Cash Flow Statement

NOK 1 000

Cash flows from operating activities;

Profit before income tax

Depreciation, amortization

Impairment of shares in subsidiaries

Valueadjustment financial assets

Pension expense without cash effect

(Gain)/loss on investment in associated company

Employee option cost

Change in inventories, accounts receivable and accounts payable

Change in air traffic settlement liabilities

Change in other current assets and current liabilities

Net cash flow from operating activities

Cash flows from investing activities;

Prepayments aircraft purchase

Purchases of tangible assets

Purchases of intangible assets

Net cash from acquisition

Payment to subsidiaries

Payment to investment in financial fixed assets

Returns on investments in financial fixed assets

Net cash flow from investing activities

Cash flows from financial activities;

New long term liabilities

Payment long term liabilities

Interest on borrowings

Paid-in equity

Paid-out equity

Net cash flow from financial activities

Net change in cash and cash equivalents

Cash and cash equivalents at 1 January

Cash and cash equivalents at 31 December

Note 1

Accounting policies

The financial statement of Norwegian Air Shuttle ASA is prepared in accordance with the Norwegian Accounting Act of 1998 and Generally Accepted Accounting Principles in Norway.

In preparation of the accounts, estimates and assumptions used are influencing reported numbers. The final result may deviate from used estimates.

General valuation rules and classification of assets and liabilities

Assets the Company intends to own or use permanently are classified as non-current assets. All other assets are classified as current assets. Receivables due for payment within 12 months are classified as current assets. The equivalent criteria are applied to the classification of short-term liabilities and long-term liabilities.

Fixed assets are recognized at acquisition cost. Fixed assets are depreciated using the straight-line method over estimated economic life of the assets. If fair value of fixed assets is lower than their book value, and the decline is expected to be permanent, the asset is written down to fair value.

Aircraft is decomposed into two components for depreciation purposes. In accordance with official requirements, aircraft must be maintained and significant components changed after a specific number of takeoffs or airborne hours. These components are identified as C check and D check on aircraft body. Power restoration and life limited parts for the two engines on each plane, as well as maintenance on landing gears and the APU. The maintenance and overhaul on these components occurs on a defined interval, and the value is depreciated based on number of takeoffs or airborne hours until the next maintenance occurs. Completed maintenance and overhaul is capitalized and depreciated until next relevant maintenance and overhaul. The second aircraft component is defined as the remainder of the aircraft and depreciated over the economic useful life.

Current assets are valued at the lower of acquisition cost and fair value, except for derivatives designated as hedging instruments. Foreign currency contracts are measured at fair value.

Financial assets are valued at fair value.

Changes in accounting principles

There have been no changes in accounting principles during the year.

Revenues

Revenue from sale of services are recognized in the income statement once rendered services have taken place and most of the risk has been transferred. Sales revenues are presented net of value added tax and discounts.

Passenger revenue: Ticket sales are reported as traffic revenue when the air transport has been carried out. The value of tickets sold and still valid but not used at the balance sheet date (amounts sold in excess of revenue recognized) is reported as air traffic settlement liability. This liability is reduced either when NAS ASA or another airline completes the transportation or when the passenger requests a refund.

Ancillary revenue; Ancillary revenue comprises sales of ticket-related products and services, e.g; excess baggage and fees. Some of the products and services are earned at the time when the transport has been carried out, and such revenue is recognized in the same manner as passenger revenue. Other products and services are earned at the time of purchase and immediately recognized in the income statement.

Other revenue; Other revenue comprises third party revenue and is recognized when the service has been rendered, fees are reliable measurable, collections are probable, and when other significant obligations have been fulfilled.

Customer loyalty program – Norwegian Reward

Customers earn cash points in the following circumstances;

• Bank Norwegian customer; 1% of the payment is earned on all purchases, except domestic flights in Norway or flights with competitive airlines in Norway. Additionally, cash points are earned on all ‘low fare’ and ‘full flex’ tickets purchased from Norwegian Air Shuttle ASA and paid with Bank Norwegian credit cards, with 4% and 19% of the purchase price, respectively.

• My reward customer; 2% on all low fare tickets and 10% on all full flex tickets

• Corporate reward customer; 3% on all low fare tickets and 7% on all full flex tickets

• Call Norwegian customer; 3% of all purchases

Corporate customers earn cash points on all airfares. Private customers earn cash points on international flights as domestic flights in Norway are prohibited from cash points earning for private customers.

Earned customer cash points on airline tickets and purchases from Call Norwegian are recognized as a liability in the balance sheet and deducted from the value of the purchase at the purchase date. The customer cash point liability is derecognized from the balance sheet and recognized as income when customers utilize their cash points.

Earned customer cash points on 1% reward from Bank Norwegian are recognized as a liability in the balance sheet and immediately expensed. When the customers utilize earned cash points, the liability is derecognized and cash payment on the Company’s services reduced.

Unutilized cash points are derecognized from the balance sheet after three years. The liability is classified as short term available statistics as of 31 December 2009 indicates that customer cash points are utilized within one year.

Assets and liabilities denominated in foreign currency

Monetary items denominated in foreign currency are converted using the exchange rates on the balance sheet date. Income statement items are converted using the exchange rates prevailing at the time of the transactions. Changes to exchange rates are recognized in the income statement as they occur during the accounting period.

Intangible assets

Intangible assets, including development expenses, are capitalized when it is likely that the future financial benefits related to the assets will benefit the Company and the acquisition cost can be measured reliably. Intangible assets are depreciated using the straight line method.

Intangible assets are subject to write-down if the expected financial benefits from the asset are less than book value and remaining development expenses.

Leasing agreements for tangible assets

Assets that are leased on terms where the major part of risk and control is transferred to the Company (financial lease) are capitalized as tangible assets. Future lease obligations are calculated as the net present value of future lease payments and are recognized as other long term liabilities. The tangible assets are depreciated systematically, and the lease obligations are reduced with lease payments reduced for calculated interest expense.

Periodic maintenance on tangible assets that are recognized in the balance sheet is reflected through the assets depreciation plan. For assets that are subject to operational lease, the Company’s obligation to perform periodic maintenance in excess of the contractual level is recognized as a provision.

Investment in subsidiaries and associates

Subsidiaries are valued at cost in the Company accounts. The investment is valued as cost of acquiring shares in the subsidiary, providing they are not impaired. Write down to fair value will be carried out if the impairment is not considered temporary, and a write down is deemed necessary according to generally accepted accounting principles. Impairments are reversed when the indication no longer exist.

An associate is an entity in which the Company has a significant influence but does not control management of its finances and operations (normally when the group owns 20%-50% of the Company). The financial statements include the Company’s share of the profits or losses from associates, accounted for using the equity method, from the date when a significant influence is achieved and until the date when such influence ceases. Dilution gains and losses arising from investments in associates are recognized in the income statement.

When the accumulated share of a loss exceeds the Company’s investment in an associate, the amount carried in the balance sheet is reduced to zero and further losses are not recognized unless the Company has an obligation to cover any such loss.

Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the Company’s policies.

Derivates

Derivatives are initially recognized at cost and subsequently measured at the lower of cost and fair value. Impairment losses arising from fair value lower than initial cost are recognized as loss under ‘other losses/(gains)- net’ in the income statement.

Forward foreign currency contracts are initially recognized at fair value on the date a contract is entered into, and are subsequently measured at fair value through profit or loss. Any changes in fair value are recognized in the income statement under ‘other losses/(gains) –net’.

Derivative forward commodity contracts are designated as hedging instruments and carried at fair value through profit or loss. The method of recognizing the resulting gain or loss depends on the nature of the item being hedged. The Company designates its derivatives as hedges of the fair value of recognized assets or liabilities or a firm commitment (fair value hedge) or cash flow hedge

The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining hedged item is more than 12 months and as a current asset or liability when the remaining maturity of the hedged item is less than 12 months.

Fair value hedge

Fair value hedges are hedges of the Company’s exposure to changes in the fair value of a recognized asset, liability, an unrecognized firm commitment or an identified portion of such that is attributable to a particular risk and could affect profit or loss. For fair value hedges, the carrying amount of the hedged item is adjusted for gains and losses attributable to the risk being hedged, the derivative is measured at fair value and gains and losses from both are taken to profit and loss.

Cash-flow hedge

The Company is exposed to market risks such as currency exchange rates, interest rates and jet- fuel prices. In order to minimize the effect of these risks (on profit or loss, cash flows and equity), the Company applies forward currency contracts and forward commodity (jet-fuel) contracts.

Forward commodity contracts designated as hedging instruments are recognized according to cash flow hedge accounting. Changes in fair value on hedging instruments are temporarily recognized in equity, net after tax. The fair value effects are derecognized from equity to the income statement at the time when the underlying hedged items are recognized in the income statement.

The fair value of derivative currency contracts are calculated by reference to current forward rates for contracts with similar maturity profiles. Thus the fair value of forward currency contracts changes in response to changes in foreign exchange rates. The fair value of forward commodity contracts changes in response to changes in a price index.

Other receivables classified as fixed assets

Other receivables are recognized at the acquisition value. Other receivables are written down to market value if a decline in value is considered to be permanent.

Inventory

Inventory consists of consumables and is valued at the lower of acquisition cost and net realizable value considering obsolescence.

Accounts receivable

Accounts receivable and other receivables are recognized at nominal value less allowances for doubtful debts. Allowances for doubtful debts are calculated on the basis of individual assessments.

Bank deposits, cash etc.

Bank deposits, cash etc. includes cash, bank deposits and other liquid assets with maturity dates less than three months from the date of acquisition.

Pensions

The Company operates a defined benefit pension plan which requires contributions to be made to a separately administered fund. In addition, the Company participates in an early retirement plan (AFP). This is also a defined benefit plan. The cost of providing benefits under the defined benefit plan is determined using the projected unit credit actuarial valuation method. Actuarial gains and losses are recognized as income or expense when the net cumulative unrecognized actuarial gains and losses at the end of the previous reporting year exceed 10 % of the higher of the defined benefit obligation and the fair value of plan assets at that date. These gains or losses are recognized over the expected average remaining working lives of the employees participating in the plans.

The past service cost is recognized as an expense on a straight-line basis over the average period until the benefits become vested. If the benefits are already vested immediately following the introduction of, or changes to, a pension plan, past service cost is recognized immediately.

The defined benefit obligation is the aggregate of the present value of the defined benefit obligation and actuarial gains and losses not recognized reduced by past service costs not yet recognized and the fair value of plan assets out of which the obligations are to be settled directly. If such aggregate is negative, the asset is measured at the lower of such aggregate or the aggregate of cumulative unrecognized net actuarial losses and past service cost and the present value of any economic benefits available in the form of refunds from the plan or reductions in the future contributions to the plan.

Stock Options

Stock options are accounted in accordance with IFRS 2 and Norwegian Accounting Act § 5 – 9a. Stock options are recognized at fair value and expensed over the stock option period; the contra is entered in other paid-in equity. Provisions for employer’s contributions are made.

Taxes

Tax expense consists of the aggregate of tax payable and changes in net deferred tax. Deferred income tax is provided using the liability method on temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax liabilities are recognized for all taxable temporary differences. Deferred income tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.

Deferred income tax assets and deferred income tax liabilities are offset to the extent that

• the Company has a legally enforceable right to offset the recognized amounts and

• deferred tax assets and tax liabilities relates to income tax from the same tax authority

Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future.

Cash Flow Statement

The cash flow statement is prepared in accordance with the indirect method. Cash and cash equivalencies consist of cash, bank deposits and short term investments in money market funds.

Note 2.1

Financial risk

The Company’s activities expose it to a variety of financial risks; market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk. The Company’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance. The Company uses derivative financial instruments to hedge certain risk exposures.

Risk management is carried out by a central treasury department (Group treasury) under policies approved by the Board of Directors. Group treasury identifies evaluates and hedges financial risk in close co-operation with the Group’s operating units. The Board provides principles for overall risk management such as foreign currency risk, interest rate risk, credit risk, use of derivative financial instruments and investment of excess liquidity.

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, jet-fuel prices and interest rates will affect the Company’s income or value of its holdings of financial instruments.

Foreign Currency Risk

A substantial part of the Company’s income and expenses are denominated in foreign currency. The Company’s leases, aircraft borrowings, maintenance, jet-fuel and related expenses are mainly denominated in USD, and airplane operation expenses are denominated in EUR. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations. In order to reduce currency risk, the Company has a mandate to hedge up to 100% of its currency exposure the next 12 months. The hedging consists of forward currency contracts and flexible forwards.

Occasionally the Company designates certain forward foreign currency contracts as hedging instruments to hedge the fair value of currency risk in unrecognized firm commitments.

The Company has included sensitivity analysis on foreign currency risk based on two different scenarios; sensitivity in USD to NOK on financial assets and liabilities at 31 December and actual sensitivity in USD exposure interdependent with jet-fuel. The rationale for such sensitivity is that USD exposure in the airline industry is closely related to USD exposure on jet-fuel as jet-fuel actually represents a USD exposure.

In 2009, if NOK had weakened/strengthened by 1% against USD with all other variables held constant, pre-tax profit and pre-tax equity effect for the year would have been MNOK 6.2 (2008: MNOK 0.3) lower/higher, mainly as a result of foreign exchange losses/gains on receivables, payables, derivative financial instruments and long term borrowings in USD.

By calculating sensitivity on foreign currency risk in USD using USD and jet-fuel prices as interdependent variables on operating income, a weakening/strengthening in NOK by 1% against USD dollar, pre-tax profit and pre-tax equity effect for 2009 would have been MNOK 28.7 (2008: MNOK 31) lower/higher. This calculation is based on estimated fuel consumption next 12 months, estimated net outflow of USD next 12 months, estimated average jet-fuel price and estimated average USD/NOK exchange rate.

If NOK had weakened/strengthened by 1 % against EUR with all other variables held constant, pre-tax profit and pre-tax equity effect for the year would have been MNOK 0.6 (2008: MNOK 3.6) higher/lower, mainly as a result of foreign exchange gains/losses on receivables, payables and derivative financial instruments.

Interest rate risk

As the Company has net interest bearing debt, the Company’s income and operating cash flows are dependent of changes in market interest rates. The Company’s interest rate risk arises from cash and cash equivalents and floating interest rate long borrowings. Floating interest rate borrowings consist of unsecured bond issue and revolving credit facility. Borrowings issued at fixed rates expose the Company to fair value interest rate risk. Fixed interest rate borrowings consist of term financing from PEFCO, guaranteed by the Ex-Im Bank of the United States. Long-term borrowings are denominated in USD and NOK. Leasing contracts have fixed interest rate.

In 2009, if floating interest rate had been 1% higher/lower with all other variables held constant, pre-tax profit and pre-tax equity effect for the year would have been MNOK 2.2 (2008: MNOK 2.4) lower/higher, mainly as a result of higher/lower net interest expense on floating rate cash and cash equivalents and borrowings.

The sensitivity analysis of interest rate risk is calculated based on nominal value of borrowings and cash and cash equivalents.

The Company measures borrowings at amortized cost. No changes in fair value of fixed interest rate borrowings would be accounted for. Fair value calculations of fixed interest rate borrowings are detailed in note 24.

Jet-fuel prices

Expenses for jet-fuel represents a substantial part of the Company’s operating costs, and fluctuations in the jet-fuel prices influence the projected cash flows. The objective of the jet-fuel price risk management policy is to provide protection against significant and sudden increases in jet-fuel prices whilst retaining access to price reductions. The Company manages jet-fuel price risk using fuel derivatives. Management has a mandate to hedge up to 100 % of its expected consumption next 12 month with forward commodity contracts.

In 2009, if the jet-fuel price had increased/decreased by 1 % with all other variables held constant, pre-tax profit for the year would have been MNOK 17.0 (2008: MNOK 17.0) lower/higher.

The sensitivity analysis is calculated based on estimated jet-fuel consumption including estimated hedged consumption for the next 12 months. As opposed to the sensitivity analysis of USD currency risk, the jet-fuel price risk analysis is not based on interdependence between jet-fuel price and USD exchange rates. The sensitivity is calculated using USD/NOK exchange rate at the balance sheet date.

Credit risk

Credit risk is managed on group basis. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to travel agencies and commercial customers, including outstanding receivables and committed transactions. The utilization of credit limits is regularly monitored. The Company’s policy is to maintain credit sales at a minimum level. Sales to personal customers are settled in cash or using major credit cards companies.

For a part of the Company’s sales, customers pay at the time of booking while the Company receive actual payments from credit card companies or acquires at a later point in time. Delayed payments from credit card companies vary between credit card brands. The risk arising from receivables on credit card companies or credit card acquires are monitored closely.

Credit risk related to bank defaults are closely monitored and partly offset by diversifying the Company’s deposit portfolio.

There are re-invoicing of maintenance costs on aircraft to leasing companies, and the Company regularly evaluates and assesses the value of these credits.

Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions.

Management monitors rolling forecasts of the Company’s liquidity reserve and cash and cash equivalents (note 22) on the basis of expected cash flow. In addition, the Company’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these; monitoring balance sheet liquidity ratios against internal and external regulatory requirements; and maintaining debt financing plans.

The Company will take deliveries of 7 aircraft in 2010, 14 aircraft in 2011 and the remaining 25 aircraft in the period 2012-2014. Pre-delivery payments related to the delivery of the first 10 aircraft were secured in 2007. The Company is currently in process of securing long term financing for the 2 deliveries in 2010, while 5 of the deliveries in 2010 is already secured using guarantees and direct loans from The Ex-Im Bank of the United States. This financing arrangement is reducing liquidity risk.

Capital risk management

The Company’s capital management policy is to have a capital structure suitable to the demands on operations, reducing cost of capital, risk factors in the industry, company specific risk and future investments planned by the Company.

Note 3

Revenue

NOK 1 000

By activity:

Passenger transport

Ancillary revenue

Other revenues

Total

By geographic market:

Norway

Other EU/EEA countries

Total

In 2009 and 2008, the Company has been running low-fare operations exclusively, using its fleet of Boeing 737 aircraft. The low-fare operation was launched in the autumn of 2002, and revenues from this business are specified the table above. Passenger revenue consists of revenue generated from sale of airline tickets, while ancillary revenue consists of other services directly generated from ticket sales. Other revenue consists of sales that are not directly related to an airline ticket, e.g cargo and sales of spare parts.

Note 4

Operational expenses

NOK 1 000

Sales and distribution expenses

Aviation fuel

Aircraft leases

Airport charges

Handling charges

Technical maintenance expenses

Other operating expenses

Total

Note 4a

Other operating expenses

Other operating expenses amount to MNOK 357.6 (2008: 254.6). Other operating expenses are related to operation of systems, marketing, back office, consultants and other costs not directly attributable to operation of the aircraft fleet and related airline specific costs.

Note 5

Payroll expenses, number of employees and remuneration

NOK 1 000

Wages and salaries

Social security tax

Pension expenses

Employee stock options

Other benefits

Total

In 2009, MNOK 8.4 (2008: MNOK 6.2) was charged as an expense to salary, according to the stock option program. The Company has a pension scheme covering all employees. The scheme is in compliance with the act on occupational pensions.

Number of man-labour years

Note 6

Other financial items

NOK 1 000

Foreign exchange income and loss

Appreciation financial current assets

Appreciation financial non - current assets (note 27)

Change in fair value hedge accounting

Other financial expenses

Impairment of shares in subsidiary

Total

See note 20 for details on change in fair value adjustments from hedge accounting. Impairment of shares in subsidiaries relates to shares in Norwegian Air Shuttle Sweden AB (note 25).

Note 7

Taxes

This year's tax expense consists of (NOK 1 000):

Tax payable

Change in deferred tax

Income tax expense

Reconciliation from nominal to effective tax rate:

NOK 1 000

Profit before tax

Expected tax expense using nominal tax rate (28 %)

Tax effect of the following items:

Non deductible expenses/non taxable income

Adjustment from previous year

Other items

Tax expense

Effective tax rate

Specification of tax payable

Tax payable in income tax expense

Group contribution

Tax payable in the balance sheet

Specification of temporary differences and tax loss carry forward:

NOK 1 000

Tangible assets

Long term receivables and borrowings in foreign currency

Financial instruments

Inventories

Receivables

Gain/loss account

Provisions

Pensions

Tax loss carry forward

Total

Deferred tax asset/liability

Adjustments in respect of prior years

Net recognized deferred tax asset/liability

1) Other temporary differences consist of book value of firm commitment recognised according to hedge accounting.

Gross movements on deferred income tax:

NOK 1 000

At 1 january (-) liability/(+) asset

Income statement charge

Tax charged directly in equity

Adjustment in respect of prior years

31 December

Note 8

Intangible assets

NOK 1 000

Software

Goodwill

Other intangible assets

Total

Acquisition cost at 1 January 2008

Additions

Disposals

Acquisition cost at 31 December 2008

Acquisition cost at 1 January 2009

Additions

Disposals

Acquisition cost at 31 December 2009

Accumulated amortisation and write-down at January 1 2008

Amortisation in 2008

Accumulated depreciation and write-down at 31 December 2008

Accumulated amortisation and write-down at January 1 2009

Amortisation in 2009

Accumulated depreciation and write-down at 31 December 2009

Book value at 31 December 2008

Book value at 31 December 2009

Economic life

3-5 years

15 years

Indefenite

Depreciation plan

Linear

Linear

None

Capitalized software is related to external consulting fees for the development of Norwegian’s own systems for booking and ticket-less travel, various sales portals, back office and new maintenance system (AMOS). The depreciation of the software commence as each module is completed.

Goodwill consists of purchased goodwill from Norwegian Air Shuttle Sweden AB in 2009. All airline operations were purchased from the subsidiary and the airline operations are run from Norwegian Air Shuttle ASA from 1 July 2009. Payment for the operation exceeding initial goodwill from the purchase of the shares in Norwegian Air Shuttle Sweden AB in 2007 (note 25) was added to the value of the shares and accounted for under other financial items (note 6) as impairment of shares in subsidiary. Goodwill and slots were identified as assets and measured at the value from initial purchase price in 2007.

Management has determined that goodwill related to the Swedish airline operation has a definite economic useful life of 15 years. The assessment is based on an assumption that the Company will earn future benefits from the Swedish operation for all foreseeable future. The depreciation plan of 15 years is based on an average depreciation plan for the Company’s total tangible and intangible assets.

Other intangible assets consist of intellectual property rights which are related to purchases of internet domains. The Company has developed web portals in Norway, Sweden and Denmark. The intellectual property right is recognized as an addition of MNOK 4 in 2008. In 2009, the Company purchased slots from Norwegian Air Shuttle Sweden AB with an acquisition cost of MNOK 22.4. Slots are included in other intangible assets.

Intangible assets with indefinite economic useful lives are tested for impairment annually. No impairment losses are identified for intangible assets in 2009.

Intangible assets with definite economic useful lives are tested for impairment if there are indicators of impairment identified.

The method used to estimate the recoverable amount is value in use, based on discounted cash flow analysis. The analysis reflects the cash flow projections in the financial business plan covering the next year approved by senior management. In addition, the calculation includes estimated cash flows for the next 5 years. Key assumptions used in the calculation are growth rates, operating costs, terminal value and discount rate. Cash flows beyond the 5 year period are extrapolated with a long term growth rate. Estimated cash flow and discount rate is after tax.

Note 9

Tangible assets

NOK 1 000

Buildings

Aircraft

Prepayment Boeing Contract

Equipment and fixtures

Financial lease

Total

Acquisition cost at 1 January 2008

Additions

Disposals

Acquisition cost at 31 December 2008

Acquisition cost at 1 January 2009

Additions

Disposals

Acquisition cost at 31 December 2009

Accumulated depreciation at 1 January 2008

Depreciation in 2008

Reversals in 2008

Accumulated depreciation at 31 December 2008

Accumulated depreciation at 1 January 2009

Depreciation in 2009

Reversals in 2009

Impairment 2009

Accumulated depreciation at 31 December 2009

Book value at 31 December 2008

Book value at 31 December 2009

Economic life

See below

See below

See below

See below

4-20 years

Depreciation plan

See below

See below

None

Linear

Linear

Residual value

MNOK 206.1

See below

See below

At 31 December 2009, the Company operated a total of 46 aircraft, 7 owned and 39 leased under operational leases. Leases are detailed in note 10.

Aircraft

Aircraft consist of purchased aircraft and the Company owns 7 aircraft at 31 December 2009. The residual value is MNOK 206.1 in total for all aircraft. The residual value is deducted from the depreciable amount of the remainder of the aircraft. The life expectancy of the aircraft is 25 years on 737-800 and 30 years on 737-300, and the economic life of the owned aircraft is 25 or 30 less the age of the aircraft at time of purchase.

Installations on leased aircraft

The installations on the leased aircraft include cabin interior modifications and other improvements to the aircraft after lease commencement. The capitalized value is depreciated over the remainder of the aircraft lease, which is between 1-8 years. Linear depreciation is applied and residual value is NOK 0. In 2009 several engines on the leased aircraft were in overhaul, and replacements costs for life limited parts were capitalized in the extent that the costs are improvements to the engines exceeding the requirements specified in the leasing contracts. These components are depreciated at a defined rate per engine cycle, limited to the remainder of the aircraft lease.

Spare parts

Spare parts consist of rotable and repairable parts for aircraft, and are depreciated over their useful life. Useful life of spare parts is between 4-10 years. Linear depreciation is applied and 25% of the acquisition cost is calculated as residual value.

Buildings

Buildings consist of 3 apartments in Berlin, purchased in 2007 for the purpose of housing crew and trainees stationed in Berlin on temporary basis. The asset is carried at acquisition cost. The residual value is estimated to equal the acquisition cost.

Prepayments on Boeing contract

In 2007, the Company entered into a purchase contract on 42 new 737-800 aircraft with Boeing Corporation, with an option on 42 additional aircraft. Two aircraft have been delivered in 2009, and 6 purchase options have been exercised. 46 aircraft will be delivered in the period 2010 until 2014. Up until delivery of the aircraft, the Company will make prepayments to Boeing, following a defined prepayment schedule. The Company capitalizes borrowing costs incurred for the construction of qualifying assets during the period of time that is required to complete the aircraft. Borrowing costs of MNOK 33.5 (2008: MNOK 30.5) have been capitalized during the year. Average capitalization rate of 7.66% (2008: 8.21%) was used. The Company applied fair value hedge accounting of unrecognized firm commitment for the three first quarters of 2008. The hedging relationship was terminated at 16 October 2008. The remaining fair value of the unrecognized firm commitment of MNOK 8.7 at the date of termination was capitalized as part of prepayments. Prepayments are not depreciated until the aircraft is delivered and ready for use. The value of prepayments is tested for impairment annually.

Financial lease assets

In 2009, the Company entered into lease agreements related to de-ice equipment and electronic flight bag equipment. The lease agreements are classified as financial leases as all risks and rewards are transferred to the Company after the end of the lease agreement.

Impairment of tangible assets

In 2009 and 2008, management determined that the total operations of the Company were its cash generating unit. Impairment testing of tangible assets are covered by impairment testing on the whole Company, see note 8 for details.

For information regarding assets pledged as collateral, see note 21.

Note 10

Leasing

The lease agreements on the Boeing 737 aircraft last for 3 to 8 years from the date of the agreement, with options for extension on certain agreements. 6 of the aircraft were delivered in 2002, 2 aircraft in 2003, 4 aircraft in 2004, 2 aircraft in 2005, 6 aircraft in 2006, 2 aircraft in 2007, 8 aircraft in 2008, and 9 aircraft in 2009. Renegotiations have resulted in extensions on some of the shorter leases. The contracts for 5 of the aircraft expire in 2010 and for 8 of the aircraft in 2011. The remaining contracts expire in 2012 or later.

Leasing costs expensed on aircraft lease within operational expenses was MNOK 604.0 in 2009 (2008: MNOK 422.4).

In addition, the Company leases 13 cars, and 9 properties in Oslo, Stavanger, Stockholm, Copenhagen, and Warsaw. Leasing costs related to cars and properties expensed in other operating expenses in 2009 was MNOK 21.2 (MNOK 19.1 in 2008).

Annual minimum rent on non-cancelable operating lease agreements per 31 December 2009 is as follows:

Nominal value 2009

Nominal value 2008

NOK 1.000

Aircrafts

Cars

Property

Total

Aircrafts

Cars

Property

Total

Within one year

Between 1 and 5 years

After 5 years

The aircraft’s minimum lease payments consist of ordinary lease payments, contractual payments for maintenance reserves and expensed deferred lease payments resulting from non- interest bearing deposits paid at inception of the lease agreement.

Note 11

Long-term receivables

NOK 1 000

Deposits

Intercompany receivable

Other long-term receivables

Total

The Company pays deposits on aircraft leases. In 2009, inter-company receivables relates to a long- term loan to Call Norwegian AS. Inter-company receivables in 2008 relates to loan to Norwegian Air Shuttle Sweden AB. Inter-company receivables are presented net against inter-company payables in the financial statements for each subsidiary. Receivables denominated in foreign currency are converted using the prevailing exchange rates on the balance sheet date.

Note 12

Inventories

NOK 1 000

Consumables

Modification equipment

Parts for heavy maintenance

Total

In 2009 and 2008, the Company bought parts removed from aircraft engines in relation with heavy maintenance. Such parts are held for sale and sold in secondary markets.

Charges for obsolete product in 2009 were MNOK 4.6 (2008: MNOK 0).

Note 13

Other Receivables

NOK 1 000

Prepaid costs

VAT refund

Reimbursements claims maintenance costs

Intercompany receivable

Other receivables

Total

Due dates

NOK 1 000

Within one year

After 1 year (note 11)

Total

Note 14

Shareholder's equity and shareholder information

At 31 December 2009, the share capital consists of the following share classes:

Number

Nominal value

Book value

Class A shares

0.1

Shareholder structure

The largest shareholders at 31 December 2009 were:

Owner-

Voting-

A-shares

ship

rights

HBK INVEST AS

AWILCO INVEST AS

FINNAIR PLC

SKAGEN KON-TIKI

SKAGEN VEKST

DNB NOR NORGE (IV) V

VITAL FORSIKRING ASA

HOLBERG NORGE

GOLDMAN SACHS INT. - EQUITY -

HOLBERG NORDEN

SEB ENKILDA ASA - EGENKAPITAL -

PENSJONSKASSEN STATOIL

STATE STREET BANK AN

STATE STREET BANK

KLP LK AKSJER

WARRENWICKLUND NORGE

SHB STOCKHOLM CLIENT

BARCLAYS CAPITAL SEC

DNB NOR SMB VPF

KLP AKSJENORGE

Other

Total number of shares

100%

100%

Shares and options directly or indirectly held by members of the Board of Directors, Chief Executive Officer and executive management:

Name

Title

Shares 1)

Options

Bjørn Kise 1)

Chairman

-

Ola Krohn Fagervoll

Board Member

-

Liv Berstad

Board Member

-

-

Marianne Wergeland Jenssen

Board Member

-

Linda Olsen

Board Member - Employee repr

-

-

Thor Espen Bråten

Board Member - Employee repr

Kenneth Utsikt

Board Member - Employee repr

Bjørn Kjos 2)

Chief Executive Officer

Frode E Foss

Chief Financial Officer

Hans-Petter Aanby

Chief IT Officer

-

Asgeir Nyseth

Chief Operating Officer

Daniel Skjeldam

Chief Commercial Officer

-

Anne-Sissel Skånvik

Senior Vice President HR and Organisation

-

Gunnar Martinsen

Senior Vice President Corporate Communications

1) Including shares held by related parties

2) Bjørn Kise holds 8.2 % of HBK invest AS

3) Bjørn Kjos holds 84.1 % of HBK Invest AS

Note 15

Equity

Share

Share prem.

Other paid-in

Other

Total

NOK 1 000

capital

reserve

equity

equity

equity

Equity at 01 January 2008

Share issue 2008

Expenses for share issue 2008, net of tax

Compensation expense for stock options

Net profit for the year

Equity 31 December 2008

Equity at 01 January 2009

Share issue 2009

Expenses for share issue 2009, net of tax

Stock options- share issue 2009

Compensation expense for stock options

Net profit for the year

Equity 31 December 2009

Note 16

Pensions

Defined benefit plan

All employees in Norway participate in a defined benefit plan. The benefits are mainly dependent on pension entitlement earned, salary at the time of retirement and the size of payments from the National Insurance. The liabilities are covered through Vital AS. The plan also covers a life insurance and disability insurance. Per 31 December 2009, a total of 1,465 employees were active members (2008: 1,238), and 30 (2008: 24) were on pension retirement. In addition, employees are included in the early retirement scheme (AFP), which is an unfunded plan for retirement right at the age of 62. The AFP is a multi-employer plan, where the Norwegian state pays a contribution of 40% of paid pensions for the retired persons older than 64 years. The Company’s payments of contribution to the plan are recognized as an expense in the income statement as incurred. The Company also pays 25% of the pension paid to own pensioners. This is an obligation for the Company that is not funded. The AFP obligation for the Company is shown under the heading “unfunded”. At 31 December 2009, 495 employees were active in the AFP pension plan (2008:421), and no employees had retired in the AFP pension plan

The Scheme is in compliance with the act on occupational pensions.

The pension obligation is calculated on linear accumulation. Changes in the obligation due to changes in and deviations from the estimated assumptions, are spread over the estimated average remaining vesting period for the part of deviations that exceeds 10% of the gross pension liability. Pension costs for the year for the Company’s defined benefit plans are calculated by independent actuaries and are based on information as of 1 January 2009. Management has made an assessment of changes in estimates and basis of calculation, these changes have no material impact on the pension cost for 2009.

Risk tables for death and disability are based on the most commonly used statistics in Norway, (K-2005) and (IR 02) respectively.

Pension expense (NOK 1 000)

Funded

Unfunded

Total 2009

Total 2008

Net present value of benefits earned

Interest cost on pension liability

Return on plan assets

Administrative expenses

Recognized actuarial gains/losses

Social security tax

Net pension expense defined benefit plans

NOK 1 000

Funded

Unfunded

Total 2009

Total 2008

Liabilities on earned pension rights

Calculated liability from future salary increases

Gross pension liabilities

Pension assets (at market value)

Estimate deviations not recognised

Social security tax

Net pension liabilities

Best estimate of actual return on pension funds previous year

5.40%

0.30%

Expected contribution to be paid next year

Expected benefits to be paid

5 163

5 000

Economic assumptions:

Discount rate

4.4%

3.8%

Expected growth in salaries

4.0%

3.8%

Expected growth in state pensions

4.0%

3.8%

Expected growth in pensions

1.3%

1.8%

Expected return on pension assets

5.6%

5.8%

Average turnover

2-10 %

0-10 %

The companys pension fund is invested in the following instruments:

Equity

9.8%

24.8%

Bonds

19.0%

21.5%

Money market funds

16.3%

7.5%

Hold-to-maturity bonds

36.4%

27.7%

Real estate

16.6%

15.6%

Various

1.20%

2.9%

Actuarial assumptions related to demographic factors and retirements are based on assumptions commonly used in insurance. The estimated utilization rate for the AFP scheme is 20%.

Historical Information

Present value of defined benefit obligation

Fair value of plan assets

Deficit/(surplus) in the plan

Experience adjustments on plan liabilities

Experience adjustments on plan assets

Note 17

Options

On 24 October 2007 the Board issued, in accordance with the authorization from the general meeting on 3 May 2007, 269,000 stock options to the Company’s management team. The stock options had an exercise price of NOK 173.07. All options expired in 2009.

The Board issued 561,301 stock options to employees on 10 September 2008, in accordance with the authorization from the extraordinary general meeting on 5 August 2008. The stock options have an exercise price of NOK 32.06, equal to the 30% discounted volume weighted share price during the period 26-29 August 2008. The stock options vest 1 October 2009, and may be exercised within a period of two years. The first 50% of the stock options can be exercised during determined periods of exercise. The second 50% of the stock options can be exercised only after the third quarter financial report for 2010. Stock options not exercised before 31 October 2010 is forfeited.

On 20 July 2009 the Board issued, in accordance with the authorization from the general meeting, 384,000 stock options to the management and key personnel. The stock options have an exercise price of NOK 67.00, equal to the average share price the last trading days before issue, plus 10%. The stock options may be exercised within a period of two years, whereas the first 50% of the stock options may be exercised on year after grant date and vest 20 July 2010.

The stock option program is expensed at fair value over the vesting period. Fair value calculations are conducted using Black & Scholes option pricing model.

The model takes into account market conditions for vesting in the assessment of fair value. The cost of fair value is expensed linear over the vesting period. The costs are offset in other paid in capital.

The following estimates are used in calculating fair value;

0%

0%

Expected volatility (%)

Historic volatility (%)

Risk free interest (%)

Expected lifetime (year)

2.25

1.12

Share price at grant date

59.50

39.00

Expected lifetime assumes that stock options are exercised at expiration. Expected volatility is based on the historical volatility over the most recent period that corersponds with the expected life of the option. There is a cap on the options granted in 2009 limiting the proceeds from the options to three times the participants’ annual base salary. Furthermore, the participants in the 2008 - program must cover the social security tax incurred for option gains where the share price exceeds NOK 64.12. These limitations are taken into account when calculating the option values.

The option program is expensed with MNOK 8.4 in 2009 and MNOK 6.2 in 2008.

Weighted avg.

Weighted avg.

Shares

exerc. Price

Shares

exerc. Price

Outstanding at the beginning of the period

77.8

173.1

Allocated

67.0

32.1

Exercised

32.1

-

-

Terminated

32.1

32.1

Forfeited

-

-

-

-

Expired

173.1

-

-

Vested options

32.1

173.1

Weighted average of fair value of options allocated in the period

15.4

13.3

Outstanding at the end of the period

50.9

77.8

Outstanding options

Vested options

Strike price (NOK)

Outstanding options by 31 December 2009

Weighted average remaining lifetime (yrs)

Weighted average strike price

Vested options by 31 December 2009

Weighted average strike price

0.00 - 35.00

0.8

32.1

32.1

35.00 -

1.8

67.0

-

-

Total

1.4

50.9

32.1

Outstanding options

Vested options

Strike price (NOK)

Outstanding options by 31 December 2008

Weighted average remaining lifetime (yrs)

Weighted average strike price

Vested options by 31 December 2008

Weighted average strike price

0.00 – 100.00

1.8

32.1

100.00 – 200.00

0.8

173.1

173.1

Total

1.5

77.8

173.1

In 2007 Norwegian Air Shuttle ASA implemented a “Share Savings Plan” whereby the employees, through monthly deductions in salary, purchased shares in the company. The company will match up to 50% of the employee’s savings amount, limited to NOK 6,000 per annum. In addition, there is a bonus share scheme, entitling employees to receive bonus shares 2 years after the initial share purchase at a one-for-ten ratio to initial shares purchased.

Fair value of the bonus shares are measured at the date of grant using Black & Scholes option pricing model. The fair value of the bonus shares and the corresponding estimated social security cost are expensed as personnel costs over the vesting period. Changes in estimated social security cost are expensed over the remaining vesting period. At 31 December 2009, MNOK 0.2 (2008: MNOK 0.20) was expensed related to the bonus share scheme.

Note 18

Provisions

NOK 1 000

Periodic maintenance on leased Boeing 737 airplanes

Total provisions

For leased airplanes, payments to maintenance funds held by the lessor are made. The accrued provisions in the accounts are estimated payments for periodic maintenance in excess of payments to the maintenance funds, and are provided on the basis of aircraft utilization. For some of the contracts, there is a degree of uncertainty about what kind of maintenance works are covered by the maintenance funds, and the provision for this increase in expenses for the Company is distributed over the period until the maintenance is performed.

Parts of the periodic maintenance will be performed in 2010, and MNOK 62.4 is classified as short term liability for periodic maintenance (2008: MNOK 0). The short term part of periodic maintenance is estimated based on planned maintenance in 2010. Amounts for 2008 are not restated.

Note 19

Other short term liabilities

NOK 1 000

Acccured holiday allowances

Accured expenses

Short term part of long term borrowings

Short term part of periodic maintenance

Inter-company liabilities

Other short term liabilities

Total

Note 20

Financial instruments

Assets

Liabilities

December 31 2009 (NOK 1 000)

Short term

Long term

Short term

Long term

Foreign exchange hedges fair value

Jet-fuel contracts

Total financial instruments

Assets

Liabilities

December 31 2008 (NOK 1 000)

Short term

Long term

Short term

Long term

Foreign exchange hedges fair value

Jet-fuel contracts

Total financial instruments

Other losses/(gains) - net

NOK 1 000

Financial assets at fair value through profit or loss

- Fair value losses

- Fair value gains

Net losses/(gains)

Ineffectiveness on fair value hedges

Losses and gains on financial asset and financial liabilities at fair value through profit or loss are classified as ‘other losses/(gains) – net’. Hedge ineffectiveness on fair value hedges are classified as financial items (note 6).

In 2009, forward commodity contracts are designated as hedging instruments according to cash flow hedge accounting. Unrealized changes in fair value on the hedging instruments are temporarily recognized in equity, net after tax, amounting to MNOK 23.7. The ineffective portion from fair value hedge accounting in 2008 is recognized as a gain of MNOK 358.3 within financial items.

Note 21

Assets pledged as collateral and guarantees

Prepayments on the first 10 aircraft in the purchase contract with Boeing (note 9) are pledged as collateral for the revolving credit facility (note 23).

The owned aircraft (note 9) is pledged as collateral for the aircraft financing (note 24).

There are no pledged collateral for the financial lease liability, but the financial lease asset is an actual security for the financial lease liability through fulfillment of the lease agreement

Bank guarantees are granted for leasing liabilities for aircraft, suppliers of fuel and handling services, as well as airport charges from airports and governments.

Book value of assets pledged as security (NOK 1 000):

Cash depot

Prepayment and aircraft in the Boeing Contract

Financial lease asset

Total

Note 22

Cash and cash equivalents

NOK 1 000

Cash in bank

Cash equivalents

Total

Restricted cash items are:

NOK 1 000

Guarantees for leases and credits from suppliers

Taxes withheld

Total restricted cash

Note 23

Remuneration to the Board of Directors and Executive Management

Remuneration to the board of Directors

Total remuneration paid to the Board in 2009 was MNOK 0.7. The Chairman of the Board, Bjørn Kise, received MNOK 0.1. There were no bonus or other form of compensation paid to the Board members in 2009.

Directive of remuneration to the CEO and Executive Management

The principles for leadership remuneration in Norwegian Air Shuttle ASA are to stimulate to a strong and lasting profit oriented culture. The total compensation level should be competitive, however, not market leading compared to similar organizations. The Board defines the remuneration to the CEO, and the guidelines for remuneration to the other Executive Management. The remuneration to the Board and Executive Management must not have negative effects for the Company, nor damage the reputation and standing of the Company in the public eye. There have been no changes in the guidelines or principles for management remuneration during the year. The actual remuneration in 2009 was consistent with the guidelines and principles.

Compensation to the Executive Management should primarily consist of fixed yearly salary with additional compensation such as a company car, free telephone, internet and newspapers, and standard pension and insurance plan. Executive Management is also part of the Company’s stock option plan.

The CEO does not receive other compensation in form of performance based salary or bonus. Executive Management can on an individual basis be awarded special compensation for profit enhancing projects, where compensation is set at a specific level of actual profit generated.

Executive Management is part of the Company’s collective pension plan for salary up to 12 G, which applies to all employees. Senior management has no special rights in the event of termination of employment.

Total compensation year 2009

NOK 1 000

Fee

Salary

Bonus

Other benefits **)

Total Compensation

Pension expense ***)

The Board of Directors

Bjørn Kise (chairman)

Erik Gunnar Braathen (deputy chairman until 26.11.2009)

Liv Berstad

Ola Krohn-Fagervoll

Marianne Wergeland Jenssen

Halvor Vatnar*)

Sissel Gjelstad Vårum*)

Monika Johansen*)

Total Board of directors

Executive Management

Bjørn Kjos (Chief Executive Officer)

a)

Frode Foss (Chief Financial Officer)

b)

Asgeir Nyseth (Chief Operating Officer)

c)

Hans-Petter Aanby (Chief IT Officer)

d)

Daniel Skjeldam (Chief Commercial Officer)

e)

Gunnar Martinsen (Senior Vice President HR and Organisation)

Anne-Sissel Skånvik (Senior Vice President Corporate Communications)

f)

Total executive management

*) For the employee representatives in the Board of Directors, only their fee for serving on the Board of Directors fee is stated.

**) Other benefits include company car, telephone, internet etc.

***) Pension expense reflects paid pension premium less employee contribution

a) Bjørn Kjos excercised share options in 2009 that has been reported as additional taxable income with NOK 466 830.

b) Frode Foss excercised share options in 2009 that has been reported as additional taxable income with NOK 384 039.

c) Asgeir Nyseth excercised share options in 2009 that has been reported as additional taxable income with NOK 385 039.

d) Hans-Petter Aanby excercised share options in 2009 that has been reported as additional taxable income with NOK 384 735.

e) Daniel Skjeldam excercised share options in 2009 that has been reported as additional taxable income with NOK 176 249.

f) Anne-Sissel Skånvik was appointed in 2009, replacing former Senior Vice President Corporate Communications.

Total compensation year 2008

NOK 1 000

Fee

Salary

Bonus

Other benefits **)

Total Compensation

Pension expense ***)

The Board of Directors

Erik Gunnar Braathen (chairman)

Bjørn Kise (deputy chairman)

Berit Slåtto Neerbye

Liv Berstad

Ola Krohn-Fagervoll

Halvor Vatnar*)

Sissel Gjelstad Vårum*)

Monika Johansen*)

Total Board of directors

Executive Management

Bjørn Kjos (Chief Executive Officer)

Frode Foss (Chief Financial Officer)

Asgeir Nyseth (Chief Operating Officer)

Hans-Petter Aanby (Chief IT Officer)

Daniel Skjeldam (Chief Commercial Officer)

Gunnar Martinsen (Senior Vice President HR and Organisation)

Anne Grete Ellingsen (Senior Vice President Corporate Communications)

Total executive management

*) For the employee representatives in the Board of Directors, only their fee for serving on the Board of Directors fee is stated.

**) Other benefits include company car, telephone, internet etc.

***) Pension expense reflects paid pension premium less employee contribution

Shares and options owned by senior managers are presented in note 14.

There are no loans outstanding, or guarantees made, to the Board of Directors or the Executive Management.

Auditor remuneration

NOK 1 000

Audit fee

Other audit related services

Tax advisory

Other services

Total

All amounts stated are without VAT.

Note 24

Borrowings

Nominal value (NOK 1 000)

Nominal value bond issue

Amortisation

Bond at 31 December at amortized cost

Effective interest rate for the year ended 31.12.2009 was 8.4% (2008:8.6%).

Nominal value facility agreement

Amortization

Facility at 31 December at amortized cost

Effective interest rate for the year ended 31.12.2009 was 9.5% (2008:5.6%).

Nominal value aircraft financing

Amortization

Aircraft financing at 31 December at amortized cost

Effective interest rate for the year ended 31.12.2009 was 5.4%.

Nominal value financial lease liability

Amortization

Financial lease liability at 31 December at amortized cost

Effective interest rate for the year ended 31.12.2009 was 0.6%.

Classification of borrowings

NOK 1 000

Non-current

Bond issue

Facility agreement

Aircraft financing

Financial lease liability

Total

Current

Bond issue

Facility agreement

Aircraft financing

Financial lease liability

Total (note 19)

Total borrowings

Total borrowings include secured liabilities of MNOK 993.2 (2008: MNOK 399.6) (collateralized borrowings).Collateralized borrowings are secured by prepayments on the Boeing Contract (note 9). Additionally, aircraft financing from PEFCO on new 737-800 aircraft are guaranteed by the Ex-Im Bank of the United States and the Ex-Im Bank of the United States has pledged collateral in the aircraft (note 9).

Bond issue

Interest rate of NIBOR 3 m and a risk premium equal to the spread at the balance sheet date.

The bond issue is an unsecured bond issue denominated in NOK and matures on 19 April 2010 for the current borrowings and on 17 December 2012 for the non-current borrowings. The coupon is NIBOR + 2% for the current borrowings and NIBOR +5.75% for the non-current borrowings.