INVESTOR RELATIONS. May (ENGLISH)

Transcription

1 INVESTOR RELATIONS May (ENGLISH)

2 INTRODUCTION MARKET ENVIRONMENT STRATEGY VALUE MANAGEMENT APPENDIX

3 INTRODUCTION

4 BUSINESS MODEL & CORE COMPETITIVENESS Travel Wholesale Business SUPPLIERS DISTRIBUTORS AIRLINES HOTELS TOURIST SPOTS TRANSPOTATION ETC. Purchase in large quantity Lowest GRP rate Largest Inventory Largest Allocation PRODUCT PLANNING & GROUND HANDLING Reservation Commission FRANCHISEES MOM&POPS PARTNERS Purchasing/ Reservation Providing offline service -Reservation counseling & managing -Travel information CLIENTS KEY 1. VOLUME 1) Everyday & Every Destination Departure Guarantee 2) Product Diversity 3) Higher Margin through Economy of Scale KEY 2. DISTRIBUTION CHANNELS B2C L Tour s 100 outlets vs. B2B Hanatour s 8,000 channels 4

5 HANATOUR SALES NETWORK * Supply group rate & group inventory * Channels Diverse Domestic & Overseas network * Product Pool Diverse Product Planning (Group Package & FIT) Global Partners Sales Sourcing Overseas Network GLOBAL DOMESTIC 8 Subsidiaries Offline Channels Franchisees Sales Sourcing HANATOUR PRODUCT POOL 21 Global Offices Mom & Pops Affiliates Sourcing Sales Online Hanatour.com Domestic Subsidiaries 5

6 DISTRIBUTION CHANNELS 2015 TARGET FOR DISTRIBUTION CHANNELS 1. Package Main Channel - Franchisees Number of Franchisees 1,300 2, FIT Main Channel HanaTour Website Up to 30% portion of total revenue by 2015 Number Revenue 6

7 REVENUE STRUCTURE SALES COST of SALES* Sales Revenue Agent Commission** PACKAGE offline 9 online 7 Future concentration on FIT FIT HOTEL OTHERS*** offline 10 online 4 online 9 online 9 GPM continuously improving to match package levels OPM improvements from increased online sales (less agent commission) * Major cost consists of air and destination management fees ** Agent commission in percentage of sales price. Included in revenue and deducted as OPEX. *** Others Local Activities( Half & Full Day Tours), Rent-a-car, Pass, Insurance, etc. Unit: Million won Air Ticket NO Sales revenue(zero commission) - Korean Air & Sky Team(Jan, 2010) / Asiana & Star Alliance(Apr, 2011) Air Ticket Revenue Agent Commission 9.5 bil Air Ticket Revenue 19,164 9,869 Agent Commission 14,942 7,047 Net Revenue 4,222 2,822 Additional Revenue - Volume Incentive 700 mil Volume Incentives 700 9,452 Total Revenue 4,922 12, VI 2011 VI 7

8 SALES BREAKDOWN STABLE PRODUCT PORTFOLIO TO MEET CHANGING MARKET ENVIRONMENTS Air Ticket 10.2% Airtel 2.9% Hotel 0.6% Air Ticket 16.1% Airtel 5.9% Hotel 1.9% Air Ticket 9.5% Airtel 5.2% Hotel 1.6% Air Ticket 8.5% Airtel 5.9% Hotel 2.3% Air Ticket 10.3% Airtel 15.4% Hotel 7.6% (E) 8

9 DESTINATION BREAKDOWN Volume Portion Revenue Portion Domestic, 13.5% America, 2.6% Europe, 6.2% South Pacific, 7.1% Domestic, 9.6% America, 2.4% Europe, 5.5% South Pacific, 6.2% Domestic, 15.5% America, 2.7% Europe, 6.5% South Pacific, 5.6% Domestic, 11.0% America, 2.6% Europe, 4.7% South Pacific, 5.8% Japan, Domestic, 3.8% America, 4.9% Europe, 13.2% South Pacific, 11.8% Domestic, 1.8% Domestic, 2.4% Domestic, 1.9% America, 5.2% America, 5.7% America, 5.7% Europe, Europe, 14.8% Europe, 12.7% 17.2% South pacific, 11.1% South Pacific, South Pacific, 12.2% Japan, 17.2% China, 27.0% Japan, 23.8% China, 27.1% Japan, 12.6% China, 27.0% 14.1% China, 26.2% Japan, 13.7% China, 19.3% Japan, 19.1% China, 20.9% 11.1% Japan, 9.1% China, 22.7% Japan, 8.6% China, 21.6% SE Asia, 26.4% SE Asia, 25.4% SE Asia, 32.3% SE Asia, 35.6% SE Asia, 33.3% SE Asia, 27.3% SE Asia, 31.7% SE Asia, 37.3% (~Apr) ~(Apr) 9

10 GROWTH & MARKET SHARE CONTINUOUS GROWTH OF HANATOUR S M/S OUTBOUND M/S [Unit: 10,000 PAX, %] OUTBOUND GROWTH [Base: number of passengers] 1,800(E) 30.0% ~ 2011 CAGR 1,230 1,067 1, % 13.7% 13.5% % % 8.5% 8.0% ,142 1, % 1, % 15.7% % 8.9% 9.6% (~Feb) 2015(E) HanaTour Mode Etc Hana M/S Mode M/S Total Korean Outbound Departure HanaTour Total Volume (Packages & Tickets) HanaTour Packages 26.3% 15.0% 15.9% 15.2% -10.8% -22.6% 34.4% 1.2% 5.4% 11.4% 23.9% 65.0% 28.8% -12.1% -19.7% 50.6% 8.5% 17.3% 66.7% 42.0% 56.1% 42.8% -11.8% -29.7% 66.8% 5.4% 19.4% (Source: KATA, KTO, KTA) 10

11 DOMESTIC NETWORK 13 DOMESTIC SUBSIDIARIES DIVERSIFIED & SPECIALIZED SUBSIDIARY TARGET MARKET SALES TYPE BUSINESS BACKPACK, ESL B2C & B2B B2C & B2B Revenue structure PILGRIMAGE B2C SALES SUPPORT DOMESTIC, 2030 B2C & B2B CRUISE, RENT-A-CAR B2C & B2B JE-JU DOMESTIC ONLY B2C & B2B SUPPLY OPERATION HANATOUR CALL-CENTER ONLINE, HOME SHOPPING B2C B2C Hanatour ITC OVERSEAS KOREAN/FOREIGNERS B2B & B2C MEDIA & PUBLISHING AD & MARKETING HANATOUR & EXTERNAL SUPPLIERS HANATOUR & ALLIANCES B2C (Online, Home Shopping, etc.) + B2B (HanaTour Original Distribution Channels) TRAVEL SHOPPING MALL ON/OFFLINE B2C Hotel & Air.com HOTEL & AIR SUPPLY B2C & B2B 11

12 OVERSEAS NETWORK 8 OVERSEAS SUBSIDIARIES & 21 GLOBAL OFFICES HanaTour EUROPE HanaTour U.S.A Bangkok Kota Kinabalu Cebu HanaTour CHINA HanaTour HONGKONG Manila Ko samui Boracay HanaTour SINGAPORE HanaTour TAIWAN Shanghai Bali Phuket HanaTour JAPAN HanaTour INT.JAPAN Palau Osaka Nagoya Kyushu Sydney Melbour ne Gold coast Auckland Christchu rch Guam Saipan Hawaii Achieving economies of scale based on the existing outbound business coming from HQ expanding business territories into inbound to global-bound Securing global inventories at competitive price, and providing them on HanaTour's own Global Distribution System, MAIDAS 12

13 MARKET ENVIRONMENT

14 MARKET ENVIRONMENT 1. CONTINUOUS GROWTH OF OUTBOUND MARKET Unit: 10,000 PAX Korean Outbound Market Outlook 1,800 1,067 1,230 1,097 Slow growth by Japan Earthquake 1,142 1,156 CAGR 11.7% Growth Under Healthy Economic Circumstances LACK OF DOMESTIC TOUR ATTRACTIONS Taiwan and UK with similar infrastructure have departure rate of 40% and 118% respectively INCREASING AIRSEAT SUPPLY Contraction Under Economic Crisis And Swine Flu Outbreak Increasing LCC (5 Korean LCC- JIN AIR, JEJU AIR, EASTAR JET, AIR BUSAN, TWAY AIR) Japan entering LCC Peach Air, Air Asia Japan, Jetstar Japan MARKET CONSOLIDATION Recovery by Pent-up Demand And Fast Growth Expected [Source: HanaTour Internal Data based on data of Statistical Offices, Tourism Bureaus of Korea, Taiwan, and United Kingdom] Million(E) Air Ticket - No Commission (Airlines prefer wholesalers for cost saving.) Small agencies depend more on big travel companies. 14

15 MARKET ENVIRONMENT 2. CONTINUOUS GROWTH OF FIT MARKET Yearly Growth of 10% until Million FIT 72.7% of Total Outbound Total 11.4 Mil. PKG 3.7 Mil. FIT 7.7 Mil, 67.8% FIT Growth Outlook FIT Growth of 69.3% Total 18.0 Mil. PKG 4.9 Mil. FIT 13.1 Mil, 72.7% No. of GIT 2010 No. of FIT INCREASING ONLINE SALES Yearly Growth of 12% until 2015 KRW 8.5 Trillion in Transaction 48.4% of Total Transactions [Source: KTO and HanaTour Internal Data] % Online Portion Growth Outlook % Growth 35.9% 37.7% Tril. 48.4% Online Transactions Online Portion 2015 [Source: Statistics Korea and HanaTour Internal Data] 15

16 MARKET ENVIRONMENT 4. GROWING DOMESTIC MARKET Domestic Market Size Growth 8.9% Mil. Domestic Travelers in 2015 Government s Stimulation and Development of Infrastructure to Boost Domestic Market 10.4% 89.6% 10.0% 9.5% 90.5% FIT-oriented Market a Blue Ocean for Major Travel Companies [Unit: PAX, %] [Source: KTO] FIT GIT 5. GROWING INBOUND MARKET Government-led Development - Developing Incheon Airport as a Hub of Northeast Asia [Unit: 10,000 PAX] 602 Inbound Market Outlook Government Target 11 Mil. - Increasing Government-Certified Accommodation Facilities (` `12 600) - Targeting to Increase Foreign Visitors to 11 Million by [Source: KTO]

17 STRATEGY

18 OUTBOUND STRATEGY Package & Ordered tour 1. Expanding Distribution Channels and brining up franchisees specialized in specific areas 1) Enhancing Franchisee sales by increasing support (HanaTour s portion of franchisee s revenue is 50% currently; Enhancing it up to 100% by 2012)) 2) Fostering franchisees specialized in specific product groups 2. Diversifying Product Mix and providing them on broad spectrum of market Offline Channels Franchisees Mom & Pops Sourcing Sales HANATOUR PRODUCT POOL ZEUS HanaPack Classic Ultra Luxury High-end HanaPack Casual Mid-to-High Affiliates Sourcing Sales Webtour Low-end Online Hanatour.com Domestic Subsidiaries 18

19 FIT & ONLINE STRATEGY HANATOUR.COM AS NO.1 TRAVEL PORTAL BY Website HanaTour.com as the main tool for FIT sales for sales efficiency 2. Provide FIT products not only to HanaTour s existing sales channels but also to subsidiaries and global partners Sales Global Partners Sourcing Overseas Network GLOBAL DOMESTIC 8 Subsidiaries Offline Channels Franchisees Sales Sourcing HANATOUR PRODUCT POOL 21 Global Offices Mom & Pops Affiliates ONLINE HANATOUR.COM Sourcing Sales Domestic Subsidiaries Direct sourcing system FIT Products (Hotels, Passes, etc.) Travel Contents 19

20 DOMESTIC/INBOUND STRATEGY STRENGTHEN DOMESTIC BARGAINING POWER FOR INBOUND BUSINESS 1. Investing on Hotels in downtown Seoul which mainly targets on Chinese and Japanese inbound market ( providing 1,000 hotel rooms by 2015) Global Partners GLOBAL 2. Strengthen domestic products sales to build bargaining power on domestic suppliers DOMESTIC Sales Sourcing Overseas Network 8 Subsidiaries Offline Channels Franchisees Sales Sourcing HANATOUR PRODUCT POOL 21 Global Offices Mom & Pops Affiliates Online Hanatour.com Sales Sourcing HANATOUR ITC Direct sourcing system Owned-Domestic Hotel Inventories Domestic product inventories 20

21 GLOBAL BUSINESS STRATEGY GLOBAL 1. Active inventory transactions with global partners Achieve global economies of scale by providing hotel inventories to worldwide partners via HanaTour s interfacing system Sales HANATOUR PRODUCT POOL Global Partners Sourcing Overseas Network 8 Subsidiaries 21 Global Offices GLOBAL LEVEL SYNERGY S ACHIEVED THROUGHOUT WORLD-WIDE DISTRIBUTION CHANNELS 2. Global Bound Business between Overseas networks Inter-subsidiary transaction for greater global economies of scale 21

22 2020 HANATOUR VISION 2020 Vision as a Leisure & Entertainment Group Leisure Travel service Hotels Air tickets Passes etc World Northeast Asia tourism-belt building Wide Travel 2.0 Web Travel Portal Entertainment Sports Friendly match. Concert shows Broadway shows Bolshoi Ballet. Exhibitions Auto Shows World Art Fair. Events Wedding events K-pop Fan tour events 22

23 VALUE MANAGEMENT

24 VALUE MANAGEMENT High profitability High future value 35% Payout Ratio Transparency Greatest Profit Sharing 24

25 APPENDIX

26 OVERVIEW COMPANY PROFILE SHAREHOLDERS BREAKDOWN Date of establishment CEO, Chairman CEO, President November, 1993 Sang Hwan, Park Hyun Syuk, Choi Domestic Institutiaonal Investors, 18.86% Emplyees, 4.64% Total number of employees 1,709 (Dec. 2011) Management, 20.68% Free Floats, 24.26% Paid-in capital Outstanding Shares W 5,8 bn (Dec. 2011) 11,616,185 (Dec. 2011) Foreign Institutional Investors, 25.19% Treasury, 6.38% Networks Domestic : 13 Overseas : 29 Based on Dec. 31,

27 BUSINESS PERFORMANCE (W bn, %) Description FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1Q Growth Sales Growth(%) Operating Income Profitability Ordinary Income Net Income ROE(%) Stability Current Ratio(%) Debt Ratio(%)

28 PRO-FORMA INCOME STATEMENT (W bn) Description FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1Q Gross Sales (Package) , , , , (Air-Ticket) Gross Operating Revenue Operating Expense Net Operating Income Pre-Tax Income Net Income

29 PRO-FORMA BALANCE STATEMENT Description FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 (W bn) FY12 1Q Current Assets Non-Current Assets Total Assets Current Liabilities Non-Current Liabilities Total Liabilities Capital Stock Additional Paid-in and Other Capital Retained Earnings Capital Adjustment Total Stockholders Equity Total Liabilities and Stockholders Equity

30 PRO-FORMA CASH FLOW (W bn) Description FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1Q 1. Cash Flows from Operating Activities 2. Cash Flows from Investing Activities 3. Cash Flows from Financing Activities 4. Increase (Decrease) in Cash (1+2+3) Cash at the Beginning of the Fiscal Period Cash at the End of the Fiscal Period

31 GROWTH Description FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 1Q Growth (%) Gross Revenue Recurring Profit N/A Net Profit N/A Ratio of Ordinary Income to Sales N/A ROA ROE Investment EPS (Won) 1,092 1,632 2,160 2, ,193 1, BPS (Won) 3,409 3,333 8,009 8,557 7,698 7,828 9,537 9,322 10,085 Pay-Out Ratio(%) N/A Net-Cash (W bn)

32 AWARDS LIST Mar. 2010, 1st Place for 6 consecutive years in tourism field in 2009 Brand Power of Korean Industry selected by KMAC Apr. 2009, 1st Place for 5 consecutive years in tourism field in 2009 Korean Brand Star selected by KMA Brand Stock Sep. 2008, 1st ranked in tourism field in Korea Standard-Service Quality Index by Korean standards association for 2 consecutive years Jun. 2008, Awarded Company with Excellent Corporate Structure hosted by Corporate Structure Improvement Support Center Jun. 2007, Awarded The 3 rd investor value awards chosen by Moneytoday Jan.2007, Ministry of Culture and Tourism The Biggest outbound travel company for 9 consecutive years Nov. 2006, Korea Investor Relations Association Korea IR Awards of the year st award of KOSDAQ Category Nov. 2006, Ministry of Commerce, Industry and Energy Korean Standard- Service Quality Index 1 st award Nov. 2006, The Korea Economic Daily Hankyung IR Awards 2006 Jul.2006, The Korea Economic Daily Hankyung Customer Awards Travel Company Category Jul.2006, The Korea Economic Daily Hankyung Customer Awards Travel Company Category Jun. 2006, Money Today The 2 nd Investor Value Awards Jun. 2006, Money Today The 2 nd Investor Value Awards 2005, Korea Investor Relations Association Korea IR Awards of the year 2005 KOSDAQ Category Oct.2010, Awarded The 8 th investor Value Awards chosen by Moneytoday 32

33 THANK YOU