Interim Report November 2013–April 2014

SAS takes decisive action in a challenging market
February–April 2014 [1]

  · Revenue: MSEK 8,472 (9,933)
  · Unit revenue (PASK) declined 8.9%
  · Unit cost (CASK) decreased 5.3% [2]
  · EBIT margin: -7.8% (-1.1%)
  · Income before tax: MSEK -1,078 (-329)
  · Net income for the period: MSEK -800 (-405)
  · Earnings per common share: SEK -2.72 (-1.23)
  · Additional revenue and cost measures have been initiated. The cost measures
are expected to have an earnings impact of SEK 1 billion in the 2014/2015 fiscal
year. In addition, longer-term initiatives will be finalized in autumn 2014
  · The outlook for the full year 2013/2014 is presented on page 7

[1] Comparative figures for the corresponding year-earlier period include
Widerøe.
[2] Adjusted for jet fuel and amended pension terms totaling MSEK 450, in the
Feb–Apr 2013 period.
The SAS Group has applied the amended standard for pension reporting, IAS 19 –
Employee Benefits since November 1, 2013. As part of implementing the amended
accounting standard, reported figures for the preceding fiscal year (2012/2013)
have been restated to enable comparison with the 2013/2014 fiscal year. The
effects of the restatement of the SAS financial statements for 2012/2013 can be
found at www.sasgroup.net, under Investor Relations/Reports and
Presentations/Interim reports.
Comments by the President and CEO of SAS:
“Continued intense competition and pressure on prices in the Scandinavian air
travel market reduced margins more than expected and SAS posted an EBT of MSEK
-1,078 for the second quarter. We are deeply disappointed with the results,
which were substantially below our own expectations. However, it is worth noting
that, in April, we posted a record high load factor and the number of passengers
flying with SAS increased slightly more than 300,000 during the quarter. We are
also continuing to reduce the unit cost, which decreased 5.3% over the quarter.
Member numbers have increased substantially since the introduction of our
revamped EuroBonus program and we are continuing to develop the program for our
customers’ benefit.
However, the market trend shows that it is crucial for SAS to act more
aggressively and, accordingly, we are now intensifying revenue and cost
measures. The additional cost measures will enhance operational efficiency and a
further improvement in earnings of SEK 1 billion is expected in the 2014/2015
fiscal year. With the cost measures being implemented, we see an opportunity to
further strengthen the offering to Scandinavia’s frequent travelers through
initiatives including expanding the SAS intercontinental offering. We are
planning new direct routes from Oslo and Stockholm to North America and Asia,
starting in autumn 2015,” says Rickard Gustafson, SAS President and CEO.
SAS discloses this information pursuant to the Swedish Securities Market Act
and/or the Swedish Financial Instruments Trading Act. The information was
provided for publication on June 18, 2014, at 8:00 a.m.