Hurtigruten Group AS: Q3 2022 Trading Update "Correction"

15 Nov 2022 11:38 CET

The third quarter of 2022 marked the first full quarter since fourth quarter
2019 in which Hurtigruten Group’s entire fleets were fully operational. Total
revenues and other income in the third quarter of 2022 was EUR 195.3 million for
Hurtigruten Group, just 1% below the third quarter of 2019.

Hurtigruten Group AS had in Q3 a normalised EBITDA of EUR 35.7 million, whilst
cash flow from operations was negative EUR 6.8m driven by a negative cash flow
from working capital offsetting the positive EBITDA.

Capital expenditure in the third quarter of 2022 amounted to EUR 19.4 million
with MS Richard With completing its upgrade to battery powered hybrid propulsion
and re-joining the Hurtigruten Norway fleet in Q3.

Cash flow from financing activities in Q3 was positive with EUR 21.7m including
increase in the subordinated shareholder loan of EUR 55 million and paid
interest of EUR 26.6m.

We are continuing to see a change in booking patterns with guests booking closer
to departure. For the 6-month period from October 2022 to March 2023 the
bookings are, as of 12 November, at EUR 224 million which 6% higher compared to
the same 6-month period pre pandemic (Q4 2019-Q1 2020).

The first quarter of 2023 sees good traction and as of 12th November, the
bookings for Q1 2023 are at EUR 111 million which is 72% higher compared to the
total booked revenue achieved in Q1 2022. The bookings for 1H 2023 are currently
at EUR 176 million vs. EUR 194 million booked revenue achieved in 1H 2022.

Booking momentum is increasing and for the last 14 days total new sales for 2023
is EUR 18 million which is up 20% vs. the 14-day period prior and 75% higher
than the same period last year for 2022.

For the second half of 2022, we expect to generate approximately EUR 340m total
operating revenues and other income and a Normalized Adjusted EBITDA margin of
approximately 15%, resulting in operating cash flow of approximately EUR 20
million. Net capital expenditures are expected to be approximately EUR 65m for
the same period.

In the financial year 2023, we expect total revenues to increase by
approximately 40-50% relative to 2022, with a Normalized Adjusted EBITDA margin
of approximately 25%. In the subsequent four years, total operating revenues and
other income are expected to grow between 5.5-7.5% and our Normalized Adjusted
EBITDA margin is expected to grow to a long-term target of 35%. Capital
expenditures net of NOX refunds are anticipated to be EUR 30 million in 2023 and
EUR 60 million in 2024. From 2025 onwards, gross maintenance capital
expenditures are expected to be on average approximately EUR 25 million per year
varying according to vessel docking schedules. Average Unlevered free cash flow
conversion (relative to Normalized Adjusted EBITDA) is expected to be at
approximately 80% in 2023-2024 and 95% thereafter.

On the 14th of November 2022 the Company’s shareholders agreed to provide a EUR
20 million loan facility that will be utilized for financing the ongoing
environment projects in the Hurtigruten Norway fleet and working capital on the
back of strong Q3 bookings. Proforma for the loan, the Hurtigruten Group had
available liquidity at the end of October 2022 of EUR 45 million. The Company
remains in active dialogue with its shareholders and expects to remain in
compliance with all its financial covenants and is actively discussing
alternatives for Hurtigruten Group’s medium- and short-term maturities with
stakeholders and financing providers. The ultimate shareholders of the company
have confirmed that they remain supportive and have indicated that they would be
willing to consider providing additional liquidity, if necessary.

For further information, please contact:
Investor Relations team: InvestorRelations@hurtigruten.com




About Hurtigruten Group

Hurtigruten Group is the world's leading adventure travel company, allowing
guests to explore unique destinations in a sustainable and meaningful way.
With headquarters in Oslo, Norway and London, England and offices around the
world, Hurtigruten Group has a proud expedition heritage and is committed to
working with the best green technology to ensure our products are safe and
respectful towards nature, wildlife, and the communities we visit.
Hurtigruten Group has a comprehensive portfolio encompassing three business
areas: Hurtigruten Expeditions, which was founded in 1896, and is the world’s
leading expedition cruise operator offering more than 250 destinations to more
than 30 countries including Alaska, Antarctica, Arctic Canada and the Northwest
Passage, the British Isles, the Caribbean, Galapagos Islands, Greenland,
Iceland, Norway, South America, and West Africa.
Hurtigruten Norway, which operates Norwegian Coastal Express, and is considered
‘the world’s most beautiful voyage’ has been sailing along the Norwegian
coastline since 1893. Hurtigruten Svalbard, one of the most exclusive tour
operators in the industry, offers land-based adventures on the spectacular
Arctic archipelago.
https://global.hurtigruten.com/

Disclaimer
Forward-looking statements. This Trading Update may include “forward-looking
statements.” These statements can be identified by the use of forward-looking
terminology, including the terms “assumes,” “believes,” “estimates,”
“anticipates,” “probability,” “risk,” “target,” “goal,” “objective,” “expects,”
“intends,” “projects,” “plans,” “may,” “will” or “should” or, in each case,
their negative or other variations or comparable terminology. These
forward-looking statements include all matters that are not historical facts.
They include statements regarding the intentions, beliefs or current
expectations of the Company concerning, among other things, the Company’s
results of operations, financial condition, liquidity, prospects, growth,
strategies and the industry in which it operates, and include any business plan
information included in this presentation. Any forward-looking statements which
the Company make in this Trading Update speak only as of the date of such
statement. These statements are not guarantees of future performance and involve
certain risks, uncertainties and assumptions that could cause actual results to
differ materially from those in the forward-looking statements. As a result, you
should be cautious in placing any reliance on such statements and make your own
judgment as to the likelihood of such statements materialising in the future and
the reasonableness of any underlying assumptions. The Company does not intend,
and undertakes no obligation, to revise the forward-looking statements included
in this Presentation to reflect any future events or circumstances.
The Company has included non-IFRS financial measures in this Trading Update,
which may not comply with the U.S. Securities and Exchange Commission rules
governing the presentation of financial measures. These financial measures may
not be comparable to those of other companies. Reference to these non-IFRS
financial measures should be considered in addition to IFRS financial measures,
but should not be considered a substitute for results that are presented in
accordance with IFRS.

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