Ana Holdings Inc. · TSE:9202

Ana — All Nippon Airways — Q2 FY2011 Earnings Presentation

38 slides from Ana's earnings presentation, Oct 28, 2011

  1. Slide 1: All Nippon Airways Financial Results FY2011 Second Quarter

    All Nippon Airways Financial Results FY2011 Second Quarter Shinichiro Ito President and CEO Tomohiro Hidema Executive Vice President and CFO October 28, 2011 ©ANA2011 1

  2. Slide 2: Contents

    Contents Ⅰ.Management Issues Ⅲ. FY2011 Earnings Forecast 1. Financial Results FY2011 Second Quarter Consolidated Earnings Forecast P.24 (Summary) P.4 Earnings Forecast by Segment P.25 Air Transportation Business 2. Outline of New Corporate Plan P.5 Operating Revenues and Expenses P.26 Earnings Forec

  3. Slide 3: Management Issues

    Ⅰ．Management Issues 1.Financial Results FY2011 Second Quarter (Summary) 2.Outline of New Corporate Plan 3.Low Cost Carrier Strategy Progress ©ANA2011 3

  4. Slide 4: Financial Results FY2011 Second Quarter (Summary)

    Financial Results FY2011 Second Quarter (Summary) Improved Revenues and Profit (Net Income Basis) Despite the Impact of the Earthquake. 《Financial Results FY11 Second Quarter》 ■Historical high in Q2 (Jul-Sep) Operating Income (¥ Billion) Diff. vs. 1H/FY11 Change 70.0 1H/FY10 Consolidated Operating

  5. Slide 5: Outline of New Corporate Plan

    Outline of New Corporate Plan ANA Group New Corporate Plan, Based on Major Increase in Narita/Haneda Slots. ■Outline Phase1 FY 2012-2013 FY 2012 Phase2 FY 2013-2015 Narita Creating a Stronger Management 250,000→270,000 Achieve Growth Foundation after Establishing Stronger ・Cost Restructuring Manage

  6. Slide 6: Low Cost Carrier Strategy Progress

    LCC展開に向けた進捗 Low Cost Carrier Strategy Progress Peach and AirAsia Japan Quickly and Surely Moving Toward Service Launches ■Peach Starting Operations : March 1, 2012: Osaka (Kansai) - Sapporo （Chitose）： 3 flights/day Launch Osaka (Kansai) - Fukuoka： and 4 flights/day Route Starting Operations : May,

  7. Slide 7: FY2011 Financial Results Second Quarter (Details)

    Ⅱ. FY2011 Financial Results Second Quarter (Details) ©ANA2011 7

  8. Slide 8: Highlights FY11 Second Quarter

    Highlights FY11 Second Quarter Highlights of Financial Results FY11 1Q-2Q and FY10 1Q-4Q  Consolidated cumulative operating income for 2Q posted 50.1 billion yen (6.6 billion yen year-on-year decline). 22.8 billion yen net profit for the quarter (9.5 billion yen year-on-year improvement); EBITDA o

  9. Slide 9: Consolidated Financial Summary: Income Statements

    Consolidated Financial Summary Income Statements 1H/FY10 1H/FY11 Difference 2Q/FY11 Difference Operating Revenues 684.1 704.8 + 20.6 399.7 + 22.4 Operating Expenses 627.3 654.7 + 27.3 341.5 + 18.0 Operating Income 56.8 50.1 - 6.6 58.2 +4.4 Op. Margin (%) 8.3 7.1 - 1.2pts 14.6 +0.3pts Non-Op. Gains/L

  10. Slide 10: Consolidated Financial Position

    Consolidated Financial Summary Consolidated Financial Position Mar 31, 2011 Sep 30, 2011 Difference Assets 1,928.0 2,077.6 +149.6 Shareholders' Equity 520.2 509.8 - 10.4 Ratio of Shareholders' Equity (%) 27.0 24.5 - 2.4pts Interest Bearing Debts 938.8 1,074.3 +135.5 Debt/Equity Ratio (times) 1.8 2.1

  11. Slide 11: Consolidated Statements of Cash Flow

    Consolidated Financial Summary Consolidated Statements of Cash Flow 1H/FY10 1H/FY11 Difference Cash Flow from Operating Activities 121.3 90.4 - 30.8 Cash Flow from Investing Activities - 178.4 - 171.5 +6.8 Cash Flow from Financing Activities 102.6 126.7 + 24.1 Net Increase or Decrease 45.3 45.4 + 0.

  12. Slide 12: Results by Segment

    Consolidated Financial Summary Results by Segment 1H/FY10 1H/FY11 Difference 2Q/FY11 Difference Air Transportation 611.7 631.0 + 19.2 356.7 + 19.5 Travel Services 85.0 78.4 - 6.5 52.0 - 0.3 Total for Reporting Segments 696.8 709.5 + 12.7 408.7 + 19.1 Revenues Other 68.3 67.7 - 0.5 34.3 + 0.1 Adjustm

  13. Slide 13: Air Transportation Business: Operating Revenues and Expenses

    Air Transportation Business Operating Revenues and Expenses 1H/FY10 1H/FY11 Difference 2Q/FY11 Difference Domestic Passengers 332.5 327.8 - 4.7 193.2 + 4.2 International Passengers 141.8 159.6 + 17.7 90.3 + 12.6 Operating Cargo and Mail 59.7 64.9 + 5.2 31.7 + 1.1 Revenues Others 77.6 78.6 + 0.9 41.4

  14. Slide 14: Changes in Operating Income

    Air Transportation Business (¥ Billion) Changes in Operating Income Other Expense ･Commission, Advertisement ・In- In-flight service, Ground Service, etc. +0.9 Sales- Sales-Linked Other +5.5 +5.2 Revenue - 1.8 Cargo ･Depreciation except Aircraft & Mail ･Maintenance, etc. etc. +14.1 Domestic ･Maintena

  15. Slide 15: Domestic Passenger Operations

    Air Transportation Business Domestic Passenger Operations 1H/FY10 1H/FY11 % Y/Y 2Q/FY11 % Y/Y Available Seat Km (million) 28,398 28,408 + 0.0 15,076 + 2.0 Revenue Passenger Km (million) 18,632 17,053 - 8.5 9,904 - 3.2 Passengers (thousands) 20,957 19,217 - 8.3 11,052 - 3.0 Load Factor (%) 65.6 60.0

  16. Slide 16: Trends in Domestic Passenger Operations

    Air Transportation Business Trends in Domestic Passenger Operations 1H Cumulative Revenue Change Factors Monthly Trends in Domestic Passengers Despite the ongoing impact of the Earthquake, Passenger numbers continue to recover, Unit Price increases limited the scope of revenue declines nearing pri

  17. Slide 17: International Passenger Operations

    Air Transportation Business International Passenger Operations 1H/FY10 1H/FY11 % Y/Y 2Q/FY11 % Y/Y Available Seat Km (million) 13,925 16,919 + 21.5 8,592 + 18.2 Revenue Passenger Km (million) 11,025 12,204 + 10.7 6,734 + 14.1 Passengers (thousands) 2,601 2,840 + 9.2 1,566 + 13.8 Load Factor (%) 79.2

  18. Slide 18: Trends in International Passenger Operations

    Air Transportation Business Trends in International Passenger Operations 1H Europe/North America Business Class 1H Cumulative Revenue Change Factors Competitiveness Comparison Increased revenue due to demand stimulation measures Routes with new products maintained strong and Increased ASK competit

  19. Slide 19: Domestic Cargo Operations

    Air Transportation Business Domestic Cargo Operations 1H/FY10 1H/FY11 % Y/Y ２Q/FY11 % Y/Y Available Ton Km (million) 934 903 - 3.3 477 - 1.4 Revenue Ton Km (million) 218 228 + 4.4 119 + 4.4 Revenue Ton (thousand tons) 219 229 + 4.4 120 + 4.1 Domestic Cargo Load Factor (%) 23.4 25.3 + 1.9pts* 25.1 +

  20. Slide 20: Intentionally Blank

    Intentionally Blank ©ANA2011 20

  21. Slide 21: International Cargo Operations

    Air Transportation Business International Cargo Operations 1H/FY10 1H/FY11 % Y/Y ２Q/FY11 % Y/Y Available Ton Km (million) 1,470 1,791 + 21.8 903 + 17.0 Revenue Ton Km (million) 998 1,081 + 8.3 518 + 0.9 Revenue Ton (thousand tons) 272 277 + 1.9 136 - 2.1 International Cargo Load Factor (%) 67.9 60.4

  22. Slide 22: Trends in International Cargo Operations

    Air Transportation Business Trends in International Cargo Operations 1H Cumulative Revenue Change Factors Monthly Trends in International Cargo Achieve increased revenues with FSC and Secured similar RTK levels to the prior year, increased revenue ton despite sluggish cargo demand (YoY) 《Main Weig

  23. Slide 23: FY2011 Earnings Forecast

    Ⅲ. FY2011 Earnings Forecast ©ANA2011 23

  24. Slide 24: Consolidated Earnings Forecast

    FY2011 Earnings Forecast Consolidated Earnings Forecast 《Ref.》 As of 29JUL,2011 Original FY10 FY11（RE） Difference FY11（E） Operating Revenues 1,357.6 1,400.0 + 42.3 1,410.0 Operating Expenses 1,289.8 1,330.0 + 40.1 1,340.0 Operating Income 67.8 70.0 + 2.1 70.0 Op. Margin (%) 5.0 5.0 + 0.0pts 5.0 Recu

  25. Slide 25: Earnings Forecast by Segment

    FY2011 Earnings Forecast Earnings Forecast by Segment 《Ref.》 As of 29JUL,2011 Original FY10 FY11（RE） Difference FY11（E） Air Transportation 1,218.2 1,266.0 + 47.7 1,276.0 Travel Services 159.3 145.0 - 14.3 145.0 Total for Reporting Segments 1,377.6 1,411.0 + 33.3 1,421.0 Revenues Other 138.9 140.0 +

  26. Slide 26: Operating Revenues and Expenses Forecast

    FY2011 Earnings Forecast Operating Revenues and Expenses 《Ref.》 As of 29JUL,2011 Original FY10 FY11 (RE) Difference FY11（E） Domestic Passengers 652.6 661.5 + 8.8 659.0 International Passengers 280.6 317.5 + 36.8 327.0 Operating Cargo and Mail 125.0 131.0 + 5.9 135.0 Revenues Others 159.9 156.0 - 3.9

  27. Slide 27: Earnings Forecast Assumptions: Passenger Operations

    FY2011 Earnings Forecast 《Passenger Operations》 Earnings Forecast Assumptions for FY11（vs. FY10） Domestic Passengers International Passengers 1H(A) 2H(RE) FY11(RE) 1H(A) 2H(RE) FY11(RE) Available Seat Km + 0.0 - 0.9 - 0.4 + 21.5 + 9.8 + 15.3 Revenue Passenger Km - 8.5 + 2.1 - 3.4 + 10.7 + 11.1 + 10.

  28. Slide 28: Earnings Forecast Assumptions: Cargo Operations

    FY2011 Earnings Forecast 《Cargo Operations》 Earnings Forecast Assumptions for FY11（vs. FY10） Domestic Cargo International Cargo １H(A) 2H(RE) FY11(RE) １H(A) 2H(RE) FY11(RE) Available Ton km - 3.3 - 3.1 - 3.2 + 21.8 + 17.0 + 19.3 Revenue Ton km + 4.4 - 0.2 + 2.1 + 8.3 + 7.4 + 7.9 Revenue Ton + 4.4 - 1

  29. Slide 29: Supplemental Reference

    Ⅳ. Supplemental Reference ©ANA2011 29

  30. Slide 30: Intentionally Blank

    Intentionally Blank ©ANA2011 30

  31. Slide 31: Fuel Price and Exchange Rate

    Supplemental 燃油・為替 Reference Fuel Price and Exchange Rate Market Index and Assumptions 1H(A) 2H(E) Dubai Crude Oil (USD/BBL) 109 105 Kerosene (USD/BBL) 128 125 Exchange Rate (JPY/USD) 80 80 Hedging Ratio (as of Sep, 2011) FY11 FY12 FY13 FY14 FY15 70% Fuel Currency 60% 50% 40% 30% 20% 10% 0% Fuel Hed

  32. Slide 32: Major Exchange Rate Effects on Op. Income

    Supplemental 燃油・為替 Reference Major Exchange Rate Effects on Op. Income (operating income (loss) /including hedge effects; units: billion yen) Revenue Expense (increase + notation (decrease +; notation Second Quarter Results (Earning Forecast as of 29Jul, 2011 vs. Weighed Avg. during Period) decrease

  33. Slide 33: International Passenger Results by Destination

    Supplemental Reference International Passenger Results by Destination 1H/FY11 2Q/FY11 Difference Difference Composition Composition North America 26.3 - 1.5 25.9 - 0.5 Europe 20.3 - 1.8 20.9 - 3.5 Passenger China 25.6 - 3.1 24.6 - 3.6 Revenue Asia 22.7 + 4.7 22.8 + 5.5 Resort 5.1 + 1.7 5.9 + 2.2 Nor

  34. Slide 34: International Cargo Results by Destination

    Supplemental Reference International Cargo Results by Destination 1H/FY11 2Q/FY11 Difference Difference Composition Composition North America 21.9 - 1.3 19.9 - 2.1 Europe 16.7 + 0.7 15.8 - 2.1 Cargo China 35.9 - 1.6 37.8 - 0.1 Revenue Asia 19.9 + 2.6 19.3 + 2.3 Resort 5.7 - 0.4 7.2 + 2.1 North Ameri

  35. Slide 35: Aircraft in Service

    Supplemental Reference Aircraft in Service Mar,2011 SEP,2011 Change Owned Leased Boeing 747-400 (International) 1 0 -1 0 0 Boeing 747-400 (Domestic) 10 9 -1 9 0 Boeing 777-300ER 19 19 － 16 3 Wide-Body Boeing 777-300 7 7 － 7 0 Boeing 777-200ER 7 7 － 4 3 Boeing 777-200 16 16 － 14 2 Boeing 787-8 0 1 +1

  36. Slide 36: Cautionary Statement

    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 informatio

  37. Slide 37: ANA Group Corporate Philosophy

    ANA Group Corporate Philosophy ANA Group Corporate Philosophy ANA Group Safety Principles － Our Commitments － 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 On a foundation of security and reliability, our business. 私たちはお互いの理解と信頼の the ANA Group will: Safety is a

  38. Slide 38: Thank you.

    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 ©ANA2011 38

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