Table of contents

SAS AB Result Analyst Presentation Third Quarter 2002, November 13 Stockholm, London

1. 2. 3. 4. 5. 6. 7. 8. 9.

Summary of 3rd Quarter 2002 Result improvement measures Business area – Scandinavian Airlines Business area –Subsidiary Airlines & Affilliates Business area – Airline related Business area – Rezidor SAS Hospitality Financials Outlook 2002 Appendices

2

3rd Quarter 2002 – according to set out plan, yields and revenues under pressure 1st Quarter – weak - according to plan 2nd Quarter – according to plan – passenger load factors and yields better than expected 3rd Quarter – according to plan – yields & revenues under pressure Pressure on revenues expected for 4th Quarter Expected economic recovery delayed Restructuring charge of MSEK 600 3

11/12/2002

11/12/2002

Important events of note 3rd Quarter Rezidor SAS investing in multi-brand concept Regent, Country Inns, Park Inn

Scandinavian Airlines launches additional low price internet booking alternatives to most European cities SAS Flight Support to acquire ASG –name change to European Aeronautical Group Scandinavian Airlines structural improvement measures – Verification process completed – Increased target to MSEK 6 400 (4 000) – Restructuring charge of MSEK 600 Q4

4

11/12/2002

Increased transparency through five Business Areas

($7 500 million)

5

11/12/2002

The SAS Group Investor Relations Tel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110 e-mail: [email protected] --- Homepage: www.scandinavian.net -- Results Jan -Sep 2002

Record cabin factors but pressure on yields in Scandinavian Airlines Total traffic increased by 32,2% vs. Q3 2001 – Group passenger load factors at record levels Scandinavian Airlines Braathens Spanair

+ 4,0 p.u. + 9,0 p.u. + 3,6 p.u.

72,2% 63,6% 68,5%

Yields mixed Scandinavian Airlines Spanair Braathens

Significant uplift in 2nd and 3rd Quarter compared with 1st Quarter 2002 Summary of income statement (MSEK) Actual Q1

Actual Q2

Actual Q3

JanJan-Sep 02

13 775 -13 191

17 868 -14 620

16 592 -14 462

48 235 -42 273

EBITDAR-marginal

4,2%

18,2%

12,8%

12,4%

Operating lease cost external EBITDA

-878

-1 050

-932

-2 860

-294

2 198

1 198

3 102

-328 -651 -133 -1 406 -40

-12 -715 -141 1 354 -291

3 -781 625 1 041 -405

-337 -2 147 351 989 -736

-1 446

1 039

640

233

-1 313

1 180

15

-118

Operating revenues Operating costs EBITDAR

584

Contr from affiliated Depreciation Gain on sales EBIT Net financial items EBT

-2% +26% +/- 0%

EBT bef gains

7

11/12/2002

8

   

JanJan-Sep 2002

JanJan-Sep 2001

48 235 989 233 -118

38 623 27 7 -202

Revenue EBIT EBT EBT excl. cap gains

 EBITDAR significantly stronger 3rd Quarter 2002 compared with 2001

EBITDAR MSEK million 3 500 3 000 2 500 2 000 1 500 1 000

0 -500

Q1

Q2 2001

11/12/2002

EBITDAR up 81% 9m EBITDAR margin up, but CFROI unchanged as capital increase

EBT bef gains MSEK million

MSEK 1180

1 000 500 142

15

0 -500

-421

-1 000 -1 500

Q4

10

SAS Group 2002 – EBT

77

Q3

EBITDAR 3rd quarter: – Positively affected by Braathens of 428 MSEK – Spanair of 541 MSEK – Widerøe 95 MSEK – Air Botnia 58 MSEK

2002

11/12/2002

1 500

2002 2002

2001

Change

 Revenue

48 235

38 623

25%

 EBITDAR

5 962

3 290

+81%

 EBITDAR margin

12%

7%

+5 p.u.

 CFROI

13%

13%

0 p.u.

-1313

Q1

Q2 2001 11

5 962

11/12/2002

500

9

2 130

SAS Group 2001/2002 EBITDAR – operating performance improved

Jan-Sep 2002 vs 2001 MSEK

3 248

Q3 2002 11/12/2002

12

11/12/2002

The SAS Group Investor Relations Tel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110 e-mail: [email protected] --- Homepage: www.scandinavian.net -- Results Jan -Sep 2002

Revenues driven by acquisitions EBITDAR up 81% in MSEK

+ 25%

in MSEK

48 235

+81%

38 623

5 962

3 290

2001

2002

2001

2002

EBITDAR

Total Revenues 13

11/12/2002

14

11/12/2002

Target to reduce unit costs in Scandinavian Airlines by 20% by 2004 Scandinavian Airlines 15

Lufthansa Euro Cents/ASK

Group improvement measures

Braathens 10

British Airways Air France

Spanair

Austrian Airlines

Iberia

KLM

Low Cost Segment 5 600

800

1 000

1 200

1 400

1 600

1 800

2 000

Average Stage Length (Kms)

15

11/12/2002

Structural improvement measures increased from 4 000 MSEK to 6 400 MSEK Distrubution of effects (net): 6 400 MSEK

7000 6000 5000

16

11/12/2002

The SAS Group’ improvement measures target increased to SEK 12,8 billion Short term measures = MSEK app. 6 400 (2002/03)

2003: 3 000 MSEK 2004: 5 500 MSEK 2005: 6 400 MSEK

Structural measures = MSEK app. 6 400 (2004/05)

Of which is revenue effect:

Target when fully implemented 2004/05 Reduce unit costs by 20% in Scandinavian Airlines Significantly improved cabin factors Enable Scandinavian Airlines to manage lower prices

4 000 MSEK

4000 3000 2000 1000 0 Structural improvements

Identified structural improvements

Spring 2002 identified structural measures

November 2002 Increased and identified structural measures 17

2003: 600 MSEK 2004: 1 300 MSEK 2005: 1 600 MSEK

11/12/2002

18

11/12/2002

The SAS Group Investor Relations Tel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110 e-mail: [email protected] --- Homepage: www.scandinavian.net -- Results Jan -Sep 2002

Structural measures 5 areas of focus

Why will we succeed this time?

Nytt koncept

Nytt koncept

ALF WAW

AMS

ZRH

AG H

TRD AMS

BRU

VNOVXO

ARN

DUS

DUB F CO

EW R

EVE

DUS

SVO SVG

KRN

NCE

M XP MM X

LLA

LIN

L HR

CGN DEL

EWR

P MI

FCO FRA

EVE

AMS

BRU

CDG CPH DUB DUS EWR FCO FRA GOT

STN

GVA

SFT

HAM

SDL

HEL

RNB

KID

ZRH WAWWRO VXO VST V NO VIE TRF TRD TLV

SAS direc t sal es mark-up

AAL

S VO

LED NCE

MXP MM X

LLA

LIN

LHR

BRU

SV G

BUD

STR

CD G

STN S FJ

CGN DEL

– Strong top management commitment – Everything on plan so far

DUB DUS

PO Z

EWR

PM I

FCO

PEK

FRA

O SL

SAS Price

KSD OER

AAR A GPALC AM S A RN BCN BGO B HX BKK B LQ

S EA PR G

35 000 33 000

KRN

ORD

4/ 7 %

37 000

KLR

OSD

Agent mark-up possibili ty

GD N G OT GVA HAJ HAM HEL IAD J KG KRKKGD LEDKSD

G DN

ORD O RB

G OT GVA

NRT NR K NC E MXP M UC MAN M AD LIN LHR

H AJ HAM H EL IAD JK G KG D KR K LEDK SD

A 01

A 02

FEB

JAN

JUL

SEP

DEC

NOV

AUG

OKT

JUN

MAJ

APR

MAR

FEB

JAN

SEP

JUL

DEC

NOV

OKT

JUN

AUG

MAJ

29 000

APR

31 000

MAR

1600

EWR

O SL

Today Tomorrow

L ED

DUB D US

POZ

AGH

TM P TLL

SVO

DUS FCO

CDG

ORD ORB NRT NRK NCE MXP M UC M AN M ADLIN LHR

DUB FRA

BRU BUD

STN

OSL

CPH GOT

KSD OER

AAR AG P ALC AM S ARN BCN B GO BHX BKK BLQ

SFJ

PEK

CDG

HAU

KID KLR

SEA PRG

MSEK

F1 0 2

1300

1200

1200

1100

• Short term 2003 • Structural 2004/05

Revenue enhancement

 Healthy internal competition – If you deliver you expand!

Distribution & Sales

19

11/12/2002

20

Scandinavian Airlines

Changes in production concept MSEK 1 600 in savings New production philosophy = Restructuring and improving aircraft rotations  Point to point rotation up from 40% to 95%  Improved aircraft utilization rates – ABH/ Block hour up from 7,5 to 9 9 hrs. – Legs/ a/c up  Improved capacity utilization – +5 p.u. on average  Aircraft turn around by 5-10 min  Utilize peak/ off peak for maintenance etc.  Aircraft/ crew overnights reduced to minimum  Pilot hours up from less than 500 hrs to 600hrs per annum

Reduced peaks in Copenhagen hub will affect productivity positively

Nytt koncept AES TRD

ALC

TOS

ALF

SVG

AMS

NCE

W AW VXO

ARN

ZRH

AGH

AMS

BRU

CDG

VNO

DUB

TXL

BGO BOO

CPH

UME

BDU

MAN LHR

DUS

TMP

BRU

KKN

CDG

HAU

CPH GOT

DUB FRA

- Blue line current movements

EW R

TLL

FCO

TKU

KRS

FRA

SVO

GOT

STN

GVA

SFT

HAM

SDL

HEL

DUS FCO

EVE

RNB

KI D

Departures

EW R OSL

KLR

OSD

KRN

ORD

WROZRH WAW VXO VST VNO VIE TRF TRD TLV

KSD OER

AAL

SVO SVG

LED NCE

AAR AGPALC AMS ARN BCN BGO BHX BKK BLQ

MXP MMX

LLA

LIN

LHR

- Grey area new schedule

BRU BUD

STR

CDG

STN

CGN

SFJ

DEL

SEA

DUB

PRG

DUS

POZ

EWR

PMI

ORD ORB NRT NRK NCE MXP MUC MAN MAD

Arrivals

FCO

PEK OSL

FRA GDN

LINLHR

GOT GVA HAJ HAM HEL IAD JKG KGD LEDKSDKRK

11/12/2002

A 01

Legs //ac ac/ ac/day Aircraft night stops

6,70 800

23

11/12/2002

A 02

DEC

JUL

SEP

OKT

AUG

NOV

FEB

JUN

JAN

APR

MAJ

DEC

NOV

29 000

MAR

+2,5% +60%

31 000

JUL

6,87 500

33 000

SEP

+13%

35 000

OKT

600

 37 000

JUN

Change _ +20%

AUG

ShortShort-term target 2003/04 600

Reduction Overhead Support & Administration –MSEK 1 200 in savings effect as from 2003

FEB

Scandinavian Airlines

Significant flight crew and a/c productivity improvements in pipeline 2002-2003 Cockpit crew utilization 490 (BLH/pilot/year) Cabin Crew utilization 530

11/12/2002

Total savings in Ground Services by MSEK 600

MX P

21

Current

 Increased transparency  New competitive arena externally

Ground & Technical Services

JAN

(ROSA)

New commercial strategies

APR

Management & Administration

MAJ

Production concept

MAR

1800 1600 1400 1200 1000 800 600 400 200 0

BOO BRU

KKN

HEL

RNB

ZRH

TXL

BGO

KRS

GVA HAM

SDL

AW

VNO UME

BDU

TKU

GOT

SFT

ORD

STR

VXOW

ARN

LHR

F RA

STN

OSL

AA L

M AN

F CO

T KU SVO

OSD

WROZRH WAW VXO VST VNO VIE TRF TRD TLV

AM S

MXP

EW R

T LL

BOO

CPH GOT

ALF

NCE

DUB

T XL T MP

BGO

BRU CDG

HAU

ALC

TOS SVG

CDGCPH

UM E

BDU

KKN

F RA

 Most ambitious improvement measures ever introduced in pipeline

AES

ALC

KRS

SAS Price

AES

LHR

SAS Price

T RD T OS SVG NCE MXP M AN

F1 02

Personnel

reductions well according to plan Reduction of 900 full time employees by end 2005

24

Achieved: 32% reduction in administrative costs and personnel in group functions, business units and Scandinavian Airlines  Reduced ambition levels  Productivity improvements

11/12/2002

The SAS Group Investor Relations Tel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110 e-mail: [email protected] --- Homepage: www.scandinavian.net -- Results Jan -Sep 2002

Short term measures redundancies

Structural measures redundancies

200 700

3000

Completed/agreed

2500 1500

3 500

In process

2700

2000

1500

1500 500

200 200

Estimated redundancies fall 2001

Redundanci es Rest of Group

Halted Planned Expansion

Effect during 2002

Employees In other activities

Affect Transferred achieved to structural through other act

25

0

TOTAL

Adm.

11/12/2002

Total group short term measures (Gross 2003 full year effect)

Network reductions Revenue enhancements1) Cost reductions

200 Producing units

20032004 11/12/2002

Status improvement programs

MSEK 6 400

Result effects

Pilots

26

Subsidiaries & affiliates MSEK 1 300 Scandinavian Airlines MSEK 5 100

Distribution: 1st Quarter 200-300 2nd Quarter 300-400 3rd Quarter 400-500 4th Quarter 600-700

300

500

Will be effectuated In 2003

Status Group short term Result Improvement measures 2002/2003

Whereas

700

1000

200

MSEK 500 MSEK 2 200 MSEK 2 400

Gross full year effect

JanJan-Sep 2002

500 2 200 2 400 1 300 Approx. 6 400

375 *) 1 000 700 2 075

Short term measures Reductions in traffic system Revenue enhancement Cost reductions Other business areas than SK Total

*) = Revenue enhancements comprising a supplementary charge of USD 4/passenger/flight/and a general price increase of 5% are neutralized to a considerable extent by a negative passenger mix and higher insurance costs.

2003

MSEK 2400

Structural measures

2002

MSEK 1700

Total

TOTAL ALL MEASURES

Approx. 6 400

0

Approx. 12 800

2 075

1) Price increase of 5% nominal and

introduction of surcharge of 4 USD/ pax/leg Offset by increased insurance cost, security costs and negative mix

27

11/12/2002

28

11/12/2002

EBITDAR per business area Business area

January - September 2002 2001 +2 652 +2 230 +2 694 +351 +370 +506 +165 +203 +81 0 +5 962 +3 290

Scandinavian Airlines Subsidiary & aff. Airlines Airline Related Businesses Rezidor SAS Hospitality* Group eliminations* EBITDAR * = Including leasing cost

29

11/12/2002

30

11/12/2002

The SAS Group Investor Relations Tel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110 e-mail: [email protected] --- Homepage: www.scandinavian.net -- Results Jan -Sep 2002

Earnings before taxes – EBT Bef cap. gains

January - September 2002 2001 -749 -552 +374 +86 +77 +183 +98 +81 +82 0 -118 -202

11/12/2002

32

Scandinavian Airlines

2002 vs 2001

8 052 +758

8 383 +480

25 399 2 652

25 801 2 230

Net financials

-316

43

-613

47

EBT EBT bef gains

192 -431

-294 -501

-377 -749

-350 -552

Scandinavian Airlines

1,0% 4,0 p.u. 2,1%

Unit costs

down

0,3%

11/12/2002

Scandinavian Airlines

SK (Geograpical Europe)

65

AEA (Geograpical Europe)

60

Average gap Scandinavian Airlines vs AEA 5 p.u. in 2001

55 50

Month 2001

37

34

31

22

19

16

45 13

96 98 102 106 128 103

4

99 101 101 104 130 102

11/12/2002

70

7

Intercontinental Europe Intrascandinavian Denmark/Greenland Norway Sweden

2,6%

75

10

98

1

98

Pass load factor (%)

Scandinavian Airline

up

80

n Ap r Ju l O ct

Adjusted yield Jan-Sep

down 0,6% Up 2,8 p.u. down 2,3%

Scandinavian Airlines passenger load factors close to AEA average

Ja

Adjusted yield Q3

35

down up down

34

3rd Quarter 2002 vs 2001 Route Sector

Traffic growth (RPK) Cabin Factor Yields

11/12/2002

Passenger Yield

JanJan-Sep

JulJul-Sep

JulyJuly-September January – September 2002 2001 2002 2001 2002

33

Scandinavian Airlines

Scandinavian Aielines key airline profitability drivers

Turnaround in Scandinavian Airlines underway, but challenges lay ahead Passenger revenues EBITDAR

11/12/2002

28

31

Scandinavian Airlines

25

Scandinavian Airlines Subsidiary & aff. Airlines Airline Related Businesses Rezidor SAS Hospitality Group eliminations EBT bef. gains

Source: AEA

Week 2002

36

11/12/2002

The SAS Group Investor Relations Tel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110 e-mail: [email protected] --- Homepage: www.scandinavian.net -- Results Jan -Sep 2002

Month

Source: AEA, SAS

 Cabin factor improved significantly in Q2  Seasonal effect in Jan, Feb  Week 01-week 39: – AEA traffic down 3,8% – SAS traffic up 0,5%

RPK

15 10 5 0 -5 -10 -15 39

33

30

SAS

Week

36

21

24

27

15

18

9

12

6

3

52

49

46

37

43

40

-20

AEA

Cabin factor (%) Europe

11/12/2002

39

30

21

33 36

Ju ly Au g Se ust pt em be r

ay

Ju ne

European routes Continued fall in Business Class – the challenge of Scandinavian Airlines Scandinavian Airlines

20% 10% 0% -10% -20% -30% 02-sep

02-jul

May02

March

January

November

September

July

May

Marsh

-40%

January

75% 70% 65% 60% 55% 50% 45% 40%

– AEA traffic down 3,1% – SAS traffic up 20,6%

Month 38

Scandinavian Airlines

 Scandinavian Airlines ranked high in customer surveys  New capacity incremental growth in RPK

Stable cabin factors  Week 01-week 39:

11/12/2002

European routes – strong load factors, but adverse mix 20

AEA

95% 90% 85% 80% 75% 70%

Source: AEA, SAS 37

SAS

Cabin factor (%) Asia

M

Au gu st Se pt em be r

e

Ju ly

Ju n

Ap r il

N ov em be r D ec em be r Ja nu ar y Fe br ua ry M ar ch

95% 90% 85% 80% 75% 70% 65% 60%

30 25

18

Week

 Week 01-week 39: – European airlines (AEA) traffic down 11,7% – SAS traffic up 14,5%

Cabin factor (%) North Atlantic

24 27

AEA

15

39

27

31

SAS

Ap ri l

Week

35

19

23

7

11

15

3

47

43

51

39

35

-100

9 12

-50

RPK

10 0 -10 -20 -30

3

0

6

50

52

100

Strong performance on Asian routes 50 40 30 20

46 49

 Airbus A340 introduced on New York and Chicago from Copenhagen – Strong load factors during summer

RPK

N ov em be D r ec em be Ja r nu ar y Fe br ua ry M ar ch

150

Scandinavian Airlines

35

200

Scandinavian Airlines

40 43

Recovery on North Atlantic traffic

Still negative mix compared with very weak October 01 Slowdown accelerated after September11 Total traffic Q3 –6,7%

Source: AEA, SAS

Au g Se ust pt em be r

Ju ly

M ay

Ju ne

pr il A

N

ov em be D r ec em be Ja r nu ar y Fe br ua ry M ar ch

Business Class (RPK vs Last year) Europe

Month 39

11/12/2002

40

Scandinavian Airlines

Yield development in Europe 2002

Contingency plan in case of Iraq war

 High cyclical pattern  Pressure on yield  Easy comparables Sep 02 10% 5% Europe

0% 2 per. Mov. Avg. (Europe)

-5%

11/12/2002

 Implementation of plan as soon as conflicts start or when an escalation affect demand significantly  Base case 10-15% capacity reduction  Plan can be escalated in additional steps if market conditions weakens further  Short lead times for reinstalling of capacity ASK 0,0%

Case1

Case 2

Case 3

-5,0% -10,0%

-10%

-15,0% -20,0%

-15%

-25,0%

Jan

Feb

Mar

Apr

May

Jun

41

jul

Aug

Sep

11/12/2002

-30,0%

42

11/12/2002

The SAS Group Investor Relations Tel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110 e-mail: [email protected] --- Homepage: www.scandinavian.net -- Results Jan -Sep 2002

Significant reduction in capacity to continue in 2003 for Scandinavian Airlines

New competitors has entered the marketplace Small low cost carrier on Norwegian domestic New player in Sweden – Swedish domestic from Oct02 The Group takes threat seriously Key competitive advantages Many frequencies, higher service levels, corporate accounts and strong network Main strategy for low cost competition

Expected 2002 ASK Domestic incl intrascan Europe

-9%/9%/-13%

+5% +1%

Intercontinental

+11%/+11%/-8%

+13% +7%

Total

-4% / -10%

+1% -10%

44

November 01

Number of aircraft

153

199

46

11/12/2002

Scandinavian Airlines

Yields under pressure 3rd Quarter

Yields down 2,2% in 3rd Quarter 2002

2% 1%

– Class mix negative – Campaigns – More RPK’s of intercontinental traffic with lower yield

0%

+1.4% - 0.6% - 2.3%

45

Summer 03

2001-3rd Quarter 2002 Total system - currency adjusted

Revenues 25 399 MSEK (-1,6%)

-1% -2% -3% -4%

Price Class mix Other mix

Single trips

-17% -18%

11/12/2002

Passenger revenues mainly affected by yield and currency Jan-Sep 2002

currency volumes yields

ASK

-13%/ -9%

• Phase out of 8 DC9’s • Leased out 4 Boeing 737-800 and 3 MD 80's • 13 aircraft are fully depreciated Fokker 50 and Fokker 28's. • Remaining 18 aircraft (3 Boeing 767) will be sold or leased out

Scandinavian Airlines

Whereas

Plan 2003

Single trips

Surplus of aircraft summer 2003

Reduce costs Price differentiation –internet sales Retain competitive advantages Use of other group companies with lower costs 43

Reduction in capacity since 2001 -4% in 2002 vs 2001 +1% in 2003 vs 2002

+6,1% -3,8% -1,6%

-5% -6%

3rd Quarter 2001

4th Quarter 2001

1st Quarter 2002

2nd Quarter 2002

11/12/2002

3rd Quarter 2002

46

Trend with increasing unit cost broken in 2nd and 3rd Quarter as improvement measures start to give effect

11/12/2002

Scandinavian Airlines

Index last year (currency adjusted)

After a period of increases units costs are down in spite of weaker volumes (ASK)

10% 8% 6% 4% 2% 0% -2% -4%

1st 2nd Quarter Quarter 2001 2001

3rd Q 2001

4th Q 2001

1st Q 2002

2nd Q 2002

3rd Q 2002

47

11/12/2002

Scandinavian Airlines

Unit Cost continued down in 3rd Quarter Index last year (currency adjusted) 9,0% 8,0% 7,0% 6,0% 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% -1,0%

In spite of capacity reductions Unit Cost down 0,3% 3rd Quarter 2002 Unit Cost up 2,3% Jan-Sep 2002

1st Quarter

2nd Quarter 2002

3rd Quarter

48

11/12/2002

The SAS Group Investor Relations Tel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110 e-mail: [email protected] --- Homepage: www.scandinavian.net -- Results Jan -Sep 2002

Scandinavian Airlines

Scandinavian Airlines

ECA –European cooperation agreement continued negative effects

All government insurance guarantees seized August 1, 2002 Government guarantees in place until June 30nd 2002 Danish Guarantee extended until July 31 As from August 1 all SAS aircraft insured in the commercial insurance market

Tri-party Joint Venture agreement with BMI, Lufthansa and SAS signed November 9, 1999 In effect from January 1, 2000 Main scope: To integrate the parties scheduled pass. transport to/ from London/ Manchester Negative result effect 2001: MSEK 335 Effect Q1 2002 - MSEK 113 Effect Q2 2002 -MSEK 104 Effect Q3 2002 – MSEK 86

– Costs neutral compared with guarantees

Total insurance costs 8-10 times higher than prior to Sep 11 49

11/12/2002

50

Current outlook 2002 lowered by MSEK 200 vs 2nd Quarter Scandinavian Airlines

Brent Crude vs. Jet Fuel January 1998 - October 2002

60

450 400

Brent 1st Nearby Close

50

350 300 250 30 200 20

150

US Dollar per Metric Ton

Jet CIF Cargoes NWE 40

US Dollar per Barrel

11/12/2002

 Average rates:  2000  2001  Q1 2002  Q2 2002  Q3 2002

270 USD/MT 255 USD/MT 189 USD/MT 224 USD/MT 233 USD/MT

100 10

Current hedging ratio Next 12 months Hedging until year end

50

11/12/2002

SAS Price SAS Price

• • • •

53

11/12/2002

15% 10% 5% 3-2 00 2

1-2 00 2

Q

Q

01 -ja n

ar 01 -m aj 01 -n ov

01 -m

0

0% ju l-0 0 se p-0 0 no v-0 0

•

20%

0

• SAS direct sales mark-up

SAS Price

SAS Price SAS Price

Agent mark-up possibility

SAS Price

4/7 4,7%%

Tomorrow

Scandinavian Airlines

25%

aj0

Today

Estimated effect of 1 300 MSEK of which revenue enhancement 800 MSEK Net price concept to be introduced 1 January 2003 Prices lowered with same amount as commissions Agent will set their own price to the customer Markup can vary from channel to channel Introduction of service fees in SAS’ direct channels Introduction of new agent program

11/12/2002

Electronic Channels steady at 21%

ar -0 0

•

Scandinavian Airlines

ja n-0

Scandinavian Airlines’ new net pricing concept as from 2003

50% 70%

MSEK 3 200 (vs 3 400)

52

m

51

 Estimate Full year 2002 (Based on current levels)

m

98 -

19

19

98 -

03 -3

01 -0 98 -

98 -

19

19

19

0 06 -2 6 09 98 21 -1 19 2-1 99 6 -0 19 399 16 -0 19 699 15 -0 19 999 08 -1 20 2-0 00 1 -0 20 200 29 -0 20 52 00 6 -0 20 800 21 -1 20 101 14 -0 20 2-1 01 2 -0 20 501 10 -0 20 801 03 -1 20 002 30 -0 20 1-2 02 5 -0 20 402 24 -0 20 702 23 -1 015

0

2

0

% Sold - Travel Pass, Travel Pass Corporate, ETIX, Internet % Sold via Internet

 Total volume E-channels in Q3 MSEK 1 618  20% of total passenger sales in Q3  New web site launched in May

54

11/12/2002

The SAS Group Investor Relations Tel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110 e-mail: [email protected] --- Homepage: www.scandinavian.net -- Results Jan -Sep 2002

Income Subsidiary & Affiliated Airlines – Braathens and Spanair fully consolidated Operating revenues

January – September 2002 2001 12 877 2 265

EBITDAR

+2 694

+351

+374*

+86

(MSEK)

EBT bef gains

* = Includes Spanair as affiliated company Nov/Dec 2001 because of change of financial year

55

11/12/2002

56

Significant better earnings in Subsidiary & Affiliated Airlines Jan-Sep 2002 vs 2001 Jan-Sep in MSEK

4 669*

-3,3%

5 515

5,9%

1901

20,8%

EBITDAR

853*

59%

1 298

180%

329

17%

202

231%

24*

n.m

634

n.m

66

25%

77

n.m

EBT

Spanair on track but affected by weak charter market EBT in Q3 of 153 MSEK MSEK

Revenues

781 14,5%

11/12/2002

JulJul-Sep 2002

Passenger revenue Other revenues

Operating revenues EBITDAR EBIT EBT

1 343 970

2 313 541 220 153

 Spanish domestic market down 10% overall  Increased market share from 22% to 27% on Spanish domestic  Weak charter market (-15%)  Significantly increased yield 27,2% Jan-Sep  Closure of intercontinental traffic  Focus on high yield markets  Price increases in Spanish market

* = Spanair accumelated figures for the period March-September 57

11/12/2002

SAS AUSTRIAN

AIR CANADA /

LAUDA AIR

CANADIAN THAI VARIG AIR NEW ZEALAND

Long-haul operations closed in March 2002 Improved mix

ALL NIPPON

UNITED

TYROLEAN

Shift from low yield to high yield markets

SINGAPORE MEXICANA BRITISH MIDLAND

Key Operating data:

SPANAIR

– Total Aicraft utiliz 9,2 hrs/ day – Cabin Crew 900 hrs/year

59

11/12/2002

Spanair’s unit cost well in line with european low cost carriers

Spanair ready to join STAR Full member as from 2003 LUFTHANSA

58

11/12/2002

60

Cost reductions Capacity reductions Unit cost in line with low costs carriers Positive operating profit for 2002 (including capital gains)

11/12/2002

The SAS Group Investor Relations Tel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110 e-mail: [email protected] --- Homepage: www.scandinavian.net -- Results Jan -Sep 2002

Strong performance in Braathens during Jan-Sep of 2002

Braathens – continues to perform well on Norwegian market  9 % fall in the total domestic market compared with Jan - Sept 2001  Cabin factor Jan – Sept on scheduled was 58,6 % vs 52,1 % in same period 2001

JulyJuly-September

2002

2001

1 522 421

1 413 374

1 943 +428

1 787 +164

+190

-69

Passenger Revenue Other Revenues

Operating Revenues EBITDAR EBT

61

 New route schedule from April 2 and full effect of large capacity and cost cuts late 2001 gave significant improvements  Jointly with Scandinavian Airlines provide a superior net work and good products to meet competition

11/12/2002

62

11/12/2002

64

11/12/2002

Widerøe and Air Botnia significantly improved results Widerøe  Increased traffic by 21,5% in Q3 and good performance.

Air Botnia  Strong performance and increased traffic (RPK) by 36,6%.  Strengthened market position

Jan – Sep 2002  Total Revenues MSEK 1 901 (+21%)  EBITDAR MSEK 329 (+17%)

Jan – Sep 2002  Total Revenues MSEK 781 (+15%)  EBITDAR MSEK 202 (+231%)

 EBT

 EBT

MSEK 66 (+25%)

63

MSEK 77 (n.m)

11/12/2002

Income Business Area Airline Related Business

SAS Cargo

EBITDA down 27% mainly due to weak Cargo development

MSEK



January - September 2002

2001

6 419 -6 049

5 841 -5 335

370

506

44

190

Operating revenues Operating expences



SAS Cargo was established as an independent corporation on June 1st 2001 SAS Cargo offers together with the WOW Alliance (Lufthansa Cargo and Singapore Airlines Cargo) harmonized express products all over the world.

Key figures Jan-Sep

EBITDA

Income before taxes

2002

2001

Operating revenue

2 043

1 976

Traffic revenue, MSEK

1 632

1 588

EBITDA, MSEK Number of employees

-26

-

1 134

1 187

* = SAS Cargo was formed in 2001. Operating revenue figures are not available before. 65

11/12/2002

66

11/12/2002

The SAS Group Investor Relations Tel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110 e-mail: [email protected] --- Homepage: www.scandinavian.net -- Results Jan -Sep 2002

SAS Trading – turn around in prosess

Scandinavian IT Group

SAS Trading is a business in the SAS Group and a operator within Travel Retail. SAS Trading had 658 employees at year end 2001 In 2001 SAS Trading lost its concessions for duty free sales and operation of stores at Swedish airports.

One of Scandinavia's largest IT companies, with a turnover of 2 463 MSEK in 2001 and a total of more than 1300 employees in three countries

January-September 2002 2001 Total Revenues EBITDA Profit before taxes www.scandinavian www.scandinavianIT scandinavianIT. IT.com

1 676

1 835

176

196

81

84

January-September 2002 2001 Total Revenues www.scandinavian www.scandinavian. scandinavian.net

Scandinavian IT Group Customer driven - Airline focused - Technology based

67

68

1 734

36

7

4

-24

Profit before taxes

11/12/2002

SAS Flight Academy – EBITDA flat 2002 vs. 2001

11/12/2002

Jetpak Jetpak is one of the fastest growing companies withing expresslogistic in the Nordic countries. The company is 100% owned by SAS Group and has 151 employees

Training centers for pilots and other personell. 35% of revenues outside SAS in 2001.

www.sasflightacademy www.sasflightacademy. sasflightacademy.com

1 560

EBITDA

January-September 2002 2001

January-September 2002 2001 Total Revenues 458 460

Total Revenues

280

265

EBITDA

EBITDA

2

16

Profit before taxes

-3

12

Profit before taxes

69

105

107

26

38

www.jetpak www.jetpak. jetpak.com

11/12/2002

70

11/12/2002

Rezidor SAS Hospitality – current brand and market penetration

Number of hotels 180 160 140 120 100 80 60 40 20 0

Franchised Managed Leased Owned

'94

71

11/12/2002

'95

'96

'97

'98

'99

'00

'01

72

11/12/2002

The SAS Group Investor Relations Tel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110 e-mail: [email protected] --- Homepage: www.scandinavian.net -- Results Jan -Sep 2002

SIH

+1,5%

Operating result

195

231 -15,6%

Adjusted EBITDA

192

196

Pre tax profit Including gains

103

81

-2,0% -

Jan-Sep 2002 103 MSEK Jan-Sep 2001 81 MSEK

REVPAR - Rezidor

73

11/12/2002

New step: Rezidor SAS to invest in new multi-brand concept Capitalize on current brand Platform for further growth – more brands more choices Streamlining of products with distinct profile Capitalize on knowledge and experience Economies of scale Reduced cyclically and business risks

75

Capitalize on current brand Platform for further growth – more brands more choices Streamlining of products with distinct profile Capitalize on knowledge and experience Economies of scale Reduced cyclically and business risks

77

11/12/2002

REVPAR - Market

74

11/12/2002

Rezidor SAS signed 30 year partnership agreement with Carlson Companies Inc. Master franchise agreement with exclusive rights for Europe, Middle East and Africa with access to: Global reservations system Strong marketing network Existing customer base Loyalty program IT and know how 30 year term with exclusivity

Brand portfolio: Regent, Radisson SAS, Country Inns and Park Inn

Insignificant investment - 4,5 MEUR

11/12/2002

New step: Rezidor SAS to invest in new multi-brand concept

02-jul

2 561

Pretax profit:

may02

2 599

15,00% 10,00% 5,00% 0,00% MSEK -5,00% -10,00% -15,00% -20,00% -25,00%

02-jan

Change

02-mar

Jan-Sep 2001

01-nov

Revenues

Jan-Sep 2002

01-jul

in MSEK

REZIDOR SAS Hospitality – REVPAR under pressure but better than industry

01-sep

REZIDOR SAS Hospitality – negatively affected by weaker markets

76

11/12/2002

Rezidor SAS signed 30 year partnership agreement with Carlson Companies Inc. Master franchise agreement with exclusive rights for Europe, Middle East and Africa with access to: Global reservations system Strong marketing network Existing customer base Loyalty program IT and know how 30 year term with exclusivity

Brand portfolio: Regent, Radisson SAS, Country Inn and Park Inn

Insignificant investment - 4,5 MEUR 78

11/12/2002

The SAS Group Investor Relations Tel. +46 (0) 8 797 1451 Fax: +46 (0)8 797 5110 e-mail: [email protected] --- Homepage: www.scandinavian.net -- Results Jan -Sep 2002

SIH

Rezidor SAS Brand Positioning in Europe

Three new brands acquired for MSEK 60

Inter-Continental Regent

Regent –

Established in 1970, 5-star deluxe, 10 hotels in North America, Asia & Europe (1 in Berlin, Germany & 1 in Almaty, Kazakhstan)

Minimum Service

Established in 1987, Mid-market, 300 hotels in North America & Asia, 12 hotels in Europe

Limited Service

Included in Carlson Hotels in 2000, 3-star, limited service business hotel, 60 hotels in North America & Asia

Full Service

Country Inns

Park Inn Ibis

Park Inn –

Hilton Marriott Radisson SAS Sheraton Holiday Inn Novotel Scandic

First Class

Country Inns –

Four Seasons

Luxury

MidMid-Priced economy

Formula1

“Hard” Budget 79

11/12/2002

80

11/12/2002

82

11/12/2002

Radisson SAS current growth strategy Expansion in existing home markets – Scandinavia, Finland, Germany Extend home markets to UK, France, Benelux & Poland Expand in capitals & other important cities - e.g. Athens, Barcelona, Cairo, Rome, Zagreb…

Financials

Extend into leisure & resorts Focus on airport hotels

11/12/2002

Considerable surplus values despite reduced aircraft prices

Target:  Net debt to peak in 2002  Targets 2004 – Solidity >30% – Net debt/ equity