ANA 2012-13 Corporate Plan All Nippon Airways February, 2012 ANA2012 1
Contents I. ANA 2012-13 Corporate Plan II. ANA 2012-13 Corporate Plan Targets Overview Business Environment P.4 P.5-6 Consolidated Profit Plan Profit Targets by Segment Air Transportation Business P.20 P.21 P.22-23 Fiscal 2012-13 Corporate Plan Profit Plan Capital Expenditures & Cash Flows P.7 P.8 Billion Cost Reduction Initiatives 1 in Unit Cost Reduction Initiatives Revenue Plan by Segment Consolidated Balance Sheet P.24 P.25-26 P.27-29 P.31 Strategic Pivot Points 1. Holding Company System P.9 P.10 Consolidated Cash Flows Fuel Price and Exchange Rate P.32 P.33 2. Billion in Cost Reductions P.11 3. Multi-Brand Strategy P.12-13 Air Transportation Business P.14-16 Management Financial Targets P.17 Five Years Earnings and Plan Overview P.18 ANA2012 2
I. ANA 2012-13 Corporate Plan ANA2012 3
Overview Management Topics Fiscal 2012-2013 2013 Corporate Plan and Medium-Term Targets Transition to Holding Company System (scheduled for April 1, 2013) Ongoing Topics for Current Strategy Enhance managerial efficiency through maximum utilization of management resources Establish solid revenue foundations resistant to volatility Continue disciplined cost reduction Reinforce financial position Restructure group businesses Fiscal 2012-2013 2013 Corporate Plan (Phase I) Topics Foundation for Growth Strategies Reinforcement of Financial Position Group Reorganization Fiscal 2014 and Beyond (Phase II) Future Topics Business Strategies Supporting Growth Ability to Deal with Change in the Market Final Goals for Financial Position Global marketing to take the opportunity of Haneda internationalization and ATI JV Transition to Holding Company System in April 2013 Raise productivity through maximum utilization of the assets and personnel Enhance fundamental operations and service quality Topics Plan for Optimal Group Corporate Strategy Efficient/Flexible Management ANA2012 4
Business Environment / Economic Outlook and Air Transportation Demand Macroeconomic outlook is cloudy; looking to turn increasing latent air transportation demand to growth opportunities Asia/China still in high growth; leading the global economy Stunted growth in Europe/U.S. Strong demand for international routes for Japan in/outbound Recovery from disaster in Japan to lead to steady economic growth for the time being Overall air transportation demand has matured; will lead to higher competition Potential to stimulate latent demand through LCC business 120 110 Outlook for Global Economic Growth and Outlook for Japan Economic Growth and International Air Transportation Demand Domestic Air Transportation Demand 130 110 (2010 Actual=) 120 105 (2010 Actual=) 110 110 105 95 95 90 90 80 90 85 90 85 80 (Left Axis) (Right Axis) CY10 CY11E CY12E CY13E Int'l Passengers Int'l Cargo World U.S. Europe Asia China 70 80 CY10 CY11E CY12E CY13E (Left Axis) Domestic Passengers Domestic Cargo (Right Axis) Japan 80 Passenger/cargo (int l = Japan in/outbound) demand based on estimates published in MLIT and JNTO disclosures. Estimated GDP growth based on estimates published IMF WEO Update January 2012. Asia (Developing Asia) figures include China. ANA2012 5
Business Environment / Air Transportation Industry Trends Strengthen management foundations in expectation of expanded capacity acity at Narita and Haneda FY2011 FY2012 FY2013 FY2014 FY2015 International in/outbound flights at Narita and Haneda (number/year) Narita (220,000) Haneda (Daytime30,000 /Night 30,000) Narita+30,000 (250,000) Narita+20,000 (270,000) Haneda+30,000 (Daytime 60,000) Narita+30,000 (300,000) Pacific JV JV Euro JV JV Full Full Incorporation for for the the B787 AirAsia Japan/Peach operations Fiscal 2012-2013 2013 Corporate Plan (Phase I) Transition to to holding company system 2014 and Beyond (Phase II) Competitive Environment Skymark domestic routes Jal relist Full-scale Japanese LCC operations Expansion of of Skymark international routes Economic Environment March 11 11 disaster Middle East Crisis EU EU financial crisis; fears of of global financial slowdown Oil price // forex market risk ANA2012 6
Fiscal 2012-2013 Corporate Plan / Profit Plan Create a base to secure stable profits of billion and beyond; look for further medium-term growth FY11E FY12E FY11E Operating Revenues 1,400 1,500 1,560 Air Transportation Business 1,266 1,364 1,430 Operating Income 90 110 130 Air Transportation Business 84 102 122 Operating Margin 6.4% 7.3% 8.3% Net Income 20 40 55 Earnings Per Share 8.0 15.9 21.9 Air Transportation Business Revenue Composition ( billion) ( billion) 1,400 1,200 1,000 800 600 128 319 137 147 373 416 Profit billion 50 billion Medium-Term Targets Operating Income: 150 billion + Operating Margin: 10.0%+ Freighter 10% Profit Margin 661 695 707 400 (FY11E FY13E) FY11E FY12E FY13E Dom. Passengers Int'l Passengers Cargo & Mail Others ANA2012 AirAsia Japan included 7 0 Domestic Aircraft International Aircraft
Fiscal 2012-2013 Corporate フリート導入計画 投資計画 Plan / Capital Expenditures & Cash Flows Plan Continue capital investment in aircraft while still securing billion in free cash flows over a two-year period 250 200 150 50 0 Capital Expenditures Plan ( billion) Aircraft(Fleet) 200 90 111 FY11E Other 216 116 FY12E Cash Flows Plan 196 97 99 FY13E ( billion) FY11E FY12E FY13E Operating Activities 209 233 240 Investing Activities -158-177 -190 Free Cash Flows 51 56 50 Financial Activities 1-38 -102 Capital Expenditures Mid - Term Forecast 170~210 billion Free Cash Flow Mid - Term Forecast 70~80 billion Fleet Plan FY11 FY12 FY13 B777-200ER 2 3 B787-8 6 14 7 B767-300ER 4 B737-800 2 4 3 MRJ9 1 DHC8-Q400 2 3 1 Introduced aircraft (E) 14 23 15 Retired aircraft (E) -13-21 -18 Capital Investment Plan Full incorporation of B787 Keep at 200 billion or lower Cash Flow Plan Secure stable free cash flow levels Accelerate reduction of interest- bearing debt ANA2012 8
Strategic Pivot Points Win in the market by building a stronger management foundation based b on strategic pivot points that reflect changes in the market Fiscal 2012-2013 2013 Corporate Plan Pivot Points Group Reorganization Transition to a holding company system Cost Restructuring billion in cost savings (reduce unit cost by 1) Profit structure that does not excessively rely on increase of revenues Narrow cost gap with our major competitors Continue structural reforms that continue to give medium/long-term benefits Strengthen Group management More efficient management at each operating company Move to a governance structure that can make the Group swiftly adapted to market changes (subject to June 2012 general shareholder approval) Multi-Brand Strategy ANA Brand and LCC businesses progress together Appeal to markets not covered completely by the ANA brand Clarify each brand in each customer segment Strategic positioning leading to maximized earnings in each brand category ANA2012 9
Strategic Pivot 1: Holding Company System Create a management structure that can make the Group swiftly adapted to changes in the market, allow for Group-wide profit growth Currently All Nippon Airways (ANA) Air Nippon (Merger with ANA in April 2012) ANA WINGS Air Japan AirAsia Japan Separate Management Decisions and Operational Execution Sets strategy for the entire Group, makes optimal allocation of management resources Promote multi-brand strategy Adopt Self - Driven Management Instill respective responsibility for profitability, competition Maximize Group Earnings Holding Company Transition April 1, 2013 Holding Company Shared Service Center ANA Operating Company ANA WINGS Air Japan Other Operating Companies Peach Aviation (Note) Solid line = subsidiary Dashed line = affiliate Rapid Management Response, Management Efficiency Quicker decisions at each operating company Promote more efficient operations AirAsia Japan Other Operating Companies Peach Aviation ANA2012 10
Strategic Pivot 2: Billion in Cost Reductions / 1 in unit cost reduction Decisive cost reductions in all areas leading to stronger corporate structure, better revenue risk management FY11 8bil FY12 Base Level: Fiscal 2011 Revised Plan (published 29 Jul.) Achieve cumulative billion in in cost reductions by fiscal 2014 22bil FY13 48.5 bil Right-size indirect personnel Higher productivity from direct personnel (personnel expense, contracting expense, etc.) FY12-13 Corporate Plan Cumulative 55.0 billion 25bil FY14 16.0 bil 10.5 bil Appropriate new investment, revised costs (depreciation/amortization, etc.) ) New sales approach, appropriate service costs (sales commissions, inflight service, etc.) 45bil 7.0 bil Business/IT restructuring (leasing fees, etc.) 18.0 bil Stronger Group procurement function Review/revise flight operation standards (fuel and fuel tax, etc.) ANA2012 11
Strategic Pivot 3: Multi-Brand Strategy / LCC Business Growth Expand operations mainly through international routes; use LCC businesses b to create new demand in LCC market ASK Plan for ANA and AirAsia Japan Domestic Routes 110 105 Domestic AAJ Dms ANA Dms (ANA 2011 Estimate =) TBD AirAsia Japan JAPAN 95 90 85 103 106 Fleet Plan Four aircraft in FY12 and plan to increase fleet by four or five aircraft a year 80 180 160 140 120 80 FY11E FY12E FY13E International AAJ Int'l ANA Int'l TBD 111 122 After the next expansion of Haneda and Narita FY11E FY12E FY13E 2016 Plan to increase fleet to 25-30 aircraft maximum over the mid term Planned Service Areas (FY12) Domestic: Narita=Chitose/Fukoka/Okinawa(Aug.~) International:Narita=Inchon/Pusan(Oct.~) ANA2012 12
Strategic Pivot 3: Multi-Brand Strategy / ANA Brand and LCC Brand Expand networks and offer products/services based on unique business properties of each brand, contribute to increased Group value <Full Service> <Frequent Business Traveler> <High-End Pleasure Traveler> Stronger ability to compete on costs through unit cost reductions Offer the best products and services in Asia as a full-service carrier/network carrier Domestic and international network + Alliance/JV Operate multiple aircraft types from small to large Low unit cost High unit cost JAPAN Narita Flights Point-to-Point (Domestic + International Medium & Short-Haul) Operate short-haul routes using one type of aircraft, mainly A320 (operate mediumhaul using A330) Kansai Flights Point-to- Point (Domestic + International Short-Haul) <Non-Frill> <Low-End Pleasure Traveler> <New Air Travel Demand> Comprehensive low-cost operations based on new business model Create new air travel demand, including shift from other transportation modes Use all A320 aircraft ANA2012 13
Air Transportation Business / International Passenger Operation Build a stronger business model as a network carrier focused on long-haul international route/connection demand Major Initiatives Expand Europe/U.S. network using B787 long-haul spec aircraft; build out China/Asia routes using mid-/small-sized aircraft. Joint strategy on JV operations to create stronger basis as network carrier between Asian/Americas/European markets. Expand LCC business to create new demand based on new business models, comprehensive lowcost operation structure. 180 160 International Passenger Operations Plan 140 300 350 319 North +31% America Available Seat Km (ASK) Yield 300 120 250 250 Europe +37% Revenue Passenger Km (RPK) 200 200 80 150 150 China +24% 2012-13 Corporate Plan 60 50 Asia +15% 40 50 Resorts 0 FY09 FY10 FY11E FY12E FY13E FY11E FY12E FY13E (not including AirAsia Japan) (not including AirAsia Japan) ANA2012 14 ASK, RPK, Yield [index index] FY09 available seat km, revenue passenger km, yield = 400 350 Revenue ( bil ( bil) ( bil) 400 Revenue by Destinations 370 398 Revenue (vs.fy11e) +25%
Air Transportation Business / Domestic Passenger Operation Improve business profitability through demand/supply balancing, aircraft operation efficiencies/optimization Major Initiatives Optimal route/aircraft plan for better efficiency and profitability. Promote route strategy taking advantage of B787 benefits to secure competitive posture. Expand LCC business to beat out alternative transportation modes, create new air travel demand. Domestic Passenger Operations Plan Competitive Advantages in Domestic Market 120 110 FY09 available seat km, revenue passenger km, yield = Yield 800 700 Passenger Share Among Six Domestic Airlines (April December 2011) 38.8% 50.3% ASK, RPK, Yield [index index] 90 80 70 Available Seat Km (ASK) Revenue Passenger Km (RPK) 2012-13 Corporate Plan 600 500 400 300 Revenue ( bil ( bil) (thousands) 12,000 10,000 8,000 ANA/JAL Domestic Passenger Results (Q1 FY2010 Q3 FY2011) 10.9% 6,000 60 200 4,000 FY09 FY10 FY11E FY12E FY13E 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 (not including AirAsia Japan) ANA2012 15
Air Transportation Business / International Cargo Operations Maximize freighter business profitability through better aircraft t utilization Major Initiatives Maximize use of current fleet and introduce cost reforms to improve freighter operations profitability and secure stable revenues. Complete freighter network in Asia; restructure passenger aircraft belly cargo network. Promote added-value strategy through securing express business profits and high-end cargo. ATK, Revenue Ton, Unit Price [index index] 180 160 140 120 80 60 International Cargo Operations Plan FY09 Available Ton Km, Revenue Ton, Unit Price = Available Ton Km (ATK( ATK) Revenue Ton Unit Price Freighter Belly 2012-13 Corporate Plan FY09 FY10 FY11E FY12E FY13E ANA2012 16 120 80 60 40 20 0 Revenue ( bil ( bil) ( bil) 120 80 60 40 20 0 Revenue by Destinations 88 96 105 North America Europe China Asia Resorts FY11E FY12E FY13E Revenue (vs.fy11e) +19% +16% +14% +15% +30%
Management Financial Targets / Dividend Policies Increase shareholders equity through profits, create more stable financial posture Interest bearing debts ( billion billion) 1,200 1,000 800 600 Ratio of Shareholders Equity Financial Targets Interest-Bearing Debt Interest-Bearing Debt/EBITDA D/E Ratio(times) *includes off-balance lease obligations 7.0 1,109 1,115 1,084 6.0 6.0 4.3 990 5.0 5.2 3.5 4.0 2.1 2.1 1.9 1.6 FY10 FY11E FY12E FY13E 27.0% 26.2% 28.0% 31.1% ROA 3.7% 4.6% 5.6% 6.6% ROE 4.7% 3.8% 7.4% 9.4% 3.0 2.0 1.0 0.0 Medium-Term Targets Interest-Bearing Debt/EBITDA : 3.0x-3.9x D/E Ratio: 1.0x to 1.5x Medium-Term Targets ROA: 8%+ ROE: 10%+ Financial Management and Dividend Policies Structure revenue platform resulting in stable profits and free cash flows Pay dividends at a level ensuring stable, high investment ratings Ensure continued capital investment funds Increase shareholders equity and reduce interest-bearing debt leading to stronger financial foundation Pursue a balanced, practical management approach through the three points above. ANA2012 17
Five-year Earnings and Plan Overview Continued profit growth in the face of global recession and disaster. ster. Accelerate management foundation improvement. FY2009 FY2013 Earnings Forecast Outline Overcame the FY2009 recession and FY2011 disaster to maintain strong growth path Steadily increase profits to strengthen shareholders equity ( bil) 300 250 200 150 50 0 Profitability Indices Op.Margin Net Profit EBITDA Fiscal 2012-2013 Corporate Plan PhaseⅠ Secure revenue capacity to ensure continued growth Restructure/innovate for growth and expansion -50 - ( bil) 700 600 500 400 300 200 FY09 FY10 FY11E FY12E FY13E Financial Health Indices Shareholders' Equity (=Left Axis) Ratio of Shareholders' Equity(=Right Axis) (%) 34.0 32.0 30.0 28.0 26.0 24.0 22.0 Phase II Corporate Plan for Fiscal 2014 and beyond Use the further expansion of Haneda/Narita slots to design strategies for growth and activity The ANA Group Management Vision: Be a Leading Corporate Airline Group in Asia 0 20.0 FY09 FY10 FY11E FY12E FY13E ANA2012 18
II. ANA 2012-13 Corporate Plan Targets ANA2012 19
Consolidated Profit Plan Consolidated Profit Plan FY11(E) FY12(E) Difference FY13(E) Difference Operating Revenues 1,400.0 1,500.0 +.0 1,560.0 + 60.0 Operating Expenses 1,310.0 1,390.0 + 80.0 1,430.0 + 40.0 Operating Income 90.0 110.0 + 20.0 130.0 + 20.0 Op. Margin (%) 6.4 7.3 + 0.9 8.3 + 1.0 Non-Op. Gains/Losses - 34.0-40.0-6.0-37.0 + 3.0 Recurring Income 56.0 70.0 + 14.0 93.0 + 23.0 Extraordinary Gains/Losses -6.0-5.0 + 1.0-5.0 - Net Income 20.0 40.0 + 20.0 55.0 + 15.0 ( Billion) ANA2012 20
Profit Targets by Segment Profit Targets by Segment FY11(E) FY12(E) Difference FY13(E) Difference Air Transportation 1,266.0 1,364.0 + 98.0 1,430.0 + 66.0 Travel Services 152.0 155.0 + 3.0 155.0 - Revenues Total for Reporting Segments Other 1,418.0 140.0 1,519.0 141.0 + 101.0 + 1.0 1,585.0 141.0 + 66.0 - Adjustment - 158.0-160.0-2.0-166.0-6.0 Total (consolidated) 1,400.0 1,500.0 +.0 1,560.0 + 60.0 Air Transportation 84.0 102.0 + 18.0 122.0 + 20.0 Travel Services 2.0 3.0 + 1.0 3.0 - Operating Total for Reporting Segments 86.0 105.0 + 19.0 125.0 + 20.0 Income Other 4.0 5.0 + 1.0 5.0 - Adjustment 0.0 0.0-0.0 - Total (consolidated) 90.0 110.0 + 20.0 130.0 + 20.0 This profit targets include the profit target of AirAsia Japan. ( Billion) ANA2012 21
Air Transportation Business Operating Income Plan (Air Transportation) FY11(E) FY12(E) Difference FY13(E) Difference Domestic Passengers 661.0 695.0 + 34.0 707.5 + 12.5 International Passengers 319.0 373.0 + 54.0 416.0 + 43.0 Operating Revenues Cargo and Mail 128.5 137.5 + 9.0 147.5 + 10.0 Others 157.5 158.5 + 1.0 159.0 +0.5 Total 1,266.0 1,364.0 + 98.0 1,430.0 + 66.0 Fuel and Fuel Tax 262.5 285.5 + 23.0 311.0 + 25.5 Operating Expenses Non Fuel Cost 919.5 976.5 + 57.0 997.0 + 20.5 Total 1,182.0 1,262.0 + 80.0 1,308.0 + 46.0 Op. Income Operating Income 84.0 102.0 + 18.0 122.0 + 20.0 This plan includes the operating income plan of AirAsia Japan. ( Billion) ANA2012 22
Air 航空運送事業 Transportation 営業利益計画 Business Operating Income Plan (Air Transportation) ( billion) AirAsia Japan included FY12 Revenue +98.0 FY12 Expense -80.0 Domestic Passengers International Passengers Cargo & Mail Other Revenues 84.0 +34.0 +54.0 +9.0 +1.0 FY11E(Forecast Forecast) -23.0-40.5 Cargo & Mail The rest of -16.5 +10.0 +40 expenses Other Revenues +0.5 +22.0 Cost reduction initiatives Fuel & Fuel tax Operation - Linked (Landing & Navigation Fees) (Aircraft Leasing) (Depreciation & Amortization ) (Personnel) (Contracts) Increase in Profit +18.0 FY13 Revenue +66.0 FY13 Expense -46.0 Domestic Passengers International Passengers 102.0 FY12E 2E(Plan) +12.5 +43.0-25.5-19.0 122.0 FY13E 3E(Plan) ANA2012 23-1.5 +25.0 Cost reduction initiatives Fuel & Fuel tax Operation - Linked The rest of expenses Increase in Profit +20.0
Billion Cost Reduction Initiatives FY13 Air Air Transportation Op. Expense billion Cost Reduction ( bil) 1,500 15,000 1,400 14,000 1,300 13,000 1,200 12,000 1, 11,000 FY12 Air Air Transportation Op. Expense No Cost Reductions 1.292 Trillion (7% Above FY2011 Original Plan) With Cost Reductions (Cumulative 30 Billion) 1.262 Trillion(4% above) Doms & Int l ASK= (FY11E:29 Jul.) 1,209 Standard Fiscal Year 8(Progress) 1,182 No Cost Reductions 1.363 Trillion (13% Above FY2011 Original Plan) With Cost Reductions (Cumulative 55 Billion) 1.308 Trillion(8% above) 107 30(Progress) 1,262 (+4%) 1,308 (+8%) 11616 55(Progress) Cost Reduction (Completed) 1,000 10,000 FY11E FY11RE FY12E FY13E FY14E ANA2012 24
1 in Unit Cost Reduction Initiatives Operating Revenues and Expenses (FY10 Actual) Operating Revenues Operating Expenses FY10 Domestic Passengers 652.6 International Passengers 280.6 Cargo and Mail 125.0 Others 159.9 Total 1,218.2 Fuel and Fuel Tax 256.2 Landing and Navigation Fees 93.8 Aircraft Leasing Fees 63.9 Depreciation and Amortization 116.2 Aircraft Maintenance 46.2 Personnel 243.3 Sales Commission and Promotion 67.0 Case 1 Monitoring Indices Air Transportation (Passengers) Unit Revenue Operating Revenues (Doms & Int l l Passengers) Doms ASK + Int l l ASK Air Transportation (Passengers) Unit Cost = 10.8 = 10.1 Op. Expenses(Total Total) (Cargo & Mail / Others Revenue) Doms ASK + Int l l ASK Air Transportation (Total) Unit Revenue Operating Revenues (Total) = 14.1 Doms ASK + Int l l ASK Contracts 83.8 Case 2 Others 186.8 Air Transportation (Total) Unit Cost = 13.4 Total 1,157.7 Op. Income Operating Income 60.5 Operating Expenses(Total Total) Doms ASK + Int l l ASK ( billion) ANA2012 25
1 in Unit Cost Reduction Initiatives Monitoring Indices Air Transportation (Passengers) Unit Revenue Air Transportation (Passengers) Unit Cost = = Operating Revenues (Doms & Int l l Passengers) Doms ASK + Int l l ASK Op. Expenses(Total Total) (Cargo & Mail / Others Revenue) Doms ASK + Int l l ASK ( ) 12.0 11.0 10.0 9.0 8.0 7.0 6.0 U/R 10.8 Unit Revenue / Unit Cost Trend Vs. FY11 Plan (29 Jul.) U/C 10.8 10.1 10.1 U/C - 0.2 10.9 9.9 U/C - 0.6 10.6 9.5 No. of of Employees:32,731(as of of Mar.31, 2011) Consolidated Op. Revenues: 1,357.6 billion (FY10) Operating Revenues per Employee : 41.5 million Doms & Int l ASK: 86,564 million(fy10) ASK per Employee : 2.645 million ASK 130 120 110 ASK per Employee 従業員一人あたり内際座席キロ Operating Revenues per Employee 従業員一人あたり連結営業収入 125 (FY10=) 114 118 106 111 104 5.0 FY10 FY11E FY12E FY13E 90 FY10 FY11E FY12E FY13E ANA2012 26
Revenue Plan by Segment Revenue Plan by segment (Unit: billion, %: year on year) Domestic Passengers International Passengers International Cargo Unit Price (-2.3%) Passengers (+7.5%) 661 Passengers (+2.1%) Unit Price (-0.2%) 695 707 ASK yoy FY12E +4.3% FY13E +3.7% Unit Price (+2.9%) Passengers (+13.7%) 319 Passengers (+18.9%) 373 Unit Price (-6.0%) 416 ASK yoy FY12E +12.1% FY13E +15.0% Unit Price (-3.5%) Revenue Ton (+13.3%) 88 Revenue Ton (+10.1%) Unit Price (-0.7%) 96 105 ATK yoy FY12E +8.6% FY13E +10.2% FY11 11E FY12 12E FY13 13E FY11 11E FY12 12E FY13 13E FY11 11E FY12 12E FY13 13E (Forecast) (Plan) (Plan) (Forecast) (Plan) (Plan) (Forecast) (Plan) (Plan) ANA2012 27
Revenue Plan Passenger Operations Revenue Plan by Segment *(*.* pts):difference ** (*.* pts):year-on-year basis Domestic Passengers FY11(E) FY12(E) FY13(E) International Passengers FY11(E) FY12(E) FY13(E) Available Seat km - 0.3 + 4.3 + 3.7 + 15.3 + 12.1 + 15.0 Revenue Passenger km - 3.1 + 7.3 + 0.6 + 11.9 + 13.8 + 17.1 Passengers - 3.1 + 7.5 + 2.1 + 12.7 + 13.7 + 18.9 *Load Factor (%) 61.6 (- 1.8) 63.3 (+ 1.8) 61.4 (- 1.9) 73.1 (- 2.3) 74.2 (+ 1.1) 75.5 (+ 1.4) **Unit Revenue( /ASK) 11.7 (+ 1.6) 11.8 (+ 0.8) 11.6 (- 1.8) 9.3 (- 1.5) 9.7 (+ 4.4) 9.4 (- 2.8) **Yield( /RPK) 19.0 (+ 4.6) 18.6 (- 2.1) 18.8 (+ 1.3) 12.7 (+ 1.6) 13.1 (+ 2.8) 12.5 (- 4.5) **Unit Price( /Passengers) 16,823 (+ 4.6) 16,442 (- 2.3) 16,405 (- 0.2) 54,752 (+ 0.8) 56,358 (+ 2.9) 52,982 (- 6.0) This plan includes the revenue plan of AirAsia Japan. ANA2012 28
Revenue Plan by Segment Revenue Plan Cargo Operations Domestic Cargo International Cargo ** (*.* pts):year-on-year basis FY11(E) FY12(E) FY13(E) FY11(E) FY12(E) FY13(E) Total Freighter Include above Available Ton km - 3.3 + 8.7 + 3.3 + 19.1 + 8.6 + 10.2 Revenue Ton km + 2.9 + 1.5 + 2.4 + 7.3 + 13.6 + 10.6 Revenue Ton + 2.6 + 1.5 + 2.4 + 2.5 + 13.3 +10.1 Load Factor (%) 25.8 24.1 23.9 60.9 63.8 64.0 **Unit Revenue( /ATK) **Unit Price( /RT) 18.6 (+ 6.6) 72 (+ 0.4) 17.7 (- 4.8) 73 (+ 1.9) 17.5 (- 0.8) 73 (+ 0.0) 24.1 (-14.2) 154 (- 0.3) 40.9 (- 2.7) 121 (+ 6.5) 24.3 (+ 0.7) 149 (- 3.5) 24.1 (- 0.7) 148 (- 0.7) Available Ton km - 18.6 + 1.8 - + 7.0 +3.0 + 18.0 Revenue Ton km - 15.0-6.4 - + 0.7 +18.2 + 16.5 Revenue Ton - 10.5-6.3 - -2.2 +14.9 + 13.2 Load Factor (%) 35.8 32.9 32.9 59.4 68.2 67.4 **Unit Revenue( /ATK) **Unit Price( /RT) 47.5 (+ 5.8) 132 (- 3.8) 46.7 (- 1.7) 141 (+ 6.8) 46.7 ( - ) 141 ( - ) 45.1 (+ 10.2) 119 (- 1.2) 43.1 (- 4.5) 119 (- 0.5) ANA2012 29
ANA2012 30
Consolidated Balance Sheet Consolidated Balance Sheet / Financial Targets (Plan) FY11(E) FY12(E) Difference FY13(E) Difference Assets 1,988.0 2,003.0 + 15.0 1,954.0-49.0 Shareholders' Equity 520.0 562.0 +42.0 608.0 +46.0 Ratio of Shareholders Equity (%) 26.2 28.0 +1.9 31.1 +3.1 Interest Bearing Debts 960.0 948.0-12.0 869.0-79.0 ROA(%) Operating Return on Assets (%) ROE(%) Return on Equity (%) Interest Bearing Debts/EBITDA (times) *Including off-balanced lease obligation Debt/Equity Ratio (times) *Including off-balanced lease obligation 4.6 3.8 4.5 5.2 1.8 2.1 5.6 7.4 3.8 4.3 1.7 + 0.9 + 3.5-0.7-0.9-0.2 6.6 9.4 3.1 3.5 1.4 + 1.1 + 2.0-0.7-0.8-0.3 1.9-0.2 1.6-0.3 * Off-balanced Lease obligations Mar 31,2012:155.0, Mar 31,2013:136.0, Mar 31, 2014:121.0 ( Billion) ANA2012 31
Consolidated Cash Flows (Plan) Consolidated Cash Flows FY11(E) FY12(E) Difference FY13(E) Difference Net Income 20.0 40.0 + 20.0 55.0 + 15.0 Depreciation and Amortization 123.0 142.0 + 19.0 151.0 + 9.0 Principal Payment for Aircraft Lease 15.0 14.0-1.0 14.0 - Cash Flow from Operating Activities * 209.0 233.0 + 24.0 240.0 + 7.0 Capital Expenditures - 200.0-216.0-16.0-196.0 + 20.0 Cash Flow from Investing Activities ** - 158.0-177.0-19.0-190.0-13.0 Free Cash Flow 51.0 56.0 + 5.0 50.0-6.0 Cash Flow from Financing Activities * + 1.0-38.0-39.0-102.0-64.0 EBITDA 213.0 252.0 + 39.0 281.0 + 29.0 EBITDA Margin (%) 15.2 16.8 + 1.6 18.0 + 1.2 * Cash flow from operating activities and cash flow from financing activities in this table include off-balanced lease principle refund equivalent. ** Cash flow from investing activities in this table do not include time deposit in excess of three months and certificates of deposit. ( Billion) ANA2012 32
Fuel Price and Exchange Rate Fuel Price and 燃油 為替 Exchange Rate Market Index and Assumptions FY11(E) FY12(E) FY13(E) 1H(A) 2H(E) Dubai Crude Oil (USD/BBL) 109 105 Kerosene (USD/BBL) 128 125 120 120 Exchange Rate (JPY/USD) 80 80 80 80 Market Sensitivity (Non hedged impact) 1USD change per barrel 1JPY change per USD FY12(E) 1.9 2.5 FY13(E) 2.0 2.7 ( Billion) Hedging Ratio (as of DEC, 2011) FY11 FY12 FY13 FY14 FY15 70 60 50 40 30 20 10 0 Fuel Hedge Ratio 60% 40% 15% 5% - Currency Hedge Ratio (USD) 60% 40% 20% 10% 5% Fuel Currency ANA2012 33
Cautionary Statement Forward-Looking Statements. This material contains forward-looking statements based on ANA 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. ANA2012 34
ANA Group Corporate Philosophy ANA Group Corporate Philosophy ANA Group Safety Principles - Our Commitments - On a foundation of security and reliability, the ANA Group will: Create attractive surroundings for customers Continue to be a familiar presence Offer dreams and experiences to people around the world 安全は経営の基盤であり社会への責務である Safety is our promise to the public and is the foundation of our business. 私たちはお互いの理解と信頼の Safety is assured by an integrated management system and 確かなしくみで安全を高めていきます mutual respect. 私たちは一人ひとりの責任ある Safety is enhanced through individual performance and dedication 誠実な行動により安全を追求します ANA Group Corporate Vision Being the leader in Asia means that we will become With air transportation as its core field of business, With air transportation as its core field of business, the ANA Group aims to be one of the leading the ANA Group aims to be one of the leading corporate groups in Asia, providing passenger and corporate groups in Asia, providing passenger and cargo transportation around the world. cargo transportation around the world. Number one in quality Number one in quality Number one in customer satisfaction Number one in customer satisfaction Number one in value creation Number one in value creation ANA2012 35
Thank you. This material is available on our website. http://www.ana.co.jp Investor Relations Financial Information Presentations Investor Relations, All Nippon Airways Co., Ltd. Phone +81-(0)3-6735-1030 E-Mail: ir@ana.co.jp ANA2012 36