms, capturing a larger share of customer spend.

• NLTG brings strong Nordic brand presence, robust holiday market exposure, and expertise in packaged travel and hotels, complementing the acquirer's flight network.

• Unlocks growth opportunities in Sweden and Denmark, secures Nordic ownership of NLTG, and supports diversified earnings based on structural growth in demand for Southern Europe holidays.

• Combined group will serve about 30 million customers annually with nearly 160 aircraft and 11,800 employees.

Financial terms and conditions

• Total consideration is approximately SEK 7.94 billion: SEK 3.5 billion in cash and 300 million new shares, with up to 30 million additional shares possible based on share price performance.

• Cash portion funded through available funds, a new bond issue, and other sources arranged before closing.

• Sellers, including Strawberry, Altor, and TDR Capital, will become significant shareholders in the combined entity, subject to a 180-day lock-up period post-closing.

• NLTG delivered SEK 17 billion in revenue and SEK 1,024 million in adjusted EBITDA for LTM ending March 2026.

• No bridge facility required; closing expected after regulatory approval and EGM.

Synergies and expected cost savings

• Substantial cost and revenue synergies expected from aircraft and crew optimization, support functions, network integration, and improved procurement.

• Synergies targeted to drive a ~2% operating margin increase in 2027, with further improvements from 2028.

• Short-term synergies in the hundreds of millions NOK, with margin uplift targeted by 2027.

• Additional revenue opportunities from hotel offerings, expanded concept hotels, and dynamic packaging to existing passenger base.

• Group-wide IT and procurement consolidation to enhance profitability.