Q4 2022: THE TRANSFORMATION PLAN PROGRESSES AND IMPORTANT GOALS ARE REACHED

30 Nov 2022 08:05 CET

During the fourth quarter, we have noted the highest number of passengers since
the pandemic started. Our capacity increased 15% compared with the third quarter
and grew 52% year-over-year. We are also proud to see that our Customer
Satisfaction Index is increasing, meaning that not only our valued customers are
continuing to choose us, but it also indicates that they are appreciating our
product offering.

Overall underlying demand for travel was healthy during the summer and the trend
continued through the fourth quarter, with an expected minor dip in October. We
are now entering the slower winter months but are preparing for another active
summer season in 2023 and are both rehiring as well as hiring to be able to meet
the expected increased demand going forward.

SAS continues to make progress in our transformation plan SAS FORWARD and we
reached important milestones in the Chapter 11 process during the fourth
quarter. In August, SAS secured USD 700 million in debtor-in-possession (DIP)
financing from Apollo Global Management. This substantial financing
commit[1]ment gives us a strong financial position to support our operations
throughout the Chapter 11 process. Over the past months, we have struck
agreements with aircraft

lessors regarding concessions and various cost-savings initiatives in line with
our objectives.

We look forward to continuing collaboration with all our stakeholders, to
succeeding with the SAS FORWARD plan and to becoming a competitive and
financially strong airline.

AUGUST 2022-OCTOBER 2022

· Revenue: MSEK 10,651 (5,762)
· Income before tax (EBT): MSEK -1,701 (-945)
· Income before tax and items affecting comparability: MSEK -1,626 (-911)
· Net income for the period: MSEK -1,238 (-744)
· Earnings per common share: SEK -0.17 (-0.12)

NOVEMBER 2021-OCTOBER 2022

· Revenue: MSEK 31,824 (13,958)
· Income before tax (EBT): MSEK -7,846 (-6,525)
· Income before tax and items affecting comparability: MSEK -7,941 (-6,382)
· Net income for the period: MSEK -7,048 (-6,523)
· Earnings per common share: SEK -0.97 (-0.94)

SIGNIFICANT EVENTS DURING THE QUARTER

· In the beginning of August, SAS entered into a debtor-in-possession ("DIP")
financing credit agreement for USD 700 million with funds managed by Apollo
Global Management. The initial tranche of USD 350 million was drawn in
September.
· SAS has signed a letter of support with Heart Aerospace for the option to
add their new electric aircraft to the SAS regional aircraft fleet.
· "Journeys That Matter" is the name of a new communication concept launched
in September.
· The SAS FORWARD plan is progressing and new agreements were reached on
amended terms and conditions for existing aircraft and equipment leases in the
quarter with ten lessors for 36 aircraft. SAS has also rejected a number of
lease contacts.

SIGNIFICANT EVENTS AFTER THE QUARTER

· Further agreements were reached regarding aircraft and equipment leases
after the end of the quarter (in total, agreements have been reached with 13
lessors for 46 aircraft).
· SAS currently targets to complete its court-supervised process in the U.S.
during the second half of 2023, the implementation of which is likely to entail
additional legal proceedings in other jurisdictions than the U.S. As a result,
there is no assurance that there will be any recovery for the shareholders of
SAS AB. SAS expects that its operations will be unaffected by such legal
proceedings and that it will continue to serve its customers as normal.

OUTLOOK

· The year-end report includes a financial outlook on p. 10

QUARTERLY RESULTS

The fourth quarter is yet another quarter where we have noted the highest number
of passengers since the pandemic started. Compared with the previous quarter,
passengers flying with SAS increased 13% and the flown load factor reached
approximately 77%. Our capacity increased 15% compared with the third quarter.
SAS needs to continue its transformation to adapt to the new market conditions
in order to be able to become more flexible, competitive and financially strong
for the long term. Earnings before tax ended at negative SEK 1.7 billion,
representing a quarter-on-quarter improvement of SEK 0.3 billion, or a year-on
-year decrease of SEK 0.8 billion. As with previous quarters in 2022, the
currencies and jet-fuel price have brought strong headwinds for our business.

Cost reductions across the business remain in focus to secure our cost
competitiveness. Total operating expenses during the quarter ended at SEK 10.7
billion and total operating revenue landed at SEK 10.7 billion for the quarter.
Total revenue increased 24% compared with the third quarter, a year-on-year
improvement of approximately SEK 4.9 billion, but still 21% below the fourth
quarter in 2019, which was unaffected by COVID-19.

The cash balance at the end of the quarter was SEK 8.7 billion. Operational cash
flow during the quarter amounted to an inflow of SEK 0.4 billion, compared with
an inflow of SEK 1.1 billion for the same period last year.

UPDATE ON PROGRESS WITH OUR TRANSFORMATION PLAN SAS FORWARD

SAS FORWARD is a comprehensive business trans[1]formation plan that was launched
in conjunction with the publication of the first quarter report for FY 2022 at
the end of February. The aim of the plan is to secure long-term competitiveness
for SAS in the global aviation industry. The plan aims to strengthen our
financial position and achieve a sustainable cost structure with an annual cost
reduction of approximately SEK 7.5 billion. As part of SAS FORWARD, we also plan
to raise at least SEK 9.5 billion in new equity and convert more

than SEK 20 billion of debt into equity.

SAS has made important progress in implementing the SAS FORWARD plan, having
identified the full value of the SEK 7.5 billion target in reduced annual costs
and we have continued to invest in our digital capabilities and sustainability
efforts. The 5.5-year collective bargaining agreements reached between SAS and
the SAS Scandinavia pilots' unions in July are also a key element of SAS
FORWARD. These important agreements have resulted in increased flexibility and
productivity, but are still subject to approval by the US court. SAS also
received support for the plan from the Swedish, Danish and Norwegian
governments. All three states have indicated an intention to convert SAS debt
and hybrids into equity, subject to certain conditions including regulatory
approvals. Denmark has also published that, potentially, it may invest new
capital, subject to all stakeholders' participation in SAS FORWARD. However,
much remains to be done.

To accelerate the implementation of key elements of the plan, SAS voluntarily
filed for Chapter 11 in the U.S. on July 5. Chapter 11 is a legal process for
financial restructuring conducted under U.S. federal court supervision. It has
previously been used by a number of large international airlines to restructure.
Through this process, SAS aims to reach agreements with key stakeholders,
restructure our debt obligations, renegotiate our fleet contracts and emerge
with a significant capital injection. SAS' operations and flight schedule are
unaffected by the Chapter 11 filing and we continue to serve our customers as
normal. SAS targets to complete its court-supervised process in the U.S. during
the second half of 2023, the implementation of which is likely to entail
additional legal proceedings in other jurisdictions than the U.S. As a result,
there is no assurance that there will be any recovery for the shareholders of
SAS AB.

During the fourth quarter, SAS took important positive steps in the process by
reaching agreements with several lessors to amend the terms of existing aircraft
and equipment lease agreements. As of the date of publication of this year-end
report, SAS has reached agreements with a total of 13 lessors, representing 46
aircraft. SAS has also rejected a number of lease contacts. For additional
information, please refer to Note 1. This constitutes a major step in
reconfiguring the fleet and achieving the SEK 7.5 billion in annual cost savings
under the SAS FORWARD plan.

SAS SECURES USD 700 MILLION IN DEBTOR-IN-POSSESSION FINANCING

In August, SAS secured USD 700 million, or approximately SEK 7.0 billion, in
debtor-in-possession (DIP) financing from Apollo Global Management. DIP
financing is a specialized type of bridge financing used by businesses that are
restructuring through a Chapter 11 process. The DIP financing, along with cash
generated from our ongoing operations, enables SAS

to continue meeting its obligations throughout the Chapter 11 process.

A NEW COMMUNICATION CONCEPT IS LAUNCHED

The pandemic brought about changes in demand as well as travel patterns. In
order to stay relevant in the overall travel market we launched a new
communication concept in September. The campaign highlights the importance of
traveling and represents SAS' first brand campaign since 2020 and is called
"Journeys that matter." The new communication concept speaks to this new, wider
target group. It emphasizes that traveling gives us new perspectives,
experiences and lifelong memories. The revised and updated visual identity adds
new warm and personal elements while retaining our characteristic core.

THE COMING WINTER SEASON

We have entered the winter season, and we remain cautious due to the prevailing
uncertainties around the world. Traffic to and from Asia remains affected by
COVID-19 restrictions as well as by the geopolitical situation in Eastern
Europe, and Russian airspace remains closed.

In comparison with last winter, SAS has noted a general increase in demand for
travel both to classic ski destinations and to warmer holiday destinations. For
the winter program SAS continues to open new routes and schedules more flights
to popular destinations. During the coming winter, SAS will operate more than
170 routes to 90 destinations. More capacity will be

added and SAS is returning to popular winter destinations such as Miami,
Sälen/Trysil, Innsbruck and Salzburg.

LOOKING AHEAD

Looking ahead to the next summer season we are preparing for substantial
recruitments and rehirings that have been initiated in order to meet the
expected increased future demand.

The SAS FORWARD plan includes positioning SAS as a leader in sustainable
aviation. SAS will continue to invest in modern fuel-efficient aircraft,
sustainable aviation fuels, emerging technologies, and sustainable products and
services. By 2025 we will reduce our CO\2 \emissions by at least 25% compared
with 2005. During the quarter, we signed an important letter of support with
Heart Aerospace for the option to add their new electric aircraft, ES-30, to the
SAS regional aircraft fleet. This has the potential of being a significant step
on SAS' sustainability journey, enabling zero-emission flights on routes within
Scandinavia.

We appreciate the feedback we receive from our passengers. We are looking to
increase personalization and improve our digital tools, as well as develop
partnerships to increase our customer offering. We will continue to launch new
exciting routes and will increase

our frequencies.

We are engaging with other stakeholders as part of the next phase of the Chapter
11 process, which includes launching an equity solicitation process to obtain
the capital necessary to implement our SAS FORWARD plan and working to build
consensus for a plan of reorganization.

My colleagues at SAS are working really hard and are doing their very best to
ensure that every aspect of the customer journey is as good as it possibly can
be. I am extremely grateful for all their efforts.

As always, we look forward to welcoming our customers on board our aircraft.

Anko van der Werff

President and CEO

Stockholm, November 30, 202

For further information, please contact:

SAS Press office, +46 8 797 29 44

Louise Bergström, VP Investor Relations, +46 70 997 0493

This is information that SAS AB is obliged to make public pursuant to the EU
Market Abuse Regulation. The information was submitted for publication by Louise
Bergström at 8:00 p.m. CEST on November 30, 2022.

SAS, Scandinavia's leading airline, with main hubs in Copenhagen, Oslo and
Stockholm, flies to destinations in Europe, USA and Asia.Spurred by a
Scandinavian heritage and sustainability values, SAS aims to be the global
leader in sustainable aviation. We will reduce total carbon emissions 25 percent
by 2025, by using more sustainable aviation fuel and our modern fleet with fuel
-efficient aircraft. In addition to flight operations, SAS offers ground
handling services, technical maintenance and air cargo services. SAS is a
founding member of the Star AllianceT, and together with its partner airlines
offers a wide network worldwide.

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