Air China Limited 2015 First Quarter Results April 2015 Under PRC GAAP, unaudited
Agenda Part 1 Part 2 Part 3 Results Highlights Business Performance Financial Review
Part 1 Results Highlights
Results Highlights Key Financial Metrics 1Q2015 Y-O-Y Change Turnover (RMB million) 25,261.5 3.45% Operating Expenses (RMB million) 19,549.1-5.71% Profit from Operations (RMB million) 2,282.5 3168.81% Profit Attributable to Shareholders (RMB million) 1,675.2 1707.01% EPS (RMB/share) 0.14 1300.00% Key Operational Metrics 1Q2015 Y-O-Y Change ASK (million) 50,630.9 10.20% RPK (million) 40,621.1 8.14% ATK (million) 7,418.5 14.27% RTK (million) 5,085.3 12.53% Passenger Load Factor (%) 80.2-1.53pts ATK Load Factor (%) 68.6-1.06pts 4
Part 2 Business Performance
Air China Passenger Services 1Q2015 Y-O-Y Change ASK (Million) 36,094.0 9.65% RPK (Million) 28,706.5 6.66% Passengers Carried (Thousand) 13,800.0 5.61% Load Factor (%) 79.5-2.23pts 6
Air China Passenger Services 1Q2015 ASK (Million) Y-O-Y Change RPK (Million) Y-O-Y Change Load Factor (%) Y-O-Y Change Domestic International - Europe - North America - Japan and Korea South East Asia and Other Regions Regional 20,287.1 6.41% 16,517.6 4.93% 81.4-1.15pts 14,448.4 14.48% 11,162.2 9.84% 77.3-3.27pts 5,224.0 15.66% 4,044.8 13.08% 77.4-1.77pts 4,309.3 10.00% 3,334.5 1.46% 77.4-6.51pts 1,742.5 25.46% 1,285.5 25.70% 73.8 0.14pts 3,172.6 13.41% 2,497.4 9.72% 78.7-2.64pts 1,358.4 10.26% 1,026.7 1.71% 75.6-6.35pts 7
Business Developments Added seven new aircraft, comprised of six B737 and one A319, and also retired two aircraft, one B737 and one A340. As of end March, the Group operated a fleet of 339 aircraft. Launched several international and domestic new routes, including Tianjin- Wuhan-Chiang Mai, Chengdu-Colombo, Shanghai-Harbin, Chongqing- Fuzhou etc. As of end March, the Company operated a total of 328 passenger routes. Optimizing passenger profile, the revenue from premium classes increased by 10% year-on-year to 2.54 billion RMB. Enhanced e-commerce capability, e-commerce revenue was 3.27 billion RMB, representing a 28% year-on-year increase. Became the first domestic airline to offer live TV broadcasts on an aircraft. 8
Air China Cargo 1Q2015 Y-O-Y Change AFTK (million) 2,643.9 22.06% - Freighter AFTK (million) 764.8 62.06% RFTK (million) 1,371.7 27.40% - Freighter RFTK (million) 632.3 64.98% Tonnage Carried (tonnes) 306,044.2 9.35% - Freighter Tonnage Carried (tonnes) 97,835.2 26.46% Cargo and Mail Load Factor (%) 51.9 2.17pts - Freighter Load Factor (%) 82.7 1.46pts 9
Shenzhen Airlines 1Q2015 Y-O-Y Change ASK (million) 12,579.7 11.52% RPK (million) 10,543.4 12.58% ATK (million) 1,308.0 11.99% RTK (million) 1,039.1 11.66% Passengers Carried (thousands) 6,923.4 11.06% Passenger Load Factor (%) 83.8 0.78pts ATK Load Factor (%) 79.4-0.24pts 10
Air Macau 1Q2015 Y-O-Y Change ASK (million) 1,334.5 6.07% RPK (million) 870.2-0.03% ATK (million) 154.6 6.24% RTK (million) 92.3-0.08% Passengers Carried (thousands) 511.6-0.82% Passenger Load Factor (%) 65.2-3.98pts ATK Load Factor (%) 59.7-3.78pts 11
Part 3 Financial Review
Financial Overview (RMB Million) 1Q2015 1Q2014 Y-O-Y Change Turnover 25,261.5 24,418.8 3.45% Operating Expenses 19,549.1 20,732.7-5.71% Loss From Change in Fair Value 2.9-0.2 1516.67% Investment Income 190.4 44.1 331.33% Profit/(Loss) from Operations 2,282.5-74.4 3168.81% Profit Before Tax 2,405.9 141.7 1597.70% Net Profit 1,895.1 92.7 1943.70% Profit Attributable to Shareholders 1675.2 92.7 1707.01% ROE (%) (Weighted Average) 3.03 0.17 2.86pts EPS (RMB/share) 0.14 0.01 1300.00% 13
Profit Review RMB (Millions) 3000 2500 + 1,184 + 234-2 + 146-93 - 49 2,406 2000 1500 1000 + 843 500 142 0 14
Interest Bearing Debt (RMB Millions) As of 31 March 2015 % End of 2014 % USD 83,473 73.27 83,334 72.81 RMB 29,519 25.91 30,164 26.35 EUR 130 0.11 146 0.13 JPY 812 0.71 814 0.71 TOTAL 113,934 100.00 114,458 100.00 As of 31 March 2015 End of 2014 27.80% 29.87% 72.20% 70.13% Short term Interest Bearing Debt Long term Interest Bearing Debt 15
Appendix Other Financial and Operational Data
1. Fleet the Group Subtotal Owned 31 March 2015 Delivery Finance Lease Operating Lease Average Age 2015 2016 2017 A319 40 25 9 6 9.63 3 - - A320/A321 164 61 65 38 4.73 16 17 17 A330 49 10 18 21 4.52 4 - - A340 3 3 - - 16.24 - - - B737 231 105 56 70 6.38 37 14 16 B747 8 8 - - 9.96 3 - - B757 2 2 - - 22.62 - - - B777 30 14 13 3 6.57 - - - B787 - - - - - - 5 5 B747F 3 3 - - 12.78 - - - B757F 4 4 - - 18.60 - - - B777F 6 3 3-0.79 3 - - Business Jet 9 1-8 3.88-2 - Total 549 239 164 146 6.15 66 38 38 *Wet lease aircraft excluded in calculation of average ages 17
2. Fleet Air China Subtotal Owned 31 March 2015 Delivery Finance Lease Operatin g Lease Average Age 2015 2016 2017 A319 31 22 9-9.38 3 - - A320/A321 87 16 60 11 4.12 5 10 11 A330 49 10 18 21 4.52 4 - - A340 3 3 - - 16.24 - - - B737 129 51 33 45 6.49 22 14 14 B747 8 8 - - 9.96 3 - - B757 2 2 - - 22.62 - - - B777 30 14 13 3 6.57 - - - B787 - - - - - - 5 5 Total 339 126 133 80 6.12 37 29 30 *Wet lease aircraft excluded in calculation of average ages 18
3. Consolidated Balance Sheet (Condensed) (RMB Millions) As of 31 March 2015 End of 2014 Change Non-current Assets 141,800 139,608 1.57% Current Assets 19,516 20,490-4.75% - Cash and Bank Balances 9,038 9,735-7.16% Total Assets 210,694 209,643 0.50% Current Liabilities 57,207 60,472-5.40% Non-current Liabilities 92,062 89,699 2.63% Total Liabilities 149,270 150,171-0.60% Total equities attributable to owners of the parent company 56,070 54,340 3.18% 19
4. Consolidated Cash Flow Statement (Condensed) (RMB Millions) 1Q2015 1Q2014 Y-O-Y Change Net Cash Flow from Operating Activities 5,903 3,731 58.22% Net Cash Flow from Investing Activities -3,547-4,538 21.84% Net Cash Flow from Financing Activities Net Increase/(Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at the beginning of the period Effect of Exchange Rate Changes on Cash and Cash Equivalents Cash and Cash Equivalents at the End of the Period -3,227-3,660 11.82% -877-4,417 80.16% 9,660 14,762-34.56% -5 50-110.41% 8,783 10,345-15.09% 20
Investor Relations - Beijing Fan Heyun Tel: +8610-6146 2799 Fax: +8610-6146 2805 E-mail: fanheyun@airchina.com Cao Yu Tel: +8610-6146 2788 Fax: +8610-6146 2805 E-mail: caoyu@airchina.com Website: www.airchina.com.cn