ANA Holdings Inc. Financial Results FY2014 First Quarter. Kiyoshi Tonomoto. July 30, Senior Executive Vice President and CFO ANAHD2014 1

Transcription

1 ANA Holdings Inc. Financial Results FY2014 First Quarter Kiyoshi Tonomoto Senior Executive Vice President and CFO July 30,

2 Contents Financial Results FY2014 First Quarter Highlights FY2014 First Quarter Business Environment of 1st and 2nd Quarter of FY2014 Consolidated Financial Summary Income Statements Consolidated Financial Position Consolidated Statements of Cash Flow Results by Segment Air Transportation Business Operating Revenues and Expenses Changes in Operating Income Domestic Passenger Operations International Passenger Operations Domestic Cargo Operations International Cargo Operations LCC Operations Other Segments excluding Air Transportation Business P.3 P.4 P.5 P.6 P.7 P.8 P.9 P.10 P P P.17 P19-20 P.21 P.22 Supplemental Reference Fuel and Exchange Rate Composition of International Passengers Results by Destination Composition of International Cargo Results by Destination Aircraft in Service P.24 P.25 P.26 P.27 2

3 Highlights of FY2014 First Quarter Highlights of Financial Results FY14 1st Quarter and FY13 Turned to surplus in FY14 1st quarter from deficit in FY13 1st quarter on operating income. FY2014 1st Quarter(Consolidated Results) Op. Income : 00.3Bn (YoY +5.9Bn) Net Income : 03.4Bn (YoY +10.1Bn) EBITDA : 32.7Bn (YoY +4.4Bn) FY2013 FY ( Billion) Op. Income Net Income EBITDA 1Q 2Q 3Q 4Q 1Q 3

4 Business Environment of 1st and 2nd Quarter of FY2014(Compared to the Last Year) FY13 1st Quarter (Issues) FY14 1st Quarter (Review) FY14 2nd Quarter (Forecast) Resolved Issues B787 operation suspension Decline demand on China routes Resume operation from June 2013 Recovery in demand since last summer Additional Deployment International Passenger Operations Expand network in the Tokyo metropolitan area Publication to the market Accelerate penetration Stagnant demand in LCC business Start operation of Vanilla Air (Dec 2013) Domestic Passenger Operations Control and optimize demand / supply in ASK Sudden Yen depreciation FY13 1Q -5.6Bn Flexible currency hedging Implementing Countermeasures Consolidated Op. Income(YoY) Approx. +6.0Bn Increased FY14 1Q 0.3Bn Deferment of raising domestic fare Implement raising domestic fare LCC(Vanilla Air) Launch new destination (from July) Increase revenues steadily during high demand season Air transportation business makes significant contribution to ANA group s earnings 4

5 Consolidated Financial Summary Income Statements 1Q/FY13 1Q/FY14 Difference Operating Revenues Operating Expenses Operating Income Op. Margin (%) Non-Op. Gains/Losses Recurring Income Extraordinary Gains/Losses Net Income Net Income Before Minority Interests Other Comprehensive Income Comprehensive Income Revenue of fuel which is resold to airlines outside the group is offset by its purchasing cost and the net amount is recorded as net revenue, effective from FY14 1Q. Related figures for FY13 have been also corrected by applying this new accounting change. ( Billion) 5

6 Consolidated Financial Summary Consolidated Financial Position Mar 31, 2014 Jun 30, 2014 Difference Assets 2, , Shareholders' Equity Ratio of Shareholders Equity (%) pts Interest Bearing Debts Debt/Equity Ratio (times) * Net Interest Bearing Debts ** ( Billion) * D/E ratio when including off-balanced lease obligation of billion ( 121.0billion as of the end of March, 2014) is 1.3times. (1.3times as of the end of March, 2014) ** Net Interest Bearing Debts: Interest Bearing Debts - (Liquid Assets(Cash on Hand and in Banks+Marketable Securities)) 6

7 Consolidated Financial Summary Consolidated Statements of Cash Flow 1Q/FY13 1Q/FY14 Difference Cash Flow from Operating Activities Cash Flow from Investing Activities Cash Flow from Financing Activities Net Increase or Decrease Cash and Cash Equivalent at the beginning Cash and Cash Equivalent at the end ** Depreciation and Amortization Capital Expenditures Substantial Free Cash Flow (excluding periodic/negotiable deposits of more than 3 months) EBITDA* EBITDA Margin (%) pts * EBITDA:Op. Income+Depreciation ** Includes effect on cash and cash equivalents with change of scope of consolidation. ( Billion) 7

8 Consolidated Financial Summary Results by Segment 1Q/FY13 1Q/FY14 Difference Air Transportation Airline Related Travel Services Revenues Trade and Retail Total for Reporting Segments Others Adjustment Total Air Transportation Airline Related Travel Services Operating Income Trade and Retail Total for Reporting Segments Others Adjustment Total Accounting change is applied as shown on footnote of P.5. ( Billion) 8

9 Air Transportation Business Operating Revenues and Expenses 1Q/FY13 1Q/FY14 Difference Domestic Passengers Operating Revenues International Passengers Cargo and Mail Others Total Fuel and Fuel Tax Landing and Navigation Fees Aircraft Leasing Fees Depreciation and Amortization Operating Expenses Aircraft Maintenance Personnel Sales Commission and Promotion Contracts Others Total Op.Income Operating Income EBITDA EBITDA Margin (%) pts * EBITDA: Op. Income + Depreciation, includes inactive fixed asset depreciation expenses Accounting change is applied as shown on footnote of P.5. ( Billion) 9

10 Changes in Operating Income ( Billion) FY13 1Q Op. Income -6.5 Domestic Passenger +0.9 International Passenger Cargo & Mail +5.4 Progress of Cost Restructuring Air Transportation Business Other Revenue +3.3 Increase in Revenues Revenue from contracted Maintenance and handling Mileage/Card LCC Business, etc. Full Year Target Other Expense -2.3 Increase in Expenses st Quarter Results Depreciation except Aircraft Maintenance, etc. Sales-Linked +7.9 vs. Target Productivity Improvement etc % Appropriate Investment % Appropriate Sales % Operational Innovation etc % Total % Increase in Profit +5.3 Operation-Linked Commission Advertisement In-flight service Ground Handling, etc. Fuel & Fuel Tax Landing/Navigation Fees Depreciation Personnel Contracts, etc. FY14 1Q Op. Income -1.1 Accounting change is applied as shown on footnote of P.5. 10

11 Air Transportation Business Domestic Passenger Operations 1Q/FY13 1Q/FY14 % Y/Y Available Seat Km (million) 14,909 14, Revenue Passenger Km (million) 8,495 8, Passengers (thousands) 9,690 9, Load Factor (%) pts* Passenger Revenues ( Billion) Unit Revenue ( /ASK) Yield ( /RPK) Unit Price ( /Passenger) 15,209 14, *Difference (Not including Vanilla Air / ex-air Asia Japan) 11

12 Air Transportation Business Trends in Domestic Passenger Operations FY14 1Q Revenue Change Factors (Not including Vanilla Air / ex-airasia Japan) Trends of passengers by Segment and Unit Price Exceeded revenues year-on-year by enhancing and capturing demand. Increased demand by proceeding of promotional fare successfully. Passenger YoY (%) Unit Price(Index:FY12 1Q=100) Main Passenger Factors B787 Resumption of Operation Competition with other airlines Demand Stimulation Measures, etc Main Unit Price Factors Competition with other airlines Passenger Class Mix Changes, etc Q Passengers by segment(yoy) Individual : - 0.0% Unit Price(right axis) Promotional Fare :+ 15.1% Total(left axis) Package/Travel :+ 2.5% Individual(left axis) Promotional Fare(left axis) Package/Travel(left axis) FY13 1Q FY14 1Q ( Billion) 12

13 Air Transportation Business International Passenger Operations 1Q/FY13 1Q/FY14 % Y/Y Available Seat Km (million) 9,805 12, Revenue Passenger Km (million) 6,963 8, Passengers (thousands) 1,436 1, Load Factor (%) pts* Passenger Revenues ( Billion) Unit Revenue ( /ASK) Yield ( /RPK) Unit Price ( /Passenger) 62,334 64, *Difference (Not including Vanilla Air / ex-air Asia Japan) 13

14 Air Transportation Business Trends in International Passenger Operations FY14 1Q Revenue Change Factors Increased revenues steadily with expansion of ASK. (Not including Vanilla Air / ex-airasia Japan) Trends of ASK, RPK and Yield Enhanced both capturing demand and improving yield. Index:FY12 1Q=100 Main Passenger Factors Main Unit Price Factors 160 ASK increase Demand Trend FSC Marketing Measures, etc Yield Management Passenger class / route mix changes Foreign Exchange FSC 座席キロ ASK (ASK) 旅客キロ RPK (RPK) イールド Yield FY13 1Q FY14 1Q ( Billion) 60 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY12 FY13 FY14 14

15 Air Transportation Business Trends in International Passenger Operations (Not including Vanilla Air / ex-airasia Japan) Trends of ASK, RPK and L/F by Destination 200 North America Europe Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 30 FY12 FY13 FY14 FY12 FY13 FY Asia China Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 30 FY12 FY13 FY14 FY12 FY13 FY14 Left Axis(Index:FY12 1Q=100) :ASK :RPK Right Axis(Unit:%) :L/F 15

16 Air Transportation Business Trends in International Passenger Operations (Not including Vanilla Air / ex-airasia Japan) Comparison of Traffic Results year-on-year by Airport 15,000 All Routes 3,000 Europe Image showing L/F on Major Routes 12, % 2, % +13% 1, Haneda Munich Frankfurt London Narita 9, % 0 FY13 1Q FY14 1Q 60 Paris Ave. L/F: approx.65% Düsseldorf Paris Asia 6,000 3,000 4,500 3,000 1, % +24% Haneda 80 Singapore 70 Narita Manila Bangkok Singapore Ave. L/F: approx.70% 0 0 FY13 1Q FY14 1Q Left Axis(Unit:Million) :RPK of Haneda Right Axis(Unit:%) :L/F by destination 60 FY13 1Q FY14 1Q :RPK of Narita :RPK of others :ASK total in all routes Bangkok Manila Hanoi Jakarta Jakarta 16

17 Air Transportation Business Domestic Cargo Operations 1Q/FY13 1Q/FY14 % Y/Y Available Ton Km (million) Revenue Ton Km (million) Domestic Cargo Revenue Ton (thousand tons) Load Factor (%) pts* Cargo Revenues ( Billion) Unit Revenue ( /ATK) Unit Price ( /kg) Available Ton Km (million) Domestic Freighter Included Above Revenue Ton Km (million) Revenue Ton (thousand tons) Load Factor (%) Cargo Revenues ( Billion) Unit Revenue ( /ATK) Unit Price ( /kg) *Difference 17

18 Air Transportation Business International Cargo Operations 1Q/FY13 1Q/FY14 % Y/Y Available Ton Km (million) 1,025 1, Revenue Ton Km (million) International Cargo Revenue Ton (thousand tons) Load Factor (%) pts* Cargo Revenues ( Billion) Unit Revenue ( /ATK) Unit Price ( /kg) Available Ton Km (million) International Freighter Included Above Revenue Ton Km (million) Revenue Ton (thousand tons) Load Factor (%) pts* Cargo Revenues ( Billion) Unit Revenue ( /ATK) Unit Price ( /kg) *Difference 18

19 Trends in International Cargo Operations Air Transportation Business FY14 1Q Revenue Change Factors Revenues increased by capturing demand of trilateral cargo traffic. Trends of Traffic Results and Unit Price Exceeded market trend continuously by capturing demand. Main Passenger Factors ATK Increase Marketing Measures, etc Main Unit Price Factors FSC Foreign Exchange Sales Rate (YoY:%) (*) Japan Aircargo Forwarders Association ANA ANA 全体貨物単価 Unit Price ANA 全体貨物重量 Total Cargo Results (including trilateral logistics) ANA 日本輸出入重量 Export/Import 日本輸出入重量 Japan Export/Import ( 参考 (Reference*) *) FY13 1Q Cargo Only. Not including postal mail FY14 1Q ( Billion) -20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY12 FY13 FY14 19

20 Air Transportation Business LCC Operations Domestic and International Passenger Operations in Total 1Q/FY13* 1Q/FY14 % Y/Y Available Seat Km (million) Revenue Passenger Km (million) Passengers (thousands) Load Factor (%) pts** * Results of ex-air Asia Japan * *Difference Aircraft Procurement Plan Aircraft in Service:6 aircraft (as of end of June, 2014) End of FY14:8 aircraft During FY15:Approx.10 aircraft New destination: Narita=Amami Oshima (from 1 July, 2014) Flight awards of Vanilla Air is in service for ANA Mileage Club Members (from 1 July, 2014) Route Network (As of 1 July, 2014) 20

21 Other Segments excluding Air Transportation Business Results by Segment Airline Related Travel Services ( Billion) 1Q/FY13 1Q/FY14 Difference 1Q/FY13 1Q/FY14 Difference Revenues Op. Income Depreciation and Amortization EBITDA* EBITDA Margin (%) pts pts Trade and Retail Others ( Billion) 1Q/FY13 1Q/FY14 Difference 1Q/FY13 1Q/FY14 Difference Revenues Op. Income Depreciation and Amortization EBITDA* EBITDA Margin (%) pts pts * EBITDA: Op. Income + Depreciation 21

22 Intentionally Blank 22

23 Supplemental Reference 23

24 Supplemental Reference Fuel hedge 100% 80% 60% 40% 20% 0% FY2014 Earnings Forecast Assumptions Dubai Crude Oil :US$107/bbl Kerosene:US$125/bbl 75% 40% Hedge Ratio (As of 30 Jun, 2014) 20% 5% FY14 FY15 FY16 FY17 (Not including hedge impact) Fuel Cost US$1 change per barrel Non hedge Impact of Oil Price 2.8Bn FY14(E) Currency Hedge Expenses in Foreign Currency (Excluding Fuel) Revenues in Foreign Currency (Int l Passenger) (Int l Cargo) FY2014 Earnings Forecast Assumptions US$: 105/$ 100% 80% 75% Hedge Ratio (As of 30 Jun, 2014) Expenses 60% 45% in Foreign Scope 40% Currency of 20% (Fuel) Hedge 20% 5% 0% FY14 FY15 FY16 FY17 24

25 Supplemental Reference Composition of International Passenger Results by Destination 1Q/FY14 Composition Difference North America Europe Revenue China Asia Resort North America Europe ASK China Asia Resort North America Europe RPK China Asia Resort (Not including Vanilla Air / ex-air Asia Japan) 25

26 Supplemental Reference Composition of International Cargo Results by Destination 1Q/FY14 Composition Difference North America Europe Revenue China Asia Others North America Europe ATK China Asia Others North America Europe RTK China Asia Others

27 Supplemental Reference Aircraft in Service Mar 31, 2014 Jun 30, 2014 Change Owned Leased Wide-Body Mid-Body Narrow-Body Regional Boeing (Domestic) Boeing ER Boeing Boeing ER Boeing Boeing Boeing ER Boeing Boeing F Boeing BCF Airbus A Boeing Boeing ER Boeing Boeing Bombardier DHC (Q400) Bombardier DHC (Q300) Total * Including 6 aircraft of A operated by Vanilla Air. ** As of June 30, 2014, excluding leased aircraft outside group (13 as of end of FY14 1Q, 14 as of end of FY13) 27

28 (MEMO) 28

29 (MEMO) 29

30 (MEMO) 30

31 ANA Group Corporate Philosophy Mission Statement ANA Group Safety Principles Built on a foundation of security and trust, the wings within ourselves help to fulfill the hopes and dreams of an interconnected world. Safety is our promise to the public and is the foundation of our business Safety is assured by an integrated management system and mutual respect. Safety is enhanced through individual performance and dedication Management Vision It is our goal to be the world s leading airline group in customer satisfaction and value creation. 31

32 Cautionary Statement Forward-Looking Statements. This material contains forward-looking statements based on ANA Holdings Inc. s current plans, estimates, strategies, assumptions and beliefs. These statements represent the judgments and hypotheses of the Company s management based on currently available information. Air transportation, the Company s core business, involves governmentmandated costs that are beyond the Company s control, such as airport utilization fees and Fuel taxes. In additions, conditions in the markets served by the Company are subject to significant fluctuations. It is possible that these conditions will change dramatically due to a number of factors, such as trends in the economic environment, aviation fuel tax, technologies, demand, competition, foreign exchange rate fluctuations, and others. Due to these risks and uncertainties, it is possible that the Company s future performance will differ significantly from the contents of this material. Accordingly, there is no assurance that the forward-looking statements in this material will prove to be accurate. Thank you. This material is available on our website. Investor Relations IR Library Presentations Investor Relations, ANA Holdings Inc. Phone +81-(0) ir@anahd.co.jp 32