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GET READY TO
EXPLORE
Company presentation
0
September
IMPORTANT NOTICE AND DISCLAIMER
This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or
otherwise acquire securities in Hurtigruten Group AS (the "Company") or any affiliated company thereof.
This presentation may include certain forward-looking statements, estimates, predictions, influences and projections relating to the business, financial
performance and results of the Company and its affiliates and/or the industry in which it operates. Forward-looking statements concern future circumstances and
results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans",
"estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. These forward-looking statements may or may not prove to be correct and no
representation is made as to the accuracy of such statements, estimates, projections, predictions and influences. Forward-looking statements involve risk and
uncertainty because they relate to events and depend on circumstances that will occur in the future. The information and opinions contained in this presentation
are subject to change without notice. Except as required by law, the Company assumes no obligation to update any forward-looking statements or to conform
these forward-looking statements to its actual results.
This presentation contains alternative performance measures that are not required by or presented in accordance with IFRS. These non-IFRS measures may not
be comparable to other similarly titles measures of other entities and should not be considered in isolation or as a substitute for the Company's operating results
as reported under IFRS. Definitions and calculations of alternative performance measures are presented in the Company's interim reports.
This presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated. The release, publication or
distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released,
published or distributed should inform themselves about, and observe, such restrictions.
1
Company profile
2
Leading expedition travel company focusing on sustainable expedition cruising
Unparalleled commitment to An inspiring global brand Digital ownership of guests
sustainability and to enhancing synonymous with experience-focused seeking authentic and unique travel
local communities travel on sea and land experiences
Unique land offerings that Global operational excellence; Able to A premium product with world
operate safely and at scale in
enhance and differentiate our cruise leading experts and the best local food
sailings all areas of the world and beverages
3
Global leader in cruise-based exploration and adventure travel with strong financial
performance pre Covid-19 (As of Q1 2020)
Exploration and adventure travel – high growth and margin businesses
Expedition Norwegian Coast Landbased Government agreement4
A B C D
Honningsvåg
Hammerfest Vardø
Expedition-based cruises to the Arctic, Authentic exploration cruise offering along the Landbased operations at Svalbard and in Contract with the Norwegian
Tromsø government
Vadsø
Kirkenesfor
Antarctica, North America and South America Norwegian coast Kirkenes, including hotels and activities transportation
Risøyhamnof travelers and cargo
Harstad
Svolvær
Bodø
Øres
Brønnøysund
Kristiansund
Torvik Trondheim
Molde
Måløy Ålesund
Routes
Bergen Ports
CAGR
17-Q120 LTM 35.4% 2.6% -4.4% 1.8%
4%
5%
Revenue contribution1
Expedition expected to account 12%
27% for ~50% of capacity in 2021.
Q1 2020 LTM
Segment with >100% higher
gross revenue yield compared 56%
to Norwegian Coast historically2
EUR 170m EUR 352m3 EUR 28m EUR 75m
EURm 2017 2018 2019 Q1 2020 LTM
Revenue 527 566 619 630
EBITDA excl. gains/losses (Norm.)5,6 107 128 145 145
% Margin (adjusted) 20.3% 22.6% 23.8% 23.0%
Note: All numbers presented are based on Hurtigruten Group AS on a consolidated basis
1) Figures shown before internal eliminations of EUR 1m
2) Gross revenue yield excluding government contract. Defined as (Total revenue – Contractual revenues – Goods revenues) / Passenger cruise nights
3) Excluding revenue from the Government agreement (contractual revenue and goods revenues) 4
4) Exclusive, fixed fee contract with the Norwegian Government for transportation of distance travelers and cargo between Bergen in the south of Norway and Kirkenes in the north, with 33 northbound and 32 southbound departures (i.e. 34 ports served along the coast in total) 7 days a week, 365 days a year with 11 vessels
(expires end of 2020) – reported under Norwegian Coast segment
5) Normalisations and adjustments of,EUR 19m, 5m, 22m and 17m in 2017, 2018, 2019 and Q1 2020 LTM, respectively. Further details about normalisations and adjustments are provided on page 32
6) In 2018, 2019 and 2020, leasing contracts are booked in accordance with IFRS 16. 2016-2017 not restated
We entered 2020 with a history of strong growth en-route for EBITDA >EUR 200m pre
Covid-19 with two state of the art vessels just delivered
Consistent positive normalised adjusted EBITDA improvement pre Covid-191 Clear bridge to achieve EBITDA >EUR 200m in 2020 pre Covid-192
EURm EURm
160 220
LTM normalised adjusted EBITDA EUR 150m
LTM reported EBITDA before other gains/losses
150 207
CAGR 18%
140 200
130
120 180
110
100 160
150
90
80 140
LTM Feb Government Full year RA Full year FN Project ECO SG&A increase Pf norm adj
2020 norm agreement fixed contribution contribution EBITDA
adj EBITDA
• Consistent upward trajectory leading into Covid-19 • The uplift is mainly explained by full year earnings contribution from Amundsen
and Nansen
• LTM February 2020 EBITDA at all time high with EUR 150m
• ~80% of the budgeted group revenues for 2020 were pre-booked as of 1 March
2020, up from ~60% in January 2020
1) As of 1st of January 2020 Hurtigruten is changing functional and reporting currency to EUR. LTM graph is based on last three years reported numbers and normalization as if the functional and reporting currency was EUR for the period 2017 to YE 2019 in accordance with IFRS 5
2) Numbers are converted from NOK to EUR using a EUR/NOK exchange rate of 9.8500 which was the basis of the 2020 budget
Capacity deployment from 2021 and onwards to be split 50/50 between Expedition and
Norwegian Coast
2020 year end 2021 Estimated available passenger cruise nights per segment
Norwegian Coast Expedition Expedition Norwegian Coast Available passenger cruise nights (thousands)
Expedition segment expected to constitute
more than half of total capacity from 2021
and onwards. With the higher yield per
PCN this is expected to drive topline and
EBITDA growth when travelling resumes
MS Vesterålen MS Lofoten1 MS Fram MS Vesterålen 85% 15% 81% 19% post Covid-19
MS Spitsbergen
1 619 1 649
341 552
MS Nordnorge MS Trollfjord MS Nordstjernen2 MS Maud MS Nordnorge
(MS Maud) (MS Trollfjord)
45% 55% 37% 63%
1 059 1 062 1 080
MS Nordkapp MS Finnmarken MS Eirik Raude MS Nordkapp
(MS Otto Sverdrup) (MS Midnatsol) 943
MS Polarlys MS Spitsbergen MS Otto Sverdrup MS Polarlys
(MS Finnmarken) 489
288
MS Richard With MS Midnatsol MS Fram MS Richard With
(MS Eirik Raude)
2019 2020e 2021e 2022e
MS Nordlys MS Fridtjof Nansen MS Fridtjof Nansen MS Nordlys 1 907 2 128 2 121 2 023 3
Norwegian Coast Expedition Total available passenger cruise nights
MS Kong Harald MS Roald Amundsen MS Roald Amundsen MS Kong Harald % of total available passenger cruise nights
Yield based on gross booking revenue (EUR)
Note that yield based on booking figures does not include all revenue streams (such as e.g.
1) Will be taken out of service in December 2020 onboard spending) and can not be compared to yield calculated based on reported figures
2) Time charter used for Svalbard cruises
3) APCN reduced due to expected LNG docking of MS Kong Harald
6
Sustainability is at the core of Hurtigruten’s way of operating
Several tangible initiatives to leave a footprint that our company and our guests can be proud of and to achieve the 2040 zero emission target
Member/partner of climate/polar organisations and initiatives
• First major travel company in the world and first cruise line to remove single-
use plastic from all its ships and hotels
Hurtigruten is a sustainability pioneer within the cruise industry
• On track to reduce plastic waste by 32 tons annually
• Advocates for a total ban on HFO1 – has used MGO/MSD1 since 2009
• Have built the world’s first hybrid-electric powered expedition cruise ships
• Will retrofit several ships with LNG propulsion, also compatible with climate-
neutral biogas, paving the way for low emission shipping on all routes
• Takes an active role to reach zero emission target by 2040 through investing
in R&D of fossil-free fuel alternatives UN Sustainable Development Goals interrelated in the core of our operations
and governance system2
• Arranges beach clean-ups and climate lectures to raise awareness
• Invites all guests to join crew members picking up litter at all destinations
where this is possible
Examples:
• Focuses on minimising food waste
“All employees of Hurtigruten
• Dedicated to enhancing local communities – sources food and
shall be given equal
services/activities from local suppliers opportunities for employment
and professional development,
regardless of their gender,
ethnic and cultural background,
• Has established Hurtigruten Foundation to support great sustainability religion, age, sexual orientation,
functional ability, and
initiatives political view”
• Conserving the world’s polar bear population, fighting against marine and HRG gender equality policy
plastic pollution and supporting local initiatives excerpt
1) HFO = Heavy fuel oil, MGO = Marine gas oil, MSD = Marine special distillate
2) Selected UN Goals
7
Well positioned for the rebound when travel resume in 2021 through fleet size,
distribution platform, brand recognition and digital customer ownership
Fleet size Distribution platform Brand recognition Digital and customer ownership
Large and flexible fleet…. Local distribution teams on the ground in key Unique, powerful and well-known brand Hurtigruten is investing in digital development in
markets… order to strengthen customer ownership and
Hurtigruten brand awareness3 reduce the future customer acquisition cost
Unique, purpose-built and versatile fleet
91% How Hurtigruten creates customer ownership:
93%
Identify customers and capture contact information
Vessels 84% ⚫ Resilient customer database where insight regarding guests is
connected
84%
16 ⚫ Previous trips, preferences, excursions, feedback, etc.
59%
59%
Provide a seamless customer journey from
…with leading position in the expedition …driving sales in all regions
inspiration to booking
market and a unique 500 pax offering 43%
⚫ New B2B portal aimed at strengthening relationships with agents
45%
Expedition cruise market capacity in 2021 (# of berths)1 2021 booked revenue by geography2 ⚫ Significant investments in B2C sites tailored to each of the main
markets
3 670
9%
10% 8%
2 462
Provide value-added services while travelling
⚫ Guests get access to value-added services, incentivising
DE 6%
customer to self-register and add details of previous trips
1 105
Increasing awareness in
6%
972
EMEA US – large remaining
854
⚫ Hurtigruten App, MyPage, Expedition Logbooks, etc.
746
714
22%
552
43%
420
406
FR potential for increased
4% awareness in growth
NO
4% markets
Lindblad
Silversea
Oceanwide
Hapag-Lloyd
CIN definition
UnCruise
Hurtigruten,
Ponant
Seabourn
Australis
Quark
UK Inspire and sell next trip
US ⚫ Provide inspiration and offers for future trips through a
8% 3% combination of channels (e.g. app, e-mail, onboard screens)
5% 4% 2018 2019 ⚫ Analytics and algorithms to build targeted offers and
7% communication
Source: Cruise Industry News – 2019 Expedition Market Report
1) Scenic is excluded due to uncertainty with regards to delivery of Scenic Eclipse II as the yard is in financial distress
2) Port-to-port included in Nordic. As of 13 January 2020
3) Question: Which of the following exploration/adventure/expedition cruise companies are you aware of? N = 2 500 8
Majority of customer base in Northern Europe provides a good foundation for a swift rebound post Covid – 19
Northern Europeans have multiple options when planning a voyage with Hurtigruten due to favourable location and communication
Hurtigruten is well positioned to bounce back quickly post Covid-19 with its
customer base and key itineraries centered around Northern Europe Direct flights and other transportation alternatives
⚫ With Covid-19 guidelines still restricting international travel in most Northern Direct flights from large
cities in Europe to Bergen
European countries, non-diversified cruise lines dependent on passengers
from all corners of the world are experiencing extraordinary hardship Northern Europe is both a
London - Bergen
destination and core source
⚫ Hurtigruten is relatively well-positioned in the cruise segment, with a majority market to Hurtigruten
Hamburg - Bergen
of the customer base located in Northern Europe – in close proximity to the
itineraries + 40 other cities
⚫ When restrictions are gradually lifted all over Europe, domestic travel within
European cities where
the European Union and Norway is expected to surge Hurtigruten has turn around
⚫ Direct flights from large European cities to Bergen greatly enhances the London/Dover
attractiveness of Hurtigruten as a travel destination
Hamburg
⚫ Starting sailing with Dover and Hamburg as turnaround ports to cater for close
proximity for these markets to embark the ship.
⚫ Hurtigruten is monitoring the development of the Covid-19 pandemic Share of European guest
in pre Covid 19 2020
continuously and evaluate whether or not we are of the opinion that it is safe bookings
to sail
Germany – 41%
UK – 17%
Direct flight
Nordics – 20%
European port
Rest of Europe – 12%
91
Business Update 1H 2020
101H 2020 Update
The Covid-19 pandemic has temporarily decreased the level of travel and the cruise-based travel industry has more or less
laid up their fleet until Q4 2020
Hurtigruten started operating the Coastal segment on the 16th of June and is now currently operating 6 ships in the Bergen to
Kirkenes service. Hurtigruten initiated Expedition sailings with the first cruise starting out of Hamburg on the 24th of June
cruising along the Norwegian coast before returning to Hamburg
Hurtigruten has temporarily paused all expedition cruises until the start of the 2020 Antarctica season due to the increased
level of Covid-19 infections in Europe and the Covid-19 case on MS Roald Amundsen in the beginning of August
The Antarctica season for Q4 2020 and Q1 2021 is currently under review in light of the recent surges in infection levels of
Covid-19 in Europe and the operating environment in South America. The safety of our crew and guests will always be our
top priority
The liquidity situation of Hurtigruten is good, as of 30th of June Hurtigruten had a liquidity position of EUR 174 million of cash
and cash equivalents and another EUR 32 million in expected and committed Covid-19 government backed loans and grants
Pre-booking levels for 2021 are developing according to planned booking curves with demand coming from Q2 2021 and
onwards. There is no sign of increased level of cancellations after the MS Roald Amundsen incident
11Key operational and financial considerations under Covid-19
I ⚫ Hurtigruten has introduced enhanced health and safety procedures which has received great
Safe operations under a feedback from our guest
new environment
⚫ Expedition cruising can be offered under a new operating environment without jeopardizing the
experience
II Execution of a funding ⚫ Raised additional EUR 105 million in funding in June 2020 that increased the financial flexibility
plan to ensure sufficient ⚫ Deferral of EUR 160 million of non critical capex for the period Q2 2020 to Q4 2021
liquidity through the
Covid-19 crisis ⚫ Temporary suspension of leverage ratio covenants in the RCF to the end of 2021
⚫ The demand for the Expedition cruise product is still present with bookings for 2021 developing
III according to the revised plan
Demand for expedition ⚫ Good interest for sailings starting in Q2 2021 and onwards with no visible effect from the MS
cruises are still there Roald Amundsen incident
⚫ Normalisation of global travel patterns expected in 2H of 2021 with Hurtigruten positioned for
earlier ramp up with key source markets close by like Germany, UK and the Nordics
12Strong customer satisfaction after start-up of operations shows the appreciation from
our guests with regards to the product
Monthly NPS Score1
Net promoter score (NPS)
Suspended operations
85 82
81
80
76 76 76 75
75 72
70 69
70
65 62
60 59
55
50
47
45
40
35
30
25
20
15
10
5
0
Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20
1) Net Promoter Score calculated by scores from customers travelling on an expedition cruise or on coastal voyage (costal voyage = 6 or more cruise nights). NPS score includes the MS Roald Amundsen sailings in July 2020 13
Source: Hurtigruten, FacebookStrong customer satisfaction supports robust booking development for 2021, with current
2021 bookings 7% higher compared to same time last year for the period Q2-Q4 2021
Booking status as of 4th of September 2020 (EURm)1 Comments
78
80 67 2020 ⚫ The booking level for Q2-Q4 is 7 % higher compared to same time last year
58 57 60
60 53 2021
Bookings for ⚫ 80% of the bookings for 2021 is cash bookings and 20% is voucher bookings
40 29 26
next year ⚫ Approx. EUR 35 million in vouchers which represents EUR 60 million in gross
20
booking value not yet rebooked to a 2021 sailing
0
Q1 Q2 Q3 Q4
15 ⚫ Inflow over the last 30 days is lower compared to same period last year driven
11 2020
10 postponement of early bird campaign in Germany to October
10 8 2021
Booking inflow 4
6
7
⚫ The recent increase in infections rates across Europe and in Norway is affecting
5 3
last thirty days new bookings for 2021
0
-2
⚫ No increase in cancellations compared to same period last year for the period Q2-
-5 Q4 2021
Q1 Q2 Q3 Q4
15 2021
11
2021 and 2022 10
10 2022
⚫ We are seeing an increased booking inflow for 2022 driven by interest especially in
Q1 2022
booking and 5 4
2 ⚫ We are launching the rest of the 2022 season this fall
inflow
0
Bookings Last 30 days
Gross yield trending higher on all ships for 2021, particularly with expedition ships
Amundsen class vessels Coastal Norway Expediton (Millenium class)
’20 / ’21 +7% +24%
EUR 561 / 603 EUR 289 / 341 +18% EUR 328 / 407
EUR per PCN
Vesterålen, Nordlys, Nordkapp, Richard With, 14
Ships Roald Amundsen, Fridtjof Nansen Midnatsol, Finnmarken, Trollfjord
Polarlys, Kong Harald, Nord Norge2
Key Financials
151H and Q2 numbers significantly impacted by Covid-19
Reported Total Revenue (EURt) Normalised Adjusted EBITDA1 (EURt) Reported EBITDA (EURt)
Margin 28 % -13 % 22 % 9% 25 % -35 % 19 % 5%
(%)
54,194
64,418
283,511
38,497
44,701
171,526
154,082
8,764
15,255
31,352 -11,048
-3,975
Q2 2019 Q2 2020 First half First half Q2 2019 Q2 2020 First half First half Q2 2019 Q2 2020 First half First half
2019 2020 2019 2020 2019 2020
• Revenue in the first half of 2020 down 39.5% to EUR 171.5 million. Total reported EBITDA in first half of 2020 decreased with EUR 45.4 million (83.8%) to EUR 8,8
million compared to same period last year.
• Main revenue items in Q2 2020 are revenue generated from sailings in June 2020 and contractual revenues from the Norwegian state agreement.
• Group revenue decrease by EUR 79.7% to EUR 31.3 million in the second quarter of 2020 compared to Q2 2019
16
1) Normalized adjusted EBITDA is calculated as Reported EBITDA excluding other gains and losses adjusted for cost and revenue items which is deemed extraordinary, exceptional, unusual or non-recurring. Due to the Covid-19 pandemic we have decided not to do any normalizations for Q2 2020.Solid cash position at the end of June 2020
EURt 2018 2019 First half 2020 Q2 2020 Commentary
⚫ Negative cash flow in Q2 of EUR 30.5m mainly driven by working capital
105 196 141 425 9 559 (30 597) items
Operating Cash flow
(16 779) 13 147 (15 966) (31 408)
Of which change in working capital1 ⚫ Levels of prepayments for future travel was kept stable due to a
combination of inflow of new cash bookings and relative low level of refund
claims
(136 775) (396 575) (92 593) (20 102)
Cash flow from investments
⚫ Change in working capital mainly driven by chew up of payables and
(34 305) (405 380) (86 632) (12 616) accrued expenses as operations was temporary seized in March
Of which CAPEX
⚫ Decrease in investment level in current half year is due to the construction
of both MS Roald Amundsen MS Fridtjof Nansen in 2019, with no similar
38 122 251 933 214 607 92 117
Cash flow from Financing event in second quarter 2020.
98 651 290 091 250 257 102 593
Of which change in debt ⚫ In June Hurtigruten raised an additional TLB of EUR 105 million to improve
(59 662) (32 487) (33 331) (9 753) the liquidity position of the company.
Of which paid interest and transaction costs
Note: All numbers presented are based on Hurtigruten Group AS on a consolidated basis.
1) Change in working capital calculated as Inventories + Receivables – Pre bookings and Payables. 17Net cash burn rate of EUR 10 million per month in Q2 2020 before working capital
Net expenses of ~EUR 9.9 million per month following reduction measures Comments
EURm 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
⚫ Reduction in Cruise operating expenses in
the range of 58% compared to baseline
⚫ ~58% reduction in Cruise operating expenses compared to normal operations operations.
11.9 ⚫ Marketing reduced to a minimum, only critical personnel remains, consultants
OPEX
stopped
⚫ Fuel costs reduced to minimum during harbor, R&M postponed, port costs reduced
⚫ Revenue from the Public Service contract
⚫ Total revenues of EUR 10.5 million per month, Including EUR 6.4 million in
Revenues 10.5 contractual revenues. Contractual revenues to be received also for warm-stacked
with the Norwegian Government,sailings
vessels in 2020 that was resumed in June and the Covid-
Q2 Monthly average cash expenses
19 grant from the Norwegian Government
BB charter ⚫ ~EUR 0.9 million amortization
1,4
⚫ ~EUR 0.5 million interest
6.6 ⚫ EUR 10 million monthly cash burn
Net opex 2.8 ⚫ Monthly average cash expense in Q2 2020 including BB charters in Q2 2020, pre
working capital changes
⚫ Interest on TLB, Explorer II bond and RCF paid semi annually, August and
Debt service 2.9 February. Svalbard/Kirkenes facilities paid quarterly
2.9
⚫ ~EUR 0.1 million amortization ~EUR 2.8 million interest ⚫ Working capital outflow driven by
9.0 payables, accrued expenses and refund
payments as operations was temporary
Capex 4.2 ⚫ Among others docking of MS Fram and MS Roald Amundsen
suspended in March
Net
expenses
9.9 ⚫ Monthly average expense in Q2 2020 ⚫ Approx. EUR 20 million in refund claims
paid YTD
Change in 8.5 8.5⚫ Change in working capital per month in Q2 2020
working capital
18Net debt as of Q2 2020
NIBD (EURm)1 Change in net interest bearing debt – YE 2019 to end Q2-20
EURm
1.057
Debt elements Cash elements
84
93
10 215
940
40 1 057
244 5
645 940
Increase in total cash,
(EURm) incl. restricted:
Change in RCF 44 EUR127m
643 New TLC 95
New Explorer II bond 295
95 ECA loan repaid -245
RW & NL lease 56
TLB; change in balance of amort. fees 2
0
295 Change in Svalbard loans -1
245 MS Spitsbergen Sale Leaseback -2
0
0 43 Kirkenes DNB Transje A & B 0
45 2 56 2 Change in interest bearing debt 244
11 10
47 Of which FX effects 1
174
31-Dec-19 30-Jun-20
RCF RW / N Lease
Term Loan B Svalbard loans NIBD YE 2019 Change in Net CF from Net CF from Net CF from FX effects on NIBD per
interest Operating Investment Financing cash elements end Q2-20
Term Loan C Kirkenes loans
bearing debt activities activities activities
Explorer II ECA Cash
Explorer II Bond
Spitsbergen Lease
Note: All numbers presented are book value and based on Hurtigruten Group AS on a consolidated basis. 19
1) Excluding IFRS 16 debt of EUR 17m at year-end 2019 and EUR 14m at end of Q2 2020.3
Summary and Outlook
20Summary
⚫ Hurtigruten’s differentiated destinations in regions with low level of infections and small ship focus position us
I well as the cruise industry emerges from Covid-19
Hurtigruten will have a good
position coming out of the ⚫ Key source markets in Northern Europe are close to the key destinations we are sailing to
crisis
⚫ Hurtigruten has operated 6 ships over the last 3 months in the Coastal segment with the ability to test post
Covid-19 operating procedures
⚫ Swift execution of firm wide cost cutting program and postponement of non critical capex
II ⚫ Raised additional EUR 105m in funding in June 2020 and have as of 30th of July a liquidity position of EUR
Hurtigruten has a solid 195 million
liquidity position
⚫ Lower level of refund claims in % of prepayments of cancelled sailings compared to industry average
⚫ Average monthly cash burn (before customer refunds and working capital) in current environment of EUR in
the range of EUR 12-15 before working capital items
III ⚫ Hurtigruten is relatively well-positioned in the cruise segment, with a majority of the customer base located in
Northern Europe – in close proximity to the routes- as restrictions are gradually lifted all over Europe,
Pent up demand for travel domestic travel within the European Union and Norway is expected to surge
experiences post Covid-19
⚫ 2021 Pre-booking levels for 2021 are developing according to planned booking curves with demand coming
from Q2 2021 and onwards
21Appendix
22Suspended operations due to COVID-19 affects 1H and Q2 numbers
Commentary
CAGR: 7%
608 815
Reported Total 527 094
566 174 ⚫ Suspended operations for both coastal and Expedition segment due to
496 829
Revenue Covid-19 affects numbers for Q2 2020 significantly.
(EURt)
⚫ Hurtigruten temporarily suspended most of the operations from 18th
March. 2 out of 16 ships was kept in operation on a shortened route in
Northern Norway serving local communities with freight and local
transport services.
2017 2018 2019 Q2 2020 LTM
⚫ There was underlying growth in January and February driven both by
CAGR: 17%
the inclusion of MS Roald Amundsen to the expedition fleet, giving an
144 989 increased capacity, as well as a significant growth in yield in both the
Normalised Adj. 128 171 Expedition and Coastal segment before the Covid-19 pandemic broke
EBITDA 106 790
95 826 out in March.
(EURt)1
2017 2018 2019 Q2 2020 LTM
CAGR: 18%
123 168 123 169
Reported
EBITDA 87 877
77 739
(EURt)
2017 2018 2019 Q2 2020 LTM
1) Normalized adjusted EBITDA is calculated as Reported EBITDA excluding other gains and losses adjusted for cost and revenue items which is deemed extraordinary, exceptional, unusual or non-recurring. Due to the Covid-19 pandemic we have decided not to do any normalizations for Q2 2020.
231H and Q2 2020 segment overview – Norwegian Coast
Net Ticket Yield1 (EUR) Occupancy Rate4 (%)
-21%
221 87% 85%
191 191
175
32%
5%
Q2 2019 Q2 2020 First half 2019 First half 2020 Q2 2019 Q2 2020 First half 2019 First half 2020
Net Ticket Revenue (EURt) Normalised adjusted EBITDA 2,3 (EURt)
Margin 51 % 513 % 47 % 60 %
129,709 (%)
87,285
78,178 55,984
-95%
47,388 38,489
11,553
3,719
Q2 2019 Q2 2020 First half 2019 First half 2020 Q2 2019 Q2 2020 First half 2019 First half 2020
• Stable Net Ticket Yield when comparing first half of 2020 to the same period last year. Net Ticket Yield decreased by 21% in Q2 2020 compared to Q2 2019.
• Decreased occupancy in first half of 2020 driven by Covid-19, with a small-scale start-up of operations on 16th of June. Only 2 ships sailing between Bodø and
Kirkenes until 16th of June, mainly for local transportation and freight to communities in the north of Norway. Remaining ships have been warm stacked.
• Significant drop in Net Ticket revenue and normalized adjusted EBITDA due to suspension of operations.
1) Net Ticket Yield is defined as Net ticket revenues per PCN. 24
2) SG&A not allocated on segment level.
3) Normalized adjusted EBITDA is calculated as Reported EBITDA excluding other gains and losses adjusted for cost and revenue items which is deemed extraordinary, exceptional, unusual or non-recurring. Due to the Covid-19 pandemic we have decided not to do any normalizations for Q2 2020.
4) Occupancy rate is calculated based on APCN (available capacity) including any laid-up period. In 2020, due to the Covid-19 pandemic, the majority of the ships were in warm-stack since the middle of March. Adjusting APCN for the laid-up period caused by the Covid-19 pandemic, including only the available capacity on the
actual sailings, the occupancy rate was 26.9% for Q2 2020 and 61.5% for 1H 2020.1H and Q2 2020 segment overview – Expedition
Net Ticket Yield1 (EUR) Occupancy Rate4 (%)
73%
390 447
360
52%
30%
0%
-934
Q2 2019 Q2 2020 First half 2019 First half 2020
Q2 2019 Q2 2020 First half 2019 First half 2020
Net Ticket Revenue (EURt) Normalised adjusted EBITDA 2,3 (EURt)
Margin
26 % 35596 % 33 % 15 %
35,411 (%)
15,840
28,208
7,665
5,996
10,475
-712 -10,812
Q2 2019 Q2 2020 First half 2019 First half 2020 Q2 2019 Q2 2020 First half 2019 First half 2020
• Operations in the expedition segment was reduced to a minimum in Q2 2020 as all expedition sailings were suspended, but operations were partly resumed
again in end of June with MS Fridtjof Nansen sailing from Hamburg to the Norwegian Coast.
• For the first half of 2020, revenues were up 23.2% from EUR 40.9 million to EUR 50.4 million despite the Covid-19 pandemic. This is due to the inclusion of
MS Roald Amundsen in second half of 2019. Net ticket revenue for the first half year was up 25.5% from last year to EUR 35.4 million.
1) Net Ticket Yield is defined as Net ticket revenues per PCN. 25
2) SG&A not allocated on segment level.
3) Normalized adjusted EBITDA is calculated as Reported EBITDA excluding other gains and losses adjusted for cost and revenue items which is deemed extraordinary, exceptional, unusual or non-recurring. Due to the Covid-19 pandemic we have decided not to do any normalizations for Q2 2020.
4) Occupancy rate is calculated based on APCN (available capacity) including any laid-up period. In 2020, due to the Covid-19 pandemic, the majority of the ships were in warm-stack since the middle of March. Adjusting APCN for the laid-up period caused by the Covid-19 pandemic, including only the available capacity on the
actual sailings, the occupancy rate was 26.9% for Q2 2020 and 61.5% for 1H 2020.Historical key financials
EURt
P&L items 2017 2018 2019 Q2 2020 LTM
Revenue 527 094 566 174 608 815 496 829
Growth 11,9 % 7,4 % 7,5 % -18,4 %
Contribution1 187 415 204 427 234 987 185 402
Contribution % 35,6 % 36,1 % 38,6 % 37,3 %
EBITDA 87 877 123 168 123 169 77 739
EBITDA margin 16,7 % 21,8 % 20,2 % 15,6 %
2
Normalised adj. EBITDA 106 790 128 171 144 989 95 826
Normalised adj. EBITDA margin 20 % 23 % 0% 0%
EBIT 36 416 72 538 67 582 18 972
EBIT margin 6,9 % 12,8 % 11,1 % 3,8 %
Net interest and other financial costs (53 644) (52 929) (28 239) (46 401)
Net currency gains / losses (37 003) (13 511) 9 793 (18 706)
Net income (56 935) 46 845 (17 821) (45 874)
Net income margin -10,8 % 8,3 % -2,9 % -9,2 %
BS items 31.12.2017 31.12.2018 31.12.2019 30.06.2020
Cash3 44 633 56 449 47 028 173 733
Total current assets 101 674 118 143 112 878 232 715
Total assets 838 069 1 011 173 1 393 674 1 484 995
Total equity 53 511 68 981 62 739 (17 965)
Equity ratio 6,4 % 6,8 % 4,5 % -1,2 %
4
Total current liabilities 709 488 188 591 333 475 231 458
NIBD5 543 110 785 948 939 715 1 056 711
CF items 2017 2018 2019 Q2 2020
Change in NWC (3 793) (16 779) 13 147 (31 408)
Operating cash flow 95 477 105 196 (396 575) 30 597
Capex (37 368) (34 305) (405 380) (12 616)
Note: All numbers presented are based on Hurtigruten Group AS on a consolidated basis. All numbers are reported numbers unless stated.
1) Vessel contribution is defined as EBITDA contribution before SG&A, specifically calculated as revenue – total direct costs – total cruise operating expenses, 2) Refer to detailed breakdown of the adjustment on page [57], 3) Total cash including restricted cash, 4) The bond in the amount of EUR 455m, and the multicurrency
revolving credit Facility in the amount of NOK 779m were refinanced in February 2018, and as such were classified as current liabilities at 31 December 2017, 5) Book value of debt excluding IFRS 16 debt. IFRS 16 debt was EUR 17m at year-end 2019 and EUR 14m at end of Q2 2020, 6) Calculated as (Reported EBITDA –
Maintenance Capex) / Reported EBITDA. 26Norwegian Coast segment – Key financials
EURm 2017 2018 2019 LTM Q2 2020
PCNs - 000 1 249 1 353 1 314 884
APCNs - 000 1 646 1 614 1 619 1 594
Occupancy - % 75,9 % 83,8 % 81,2 % 55,5 %
Total Revenues reported 444 439 444 324
Of which: Contractual Revenue 72 73 73 76
Direct Costs 102 109 105 66
Cruise Operating Costs 159 166 164 132
of which: Fuel costs 42 50 50 38
Reported Vessel Contribution1 150 164 175 126
Vessel contribution margin 33,7 % 37,3 % 39,4 % 39,0 %
Norm. Vessel contribution2 152 164 177 176
• All time high revenue and contribution from Norwegian Coast segment in 2019, driven by strong occupancy, stable PCN and positive
yield development
• Revenue growth of 1.1% from 2018 to 2019
• - Q2 LTM show a negative trend due to significant drop in revenue in Q2 2020 driven by Covid-19.
• Increase in contractual revenue by 4 % from 2019 to LTM Q2 2020.
• Vessel contribution margin remains stable due to cost savings. 13 ships have been warm-stacket until June 16th due to Covid-19.
Actual warm stack cost excluding passenger costs for Q2 was approx. EUR 2.32 million per month for the 9 ships in the Coastal fleet.
1) Vessel contribution is defined as EBITDA contribution before SG&A, specifically calculated as revenue – total direct costs – total cruise operating expenses.
2) Due to the Covid-19 pandemic we have decided not to do any normalizations for Q2 2020.
27Expedition segment – Key financials
EURm 2017 2018 2019 LTM Q2 2020
PCNs - 000 155 167 222 223
APCNs - 000 228 231 288 445
Occupancy - % 68,0 % 72,1 % 77,0 % 50,0 %
Total Revenues reported 86 97 135 145
Direct Costs 26 34 43 45
Cruise Operating Costs 32 34 45 58
of which: Fuel costs 7 8 11 13
Reported Vessel Contribution1 27 30 48 42
Vessel contribution margin 31,8 % 30,4 % 35,3 % 28,9 %
Norm. Vessel contribution2 27 35 56 48
⚫ Strong performance in the Expedition segment with revenue growth of 7.4 % from 2019 to Q2 2020 LTM, driven by both PCN and
yield growth, despite negative Covid-19 effects.
⚫ Decreased occupancy due to travel restrictions.
⚫ Prior to Q2 2020 there was a strong utilisation on the Antarctica sailings and in the segment in general, which is expected to
continue when operations are starting up.
⚫ The performance of the Expedition segment in 2020 will depend on the development of the pandemic and when we will be able to
resume operations
1) Vessel contribution is defined as EBITDA contribution before SG&A, specifically calculated as revenue – total direct costs – total cruise operating expenses.
2) Due to the Covid-19 pandemic we have decided not to do any normalizations for Q2 2020.
28Definitions
⚫ Passenger cruise nights (“PCNs”), measurement of guest volume, representing the number of guests onboard the ships and the length of their stay.
⚫ Available passenger cruise nights (“APCNs”), which is a measurement of capacity and represents the aggregate number of available berths on each of the ships (assuming double occupancy per cabin),
multiplied by the number of operating days for sale for the relevant ship for the period.
⚫ Occupancy rate, PCNs for the relevant period as a percentage of APCNs for the period.
⚫ Gross revenues, ticket revenues, revenues from flights, hotels, transportation, food, beverage, shop and excursions as well as other passenger revenues, including car transportation, travel insurance and
retained deposits in cases of cancellations.
⚫ Net revenues, Gross ticket revenues less commissions and costs of goods for flights, hotels, transportation, food, beverage, shop and excursions as well as other passenger services, including travel insurance.
⚫ Gross revenues per PCN, Gross ticket revenues divided by PCNs.
⚫ Net revenues per PCN, which represents Net ticket revenues divided by PCNs.
2930
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